<PAGE>
[WELLS FARGO LOGO]
FUNDS
Annual Report
STOCK FUNDS
September 30, 2000
DISCIPLINED GROWTH FUND
DIVERSIFIED EQUITY FUND
DIVERSIFIED SMALL CAP FUND
EQUITY INCOME FUND
EQUITY INDEX FUND
EQUITY VALUE FUND
GROWTH FUND
GROWTH EQUITY FUND
INDEX FUND
INTERNATIONAL FUND
INTERNATIONAL EQUITY FUND
LARGE COMPANY GROWTH FUND
SMALL CAP GROWTH FUND
SMALL CAP OPPORTUNITIES FUND
SMALL CAP VALUE FUND
SMALL COMPANY GROWTH FUND
SPECIALIZED TECHNOLOGY FUND
<PAGE>
STOCK FUNDS
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TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS
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DISCIPLINED GROWTH FUND......................................................2
DIVERSIFIED EQUITY FUND......................................................4
DIVERSIFIED SMALL CAP FUND...................................................6
EQUITY INCOME FUND...........................................................8
EQUITY INDEX FUND...........................................................10
EQUITY VALUE FUND...........................................................12
GROWTH FUND.................................................................14
GROWTH EQUITY FUND..........................................................16
INDEX FUND..................................................................18
INTERNATIONAL FUND..........................................................20
INTERNATIONAL EQUITY FUND...................................................22
LARGE COMPANY GROWTH FUND...................................................24
SMALL CAP GROWTH FUND.......................................................26
SMALL CAP OPPORTUNITIES FUND................................................28
SMALL CAP VALUE FUND........................................................30
SMALL COMPANY GROWTH FUND...................................................32
SPECIALIZED TECHNOLOGY FUND.................................................34
PORTFOLIO OF INVESTMENTS
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DISCIPLINED GROWTH FUND.....................................................36
DIVERSIFIED EQUITY FUND.....................................................37
DIVERSIFIED SMALL CAP FUND..................................................38
EQUITY INCOME FUND..........................................................39
EQUITY INDEX FUND...........................................................40
EQUITY VALUE FUND...........................................................54
GROWTH FUND.................................................................57
GROWTH EQUITY FUND..........................................................61
INDEX FUND..................................................................62
INTERNATIONAL FUND..........................................................63
INTERNATIONAL EQUITY FUND...................................................64
LARGE COMPANY GROWTH FUND...................................................67
SMALL CAP GROWTH FUND.......................................................68
SMALL CAP OPPORTUNITIES FUND................................................73
SMALL CAP VALUE FUND........................................................78
SMALL COMPANY GROWTH FUND...................................................79
SPECIALIZED TECHNOLOGY FUND.................................................80
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................82
STATEMENTS OF OPERATIONS....................................................86
STATEMENTS OF CHANGES IN NET ASSETS.........................................90
FINANCIAL HIGHLIGHTS.......................................................102
NOTES TO FINANCIAL HIGHLIGHTS................................................112
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NOTES TO FINANCIAL STATEMENTS................................................113
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TAX INFORMATION..............................................................124
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INDEPENDENT AUDITORS' REPORT.................................................125
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CORE PORTFOLIOS
PORTFOLIO OF INVESTMENTS
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DISCIPLINED GROWTH PORTFOLIO...............................................126
INCOME EQUITY PORTFOLIO....................................................129
INDEX PORTFOLIO............................................................133
INTERNATIONAL PORTFOLIO....................................................147
INTERNATIONAL EQUITY PORTFOLIO.............................................150
LARGE COMPANY GROWTH PORTFOLIO.............................................153
SMALL CAP INDEX PORTFOLIO..................................................155
SMALL CAP VALUE PORTFOLIO..................................................172
SMALL COMPANY GROWTH PORTFOLIO.............................................175
SMALL COMPANY VALUE PORTFOLIO..............................................180
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES.......................................186
STATEMENTS OF OPERATIONS...................................................188
STATEMENTS OF CHANGES IN NET ASSETS........................................190
FINANCIAL HIGHLIGHTS.......................................................197
NOTES TO FINANCIAL STATEMENTS................................................198
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INDEPENDENT AUDITORS' REPORT.................................................203
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LIST OF ABBREVIATIONS........................................................204
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
STOCK FUNDS
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DEAR VALUED SHAREHOLDER,
Volatility once again dominated financial markets during the fiscal year
ended September 30, 2000. The Dow Jones Industrial Average (the Dow) soared to
a record high in January only to surrender most of its gains by fiscal
year-end. Along the way, the utility sector plus small cap and mid cap stocks
emerged as market leaders, underscoring the importance of diversification amid
changing markets.
The fiscal year began on an optimistic note, with the average international
stock fund climbing 25% during the fourth quarter of 1999, and an average of
18% returns posted by U.S. diversified stock funds. Technology funds far
outpaced the broader market, soaring 61% during the period. The market rally
capped an unprecedented fifth straight year of double-digit gains, with
consumer confidence at an all-time high and unemployment at its lowest level
in 30 years. For a while, it appeared as though nothing could impede the
upward momentum of the stock market.
ENGINEERING A SOFT LANDING
--------------------------------------------------------------------------------
In a comment that would set the stage for the market's performance during the
first half of 2000, Federal Reserve Board (the Fed) Chairman Alan Greenspan
said that he would continue to raise short-term interest rates until the
economy and the stock market slowed.
The threat of rising interest rates and their impact on corporate profits
sent shockwaves through the market, with the Dow losing nearly 13% by mid
March. In April's second week, the Nasdaq Composite Index took its
heaviest-ever decline, dropping 25% in five days and sending investors back to
the relative stability of the Dow's old economy -- blue chip stocks. The stock
market bubble had burst, with investor sentiment changing from bullish to
cautious.
The six interest rate hikes engineered by the Fed between June 1999 and May
2000 have worked their way through the economy -- and achieved their desired
affect. The U.S. economy has settled into a respectable, and sustainable,
3%-4% growth rate following a torrid 7% growth rate in 1999. The long-awaited
soft landing convinced many market watchers that the Fed would stop raising
interest rates.
As the fiscal year drew to a close, escalating oil prices replaced concerns
over the direction of interest rates. Indeed, higher energy prices combined
with slower growth and a weak euro made a big dent in corporate earnings,
clouding the investment outlook. At the same time, businesses lacked the
pricing power to offset declining profits. Suddenly, single-digit returns
became more attractive and more sustainable.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
--------------------------------------------------------------------------------
Finally, the year held several surprises for investors. The health care and
financial sectors returned to favor after a dismal 1999, while small cap and
mid cap growth stocks continued to lead the market. Rather than hunting for
the next new technology stock, investors were focused more on the fundamentals
that would sustain an investment during difficult times.
Regardless of how stocks perform in the future, Wells Fargo Funds continues
to stress the importance of appropriate diversification to help achieve
balanced returns. Wells Fargo Funds can help you weather market volatility and
reach your long-term investment goals through a spectrum of stock mutual funds
to help you reach your financial goals. To learn more about the Wells Fargo
Funds, or to review your investment portfolio, please meet with your
investment professional.
Wells Fargo Funds values your business and strives to develop each fund to
continue to meet your investment needs. In closing, thank you for investing in
Wells Fargo Funds.
Sincerely,
/s/ MICHAEL J. HOGAN
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
1
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
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DISCIPLINED GROWTH FUND
INVESTMENT OBJECTIVE
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The Disciplined Growth Fund (the Fund) seeks capital appreciation by investing
primarily in common stocks of larger companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Smith Asset Management Group
FUND MANAGER
Steve Smith, CFA
INCEPTION DATE
10/15/97
PERFORMANCE HIGHLIGHTS
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The Fund's Institutional Class shares returned 19.65%(1) for the one-year
period ended September 30, 2000. The Fund outperformed its benchmark, the
S&P 500 Index(2), which returned 13.28%. The Fund's Institutional
Class shares distributed no dividend income and $0.25 per share in capital
gains during the period. Please keep in mind that past performance is no
guarantee of future results.
During the past year, investors vacillated between high growth technology
stocks and value stocks with positive cash flow and earnings. The Fund's low
exposure to the rapidly rising Internet issues hindered its performance in the
fourth quarter of 1999. In the second and third quarters of 2000, however,
investors sold off many of the most high-flying technology and
Internet-related issues that had benefited from the momentum-based markets of
the past two years. As the stock market fell into a sharp correction, the Fund
was supported by its diversification and by its commitment to investing in
high-quality companies with positive current cash flows and earnings.
The Fund's outperformance over the period can be attributed primarily to
strong stock selection within the utilities and health care sectors. Two of
the Fund's most successful individual positions for the year were Calpine,
which appreciated by 236%, and EMC Corporation, which rose by 178%. Calpine,
an independent power producer, benefited from significant positive earnings
and a better than 120% earnings growth rate for the period. The primary driver
for Calpine's earnings growth was higher electricity prices in California and
Texas, and the completion of several accretive acquisitions. EMC Corporation,
the leading developer of enterprise storage systems, rose on the strength of a
surge in demand for Internet-related storage products. Teradyne, the world's
largest manufacturer of semiconductor testing equipment, was one of the Fund's
least successful positions. Its shares fell on speculation that its third
quarter 2000 orders would not meet expectations.
STRATEGIC OUTLOOK
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During the last half of 1999 and continuing into 2000, the U.S. Federal
Reserve Board adopted an aggressive stance to slow the U.S. economy. The Fund
believes that the Fed has accomplished its goal. It thinks that the current
economic outlook is still fairly positive, though the market may remain
relatively more volatile.
The Fund will continue to focus on attractively valued companies that its
manager believes will report a succession of positive earnings. The Fund
manager feels that this strategy should keep it well positioned for a
potentially volatile market environment where companies that can consistently
deliver above-average growth are regarded as the most attractive investment
opportunities.
2
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Months* 1-Year Since Inception Since 10/01/97
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS 3.08 19.65 11.13
BENCHMARK
S&P 500 INDEX (3.60) 13.28 16.44(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 25.2X
PRICE TO BOOK RATIO 5X
MEDIAN MARKET CAP ($B) 11.4
NUMBER OF HOLDINGS 40
PORTFOLIO TURNOVER 106%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
SUNGARD DATA SYSTEMS INCORPORATED 3.73%
TENET HEALTHCARE CORPORATION 3.71%
CALPINE CORPORATION 3.41%
MGM MIRAGE INCORPORATED 3.22%
UNITEDHEALTH GROUP INCORPORATED 3.16%
BOEING COMPANY 3.16%
EMC CORPORATION 3.13%
ANDRX GROUP 3.07%
IVAX CORPORATION 2.96%
ANHEUSER-BUSCH COMPANIES 2.95%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 32%
Health Care 15%
Consumer Services 14%
Financial 11%
Consumer Non-Cyclical 8%
Energy 5%
Commercial Services 4%
Utilities 3%
Transportation 3%
Telecommunications 2%
Industrials 1%
Basic Materials 1%
Cash 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO DISCIPLINED
GROWTH FUND-INSTITUTIONAL CLASS S&P 500 INDEX
<S> <C> <C>
10/15/97 $10,000 $10,000
10/31/97 $9,300 $9,666
11/30/97 $9,520 $10,114
12/31/97 $9,539 $10,287
1/31/98 $9,359 $10,401
2/28/98 $10,120 $11,151
3/31/98 $10,580 $11,721
4/30/98 $10,750 $11,841
5/31/98 $10,450 $11,637
6/30/98 $10,750 $12,110
7/31/98 $10,510 $11,981
8/31/98 $8,888 $10,250
9/30/98 $9,349 $10,907
10/31/98 $9,859 $11,794
11/30/98 $10,210 $12,509
12/31/98 $11,141 $13,229
1/31/99 $11,341 $13,786
2/28/99 $10,971 $13,356
3/31/99 $11,031 $13,890
4/30/99 $11,511 $14,428
5/31/99 $11,421 $14,087
6/30/99 $11,801 $14,854
7/31/99 $11,811 $14,390
8/31/99 $11,591 $14,319
9/30/99 $11,421 $13,926
10/31/99 $11,721 $14,808
11/30/99 $11,801 $15,108
12/31/99 $12,317 $15,998
1/31/00 $11,468 $15,195
2/29/00 $11,785 $14,908
3/31/00 $13,257 $16,366
4/30/00 $13,216 $15,873
5/31/00 $12,899 $15,548
6/30/00 $13,390 $15,932
7/31/00 $13,114 $15,683
8/31/00 $14,361 $16,657
9/30/00 $13,666 $15,778
</TABLE>
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(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Institutional Class shares of the Wells Fargo
Disciplined Growth Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage Performa
Disciplined Growth Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Stagecoach and Norwest Advantage Funds were
reorganized into the Wells Fargo Funds. Institutional Class shares are sold
without sales charges.
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The published return closest to the Fund's inception date of 10/15/97.
(4) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Disciplined Growth
Fund Institutional Class shares since inception with the S&P 500 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
3
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Diversified Equity Fund (the Fund) seeks long-term capital appreciation
with moderate annual return volatility by diversifying its investments among
different equity investment styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management Incorporated
Peregrine Capital Management
Smith Asset Management Group
Schroder Investment Management North America
FUND MANAGERS
Collectively Managed
INCEPTION DATE
12/31/88
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 15.99%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund outperformed its
benchmark, the S&P 500 Index(2), which returned 13.28%. The Fund's Class A
shares distributed $0.16 per share in dividend income and $2.67 per share in
capital gains during the period. Please keep in mind that past performance is
no guarantee of future results. The Fund's one-year performance was
attributable to unusually favorable conditions that may not be sustainable and
are not likely to exist in the future.
The year ended September 30, 2000, was punctuated by two main phases. Over
the fourth quarter of 1999 and into the first quarter of 2000, growth stocks
led the market. Interest in the technology, media and telecommunications (TMT)
sectors was particularly intense, reflecting investors' excitement about the
Internet's potential. TMT stocks also sparked rallies in markets around the
world. Of the Fund's five component styles, the Index style, Large Company
Growth style and International style benefited the most from the growth-stock
rally over the late fall and winter.
In mid-March, however, growth-oriented stocks came under pressure that
persisted through much of the spring and summer. Investors' concerns about
potentially slower economic growth and lower corporate profits created a
difficult environment for the Fund's Large Company Growth and Index styles.
They did, however, benefit from the resilience of their utilities and
financial holdings. Stocks in those sectors also helped to buoy the Fund's
International style in the face of a general decline in global markets over
the spring and summer. The managers' decision to emphasize Europe over Asia
and the emerging markets was another plus, as was the Fund's exposure to the
thriving health care sector.
In the midst of this growth-stock downturn, the Fund was supported by its
Equity Income and Diversified Small Cap styles, which benefited from the
resurgence of value-oriented stocks. Their performance demonstrates the
advantages of the Fund's diversified approach.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the U.S. economy is indeed slowing, a trend
that historically has led investors to favor defensive old-line and interest
rate sensitive areas of the stock market. As economic growth slows and
inflation fears dissipate, the Fund's managers expect the overall S&P 500
Index to move to new all-time highs during the next few months.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Class A, Class B, Class C and Institutional
Class shares of the Wells Fargo Diversified Equity Fund for periods prior to
November 8, 1999, reflects performance of the Class A, Class B, Class C and
Institutional Class shares of the Norwest Advantage Diversified Equity Fund, its
predecessor fund. Effective at the close of business November 5, 1999, the
Stagecoach and Norwest Advantage Funds were reorganized into the Wells Fargo
Funds. Performance shown for the Class A shares of the Fund prior to May 2,
1996, reflects the performance of the Institutional Class shares of the Fund,
adjusted for Class A sales charges and expenses. Performance shown for the
Class B shares of the Fund prior to May 6, 1996, reflects the performance of the
Institutional Class shares of the Fund, adjusted for Class B sales charges and
expenses. Performance shown for the Class C shares of the Fund prior to October
1, 1998, reflects the performance of the Institutional Class shares of the Fund,
adjusted for Class C sales charges and expenses. Performance of the
Institutional Class shares of the Fund prior to November 11, 1994, reflects the
performance of a collective investment fund, adjusted to reflect Institutional
Class expenses. Wells Fargo Bank Minnesota, N.A. (WFB MN), formerly Norwest Bank
Minnesota, N.A., managed the collective investment fund with an investment
objective and principal investment strategy that were substantially similar to
those of the Fund. The performance for the Fund includes performance of its
predecessor collective investment fund for periods before it became a mutual
fund on November 11, 1994. The collective investment fund's performance was
adjusted to reflect the Fund's 1994 estimate of its expense ratio for the first
year of operations as a mutual fund, including any applicable sales load
(without giving effect to any fee waivers or expense reimbursements). The
collective investment fund was not registered under the Investment Company Act
of 1940 ("1940 Act") nor subject to certain investment limitations,
diversification requirements and other restrictions imposed by the 1940 Act or
the Internal Revenue Code, which, if applicable, may have adversely affected
that fund's performance results. For Class A shares, the maximum front-end sales
charge is 5.75%. The maximum contingent-deferred sales charge for Class B shares
is 5.00%. The maximum contingent-deferred sales charge for Class C shares is
1.00%. Class B and Class C share performance including sales charge assumes the
maximum contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
4
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (2.48) 15.99 18.26 18.04 (8.09) 9.32 16.87 17.34
CLASS B (2.86) 15.10 17.37 17.16 (7.71) 10.10 17.16 17.16
CLASS C (2.86) 15.11 17.44 17.20 (3.83) 14.11 17.44 17.20
INSTITUTIONAL CLASS (2.48) 15.99 18.26 18.04
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.92
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 29.9x
PRICE TO BOOK RATIO 5.6
MEDIAN MARKET CAP ($B) 25.2
NUMBER OF HOLDINGS 1416
PORTFOLIO TURNOVER 36%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE
BENCHMARK BETA IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PFIZER INCORPORATED 2.30%
GENERAL ELECTRIC COMPANY 2.07%
CISCO SYSTEMS INCORPORATED 2.05%
INTEL CORPORATION 1.68%
EMC CORPORATION 1.53%
AMERICAN INTERNATIONAL GROUP 1.53%
MICROSOFT CORPORATION 1.50%
IBM CORPORATION 1.41%
EXXON MOBIL CORPORATION 1.39%
MERCK & COMPANY INCORPORATED 1.28%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 22%
Financial 16%
Int'l 15%
Health Care 10%
Consumer Cyclical 6%
Commercial Services 6%
Consumer Non-Cyclical 5%
Consumer Services 4%
Energy 4%
Basic Materials 3%
Industrials 3%
Telecommunications 2%
Utilities 2%
Transportation 1%
Cash 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO DIVERSIFIED WELLS FARGO DIVERSIFIED
EQUITY FUND-CLASS A S&P 500 INDEX EQUITY FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/30/90 $9,425 $10,000 $10,000
10/31/90 $9,478 $9,957 $10,057
11/30/90 $9,980 $10,601 $10,589
12/31/90 $10,276 $10,896 $10,904
1/31/91 $10,922 $11,371 $11,589
2/28/91 $11,758 $12,184 $12,476
3/31/91 $12,042 $12,479 $12,777
4/30/91 $12,018 $12,509 $12,752
5/31/91 $12,592 $13,048 $13,361
6/30/91 $11,937 $12,451 $12,665
7/31/91 $12,587 $13,031 $13,355
8/31/91 $12,929 $13,340 $13,718
9/30/91 $12,860 $13,117 $13,645
10/31/91 $13,159 $13,293 $13,962
11/30/91 $12,728 $12,757 $13,505
12/31/91 $14,138 $14,216 $15,001
1/31/92 $14,018 $13,952 $14,874
2/29/92 $14,040 $14,132 $14,897
3/31/92 $13,684 $13,857 $14,520
4/30/92 $13,836 $14,264 $14,680
5/31/92 $14,022 $14,334 $14,877
6/30/92 $13,633 $14,121 $14,465
7/31/92 $14,104 $14,698 $14,964
8/31/92 $13,841 $14,397 $14,686
9/30/92 $13,965 $14,566 $14,817
10/31/92 $14,058 $14,616 $14,917
11/30/92 $14,647 $15,114 $15,541
12/31/92 $14,809 $15,299 $15,713
1/31/93 $14,823 $15,427 $15,727
2/28/93 $14,714 $15,637 $15,612
3/31/93 $15,245 $15,967 $16,176
4/30/93 $14,888 $15,581 $15,797
5/31/93 $15,392 $15,998 $16,331
6/30/93 $15,318 $16,045 $16,253
7/31/93 $15,414 $15,981 $16,355
8/31/93 $16,111 $16,587 $17,095
9/30/93 $16,167 $16,460 $17,154
10/31/93 $16,431 $16,800 $17,434
11/30/93 $16,082 $16,640 $17,063
12/31/93 $16,606 $16,841 $17,620
1/31/94 $17,166 $17,414 $18,213
2/28/94 $16,821 $16,941 $17,847
3/31/94 $16,053 $16,203 $17,033
4/30/94 $16,229 $16,410 $17,219
5/31/94 $16,375 $16,680 $17,374
6/30/94 $15,846 $16,271 $16,814
7/31/94 $16,366 $16,805 $17,365
8/31/94 $17,182 $17,494 $18,213
9/30/94 $16,858 $17,067 $17,887
10/31/94 $17,164 $17,450 $18,212
11/30/94 $16,522 $16,814 $17,531
12/31/94 $16,744 $17,064 $17,766
1/31/95 $16,927 $17,506 $17,960
2/28/95 $17,454 $18,188 $18,520
3/31/95 $18,019 $18,723 $19,119
4/30/95 $18,501 $19,274 $19,630
5/31/95 $19,074 $20,043 $20,238
6/30/95 $19,669 $20,508 $20,870
7/31/95 $20,533 $21,188 $21,786
8/31/95 $20,601 $21,241 $21,859
9/30/95 $21,396 $22,137 $22,702
10/31/95 $21,029 $22,058 $22,313
11/30/95 $21,739 $23,025 $23,067
12/31/95 $21,924 $23,469 $23,262
1/31/96 $22,549 $24,267 $23,926
2/29/96 $22,972 $24,493 $24,374
3/31/96 $23,277 $24,728 $24,698
4/30/96 $23,928 $25,091 $25,389
5/31/96 $24,481 $25,736 $25,967
6/30/96 $24,393 $25,834 $25,882
7/31/96 $23,207 $24,692 $24,624
8/31/96 $23,680 $25,213 $25,125
9/30/96 $24,945 $26,630 $26,468
10/31/96 $25,114 $27,365 $26,647
11/30/96 $26,692 $29,431 $28,321
12/31/96 $26,411 $28,848 $28,015
1/31/97 $27,691 $30,648 $29,381
2/28/97 $27,683 $30,891 $29,372
3/31/97 $26,557 $29,624 $28,178
4/30/97 $27,674 $31,390 $29,364
5/31/97 $29,561 $33,308 $31,357
6/30/97 $30,945 $34,790 $32,826
7/31/97 $33,083 $37,556 $35,103
8/31/97 $31,391 $35,452 $33,307
9/30/97 $33,245 $37,392 $35,274
10/31/97 $31,893 $36,143 $33,840
11/30/97 $32,735 $37,816 $34,725
12/31/97 $33,194 $38,467 $35,220
1/31/98 $33,575 $38,890 $35,624
2/28/98 $35,946 $41,694 $38,141
3/31/98 $37,522 $43,828 $39,803
4/30/98 $38,076 $44,276 $40,391
5/31/98 $37,271 $43,514 $39,546
6/30/98 $38,465 $45,281 $40,813
7/31/98 $37,799 $44,801 $40,106
8/31/98 $32,225 $38,327 $34,192
9/30/98 $33,878 $40,784 $35,946
10/31/98 $36,146 $44,099 $38,352
11/30/98 $38,292 $46,772 $40,630
12/31/98 $40,614 $49,466 $43,094
1/31/99 $41,787 $51,548 $44,329
2/28/99 $40,579 $49,940 $43,056
3/31/99 $42,019 $51,938 $44,584
4/30/99 $43,583 $53,948 $46,244
5/31/99 $42,890 $52,675 $45,508
6/30/99 $45,236 $55,540 $47,998
7/31/99 $44,303 $53,806 $47,008
8/31/99 $43,814 $53,540 $46,489
9/30/99 $42,676 $52,072 $45,272
10/31/99 $44,747 $55,368 $47,470
11/30/99 $46,036 $56,492 $48,847
12/31/99 $48,918 $59,820 $51,905
1/31/00 $46,834 $56,817 $49,683
2/29/00 $46,824 $55,743 $49,673
3/31/00 $50,757 $61,195 $53,847
4/30/00 $49,537 $59,353 $52,552
5/31/00 $48,429 $58,136 $51,387
6/30/00 $49,772 $59,572 $52,801
7/31/00 $49,021 $58,643 $52,004
8/31/00 $51,696 $62,284 $54,853
9/30/00 $49,500 $58,996 $52,512
</TABLE>
--------------------------------------------------------------------------------
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
(3) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Diversified Equity
Fund Class A and Institutional Class shares since inception with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
5
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Diversified Small Cap Fund (the Fund) seeks long-term capital appreciation
with moderate annual return volatility by diversifying its investments across
different small capitalization equity investment styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management Incorporated
Smith Asset Management Group
Peregrine Capital Management
FUND MANAGERS
Collectively Managed
INCEPTION DATE
12/31/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 23.69%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund outperformed its
benchmark, the Russell 2000 Index(2), which returned 23.39% during the period.
The Fund distributed neither dividend income nor capital gains during the
period. Please keep in mind that past performance is no guarantee of future
results. The Fund's one-year performance was attributable to unusually
favorable conditions that may not be sustainable and are not likely to exist
in the future.
Small cap stocks experienced considerable volatility over the reporting
period. In the fourth quarter of 1999 and first quarter of 2000, investors
showed a great deal of interest in small cap growth stocks in the technology,
media and telecommunications (TMT) sectors. Internet-related issues performed
especially well.
In March, however, the trend reversed course. Led by declines in the
technology and telecommunications sectors, the small cap growth segment came
under heavy selling pressure that persisted through much of the spring and
summer. Investors were apparently concerned about a potential slowdown in the
technology and telecommunications sectors, as well as the impact of higher
crude oil prices and higher interest rates, among other factors. These
concerns helped attract investors to stocks traditionally viewed as defensive,
such as utilities and financials. Those sectors also gained strength from a
growing consensus that interest rates had stabilized.
The Fund benefited from the resurgence of value-oriented stocks in the latter
part of the reporting period. Fifty percent of the Fund is allocated to two
value-oriented small cap portfolios. An additional 25% is invested in the
Small Cap Index Portfolio, half of which consists of value stocks. As a
result, the Fund has a slight value tilt, which helped it outperform its peer
group average over the spring and summer. Although small cap growth stocks
were generally out of favor during that period, the Fund's Small Company
Growth Portfolio was buoyed by its financial and health care holdings.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund managers believe that the U.S. economy is indeed slowing, a trend
that should lead investors to favor defensive old-line and interest rate
sensitive areas of the stock market.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B and Institutional Class shares of the
Wells Fargo Diversified Small Cap Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Diversified Small Cap Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds. Performance shown
for the Class A shares of the Fund prior to October 6, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class A sales charges. Performance shown for the Class B shares of the Fund
prior to October 1, 1998, reflects the performance of the Institutional
Class shares of the Fund, adjusted to reflect Class B sales charges and
expenses. For Class A shares, the maximum front-end sales charge is 5.75%. The
maximum contingent-deferred sales charge for Class B shares is 5.00%. Class B
share performance, including sales charge, assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
6
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
-------------------------------------------------- ----------------------------------
6-Month* 1-Year Since Inception Since 01/01/98 6-Month* 1-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A 3.78 23.69 4.03 (2.19) 16.58 1.81
CLASS B 3.39 22.66 3.33 (1.61) 17.66 2.29
INSTITUTIONAL CLASS 3.90 23.95 4.14
BENCHMARK
RUSSELL 2000 INDEX (2.72) 23.39 7.85(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 17.5x
PRICE TO BOOK RATIO 2.6x
MEDIAN MARKET CAP. ($B) 0.9
NUMBER OF HOLDINGS 772
PORTFOLIO TURNOVER 121%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AMERICREDIT CORPORATION 0.97%
VINTAGE PETROLEUM INCORPORATED 0.94%
DOLLAR THRIFTY AUTOMOTIVE 0.89%
INFOCUS CORPORATION 0.83%
OLD REPUBLIC INTERNATIONAL CORPORATION 0.78%
C&D TECHNOLOGIES INCORPORATED 0.76%
MICHAELS STORES 0.75%
ASTORIA FINANCIAL CORPORATION 0.75%
COMPUCREDIT CORPORATION 0.69%
OXFORD HEALTH PLANS 0.64%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financial 19%
Technology 18%
Consumer Cyclical 14%
Health Care 12%
Energy 6%
Consumer Services 6%
Commercial Services 4%
Utilities 4%
Basic Materials 4%
Consumer Non-Cyclical 3%
Industrials 3%
Transportation 3%
Cash 3%
Telecommunications 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO DIVERSIFIED WELLS FARGO DIVERSIFIED
SMALL CAP FUND-CLASS A RUSSELL 2000 INDEX SMALL CAP FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
12/31/97 $9,425 $10,000 $10,000
1/31/98 $9,312 $9,842 $9,880
2/28/98 $10,075 $10,569 $10,690
3/31/98 $10,527 $11,005 $11,170
4/30/98 $10,574 $11,065 $11,220
5/31/98 $9,915 $10,469 $10,520
6/30/98 $9,849 $10,491 $10,450
7/31/98 $9,104 $9,641 $9,660
8/31/98 $7,163 $7,769 $7,600
9/30/98 $7,512 $8,377 $7,970
10/31/98 $7,853 $8,719 $8,320
11/30/98 $8,253 $9,176 $8,750
12/31/98 $8,619 $9,744 $9,140
1/31/99 $8,530 $9,873 $9,040
2/28/99 $7,782 $9,074 $8,260
3/31/99 $7,684 $9,215 $8,150
4/30/99 $8,218 $10,041 $8,720
5/31/99 $8,476 $10,187 $8,990
6/30/99 $8,948 $10,648 $9,500
7/31/99 $8,895 $10,356 $9,450
8/31/99 $8,547 $9,973 $9,070
9/30/99 $8,494 $9,975 $9,020
10/31/99 $8,485 $10,016 $9,020
11/30/99 $8,823 $10,614 $9,370
12/31/99 $9,447 $11,815 $10,040
1/31/00 $9,010 $11,625 $9,570
2/29/00 $9,785 $13,544 $10,400
3/31/00 $10,123 $12,652 $10,760
4/30/00 $10,061 $11,890 $10,690
5/31/00 $9,732 $11,197 $10,350
6/30/00 $10,168 $12,173 $10,810
7/31/00 $9,892 $11,781 $10,520
8/31/00 $10,756 $12,680 $11,440
9/30/00 $10,506 $12,307 $11,180
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index that
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(3) The published return closest to the Fund's inception date of 12/31/97.
(4) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Diversified Small Cap
Fund Class A and Institutional Class shares since inception with the Russell
2000 Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
7
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY INCOME FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Equity Income Fund (the Fund) seeks long-term capital appreciation and
above-average dividend income.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Roberts, CFA
Gary Dunn, CFA
INCEPTION DATE
03/31/89
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 1.17%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund underperformed its
benchmark, the Russell 1000 Value Index(2), which returned 8.91%. The Fund's
Class A shares distributed $0.42 per share in dividend income and $3.04 per
share in capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The majority of the difference between the Fund's performance and that of its
benchmark can be attributed to the financial and utility sectors, which
underperformed the Fund's benchmark by almost half. The Fund's
telecommunications, basic materials and consumer cyclicals sectors were also
relatively weak.
In absolute terms, the Fund benefited from the solid performance of several
holdings. Shares of the financial services firm St. Paul Companies nearly
doubled, thanks to improved earnings per share growth and better long-term
prospects. J.P. Morgan, which received a merger offer from Chase Manhattan,
was another strong holding. The health care sector performed well, and in the
utility sector, Public Service Enterprise Group produced solid returns. In
addition, the Fund's energy stocks benefited as oil prices continued to rise.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund managers believe that the U.S. economy may remain healthy, while
European and Asian economies begin to strengthen. The euro's declining value
versus the U.S. dollar may have a negative impact on the Fund's performance,
given its exposure to many U.S. companies that derive significant revenue from
European economies.
The Fund managers will continue to focus on the highest-quality franchise
companies that appear to have the most solid growth prospects. The Fund will
strive to avoid the pure value stocks that appear to lack a catalyst to
improve performance.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B, Class C and Institutional
Class shares of the Wells Fargo Equity Income Fund for periods prior to
November 8, 1999, reflects performance of the Class A, Class B, Class C and
Institutional Class shares of the Norwest Advantage Income Equity Fund (the
accounting survivor of a merger of the Norwest Advantage Income Equity Fund and
the Stagecoach Diversified Equity Income Fund), its predecessor fund. Effective
at the close of business November 5, 1999, the Stagecoach and Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. Performance shown for the
Class A and Class B shares of the Fund prior to May 2, 1996, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class A and Class B sales charges and expenses, respectively. Performance shown
for the Class C shares of the Fund prior to October 1, 1998 reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class C sales charges and expenses. Performance of the Institutional
Class shares of the Fund prior to November 11, 1994, reflects the performance of
a collective investment fund, adjusted to reflect Institutional Class expenses.
Wells Fargo Bank Minnesota, N.A. (WFB MN), formerly Norwest Bank Minnesota,
N.A., managed the collective investment fund with an investment objective and
principal investment strategy that were substantially similar to those of the
Fund. The performance for the Fund includes performance of its predecessor
collective investment fund for periods before it became a mutual fund on
November 11, 1994. The collective investment fund's performance was adjusted to
reflect the Fund's 1994 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The collective investment
fund was not registered under the Investment Company Act of 1940 ("1940 Act")
nor subject to certain investment limitations, diversification requirements and
other restrictions imposed by the 1940 Act or the Internal Revenue Code, which,
if applicable, may have adversely affected the performance results. For Class A
shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance, including sales charge, assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
8
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 1.13 1.17 15.55 15.93 (4.68) (4.65) 14.19 15.24
CLASS B 0.75 0.41 14.69 15.06 (4.05) (4.26) 14.46 15.06
CLASS C 0.76 0.41 14.67 15.05 (0.20) (0.53) 14.67 15.05
INSTITUTIONAL CLASS 1.24 1.39 15.60 15.95
BENCHMARKS
S&P 500 INDEX(3) (3.60) 13.28 21.69 19.44
RUSSELL 1000 VALUE
INDEX 2.81 8.91 17.59 17.85
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.79
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 19.4x
PRICE TO BOOK RATIO 3.7x
MEDIAN MARKET CAP ($B) 36.0
NUMBER OF HOLDINGS 86
PORTFOLIO TURNOVER 3%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
ST. PAUL COMPANIES INCORPORATED 4.29%
PEPSICO 4.23%
IBM CORPORATION 4.00%
GENERAL ELECTRIC COMPANY 3.72%
TYCO INTERNATIONAL LIMITED 3.60%
HEWLETT-PACKARD COMPANY 3.46%
J.P. MORGAN & COMPANY 3.11%
EXXON MOBIL CORPORATION 3.04%
AMERICAN EXPRESS COMPANY 2.81%
TXU CORPORATION 2.70%
</TABLE>
SECTOR DISTRIBUTION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financial 19%
Technology 15%
Health Care 11%
Consumer Non-Cyclical 11%
Industrials 9%
Energy 8%
Basic Materials 7%
Consumer Cyclical 5%
Consumer Services 5%
Commercial Services 4%
Telecommunications 3%
Utilities 3%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
EQUITY INCOME RUSSELL 1000 EQUITY INCOME
FUND-CLASS A S&P 500 INDEX VALUE INDEX FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C> <C>
9/30/90 $9,425 $10,000 $10,000 $10,000
10/31/90 $9,429 $9,957 $9,863 $10,004
11/30/90 $9,904 $10,601 $10,547 $10,508
12/31/90 $10,178 $10,896 $10,814 $10,799
1/31/91 $10,589 $11,371 $11,302 $11,235
2/28/91 $11,356 $12,184 $12,054 $12,049
3/31/91 $11,618 $12,479 $12,232 $12,326
4/30/91 $11,654 $12,509 $12,321 $12,365
5/31/91 $12,119 $13,048 $12,780 $12,858
6/30/91 $11,557 $12,451 $12,242 $12,262
7/31/91 $11,954 $13,031 $12,753 $12,684
8/31/91 $12,289 $13,340 $12,984 $13,039
9/30/91 $12,129 $13,117 $12,887 $12,869
10/31/91 $12,249 $13,293 $13,101 $12,997
11/30/91 $11,817 $12,757 $12,429 $12,538
12/31/91 $13,106 $14,216 $13,470 $13,905
1/31/92 $12,752 $13,952 $13,493 $13,530
2/29/92 $12,844 $14,132 $13,824 $13,628
3/31/92 $12,788 $13,857 $13,622 $13,568
4/30/92 $13,201 $14,264 $14,210 $14,006
5/31/92 $13,204 $14,334 $14,280 $14,009
6/30/92 $12,999 $14,121 $14,193 $13,792
7/31/92 $13,630 $14,698 $14,710 $14,462
8/31/92 $13,319 $14,397 $14,258 $14,132
9/30/92 $13,432 $14,566 $14,455 $14,251
10/31/92 $13,360 $14,616 $14,468 $14,176
11/30/92 $13,742 $15,114 $14,942 $14,581
12/31/92 $13,827 $15,299 $15,301 $14,671
1/31/93 $13,719 $15,427 $15,745 $14,556
2/28/93 $13,948 $15,637 $16,294 $14,799
3/31/93 $14,400 $15,967 $16,775 $15,279
4/30/93 $14,196 $15,581 $16,560 $15,062
5/31/93 $14,607 $15,998 $16,893 $15,498
6/30/93 $14,505 $16,045 $17,268 $15,390
7/31/93 $14,482 $15,981 $17,458 $15,366
8/31/93 $15,059 $16,587 $18,088 $15,978
9/30/93 $14,908 $16,460 $18,119 $15,818
10/31/93 $14,986 $16,800 $18,104 $15,901
11/30/93 $14,780 $16,640 $17,728 $15,682
12/31/93 $14,883 $16,841 $18,066 $15,791
1/31/94 $15,286 $17,414 $18,746 $16,218
2/28/94 $14,828 $16,941 $18,106 $15,733
3/31/94 $14,208 $16,203 $17,431 $15,075
4/30/94 $14,410 $16,410 $17,766 $15,289
5/31/94 $14,781 $16,680 $17,972 $15,682
6/30/94 $14,429 $16,271 $17,541 $15,309
7/31/94 $14,833 $16,805 $18,086 $15,737
8/31/94 $15,798 $17,494 $18,607 $16,761
9/30/94 $15,538 $17,067 $17,991 $16,486
10/31/94 $15,843 $17,450 $18,241 $16,809
11/30/94 $15,383 $16,814 $17,506 $16,321
12/31/94 $15,574 $17,064 $17,709 $16,524
1/31/95 $16,031 $17,506 $18,254 $17,009
2/28/95 $16,721 $18,188 $18,977 $17,741
3/31/95 $17,169 $18,723 $19,395 $18,217
4/30/95 $17,693 $19,274 $20,008 $18,772
5/31/95 $18,366 $20,043 $20,848 $19,487
6/30/95 $18,491 $20,508 $21,130 $19,619
7/31/95 $18,964 $21,188 $21,865 $20,122
8/31/95 $19,056 $21,241 $22,173 $20,218
9/30/95 $20,053 $22,137 $22,976 $21,277
10/31/95 $19,962 $22,058 $22,748 $21,180
11/30/95 $21,050 $23,025 $23,899 $22,335
12/31/95 $21,558 $23,469 $24,499 $22,874
1/31/96 $22,320 $24,267 $25,264 $23,681
2/29/96 $22,446 $24,493 $25,456 $23,816
3/31/96 $22,709 $24,728 $25,888 $24,094
4/30/96 $23,036 $25,091 $25,987 $24,441
5/31/96 $23,583 $25,736 $26,312 $25,022
6/30/96 $23,840 $25,834 $26,333 $25,285
7/31/96 $22,887 $24,692 $25,337 $24,283
8/31/96 $23,196 $25,213 $26,062 $24,611
9/30/96 $24,219 $26,630 $27,099 $25,696
10/31/96 $24,676 $27,365 $28,148 $26,182
11/30/96 $26,411 $29,431 $30,189 $28,032
12/31/96 $25,923 $28,848 $29,802 $27,505
1/31/97 $27,204 $30,648 $31,248 $28,855
2/28/97 $27,594 $30,891 $31,707 $29,278
3/31/97 $26,725 $29,624 $30,566 $28,356
4/30/97 $27,587 $31,390 $31,849 $29,270
5/31/97 $28,867 $33,308 $33,630 $30,628
6/30/97 $30,102 $34,790 $35,072 $31,929
7/31/97 $32,094 $37,556 $37,710 $34,043
8/31/97 $30,540 $35,452 $36,367 $32,394
9/30/97 $32,086 $37,392 $38,564 $34,044
10/31/97 $31,091 $36,143 $37,488 $32,988
11/30/97 $32,574 $37,816 $39,145 $34,562
12/31/97 $33,199 $38,467 $40,288 $35,216
1/31/98 $33,244 $38,890 $39,716 $35,273
2/28/98 $35,473 $41,694 $42,389 $37,637
3/31/98 $37,341 $43,828 $44,983 $39,619
4/30/98 $37,683 $44,276 $45,284 $39,973
5/31/98 $37,133 $43,514 $44,614 $39,390
6/30/98 $37,723 $45,281 $45,185 $40,016
7/31/98 $36,647 $44,801 $44,390 $38,884
8/31/98 $32,045 $38,327 $37,785 $33,991
9/30/98 $33,811 $40,784 $39,954 $35,875
10/31/98 $36,216 $44,099 $43,050 $38,416
11/30/98 $37,918 $46,772 $45,056 $40,222
12/31/98 $39,114 $49,466 $46,588 $41,501
1/31/99 $39,004 $51,548 $46,961 $41,385
2/28/99 $39,096 $49,940 $46,299 $41,472
3/31/99 $40,622 $51,938 $47,257 $43,092
4/30/99 $42,718 $53,948 $51,671 $45,325
5/31/99 $42,608 $52,675 $51,102 $45,198
6/30/99 $44,354 $55,540 $52,584 $47,060
7/31/99 $43,175 $53,806 $51,044 $45,809
8/31/99 $42,456 $53,540 $49,150 $45,037
9/30/99 $40,835 $52,072 $47,435 $43,317
10/31/99 $41,962 $55,368 $50,167 $44,513
11/30/99 $42,278 $56,492 $49,775 $44,858
12/31/99 $42,347 $59,820 $50,014 $44,939
1/31/00 $40,212 $56,817 $48,384 $42,683
2/29/00 $37,138 $55,743 $44,789 $39,430
3/31/00 $40,850 $61,195 $50,253 $43,385
4/30/00 $40,650 $59,353 $49,670 $43,183
5/31/00 $41,316 $58,136 $50,192 $43,890
6/30/00 $40,349 $59,572 $47,898 $42,870
7/31/00 $39,539 $58,643 $48,497 $42,019
8/31/00 $41,757 $62,284 $51,193 $44,387
9/30/00 $41,312 $58,996 $51,664 $43,921
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
(4) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Equity Income Fund
Class A and Institutional Class shares since inception with the S&P 500 Index
and the Russell 1000 Value Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
9
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Equity Index Fund (the Fund) seeks to approximate the total rate of return
of substantially all common stocks comprising the S&P 500 Index(1).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
INCEPTION DATE
01/25/84
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 12.43%(2) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund underperformed its
benchmark, the S&P 500 Index, which returned 13.28% during the period. The
Fund's Class A shares distributed $0.10 per share in dividend income and $3.19
per share in capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The Fund's objective is to approximate the return of the S&P 500 Index. To
achieve this goal, the Fund invests in all 500 securities that make up the
S&P 500 Index in the same weighting as the S&P 500 Index. Differences between
the Fund's performance and that of the S&P 500 Index are due to fund expenses
and the effects of cash positions held by the Fund. A small portion of the
Fund's assets are kept in cash so that the Fund can handle shareholder
transactions without being forced to trade stocks to provide liquidity.
Holding cash minimizes transaction costs, but it can hurt performance. The
Fund's managers strive to minimize the effect of holding cash by hedging the
Fund's cash position with S&P 500 Index futures contracts, which, in effect,
give the Fund a 100% equity position.
The S&P 500 Index experienced dramatic highs and lows over the reporting
period. In late 1999 and early 2000, its performance was driven by a powerful
rally in technology, media and telecommunications (TMT) stocks. These stocks
entered a sharp correction in March 2000, however, and the volatility
persisted through September. Grappling with a number of factors -- including
higher interest rates, higher crude oil prices and potentially slower growth
in the technology and telecommunications industries -- investors began to
favor sectors that are traditionally considered defensive, such as utilities.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the U.S. economy is indeed slowing, a trend
that historically has led investors to favor defensive old-line and interest
rate sensitive areas of the stock market. As economic growth slows and
inflation fears appear to dissipate, the Fund expects the overall S&P 500
Index to move to new all-time highs during the next few months. The Fund's
managers will buy and sell securities only to reflect concurrent changes in
the underlying index.
--------------------------------------------------------------------------------
(1) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
10
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (3.88) 12.43 20.61 18.26 (9.41) 5.96 19.19 17.56
CLASS B (4.24) 11.58 19.77 17.53 (9.03) 6.58 19.57 17.53
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.00
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 28.5X
PRICE TO BOOK RATIO 5.2X
MEDIAN MARKET CAP. ($B) 9.3
5 YEAR EARNINGS GROWTH
(HISTORIC) 10.4%
NUMBER OF HOLDINGS 503
PORTFOLIO TURNOVER 8%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
GENERAL ELECTRIC COMPANY 4.39%
CISCO SYSTEMS INCORPORATED 3.01%
MICROSOFT CORPORATION 2.44%
EXXON MOBIL CORPORATION 2.39%
PFIZER INCORPORATED 2.18%
INTEL CORPORATION 2.15%
CITIGROUP INCORPORATED 1.87%
ORACLE CORPORATION 1.70%
AMERICAN INTERATIONAL GROUP 1.70%
EMC CORPORATION 1.66%
</TABLE>
SECTOR DISTRIBUTION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 30%
Financial 18%
Health Care 11%
Telecommunications 6%
Energy 6%
Consumer Non-Cyclical 6%
Consumer Cyclical 6%
Consumer Services 5%
Basic Materials 4%
Industrials 3%
Utilities 2%
Commercial Services 2%
Transportation 1%
</TABLE>
GROWTH OF $10,000 CHART(5)
----------------------------------------------
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO EQUITY INDEX FUND-CLASS A S&P 500 INDEX
<S> <C> <C>
9/30/90 $9,425 $10,000
10/31/90 $9,376 $9,957
11/30/90 $9,965 $10,601
12/31/90 $10,234 $10,896
1/31/91 $10,663 $11,371
2/28/91 $11,409 $12,184
3/31/91 $11,665 $12,479
4/30/91 $11,683 $12,509
5/31/91 $12,160 $13,048
6/30/91 $11,605 $12,451
7/31/91 $12,129 $13,031
8/31/91 $12,402 $13,340
9/30/91 $12,190 $13,117
10/31/91 $12,342 $13,293
11/30/91 $11,843 $12,757
12/31/91 $13,174 $14,216
1/31/92 $12,918 $13,952
2/29/92 $13,075 $14,132
3/31/92 $12,814 $13,857
4/30/92 $13,175 $14,264
5/31/92 $13,228 $14,334
6/30/92 $13,025 $14,121
7/31/92 $13,542 $14,698
8/31/92 $13,257 $14,397
9/30/92 $13,401 $14,566
10/31/92 $13,436 $14,616
11/30/92 $13,881 $15,114
12/31/92 $14,043 $15,299
1/31/93 $14,146 $15,427
2/28/93 $14,329 $15,637
3/31/93 $14,616 $15,967
4/30/93 $14,257 $15,581
5/31/93 $14,620 $15,998
6/30/93 $14,651 $16,045
7/31/93 $14,579 $15,981
8/31/93 $15,116 $16,587
9/30/93 $14,989 $16,460
10/31/93 $15,284 $16,800
11/30/93 $15,125 $16,640
12/31/93 $15,294 $16,841
1/31/94 $15,799 $17,414
2/28/94 $15,364 $16,941
3/31/94 $14,686 $16,203
4/30/94 $14,863 $16,410
5/31/94 $15,091 $16,680
6/30/94 $14,715 $16,271
7/31/94 $15,184 $16,805
8/31/94 $15,787 $17,494
9/30/94 $15,395 $17,067
10/31/94 $15,724 $17,450
11/30/94 $15,146 $16,814
12/31/94 $15,358 $17,064
1/31/95 $15,739 $17,506
2/28/95 $16,340 $18,188
3/31/95 $16,806 $18,723
4/30/95 $17,282 $19,274
5/31/95 $17,954 $20,043
6/30/95 $18,352 $20,508
7/31/95 $18,943 $21,188
8/31/95 $18,978 $21,241
9/30/95 $19,754 $22,137
10/31/95 $19,675 $22,058
11/30/95 $20,511 $23,025
12/31/95 $20,885 $23,469
1/31/96 $21,576 $24,267
2/29/96 $21,762 $24,493
3/31/96 $21,955 $24,728
4/30/96 $22,258 $25,091
5/31/96 $22,804 $25,736
6/30/96 $22,874 $25,834
7/31/96 $21,850 $24,692
8/31/96 $22,286 $25,213
9/30/96 $23,518 $26,630
10/31/96 $24,144 $27,365
11/30/96 $25,934 $29,431
12/31/96 $25,409 $28,848
1/31/97 $26,958 $30,648
2/28/97 $27,147 $30,891
3/31/97 $26,017 $29,624
4/30/97 $27,543 $31,390
5/31/97 $29,191 $33,308
6/30/97 $30,487 $34,790
7/31/97 $32,852 $37,556
8/31/97 $30,997 $35,452
9/30/97 $32,661 $37,392
10/31/97 $31,550 $36,143
11/30/97 $32,971 $37,816
12/31/97 $33,512 $38,467
1/31/98 $33,863 $38,890
2/28/98 $36,281 $41,694
3/31/98 $38,111 $43,828
4/30/98 $38,474 $44,276
5/31/98 $37,786 $43,514
6/30/98 $39,318 $45,281
7/31/98 $38,878 $44,801
8/31/98 $33,250 $38,327
9/30/98 $35,360 $40,784
10/31/98 $38,181 $44,099
11/30/98 $40,474 $46,772
12/31/98 $42,785 $49,466
1/31/99 $44,538 $51,548
2/28/99 $43,133 $49,940
3/31/99 $44,828 $51,938
4/30/99 $46,538 $53,948
5/31/99 $45,411 $52,675
6/30/99 $47,891 $55,540
7/31/99 $46,379 $53,806
8/31/99 $46,127 $53,540
9/30/99 $44,842 $52,072
10/31/99 $47,659 $55,368
11/30/99 $48,578 $56,492
12/31/99 $51,392 $59,820
1/31/00 $48,781 $56,817
2/29/00 $47,832 $55,743
3/31/00 $52,448 $61,195
4/30/00 $50,838 $59,353
5/31/00 $49,764 $58,136
6/30/00 $50,951 $59,572
7/31/00 $50,170 $58,643
8/31/00 $53,247 $62,284
9/30/00 $50,414 $58,996
</TABLE>
--------------------------------------------------------------------------------
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A and Class B shares of the Wells Fargo Equity
Index Fund for periods prior to November 8, 1999, reflects performance of the
Class A and Class B shares of the Stagecoach Equity Index Fund, its predecessor
fund. Effective at the close of business November 5, 1999, the Stagecoach and
Norwest Advantage Funds were reorganized into the Wells Fargo Funds. Performance
shown for Class A shares for periods prior to December 12, 1997, reflects
performance of the Stagecoach Corporate Stock Fund, a predecessor portfolio with
the same investment objectives and policies as the Fund. Performance shown for
the Class A shares of the Fund prior to January 1, 1992, reflects performance of
the Corporate Stock Fund of the Wells Fargo Investment Trust for Retirement
Programs, a predecessor portfolio of the Stagecoach Corporate Stock Fund,
adjusted for Class A sales charges and expenses. Performance shown for the
Class B shares prior to February 17, 1998, reflects performance of the Class A
shares, adjusted for Class B sales charges and expenses. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. Class B share performance including sales
charge assumes the maximum contingent-deferred sales charge for the
corresponding time period.
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Equity Index Fund
Class A shares since inception with the S&P 500 Index. The chart assumes a
hypothetical investment of $10,000 in Class A shares and reflects all operating
expenses while assuming the maximum initial sales charge of 5.75%.
11
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY VALUE FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Equity Value Fund (the Fund) seeks to provide investors with long-term
capital appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Allan White
Allen Wisniewski, CFA
Gregg Giboney, CFA
INCEPTION DATE
07/02/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 12.12%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund underperformed its
benchmark, the S&P 500 Index(2), which returned 13.28%, but outperformed the
Russell 1000 Value Index(3), which returned 8.91% during the period. The
Fund's Class A shares distributed $0.03 per share in dividend income and $2.27
per share in capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The Fund's relatively light exposure to technology and telecommunications
stocks was a hindrance relative to the more growth-oriented S&P 500 Index over
the first part of the reporting period, but a help in the latter part. The
telecommunications and technology sectors led the market with a tremendous
rally in late 1999 and early 2000, but fell into a sharp correction in the
spring of 2000 that persisted through the end of September.
The Fund was able to outperform the narrower Russell 1000 Value Index thanks
to both favorable stock selection and favorable sector allocations over the
fiscal year. The managers' stock selection in the financial and health care
sectors was especially advantageous to the Fund. The Fund also benefited from
timely trades in the consumer staples area, its underweighting in
telecommunications stocks, and good positions in oil services, exploration and
production stocks.
The Fund's best performers over the reporting period included PepsiCo, Morgan
Stanley Dean Witter and Citigroup. Among the laggards were Canadian National
Railway, Costco Wholesale and Chase Manhattan Bank.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the combination of higher interest rates and
higher energy prices are slowing the economy. The euro's weakness relative to
the U.S. dollar is also creating a headwind for U.S. companies with
significant overseas business. If the slowdown is moderate -- creating the
proverbial soft landing -- the managers expect the market and the Fund to
perform relatively well over the next year. In addition, assuming that market
performance continues to broaden, the managers believe that the performance of
this Fund, and that of value-oriented strategies in general, should be equal
or favorable to the overall market's in the coming months.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through November 5, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B, Class C and Institutional
Class shares of the Wells Fargo Equity Value Fund for periods prior to
November 8, 1999, reflects performance of the Class A, Class B, Class C and
Institutional Class shares of the Stagecoach Equity Value Fund, its predecessor
fund. Effective at the close of business November 5, 1999, the Stagecoach and
Norwest Advantage Funds were reorganized into the Wells Fargo Funds. Performance
shown for Class A shares for periods prior to September 6, 1996, reflects
performance of the Investor shares of the Pacifica Equity Value Fund, a
predecessor portfolio with the same investment objective and policies as the
Stagecoach Equity Value Fund. Performance shown for the Class B shares for
periods prior to September 6, 1996, reflects performance of the Investor shares
of the predecessor portfolio, with expenses of the Investor shares adjusted to
reflect Class B sales charges and expenses. Performance shown for the Class C
shares for periods prior to April 1, 1998, reflects performance of the Class B
shares, adjusted for Class C sales charges and expenses. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. The maximum contingent-deferred sales charge
for Class C shares is 1.00%. Class B and Class C share performance, including
sales charge, assumes the maximum contingent-deferred sales charge for the
corresponding time period. Institutional Class shares are sold without sales
charges.
12
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 2.81 12.12 12.70 14.77 (3.08) 5.67 11.37 14.08
CLASS B 2.42 11.28 12.02 14.03 (2.58) 6.56 11.77 14.03
CLASS C 2.32 11.18 12.00 14.02 1.32 10.24 12.00 14.02
INSTITUTIONAL CLASS 2.89 12.18 12.92 14.88
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
RUSSELL 1000 VALUE
INDEX 2.81 8.91 17.59 17.85
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.88
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 24X
PRICE TO BOOK RATIO 4.75X
MEDIAN MARKET CAP ($B) 27.2
NUMBER OF HOLDINGS 60
PORTFOLIO TURNOVER 117%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CITIGROUP INCORPORATED 5.62%
IBM CORPORATION 5.35%
AMERICAN INTERNATIONAL GROUP 5.22%
EXXON MOBIL CORPORATION 3.71%
MORGAN STANLEY DEAN WITTER 3.36%
GENERAL ELECTRIC COMPANY 2.96%
MOLEX INCORPORATED 2.64%
HARTFORD FINANCIAL SERVICES 2.60%
COSTCO WHOLESALE CORPORATION 2.54%
TYCO INTERNATIONAL LIMITED 2.50%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financial 32%
Technology 18%
Consumer Cyclical 9%
Health Care 9%
Energy 8%
Consumer Non-Cyclical 8%
Industrials 4%
Consumer Services 3%
Commercial Services 3%
Basic Materials 3%
Telecommunications 2%
Utilities 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO EQUITY RUSSELL 1000 WELLS FARGO EQUITY
VALUE FUND-CLASS A S&P 500 INDEX VALUE INDEX VALUE FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C> <C>
9/90 $9,425 $10,000 $10,000 $10,000
10/90 $9,322 $9,957 $9,863 $9,894
11/90 $9,993 $10,601 $10,547 $10,606
12/90 $10,340 $10,896 $10,814 $10,974
1/91 $10,645 $11,371 $11,302 $11,298
2/91 $11,322 $12,184 $12,054 $12,017
3/91 $11,650 $12,479 $12,232 $12,364
4/91 $11,525 $12,509 $12,321 $12,232
5/91 $11,888 $13,048 $12,780 $12,617
6/91 $11,320 $12,451 $12,242 $12,015
7/91 $11,811 $13,031 $12,753 $12,535
8/91 $12,096 $13,340 $12,984 $12,837
9/91 $11,970 $13,117 $12,887 $12,704
10/91 $12,051 $13,293 $13,101 $12,790
11/91 $11,317 $12,757 $12,429 $12,011
12/91 $12,490 $14,216 $13,470 $13,256
1/92 $12,667 $13,952 $13,493 $13,443
2/92 $12,902 $14,132 $13,824 $13,693
3/92 $12,737 $13,857 $13,622 $13,518
4/92 $13,043 $14,264 $14,210 $13,843
5/92 $12,890 $14,334 $14,280 $13,680
6/92 $12,643 $14,121 $14,193 $13,418
7/92 $13,023 $14,698 $14,710 $13,821
8/92 $12,584 $14,397 $14,258 $13,355
9/92 $12,786 $14,566 $14,455 $13,570
10/92 $12,941 $14,616 $14,468 $13,734
11/92 $13,501 $15,114 $14,942 $14,329
12/92 $13,807 $15,299 $15,301 $14,654
1/93 $14,323 $15,427 $15,745 $15,201
2/93 $14,556 $15,637 $16,294 $15,448
3/93 $15,121 $15,967 $16,775 $16,048
4/93 $14,874 $15,581 $16,560 $15,786
5/93 $15,367 $15,998 $16,893 $16,310
6/93 $15,553 $16,045 $17,268 $16,506
7/93 $15,726 $15,981 $17,458 $16,690
8/93 $16,456 $16,587 $18,088 $17,466
9/93 $16,395 $16,460 $18,119 $17,400
10/93 $16,668 $16,800 $18,104 $17,691
11/93 $16,619 $16,640 $17,728 $17,638
12/93 $17,372 $16,841 $18,066 $18,437
1/94 $18,117 $17,414 $18,746 $19,228
2/94 $17,934 $16,941 $18,106 $19,034
3/94 $17,153 $16,203 $17,431 $18,205
4/94 $17,224 $16,410 $17,766 $18,280
5/94 $17,393 $16,680 $17,972 $18,460
6/94 $17,033 $16,271 $17,541 $18,078
7/94 $17,402 $16,805 $18,086 $18,470
8/94 $17,956 $17,494 $18,607 $19,057
9/94 $17,623 $17,067 $17,991 $18,703
10/94 $17,523 $17,450 $18,241 $18,597
11/94 $16,896 $16,814 $17,506 $17,932
12/94 $17,075 $17,064 $17,709 $18,122
1/95 $16,892 $17,506 $18,254 $17,927
2/95 $17,547 $18,188 $18,977 $18,623
3/95 $18,004 $18,723 $19,395 $19,108
4/95 $18,495 $19,274 $20,008 $19,629
5/95 $19,063 $20,043 $20,848 $20,232
6/95 $19,186 $20,508 $21,130 $20,363
7/95 $19,973 $21,188 $21,865 $21,198
8/95 $20,050 $21,241 $22,173 $21,280
9/95 $20,545 $22,137 $22,976 $21,804
10/95 $20,096 $22,058 $22,748 $21,344
11/95 $20,978 $23,025 $23,899 $22,297
12/95 $21,192 $23,469 $24,499 $22,537
1/96 $21,581 $24,267 $25,264 $22,967
2/96 $21,856 $24,493 $25,456 $23,260
3/96 $22,438 $24,728 $25,888 $23,897
4/96 $22,892 $25,091 $25,987 $24,397
5/96 $23,233 $25,736 $26,312 $24,777
6/96 $23,039 $25,834 $26,333 $24,571
7/96 $22,014 $24,692 $25,337 $23,461
8/96 $22,551 $25,213 $26,062 $24,033
9/96 $23,542 $26,630 $27,099 $25,109
10/96 $24,695 $27,365 $28,148 $26,359
11/96 $26,666 $29,431 $30,189 $28,463
12/96 $26,774 $28,848 $29,802 $28,571
1/97 $27,809 $30,648 $31,248 $29,695
2/97 $28,242 $30,891 $31,707 $30,137
3/97 $27,221 $29,624 $30,566 $29,059
4/97 $28,013 $31,390 $31,849 $29,904
5/97 $30,183 $33,308 $33,630 $32,220
6/97 $31,356 $34,790 $35,072 $33,487
7/97 $33,890 $37,556 $37,710 $36,193
8/97 $32,661 $35,452 $36,367 $34,901
9/97 $33,941 $37,392 $38,564 $36,263
10/97 $32,178 $36,143 $37,488 $34,380
11/97 $33,202 $37,816 $39,145 $35,473
12/97 $34,090 $38,467 $40,288 $36,418
1/98 $33,899 $38,890 $39,716 $36,237
2/98 $36,509 $41,694 $42,389 $39,026
3/98 $38,587 $43,828 $44,983 $41,273
4/98 $38,183 $44,276 $45,284 $40,818
5/98 $37,567 $43,514 $44,614 $40,181
6/98 $37,390 $45,281 $45,185 $39,985
7/98 $35,345 $44,801 $44,390 $37,796
8/98 $30,359 $38,327 $37,785 $32,462
9/98 $31,924 $40,784 $39,954 $34,150
10/98 $33,956 $44,099 $43,050 $36,324
11/98 $35,388 $46,772 $45,056 $37,881
12/98 $36,367 $49,466 $46,588 $38,937
1/99 $35,949 $51,548 $46,961 $38,464
2/99 $34,672 $49,940 $46,299 $37,097
3/99 $35,171 $51,938 $47,257 $37,640
4/99 $37,966 $53,948 $51,671 $40,633
5/99 $37,011 $52,675 $51,102 $39,635
6/99 $38,428 $55,540 $52,584 $41,138
7/99 $36,841 $53,806 $51,044 $39,463
8/99 $34,718 $53,540 $49,150 $37,189
9/99 $33,309 $52,072 $47,435 $35,694
10/99 $35,109 $55,368 $50,167 $37,598
11/99 $34,992 $56,492 $49,775 $37,498
12/99 $35,579 $59,820 $50,014 $38,143
1/00 $34,723 $56,817 $48,384 $37,196
2/00 $33,177 $55,743 $44,789 $35,539
3/00 $36,326 $61,195 $50,253 $38,914
4/00 $35,636 $59,353 $49,670 $38,173
5/00 $35,553 $58,136 $50,192 $38,084
6/00 $34,807 $59,572 $47,898 $37,313
7/00 $35,497 $58,643 $48,497 $38,054
8/00 $38,426 $62,284 $51,193 $41,196
9/00 $37,348 $58,996 $51,664 $40,040
</TABLE>
--------------------------------------------------------------------------------
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Equity Value Fund
Class A and Institutional Class shares since inception with the S&P 500 Index
and the Russell 1000 Value Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
13
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Growth Fund (the Fund) seeks long-term capital appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Kelli Hill
Stephen Biggs
INCEPTION DATE
08/02/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 14.40%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund outperformed its
benchmark, the S&P 500 Index(2), which returned 13.28% during the period. The
Fund's Class A shares distributed no dividend income and $3.05 per share in
capital gains during the period. Please keep in mind that past performance is
no guarantee of future results.
Technology stocks were a main factor driving the Fund's outperformance
relative to the S&P 500 Index over the fiscal year. Enterprise and network
storage stocks such as Veritas and EMC Corporation were clear winners as the
demand for storage, driven by the Internet, continued to be very robust.
Optical networking stocks such as Nortel Networks, Cisco Systems and Uniphase
also performed very well through the year.
In utilities, AES Corporation was another standout; it benefited as the
demand for electrical power exceeded the supply. Even though there has been
much concern regarding consumer spending over the year, Kohls Department Store
was a great contributor to the Fund's performance.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers anticipate a stable-to-lower interest rate environment
through at least the fourth quarter of 2000. As a result, the market is
expected to improve in late 2000 and 2001, especially if the euro also
stabilizes and the price of oil reaches equilibrium. This scenario should
allow investors to regain confidence in large cap growth stocks. The Fund's
managers also believe that the high-growth sectors, such as technology and
telecommunications, would also benefit.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B and Institutional Class shares of the
Wells Fargo Growth Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Institutional Class shares of the
Stagecoach Growth Fund (the accounting survivor of a merger of the Stagecoach
Growth Fund and the Norwest Advantage ValuGrowth Stock Fund), its predecessor
fund. Effective at the close of business November 5, 1999, the Stagecoach and
Norwest Advantage Funds were reorganized into the Wells Fargo Funds. Performance
shown for the Class A shares of the Fund for periods prior to January 1, 1992,
reflects performance of the shares of the Select Stock Fund of Wells Fargo
Investment Trust for Retirement Programs, a predecessor portfolio with the same
investment objective and policies as the Fund. Performance shown for the
Class B shares of the Fund for the period from January 1, 1992, to January 1,
1995, reflects performance of the Class A shares of the Fund, with expenses of
the Class A shares adjusted to reflect Class B sales charges and expenses.
Performance shown for the Class B shares of the Fund for periods prior to
January 1, 1992, reflects performance of the shares of the predecessor
portfolio, with expenses adjusted to reflect Class B sales charges and expenses.
Performance shown for the Institutional Class shares of the Fund for the period
from January 1, 1992, to September 6, 1996, reflects performance of the Fund's
Class A shares. For periods prior to January 1, 1992, the performance shown
reflects the performance of the shares of the Select Stock Fund of Wells Fargo
Investment Trust for Retirement Programs, a predecessor portfolio with the same
investment objective and policies as the Fund. For Class A shares, the maximum
front-end sales charge is 5.75%. The maximum contingent-deferred sales charge
for Class B shares is 5.00%. Class B share performance including sales charge
assumes the maximum contingent-deferred sales charge for the corresponding time
period. Institutional Class shares are sold without sales charges.
14
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (4.04) 14.40 18.06 16.31 (9.55) 7.84 16.66 15.62
CLASS B (4.43) 13.48 17.21 15.56 (9.21) 8.53 16.99 15.56
INSTITUTIONAL CLASS (3.98) 14.55 18.12 16.34
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.97
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 38.7x
PRICE TO BOOK RATIO 7.44x
MEDIAN MARKET CAP. ($B) 48.4
NUMBER OF HOLDINGS 93
PORTFOLIO TURNOVER 51%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
GENERAL ELECTRIC COMPANY 5.18%
CISCO SYSTEMS INCORPORATED 4.47%
CITIGROUP INCORPORATED 3.43%
EMC CORPORATION 3.15%
AMERICAN INTERNATIONAL GROUP 3.10%
NORTEL NETWORKS CORPORATION 3.01%
AES CORPORATION 2.88%
MICROSOFT CORPORATION 2.81%
PFIZER INCORPORATED 2.40%
INTEL CORPORATION 2.39%
</TABLE>
SECTOR DISTRIBUTION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 35%
Financial 18%
Health Care 9%
Consumer Cyclical 7%
Energy 7%
Consumer Non-Cyclical 6%
Consumer Services 4%
Telecommunications 4%
Industrials 3%
Utilities 3%
Commercial Services 2%
Basic Materials 2%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
GROWTH FUND-CLASS A S&P 500 INDEX GROWTH FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/30/90 $9,425 $10,000 $10,000
10/31/90 $9,476 $9,957 $10,050
11/30/90 $9,514 $10,601 $10,089
12/31/90 $9,626 $10,896 $10,208
1/31/91 $9,991 $11,371 $10,595
2/28/91 $10,365 $12,184 $10,992
3/31/91 $10,486 $12,479 $11,121
4/30/91 $10,524 $12,509 $11,161
5/31/91 $10,954 $13,048 $11,617
6/30/91 $10,421 $12,451 $11,052
7/31/91 $10,954 $13,031 $11,617
8/31/91 $11,225 $13,340 $11,905
9/30/91 $11,113 $13,117 $11,786
10/31/91 $11,310 $13,293 $11,994
11/30/91 $10,823 $12,757 $11,478
12/31/91 $12,011 $14,216 $12,738
1/31/92 $11,955 $13,952 $12,679
2/29/92 $12,180 $14,132 $12,917
3/31/92 $11,940 $13,857 $12,662
4/30/92 $12,260 $14,264 $13,002
5/31/92 $12,420 $14,334 $13,172
6/30/92 $12,123 $14,121 $12,857
7/31/92 $12,700 $14,698 $13,469
8/31/92 $12,454 $14,397 $13,208
9/30/92 $12,640 $14,566 $13,405
10/31/92 $12,877 $14,616 $13,657
11/30/92 $13,362 $15,114 $14,171
12/31/92 $13,626 $15,299 $14,451
1/31/93 $13,970 $15,427 $14,815
2/28/93 $13,675 $15,637 $14,503
3/31/93 $13,946 $15,967 $14,790
4/30/93 $13,611 $15,581 $14,435
5/31/93 $13,927 $15,998 $14,770
6/30/93 $13,666 $16,045 $14,493
7/31/93 $13,567 $15,981 $14,388
8/31/93 $14,261 $16,587 $15,124
9/30/93 $14,257 $16,460 $15,120
10/31/93 $14,744 $16,800 $15,636
11/30/93 $14,396 $16,640 $15,267
12/31/93 $14,777 $16,841 $15,671
1/31/94 $15,348 $17,414 $16,277
2/28/94 $15,107 $16,941 $16,022
3/31/94 $14,243 $16,203 $15,105
4/30/94 $14,414 $16,410 $15,286
5/31/94 $14,404 $16,680 $15,275
6/30/94 $14,077 $16,271 $14,929
7/31/94 $14,511 $16,805 $15,389
8/31/94 $14,975 $17,494 $15,881
9/30/94 $14,787 $17,067 $15,682
10/31/94 $14,909 $17,450 $15,811
11/30/94 $14,453 $16,814 $15,327
12/31/94 $14,733 $17,064 $15,625
1/31/95 $14,807 $17,506 $15,703
2/28/95 $15,517 $18,188 $16,456
3/31/95 $15,848 $18,723 $16,807
4/30/95 $16,078 $19,274 $17,051
5/31/95 $16,822 $20,043 $17,840
6/30/95 $17,228 $20,508 $18,270
7/31/95 $17,733 $21,188 $18,806
8/31/95 $18,006 $21,241 $19,096
9/30/95 $18,624 $22,137 $19,751
10/31/95 $18,044 $22,058 $19,136
11/30/95 $18,762 $23,025 $19,897
12/31/95 $18,992 $23,469 $20,141
1/31/96 $19,410 $24,267 $20,584
2/29/96 $20,158 $24,493 $21,378
3/31/96 $20,203 $24,728 $21,425
4/30/96 $20,919 $25,091 $22,185
5/31/96 $21,469 $25,736 $22,769
6/30/96 $21,003 $25,834 $22,274
7/31/96 $19,701 $24,692 $20,893
8/31/96 $20,313 $25,213 $21,542
9/30/96 $21,357 $26,630 $22,609
10/31/96 $22,036 $27,365 $23,330
11/30/96 $23,479 $29,431 $24,858
12/31/96 $23,117 $28,848 $24,468
1/31/97 $24,567 $30,648 $26,003
2/28/97 $23,884 $30,891 $25,290
3/31/97 $23,034 $29,624 $24,399
4/30/97 $24,042 $31,390 $25,472
5/31/97 $25,626 $33,308 $27,162
6/30/97 $26,209 $34,790 $27,772
7/31/97 $28,456 $37,556 $30,160
8/31/97 $26,761 $35,452 $28,369
9/30/97 $27,848 $37,392 $29,519
10/31/97 $26,958 $36,143 $28,584
11/30/97 $27,379 $37,816 $29,041
12/31/97 $27,521 $38,467 $29,194
1/31/98 $28,012 $38,890 $29,701
2/28/98 $29,610 $41,694 $31,400
3/31/98 $31,017 $43,828 $32,906
4/30/98 $31,241 $44,276 $33,134
5/31/98 $30,750 $43,514 $32,614
6/30/98 $32,273 $45,281 $34,233
7/31/98 $32,062 $44,801 $34,016
8/31/98 $27,508 $38,327 $29,184
9/30/98 $28,820 $40,784 $30,571
10/31/98 $31,226 $44,099 $33,130
11/30/98 $33,309 $46,772 $35,345
12/31/98 $35,563 $49,466 $37,730
1/31/99 $36,902 $51,548 $39,164
2/28/99 $35,677 $49,940 $37,863
3/31/99 $37,432 $51,938 $39,743
4/30/99 $38,527 $53,948 $40,911
5/31/99 $37,285 $52,675 $39,595
6/30/99 $39,491 $55,540 $41,925
7/31/99 $38,363 $53,806 $40,742
8/31/99 $38,412 $53,540 $40,786
9/30/99 $37,334 $52,072 $39,647
10/31/99 $39,523 $55,368 $41,985
11/30/99 $40,313 $56,492 $42,823
12/31/99 $43,064 $59,820 $45,754
1/31/00 $41,080 $56,817 $43,653
2/29/00 $40,837 $55,743 $43,382
3/31/00 $44,505 $61,195 $47,296
4/30/00 $42,746 $59,353 $45,432
5/31/00 $41,586 $58,136 $44,212
6/30/00 $43,139 $59,572 $45,856
7/31/00 $42,671 $58,643 $45,365
8/31/00 $45,385 $62,284 $48,262
9/30/00 $42,709 $58,996 $45,415
</TABLE>
--------------------------------------------------------------------------------
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Growth Fund Class A
and Institutional Class shares since inception with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Class A and Institutional
Class shares and reflects all operating expenses and, for Class A shares,
assumes the maximum initial sales charge of 5.75%.
15
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GROWTH EQUITY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Growth Equity Fund (the Fund) seeks a high level of long-term capital
appreciation with moderate annual return volatility by diversifying its
investments among different equity investment styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management Incorporated
Smith Asset Management
Schroder Investment Management North America
Peregrine Capital Management
FUND MANAGERS
Collectively Managed
INCEPTION DATE
04/30/89
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 25.01%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund outperformed its
benchmark, the S&P 500 Index(2), which returned 13.28%. The Fund's Class A
shares distributed no dividend income and $5.63 per share in capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results. The Fund's one-year performance was attributable to
unusually favorable conditions that may not be sustainable and are not likely
to exist in the future.
The past year was marked by two significant stages. Over the fourth quarter
of 1999 and the first quarter of 2000, growth stocks led the market. Interest
in the technology, media and telecommunications (TMT) sectors was especially
intense, reflecting general euphoria about the Internet's potential. This
trend also made itself felt overseas, as TMT stocks sparked rallies in markets
around the world. The Fund's three component styles -- Large Company Growth,
International and Diversified Small Cap -- all benefited, to varying degrees,
from the growth stock rally over the late fall and winter.
Over the spring and summer, however, growth-oriented stocks came under
pressure. Large cap growth stocks were negatively affected by investors'
concerns about potentially slower economic growth and lower corporate profits,
which created a difficult environment for the Fund's Large Company Growth
style. It did, however, benefit from the good performance of several of its
financial holdings. Stocks in that sector also helped to buoy the Fund's
International style in the face of a general decline in global markets over
the spring and summer. The managers' decision to emphasize Europe over Asia
and the emerging markets was another plus, as was the Fund's exposure to the
thriving healthcare sector. Meanwhile, the two segments of the small cap
market, growth and value, diverged. Growth stocks dropped sharply while
value -- led by interest rate sensitive utilities and financials -- advanced.
Given its slight value orientation, the Diversified Small Cap style benefited
from this trend.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking forward, the managers of the Fund's component portfolios expect
global economic activity to slow due to higher interest rates and high crude
oil prices. They generally believe that these trends will lead investors to
favor relatively defensive issues.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Class A, Class B, Class C and Institutional
Class shares of the Wells Fargo Growth Equity Fund for periods prior to
November 8, 1999, reflects performance of the Class A, Class B, Class C and
Institutional Class shares of the Norwest Advantage Growth Equity Fund, its
predecessor fund. Effective at the close of business November 5, 1999, the
Stagecoach and Norwest Advantage Funds were reorganized into the Wells Fargo
Funds. Performance shown for the Class A shares of the Fund prior to May 2,
1996, reflects the performance of the Institutional Class shares of the Fund,
adjusted for Class A sales charges. Performance shown for the Class B shares of
the Fund prior to May 6, 1996, reflects the performance of the Institutional
Class shares of the Fund, adjusted for Class B sales charges and expenses.
Performance shown for the Class C shares of the Fund prior to October 1, 1998,
reflects the performance of the Institutional Class shares of the Fund, adjusted
for Class C sales charges and expenses. Performance of the Institutional
Class shares of the Fund, prior to November 11, 1994, reflects the performance
of a collective investment fund, adjusted to reflect Institutional
Class expenses. Wells Fargo Bank Minnesota, N.A. (WFB MN), formerly Norwest Bank
Minnesota, N.A., managed the collective investment fund with an investment
objective and principal investment strategy that were substantially similar to
those of the Fund. The performance for the Fund includes performance of its
predecessor collective investment fund for periods before it became a mutual
fund on November 11, 1994. The collective investment fund's performance was
adjusted to reflect the Fund's 1994 estimate of its expense ratio for the first
year of operations as a mutual fund, including any applicable sales load
(without giving effect to any fee waivers or expense reimbursements). The
collective investment fund was not registered under the Investment Company Act
of 1940 ("1940 Act") nor subject to certain investment limitations,
diversification requirements and other restrictions imposed by the 1940 Act or
the Internal Revenue Code, which, if applicable, may have adversely affected the
Fund's performance results. For Class A shares, the maximum front-end sales
charge is 5.75%. The maximum contingent-deferred sales charge for Class B shares
is 5.00%. The maximum contingent-deferred sales charge for Class C shares is
1.00%. Class B and Class C share performance, including sales charge, assumes
the maximum contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
16
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (3.34) 25.01 16.50 18.55 (8.90) 17.82 15.13 17.85
CLASS B (3.73) 24.11 15.64 17.68 (8.54) 19.11 15.41 17.68
CLASS C (3.72) 24.11 15.81 17.76 (4.68) 23.11 15.81 17.76
INSTITUTIONAL CLASS (3.24) 25.32 16.56 18.58
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.92
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 32.3X
PRICE TO BOOK RATIO 5.9X
MEDIAN MARKET CAP. ($B) 24.3
NUMBER OF HOLDINGS 62
PORTFOLIO TURNOVER 75%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
OTC GROWTH FUND 3.56%
BANKAMERICA NT/SA 2.45%
CISCO SYSTEMS INCORPORATED 2.04%
INTEL CORPORATION 1.80%
AMERICAN INTERNATIONAL GROUP 1.73%
PFIZER INCORPORATED 1.72%
GOLDMAN SACHS 1.70%
CHARLES SCHWAB CORPORATION 1.66%
SOLECTRON CORPORATION 1.65%
BUSINESS CLASS PLUS 1.64%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Int'l 30%
Technology 20%
Financial 14%
Health Care 9%
Consumer Cyclical 8%
Commercial Services 7%
Basic Materials 2%
Energy 2%
Consumer Services 2%
Cash 2%
Consumer Non-Cyclical 1%
Industrials 1%
Utilities 1%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO GROWTH WELLS FARGO GROWTH
EQUITY FUND-CLASS A S&P 500 INDEX EQUITY FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/30/90 $9,425 $10,000 $10,000
10/31/90 $9,523 $9,957 $10,104
11/30/90 $10,027 $10,601 $10,639
12/31/90 $10,452 $10,896 $11,089
1/31/91 $11,287 $11,371 $11,975
2/28/91 $12,247 $12,184 $12,994
3/31/91 $12,572 $12,479 $13,339
4/30/91 $12,472 $12,509 $13,233
5/31/91 $13,157 $13,048 $13,960
6/30/91 $12,332 $12,451 $13,085
7/31/91 $13,201 $13,031 $14,007
8/31/91 $13,668 $13,340 $14,502
9/30/91 $13,834 $13,117 $14,678
10/31/91 $14,397 $13,293 $15,275
11/30/91 $13,819 $12,757 $14,662
12/31/91 $15,335 $14,216 $16,270
1/31/92 $15,633 $13,952 $16,587
2/29/92 $15,525 $14,132 $16,472
3/31/92 $14,849 $13,857 $15,755
4/30/92 $14,676 $14,264 $15,572
5/31/92 $14,968 $14,334 $15,881
6/30/92 $14,345 $14,121 $15,220
7/31/92 $14,708 $14,698 $15,606
8/31/92 $14,476 $14,397 $15,359
9/30/92 $14,628 $14,566 $15,520
10/31/92 $14,895 $14,616 $15,804
11/30/92 $15,792 $15,114 $16,755
12/31/92 $16,110 $15,299 $17,093
1/31/93 $16,239 $15,427 $17,230
2/28/93 $15,691 $15,637 $16,648
3/31/93 $16,429 $15,967 $17,431
4/30/93 $16,197 $15,581 $17,185
5/31/93 $16,876 $15,998 $17,906
6/30/93 $16,795 $16,045 $17,819
7/31/93 $17,025 $15,981 $18,063
8/31/93 $18,030 $16,587 $19,130
9/30/93 $18,398 $16,460 $19,521
10/31/93 $18,757 $16,800 $19,902
11/30/93 $18,188 $16,640 $19,297
12/31/93 $19,291 $16,841 $20,468
1/31/94 $19,945 $17,414 $21,162
2/28/94 $19,694 $16,941 $20,896
3/31/94 $18,670 $16,203 $19,809
4/30/94 $18,901 $16,410 $20,054
5/31/94 $18,744 $16,680 $19,887
6/30/94 $18,012 $16,271 $19,110
7/31/94 $18,595 $16,805 $19,729
8/31/94 $19,528 $17,494 $20,720
9/30/94 $19,224 $17,067 $20,396
10/31/94 $19,476 $17,450 $20,665
11/30/94 $18,663 $16,814 $19,801
12/31/94 $19,026 $17,064 $20,186
1/31/95 $18,853 $17,506 $20,003
2/28/95 $19,362 $18,188 $20,544
3/31/95 $20,053 $18,723 $21,277
4/30/95 $20,511 $19,274 $21,762
5/31/95 $20,917 $20,043 $22,193
6/30/95 $21,867 $20,508 $23,201
7/31/95 $23,318 $21,188 $24,740
8/31/95 $23,447 $21,241 $24,878
9/30/95 $24,078 $22,137 $25,547
10/31/95 $23,300 $22,058 $24,722
11/30/95 $23,750 $23,025 $25,198
12/31/95 $23,757 $23,469 $25,206
1/31/96 $24,189 $24,267 $25,664
2/29/96 $24,845 $24,493 $26,361
3/31/96 $25,286 $24,728 $26,829
4/30/96 $26,422 $25,091 $28,034
5/31/96 $26,988 $25,736 $28,635
6/30/96 $26,450 $25,834 $28,063
7/31/96 $24,900 $24,692 $26,419
8/31/96 $25,707 $25,213 $27,276
9/30/96 $26,988 $26,630 $28,635
10/31/96 $26,784 $27,365 $28,418
11/30/96 $28,139 $29,431 $29,856
12/31/96 $28,219 $28,848 $29,941
1/31/97 $29,157 $30,648 $30,936
2/28/97 $28,797 $30,891 $30,554
3/31/97 $27,574 $29,624 $29,257
4/30/97 $28,247 $31,390 $29,961
5/31/97 $30,797 $33,308 $32,676
6/30/97 $32,371 $34,790 $34,346
7/31/97 $34,352 $37,556 $36,448
8/31/97 $33,034 $35,452 $35,040
9/30/97 $35,233 $37,392 $37,383
10/31/97 $33,565 $36,143 $35,603
11/30/97 $33,556 $37,816 $35,603
12/31/97 $33,888 $38,467 $35,955
1/31/98 $34,416 $38,890 $36,504
2/28/98 $36,898 $41,694 $39,149
3/31/98 $38,261 $43,828 $40,584
4/30/98 $38,947 $44,276 $41,324
5/31/98 $37,743 $43,514 $40,035
6/30/98 $38,789 $45,281 $41,156
7/31/98 $37,912 $44,801 $40,225
8/31/98 $31,627 $38,327 $33,557
9/30/98 $32,926 $40,784 $34,935
10/31/98 $34,733 $44,099 $36,852
11/30/98 $36,972 $46,772 $39,228
12/31/98 $39,478 $49,466 $41,887
1/31/99 $40,679 $51,548 $43,161
2/28/99 $38,648 $49,940 $41,006
3/31/99 $39,647 $51,938 $42,066
4/30/99 $41,061 $53,948 $43,566
5/31/99 $40,601 $52,675 $43,078
6/30/99 $43,160 $55,540 $45,782
7/31/99 $42,678 $53,806 $45,281
8/31/99 $42,026 $53,540 $44,591
9/30/99 $41,342 $52,072 $43,852
10/31/99 $43,183 $55,368 $45,817
11/30/99 $45,237 $56,492 $47,997
12/31/99 $49,607 $59,820 $52,660
1/31/00 $47,910 $56,817 $50,859
2/29/00 $50,709 $55,743 $53,842
3/31/00 $53,468 $61,195 $56,797
4/30/00 $51,849 $59,353 $55,079
5/31/00 $49,698 $58,136 $52,811
6/30/00 $52,445 $59,572 $55,739
7/31/00 $51,654 $58,643 $54,914
8/31/00 $54,440 $62,284 $57,883
9/30/00 $51,680 $58,996 $54,955
</TABLE>
--------------------------------------------------------------------------------
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Growth Equity Fund
Class A and Institutional Class shares since inception with the S&P 500 Index.
The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
17
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INDEX FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Index Fund (the Fund) seeks to replicate the total rate of return of the
Standard & Poor's 500 Composite Stock Index(1) (the S&P 500 Index).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
INCEPTION DATE
01/31/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 13.06%(2) for the one-year
period ended September 30, 2000. The Fund underperformed its benchmark, the
S&P 500 Index, which returned 13.28% during the period. The Fund's
Institutional Class shares distributed $0.26 per share in dividend income and
$0.69 per share in capital gains during the period. Please keep in mind that
past performance is no guarantee of future results.
The Fund's objective is to approximate the return of the S&P 500 Index. To
achieve this goal, the Fund invests in all 500 securities that make up the S&P
500 Index in the same weighting as the S&P 500 Index. Differences between the
Fund's performance and that of the S&P 500 Index are due to fund expenses and
the effects of cash positions held by the Fund. A small portion of the Fund's
assets are kept in cash so that the Fund can handle shareholder transactions
without being forced to trade stocks to provide liquidity. Holding cash
minimizes transaction costs, but it can hurt performance. The Fund's managers
strive to minimize the effect of holding cash by hedging the Fund's cash
position with S&P 500 Index futures contracts, which, in effect, give the Fund
a 100% equity position.
The S&P 500 Index experienced dramatic highs and lows over the reporting
period. In late 1999 and early 2000, its performance was driven by a powerful
rally in technology, media and telecommunications stocks. These stocks entered
a sharp correction in March 2000, however, and the volatility persisted
through September. Grappling with a number of factors including higher
interest rates, higher crude oil prices and potentially slower growth in the
technology and telecommunications industries, investors began to favor sectors
that are traditionally considered defensive, such as utilities.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the U.S. economy is indeed slowing, a trend
that historically has led investors to favor defensive old-line and interest
rate sensitive areas of the stock market. As economic growth slows and
inflation fears dissipate, the Fund expects the overall S&P 500 Index to move
to new all-time highs during the next few months. The Fund's managers will buy
and sell securities only to reflect concurrent changes in the underlying
index.
18
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS (3.63) 13.06 21.30 18.95
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.00
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 28.5X
PRICE TO BOOK RATIO 5.2X
MEDIAN MARKET CAP. ($B) 9.3
NUMBER OF HOLDINGS 503
PORTFOLIO TURNOVER 8%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
GENERAL ELECTRIC COMPANY 4.47%
CISCO SYSTEMS INCORPORATED 3.07%
MICROSOFT CORPORATION 2.48%
EXXON MOBIL CORPORATION 2.43%
PFIZER INCORPORATED 2.22%
INTEL CORPORATION 2.19%
CITIGROUP INCORPORATED 1.90%
ORACLE CORPORATION 1.74%
AMERICAN INTERNATIONAL GROUP 1.73%
EMC CORPORATION 1.69%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 30%
Financial 18%
Health Care 11%
Telecommunications 6%
Energy 6%
Consumer Non-Cyclical 6%
Consumer Cyclical 6%
Consumer Services 5%
Basic Materials 4%
Industrials 3%
Utilities 2%
Commercial Services 2%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO INDEX FUND-INSTITUTIONAL CLASS S&P 500 INDEX
<S> <C> <C>
9/30/90 $10,000 $10,000
10/31/90 $9,962 $9,957
11/30/90 $10,605 $10,601
12/31/90 $10,885 $10,896
1/31/91 $11,420 $11,371
2/28/91 $12,232 $12,184
3/31/91 $12,535 $12,479
4/30/91 $12,570 $12,509
5/31/91 $13,099 $13,048
6/30/91 $12,489 $12,451
7/31/91 $13,057 $13,031
8/31/91 $13,335 $13,340
9/30/91 $13,107 $13,117
10/31/91 $13,268 $13,293
11/30/91 $12,720 $12,757
12/31/91 $14,151 $14,216
1/31/92 $13,919 $13,952
2/29/92 $14,109 $14,132
3/31/92 $13,834 $13,857
4/30/92 $14,228 $14,264
5/31/92 $14,314 $14,334
6/30/92 $14,117 $14,121
7/31/92 $14,691 $14,698
8/31/92 $14,382 $14,397
9/30/92 $14,530 $14,566
10/31/92 $14,584 $14,616
11/30/92 $15,068 $15,114
12/31/92 $15,251 $15,299
1/31/93 $15,376 $15,427
2/28/93 $15,590 $15,637
3/31/93 $15,913 $15,967
4/30/93 $15,481 $15,581
5/31/93 $15,913 $15,998
6/30/93 $15,948 $16,045
7/31/93 $15,894 $15,981
8/31/93 $16,458 $16,587
9/30/93 $16,333 $16,460
10/31/93 $16,614 $16,800
11/30/93 $16,437 $16,640
12/31/93 $16,616 $16,841
1/31/94 $17,176 $17,414
2/28/94 $16,751 $16,941
3/31/94 $16,024 $16,203
4/30/94 $16,217 $16,410
5/31/94 $16,451 $16,680
6/30/94 $16,062 $16,271
7/31/94 $16,586 $16,805
8/31/94 $17,265 $17,494
9/30/94 $16,847 $17,067
10/31/94 $17,199 $17,450
11/30/94 $16,567 $16,814
12/31/94 $16,800 $17,064
1/31/95 $17,228 $17,506
2/28/95 $17,880 $18,188
3/31/95 $18,370 $18,723
4/30/95 $18,891 $19,274
5/31/95 $19,621 $20,043
6/30/95 $20,079 $20,508
7/31/95 $20,717 $21,188
8/31/95 $20,763 $21,241
9/30/95 $21,603 $22,137
10/31/95 $21,501 $22,058
11/30/95 $22,434 $23,025
12/31/95 $22,848 $23,469
1/31/96 $23,626 $24,267
2/29/96 $23,816 $24,493
3/31/96 $24,047 $24,728
4/30/96 $24,388 $25,091
5/31/96 $24,999 $25,736
6/30/96 $25,103 $25,834
7/31/96 $23,991 $24,692
8/31/96 $24,475 $25,213
9/30/96 $25,841 $26,630
10/31/96 $26,547 $27,365
11/30/96 $28,548 $29,431
12/31/96 $27,935 $28,848
1/31/97 $29,699 $30,648
2/28/97 $29,928 $30,891
3/31/97 $28,703 $29,624
4/30/97 $30,410 $31,390
5/31/97 $32,256 $33,308
6/30/97 $33,726 $34,790
7/31/97 $36,364 $37,556
8/31/97 $34,339 $35,452
9/30/97 $36,201 $37,392
10/31/97 $34,984 $36,143
11/30/97 $36,585 $37,816
12/31/97 $37,204 $38,467
1/31/98 $37,612 $38,890
2/28/98 $40,314 $41,694
3/31/98 $42,363 $43,828
4/30/98 $42,790 $44,276
5/31/98 $42,037 $43,514
6/30/98 $43,742 $45,281
7/31/98 $43,270 $44,801
8/31/98 $36,995 $38,327
9/30/98 $39,353 $40,784
10/31/98 $42,545 $44,099
11/30/98 $45,102 $46,772
12/31/98 $47,743 $49,466
1/31/99 $49,647 $51,548
2/28/99 $48,103 $49,940
3/31/99 $50,016 $51,938
4/30/99 $51,930 $53,948
5/31/99 $50,682 $52,675
6/30/99 $53,493 $55,540
7/31/99 $51,829 $53,806
8/31/99 $51,586 $53,540
9/30/99 $50,174 $52,072
10/31/99 $53,343 $55,368
11/30/99 $54,399 $56,492
12/31/99 $57,572 $59,820
1/31/00 $54,666 $56,817
2/29/00 $53,631 $55,743
3/31/00 $58,864 $61,195
4/30/00 $57,088 $59,353
5/31/00 $55,910 $58,136
6/30/00 $57,269 $59,572
7/31/00 $56,404 $58,643
8/31/00 $59,890 $62,284
9/30/00 $56,727 $58,996
</TABLE>
--------------------------------------------------------------------------------
(1) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Institutional Class shares of the Wells Fargo Index Fund
for periods prior to November 8, 1999, reflects performance of the Institutional
Class shares of the Norwest Advantage Index Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds. Performance of the
Institutional Class shares of the Fund, prior to November 11, 1994, reflects
performance of a collective investment fund adjusted to reflect Institutional
Class expenses. Wells Fargo Bank Minnesota, N.A. (WFB MN), formerly Norwest Bank
Minnesota, N.A., managed the collective investment fund with an investment
objective and principal investing strategy that were substantially similar to
those of the Fund. The performance for the Fund includes performance of its
predecessor collective investment fund for periods before it became a mutual
fund on November 11, 1994. The collective investment fund's performance was
adjusted to reflect the Fund's 1994 estimate of its expense ratio for the first
year of operations as a mutual fund, including any applicable sales load
(without giving effect to any fee waivers or expense reimbursements). The
collective investment fund was not registered under the Investment Company Act
of 1940 ("1940 Act") nor subject to certain investment limitations,
diversification requirements, and other restrictions imposed by the 1940 Act or
the Internal Revenue Code which, if applicable, may have adversely affected the
performance results. Institutional Class shares are sold without sales charges.
(3) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Index Fund
Institutional Class shares since inception with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Institutional Class shares and
reflects all operating expenses.
19
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INTERNATIONAL FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The International Fund (the Fund) seeks long-term capital appreciation by
investing in high-quality companies based outside the United States.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Schroder Investment Management North America
FUND MANAGER
Michael Perelstein
INCEPTION DATE
07/15/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 15.81%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund substantially
outperformed its benchmark, the MSCI EAFE Index(2), which returned 3.18%
during the period. The Fund's Class A shares distributed no dividend income
and $2.39 per share in capital gains during the period. Please keep in mind
that past performance is no guarantee of future results.
All facets of the Fund's investment process -- stock selection, industry
allocation, currency management and country risk management -- contributed to
the strong performance over the reporting period. The Fund's strategy of
emphasizing Europe over Asia was rewarded. The stock markets of Japan and
neighboring Asian countries posted a loss over the year, while European
markets rose. In addition, the Fund benefited from the manager's decision to
gradually exit global emerging markets and move into developed markets. The
Fund was able to lock in gains from the emerging markets through the first
quarter of 2000 and avoid most of the disappointments from this area over the
spring and summer.
In addition, the Fund started the reporting period with an overweighting in
technology, telecommunications and media stocks. These sectors significantly
outperformed all other areas of the market in late 1999 and early 2000,
reaching an extreme in March. The Fund slashed its exposure to
telecommunications and media stocks due to concerns that many of them had
reached full valuation. The Fund rotated into growth sectors that appeared
more reasonably valued, such as the pharmaceutical and financial sectors. Due
to this substantial and timely sector switch, the Fund was able to lock in
substantial gains against the benchmark during the past year.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking ahead, the Fund expects slower economic growth (particularly in
Asia), with investors targeting stocks with tangible earnings performance. In
light of these factors, the Fund's manager believes that the Fund will
continue to be well-positioned. The Fund's manager expects Europe to be
moderately sheltered from the expected global slowdown, as the region enjoys
the benefit of an extremely competitive currency and the resultant export
advantage. Historically, emerging markets do not perform well in an
environment of slow global growth. Therefore, over the next year, the Fund's
manager expects emerging markets to underperform developed markets. From a
sector perspective, the Fund's manager believes that investors will continue
to rotate away from the telecommunications and technology sectors into areas
such as pharmaceuticals and consumer brands -- two sectors the Fund is
currently emphasizing.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Class A, Class B and Institutional Class shares of
the Wells Fargo International Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage International Fund, its predecessor fund. Effective at the
close of business November 5, 1999, the Stagecoach and Norwest Advantage Funds
were reorganized into the Wells Fargo Funds. Performance shown for the Class A
shares of the Fund prior to April 12, 1995, reflects the performance of the
Institutional Class shares of the Fund, adjusted to reflect Class A sales
charges. Performance shown for the Class B shares of the Fund prior to May 12,
1995, reflects the performance of the Institutional Class shares of the Fund,
adjusted to reflect Class B sales charges and expenses. Performance of the
Institutional Class shares of the Fund prior to November 11, 1994, reflects the
performance of a collective investment fund, adjusted to reflect Institutional
Class expenses. Wells Fargo Bank Minnesota, N.A (WFB MN), formerly Norwest Bank
Minnesota, N.A., managed the collective investment fund with an investment
objective and principal investment strategy that were substantially similar to
those of the Fund. The performance for the Fund includes performance of its
predecessor collective investment fund for periods before it became a mutual
fund on November 11, 1994. The collective investment fund's performance was
adjusted to reflect the Fund's 1994 estimate of its expense ratio for the first
year of operations as a mutual fund, including anyapplicable sales load (without
giving effect to any fee waivers or expense reimbursements). The collective
investment fund was not registered under the Investment Company Act of 1940
("1940 Act") nor subject to certain investment limitations, diversification
requirements and other restrictions imposed by the 1940 Act or the Internal
Revenue Code which, if applicable, may have adversely affected the performance
results. For Class A shares, the maximum front-end sales charge is 5.75%. The
maximum contingent-deferred sales charge for Class B shares is 5.00%. Class B
share performance including sales charge assumes the maximum contingent-deferred
sales charge for the corresponding time period. Institutional Class shares are
sold without sales charges.
20
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (7.92) 15.81 9.92 10.71 (13.22) 9.15 8.63 10.05
CLASS B (8.32) 14.85 9.07 9.88 (12.91) 9.85 8.78 9.88
INSTITUTIONAL CLASS (7.88) 15.98 9.94 10.73
BENCHMARK
MSCI EAFE INDEX (11.71) 3.18 8.58 9.63
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.80
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 28.44X
PRICE TO BOOK RATIO 2.93X
MEDIAN MARKET CAP. ($B) 18.4
NUMBER OF HOLDINGS 79
PORTFOLIO TURNOVER 124%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
NOVARTIS AG 4.09%
ING GROEP NV 3.97%
E.ON AG 3.26%
VODAFONE GROUP PLC 3.04%
ERICSSON LM-B SHS 2.79%
UBS AG 2.75%
GLAXO WELLCOME PLC 2.72%
DEUTSCHE BANK 2.56%
ENDESA SA 2.52%
KINGFISHER 2.17%
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Continental Europe 48%
United Kingdom 20%
Japan 16%
United States 11%
Canada 4%
Southeast Asia 1%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financials 21%
Cash 12%
Health Care 11%
Industrials 10%
Information Technology 10%
Consumer Discretionary 10%
Telecommunication Services 8%
Utilities 6%
Consumer Staples 4%
Energy 4%
Materials 3%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
INTERNATIONAL FUND-CLASS A MSCI EAFE INDEX INTERNATIONAL FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/90 $9,425 $10,000 $10,000
10/90 $10,550 $11,558 $11,194
11/90 $10,062 $10,876 $10,676
12/90 $10,078 $11,053 $10,693
1/91 $10,540 $11,410 $11,183
2/91 $11,171 $12,634 $11,853
3/91 $10,509 $11,876 $11,150
4/91 $10,605 $11,992 $11,252
5/91 $10,576 $12,118 $11,221
6/91 $10,027 $11,227 $10,639
7/91 $10,480 $11,778 $11,120
8/91 $10,220 $11,539 $10,844
9/91 $10,691 $12,190 $11,343
10/91 $10,614 $12,363 $11,261
11/91 $10,107 $11,786 $10,724
12/91 $10,554 $12,395 $11,198
1/92 $10,573 $12,131 $11,218
2/92 $10,438 $11,697 $11,075
3/92 $10,109 $10,925 $10,725
4/92 $10,430 $10,976 $11,067
5/92 $11,011 $11,711 $11,683
6/92 $10,740 $11,155 $11,396
7/92 $10,430 $10,870 $11,066
8/92 $10,531 $11,551 $11,173
9/92 $10,352 $11,324 $10,984
10/92 $10,075 $10,729 $10,690
11/92 $10,010 $10,830 $10,620
12/92 $10,126 $10,887 $10,744
1/93 $10,107 $10,885 $10,724
2/93 $10,325 $11,214 $10,955
3/93 $10,900 $12,192 $11,565
4/93 $11,619 $13,349 $12,328
5/93 $11,725 $13,631 $12,440
6/93 $11,725 $13,418 $12,405
7/93 $12,095 $13,888 $12,833
8/93 $12,874 $14,638 $13,659
9/93 $13,007 $14,308 $13,800
10/93 $13,614 $14,749 $14,445
11/93 $13,116 $13,460 $13,916
12/93 $14,708 $14,432 $15,605
1/94 $15,530 $15,651 $16,478
2/94 $15,193 $15,607 $16,120
3/94 $14,515 $14,935 $15,400
4/94 $14,957 $15,568 $15,870
5/94 $14,941 $15,479 $15,853
6/94 $14,778 $15,698 $15,680
7/94 $15,019 $15,848 $15,935
8/94 $15,634 $16,224 $16,588
9/94 $15,271 $15,713 $16,203
10/94 $15,530 $16,236 $16,478
11/94 $14,940 $15,455 $15,852
12/94 $14,816 $15,552 $15,720
1/95 $13,976 $14,955 $14,829
2/95 $13,932 $14,912 $14,782
3/95 $14,719 $15,842 $15,617
4/95 $15,153 $16,438 $16,086
5/95 $15,453 $16,242 $16,405
6/95 $15,506 $15,958 $16,471
7/95 $16,294 $16,952 $17,306
8/95 $15,781 $16,307 $16,762
9/95 $16,241 $16,624 $17,250
10/95 $15,922 $16,177 $16,903
11/95 $16,019 $16,627 $17,015
12/95 $16,546 $17,297 $17,574
1/96 $16,888 $17,368 $17,938
2/96 $17,051 $17,427 $18,100
3/96 $17,357 $17,797 $18,434
4/96 $17,816 $18,314 $18,922
5/96 $17,852 $17,977 $18,960
6/96 $17,987 $18,078 $19,094
7/96 $17,420 $17,550 $18,492
8/96 $17,528 $17,589 $18,607
9/96 $17,888 $18,057 $18,989
10/96 $17,492 $17,872 $18,568
11/96 $18,158 $18,584 $19,285
12/96 $18,150 $18,344 $19,267
1/97 $17,941 $17,702 $19,045
2/97 $18,314 $17,992 $19,440
3/97 $18,414 $18,057 $19,546
4/97 $18,559 $18,153 $19,711
5/97 $19,697 $19,335 $20,907
6/97 $20,606 $20,400 $21,873
7/97 $21,016 $20,730 $22,307
8/97 $19,187 $19,182 $20,367
9/97 $20,233 $20,256 $21,477
10/97 $18,905 $18,698 $20,068
11/97 $18,559 $18,508 $19,701
12/97 $18,706 $18,669 $19,856
1/98 $19,367 $19,522 $20,558
2/98 $20,406 $20,775 $21,660
3/98 $21,232 $21,415 $22,537
4/98 $21,729 $21,588 $23,073
5/98 $21,903 $21,489 $23,249
6/98 $21,765 $21,657 $23,112
7/98 $21,876 $21,882 $23,229
8/98 $19,321 $19,175 $20,509
9/98 $18,752 $18,592 $19,905
10/98 $19,633 $20,535 $20,840
11/98 $20,458 $21,593 $21,715
12/98 $21,064 $22,450 $22,358
1/99 $21,424 $22,389 $22,741
2/99 $21,140 $21,861 $22,449
3/99 $21,718 $22,779 $23,063
4/99 $22,373 $23,706 $23,757
5/99 $21,605 $22,490 $22,942
6/99 $22,344 $23,372 $23,727
7/99 $22,932 $24,073 $24,351
8/99 $22,752 $24,167 $24,149
9/99 $22,506 $24,416 $23,888
10/99 $23,577 $25,331 $25,035
11/99 $24,886 $26,210 $26,423
12/99 $27,342 $28,564 $29,038
1/00 $26,822 $26,750 $28,488
2/00 $28,276 $27,470 $30,041
3/00 $28,307 $28,535 $30,074
4/00 $27,227 $27,034 $28,928
5/00 $27,404 $26,375 $29,127
6/00 $28,380 $27,406 $30,151
7/00 $27,767 $26,258 $29,501
8/00 $27,290 $26,486 $28,994
9/00 $26,064 $25,196 $27,706
</TABLE>
--------------------------------------------------------------------------------
(2) The Morgan Stanley Capital International Europe, Australasia and Far East
(MSCI EAFE) Index does not incur expenses and is not available directly for
investment. Had this index incurred operating expenses, its performance would
have been lower.
(3) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo International Fund
Class A and Institutional Class shares since inception with the MSCI EAFE Index.
The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
21
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The International Equity Fund (the Fund) seeks total return, with an emphasis
on capital appreciation over the long term by investing primarily in equity
securities of non-U.S. companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Katherine Schapiro, CFA
Stacey Ho, CFA
INCEPTION DATE
09/24/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 21.65%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund substantially
outperformed its benchmark, the MSCI EAFE Index(2), which returned 3.18%
during the period. The Fund's Class A shares distributed $0.13 per share in
dividend income and $0.08 per share in capital gains during the period. Please
keep in mind that past performance is no guarantee of future results.
The Fund was well-positioned to benefit from the dominance of technology,
media and telecommunications stocks over the first six months of the reporting
period. During this period, the Fund emphasized leading companies in wireless
communications, semiconductor manufacturing, consumer electronics and
information services sectors.
At the beginning of 2000, the Fund began to eliminate high-risk,
high-valuation new economy stocks and increased the Fund's holdings in the
more value-oriented food, pharmaceutical, energy and financial sectors. This
shift contributed to the Fund's favorable performance over the summer, as
investors showed a clear preference for more defensive-oriented sectors such
as banks and health care. Weakness among all major currencies, including the
euro, pound and yen, did, however, put a damper on the Fund's
currency-adjusted returns.
As a result of reducing the Fund's technology weighting over the reporting
period, the Fund's weighting in Japan declined.The de-emphasis on Japan also
reflected the lack of progress on economic reforms and weak domestic growth
prospects in that country. In Germany, meanwhile, the managers believe the
outlook for many companies has been boosted by recently passed tax reform. In
anticipation of the improving backdrop, the managers increased the Fund's
investments in German companies over the course of the year.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The combination of rising U.S. and European interest rates and higher oil
prices has led investors to reassess economic and earnings growth forecasts
for the fourth quarter of 2000 and first quarter of 2001. Although some
investors are concerned that higher oil prices could spark inflation, Fund
managers believe that pricing power is so limited in today's global
environment that the actual impact could be deflationary. Given recent signs
of decelerating economic growth in the U.S., Europe and Asia, they also think
that interest rates are unlikely to be raised in the near future.
The Fund's managers are forecasting slower global growth for the coming year,
with resultant lower earnings for large companies worldwide. Nevertheless,
they continue to have a positive outlook for international markets. European
companies are benefiting from the restructuring programs begun several years
ago and are enjoying the advantages of a competitive currency for the first
time in nearly a decade. Japanese and other Asian companies are just beginning
the reform process. The Fund's managers believe that changes to retirement and
savings programs in both regions, as well as the introduction of a shareholder
culture for retail and institutional investors, bode well for increasing
interest in both local and global equity markets.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B and Class C shares of the Wells Fargo
International Equity Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Class C shares of the Stagecoach
International Equity Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Stagecoach and Norwest Advantage Funds were
reorganized into the Wells Fargo Funds. Performance shown for the Class C shares
for periods prior to April 1, 1998, reflects performance of the Class B shares
of the Stagecoach Fund, adjusted for Class C sales charges and expenses.
Performance shown for the Institutional Class shares for periods prior to
November 8, 1999, reflects performance of the Class A shares, adjusted to
reflect the expenses of the Institutional Class shares. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. The maximum contingent-deferred sales charge
for Class C shares is 1.00%. Class B and Class C share performance, including
sales charge, assumes the maximum contingent-deferred sales charge for the
corresponding time period. Institutional Class shares are sold without sales
charges.
22
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------------- -------------------------------------------
6-Month* 1-Year Since Inception Since 10/01/97 6-Month* 1-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A (13.51) 21.65 15.52 (18.46) 14.70 13.27
CLASS B (13.90) 20.65 14.71 (18.20) 15.65 13.95
CLASS C (13.81) 20.72 14.73 (14.67) 19.72 14.73
INSTITUTIONAL CLASS** (13.41) 22.17 15.68
BENCHMARK
MSCI EAFE INDEX (11.71) 3.18 7.39(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
** SHARE CLASS COMMENCED OPERATIONS ON NOVEMBER 8, 1999. TOTAL RETURN FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 2000, IS BASED ON THE CLASS A SHARE
ADJUSTED FOR INSTITUTIONAL CLASS EXPENSES.
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 25.14x
PRICE TO BOOK RATIO 3.77x
MEDIAN MARKET CAP. ($B) 28.9
NUMBER OF HOLDINGS 70
PORTFOLIO TURNOVER 15%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AMVESCAP PLC 3.14%
ROYAL BANK SCOTLAND PLC 2.87%
ELAN CORP PLC 2.70%
RYANAIR HOLDINGS PLC 2.62%
GROUPE DANONE ADR 2.38%
KONINKLIJKE PHILIPS ELECTRONICS, NV 2.33%
AXA UAP 2.32%
TOTAL FINA ELF 2.09%
ARM HOLDINGS PLC ADR 2.08%
JULIUS BAER HOLDING LIMITED 2.02%
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Continental Europe 40%
United Kingdom 16%
Japan 14%
Emerging Markets 10%
Southeast Asia 8%
United States 8%
Australia/N.Z. 4%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Services 27%
Finance 25%
Consumer Goods 19%
Capital Equipment 17%
Energy 9%
Basic Materials 2%
Multi-Industry 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
INTERNATIONAL INTERNATIONAL
EQUITY FUND-CLASS A MSCI EAFE INDEX EQUITY FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/97 $9,425 $10,000 $10,000
9/97 $9,510 $10,140 $10,090
10/97 $8,954 $9,360 $9,500
11/97 $9,029 $9,265 $9,580
12/97 $9,116 $9,345 $9,672
1/98 $9,323 $9,772 $9,892
2/98 $9,955 $10,400 $10,562
3/98 $10,417 $10,720 $11,052
4/98 $10,605 $10,807 $11,252
5/98 $10,596 $10,757 $11,242
6/98 $10,746 $10,841 $11,402
7/98 $10,869 $10,954 $11,532
8/98 $9,135 $9,599 $9,692
9/98 $8,823 $9,307 $9,362
10/98 $9,606 $10,280 $10,192
11/98 $10,162 $10,809 $10,782
12/98 $10,577 $11,238 $11,222
1/99 $10,756 $11,208 $11,412
2/99 $10,567 $10,943 $11,212
3/99 $10,897 $11,403 $11,562
4/99 $11,312 $11,867 $12,002
5/99 $10,926 $11,258 $11,592
6/99 $11,548 $11,700 $12,252
7/99 $11,906 $12,051 $12,632
8/99 $11,802 $12,098 $12,522
9/99 $11,972 $12,222 $12,702
10/99 $12,670 $12,681 $13,442
11/99 $14,065 $13,121 $14,933
12/99 $15,988 $14,299 $17,002
1/00 $15,310 $13,391 $16,286
2/00 $16,638 $13,751 $17,697
3/00 $16,839 $14,285 $17,922
4/00 $15,807 $13,533 $16,828
5/00 $14,822 $13,203 $15,774
6/00 $15,606 $13,719 $16,613
7/00 $15,291 $13,144 $16,286
8/00 $15,568 $13,259 $16,582
9/00 $14,564 $12,613 $15,518
</TABLE>
--------------------------------------------------------------------------------
(2) The Morgan Stanley Capital International Europe, Australasia and Far East
Index (MSCI EAFE) does not incur expenses and is not available directly for
investment. Had this index incurred operating expenses, its performance would
have been lower.
(3) The published return closest to the Fund's inception date of 09/24/97.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change
(6) The chart compares the performance of the Wells Fargo International Equity
Fund Class A and Institutional Class shares since inception with the MSCI EAFE
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
23
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Large Company Growth Fund (the Fund) seeks long-term capital appreciation
by investing primarily in large, high-quality domestic companies that the
Advisor believes have superior growth potential.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Peregrine Capital Management
FUND MANAGERS
John Dale, CFA
Gary Nussbaum, CFA
INCEPTION DATE
12/31/82
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 32.50%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund significantly
outperformed its benchmark, the S&P 500 Index(2) (the S&P), which returned
13.28% during the period. The Fund's Class A shares distributed no dividend
income and $1.60 per share in capital gains during the period. Please keep in
mind that past performance is no guarantee of future results.
Over the past 12 months, U.S. stock markets demonstrated strong,
above-average returns. Excellent economic growth with low inflation allowed
equities to surge ahead during the period. Investors in growth-oriented
companies, in particular, benefited from earnings growth that outpaced the
average non-growth company.
Individual holdings that helped drive the Fund's performance included Nokia,
EMC, Goldman Sachs, AIG, Paychex and Fiserv. Holdings having a negative impact
included Microsoft, Staples, IMS Health and First Data.
Among the Fund's portfolio purchases during the period were Costco Wholesale,
Oracle, America Online and JDS Uniphase. The managers sold the Fund's
positions in Franklin Resources, Gartner Group, Lucent and Disney.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers expect the S&P earnings growth to be in line with
underlying sales growth going forward -- which suggests a 6% to 8% annual
rate. The Fund managers believe that this scenario will create a positive
backdrop for the stock market.
However, investors possibly need to readjust their definition of normal. Good
profit growth with no collapse of price-to-earnings ratios will, in the Fund
managers' opinion, set the stage for a healthy long-term stock market. Many
market participants have not even witnessed trend-line economic and profit
growth, much less a potential economic downturn. While this transition may be
choppy, the Fund's managers believe that true long-term investors will be
rewarded.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Class A, Class B and Institutional Class shares of
the Wells Fargo Large Company Growth Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Large Company Growth Fund, its predecessor fund. Effective
at the close of business November 5, 1999, the Stagecoach and Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. Performance shown for the
Class A shares of the Fund prior to October 6, 1998, reflects the performance of
the Institutional Class shares of the Fund, adjusted to reflect Class A sales
charges. Performance shown for the Class B shares of the Fund prior to October
1, 1998, reflects the performance of the Institutional Class shares of the Fund,
adjusted to reflect Class B sales charges and expenses. Performance shown for
the Class C shares for periods prior to November 8, 1999, reflects performance
of the Class B shares, adjusted for Class C sales charges and expenses.
Performance of the Institutional Class shares of the Fund, prior to
November 11, 1994, reflects the performance of a collective investment fund,
adjusted to reflect Institutional Class expenses. Wells Fargo Bank Minnesota,
N.A. (WFB MN), formerly Norwest Bank Minnesota, N.A., managed the collective
investment fund with an investment objective and principal investment strategy
that were substantially similar to those of the Fund. The performance for the
Fund includes performance of its predecessor collective investment fund for
periods before it became a mutual fund on November 11, 1994. The collective
investment fund's performance was adjusted to reflect the Fund's 1994 estimate
of its expense ratio for the first year of operations as a mutual fund,
including any applicable sales load (without giving effect to any fee waivers or
expense reimbursements). The collective investment fund was not registered under
the Investment Company Act of 1940 ("1940 Act") nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act or the Internal Revenue Code, which, if applicable, may
have adversely affected the Fund's performance results. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. The maximum contingent-deferred sales charge
for Class C shares is 1.00%. Class B and Class C share performance, including
sales charge, assumes the maximum contingent-deferred sales charge for the
corresponding time period. Institutional Class shares are sold without sales
charges.
24
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A (4.43) 32.50 27.24 23.47 (9.93) 24.88 25.74 22.74
CLASS B (4.70) 31.75 26.41 22.61 (9.46) 26.75 26.25 22.61
CLASS C (4.68) 31.77 26.41 22.61 (5.63) 30.77 26.41 22.61
INSTITUTIONAL CLASS (4.34) 32.74 27.33 23.51
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.22
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 57x
PRICE TO BOOK RATIO 12x
MEDIAN MARKET CAP. ($B) 48.9
NUMBER OF HOLDINGS 34
PORTFOLIO TURNOVER 9%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS INCORPORATED 6.52%
INTEL CORPORATION 5.74%
AMERICAN INTERNATIONAL GROUP 5.53%
PFIZER, INCORPORATED 5.49%
GOLDMAN SACHS 5.43%
CHARLES SCHWAB CORPORATION 5.31%
SOLECTRON CORPORATION 5.26%
MEDTRONIC, INCORPORATED 5.07%
EMC CORPORATION 4.82%
HOME DEPOT, INCORPORATED 4.69%
</TABLE>
SECTOR DISTRIBUTION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 37%
Financial 20%
Commercial Services 16%
Health Care 15%
Consumer Cyclical 8%
Cash 2%
Consumer Non-Cyclical 1%
Energy 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
LARGE COMPANY LARGE COMPANY
GROWTH FUND-CLASS A S&P 500 INDEX GROWTH FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
9/90 $9,425 $10,000 $10,000
10/90 $9,202 $9,957 $9,764
11/90 $10,010 $10,601 $10,621
12/90 $10,288 $10,896 $10,916
1/91 $11,304 $11,371 $11,994
2/91 $12,241 $12,184 $12,988
3/91 $12,846 $12,479 $13,630
4/91 $12,737 $12,509 $13,515
5/91 $13,775 $13,048 $14,615
6/91 $13,085 $12,451 $13,884
7/91 $14,114 $13,031 $14,975
8/91 $14,714 $13,340 $15,612
9/91 $14,294 $13,117 $15,167
10/91 $14,924 $13,293 $15,835
11/91 $15,038 $12,757 $15,955
12/91 $17,185 $14,216 $18,234
1/92 $16,810 $13,952 $17,837
2/92 $16,712 $14,132 $17,732
3/92 $16,167 $13,857 $17,154
4/92 $15,903 $14,264 $16,873
5/92 $16,190 $14,334 $17,178
6/92 $15,443 $14,121 $16,386
7/92 $16,187 $14,698 $17,175
8/92 $15,788 $14,397 $16,751
9/92 $16,055 $14,566 $17,035
10/92 $16,434 $14,616 $17,436
11/92 $17,503 $15,114 $18,571
12/92 $17,503 $15,299 $18,571
1/93 $17,368 $15,427 $18,428
2/93 $16,677 $15,637 $17,694
3/93 $17,281 $15,967 $18,335
4/93 $15,813 $15,581 $16,777
5/93 $16,588 $15,998 $17,601
6/93 $16,376 $16,045 $17,375
7/93 $16,524 $15,981 $17,533
8/93 $17,131 $16,587 $18,177
9/93 $17,292 $16,460 $18,348
10/93 $17,551 $16,800 $18,622
11/93 $17,087 $16,640 $18,130
12/93 $17,440 $16,841 $18,504
1/94 $18,079 $17,414 $19,182
2/94 $17,909 $16,941 $19,002
3/94 $17,111 $16,203 $18,155
4/94 $17,008 $16,410 $18,046
5/94 $17,173 $16,680 $18,221
6/94 $16,198 $16,271 $17,187
7/94 $17,006 $16,805 $18,043
8/94 $17,748 $17,494 $18,832
9/94 $17,431 $17,067 $18,494
10/94 $17,826 $17,450 $18,914
11/94 $17,072 $16,814 $18,114
12/94 $17,254 $17,064 $18,307
1/95 $17,607 $17,506 $18,682
2/95 $18,047 $18,188 $19,148
3/95 $18,582 $18,723 $19,716
4/95 $19,070 $19,274 $20,234
5/95 $19,662 $20,043 $20,862
6/95 $21,087 $20,508 $22,374
7/95 $22,119 $21,188 $23,469
8/95 $22,320 $21,241 $23,682
9/95 $23,266 $22,137 $24,686
10/95 $22,549 $22,058 $23,925
11/95 $23,008 $23,025 $24,412
12/95 $22,298 $23,469 $23,659
1/96 $22,886 $24,267 $24,283
2/96 $23,958 $24,493 $25,420
3/96 $24,227 $24,728 $25,706
4/96 $25,221 $25,091 $26,761
5/96 $26,022 $25,736 $27,611
6/96 $25,675 $25,834 $27,242
7/96 $24,247 $24,692 $25,727
8/96 $24,507 $25,213 $26,003
9/96 $26,785 $26,630 $28,419
10/96 $26,572 $27,365 $28,194
11/96 $28,261 $29,431 $29,986
12/96 $27,897 $28,848 $29,600
1/97 $30,134 $30,648 $31,973
2/97 $29,453 $30,891 $31,250
3/97 $27,363 $29,624 $29,032
4/97 $29,501 $31,390 $31,302
5/97 $31,728 $33,308 $33,665
6/97 $33,400 $34,790 $35,439
7/97 $36,483 $37,556 $38,710
8/97 $34,471 $35,452 $36,574
9/97 $36,872 $37,392 $39,122
10/97 $35,481 $36,143 $37,647
11/97 $36,571 $37,816 $38,803
12/97 $37,201 $38,467 $39,472
1/98 $38,178 $38,890 $40,509
2/98 $41,205 $41,694 $43,720
3/98 $42,267 $43,828 $44,846
4/98 $43,370 $44,276 $46,017
5/98 $41,972 $43,514 $44,534
6/98 $45,797 $45,281 $48,593
7/98 $45,892 $44,801 $48,693
8/98 $38,231 $38,327 $40,564
9/98 $41,825 $40,784 $44,378
10/98 $44,891 $44,099 $47,634
11/98 $49,155 $46,772 $52,172
12/98 $55,047 $49,466 $58,421
1/99 $59,533 $51,548 $63,198
2/99 $57,027 $49,940 $60,542
3/99 $60,564 $51,938 $64,304
4/99 $60,816 $53,948 $64,589
5/99 $58,695 $52,675 $62,332
6/99 $63,858 $55,540 $67,839
7/99 $60,736 $53,806 $64,544
8/99 $60,887 $53,540 $64,703
9/99 $58,563 $52,072 $62,252
10/99 $63,615 $55,368 $67,622
11/99 $65,939 $56,492 $70,108
12/99 $73,190 $59,820 $77,821
1/00 $71,307 $56,817 $75,846
2/00 $72,641 $55,743 $77,272
3/00 $81,194 $61,195 $86,388
4/00 $78,050 $59,353 $83,045
5/00 $72,848 $58,136 $77,529
6/00 $78,454 $59,572 $83,513
7/00 $78,702 $58,643 $83,782
8/00 $83,418 $62,284 $88,818
9/00 $77,595 $58,996 $82,636
</TABLE>
--------------------------------------------------------------------------------
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(3) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Large Company Growth
Fund Class A and Institutional Class shares since inception with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
25
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Small Cap Growth Fund (the Fund) seeks long-term capital appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Tom Zeifang, CFA
Chris Greene
INCEPTION DATE
11/01/94
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 81.03%(1) for the one-year period ended
September 30, 2000, excluding sales charges. The Fund significantly
outperformed its benchmark, the Russell 2000 Growth Index(2), which returned
29.67% during the period. The Fund's Class A shares distributed no dividend
income and $2.56 per share in capital gains during the period. Please keep in
mind that past performance is no guarantee of future results. The Fund's
one-year performance was attributable, to a large degree, to unusually
favorable conditions that may not be sustainable and are not likely to exist
in the future.
Driven by the technology and telecommunications sectors, small cap growth
stocks performed exceptionally well in late 1999 and early 2000. When
sentiment toward technology and telecommunications cooled in the spring and
summer, the market segments faced considerable pressure that persisted over
the rest of the reporting period.
The Fund's outperformance over the year was due, in part, to excellent stock
selection. Among its best performing stocks were MMC Networks, Cacheflow,
Alteon Websystems, Compucredit, SEI Investments and Administaff.
The Fund managers believe that the fundamental backdrop in growth segments,
such as personal computers, telecommunications services, dot coms and
semiconductors, appears to have weakened throughout 2000. They remain
confident, however, that rotation within subsectors and good bottom-up stock
picking can generate solid excess return despite the mixed overall
environment. The managers continue to have a fundamentally bullish outlook on
companies in the Fund's focus subsegments of specialty pharmaceuticals,
natural gas, business-to-business infrastructure, wireline communications,
outsourced health care and certain financial segments, such as credit card
companies.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the small cap market is undergoing a
transition in which fundamentally solid companies are being separated from
me-too start-up companies. The Fund managers believe that the fundamental
strategy of remaining well diversified across all growth segments allows the
Fund to concentrate on the best companies within each category. Although
volatility is a fact of life in the small cap growth asset class, the Fund
managers remain confident that the segment offers excellent opportunities to
generate increased returns for the Fund over the long run.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through November 5, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Small Cap Growth Fund for periods prior to November 8,
1999, reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Stagecoach Small Cap Fund (the accounting survivor of a
merger of the Stagecoach Small Cap Fund, the Stagecoach Strategic Growth Fund
and the Norwest Advantage Small Company Stock Fund), its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds. Performance shown
for the Class A shares of the Fund for periods prior to September 16, 1996,
reflects performance of the shares of the Small Capitalization Growth Fund for
BRP Employee Retirement Plans (an unregistered bank collective investment fund),
a predecessor portfolio with the same investment objective and policies as the
Fund. Performance shown for the Class B shares of the Fund for periods prior to
September 16, 1996, reflects performance of the shares of the predecessor
portfolio, with expenses adjusted to reflect Class B sales charges and expenses.
Performance shown for the Class C shares of the Fund reflects the performance of
the Class B shares, which as discussed above, reflects performance of the shares
of the predecessor portfolio for periods prior to September 16, 1996, adjusted
for Class C sales charges and expenses. For Class A shares, the maximum
front-end sales charge is 5.75%. The maximum contingent-deferred sales charge
for Class B shares is 5.00%. The maximum contingent-deferred sales charge for
Class C shares is 1.00%. Class B and Class C share performance including sales
charge assumes the maximum contingent-deferred sales charge for the
corresponding time period. Institutional Class shares are sold without sales
charges.
26
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- -------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 1.42 81.03 27.66 33.25 (4.42) 70.62 26.16 31.92
CLASS B 1.00 79.74 26.83 32.38 (4.00) 74.74 26.68 32.34
CLASS C 1.03 79.72 26.82 32.37 0.03 78.72 26.82 32.37
INSTITUTIONAL CLASS 1.44 81.35 28.67 34.21
BENCHMARK
RUSSELL 2000 GROWTH
INDEX (11.05) 29.67 12.42 14.93(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.16
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 55.2x
MEDIAN MARKET CAP. ($B) 1.5
NUMBER OF HOLDINGS 136
PORTFOLIO TURNOVER 263%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
COMMERCE ONE INCORPORATED 2.73%
CACHEFLOW INCORPORATED 2.48%
ALPHARMA INCORPORATED 2.31%
WEBMETHODS INCORPORATED 2.24%
AGILE SOFTWARE CORPORATION 1.96%
NETIQ CORPORATION 1.87%
METRIS COMPANIES INCORPORATED 1.79%
ARTHUR J GALLAGHER & COMPANY 1.72%
DIAMOND TECH PARTNERS INCORPORATED 1.68%
TUT SYSTEMS INCORPORATED 1.63%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 46%
Health Care 22%
Financial 9%
Consumer Cyclical 7%
Commercial Services 6%
Energy 6%
Telecommunications 1%
Transportation 1%
Consumer Services 1%
Industrials 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL CAP RUSSELL 2000 WELLS FARGO SMALL CAP
GROWTH FUND-CLASS A GROWTH INDEX GROWTH FUND-INSTITUTIONAL CLASS
<S> <C> <C> <C>
$9,425 $10,000 $10,000
11/94 $9,548 $9,595 $10,120
12/94 $9,943 $9,822 $10,560
1/95 $9,972 $9,623 $10,590
2/95 $10,518 $10,067 $11,170
3/95 $11,074 $10,362 $11,770
4/95 $11,385 $10,518 $12,100
5/95 $11,631 $10,656 $12,370
6/95 $12,856 $11,390 $13,670
7/95 $14,260 $12,277 $15,170
8/95 $14,288 $12,428 $15,200
9/95 $15,174 $12,684 $16,150
10/95 $14,703 $12,060 $15,650
11/95 $16,098 $12,592 $17,150
12/95 $16,814 $12,872 $17,910
1/96 $17,144 $12,765 $18,260
2/96 $18,134 $13,347 $19,320
3/96 $18,963 $13,611 $20,210
4/96 $21,489 $14,657 $22,910
5/96 $23,148 $15,408 $24,680
6/96 $21,404 $14,407 $22,830
7/96 $18,266 $12,648 $19,490
8/96 $20,217 $13,584 $21,580
9/96 $20,649 $14,283 $22,450
10/96 $19,260 $13,668 $20,930
11/96 $19,711 $14,048 $21,430
12/96 $20,327 $14,322 $22,110
1/97 $20,631 $14,680 $22,440
2/97 $18,773 $13,793 $20,430
3/97 $17,457 $12,819 $19,010
4/97 $16,519 $12,670 $18,000
5/97 $20,134 $14,575 $21,940
6/97 $21,771 $15,069 $23,730
7/97 $22,636 $15,840 $24,690
8/97 $23,353 $16,316 $25,470
9/97 $25,873 $17,618 $28,230
10/97 $24,016 $16,559 $26,210
11/97 $23,151 $16,165 $25,280
12/97 $22,582 $16,174 $24,668
1/98 $22,211 $15,959 $24,275
2/98 $23,704 $17,369 $25,921
3/98 $25,668 $18,096 $28,078
4/98 $25,598 $18,207 $28,013
5/98 $23,574 $16,883 $25,812
6/98 $24,295 $17,055 $26,618
7/98 $22,111 $15,631 $24,243
8/98 $16,571 $12,023 $18,174
9/98 $17,893 $13,243 $19,634
10/98 $17,893 $13,934 $19,645
11/98 $19,246 $15,015 $21,138
12/98 $21,233 $16,374 $23,339
1/99 $22,371 $17,111 $24,588
2/99 $19,977 $15,545 $21,973
3/99 $21,656 $16,099 $23,834
4/99 $23,693 $17,520 $26,084
5/99 $24,267 $17,548 $26,732
6/99 $26,769 $18,473 $29,501
7/99 $27,094 $17,902 $29,890
8/99 $26,791 $17,233 $29,548
9/99 $28,416 $17,565 $31,410
10/99 $32,338 $18,015 $35,769
11/99 $37,032 $19,919 $40,968
12/99 $46,438 $23,431 $51,390
1/00 $47,053 $23,213 $52,072
2/00 $58,399 $28,614 $64,642
3/00 $50,721 $25,607 $56,150
4/00 $44,273 $23,021 $48,996
5/00 $39,292 $21,004 $43,489
6/00 $49,478 $23,718 $54,774
7/00 $46,426 $21,685 $51,403
8/00 $52,637 $23,967 $58,273
9/00 $51,442 $22,775 $56,961
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index, which
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Russell 2000 Growth Index measures the
performance of those Russell 2000 companies with higher price-to-book ratios and
higher forecasted growth values. The Fund is a professionally managed mutual
fund. You cannot invest directly in an index.
(3) The published return since the Fund's inception date of 11/01/94.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Cap Growth Fund
Class A and Institutional Class shares since inception with the Russell 2000
Growth Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
27
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Small Cap Opportunities Fund (the Fund) seeks long-term capital
appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Schroder Investment Management North America
FUND MANAGER
Ira Unschuld
INCEPTION DATE
08/01/93
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares outperformed its benchmark, the Russell 2000
Index(1), for the one-year period ended September 30, 2000, excluding sales
charges, returning 45.95%(2) versus a return of 23.39% for its benchmark. The
Fund distributed neither dividends nor capital gains during the period. Please
keep in mind that past performance is no guarantee of future results. The
Fund's one-year performance was attributable, in part, to unusually favorable
conditions that may not be sustainable and are not likely to exist in the
future.
The Fund was able to outperform its benchmark despite a series of interest
rate hikes over the reporting period and an overweighting in the hard-hit
technology sector, a weak euro and market jitters before the presidential
election. The Fund benefited from its holdings in the financial,
transportation, energy and basic material sectors. It was also fueled by
positive stock selection in the technology, health care, capital goods,
media/publishing and consumer cyclical sectors.
Among individual holdings, the Fund's performance was helped most by
Laboratory Corp America, Quest Diagnostics, Integrated Device Technologies and
PerkinElmer. The holdings that detracted most from the Fund's performance over
the reporting period included ITC Deltacom, Pac-West Telecom and Helix
Technology.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Due to a moderating pace of growth in Gross Domestic Product, the U.S.
Federal Reserve Board opted not to raise interest rates in August. The Fund
manager expects interest rates to remain stable over the next few months. With
continued focus on fundamentals, the Fund's manager plans to look for
companies that can deliver earnings growth. As the market continues to
broaden, the Fund's manager is confident that this strategy will continue to
be rewarded.
--------------------------------------------------------------------------------
(1) The Russell 2000 Index is an unmanaged market value weighted index, which
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Class A, Class B and Institutional Class shares of the
Wells Fargo Small Cap Opportunities Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Small Cap Opportunities Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds. Performance shown
for the Class A shares of the Fund prior to October 9, 1996, reflects the
performance of the Institutional Class shares of the Fund, adjusted for Class A
sales charges and expenses. Performance shown for the Class B shares of the Fund
prior to November 8, 1996, reflects the performance of the Institutional
Class shares of the Fund, adjusted for Class B sales charges and expenses. For
Class A shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. Class B share
performance including sales charge assumes the maximum contingent-deferred sales
charge for the corresponding time period. Institutional Class shares are sold
without sales charges.
28
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- ---------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 9.64 45.95 17.59 19.80 3.33 37.56 16.21 18.81
CLASS B 9.26 44.93 16.71 18.91 4.26 39.93 16.50 18.91
INSTITUTIONAL CLASS 9.74 46.20 17.63 19.83
BENCHMARK
RUSSELL 2000 INDEX (2.94) 23.39 12.39 13.22(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.88
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 24.2x
PRICE TO BOOK RATIO 3.29x
MEDIAN MARKET CAP. ($B) 1.4
NUMBER OF HOLDINGS 107
PORTFOLIO TURNOVER 165%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PERKINELMER INCORPORATED 2.45%
RENT-A-CENTER INCORPORATED 1.62%
AFFILIATED MANAGERS GROUP 1.60%
UNIVERSAL HEALTH SERVICES 1.58%
EDWARDS LIFESCIENCES CORPORATION 1.58%
AMPHENOL CORPORATION 1.58%
INFOCUS CORPORATION 1.57%
AFFILIATED COMPUTER CLA 1.54%
BINDLEY WESTERN INDUSTRIES 1.41%
SPX CORPORATION 1.32%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 28%
Health Care 22%
Commercial Services 10%
Energy 8%
Financial 8%
Cash 7%
Industrials 5%
Consumer Services 4%
Basic Materials 3%
Consumer Cyclical 3%
Utilities 1%
Telecommunications 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL CAP OPPORTUNITIES WELLS FARGO SMALL CAP
FUND-CLASS A RUSSELL 2000 INDEX OPPORTUNITIES FUND - INSTITUTIONAL CLASS
<S> <C> <C> <C>
8/1/93 $9,425 $10,000 $10,000
8/31/93 $9,755 $10,432 $10,350
9/30/93 $10,198 $10,726 $10,820
10/31/93 $10,358 $11,002 $10,990
11/30/93 $10,094 $10,640 $10,710
12/31/93 $10,558 $11,004 $11,202
1/31/94 $10,985 $11,349 $11,656
2/28/94 $11,128 $11,308 $11,807
3/31/94 $10,577 $10,711 $11,222
4/30/94 $10,729 $10,775 $11,384
5/31/94 $10,691 $10,654 $11,343
6/30/94 $10,501 $10,292 $11,142
7/31/94 $10,625 $10,460 $11,273
8/31/94 $11,232 $11,043 $11,918
9/30/94 $10,995 $11,007 $11,666
10/31/94 $11,213 $10,964 $11,897
11/30/94 $10,729 $10,521 $11,384
12/31/94 $11,028 $10,804 $11,701
1/31/95 $11,077 $10,668 $11,753
2/28/95 $11,668 $11,111 $12,380
3/31/95 $12,022 $11,303 $12,756
4/30/95 $12,337 $11,553 $13,090
5/31/95 $12,613 $11,752 $13,383
6/30/95 $13,155 $12,362 $13,957
7/31/95 $14,248 $13,074 $15,117
8/31/95 $14,779 $13,345 $15,681
9/30/95 $15,291 $13,584 $16,224
10/31/95 $14,907 $12,976 $15,817
11/30/95 $15,724 $13,521 $16,684
12/31/95 $16,441 $13,878 $17,444
1/31/96 $16,362 $13,863 $17,360
2/29/96 $16,810 $14,296 $17,835
3/31/96 $17,705 $14,587 $18,785
4/30/96 $18,824 $15,368 $19,973
5/31/96 $19,944 $15,973 $21,160
6/30/96 $19,283 $15,317 $20,460
7/31/96 $17,828 $13,980 $18,916
8/31/96 $18,377 $14,792 $19,498
9/30/96 $19,429 $15,370 $20,614
10/31/96 $19,283 $15,133 $20,472
11/30/96 $19,921 $15,757 $21,148
12/31/96 $20,150 $16,170 $21,391
1/31/97 $20,575 $16,493 $21,831
2/28/97 $20,564 $16,094 $21,831
3/31/97 $19,802 $15,334 $21,022
4/30/97 $19,870 $15,377 $21,094
5/31/97 $22,211 $17,087 $23,577
6/30/97 $23,510 $17,820 $24,944
7/31/97 $24,630 $18,649 $26,144
8/31/97 $25,179 $19,076 $26,715
9/30/97 $26,892 $20,472 $28,545
10/31/97 $25,671 $19,574 $27,238
11/30/97 $25,470 $19,447 $27,036
12/31/97 $25,677 $19,787 $27,256
1/31/98 $25,161 $19,474 $26,695
2/28/98 $26,860 $20,913 $28,498
3/31/98 $28,524 $21,775 $30,264
4/30/98 $28,558 $21,895 $30,300
5/31/98 $27,089 $20,715 $28,754
6/30/98 $27,124 $20,758 $28,790
7/31/98 $25,264 $19,077 $26,805
8/31/98 $20,305 $15,372 $21,544
9/30/98 $20,822 $16,576 $22,092
10/31/98 $21,591 $17,252 $22,908
11/30/98 $22,888 $18,156 $24,284
12/31/98 $23,284 $19,280 $24,704
1/31/99 $22,824 $19,536 $24,216
2/28/99 $21,353 $17,954 $22,655
3/31/99 $21,364 $18,234 $22,667
4/30/99 $22,778 $19,868 $24,179
5/31/99 $23,559 $20,158 $25,009
6/30/99 $25,122 $21,069 $26,655
7/31/99 $24,743 $20,491 $26,264
8/31/99 $23,467 $19,733 $24,911
9/30/99 $23,559 $19,737 $24,996
10/31/99 $23,628 $19,818 $25,070
11/30/99 $24,938 $21,001 $26,472
12/31/99 $26,501 $23,379 $28,118
1/31/00 $26,272 $23,002 $27,886
2/29/00 $28,271 $26,800 $30,020
3/31/00 $31,363 $25,034 $33,300
4/30/00 $31,374 $23,527 $33,312
5/31/00 $30,110 $22,155 $31,971
6/30/00 $31,983 $24,087 $33,971
7/31/00 $31,661 $23,312 $33,629
8/31/00 $34,902 $25,090 $37,092
9/30/00 $34,385 $24,353 $36,543
</TABLE>
--------------------------------------------------------------------------------
(3) The published return since the Fund's inception date of 08/01/93.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Cap
Opportunities Fund Class A and Institutional Class shares since inception with
the Russell 2000 Index. The chart assumes a hypothetical investment of $10,000
in Class A and Institutional Class shares and reflects all operating expenses
and, for Class A shares, assumes the maximum initial sales charge of 5.75%.
29
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Small Cap Value Fund (the Fund) seeks capital appreciation by investing
primarily in common stocks of smaller companies.
ADVISOR
Wells Fargo Bank, N.A.
ADVISOR
Smith Asset Management Group
FUND MANAGER
Steve Smith, CFA
INCEPTION DATE
10/15/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares outperformed its benchmark, the Russell
2000 Index(1) for the one-year period ended September 30, 2000, returning
24.79%(2), versus a return of 23.39% for the benchmark. The Fund distributed
neither dividends nor capital gains during the period. Please keep in mind
that past performance is no guarantee of future results.
The Fund's positive absolute performance over the year ended September 30,
2000, was driven largely by its health care and financial sector holdings,
which rose 188% and 79%, respectively. These sector strengths enabled the Fund
to outperform both the broader Russell 2000 Index and the narrower Russell
2000 Value Index(3), which rose by 15.4% during the period. The Fund's
avoidance of many of the high-flying technology and internet-related issues
was another plus when investors retreated from these stocks during the second
and third quarters of 2000.
The Fund's strongest individual position was Silicon Valley Bancshares, which
appreciated by 261% over the year. Shares of the company, a commercial bank
focusing on emerging growth and middle-market technology and life sciences
firms, were boosted by four significant positive earnings surprises and a 145%
increase in net income. Nature's Bounty, a retailer of nutritional supplements
in the U.S. and United Kingdom, was one of the Fund's least successful
positions. Nature's Bounty shares declined by 59% over the year, having come
under especially heavy pressure after announcing that its third quarter 2000
sales would fall short of expectations.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
During the last half of 1999, and continuing on into 2000, the U.S. Federal
Reserve Board (the Fed) adopted an aggressive stance to slow the U.S. economy
to a more sustainable pace. The Fund's manager believes that the Fed has
accomplished its goal and view the current economic outlook as fairly
positive. The Fund's manager believes that the Fund should be well-positioned
for a potentially volatile market environment in which companies that can
consistently deliver above average growth will be the most attractive
investment opportunities.
30
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
----------------------------------
6-Month* 1-Year Since Inception Since 10/01/97
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS 5.36 24.79 2.10
BENCHMARK
RUSSELL 2000 INDEX (2.72) 23.39 5.96(4)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.65
PRICE TO EARNINGS RATIO (TRAILING 12 MO.) 15.3X
PRICE TO BOOK RATIO 2.7X
MEDIAN MARKET CAP. ($B) 1.0
NUMBER OF HOLDINGS 58
PORTFOLIO TURNOVER 124%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
COMPUCREDIT CORPORATION 2.72%
C&D TECHNOLOGIES INCORPORATED 2.63%
OXFORD HEALTH PLANS 2.53%
AMERICREDIT CORPORATION 2.35%
TALBOTS, INCORPORATED 2.31%
INFOCUS CORPORATION 2.30%
GREATER BAY BANCORP 2.28%
METRIS COMPANIES INCORPORATED 2.26%
SOUTHWEST BANCORP OF TEXAS 2.25%
VINTAGE PETROLEUM INCORPORATED 2.24%
</TABLE>
SECTOR DISTRIBUTION(6) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CONSUMER CYCLICAL 25%
<S> <C>
Financial 20%
Technology 12%
Consumer Services 6%
Health Care 6%
Cash 5%
Industrials 5%
Utilities 5%
Energy 5%
Basic Materials 3%
Commercial Services 3%
Transportation 3%
Consumer Non-Cyclical 2%
</TABLE>
GROWTH OF $10,000 INVESTMENT(7)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL CAP
VALUE FUND-INSTITUTIONAL CLASS RUSSELL 2000 INDEX
<S> <C> <C>
10/97 $10,000 $10,000
10/97 $9,290 $9,561
11/97 $9,300 $9,499
12/97 $9,210 $9,665
1/98 $9,160 $9,512
2/98 $10,000 $10,215
3/98 $10,650 $10,636
4/98 $10,760 $10,695
5/98 $10,160 $10,118
6/98 $10,060 $10,140
7/98 $9,190 $9,318
8/98 $7,420 $7,509
9/98 $7,450 $8,097
10/98 $7,830 $8,427
11/98 $8,270 $8,868
12/98 $8,700 $9,417
1/99 $8,440 $9,543
2/99 $7,669 $8,770
3/99 $7,309 $8,907
4/99 $7,799 $9,705
5/99 $8,050 $9,846
6/99 $8,781 $10,291
7/99 $8,731 $10,009
8/99 $8,350 $9,639
9/99 $8,520 $9,641
10/99 $8,530 $9,680
11/99 $8,941 $10,258
12/99 $9,622 $11,420
1/00 $8,931 $11,236
2/00 $9,341 $13,091
3/00 $10,092 $12,228
4/00 $10,292 $11,492
5/00 $9,742 $10,822
6/00 $10,252 $11,766
7/00 $9,822 $11,387
8/00 $10,783 $12,256
9/00 $10,633 $11,895
</TABLE>
--------------------------------------------------------------------------------
(1) The Russell 2000 Index is an unmanaged market value weighted index, which
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for Institutional Class shares of the Wells Fargo Small Cap
Value Fund for periods prior to November 8, 1999, reflects performance of the
Institutional Class shares of the Norwest Advantage Performa Small Cap Value
Fund, its predecessor fund. Effective at the close of business November 5, 1999,
the Stagecoach and Norwest Advantage Funds were reorganized into the Wells Fargo
Funds. Institutional Class shares are sold without sales charges.
(3) The Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth values.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(4) The published return closest to the Fund's inception date of 10/15/97.
(5) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(6) Portfolio holdings are subject to change.
(7) The chart compares the performance of the Wells Fargo Small Cap Value Fund
Institutional Class shares since inception with the Russell 2000 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
31
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Small Company Growth Fund (the Fund) seeks to provide long-term capital
appreciation by investing in smaller domestic companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Peregrine Capital Management
FUND MANAGERS
Robert Mersky, CFA
Paul von Kuster, CFA
INCEPTION DATE
12/31/82
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 34.00%(1) for the one-year
period ended September 30, 2000. The Fund outperformed its benchmark, the
Russell 2000 Index(2), which returned 23.39% during the period. The Fund's
Institutional Class shares distributed neither dividend income nor capital
gains during the period. Please keep in mind that past performance is no
guarantee of future results.
The 12 months ended September 30, 2000, encompassed several very different
market phases. The S&P 500 Index(3) rose 13.28%, the Russell 2000 Index of
small stocks posted a 23.39% advance, and the technology-heavy Russell 2000
Growth Index(2) gained 29.67%.
In March, the Nasdaq Composite Index(4) began to plunge from its peak. By May
25, it had dropped by more than 35% as stocks with high multiples and no
earnings support fell sharply. During that same period, the Russell 2000
Growth Index was also down 35%, while the Russell 2000 Index lost 24% of its
value. In this market decline, the Fund outperformed with a decline of only
14%.
From May 31 through September 30, 2000, the market's high-flying growth
stocks rallied a number of times, only to fall again. The Fund modestly
underperformed during this period, falling less than the indices on most down
days, but trailing the market when daily gains of 2% or more were driven by
the narrow strength of just a select group of technology names.
Taking the 12 months as a whole, the Fund produced good relative performance
that was in line with what might be expected, given that two-thirds of the
portfolio is normally invested in rapidly growing discovery phase (stocks
expected to gain 20% to 50% over the next three to five years) stocks. The
Fund's best performers for the year ended September 30, 2000, were health care
and technology issues. In the former, stocks like Abgenix, Alkermes, Corr and
Teva advanced strongly. In technology, IDTI, Atmel and DII Group were
standouts. At the other end of the spectrum were several business-services
stocks including Nova, ITC Deltacom and Rhythms Netconnections. A number of
the Fund's consumer names, such as Stamps.com and Office Depot, were also
weak.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe the Fund is well-positioned for strong relative
performance based on its blend of discovery phase and overlooked (stocks not
in favor because of a specific situation) holdings, broad diversification and
the low valuations of its holdings. As the transition continues from the
momentum investing and euphoria of the late 1990s toward investing based on
visible fundamentals, the managers think that investors should find the
companies in its portfolio, which have an average 25% earnings growth and a
projected price-to-earnings ratio (based on next year's estimated earnings) of
17, attractive investments.
--------------------------------------------------------------------------------
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
Performance shown for the Institutional Class shares of the Wells Fargo Small
Company Growth Fund for periods prior to November 8, 1999, reflects performance
of the Institutional Class shares of the Norwest Advantage Small Company Growth
Fund, its predecessor fund. Effective at the close of business November 5, 1999,
the Stagecoach and Norwest Advantage Funds were reorganized into the Wells Fargo
Funds. Performance of the Institutional Class shares of the Fund prior to
November 11, 1994, reflects the performance of a collective investment fund
adjusted to reflect Institutional Class expenses. Wells Fargo Bank Minnesota,
N.A. (WFB MN), formerly Norwest Bank Minnesota, N.A., managed the collective
investment fund with an investment objective and principal investment strategy
that were substantially similar to those of the Fund. The performance for the
Fund includes performance of its predecessor collective investment fund for
periods before it became a mutual fund on November 11, 1994. The collective
investment fund's performance was adjusted to reflect the Fund's 1994 estimate
of its expense ratio for the first year of operations as a mutual fund,
including any applicable sales load (without giving effect to any fee waivers or
expense reimbursements). The collective investment fund was not registered under
the Investment Company Act of 1940 ("1940 Act") nor subject to certain
investment limitations, diversification requirements and other restrictions
imposed by the 1940 Act or the Internal Revenue Code, which, if applicable, may
have adversely affected the Fund's performance results. Institutional Class
shares are sold without sales charges.
32
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
------------------------------------
6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS (3.82) 34.00 12.28 21.30
BENCHMARK
RUSSELL 2000 INDEX (2.72) 23.39 12.39 16.93
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.31
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 22X
PRICE TO BOOK RATIO 3.2X
MEDIAN MARKET CAP. ($B) 1.28
NUMBER OF HOLDINGS 122
PORTFOLIO TURNOVER 203%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
GENZYME CORPORATION 1.84%
WHOLE FOODS MARKET, INCORPORATED 1.74%
COFLEXIP, S.A. 1.65%
CAREMARK RX, INCORPORATED 1.64%
NETWORK ASSOCIATES, INCORPORATED 1.59%
FIDELITY NATIONAL FINANCIAL, INCORPORATED 1.59%
CONSOLIDATED STORES 1.58%
HEALTH MANAGEMENT ASSOCIATION 1.56%
OLD REPUBLIC INTERNATIONAL CORPORATION 1.55%
BIOVAIL CORPORATION 1.51%
</TABLE>
SECTOR DISTRIBUTION(6) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 31%
Health Care 19%
Financial 13%
Consumer Cyclical 10%
Energy 8%
Consumer Services 5%
Cash 4%
Commercial Services 2%
Transportation 2%
Telecommunications 2%
Basic Materials 1%
Consumer Non-Cyclical 1%
Industrials 1%
Utilities 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(7)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL COMPANY
GROWTH FUND-INSTITUTIONAL CLASS RUSSELL 2000 INDEX
<S> <C> <C>
9/30/90 $10,000 $10,000
10/31/90 $9,578 $9,390
11/30/90 $10,623 $10,106
12/31/90 $11,588 $10,507
1/31/91 $12,647 $11,457
2/28/91 $14,026 $12,734
3/31/91 $15,136 $13,630
4/30/91 $14,844 $13,596
5/31/91 $16,062 $14,245
6/30/91 $14,722 $13,414
7/31/91 $15,977 $13,885
8/31/91 $17,274 $14,399
9/30/91 $17,693 $14,511
10/31/91 $19,104 $14,894
11/30/91 $17,607 $14,205
12/31/91 $19,982 $15,343
1/31/92 $21,517 $16,585
2/29/92 $21,500 $17,070
3/31/92 $20,121 $16,493
4/30/92 $19,222 $15,915
5/31/92 $19,081 $16,127
6/30/92 $18,111 $15,364
7/31/92 $19,026 $15,899
8/31/92 $18,485 $15,451
9/30/92 $19,023 $15,808
10/31/92 $20,043 $16,310
11/30/92 $22,304 $17,558
12/31/92 $23,384 $18,169
1/31/93 $24,127 $18,783
2/28/93 $22,360 $18,349
3/31/93 $23,482 $18,944
4/30/93 $23,203 $18,425
5/31/93 $24,726 $19,239
6/30/93 $24,784 $19,358
7/31/93 $24,832 $19,625
8/31/93 $26,790 $20,473
9/30/93 $27,898 $21,051
10/31/93 $27,964 $21,592
11/30/93 $27,166 $20,881
12/31/93 $28,561 $21,595
1/31/94 $28,893 $22,273
2/28/94 $28,678 $22,193
3/31/94 $26,763 $21,021
4/30/94 $27,176 $21,145
5/31/94 $26,340 $20,909
6/30/94 $25,147 $20,198
7/31/94 $25,937 $20,529
8/31/94 $27,658 $21,672
9/30/94 $27,491 $21,601
10/31/94 $27,522 $21,517
11/30/94 $26,300 $20,647
12/31/94 $27,580 $21,203
1/31/95 $27,530 $20,936
2/28/95 $29,108 $21,807
3/31/95 $29,928 $22,182
4/30/95 $30,388 $22,674
5/31/95 $30,686 $23,064
6/30/95 $33,133 $24,261
7/31/95 $36,425 $25,659
8/31/95 $37,792 $26,190
9/30/95 $38,624 $26,659
10/31/95 $37,258 $25,467
11/30/95 $38,363 $26,536
12/31/95 $38,469 $27,237
1/31/96 $38,524 $27,207
2/29/96 $39,799 $28,056
3/31/96 $40,662 $28,628
4/30/96 $43,871 $30,160
5/31/96 $45,241 $31,348
6/30/96 $42,527 $30,060
7/31/96 $39,675 $27,436
8/31/96 $42,787 $29,030
9/30/96 $44,474 $30,165
10/31/96 $43,500 $29,700
11/30/96 $45,104 $30,924
12/31/96 $46,092 $31,734
1/31/97 $47,676 $32,369
2/28/97 $45,753 $31,585
3/31/97 $43,631 $30,094
4/30/97 $43,277 $30,179
5/31/97 $47,799 $33,535
6/30/97 $51,228 $34,973
7/31/97 $55,119 $36,600
8/31/97 $56,011 $37,438
9/30/97 $60,175 $40,178
10/31/97 $58,667 $38,414
11/30/97 $57,095 $38,165
12/31/97 $56,308 $38,832
1/31/98 $55,943 $38,219
2/28/98 $60,145 $41,043
3/31/98 $63,236 $42,734
4/30/98 $63,618 $42,969
5/31/98 $58,496 $40,653
6/30/98 $57,315 $40,739
7/31/98 $53,790 $37,439
8/31/98 $40,091 $30,168
9/30/98 $43,199 $32,530
10/31/98 $46,220 $33,858
11/30/98 $48,894 $35,632
12/31/98 $51,180 $37,837
1/31/99 $52,741 $38,341
2/28/99 $47,050 $35,235
3/31/99 $46,746 $35,785
4/30/99 $50,133 $38,991
5/31/99 $52,227 $39,560
6/30/99 $55,539 $41,348
7/31/99 $55,482 $40,215
8/31/99 $52,075 $38,727
9/30/99 $51,447 $38,735
10/31/99 $51,885 $38,894
11/30/99 $56,072 $41,216
12/31/99 $60,963 $45,882
1/31/00 $60,354 $45,143
2/29/00 $71,089 $52,596
3/31/00 $71,679 $49,130
4/30/00 $69,395 $46,172
5/31/00 $66,026 $43,480
6/30/00 $70,480 $47,272
7/31/00 $65,855 $45,750
8/31/00 $71,603 $49,241
9/30/00 $68,938 $47,793
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged, market value weighted index, that
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Russell 2000 Growth Index measures the
performance of those Russell 2000 companies with higher price-to-book ratios and
higher forecasted growth values. The Fund is a professionally managed mutual
fund. You cannot invest directly in an index.
(3) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(4) The Nasdaq Composite-SM- Index measures the market value of all the
domestic and foreign common stocks, representing a wide array of more than 5,000
companies, listed on The Nasdaq Stock Market-SM-. You cannot invest directly in
an index.
(5) The ten largest equity holdings are calculated based on the market value of
the Core Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Core Trust.
(6) Portfolio holdings are subject to change.
(7) The chart compares the performance of the Wells Fargo Small Company Growth
Fund Institutional Class shares since inception with the Russell 2000 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
33
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Specialized Technology Fund (the Fund) seeks long-term capital
appreciation by investing in domestic and foreign equity securities of
technology companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Dresdner RCM Global Investors
FUND MANAGERS
Huachen Chen, CFA
Walter Price, CFA
INCEPTION DATE
09/18/00
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares outperformed its benchmark, the Morgan Stanley
High-Tech 35 Index(1), from its inception on September 18, through
September 30, 2000, excluding sales charges. The Fund returned 1.10%(2) versus
a return of (3.82)% for the benchmark. The Fund's Class A shares distributed
neither dividend income nor capital gains during the period. Please keep in
mind that past performance is no guarantee of future results.
After an August rebound, September was a tumultuous period for the technology
sector. During this period, the Fund's semiconductor and telecommunication
equipment sector holdings were generally weak, but their declines were
partially offset by the strong performance of the Fund's positions in makers
of packaged software. The Fund's 13.3% cash position was also advantageous in
the volatile market environment.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers continue to make adjustments and take positions in
companies that will show strong stock performance in 2001, by exceeding
current earnings expectations. Areas of focus may include business-to-business
infrastructure. The Fund's managers believe that companies in this area will
experience strong secular growth in the coming year as both public and private
exchange implementations should accelerate. In the telecommunications
equipment sector, the Fund managers favor firms that they believe have strong
and diversified customer bases. Also, another area showing promise for the
coming year is the specialty semiconductor sector, given that this segment is
less sensitive to personal computer demand and general economic cycles.
34
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
---------------------- ----------------------
Since Inception* Since Inception*
<S> <C> <C>
CLASS A 1.10 (4.71)
CLASS B 1.10 (3.90)
CLASS C 1.10 0.10
BENCHMARK
THE MORGAN STANLEY HIGH-TECH 35 INDEX (3.82)(3)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
NUMBER OF HOLDINGS 60
PORTFOLIO TURNOVER 5%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CHECK POINT SOFTWARE 5.39%
COMMERCE ONE INCORPORATED 3.63%
EBAY INCORPORATED 3.08%
SDL INCORPORATED 3.06%
APPLIED MICRO CIRCUITS 3.01%
TYCO INTERNATIONAL LIMITED 2.88%
NETWORK APPLIANCE INCORPORATED 2.77%
SIEBEL SYSTEMS INCORPORATED 2.47%
MAXIM INTEGRATED PRODUCTS 2.31%
CORNING INCORPORATED 2.28%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 67%
Cash 24%
Industrials 4%
International 3%
Commercial Services 1%
Health Care 1%
</TABLE>
--------------------------------------------------------------------------------
(1) The Morgan Stanley High-Tech 35 Index is comprised of 35 U.S. public
issuers drawn from 11 technology subsectors, including computer and business
services, data networking/internet infrastructure, electronics manufacturing
services, enterprise software, internet and PC software, server and enterprise
hardware, PC hardware and data storage, semiconductor capital equipment,
semiconductors, technical software, telecom equipment and wireline/wireless. The
Fund is a professionally managed mutual fund. You cannot invest directly in an
index.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
(3) The published return since the Fund's inception date of 09/18/00.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
35
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
DISCIPLINED GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO DISCIPLINED GROWTH
PORTFOLIO $31,766,437
-----------
31,766,437
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(99.97%) (COST $24,541,849)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $24,541,849)* 99.97% $31,766,437
OTHER ASSETS AND LIABILITIES, NET 0.03 8,161
------- -----------
TOTAL NET ASSETS 100.00% $31,774,598
------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO DISCIPLINED GROWTH
PORTFOLIO $ 109,624,366
N/A WELLS FARGO INCOME EQUITY
PORTFOLIO 560,119,440
N/A WELLS FARGO INDEX PORTFOLIO 546,195,055
N/A WELLS FARGO INTERNATIONAL
EQUITY PORTFOLIO 139,320,910
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO 182,428,089
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO 431,732,834
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO 55,517,304
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 55,688,894
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 55,014,884
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 55,880,809
2,191,522,585
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.26%) (COST $1,354,509,297)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,354,509,297)* 100.26% $2,191,522,585
OTHER ASSETS AND LIABILITIES, NET (0.26) (5,672,020)
------- --------------
TOTAL NET ASSETS 100.00% $2,185,850,565
------- --------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO $ 29,250,632
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 29,233,801
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 29,148,601
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 29,404,644
117,037,678
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(99.86%) (COST $106,288,425)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $106,288,425)* 99.86% $117,037,678
OTHER ASSETS AND LIABILITIES, NET 0.14 163,399
------- ------------
TOTAL NET ASSETS 100.00% $117,201,077
------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INCOME FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INCOME EQUITY
PORTFOLIO $1,765,014,986
--------------
1,765,014,986
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.30%) (COST $1,410,005,553)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,410,005,553)* 100.30% $1,765,014,986
OTHER ASSETS AND LIABILITIES, NET (0.30) (5,279,485)
------- --------------
TOTAL NET ASSETS 100.00% $1,759,735,501
------- --------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
39
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.12%
AGRICULTURAL PRODUCTION-CROPS - 0.07%
17,600 NABISCO GROUP HOLDINGS
CORPORATION $ 501,600
------------
AMUSEMENT & RECREATION SERVICES - 0.64%
6,300 HARRAH'S ENTERTAINMENT
INCORPORATED+ 173,250
112,600 WALT DISNEY COMPANY 4,306,950
4,480,200
------------
APPAREL & ACCESSORY STORES - 0.37%
45,900 GAP INCORPORATED 923,738
17,800 KOHL'S CORPORATION+ 1,026,838
23,300 LIMITED INCORPORATED 514,055
7,000 NORDSTROM INCORPORATED 108,938
2,573,569
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.04%
2,900 LIZ CLAIBORNE INCORPORATED 111,650
6,200 V F CORPORATION 153,063
264,713
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.02%
6,900 AUTOZONE INCORPORATED+ 156,543
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
3,200 RYDER SYSTEM INCORPORATED 59,000
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.03%
3,200 CENTEX CORPORATION 102,800
2,600 KAUFMAN & BROAD HOME
CORPORATION 70,038
2,200 PULTE CORPORATION 72,600
245,438
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.10%
125,100 HOME DEPOT INCORPORATED 6,638,118
20,700 LOWE'S COMPANIES INCORPORATED 928,913
8,800 SHERWIN-WILLIAMS COMPANY 188,100
7,755,131
------------
BUSINESS SERVICES - 9.62%
6,500 ADOBE SYSTEMS INCORPORATED 1,009,125
124,700 AMERICA ONLINE INCORPORATED+ 6,702,625
3,100 AUTODESK INCORPORATED 78,663
33,900 AUTOMATIC DATA PROCESSING
INCORPORATED 2,267,063
13,300 BMC SOFTWARE INCORPORATED+ 254,363
10,000 CABLETRON SYSTEMS
INCORPORATED+ 293,750
39,200 CENDANT CORPORATION+ 426,300
7,800 CERIDIAN CORPORATION+ 218,888
10,000 CITRIX SYSTEMS INCORPORATED+ 200,625
31,900 COMPUTER ASSOCIATES
INTERNATIONAL INCORPORATED 803,481
</TABLE>
40
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
9,100 COMPUTER SCIENCES CORPORATION+ $ 675,675
19,700 COMPUWARE CORPORATION+ 164,988
8,300 CONVERGYS CORPORATION+ 322,663
3,900 DELUXE CORPORATION 79,219
6,900 ECOLAB INCORPORATED 248,831
25,200 ELECTRONIC DATA SYSTEMS
CORPORATION 1,045,800
7,600 EQUIFAX INCORPORATED 204,725
21,900 FIRST DATA CORPORATION 855,469
16,100 IMS HEALTH INCORPORATED 334,075
16,600 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 565,438
15,300 MCKESSON HBOC INCORPORATED 467,606
4,300 MERCURY INTERACTIVE
CORPORATION+ 674,025
284,300 MICROSOFT CORPORATION+ 17,129,075
5,200 NCR CORPORATION+ 196,625
17,500 NOVELL INCORPORATED+ 173,906
9,600 OMNICOM GROUP INCORPORATED 700,200
152,100 ORACLE CORPORATION+ 11,977,875
14,700 PARAMETRIC TECHNOLOGY COMPANY+ 160,780
15,100 PEOPLESOFT INCORPORATED+ 421,857
6,400 SAPIENT CORPORATION+ 260,400
22,500 SIEBEL SYSTEMS INCORPORATED+ 2,504,530
85,700 SUN MICROSYSTEMS INCORPORATED+ 10,005,475
16,900 UNISYS CORPORATION+ 190,125
21,700 VERITAS SOFTWARE CORPORATION+ 3,081,400
29,700 YAHOO! INCORPORATED+ 2,702,700
4,000 YOUNG & RUBICAM INCORPORATED 198,000
67,596,345
------------
CHEMICALS & ALLIED PRODUCTS - 11.29%
83,700 ABBOTT LABORATORIES 3,980,981
12,400 AIR PRODUCTS AND CHEMICALS
INCORPORATED 446,400
3,000 ALBERTO CULVER COMPANY 86,438
6,200 ALZA CORPORATION+ 536,300
70,400 AMERICAN HOME PRODUCTS
CORPORATION 3,982,000
55,600 AMGEN INCORPORATED+ 3,882,444
12,800 AVON PRODUCTS INCORPORATED 523,200
8,000 BIOGEN INCORPORATED+ 488,000
106,200 BRISTOL-MYERS SQUIBB COMPANY 6,066,675
12,700 CLOROX COMPANY 502,444
31,000 COLGATE-PALMOLIVE COMPANY 1,463,200
36,600 DOW CHEMICAL COMPANY 912,713
56,300 E I DU PONT DE NEMOURS &
COMPANY 2,332,931
4,100 EASTMAN CHEMICAL COMPANY 151,444
61,000 ELI LILLY & COMPANY 4,948,625
1,600 FMC CORPORATION+ 107,300
56,900 GILLETTE COMPANY 1,756,788
2,800 GREAT LAKES CHEMICAL
CORPORATION 82,075
5,400 INTERNATIONAL FLAVORS &
FRAGRANCES INCORPORATED 98,550
</TABLE>
41
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
75,100 JOHNSON & JOHNSON $ 7,054,706
11,300 MEDIMMUNE INCORPORATED+ 872,925
124,300 MERCK & COMPANY INCORPORATED 9,252,580
341,100 PFIZER INCORPORATED 15,328,180
70,100 PHARMACIA CORPORATION 4,219,144
9,400 PPG INDUSTRIES INCORPORATED 373,063
8,500 PRAXAIR INCORPORATED 317,688
70,700 PROCTER & GAMBLE COMPANY 4,736,900
11,700 ROHM & HAAS COMPANY 340,031
79,100 SCHERING-PLOUGH CORPORATION 3,678,150
4,400 SIGMA ALDRICH 145,200
7,300 UNION CARBIDE CORPORATION 275,575
3,600 W R GRACE & COMPANY+ 24,750
5,500 WATSON PHARMACEUTICALS
INCORPORATED+ 356,813
79,324,213
------------
COMMUNICATIONS - 6.80%
38,100 ADC TELECOMMUNICATIONS
INCORPORATED+ 1,024,533
17,000 ALLTEL CORPORATION 887,188
202,900 AT&T CORPORATION 5,960,188
101,200 BELLSOUTH CORPORATION 4,073,300
7,600 CENTURYTEL INCORPORATED 207,100
31,600 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 1,785,400
48,900 COMCAST CORPORATION CLASS A+ 2,001,844
47,600 GLOBAL CROSSING LIMITED+ 1,475,600
41,100 NEXTEL COMMUNICATIONS
INCORPORATED+ 1,921,425
89,700 QWEST COMMUNICATIONS
INTERNATIONAL INCORPORATED+ 4,311,207
183,100 SBC COMMUNICATIONS
INCORPORATED 9,155,000
47,800 SPRINT CORPORATION (FON GROUP) 1,401,138
50,100 SPRINT CORPORATION (PCS
GROUP)+ 1,756,630
146,800 VERIZON COMMUNICATIONS 7,110,625
155,200 WORLDCOM INCORPORATED+ 4,714,200
47,785,378
------------
DOMESTIC DEPOSITORY INSTITUTIONS - 7.20%
20,400 AMSOUTH BANCORP 255,000
88,700 BANK OF AMERICA CORPORATION+ 4,645,663
39,900 BANK OF NEW YORK COMPANY
INCORPORATED 2,236,894
62,400 BANK ONE CORPORATION 2,410,200
21,600 BB&T CORPORATION 650,702
11,300 CHARTER ONE FINANCIAL
INCORPORATED 275,438
70,700 CHASE MANHATTAN CORPORATION 3,265,456
243,000 CITIGROUP INCORPORATED 13,137,188
8,500 COMERICA INCORPORATED 496,719
25,100 FIFTH THIRD BANCORP 1,352,263
53,200 FIRST UNION CORPORATION 1,712,375
51,800 FIRSTAR CORPORATION 1,159,025
48,800 FLEETBOSTON FINANCIAL
CORPORATION 1,903,200
</TABLE>
42
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DOMESTIC DEPOSITORY INSTITUTIONS (continued)
8,500 GOLDEN WEST FINANCIAL
CORPORATION $ 455,813
13,600 HUNTINGTON BANCSHARES
INCORPORATED 199,750
8,600 J P MORGAN & COMPANY
INCORPORATED 1,405,025
23,300 KEYCORP 589,780
26,400 MELLON FINANCIAL CORPORATION 1,224,300
32,800 NATIONAL CITY CORPORATION 725,700
12,000 NORTHERN TRUST CORPORATION 1,066,500
7,400 OLD KENT FINANCIAL CORPORATION 214,138
15,600 PNC FINANCIAL SERVICES GROUP 1,014,000
11,800 REGIONS FINANCIAL CORPORATION 267,713
9,100 SOUTHTRUST CORPORATION 286,080
8,700 STATE STREET CORPORATION 1,131,000
9,400 SUMMIT BANCORP 324,300
16,100 SUNTRUST BANKS INCORPORATED 801,980
15,300 SYNOVUS FINANCIAL CORPORATION 324,169
40,300 US BANCORP 916,825
7,300 UNION PLANTERS CORPORATION 241,356
11,000 WACHOVIA CORPORATION 623,563
29,100 WASHINGTON MUTUAL INCORPORATED 1,158,544
88,900 WELLS FARGO & COMPANY** 4,083,844
50,554,503
------------
EATING & DRINKING PLACES - 0.43%
6,600 DARDEN RESTAURANTS
INCORPORATED 137,363
71,400 MCDONALD'S CORPORATION 2,155,388
10,100 STARBUCKS CORPORATION+ 404,630
7,900 TRICON GLOBAL RESTAURANTS
INCORPORATED+ 241,938
6,100 WENDY'S INTERNATIONAL
INCORPORATED 122,381
3,061,700
------------
ELECTRIC, GAS & SANITARY SERVICES - 2.65%
24,700 AES CORPORATION+ 1,691,950
10,600 ALLIED WASTE INDUSTRIES
INCORPORATED+ 97,388
7,400 AMEREN CORPORATION 309,875
17,400 AMERICAN ELECTRIC POWER
COMPANY INCORPORATED 680,775
8,600 CINERGY CORPORATION 284,337
5,900 CMS ENERGY CORPORATION 158,930
8,600 CP&L ENERGY INCORPORATED 358,513
4,300 COLUMBIA ENERGY GROUP 305,300
11,500 CONSOLIDATED EDISON
INCORPORATED 392,438
8,100 CONSTELLATION ENERGY GROUP 402,975
12,900 DOMINION RESOURCE INCORPORATED 749,006
7,700 DTE ENERGY COMPANY 294,525
19,900 DUKE ENERGY CORPORATION 1,706,425
1,500 EASTERN ENTERPRISES 95,719
17,600 EDISON INTERNATIONAL 339,900
12,500 EL PASO ENERGY CORPORATION 770,313
12,000 ENTERGY CORPORATION 447,000
</TABLE>
43
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
12,400 FIRSTENERGY CORPORATION $ 334,025
5,300 FLORIDA PROGRESS CORPORATION 280,569
9,600 FPL GROUP INCORPORATED 631,200
6,600 GPU INCORPORATED 214,088
7,300 KEYSPAN CORPORATION 292,913
8,700 NIAGARA MOHAWK HOLDINGS
INCORPORATED+ 137,025
2,500 NICOR INCORPORATED 90,469
1,600 ONEOK INCORPORATED 63,600
9,200 PECO ENERGY COMPANY 557,175
1,900 PEOPLE'S ENERGY CORPORATION 63,413
20,800 PG&E CORPORATION 503,100
4,600 PINNACLE WEST CAPITAL
CORPORATION 234,025
7,800 PPL CORPORATION 325,650
11,600 PUBLIC SERVICE ENTERPRISE
GROUP INCORPORATED 518,375
15,900 RELIANT ENERGY INCORPORATED 739,350
11,000 SEMPRA ENERGY 228,937
35,000 SOUTHERN COMPANY 1,135,313
14,300 TEXAS UTILITIES COMPANY 566,637
9,500 UNICOM CORPORATION 533,780
33,600 WASTE MANAGEMENT INCORPORATED 585,900
23,900 WILLIAMS COMPANIES
INCORPORATED 1,009,775
18,300 XCEL ENERGY INCORPORATED 503,250
18,633,938
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 13.92%
5,400 ADAPTEC INCORPORATED+ 108,000
16,800 ADVANCED MICRO DEVICES
INCORPORATED+ 396,900
21,600 ALTERA CORPORATION+ 1,031,400
10,500 AMERICAN POWER CONVERSION
CORPORATION+ 201,468
19,200 ANALOG DEVICES INCORPORATED+ 1,585,200
4,400 ANDREW CORPORATION+ 115,225
12,000 BROADCOM CORPORATION+ 2,925,000
12,300 CONEXANT SYSTEMS INCORPORATED+ 515,062
5,000 COOPER INDUSTRIES INCORPORATED 176,250
3,900 EATON CORPORATION 240,337
23,100 EMERSON ELECTRIC COMPANY 1,547,700
535,100 GENERAL ELECTRIC COMPANY 30,868,581
362,700 INTEL CORPORATION 15,097,387
50,600 JDS UNIPHASE CORPORATION+ 4,791,187
16,800 LINEAR TECHNOLOGY CORPORATION 1,087,800
16,800 LSI LOGIC CORPORATION+ 491,400
180,400 LUCENT TECHNOLOGIES
INCORPORATED 5,513,475
15,300 MAXIM INTEGRATED PRODUCTS
INCORPORATED+ 1,230,693
4,200 MAYTAG CORPORATION 130,463
30,500 MICRON TECHNOLOGY
INCORPORATED+ 1,403,000
10,600 MOLEX INCORPORATED 577,038
117,800 MOTOROLA INCORPORATED 3,327,850
9,600 NATIONAL SEMICONDUCTOR
CORPORATION+ 386,400
</TABLE>
44
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
2,200 NATIONAL SERVICE INDUSTRIES $ 43,038
16,900 NETWORK APPLIANCE
INCORPORATED+ 2,152,638
161,400 NORTEL NETWORKS CORPORATION 9,613,388
7,100 NOVELLUS SYSTEMS INCORPORATED+ 330,594
40,300 QUALCOMM INCORPORATED+ 2,871,375
18,400 RAYTHEON COMPANY CLASS B 523,250
8,200 SANMINA CORPORATION+ 767,725
8,600 SCIENTIFIC-ATLANTA
INCORPORATED 547,175
22,200 TELLABS INCORPORATED+ 1,060,050
93,400 TEXAS INSTRUMENTS INCORPORATED 4,407,313
3,100 THOMAS & BETTS CORPORATION 54,056
3,900 WHIRLPOOL CORPORATION 151,613
17,800 XILINK INCORPORATED+ 1,524,125
97,794,156
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.43%
8,800 DUN & BRADSTREET CORPORATION 303,050
4,100 FLUOR CORPORATION 123,000
24,100 HALLIBURTON COMPANY 1,179,394
20,100 PAYCHEX INCORPORATED 1,055,250
2,700 PERKINELMER INCORPORATED 281,813
6,200 QUINTILES TRANSNATIONAL
CORPORATION+ 98,812
3,041,319
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
0.39%
1,600 BALL CORPORATION 50,700
3,300 CRANE COMPANY 75,487
6,800 CROWN CORK & SEAL COMPANY
INCORPORATED 72,675
8,500 FORTUNE BRANDS INCORPORATED 225,250
16,300 ILLINOIS TOOL WORKS
INCORPORATED 910,763
23,100 LOCKHEED MARTIN CORPORATION 761,375
24,700 MASCO CORPORATION 460,038
3,200 SNAP-ON INCORPORATED 75,400
4,700 STANLEY WORKS 108,394
2,740,082
------------
FOOD & KINDRED PRODUCTS - 3.38%
2,000 ADOLPH COORS COMPANY 126,375
49,000 ANHEUSER-BUSCH COMPANIES
INCORPORATED 2,073,313
34,200 ARCHER DANIELS MIDLAND COMPANY 294,975
15,000 BESTFOODS INCORPORATED 1,091,250
3,700 BROWN-FORMAN CORPORATION 202,575
22,800 CAMPBELL SOUP COMPANY 589,950
133,800 COCA-COLA COMPANY 7,375,725
22,600 COCA-COLA ENTERPRISES
INCORPORATED 360,187
28,800 CONAGRA FOODS INCORPORATED 577,800
15,400 GENERAL MILLS INCORPORATED 546,700
18,800 H J HEINZ COMPANY 696,775
</TABLE>
45
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FOOD & KINDRED PRODUCTS (continued)
5,800 HERCULES INCORPORATED $ 81,925
7,400 HERSHEY FOODS CORPORATION 400,525
21,900 KELLOGG COMPANY 529,706
78,000 PEPSICO INCORPORATED 3,588,000
7,200 QUAKER OATS COMPANY 569,700
16,600 RALSTON PURINA GROUP 393,213
47,000 SARA LEE CORPORATION 954,687
23,600 SEAGRAM COMPANY LIMITED 1,355,525
30,900 UNILEVER NV ADR 1,490,925
6,100 WM WRIGLEY JR COMPANY 456,738
23,756,569
------------
FOOD STORES - 0.23%
22,900 ALBERTSON'S INCORPORATED 480,900
44,600 KROGER COMPANY+ 1,006,288
7,600 WINN-DIXIE STORES INCORPORATED 109,250
1,596,438
------------
FURNITURE & FIXTURES - 0.02%
10,600 LEGGETT & PLATT 167,612
------------
GENERAL MERCHANDISE STORES - 2.17%
6,000 CONSOLIDATED STORES
CORPORATION+ 81,000
5,100 DILLARDS INCORPORATED 54,187
17,800 DOLLAR GENERAL CORPORATION 298,150
11,200 FEDERATED DEPARTMENT STORES
INCORPORATED+ 292,600
14,100 J C PENNEY COMPANY
INCORPORATED 166,556
25,900 KMART CORPORATION+ 155,400
17,200 MAY DEPARTMENT STORES COMPANY 352,600
18,500 SEARS ROEBUCK & COMPANY 599,770
49,200 TARGET CORPORATION 1,260,750
15,800 TJX COMPANIES INCORPORATED 355,500
241,300 WAL-MART STORES INCORPORATED 11,612,563
15,229,076
------------
HEALTH SERVICES - 0.28%
30,100 HCA - THE HEALTHCARE COMPANY 1,117,463
20,800 HEALTHSOUTH CORPORATION+ 169,000
5,500 MANOR CARE INCORPORATED+ 86,281
17,000 TENET HEALTHCARE CORPORATION 618,375
1,991,119
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS - 0.01%
3,300 MCDERMOTT INTERNATIONAL
INCORPORATED 36,300
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.23%
11,200 BEST BUY COMPANY INCORPORATED+ 712,600
11,100 CIRCUIT CITY STORES 255,300
</TABLE>
46
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (continued)
10,000 RADIOSHACK CORPORATION $ 646,250
1,614,150
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.10%
19,900 HILTON HOTELS CORPORATION 230,094
13,000 MARRIOTT INTERNATIONAL
CLASS A 473,687
703,781
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.70%
17,600 APPLE COMPUTER INCORPORATED+ 453,200
43,800 APPLIED MATERIALS
INCORPORATED+ 2,597,888
17,900 BAKER HUGHES INCORPORATED 664,538
4,500 BLACK & DECKER CORPORATION 153,844
1,200 BRIGGS & STRATTON CORPORATION 45,375
18,700 CATERPILLAR INCORPORATED 631,125
383,400 CISCO SYSTEMS INCORPORATED+ 21,182,850
91,800 COMPAQ COMPUTER CORPORATION 2,531,844
8,400 COMVERSE TECHNOLOGY
INCORPORATED+ 907,200
2,200 CUMMINS ENGINE COMPANY
INCORPORATED 65,863
12,700 DEERE & COMPANY 422,275
139,800 DELL COMPUTER CORPORATION+ 4,307,588
11,000 DOVER CORPORATION 516,313
117,800 EMC CORPORATION+ 11,676,925
17,400 GATEWAY INCORPORATED+ 813,450
53,900 HEWLETT-PACKARD COMPANY 5,228,300
95,100 IBM CORPORATION 10,698,750
8,700 INGERSOLL-RAND COMPANY 294,712
6,900 LEXMARK INTERNATIONAL
INCORPORATED+ 258,750
6,700 PALL CORPORATION 133,580
30,500 PALM INCORPORATED+ 1,614,594
13,800 PITNEY BOWES INCORPORATED 544,238
12,400 SEAGATE TECHNOLOGY
INCORPORATED+ 855,600
32,500 SOLECTRON CORPORATION+ 1,499,062
3,300 TIMKEN COMPANY 45,168
68,143,032
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.37%
13,800 AON CORPORATION 541,650
9,000 HUMANA INCORPORATED+ 96,750
14,700 MARSH & MCLENNAN COMPANIES
INCORPORATED 1,951,425
2,589,825
------------
INSURANCE CARRIERS - 3.36%
7,600 AETNA INCORPORATED 441,275
14,300 AFLAC INCORPORATED 916,094
39,700 ALLSTATE CORPORATION 1,379,575
13,600 AMERICAN GENERAL CORPORATION 1,060,800
125,000 AMERICAN INTERNATIONAL GROUP
INCORPORATED 11,960,938
</TABLE>
47
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS (continued)
9,400 CHUBB CORPORATION $ 743,775
8,500 CIGNA CORPORATION 887,400
8,700 CINCINNATI FINANCIAL
CORPORATION 308,850
17,600 CONSECO INCORPORATED 134,200
12,100 HARTFORD FINANCIAL SERVICES
GROUP 882,544
5,600 JEFFERSON-PILOT CORPORATION 380,100
10,300 LINCOLN NATIONAL CORPORATION 495,688
5,300 LOEWS CORPORATION 441,888
5,300 MBIA INCORPORATED 376,963
5,700 MGIC INVESTMENT CORPORATION 348,413
4,000 PROGRESSIVE CORPORATION 327,500
6,900 SAFECO CORPORATION 188,025
12,100 ST PAUL COMPANIES INCORPORATED 596,680
6,900 TORCHMARK CORPORATION 191,905
8,700 UNITEDHEALTH GROUP
INCORPORATED 859,125
13,000 UNUMPROVIDENT CORP 354,250
3,400 WELLPOINT HEALTH NETWORKS
INCORPORATED+ 326,400
23,602,388
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
5,600 LOUISIANA-PACIFIC CORPORATION 51,450
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 1.99%
24,500 AGILENT TECHNOLOGIES
INCORPORATED+ 1,198,969
7,100 ALLERGAN INCORPORATED 599,506
2,900 BAUSCH & LOMB INCORPORATED 112,919
15,800 BAXTER INTERNATIONAL
INCORPORATED 1,261,038
13,700 BECTON DICKINSON & COMPANY 362,193
9,600 BIOMET INCORPORATED 336,000
22,000 BOSTON SCIENTIFIC CORPORATION+ 361,625
2,700 C R BARD INCORPORATED 114,075
7,700 DANAHER CORPORATION 383,075
16,600 EASTMAN KODAK COMPANY 678,525
16,600 GUIDANT CORPORATION+ 1,173,413
4,600 JOHNSON CONTROLS INCORPORATED 244,663
10,000 KLA-TENCOR CORPORATION+ 411,875
3,600 MALLINCKRODT INCORPORATED 164,250
64,700 MEDTRONIC INCORPORATED 3,352,269
2,500 MILLIPORE CORPORATION 121,093
6,000 PARKER-HANNIFIN CORPORATION 202,500
11,300 PE CORPORATION - PE BIOSYSTEMS
GROUP 1,316,450
2,400 POLAROID CORPORATION 32,250
4,500 ST JUDE MEDICAL INCORPORATED+ 229,500
2,600 TEKTRONIX INCORPORATED 199,712
9,400 TERADYNE INCORPORATED+ 329,000
9,400 THERMO ELECTRON CORPORATION+ 244,400
36,000 XEROX CORPORATION 542,250
13,971,550
------------
</TABLE>
48
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
METAL MINING - 0.16%
21,400 BARRICK GOLD CORPORATION $ 326,350
8,300 FREEPORT MCMORAN INCORPORATED
CLASS B+ 73,144
14,200 HOMESTAKE MINING COMPANY+ 73,662
9,800 INCO LIMITED+ 158,025
9,100 NEWMONT MINING CORPORATION 154,700
4,300 PHELPS DODGE CORPORATION 179,525
17,700 PLACER DOME INCORPORATED 167,044
1,132,450
------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.03%
5,500 VULCAN MATERIALS COMPANY 221,030
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.77%
2,200 ARMSTRONG HOLDINGS
INCORPORATED 26,262
9,300 HASBRO INCORPORATED 106,369
23,000 MATTEL INCORPORATED 257,313
7,800 TIFFANY & COMPANY 300,787
91,000 TYCO INTERNATIONAL LIMITED 4,720,625
5,411,356
------------
MISCELLANEOUS RETAIL - 0.71%
15,300 BED BATH & BEYOND
INCORPORATED+ 373,177
24,100 COSTCO WHOLESALE CORPORATION+ 841,994
21,100 CVS CORPORATION 977,194
2,000 LONGS DRUG STORES INCORPORATED 38,250
16,500 OFFICE DEPOT INCORPORATED+ 128,906
24,500 STAPLES INCORPORATED+ 347,594
11,700 TOYS R US INCORPORATED+ 190,125
54,600 WALGREEN COMPANY 2,071,387
4,968,627
------------
MOTION PICTURES - 0.80%
71,500 TIME WARNER INCORPORATED 5,594,875
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.51%
72,000 AMERICAN EXPRESS COMPANY 4,374,000
39,400 ASSOCIATES FIRST CAPITAL
CORPORATION 1,497,200
10,600 CAPITAL ONE FINANCIAL
CORPORATION 742,662
14,200 CIT GROUP INCORPORATED 248,500
6,200 COUNTRYWIDE CREDIT INDUSTRIES
INCORPORATED 234,050
37,600 FEDERAL HOME LOAN MORTGAGE
CORPORATION 2,032,750
54,400 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 3,889,600
25,500 HOUSEHOLD INTERNATIONAL
INCORPORATED 1,443,938
46,000 MBNA CORPORATION 1,771,000
7,700 PROVIDIAN FINANCIAL
CORPORATION 977,900
8,400 USA EDUCATION INCORPORATED 404,775
17,616,375
------------
</TABLE>
49
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION - 1.45%
13,100 ANADARKO PETROLEUM CORPORATION $ 870,626
6,600 APACHE CORPORATION 390,225
11,600 BURLINGTON RESOURCES
INCORPORATED 427,025
6,900 DEVON ENERGY CORPORATION 415,035
39,900 ENRON CORPORATION 3,496,238
5,100 KERR-MCGEE CORPORATION 337,875
19,900 OCCIDENTAL PETROLEUM
CORPORATION 434,069
5,100 ROWAN COMPANIES INCORPORATED+ 147,900
30,800 SCHLUMBERGER LIMITED 2,535,225
11,400 TRANSOCEAN SEDCO FOREX
INCORPORATED+ 668,325
16,900 USX-MARATHON GROUP
INCORPORATED 479,537
10,202,080
------------
PAPER & ALLIED PRODUCTS - 0.93%
6,000 AVERY DENNISON CORPORATION 278,250
2,900 BEMIS COMPANY INCORPORATED 93,163
3,100 BOISE CASCADE CORPORATION 82,343
11,100 FORT JAMES CORPORATION 339,243
9,200 GEORGIA-PACIFIC GROUP 216,200
26,100 INTERNATIONAL PAPER COMPANY 748,743
29,100 KIMBERLY-CLARK CORPORATION 1,624,144
5,500 MEAD CORPORATION 128,563
21,400 MINNESOTA MINING AND
MANUFACTURING COMPANY 1,950,075
9,200 PACTIV CORPORATION+ 102,925
1,500 POTLATCH CORPORATION 47,438
2,800 TEMPLE-INLAND INCORPORATED 106,050
5,400 WESTVACO CORPORATION 144,113
11,900 WEYERHAEUSER COMPANY 480,463
5,900 WILLAMETTE INDUSTRIES
INCORPORATED 165,200
6,506,913
------------
PERSONAL SERVICES - 0.03%
5,300 H&R BLOCK INCORPORATED 196,431
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.59%
4,900 AMERADA HESS CORPORATION 327,994
3,800 ASHLAND INCORPORATED 128,013
35,300 CHEVRON CORPORATION 3,009,325
11,600 COASTAL CORPORATION 859,850
33,600 CONOCO INCORPORATED CLASS B 905,100
188,200 EXXON MOBIL CORPORATION 16,773,325
13,800 PHILLIPS PETROLEUM COMPANY 865,950
115,800 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES ADR 6,940,763
4,700 SUNOCO INCORPORATED 126,606
29,800 TEXACO INCORPORATED 1,564,500
7,800 TOSCO CORPORATION 243,263
13,100 UNOCAL CORPORATION 464,230
32,208,919
------------
</TABLE>
50
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES - 0.28%
11,800 ALCAN ALUMINUM LIMITED $ 341,463
46,800 ALCOA INCORPORATED 1,184,625
4,400 ALLEGHENY TECHNOLOGIES
INCORPORATED 79,750
7,100 BETHLEHEM STEEL CORPORATION+ 21,300
6,900 ENGELHARD CORPORATION 112,125
4,400 NUCOR CORPORATION 132,550
4,800 USX-US STEEL GROUP
INCORPORATED 72,900
4,600 WORTHINGTON INDUSTRIES
INCORPORATED 43,125
1,987,838
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.19%
3,500 AMERICAN GREETINGS CORPORATION 61,250
4,700 DOW JONES & COMPANY
INCORPORATED 284,350
14,200 GANNETT COMPANY INCORPORATED 752,600
4,000 HARCOURT GENERAL INCORPORATED 236,000
4,100 KNIGHT-RIDDER INCORPORATED 208,330
10,500 MCGRAW-HILL COMPANIES
INCORPORATED 667,406
2,700 MEREDITH CORPORATION 79,650
9,000 NEW YORK TIMES COMPANY 353,813
6,600 R R DONNELLEY & SONS COMPANY 162,113
16,700 TRIBUNE COMPANY 728,538
81,900 VIACOM INCORPORATED CLASS B+ 4,791,150
8,325,200
------------
RAILROAD TRANSPORTATION - 0.22%
21,800 BURLINGTON NORTHERN SANTA FE
CORPORATION 470,063
11,800 CSX CORPORATION 257,387
20,700 NORFOLK SOUTHERN CORPORATION 302,738
13,400 UNION PACIFIC CORPORATION 520,925
1,551,113
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.20%
3,900 COOPER TIRE & RUBBER COMPANY 39,243
8,400 GOODYEAR TIRE & RUBBER COMPANY 151,200
14,400 NEWELL RUBBERMAID INCORPORATED 328,500
14,600 NIKE INCORPORATED CLASS B 584,913
3,100 REEBOK INTERNATIONAL LIMITED+ 58,319
4,500 SEALED AIR CORPORATION+ 203,625
3,100 TUPPERWARE CORPORATION 55,800
1,421,600
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.05%
5,800 BEAR STEARNS COMPANIES
INCORPORATED 365,400
74,600 CHARLES SCHWAB CORPORATION 2,648,300
13,200 FRANKLIN RESOURCES
INCORPORATED 586,476
6,600 LEHMAN BROTHERS HOLDING
INCORPORATED 975,150
43,400 MERRILL LYNCH & COMPANY
INCORPORATED 2,864,400
60,800 MORGAN STANLEY DEAN WITTER &
COMPANY 5,559,400
</TABLE>
51
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
8,000 PAINE WEBBER GROUP
INCORPORATED $ 545,000
12,100 STILWELL FINANCIAL
INCORPORATED+ 526,350
6,600 T ROWE PRICE ASSOCIATES 309,788
14,380,264
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.68%
15,901 CORNING INCORPORATED 4,722,463
7,900 OWENS-ILLINOIS INCORPORATED+ 73,075
4,795,538
------------
TEXTILE MILL PRODUCTS - 0.01%
1,800 RUSSELL CORPORATION 28,575
1,000 SPRINGS INDUSTRIES
INCORPORATED CLASS A 28,188
56,763
------------
TOBACCO PRODUCTS - 0.54%
121,700 PHILIP MORRIS COMPANIES
INCORPORATED 3,582,544
8,800 UST INCORPORATED 201,300
3,783,844
------------
TRANSPORTATION BY AIR - 0.29%
8,100 AMR CORPORATION+ 264,769
6,600 DELTA AIRLINES INCORPORATED 292,875
15,400 FEDEX CORPORATION+ 682,836
26,900 SOUTHWEST AIRLINES COMPANY 652,325
3,600 US AIRWAYS GROUP INCORPORATED+ 109,575
2,002,380
------------
TRANSPORTATION EQUIPMENT - 2.12%
5,500 B F GOODRICH COMPANY 215,531
48,500 BOEING COMPANY 3,055,500
4,700 BRUNSWICK CORPORATION 85,775
8,100 DANA CORPORATION 174,150
30,300 DELPHI AUTOMOTIVE SYSTEMS
CORPORATION 458,287
102,300 FORD MOTOR COMPANY 2,589,469
10,700 GENERAL DYNAMICS CORPORATION 672,094
29,000 GENERAL MOTORS CORPORATION 1,885,000
16,300 HARLEY-DAVIDSON INCORPORATED 780,362
43,300 HONEYWELL INTERNATIONAL
INCORPORATED 1,542,562
4,700 ITT INDUSTRIES INCORPORATED 152,456
3,200 NAVISTAR INTERNATIONAL
CORPORATION+ 95,800
3,900 NORTHROP GRUMMAN CORPORATION 354,413
4,100 PACCAR INCORPORATED 151,956
10,000 ROCKWELL INTERNATIONAL
CORPORATION 302,500
7,700 TEXTRON INCORPORATED 355,163
6,700 TRW INCORPORATED 272,188
25,300 UNITED TECHNOLOGIES
CORPORATION 1,752,025
14,895,231
------------
</TABLE>
52
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TRANSPORTATION SERVICES - 0.03%
7,000 SABRE HOLDINGS CORPORATION $ 202,563
------------
WATER TRANSPORTATION - 0.11%
31,800 CARNIVAL CORPORATION 783,075
------------
WHOLESALE TRADE-DURABLE GOODS - 0.06%
9,500 GENUINE PARTS COMPANY 181,094
7,100 VISTEON CORPORATION 107,387
5,100 W W GRAINGER INCORPORATED 134,194
422,675
------------
WHOLESALE TRADE-NONDURABLE GOODS - 0.50%
15,000 CARDINAL HEALTH INCORPORATED 1,322,812
26,900 SAFEWAY INCORPORATED+ 1,255,894
7,100 SUPERVALU INCORPORATED 106,943
18,000 SYSCO CORPORATION 833,625
3,519,274
------------
682,207,532
TOTAL COMMON STOCK (COST $262,341,610)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITYDATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.93%
TIME DEPOSITS - 2.74%
$19,270,078 CAISSE DES DEPOTS ET
CONSIGNATIONS 6.73% 10/02/00 19,270,078
------------
U.S. TREASURY BILLS - 0.19%
1,385,000 U.S. TREASURY BILLS 5.80[::] 02/01/01 1,356,603
------------
20,626,681
TOTAL SHORT-TERM INSTRUMENTS (COST
$20,627,657)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $282,969,267)* 100.05% $702,834,213
OTHER ASSETS AND LIABILITIES, NET (0.05) (363,366)
------- ------------
TOTAL NET ASSETS 100.00% $702,470,847
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
** SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $1,028,084.
[::] YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $283,230,670 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $446,992,845
GROSS UNREALIZED DEPRECIATION (27,389,302)
-----------
NET UNREALIZED APPRECIATION $419,603,543
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
53
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.55%
AMUSEMENT & RECREATION SERVICES - 1.00%
36,700 WALT DISNEY COMPANY $ 1,403,775
------------
APPAREL & ACCESSORY STORES - 0.55%
35,200 LIMITED INCORPORATED 776,600
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.80%
40,500 LOWE'S COMPANIES INCORPORATED 1,817,437
33,500 SHERWIN-WILLIAMS COMPANY 716,063
2,533,500
------------
CHEMICALS & ALLIED PRODUCTS - 8.15%
33,300 AMERICAN HOME PRODUCTS
CORPORATION 1,883,531
33,600 BRISTOL-MYERS SQUIBB COMPANY 1,919,400
48,850 CLOROX COMPANY 1,932,628
15,300 JOHNSON & JOHNSON 1,437,244
26,100 PHARMACIA CORPORATION 1,570,894
9,100 TEVA PHARMACEUTICAL INDUSTRIES
LIMITED ADR 666,006
31,650 WATSON PHARMACEUTICALS
INCORPORATED+ 2,053,294
11,462,997
------------
COMMUNICATIONS - 1.72%
46,400 ALLTEL CORPORATION 2,421,500
------------
DEPOSITORY INSTITUTIONS - 14.59%
52,550 BANK OF AMERICA CORPORATION+ 2,752,306
42,500 BANK OF NEW YORK COMPANY
INCORPORATED 2,382,656
50,020 CHASE MANHATTAN CORPORATION 2,310,299
145,033 CITIGROUP INCORPORATED 7,840,847
60,525 FIFTH THIRD BANCORP 3,260,784
42,600 MELLON FINANCIAL CORPORATION 1,975,575
20,522,467
------------
EATING & DRINKING PLACES - 0.38%
17,950 BRINKER INTERNATIONAL
INCORPORATED+ 540,744
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.68%
20,200 MONTANA POWER COMPANY 674,175
39,900 WILLIAMS COMPANIES
INCORPORATED 1,685,775
2,359,950
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 12.02%
72,950 CYPRESS SEMICONDUCTOR
CORPORATION+ 3,031,984
71,500 GENERAL ELECTRIC COMPANY 4,124,656
17,500 INTEL CORPORATION 728,438
69,052 KONINKLIJKE PHILIPS
ELECTRONICS NV 2,934,710
88,750 MOLEX INCORPORATED CLASS A 3,677,578
85,450 MOTOROLA INCORPORATED 2,413,963
16,911,329
------------
</TABLE>
54
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FOOD & KINDRED PRODUCTS - 2.41%
26,800 ANHEUSER-BUSCH COMPANIES
INCORPORATED $ 1,133,975
49,150 PEPSICO INCORPORATED 2,260,900
3,394,875
------------
FOOD STORES - 1.51%
94,400 KROGER COMPANY+ 2,129,900
------------
GENERAL MERCHANDISE STORES - 1.27%
69,800 TARGET CORPORATION 1,788,625
------------
HEALTH SERVICES - 1.68%
64,950 TENET HEALTHCARE CORPORATION 2,362,556
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.58%
115,800 COMPAQ COMPUTER CORPORATION 3,193,764
66,375 IBM CORPORATION 7,467,188
10,660,952
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.66%
7,000 MARSH & MCLENNAN COMPANIES
INCORPORATED 929,250
------------
INSURANCE CARRIERS - 8.87%
76,152 AMERICAN INTERNATIONAL GROUP
INCORPORATED 7,286,794
14,950 CIGNA CORPORATION 1,560,780
49,700 HARTFORD FINANCIAL SERVICES
GROUP 3,624,994
12,472,568
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 1.54%
18,600 BAXTER INTERNATIONAL
INCORPORATED 1,484,513
12,925 JOHNSON CONTROLS INCORPORATED 687,448
2,171,961
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.48%
67,200 TYCO INTERNATIONAL LIMITED 3,486,000
------------
MISCELLANEOUS RETAIL - 4.22%
101,600 COSTCO WHOLESALE CORPORATION+ 3,549,650
24,000 CVS CORPORATION 1,111,500
66,000 FAMILY DOLLAR STORES
INCORPORATED 1,270,500
5,931,650
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 4.09%
79,000 ASSOCIATES FIRST CAPITAL
CORPORATION 3,002,000
48,650 HOUSEHOLD INTERNATIONAL
INCORPORATED 2,754,806
5,756,806
------------
OIL & GAS EXTRACTION - 2.55%
16,100 ANADARKO PETROLEUM CORPORATION 1,070,006
17,400 ENRON CORPORATION 1,524,675
</TABLE>
55
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION (continued)
17,000 TRANSOCEAN SEDCO FOREX
INCORPORATED+ $ 996,625
3,591,306
------------
PAPER & ALLIED PRODUCTS - 2.35%
33,100 KIMBERLY-CLARK CORPORATION 1,847,394
16,000 MINNESOTA MINING AND
MANUFACTURING COMPANY 1,458,000
3,305,394
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.47%
15,100 COASTAL CORPORATION 1,119,287
58,000 EXXON MOBIL CORPORATION 5,169,250
6,288,537
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.85%
20,400 VIACOM INCORPORATED CLASS A+ 1,193,400
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 3.33%
51,200 MORGAN STANLEY DEAN WITTER &
COMPANY 4,681,600
------------
TOBACCO PRODUCTS - 1.34%
63,950 PHILIP MORRIS COMPANIES
INCORPORATED 1,882,528
------------
TRANSPORTATION EQUIPMENT - 4.46%
27,057 FORD MOTOR COMPANY W/I 684,880
32,850 GENERAL DYNAMICS CORPORATION 2,063,391
44,947 GENERAL MOTORS CLASS H+ 1,671,129
26,750 UNITED TECHNOLOGIES
CORPORATION 1,852,438
6,271,838
------------
137,232,608
TOTAL COMMON STOCK (COST $103,325,732)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.61%
REPURCHASE AGREEMENTS - 1.61%
$2,270,000 GOLDMAN SACHS REPURCHASE
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.58% 10/2/00 2,270,000
------------
2,270,000
TOTAL REPURCHASE AGREEMENTS - OPEN (COST
$2,270,000)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $105,595,732)* 99.16% $139,502,608
OTHER ASSETS AND LIABILITIES, NET 0.84 1,178,784
------- ------------
TOTAL NET ASSETS 100.00% $140,681,392
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $105,694,934 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $37,171,906
GROSS UNREALIZED DEPRECIATION (3,364,232)
----------
NET UNREALIZED APPRECIATION $33,807,674
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 99.14%
AMUSEMENT & RECREATION SERVICES - 0.82%
93,500 WALT DISNEY COMPANY $ 3,576,375
------------
APPAREL & ACCESSORY STORES - 0.77%
58,200 KOHL'S CORPORATION+ 3,357,412
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.46%
82,500 HOME DEPOT INCORPORATED 4,377,656
43,400 LOWE'S COMPANIES INCORPORATED 1,947,575
6,325,231
------------
BUSINESS SERVICES - 10.45%
82,258 AMERICA ONLINE INCORPORATED+ 4,421,368
52,500 COMMERCE ONE INCORPORATED+ 4,121,250
66,500 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 2,265,156
202,669 MICROSOFT CORPORATION+ 12,210,807
108,500 ORACLE CORPORATION+ 8,544,375
58,304 SUN MICROSYSTEMS INCORPORATED+ 6,806,992
15,000 TIBCO SOFTWARE INCORPORATED+ 1,266,563
39,575 VERITAS SOFTWARE CORPORATION+ 5,619,650
45,256,161
------------
CHEMICALS & ALLIED PRODUCTS - 10.68%
64,127 ABBOTT LABORATORIES 3,050,040
59,400 CLOROX COMPANY 2,350,012
103,000 COLGATE-PALMOLIVE COMPANY 4,861,600
37,711 ELI LILLY & COMPANY 3,059,304
13,000 GENENTECH INCORPORATED+ 2,413,937
59,076 GILLETTE COMPANY 1,823,971
48,425 JOHNSON & JOHNSON 4,548,923
72,152 MERCK & COMPANY INCORPORATED 5,370,815
231,751 PFIZER INCORPORATED 10,414,311
24,500 PHARMACIA CORPORATION 1,474,594
50,500 PRAXAIR INCORPORATED 1,887,438
38,244 PROCTER & GAMBLE COMPANY 2,562,348
52,725 SCHERING-PLOUGH CORPORATION 2,451,713
46,269,006
------------
COMMUNICATIONS - 5.24%
88,500 360NETWORKS INCORPORATED+ 1,736,813
57,200 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 3,231,800
42,500 NEXTEL COMMUNICATIONS
INCORPORATED+ 1,986,875
75,500 NEXTLINK COMMUNICATIONS
INCORPORATED+ 2,656,656
56,000 QWEST COMMUNICATIONS
INTERNATIONAL INCORPORATED+ 2,691,500
141,204 SBC COMMUNICATIONS
INCORPORATED 7,060,200
110,500 WORLDCOM INCORPORATED+ 3,356,437
22,720,281
------------
</TABLE>
57
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS - 5.68%
77,751 CHASE MANHATTAN CORPORATION $ 3,591,124
276,132 CITIGROUP INCORPORATED 14,928,386
28,750 FIFTH THIRD BANCORP 1,548,906
25,000 GOLDEN WEST FINANCIAL
CORPORATION 1,340,625
24,650 STATE STREET CORPORATION 3,204,500
24,613,541
------------
EATING & DRINKING PLACES - 0.46%
66,864 MCDONALD'S CORPORATION 2,018,457
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.56%
182,600 AES CORPORATION+ 12,508,100
29,000 SOUTHERN ENERGY INCORPORATED+ 909,875
47,830 WILLIAMS COMPANIES
INCORPORATED 2,020,818
15,438,793
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 16.70%
40,900 CELESTICA INCORPORATED+ 2,832,325
390,726 GENERAL ELECTRIC COMPANY 22,540,006
250,032 INTEL CORPORATION 10,407,582
77,800 JDS UNIPHASE CORPORATION+ 7,366,687
24,000 MICRON TECHNOLOGY
INCORPORATED+ 1,104,000
34,300 NETWORK APPLIANCE
INCORPORATED+ 4,368,962
219,372 NORTEL NETWORKS CORPORATION 13,066,345
15,500 PMC-SIERRA INCORPORATED+ 3,336,375
32,100 SANMINA CORPORATION+ 3,005,363
64,488 TEXAS INSTRUMENTS INCORPORATED 3,043,028
32,000 TYCOM LIMITED+ 1,228,000
72,298,673
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.61%
53,600 HALLIBURTON COMPANY 2,623,050
------------
FOOD & KINDRED PRODUCTS - 3.05%
72,800 ANHEUSER-BUSCH COMPANIES
INCORPORATED 3,080,350
119,020 COCA-COLA COMPANY 6,560,978
77,600 PEPSICO INCORPORATED 3,569,600
13,210,928
------------
GENERAL MERCHANDISE STORES - 3.40%
249,040 TARGET CORPORATION 6,381,650
173,104 WAL-MART STORES INCORPORATED 8,330,630
14,712,280
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 10.92%
351,960 CISCO SYSTEMS INCORPORATED+ 19,445,790
138,236 EMC CORPORATION+ 13,702,644
43,076 HEWLETT-PACKARD COMPANY 4,178,372
71,482 IBM CORPORATION 8,041,725
</TABLE>
58
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
36,000 PALM INCORPORATED+ $ 1,905,750
47,274,281
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.58%
18,800 MARSH & MCLENNAN COMPANIES
INCORPORATED 2,495,700
------------
INSURANCE CARRIERS - 4.15%
141,031 AMERICAN INTERNATIONAL GROUP
INCORPORATED 13,494,904
54,000 AXA FINANCIAL INCORPORATED 2,750,625
35,000 ST. PAUL COMPANIES
INCORPORATED 1,725,938
17,971,467
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 1.48%
44,069 BAXTER INTERNATIONAL
INCORPORATED 3,517,257
37,488 DANAHER CORPORATION 1,865,028
19,402 MEDTRONIC INCORPORATED 1,005,266
6,387,551
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.42%
118,900 TYCO INTERNATIONAL LIMITED 6,167,937
------------
MISCELLANEOUS RETAIL - 0.69%
61,800 BED BATH & BEYOND
INCORPORATED+ 1,507,341
36,000 DOLLAR TREE STORES
INCORPORATED+ 1,460,250
2,967,591
------------
MOTION PICTURES - 0.74%
41,000 TIME WARNER INCORPORATED 3,208,250
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.95%
94,750 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6,774,625
106,140 HOUSEHOLD INTERNATIONAL
INCORPORATED 6,010,178
12,784,803
------------
OIL & GAS EXTRACTION - 1.86%
83,000 DIAMOND OFFSHORE DRILLING
INCORPORATED 3,403,000
29,000 ENRON CORPORATION 2,541,125
35,669 TRANSOCEAN SEDCO FOREX
INCORPORATED+ 2,091,095
8,035,220
------------
PAPER & ALLIED PRODUCTS - 0.54%
44,600 INTERNATIONAL PAPER COMPANY 1,279,463
18,800 KIMBERLY-CLARK CORPORATION 1,049,275
2,328,738
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.62%
36,773 CHEVRON CORPORATION 3,134,898
34,100 COASTAL CORPORATION 2,527,662
113,952 EXXON MOBIL CORPORATION 10,155,972
</TABLE>
59
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PETROLEUM REFINING & RELATED INDUSTRIES (continued)
70,216 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES ADR $ 4,208,572
20,027,104
------------
PRIMARY METAL INDUSTRIES - 0.63%
107,764 ALCOA INCORPORATED 2,727,776
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.48%
35,196 VIACOM INCORPORATED CLASS B+ 2,058,966
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.64%
25,500 FRANKLIN RESOURCES
INCORPORATED 1,132,965
22,000 GOLDMAN SACHS GROUP
INCORPORATED 2,506,625
45,600 MERRILL LYNCH & COMPANY
INCORPORATED 3,009,600
52,116 MORGAN STANLEY DEAN WITTER &
COMPANY 4,765,357
11,414,547
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.89%
27,500 CORNING INCORPORATED 8,167,500
------------
TRANSPORTATION EQUIPMENT - 0.67%
41,600 UNITED TECHNOLOGIES
CORPORATION 2,880,800
------------
429,318,419
TOTAL COMMON STOCK (COST $316,283,390)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.25%
REPURCHASE AGREEMENTS - 1.25%
$5,408,000 GOLDMAN SACHS REPURCHASE
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.58% 10/02/00 5,408,000
------------
5,408,000
TOTAL SHORT-TERM INSTRUMENTS (COST
$5,408,000)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $321,691,390)* 100.39% $434,726,419
OTHER ASSETS AND LIABILITIES, NET (0.39) (1,693,789)
------- ------------
TOTAL NET ASSETS 100.00% $433,032,630
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $321,842,936 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $130,912,520
GROSS UNREALIZED DEPRECIATION (18,029,037)
-----------
NET UNREALIZED APPRECIATION $112,883,483
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
60
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
GROWTH EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
AFFILIATED STOCK PORTFOLIOS (97.20%)
N/A WELLS FARGO INTERNATIONAL
EQUITY PORTFOLIO $102,346,668
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO 133,320,177
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO 250,082,457
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO 72,040,136
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 72,258,873
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 71,367,665
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 72,524,689
AFFILIATED STOCK FUNDS (3.57%)
$2,822,148 WELLS FARGO OTC GROWTH FUND 28,447,237
802,387,902
TOTAL INVESTMENTS IN AFFILIATED STOCK
PORTFOLIOS/FUNDS (100.77%) (COST
$455,611,498)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN AFFILIATED STOCK
PORTFOLIOS/ FUNDS (COST $455,611,498)* 100.77% $802,387,902
OTHER ASSETS AND LIABILITIES, NET (0.77) (6,124,598)
------- ------------
TOTAL NET ASSETS 100.00% $796,263,304
------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
61
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INDEX PORTFOLIO $984,632,276
------------
984,632,276
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.17%) (COST $520,096,024)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $520,096,024)* 100.17% $984,632,276
OTHER ASSETS AND LIABILITIES, NET (0.17) (1,657,760)
------- ------------
TOTAL NET ASSETS 100.00% $982,974,516
------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
INTERNATIONAL FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO $292,660,049
------------
292,660,049
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(99.57%) (COST $282,634,860)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $282,634,860)* 99.57% $292,660,049
OTHER ASSETS AND LIABILITIES, NET 0.43 1,276,286
------- ------------
TOTAL NET ASSETS 100.00% $293,936,335
------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
63
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCKS - 92.22%
AUSTRALIA - 3.57%
220,000 BROKEN HILL PROPRIETARY
COMPANY LIMITED (METALS &
MINING) $ 2,281,573
920,000 FOSTER'S BREWING GROUP LIMITED
(BEVERAGES, FOOD & TOBACCO) 2,142,394
275,000 NEWS CORPORATION LIMITED
(MEDIA - BROADCASTING &
PUBLISHING) 3,872,121
8,296,088
------------
BRAZIL - 0.44%
62,000 ARACRUZ CELULOSE SA ADR
(FOREST PRODUCTS & PAPER) 1,026,875
------------
FINLAND - 0.98%
57,000 NOKIA CORPORATION ADR
(COMMUNICATIONS) 2,269,312
------------
FRANCE - 12.41%
41,000 AXA UAP (INSURANCE) 5,354,544
15,000 CAP GEMINI SA (COMPUTER
SOFTWARE & PROCESSING) 2,819,342
197,000 GROUPE DANONE ADR (BEVERAGES,
FOOD & TOBACCO) 5,496,300
84,000 STMICROELECTRONICS NV
(ELECTRONICS) 4,117,565
24,000 SUEZ LYONNAISE DES EAUX SA
(INDUSTRIAL - DIVERSIFIED) 3,721,002
33,000 TOTAL FINA ELF (OIL & GAS) 4,828,091
33,000 VIVENDI (INDUSTRIAL -
DIVERSIFIED) 2,451,901
28,788,745
------------
GERMANY - 8.01%
12,000 ALLIANZ AG (INSURANCE) 3,933,843
29,000 DEUTSCHE BANK AG - REG
(BANKING) 2,405,486
36,000 INFINEON TECHNOLOGIES AG
(ELECTRONICS)+ 1,729,726
65,000 METRO AG (RETAILERS) 2,661,389
48,000 SGL CARBON AG (CHEMICALS) 3,049,655
17,000 SIEMENS AG (INDUSTRIAL -
DIVERSIFIED) 2,186,424
51,000 VEBA AG (INDUSTRIAL -
DIVERSIFIED) 2,628,209
18,594,732
------------
HONG KONG - 3.41%
250,000 CHEUNG KONG HOLDINGS LIMITED
(REAL ESTATE) 3,022,040
470,000 CITIC PACIFIC LIMITED
(INDUSTRIAL - DIVERSIFIED) 2,025,423
204,800 HSBC HOLDINGS PLC (BANKING) 2,863,091
7,910,554
------------
HUNGARY - 0.64%
63,000 MATAV RT ADR (MEDIA -
BROADCASTING & PUBLISHING) 1,484,438
------------
IRELAND - 5.30%
114,000 ELAN CORPORATION PLC ADR
(PHARMACEUTICALS)+ 6,241,500
164,800 RYANAIR HOLDINGS PLC
(AIRLINES)+ 1,285,542
124,000 RYANAIR HOLDINGS PLC ADR
(AIRLINES)+ 4,774,000
12,301,042
------------
</TABLE>
64
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ITALY - 3.23%
580,000 BANCA INTESA SPA (BANKING) $ 2,236,590
435,000 ENI SPA (OIL & GAS) 2,303,125
180,000 SAN PAOLO IMI SPA (BANKING) 2,925,762
7,465,477
------------
JAPAN - 13.90%
185,000 FUJITSU LIMITED (ELECTRONICS) 4,297,150
310,000 NIKKO SECURITIES COMPANY
LIMITED (FINANCIAL SERVICES) 2,754,025
330 NIPPON TELEGRAPH & TELEPHONE
CORPORATION (COMMUNICATIONS) 3,237,090
137,000 NOMURA SECURITIES COMPANY
LIMITED (FINANCIAL SERVICES) 2,979,363
107,000 OMRON CORPORATION
(ELECTRONICS) 2,817,093
4,300 ORACLE CORPORATION JAPAN
(COMPUTER SOFTWARE &
PROCESSING) 990,043
39,000 SECOM COMPANY LIMITED
(COMMERCIAL SERVICES) 3,136,313
40,000 SEVEN ELEVEN JAPAN COMPANY
LIMITED (RETAILERS) 2,324,635
19,000 SONY CORPORATION (ELECTRONICS) 1,927,078
49,000 TAKEDA CHEMICAL INDUSTRIES
(PHARMACEUTICALS) 3,237,646
66,000 TOYOTA MOTOR CORPORATION
(AUTOMOTIVE) 2,607,996
90,000 USHIO INCORPORATED
(ELECTRONICS) 1,940,589
32,249,021
------------
KOREA, REPUBLIC OF - 0.99%
68,000 KOREA TELECOM CORPORATION SP
ADR (COMMUNICATIONS) 2,286,500
------------
MEXICO - 4.01%
893,000 GRUPO TELEVISA SA SER CPO
(MEDIA - BROADCASTING &
PUBLISHING) 2,590,864
1,619,000 TELEFONOS DE MEXICO SA
(COMMUNICATIONS) 4,328,634
1,137,000 WALMART DE MEXICO (RETAILERS)+ 2,378,975
9,298,473
------------
NETHERLANDS - 4.85%
93,000 KONINKLIJKE AHOLD NV (FOOD
RETAILERS) 2,636,760
126,500 KONINKLIJKE PHILIPS
ELECTRONICS NV (ELECTRONICS) 5,376,250
54,000 ROYAL DUTCH PETROLEUM COMPANY
(OIL & GAS) 3,236,625
11,249,635
------------
NORWAY - 1.15%
157,000 PETROLEUM GEO-SERVICES ASA
(OIL & GAS) + 2,663,248
------------
SINGAPORE - 1.60%
335,560 DBS GROUP HOLDINGS LIMITED
(FINANCIAL SERVICES) 3,702,142
------------
SPAIN - 2.12%
255,000 BANCO SANTANDER CENTRAL
HISPANO SA (BANKING) 2,799,223
107,000 TELEFONICA SA
(COMMUNICATIONS)+ 2,119,713
4,918,936
------------
SWEDEN - 1.60%
250,000 TELEFONAKTIEBOLAGET LM
ERICSSON ADR (COMMUNICATIONS) 3,703,125
------------
</TABLE>
65
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SWITZERLAND - 6.26%
3,500 ADECCO SA (COMMERCIAL
SERVICES) $ 2,267,941
900 JULIUS BAER HOLDING AG
(FINANCIAL SERVICES) 4,668,083
1,800 NESTLE SA (BEVERAGES, FOOD &
TOBACCO) 3,749,045
2,500 NOVARTIS AG (PHARMACEUTICALS) 3,832,936
14,518,005
------------
TAIWAN - 1.70%
105,500 ASE TEST LIMITED
(ELECTRONICS)+ 2,215,500
259,606 RITEK CORPORATION GDR
(ELECTRONICS)+ 1,715,243
3,930,743
------------
UNITED KINGDOM - 16.05%
335,000 AMVESCAP PLC (FINANCIAL
SERVICES) 7,251,157
146,000 ARM HOLDINGS PLC ADR
(ELECTRONICS)+ 4,808,875
336,000 BP AMOCO PLC (OIL & GAS) 2,990,592
167,000 BRITISH TELECOMMUNICATIONS PLC
(COMMUNICATIONS) 1,755,527
277,000 DIAGEO PLC (BEVERAGE, FOOD &
TOBACCO) 2,475,697
1,030,000 INVENSYS PLC (COMMERCIAL
SERVICES) 2,250,020
48,000 NDS GROUP PLC ADR (MEDIA -
BROADCASTING & PUBLISHING)+ 3,696,000
314,000 ROYAL BANK OF SCOTLAND GROUP
PLC (BANKING) 6,629,477
43,000 SMITHKLINE BEECHAM PLC ADR
(PHARMACEUTICALS) 2,950,875
650,000 VODAFONE AIRTOUCH PLC
(COMMUNICATIONS) 2,426,589
37,234,809
------------
213,891,900
TOTAL COMMON STOCKS (COST $200,644,037)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 7.48%
REPURCHASE AGREEMENT - 7.48%
$17,339,796 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 17,339,796
------------
17,339,796
TOTAL SHORT-TERM INSTRUMENTS (COST
$17,339,796)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $217,983,833)* 99.70% $231,231,696
OTHER ASSETS AND LIABILITIES, NET 0.30 699,682
------- ------------
TOTAL NET ASSETS 100.00% $231,931,378
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $218,291,850 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $35,646,939
GROSS UNREALIZED DEPRECIATION (22,707,093)
-----------
NET UNREALIZED APPRECIATION $12,939,846
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO $2,316,441,712
--------------
2,316,441,712
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,746,313,645)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,746,313,645)* 99.69% $2,316,441,712
OTHER ASSETS AND LIABILITIES, NET 0.31 7,314,959
------- --------------
TOTAL NET ASSETS 100.00% $2,323,756,671
------- --------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
67
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 95.86%
BUSINESS SERVICES - 27.62%
61,215 ADMINISTAFF INCORPORATED+ $ 4,633,975
119,155 AGILE SOFTWARE CORPORATION+ 10,716,503
9,375 ALTRIS SOFTWARE INCORPORATED+ 12,891
30,700 ANSWERTHINK INCORPORATED+ 498,875
12,575 BACKWEB TECHNOLOGIES LIMITED+ 127,518
95,010 CACHEFLOW INCORPORATED+ 13,586,430
137,725 CLICK COMMERCE INCORPORATED+ 5,887,744
190,668 COMMERCE ONE INCORPORATED+ 14,967,438
40,000 DSP GROUP INCORPORATED+ 1,495,000
62,030 E.PIPHANY INCORPORATED+ 4,780,187
330,550 EFUNDS CORPORATION+ 2,437,806
106,240 FREEMARKETS INCORPORATED+ 6,068,960
208,500 GETTY IMAGES INCORPORATED+ 6,346,219
53,425 GO2NET INCORPORATED+ 2,899,141
56,450 HYPERION SOLUTIONS
CORPORATION+ 1,460,644
48,025 MAINSPRING INCORPORATED+ 357,186
31,275 MANUGISTICS GROUP
INCORPORATED+ 3,068,859
126,675 MATRIXONE INCORPORATED+ 5,067,000
163,640 METASOLV SOFTWARE
INCORPORATED+ 6,688,785
55,800 NETEGRITY INCORPORATED+ 3,906,000
155,810 NETIQ CORPORATION+ 10,234,773
13,285 NUANCE COMMUNICATIONS
INCORPORATED+ 1,616,618
77,305 PREDICTIVE SYSTEMS
INCORPORATED+ 1,492,953
26,590 RESONATE INCORPORATED+ 1,050,305
69,946 SEI INVESTMENTS COMPANY 4,948,680
36,450 SERENA SOFTWARE INCORPORATED+ 1,678,978
68,850 SOFTWARE TECHNOLOGIES
INCORPORATED+ 1,576,020
50,310 SONICWALL INCORPORATED+ 1,433,835
150,350 TALARIAN CORPORATION+ 2,884,841
89,325 TELETECH HOLDINGS
INCORPORATED+ 2,210,794
57,975 U.S. INTERACTIVE INCORPORATED+ 146,749
41,900 VASTERA INCORPORATED+ 921,800
240,895 VERTICALNET INCORPORATED+ 8,461,437
106,591 WEBMETHODS INCORPORATED+ 12,271,256
111,625 ZENGINE INCORPORATED+ 1,576,703
147,512,903
------------
CHEMICALS & ALLIED PRODUCTS - 10.99%
56,203 ALEXION PHARMACEUTICALS
INCORPORATED+ 6,406,940
53,250 ALKERMES INCORPORATED+ 2,056,781
207,150 ALPHARMA INCORPORATED 12,662,045
46,125 BARR LABORATORIES
INCORPORATED+ 3,058,664
74,475 CUBIST PHARMACEUTICALS
INCORPORATED+ 3,877,354
285,800 FIRST HORIZON PHARMACEUTICAL
CORPORATION+ 5,180,125
92,925 INHALE THERAPEUTIC SYSTEMS
INCORPORATED+ 5,238,647
72,675 INVITROGEN CORPORATION+ 5,169,009
</TABLE>
68
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
127,430 MEDICIS PHARMACEUTICAL
CORPORATION+ $ 7,836,945
56,550 NEUROCRINE BIOSCIENCES
INCORPORATED+ 2,544,750
57,150 NOVEN PHARMACEUTICALS
INCORPORATED+ 2,443,163
44,189 PHARMACYCLICS INCORPORATED+ 2,192,879
58,667,302
------------
COMMUNICATIONS - 4.47%
80,750 CERAGON NETWORKS LIMITED.+ 2,170,156
186,990 DIGITAL ISLAND INCORPORATED+ 3,506,062
45,225 EQUINIX INCORPORATED+ 401,372
333,985 GLOBIX CORPORATION+ 7,786,025
69,950 ILLUMINET HOLDINGS
INCORPORATED+ 1,941,113
84,025 MASTEC INCORPORATED+ 2,625,781
93,425 SBA COMMUNICATIONS
CORPORATION+ 3,918,011
29,700 TELECOMMUNICATION SYSTEMS
INCORPORATED+ 568,013
82,252 UNIVERSAL ACCESS INCORPORATED+ 966,461
23,882,994
------------
DEPOSITORY INSTITUTIONS - 2.02%
97,500 INVESTORS FINANCIAL SERVICES
CORPORATION 6,154,687
79,495 SILICON VALLEY BANCSHARES+ 4,629,342
10,784,029
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 12.49%
47,325 AEROFLEX INCORPORATED+ 2,301,178
67,850 AMERICAN SUPERCONDUCTOR
CORPORATION+ 3,335,251
90,900 CALIFORNIA AMPLIFIER
INCORPORATED+ 2,090,700
56,625 CELERITEK INCORPORATED+ 2,134,054
128,549 CTC COMMUNICATIONS GROUP
INCORPORATED+ 2,603,117
40,494 DIGITAL LIGHTWAVE
INCORPORATED+ 2,940,877
18,251 ELANTEC SEMICONDUCTOR
INCORPORATED+ 1,818,218
228,525 INTERNATIONAL FIBERCOM
INCORPORATED+ 3,342,178
23,025 JNI CORPORATION+ 2,049,225
30,295 MICREL INCORPORATED+ 2,029,765
33,175 MICROTUNE INCORPORATED+ 1,776,936
45,950 MIPS TECHNOLOGIES
INCORPORATED+ 2,113,700
60,945 MMC NETWORKS INCORPORATED+ 7,709,543
52,375 MRV COMMUNICATIONS
INCORPORATED+ 2,373,242
103,700 NETRO CORPORATION+ 6,144,225
126,275 PLX TECHNOLOGY INCORPORATED+ 3,393,641
28,375 POWER INTEGRATIONS
INCORPORATED+ 395,477
15,150 PROTON ENERGY SYSTEMS
INCORPORATED+ 433,669
34,129 TECHNITROL INCORPORATED 3,447,029
21,050 TELEDYNE TECHNOLOGIES
INCORPORATED+ 613,081
37,575 TTM TECHNOLOGIES INCORPORATED+ 883,013
103,738 TUT SYSTEMS INCORPORATED+ 8,953,886
116,575 VIASYSTEMS GROUP INCORPORATED+ 1,981,775
</TABLE>
69
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
130,075 VINA TECHNOLOGIES
INCORPORATED+ $ 1,812,920
66,676,700
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 3.79%
58,700 AURORA BIOSCIENCES
CORPORATION+ 3,991,600
123,750 DIAMOND TECHNOLOGY PARTNERS
INCORPORATED+ 9,188,437
42,530 MYRIAD GENETICS INCORPORATED+ 3,657,580
58,200 NEOPHARM INCORPORATED+ 2,298,900
200 PER-SE TECHNOLOGIES
INCORPORATED+ 2,538
42,900 PHARMACOPEIA INCORPORATED+ 1,093,950
20,233,005
------------
GENERAL MERCHANDISE STORES - 2.48%
163,662 99 CENTS ONLY STORES+ 8,213,787
147,914 BJ'S WHOLESALE CLUB
INCORPORATED+ 5,047,565
13,261,352
------------
HEALTH SERVICES - 4.40%
102,350 ENZON INCORPORATED+ 6,755,100
134,350 IMPATH INCORPORATED+ 8,480,844
68,850 LABORATORY CORPORATION OF
AMERICA HOLDINGS+ 8,244,787
23,480,731
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.06%
87,100 ADVANCED DIGITAL INFORMATION
CORPORATION+ 1,322,831
67,450 ASYST TECHNOLOGIES
INCORPORATED+ 1,365,862
41,675 AXCELIS TECHNOLOGIES
INCORPORATED+ 494,891
1,024 BLOUNT INTERNATIONAL
INCORPORATED+ 11,520
96,775 INFOCUS CORPORATION+ 5,129,075
106,700 INTERLINK ELECTRONICS
INCORPORATED+ 2,067,313
12,957 PLANAR SYSTEMS INCORPORATED+ 241,324
56,025 VISUAL NETWORKS INCORPORATED+ 367,664
11,000,480
------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.77%
159,187 ARTHUR J. GALLAGHER & COMPANY 9,411,931
------------
INSURANCE CARRIERS - 0.86%
150,100 OXFORD HEALTH PLANS
INCORPORATED+ 4,613,230
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 4.26%
140,275 ADAC LABORATORIES+ 2,919,473
22,474 ANAREN MIRCROWAVE
INCORPORATED+ 3,048,036
38,403 CERUS CORPORATION+ 2,131,367
50,200 ILLUMINA INCORPORATED+ 2,277,825
34,442 KEITHLEY INSTRUMENTS
INCORPORATED 2,410,940
7,160 NEWPORT CORPORATION 1,140,342
34,075 VEECO INSTRUMENTS
INCORPORATED+ 3,621,001
</TABLE>
70
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (continued)
59,779 ZYGO CORPORATION+ $ 5,200,773
22,749,757
------------
MISCELLANEOUS RETAIL - 3.37%
119,725 CHILDREN'S PLACE RETAIL STORE
INCORPORATED+ 3,082,919
135,125 CLAIRE'S STORES INCORPORATED 2,432,250
120,025 MICHAELS STORES INCORPORATED+ 4,801,000
186,735 PETCO ANIMAL SUPPLIES
INCORPORATED+ 4,073,157
179,055 YANKEE CANDLE COMPANY
INCORPORATED+ 3,603,482
17,992,808
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 4.35%
234,843 AMERICREDIT CORPORATION+ 6,766,414
119,450 COMPUCREDIT CORP+ 6,700,398
247,653 METRIS COMPANIES INCORPORATED 9,782,294
23,249,106
------------
OIL & GAS EXTRACTION - 4.66%
108,888 HELMERICH & PAYNE INCORPORATED 3,933,579
126,104 LOUIS DREYFUS NATURNAL GAS
CORPORATION+ 4,996,871
211,475 MARINE DRILLING COMPANY
INCORPORATED+ 6,040,255
97,809 NEWFIELD EXPLORATION COMPANY+ 4,566,458
119,851 UTI ENERGY CORPORATION+ 5,348,351
24,885,514
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.85%
128,085 VALERO ENERGY CORPORATION 4,506,991
------------
PRIMARY METAL INDUSTRIES - 0.34%
74,730 COMMSCOPE INCORPORATED+ 1,830,885
------------
TRANSPORTATION EQUIPMENT - 0.64%
118,950 IMPCO TECHNOLOGIES
INCORPORATED+ 3,419,813
------------
TRANSPORTATION SERVICES - 0.71%
67,275 C.H. ROBINSON WORLDWIDE
INCORPORATED 3,791,577
------------
WHOLESALE TRADE-DURABLE GOODS - 2.31%
126,350 ACT MANUFACTURING
INCORPORATED+ 6,664,963
126,013 INSIGHT ENTERPRISES
INCORPORATED+ 3,433,840
94,500 KENT ELECTRONICS CORPORATION+ 2,256,188
12,354,991
------------
WHOLESALE TRADE-NONDURABLE GOODS -- 1.42%
161,850 AMERISOURCE HEALTH
CORPORATION+ 7,606,950
------------
511,913,049
TOTAL COMMON STOCK (COST $459,693,905)
------------
</TABLE>
71
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 6.70%
REPURCHASE AGREEMENTS - 6.70%
$15,959,000 GOLDMAN SACHS REPURCHASE
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.58% 10/2/00 $ 15,959,000
19,823,000 J.P. MORGAN SECURITIES
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.57 10/2/00 19,823,000
35,782,000
TOTAL SHORT-TERM INSTRUMENTS (COST
$35,782,000)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $495,475,905)* 102.56% $547,695,049
OTHER ASSETS AND LIABILITIES, NET (2.56) (13,678,470)
------- ------------
TOTAL NET ASSETS 100.00% $534,016,579
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $499,893,786 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $89,281,002
GROSS UNREALIZED DEPRECIATION (41,479,739)
----------
NET UNREALIZED APPRECIATION $47,801,263
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 87.84%
APPAREL & ACCESSORY STORES - 1.56%
152,000 ABERCROMBIE & FITCH COMPANY+ $ 2,897,500
38,800 ANN TAYLOR STORES CORPORATION+ 1,491,375
4,388,875
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.77%
225,400 TOMMY HILFIGER CORPORATION+ 2,169,475
------------
BUSINESS SERVICES - 11.74%
86,300 AFFILIATED COMPUTER SERVICES
CLASS A+ 4,304,213
46,200 AVOCENT CORPORATION+ 2,546,775
86,400 CATALINA MARKETING
CORPORATION+ 3,250,800
32,900 GETTY IMAGES INCORPORATED+ 1,001,394
91,800 NATIONAL DATA CORPORATION 3,012,188
133,400 OGDEN CORPORATION 1,809,238
137,100 PROGRESS SOFTWARE CORPORATION+ 1,867,988
39,400 RADISYS CORPORATION+ 1,992,163
120,344 RENT-WAY INCORPORATED+ 3,655,449
134,900 SYBASE INCORPORATED+ 3,102,700
73,800 SYMANTEC CORPORATION+ 3,247,200
26,867 TRUE NORTH COMMUNICATIONS
INCORPORATED 960,495
89,900 VIAD CORPORATION 2,387,969
33,138,572
------------
CHEMICALS & ALLIED PRODUCTS - 5.61%
42,700 CABOT CORPORATION 1,353,056
41,344 CAMBREX CORPORATION 1,529,728
93,200 CHARLES RIVER LABS+ 3,168,800
45,400 CYTEC INDUSTRIES INCORPORATED+ 1,518,063
66,900 DURA PHARMACEUTICALS
INCORPORATED+ 2,366,588
52,800 MEDICIS PHARMACEUTICAL
CORPORATION+ 3,247,200
521,200 METHANEX CORPORATION+ 2,638,575
15,822,010
------------
COMMUNICATIONS - 0.88%
139,000 ITC DELTACOM INCORPORATED+ 1,598,500
98,000 PAC-WEST TELECOMM
INCORPORATED+ 894,250
2,492,750
------------
CONSUMER CYCLICAL - 1.60%
130,208 RENT-A-CENTER INCORPORATED+ 4,516,590
------------
DEPOSITORY INSTITUTIONS - 2.78%
42,100 ASTORIA FINANCIAL CORPORATION 1,626,113
53,163 BANK UNITED CORPORATION 2,694,700
381,400 SOVEREIGN BANCORP INCORPORATED 3,527,950
7,848,763
------------
</TABLE>
73
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
EATING & DRINKING PLACES - 2.73%
82,061 CEC ENTERTAINMENT
INCORPORATED+ $ 2,625,952
148,657 JACK IN THE BOX INCORPORATED+ 3,186,834
169,290 RUBY TUESDAY INCORPORATED 1,904,513
7,717,299
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.95%
151,493 EL PASO ELECTRIC COMPANY+ 2,086,059
82,100 KINDER MORGAN INCORPORATED 3,360,969
1,600 SOUTHERN ENERGY INCORPORATED+ 50,200
5,497,228
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 8.41%
77,400 AMPHENOL CORPORATION+ 4,406,963
38,300 ARTESYN TECHNOLOGIES
INCORPORATED+ 1,115,488
58,400 C&D TECHNOLOGIES INCORPORATED 3,314,200
22,704 CTS CORPORATION 1,149,390
31,300 DUPONT PHOTOMASKS
INCORPORATED+ 1,838,875
44,200 FAIRCHILD SEMICONDUCTOR
CORPORATION+ 1,243,125
45,600 HARMONIC INCORPORATED+ 1,094,400
16,900 INRANGE TECHNOLOGIES
CORPORATION+ 895,700
25,500 LATTICE SEMICONDUCTOR
CORPORATION+ 1,370,625
56,800 PERICOM SEMICONDUCTOR
CORPORATION+ 2,101,600
146,200 SENSORMATIC ELECTRONICS
CORPORATION+ 2,193,000
9,000 TECHNITROL INCORPORATED 909,000
56,000 VARIAN SEMICONDUCTOR EQUIPMENT
ASSOCIATES INCORPORATED+ 2,096,500
23,728,866
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 3.34%
65,457 PERKINELMER INCORPORATED 6,832,074
21,007 QUEST DIAGNOSTICS
INCORPORATED+ 2,410,553
6,300 TETRA TECH INCORPORATED+ 179,943
9,422,570
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
1.05%
36,200 ALLIANT TECHSYSTEMS
INCORPORATED+ 2,972,924
------------
FURNITURE & FIXTURES - 0.90%
152,300 FURNITURE BRANDS INTERNATIONAL
INCORPORATED+ 2,531,987
------------
GENERAL MERCHANDISE STORES - 1.10%
51,995 SHOPKO STORES INCORPORATED+ 539,448
207,200 VENATOR GROUP INCORPORATED+ 2,564,100
3,103,548
------------
HEALTH SERVICES - 7.12%
38,400 ACCREDO HEALTH INCORPORATED+ 1,876,800
155,800 APRIA HEALTHCARE GROUP
INCORPORATED+ 2,171,463
347,000 BEVERLY ENTERPRISES
INCORPORATED+ 2,060,313
59,788 COMMUNITY HEALTH CARE+ 1,920,690
</TABLE>
74
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HEALTH SERVICES (continued)
48,300 FIRST HEALTH GROUP
CORPORATION+ $ 1,557,675
30,610 LABORATORY CORPORATION OF
AMERICA HOLDINGS+ 3,665,548
129,500 RENAL CARE GROUP INCORPORATED+ 2,411,938
51,600 UNIVERSAL HEALTH SERVICES
INCORPORATED+ 4,418,250
20,082,677
------------
HOLDING & OTHER INVESTMENT OFFICES - 3.04%
78,280 AFFILIATED MANAGERS GROUP
INCORPORATED+ 4,457,068
145,200 ALLIED CAPITAL CORPORATION 3,012,900
54,000 INDYMAC BANCORP INCORPORATED 1,110,375
8,580,343
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.11%
16,100 ORIENT-EXPRESS HOTEL LIMITED+ 309,925
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.11%
19,114 COOPER CAMERON CORPORATION+ 1,408,463
82,700 INFOCUS CORPORATION+ 4,383,100
65,200 VARIAN MEDICAL SYSTEMS
INCORPORATED+ 2,946,225
59,700 ZEBRA TECHNOLOGIES
CORPORATION+ 2,869,331
11,607,119
------------
INSURANCE CARRIERS - 1.56%
74,622 AMERUS GROUP COMPANY 1,921,517
9,100 WHITE MOUNTAINS INSURANCE
GROUP INCORPORATED+ 2,483,163
4,404,680
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 9.85%
31,800 ADVANCED ENERGY INDUSTRIES
INCORPORATED+ 1,049,400
43,500 BECKMAN COULTER INCORPORATED 3,354,938
46,400 CYMER INCORPORATED+ 1,423,900
202,100 EDWARD LIFESCIENCES
CORPORATION+ 4,408,306
111,509 INVACARE CORPORATION 3,582,227
145,300 MENTOR CORPORATION 2,288,475
72,900 METTLER-TOLEDO INTERNATIONAL
INCORPORATED+ 3,207,600
51,800 ST JUDE MEDICAL INCORPORATED+ 2,641,800
43,500 TEKTRONIX INCORPORATED 3,341,344
58,100 VARIAN INCORPORATED+ 2,501,931
27,799,921
------------
MISCELLANEOUS RETAIL - 0.70%
60,600 ZALE CORPORATION+ 1,965,712
------------
MOTION PICTURES - 0.44%
165,792 HOLLYWOOD ENTERTAINMENT
CORPORATION+ 1,233,077
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.18%
100,900 AMERICREDIT CORPORATION+ 2,907,181
</TABLE>
75
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
NONDEPOSITORY CREDIT INSTITUTIONS (continued)
113,582 HELLER FINANCIAL INCORPORATED $ 3,244,186
6,151,367
------------
OIL & GAS EXTRACTION - 6.45%
34,800 ATWOOD OCEANICS INCORPORATED+ 1,450,725
36,820 B J SERVICES COMPANY+ 2,250,623
45,700 CAL DIVE INTERNATIONAL
INCORPORATED+ 2,613,469
333,000 GREY WOLF INCORPORATED+ 1,914,750
102,862 HANOVER COMPRESSOR COMPANY+ 3,388,017
123,300 PRIDE INTERNATIONAL
INCORPORATED+ 3,267,450
74,100 UTI ENERGY CORPORATION+ 3,306,713
18,191,747
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.02%
4,900 ENTEGRIS INCORPORATED+ 46,855
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.35%
68,100 FEDERATED INVESTORS
INCORPORATED 1,685,475
50,700 HILB ROGAL HAMILTON 2,113,555
3,799,030
------------
TRANSPORTATION - 2.38%
25,915 SPX CORPORATION+ 3,678,310
64,800 TEEKAY SHIPPING CORPORATION+ 3,041,550
6,719,860
------------
TRANSPORTATION/SERVICES/MISCELLANEOUS - 0.12
13,742 PINNACLE HOLDINGS
INCORPORATED+ 365,880
------------
WHOLESALE TRADE-DURABLE GOODS - 0.54%
63,961 SYBRON INTERNATIONAL
CORPORATION+ 1,535,063
------------
WHOLESALE TRADE-NONDURABLE GOODS - 3.45%
18,900 AMERISOURCE HEALTH
CORPORATION+ 888,300
195,200 BERGEN BRUNSWIG CORPORATION 2,281,400
123,100 BINDLEY WESTERN INDUSTRIES
INCORPORATED 3,939,200
88,600 HENRY SCHEIN INCORPORATED+ 1,766,463
32,400 UNITED STATIONERS
INCORPORATED+ 870,750
9,746,113
------------
247,890,826
TOTAL COMMON STOCK (COST $193,158,118)
------------
</TABLE>
76
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 10.97%
REPURCHASE AGREEMENTS - 10.97%
$30,971,975 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 $ 30,971,975
------------
30,971,975
TOTAL SHORT-TERM INSTRUMENTS (COST
$30,971,975)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $224,130,093)* 98.81% $278,862,801
OTHER ASSETS AND LIABILITIES, NET 1.19 3,350,929
------- ------------
TOTAL NET ASSETS 100.00% $282,213,730
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $224,516,022 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $67,135,725
GROSS UNREALIZED DEPRECIATION (12,788,946)
-----------
NET UNREALIZED APPRECIATION $54,346,779
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
77
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO $42,653,345
-----------
42,653,345
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.11%) (COST $38,606,700)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $38,606,700)* 100.11% $42,653,345
OTHER ASSETS AND LIABILITIES, NET (0.11) (48,017)
------- -----------
TOTAL NET ASSETS 100.00% $42,605,328
------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO $603,525,208
------------
603,525,208
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(99.99%) (COST $562,026,043)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $562,026,043)* 99.99% $603,525,208
OTHER ASSETS AND LIABILITIES, NET 0.01 58,609
------- ------------
TOTAL NET ASSETS 100.00% $603,583,817
------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
79
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 76.50%
BUSINESS SERVICES - 35.58%
22,000 AGILE SOFTWARE CORPORATION+ $ 1,978,625
4,100 ARIBA INCORPORATED+ 587,389
18,000 BEA SYSTEMS INCORPORATED+ 1,401,750
56,500 BROADVISION INCORPORATED+ 1,444,280
7,200 CACHEFLOW INCORPORATED+ 1,029,600
37,000 CHECK POINT SOFTWARE
TECHNOLOGIES LIMITED+ 5,827,500
37,000 CMG PLC 716,082
50,000 COMMERCE ONE INCORPORATED+ 3,925,000
10,500 CRITICAL PATH INCORPORATED+ 637,875
48,500 EBAY INCORPORATED+ 3,328,313
26,000 ELECTRONIC ARTS INCORPORATED+ 1,283,750
17,000 INTERWOVEN INCORPORATED+ 1,922,063
17,500 INTUIT INCORPORATED+ 997,500
22,500 LOGICA PLC 740,174
19,000 LYCOS INCORPORATED+ 1,306,547
7,000 MERCURY INTERACTIVE
CORPORATION+ 1,097,250
44,000 PEOPLESOFT INCORPORATED+ 1,229,250
24,000 SIEBEL SYSTEMS INCORPORATED+ 2,671,500
10,800 SUN MICROSYSTEMS INCORPORATED+ 1,260,900
11,500 TRANSICIEL SA 624,094
6,300 VERISIGN INCORPORATED+ 1,276,144
8,700 VERITAS SOFTWARE CORPORATION+ 1,235,400
50,000 VIGNETTE CORPORATION+ 1,493,750
3 YAHOO JAPAN CORPORATION+ 372,016
7,300 YAHOO! INCORPORATED+ 664,300
39,051,052
------------
CHEMICALS & ALLIED PRODUCTS - 0.44%
7,000 AMGEN INCORPORATED+ 488,797
------------
COMMUNICATIONS - 3.80%
5,000 BROCADE COMMUNICATIONS SYSTEMS
INCORPORATED+ 1,180,000
15,700 CIENA CORPORATION+ 1,928,156
6,500 REDBACK NETWORKS INCORPORATED+ 1,065,594
4,173,750
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 29.26%
30,500 ALTERA CORPORATION+ 1,456,375
21,500 ANALOG DEVICES INCORPORATED+ 1,775,094
15,700 APPLIED MICRO CIRCUITS
CORPORATION+ 3,250,880
35,000 ASM LITHOGRAPHY HOLDING+ 1,130,938
8,300 CORNING INCORPORATED 2,465,100
10,700 FLEXTRONICS INTERNATIONAL
LIMITED+ 878,738
43,000 FURUKAWA ELECTIC COMPANY
LIMITED 1,187,812
900 INRANGE TECHNOLOGIES
CORPORATION+ 47,700
2,000 ITOCHU TECHNO-SCIENCE
CORPORATION 366,463
7,500 JUNIPER NETWORKS INCORPORATED+ 1,642,030
</TABLE>
80
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
10,900 MANUFACTURERS SERVICES
LIMITED+ $ 129,438
31,000 MAXIM INTEGRATED PRODUCTS
INCORPORATED+ 2,493,563
21,000 MIPS TECHNOLOGIES
INCORPORATED+ 966,000
58,500 MOTOROLA INCORPORATED 1,652,625
23,500 NETWORK APPLIANCE
INCORPORATED+ 2,993,312
31,000 NOKIA CORPORATION ADR 1,234,188
5,700 PMC-SIERRA INCORPORATED+ 1,226,925
9,500 QLOGIC CORPORATION+ 836,000
10,750 SDL INCORPORATED+ 3,311,000
21,500 STMICROELECTRONICS NV ADR 1,023,938
12,000 VITESSE SEMICONDUCTOR
CORPORATION+ 1,067,250
11,500 XILINK INCORPORATED+ 984,687
32,120,056
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.24%
17,000 MARCHFIRST INCORPORATED+ 266,688
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.34%
37,000 COMPAQ COMPUTER CORPORATION 1,020,460
10,500 EMC CORPORATION+ 1,040,813
8,000 EMULEX CORPORATION+ 980,000
15,000 EXTREME NETWORKS INCORPORATED+ 1,717,500
4,758,773
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.84%
60,000 TYCO INTERNATIONAL LIMITED 3,112,500
------------
83,971,616
TOTAL COMMON STOCK (COST $83,115,749)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITYDATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 23.54%
REPURCHASE AGREEMENTS - 23.54%
$12,915,761 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 12,915,761
12,915,761 BEAR STEARNS COMPANIES
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65 10/02/00 12,915,761
25,831,522
TOTAL SHORT-TERM INSTRUMENTS (COST
$25,831,522)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $108,947,271)* 100.04% $109,803,138
OTHER ASSETS AND LIABILITIES, NET (0.04) (43,539)
------- ------------
TOTAL NET ASSETS 100.00% $109,759,599
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $3,786,172
GROSS UNREALIZED DEPRECIATION (2,930,305)
----------
NET UNREALIZED APPRECIATION $ 855,867
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
81
<PAGE>
STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED DIVERSIFIED DIVERSIFIED
GROWTH EQUITY SMALL CAP
<S> <C> <C> <C>
-------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW)... $31,766,437 $2,191,522,585 $117,037,678
CASH........................ 0 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 0 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 109 82 0
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 34,853 2,716,916 336,390
PREPAID EXPENSES AND OTHER
ASSETS.................... 9,425 14,884 3,076
----------- ------------ ------------
TOTAL ASSETS.................. 31,810,824 2,194,254,467 117,377,144
----------- ------------ ------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0 0
PAYABLE FOR SECURITIES
LOANED.................... 0 0 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 2,200 7,286,836 28,736
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 3,786 542,799 32,629
PAYABLE FOR DAILY VARIATION
MARGIN ON FUTURES
CONTRACTS................. 0 0 0
PAYABLE TO OTHER RELATED
PARTIES................... 0 280,786 32,592
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 30,240 293,481 82,110
BANK OVERDRAFT.............. 0 0 0
----------- ------------ ------------
TOTAL LIABILITIES............. 36,226 8,403,902 176,067
----------- ------------ ------------
TOTAL NET ASSETS.............. $31,774,598 $2,185,850,565 $117,201,077
----------- ------------ ------------
NET ASSETS CONSIST OF:
-------------------------------------------------------------------------
PAID-IN CAPITAL............. $15,066,274 $1,161,303,850 $ 99,707,399
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. (42,361) 7,753,883 62,913
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 9,526,097 179,779,544 6,681,512
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION
OF ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES........ 7,224,588 837,013,288 10,749,253
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0 0
TOTAL NET ASSETS.............. $31,774,598 $2,185,850,565 $117,201,077
----------- ------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-------------------------------------------------------------------------
NET ASSETS - CLASS A.......... N/A $ 95,645,997 $ 674,638
SHARES OUTSTANDING -
CLASS A..................... N/A 1,814,048 57,195
NET ASSET VALUE PER SHARE -
CLASS A..................... N/A $ 52.73 $ 11.80
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A(1).......... N/A $ 55.95 $ 12.52
NET ASSETS - CLASS B.......... N/A $143,472,493 $ 826,042
SHARES OUTSTANDING -
CLASS B..................... N/A 2,775,165 75,185
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A $ 51.70 $ 10.99
NET ASSETS - CLASS C.......... N/A $ 8,525,876 N/A
SHARES OUTSTANDING -
CLASS C..................... N/A 162,829 N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A $ 52.36 N/A
NET ASSETS - INSTITUTIONAL
CLASS....................... $31,774,598 $1,938,206,199 $115,700,397
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 2,377,409 36,764,781 10,352,973
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 13.37 $ 52.72 $ 11.18
NET ASSETS - CLASS O.......... N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A N/A
INVESTMENTS AT COST
(NOTE 10)................... $24,541,849 $1,354,509,297 $106,288,425
----------- ------------ ------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY EQUITY EQUITY GROWTH
INCOME INDEX VALUE GROWTH EQUITY
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW)... $1,765,014,986 $ 702,834,213 $ 139,502,608 $ 434,726,419 $ 802,387,902
CASH........................ 0 59,600 14,289 10,588 0
COLLATERAL FOR SECURITIES
LOANED.................... 0 78,163,828 15,925,171 71,401,679 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 2,605 537,536 120,171 168,320 332
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 7,815 2,029,645 583,634 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 1,572,382 590,076 13,846 956,573 1,099,828
PREPAID EXPENSES AND OTHER
ASSETS.................... 105,045 1,622 53,510 60,304 7,938
-------------- --------------- --------------- --------------- ---------------
TOTAL ASSETS.................. 1,766,695,018 782,194,690 157,659,240 507,907,517 803,496,000
-------------- --------------- --------------- --------------- ---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0 489,618 911,530 0
PAYABLE FOR SECURITIES
LOANED.................... 0 78,163,828 15,925,171 71,401,679 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 6,231,474 530,676 176,773 1,594,205 6,783,696
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 213,804 314,033 100,157 322,835 228,046
PAYABLE FOR DAILY VARIATION
MARGIN ON FUTURES
CONTRACTS................. 0 305,475 0 0 0
PAYABLE TO OTHER RELATED
PARTIES................... 322,511 178,569 30,290 212,074 32,341
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 191,728 231,262 255,839 432,564 188,613
BANK OVERDRAFT.............. 0 0 0 0 0
-------------- --------------- --------------- --------------- ---------------
TOTAL LIABILITIES............. 6,959,517 79,723,843 16,977,848 74,874,887 7,232,696
-------------- --------------- --------------- --------------- ---------------
TOTAL NET ASSETS.............. $1,759,735,501 $ 702,470,847 $ 140,681,392 $ 433,032,630 $ 796,263,304
-------------- --------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $1,424,630,717 $ 205,645,663 $ 88,555,058 $ 228,843,791 $ 342,233,157
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. 661,435 2,463,601 (577) 0 (1,460,762)
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. (20,566,084) 75,160,237 18,220,035 91,153,810 108,714,505
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION
OF ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES........ 355,009,433 419,864,946 33,906,876 113,035,029 346,776,404
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 (663,600) 0 0 0
TOTAL NET ASSETS.............. $1,759,735,501 $ 702,470,847 $ 140,681,392 $ 433,032,630 $ 796,263,304
-------------- --------------- --------------- --------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
----------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $ 196,314,230 $ 596,082,507 $ 24,605,158 $ 311,038,398 $ 17,725,706
SHARES OUTSTANDING -
CLASS A..................... 4,755,427 7,050,952 1,820,183 13,632,002 444,410
NET ASSET VALUE PER SHARE -
CLASS A..................... $ 41.28 $ 84.54 $ 13.52 $ 22.82 $ 39.89
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A(1).......... $ 43.80 $ 89.70 $ 14.34 $ 24.21 $ 42.32
NET ASSETS - CLASS B.......... $ 152,681,981 $ 96,378,449 $ 45,636,443 $ 69,433,478 $ 25,123,851
SHARES OUTSTANDING -
CLASS B..................... 3,704,281 1,146,577 4,142,950 4,349,140 652,900
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... $ 41.22 $ 84.06 $ 11.02 $ 15.96 $ 38.48
NET ASSETS - CLASS C.......... $ 7,115,302 N/A $ 588,981 N/A $ 2,239,985
SHARES OUTSTANDING -
CLASS C..................... 168,122 N/A 53,473 N/A 56,547
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... $ 42.32 N/A $ 11.01 N/A $ 39.61
NET ASSETS - INSTITUTIONAL
CLASS....................... $1,403,623,988 N/A $ 69,850,810 $ 52,560,754 $ 751,173,762
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 34,007,434 N/A 5,170,340 1,961,425 18,788,449
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 41.27 N/A $ 13.51 $ 26.80 $ 39.98
NET ASSETS - CLASS O.......... N/A $ 10,009,891 N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A 116,912 N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A $ 85.62 N/A N/A N/A
INVESTMENTS AT COST
(NOTE 10)................... $1,410,005,553 $ 282,969,267 $ 105,595,732 $ 321,691,390 $ 455,611,498
-------------- --------------- --------------- --------------- ---------------
<CAPTION>
INDEX
<S> <C>
------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW)... $ 984,632,276
CASH........................ 0
COLLATERAL FOR SECURITIES
LOANED.................... 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 95
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 1,435,684
PREPAID EXPENSES AND OTHER
ASSETS.................... 0
---------------
TOTAL ASSETS.................. 986,068,055
---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0
PAYABLE FOR SECURITIES
LOANED.................... 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 2,774,170
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 75,134
PAYABLE FOR DAILY VARIATION
MARGIN ON FUTURES
CONTRACTS................. 0
PAYABLE TO OTHER RELATED
PARTIES................... 35,576
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 208,659
BANK OVERDRAFT.............. 0
---------------
TOTAL LIABILITIES............. 3,093,539
---------------
TOTAL NET ASSETS.............. $ 982,974,516
---------------
NET ASSETS CONSIST OF:
------------------------------
PAID-IN CAPITAL............. $ 482,664,308
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. 8,685,611
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 27,088,345
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION
OF ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES........ 464,536,252
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0
TOTAL NET ASSETS.............. $ 982,974,516
---------------
COMPUTATION OF NET ASSET VALUE
------------------------------
NET ASSETS - CLASS A.......... N/A
SHARES OUTSTANDING -
CLASS A..................... N/A
NET ASSET VALUE PER SHARE -
CLASS A..................... N/A
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A(1).......... N/A
NET ASSETS - CLASS B.......... N/A
SHARES OUTSTANDING -
CLASS B..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A
NET ASSETS - CLASS C.......... N/A
SHARES OUTSTANDING -
CLASS C..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A
NET ASSETS - INSTITUTIONAL
CLASS....................... $ 982,974,516
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 16,458,172
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 59.73
NET ASSETS - CLASS O.......... N/A
SHARES OUTSTANDING -
CLASS O..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A
INVESTMENTS AT COST
(NOTE 10)................... $ 520,096,024
---------------
</TABLE>
83
<PAGE>
STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE
INTERNATIONAL COMPANY
INTERNATIONAL EQUITY GROWTH
<S> <C> <C> <C>
--------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW)... $ 292,660,049 $231,231,696 $2,316,441,712
CASH........................ 0 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 0 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 122 366,702 1,604
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 1,494,782 1,394,579 11,142,075
PREPAID EXPENSES AND OTHER
ASSETS.................... 0 13,737 66,454
--------------- ----------- ------------
TOTAL ASSETS.................. 294,154,953 233,006,714 2,327,651,845
--------------- ----------- ------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0 0
PAYABLE FOR SECURITIES
LOANED.................... 0 0 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 81,446 216,088 2,057,483
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 29,725 226,775 256,602
PAYABLE FOR DAILY VARIATION
MARGIN ON FUTURES
CONTRACTS................. 0 0 0
PAYABLE TO OTHER RELATED
PARTIES................... 47,764 302,169 927,063
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 59,683 330,304 654,026
BANK OVERDRAFT.............. 0 0 0
--------------- ----------- ------------
TOTAL LIABILITIES............. 218,618 1,075,336 3,895,174
--------------- ----------- ------------
TOTAL NET ASSETS.............. $ 293,936,335 $231,931,378 $2,323,756,671
--------------- ----------- ------------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
PAID-IN CAPITAL............. $ 216,540,274 $214,041,104 $1,732,463,453
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. (82,665) 0 (5,916,999)
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 67,453,537 4,631,225 27,082,150
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION
OF ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES........ 10,025,189 13,247,863 570,128,067
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 11,186 0
TOTAL NET ASSETS.............. $ 293,936,335 $231,931,378 $2,323,756,671
--------------- ----------- ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
--------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $ 4,990,515 $43,658,621 $303,947,540
SHARES OUTSTANDING -
CLASS A..................... 198,805 2,864,802 4,050,791
NET ASSET VALUE PER SHARE -
CLASS A..................... $ 25.10 $ 15.24 $ 75.03
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A(1).......... $ 26.63 $ 16.17 $ 79.61
NET ASSETS - CLASS B.......... $ 3,232,590 $63,018,710 $461,918,182
SHARES OUTSTANDING -
CLASS B..................... 131,046 4,202,661 6,620,196
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... $ 24.67 $ 14.99 $ 69.77
NET ASSETS - CLASS C.......... N/A $ 2,856,785 $ 25,463,313(2)
SHARES OUTSTANDING -
CLASS C..................... N/A 190,750 364,543(2)
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A $ 14.98 $ 69.85(2)
NET ASSETS - INSTITUTIONAL
CLASS....................... $ 285,713,230 $122,397,262(2) $1,532,427,636
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 11,359,616 8,068,447(2) 21,671,024
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 25.15 $ 15.17(2) $ 70.71
NET ASSETS - CLASS O.......... N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A N/A
INVESTMENTS AT COST
(NOTE 10)................... $ 282,634,860 $217,983,833 $1,746,313,645
--------------- ----------- ------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
84
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
SMALL CAP SMALL CAP SMALL CAP COMPANY SPECIALIZED
GROWTH OPPORTUNITIES VALUE GROWTH TECHNOLOGY
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW)... $547,695,049 $ 278,862,801 $ 42,653,345 $ 603,525,208 $ 109,803,138
CASH........................ 648,719 0 0 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 171,465,966 26,453,066 0 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 63,975 44,034 1,289 8,792 17,410
RECEIVABLE FOR INVESTMENTS
SOLD...................... 20,999,030 4,992,200 0 0 3,184,593
RECEIVABLE FOR FUND SHARES
ISSUED.................... 2,498,173 278,715 39,086 707,960 9,305,110
PREPAID EXPENSES AND OTHER
ASSETS.................... 0 17,250 0 0 0
------------ -------------- --------------- --------------- ---------------
TOTAL ASSETS.................. 743,370,912 310,648,066 42,693,720 604,241,960 122,310,251
------------ -------------- --------------- --------------- ---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 33,195,541 728,305 0 0 12,305,159
PAYABLE FOR SECURITIES
LOANED.................... 171,465,966 26,453,066 0 0 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 2,883,906 872,558 3,202 106,237 25,963
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 361,414 275,110 4,620 122,265 47,303
PAYABLE FOR DAILY VARIATION
MARGIN ON FUTURES
CONTRACTS................. 0 0 0 0 0
PAYABLE TO OTHER RELATED
PARTIES................... 718,947 44,831 27,505 125,831 26,111
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 728,559 60,466 53,065 303,810 47,267
BANK OVERDRAFT.............. 0 0 0 0 98,849
------------ -------------- --------------- --------------- ---------------
TOTAL LIABILITIES............. 209,354,333 28,434,336 88,392 658,143 12,550,652
------------ -------------- --------------- --------------- ---------------
TOTAL NET ASSETS.............. $534,016,579 $ 282,213,730 $ 42,605,328 $ 603,583,817 $ 109,759,599
------------ -------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $377,956,375 $ 204,611,586 $ 40,114,441 $ 453,994,430 $ 109,223,035
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. 0 0 (28,504) (1,234,095) 0
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 103,841,060 22,869,436 (1,527,254) 109,324,317 (319,303)
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION
OF ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES........ 52,219,144 54,732,708 4,046,645 41,499,165 855,867
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0 0 0 0
TOTAL NET ASSETS.............. $534,016,579 $ 282,213,730 $ 42,605,328 $ 603,583,817 $ 109,759,599
------------ -------------- --------------- --------------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $203,163,735 $ 4,839,522 N/A N/A $ 42,625,702
SHARES OUTSTANDING -
CLASS A..................... 4,672,653 161,738 N/A N/A 4,214,192
NET ASSET VALUE PER SHARE -
CLASS A..................... $ 43.48 $ 29.92 N/A N/A $ 10.11
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A(1).......... $ 46.13 $ 31.75 N/A N/A $ 10.73
NET ASSETS - CLASS B.......... $116,520,201 $ 5,437,766 N/A N/A $ 52,958,390
SHARES OUTSTANDING -
CLASS B..................... 2,752,395 187,331 N/A N/A 5,244,458
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... $ 42.33 $ 29.03 N/A N/A $ 10.10
NET ASSETS - CLASS C.......... $ 28,017,705 N/A N/A N/A $ 14,175,507
SHARES OUTSTANDING -
CLASS C..................... 662,273 N/A N/A N/A 1,401,774
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... $ 42.31 N/A N/A N/A $ 10.11
NET ASSETS - INSTITUTIONAL
CLASS....................... $186,314,938 $ 271,936,442 $ 42,605,328 $ 603,583,817 N/A
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 4,208,720 9,074,721 4,012,403 16,665,971 N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 44.27 $ 29.97 $ 10.62 $ 36.22 N/A
NET ASSETS - CLASS O.......... N/A N/A N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A N/A N/A N/A
INVESTMENTS AT COST
(NOTE 10)................... $495,475,905 $ 224,130,093 $ 38,606,700 $ 562,026,043 $ 108,947,271
------------ -------------- --------------- --------------- ---------------
</TABLE>
85
<PAGE>
STOCK FUNDS STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED DIVERSIFIED
GROWTH EQUITY
<S> <C> <C>
---------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 336,044 $24,950,391(1)
INTEREST............... 35,715 3,721,962
SECURITIES LENDING
INCOME............... 16,482 515,285
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (298,424) (14,484,624)
---------- -----------
TOTAL INVESTMENT INCOME
(LOSS)................. 89,817 14,703,014
---------- -----------
EXPENSES
ADVISORY FEES.......... 0 5,590,974
ADMINISTRATION FEES.... 54,372 3,134,337
CUSTODY FEES........... 0 0
SHAREHOLDER SERVICING
FEES................. 0 527,348
PORTFOLIO ACCOUNTING
FEES................. 17,480 146,063
TRANSFER AGENT
CLASS A.............. N/A 188,130
CLASS B.............. N/A 278,239
CLASS C.............. N/A 45,119
INSTITUTIONAL
CLASS .............. 13,982 608,140
CLASS O.............. N/A N/A
DISTRIBUTION FEES
CLASS A.............. N/A 0
CLASS B.............. N/A 1,025,350
CLASS C.............. N/A 39,832
LEGAL AND AUDIT FEES... 5,990 52,764
REGISTRATION FEES...... 20,149 138,634
DIRECTORS' FEES........ 4,826 6,331
SHAREHOLDER REPORTS.... 3,429 231,517
OTHER.................. 1,065 68,817
---------- -----------
TOTAL EXPENSES........... 121,293 12,081,595
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (23,831) (3,146,712)
---------- -----------
NET EXPENSES........... 97,462 8,934,883
---------- -----------
NET INVESTMENT INCOME.... (7,645) 5,768,131
---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
---------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 10,469,423 184,590,866
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 42,728
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 2,016,184
---------- -----------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 10,469,423 186,649,778
---------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (3,182,033) 135,657,065
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (133,121)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (1,229,008)
---------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ (3,182,033) 134,294,936
---------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 7,287,390 320,944,714
---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $7,279,745 $326,712,845
---------- -----------
</TABLE>
(1) NET OF FOREIGN WITHHOLDING TAXES OF $537,456
(2) NET OF FOREIGN WITHHOLDING TAXES OF $393,457
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
86
<PAGE>
STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY EQUITY EQUITY GROWTH
SMALL CAP INCOME INDEX VALUE GROWTH EQUITY
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 747,692 $ 34,943,737 $8,129,548 $2,406,671 $ 3,607,669 $ 5,693,080(2)
INTEREST............... 348,771 1,509,479 840,574 173,553 506,471 2,153,788
SECURITIES LENDING
INCOME............... 39,009 192,291 145,279 34,379 114,195 230,989
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (622,575) (11,723,126) 0 0 0 (7,040,936)
---------- ------------ ---------- ---------- ----------- -----------
TOTAL INVESTMENT INCOME
(LOSS)................. 512,897 24,922,381 9,115,401 2,614,603 4,228,335 1,036,921
---------- ------------ ---------- ---------- ----------- -----------
EXPENSES
ADVISORY FEES.......... 226,793 0 1,824,012 1,246,549 3,372,332 1,980,445
ADMINISTRATION FEES.... 128,913 2,467,805 1,094,408 260,445 698,197 1,116,704
CUSTODY FEES........... 0 0 131,508 33,991 91,729 0
SHAREHOLDER SERVICING
FEES................. 85,997 861,578 1,823,168 230,677 1,042,727 101,609
PORTFOLIO ACCOUNTING
FEES................. 66,366 100,076 119,447 71,401 82,530 69,787
TRANSFER AGENT
CLASS A.............. 2,053 409,753 806,739 73,249 640,187 35,703
CLASS B.............. 2,297 294,028 212,747 166,823 174,332 63,021
CLASS C.............. N/A 5,065 N/A 1,219 N/A 3,658
INSTITUTIONAL
CLASS .............. 41,266 596,308 N/A 4,737 11,416 209,097
CLASS O.............. N/A N/A 169 N/A N/A N/A
DISTRIBUTION FEES
CLASS A.............. 126 0 0 0 0 0
CLASS B.............. 5,430 1,200,654 666,918 385,607 537,374 178,615
CLASS C.............. N/A 37,120 N/A 5,627 N/A 8,914
LEGAL AND AUDIT FEES... 7,251 24,942 75,923 29,014 70,190 27,527
REGISTRATION FEES...... 65,590 160,124 40,536 36,942 63,208 68,985
DIRECTORS' FEES........ 4,839 6,039 5,086 4,841 4,789 4,988
SHAREHOLDER REPORTS.... 4,540 129,791 126,834 55,879 102,477 108,195
OTHER.................. 7,496 56,011 47,254 17,887 45,084 30,257
---------- ------------ ---------- ---------- ----------- -----------
TOTAL EXPENSES........... 648,957 6,349,294 6,974,749 2,624,888 6,936,572 4,007,505
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (175,417) (976,722) (1,130,732) (359,778) (1,255,710) (839,778)
---------- ------------ ---------- ---------- ----------- -----------
NET EXPENSES........... 473,540 5,372,572 5,844,017 2,265,110 5,680,862 3,167,727
---------- ------------ ---------- ---------- ----------- -----------
NET INVESTMENT INCOME.... 39,357 19,549,809 3,271,384 349,493 (1,452,527) (2,130,806)
---------- ------------ ---------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0 76,748,598 18,728,410 92,788,915 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 (148,703) 0 1,028,760 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 8,251,535 56,194,504 0 0 0 113,260,477
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 107,975
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 463,094 0 0 0 0 817,133
---------- ------------ ---------- ---------- ----------- -----------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 8,714,629 56,194,504 76,599,895 18,728,410 93,817,675 114,185,585
---------- ------------ ---------- ---------- ----------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0 3,819,957 821,226 (28,751,547) 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 139,975 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 9,737,059 (139,410,700) 0 0 0 57,432,057
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 4 1,770 0 0 0 (73,484)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (141,156) 0 0 0 0 297,639
---------- ------------ ---------- ---------- ----------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 9,595,907 (139,408,930) 3,959,932 821,226 (28,751,547) 57,656,212
---------- ------------ ---------- ---------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 18,310,536 (83,214,426) 80,559,827 19,549,636 65,066,128 171,841,797
---------- ------------ ---------- ---------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $18,349,893 $(63,664,617) $83,831,211 $19,899,129 $63,613,601 $169,710,991
---------- ------------ ---------- ---------- ----------- -----------
</TABLE>
87
<PAGE>
STOCK FUNDS STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
INDEX INTERNATIONAL EQUITY
<S> <C> <C> <C>
--------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $10,750,835 $ 3,676,607(3) $ 1,830,597(4)
INTEREST............... 1,212,282 797,459 909,638
SECURITIES LENDING
INCOME............... 240,171 73,439 0
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (1,287,986) (3,961,858) 0
----------- ----------- -------------
TOTAL INVESTMENT INCOME
(LOSS)................. 10,915,302 585,647 2,740,235
----------- ----------- -------------
EXPENSES
ADVISORY FEES.......... 0 148,148 1,724,297
ADMINISTRATION FEES.... 1,358,912 459,496 258,644
CUSTODY FEES........... 0 0 254,122
SHAREHOLDER SERVICING
FEES................. 0 15,346 293,312
PORTFOLIO ACCOUNTING
FEES................. 45,078 61,016 249,082
TRANSFER AGENT
CLASS A.............. N/A 13,914 61,361
CLASS B.............. N/A 10,211 178,868
CLASS C.............. N/A N/A 7,230
INSTITUTIONAL
CLASS .............. 279,257 131,675 32,552(5)
CLASS O.............. N/A N/A N/A
DISTRIBUTION FEES
CLASS A.............. N/A 0 0
CLASS B.............. N/A 21,872 429,354
CLASS C.............. N/A N/A 14,904
LEGAL AND AUDIT FEES... 21,085 10,638 117,516
REGISTRATION FEES...... 106,286 29,030 123,443
DIRECTORS' FEES........ 5,387 4,989 4,984
SHAREHOLDER REPORTS.... 55,616 16,736 92,580
OTHER.................. 25,704 5,114 38,783
----------- ----------- -------------
TOTAL EXPENSES........... 1,897,325 928,185 3,881,032
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (776,468) (111,893) (593,029)
----------- ----------- -------------
NET EXPENSES........... 1,120,857 816,292 3,288,003
----------- ----------- -------------
NET INVESTMENT INCOME.... 9,794,445 (230,645) (547,768)
----------- ----------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
--------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0 5,272,230
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 (348,291)
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 29,769,804 65,729,629 0
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 476,389 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (1,001,318) 0 0
----------- ----------- -------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 28,768,486 66,206,018 4,923,939
----------- ----------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0 (828,432)
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 (10,427)
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 69,898,190 (18,924,319) 0
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 13,580 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 785,671 0 0
----------- ----------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 70,683,861 (18,910,739) (838,859)
----------- ----------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 99,452,347 47,295,279 4,085,080
----------- ----------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $109,246,792 $47,064,634 $ 3,537,312
----------- ----------- -------------
</TABLE>
(3) NET OF FOREIGN WITHHOLDING TAXES OF $575,869
(4) NET OF FOREIGN WITHHOLDING TAXES OF $340,339
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
(6) THIS FUND COMMENCED OPERATIONS ON SEPTEMBER 18, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
<PAGE>
STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
COMPANY SMALL CAP SMALL CAP SMALL CAP COMPANY SPECIALIZED
GROWTH GROWTH OPPORTUNITIES VALUE GROWTH TECHNOLOGY (6)
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 5,732,445 $ 359,729 $ 637,027 $ 76,944 $ 2,085,206 $ 3,101
INTEREST............... 2,792,831 1,256,840 1,166,458 60,366 1,830,396 57,968
SECURITIES LENDING
INCOME............... 292,177 347,908 82,093 17,517 131,176 0
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (14,515,928) 0 0 (136,947) (5,740,847) 0
------------- ------------- ------------- ---------- ------------ --------------
TOTAL INVESTMENT INCOME
(LOSS)................. (5,698,475) 1,964,477 1,885,578 17,880 (1,694,069) 61,069
------------- ------------- ------------- ---------- ------------ --------------
EXPENSES
ADVISORY FEES.......... 0 3,450,379 2,100,579 0 0 39,419
ADMINISTRATION FEES.... 2,695,969 578,373 341,299 28,293 866,894 5,632
CUSTODY FEES........... 0 80,125 46,359 0 0 2,628
SHAREHOLDER SERVICING
FEES................. 1,515,913 790,812 228,937 18,262 560,259 9,385
PORTFOLIO ACCOUNTING
FEES................. 161,581 188,681 95,534 49,993 46,054 5,256
TRANSFER AGENT
CLASS A.............. 224,359 575,522 18,204 N/A N/A 1,474
CLASS B.............. 649,351 387,342 3,923 N/A N/A 1,773
CLASS C.............. 20,190(5) 40,085 N/A N/A N/A 507
INSTITUTIONAL
CLASS .............. 684,872 76,572 118,867 8,515 255,787 N/A
CLASS O.............. N/A N/A N/A N/A N/A N/A
DISTRIBUTION FEES
CLASS A.............. 20,221 0 0 N/A N/A 0
CLASS B.............. 2,614,384 620,628 35,869 N/A N/A 13,299
CLASS C.............. 84,126(5) 164,898 N/A N/A N/A 3,802
LEGAL AND AUDIT FEES... 263,812 38,413 25,689 5,853 32,676 2,082
REGISTRATION FEES...... 363,868 274,833 31,037 20,773 153,103 3,550
DIRECTORS' FEES........ 5,659 4,789 4,802 4,801 5,167 204
SHAREHOLDER REPORTS.... 89,639 181,946 8,764 1,104 76,688 2,219
OTHER.................. 85,847 44,711 8,527 656 21,573 1,629
------------- ------------- ------------- ---------- ------------ --------------
TOTAL EXPENSES........... 9,479,791 7,498,109 3,068,390 138,250 2,018,201 92,859
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (1,927,814) (1,855,697) (86,963) (24,625) (95,726) (9,761)
------------- ------------- ------------- ---------- ------------ --------------
NET EXPENSES........... 7,551,977 5,642,412 2,981,427 113,625 1,922,475 83,098
------------- ------------- ------------- ---------- ------------ --------------
NET INVESTMENT INCOME.... (13,250,452) (3,677,935) (1,095,849) (95,745) (3,616,544) (22,029)
------------- ------------- ------------- ---------- ------------ --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
----------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 121,458,345 40,871,443 0 0 (319,303)
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 27,792,196 0 0 1,827,017 140,240,856 0
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (9,595) 0 0 0 0 0
------------- ------------- ------------- ---------- ------------ --------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 27,782,601 121,458,345 40,871,443 1,827,017 140,240,856 (319,303)
------------- ------------- ------------- ---------- ------------ --------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 18,973,273 46,369,927 0 0 855,874
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 (7)
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 403,679,314 0 0 (1,709,041) 34,953,588 0
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 6 0 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 9,582 0 0 0 0 0
------------- ------------- ------------- ---------- ------------ --------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 403,688,896 18,973,273 46,369,927 (1,709,035) 34,953,588 855,867
------------- ------------- ------------- ---------- ------------ --------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 431,471,497 140,431,618 87,241,370 117,982 175,194,444 536,564
------------- ------------- ------------- ---------- ------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 418,221,045 $ 136,753,683 $ 86,145,521 $ 22,237 $171,577,900 $ 514,535
------------- ------------- ------------- ---------- ------------ --------------
</TABLE>
89
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED GROWTH
-----------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 49,972,894 $ 54,306,519 $ 12,324,701
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (7,645) (54,594) (60,021)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 10,469,423 1,517,460 (1,387,934)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... (3,182,033) (1,428,717) 11,275,557
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 7,279,745 34,149 9,827,602
------------------ ------------------ -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 (1,648)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... (967,962) 0 0
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 3,512,451 1,884,982 44,185,119(1)
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 173,866 0 0
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (28,196,396) (6,252,756) (12,029,255)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... (24,510,079) (4,367,774) 32,155,864
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (18,198,296) (4,333,625) 41,981,818
------------------ ------------------ -------------
NET ASSETS:
--------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 31,774,598 $ 49,972,894 $ 54,306,519
------------------ ------------------ -------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
CLASS B.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 286,223 162,960 4,691,848(1)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 14,709 0 0
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (2,304,131) (539,891) (1,114,800)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... (2,003,199) (376,931) 3,577,048
------------------ ------------------ -------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (42,361) $ 0 $ 0
------------------ ------------------ -------------
</TABLE>
90
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY
------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 2,088,989,003 $ 1,810,607,147 $1,658,240,431
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 5,768,131 2,815,526 7,263,003
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 186,649,778 48,744,179 69,434,989
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 134,294,936 (79,055,363) 155,158,955
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 326,712,845 (27,495,658) 231,856,947
------------------ ------------------ --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (232,589) 0 (269,774)
CLASS B.............. 0 0 0
CLASS C.............. 0 0 (905)
INSTITUTIONAL CLASS.... (5,929,451) 0 (6,719,636)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (4,002,286) 0 (1,318,172)
CLASS B.............. (6,565,599) 0 (2,118,718)
CLASS C.............. (128,326) 0 (4,423)
INSTITUTIONAL CLASS.... (102,031,149) 0 (32,833,554)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 267,678,911 5,251,832 18,382,464
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 4,141,301 0 1,555,531
COST OF SHARES REDEEMED
- CLASS A............ (255,761,304) (3,983,360) (13,727,157)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 16,058,908 1,268,472 6,210,838
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 33,592,417 7,782,318 26,937,589
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 6,380,326 0 2,057,513
COST OF SHARES REDEEMED
- CLASS B............ (21,402,185) (4,039,229) (10,529,111)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 18,570,558 3,743,089 18,465,991
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 7,413,519 1,598,629 531,763
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 127,405 0 4,011
COST OF SHARES REDEEMED
- CLASS C............ (1,329,749) (93,687) (19,649)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 6,211,175 1,504,942 516,125
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 206,314,136 409,909,858 308,645,466
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 106,058,084 0 38,912,029
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (464,174,744) (110,548,847) (408,975,498)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... (151,802,524) 299,361,011 (61,418,003)
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 96,861,562 278,381,856 152,366,716
------------------ ------------------ --------------
NET ASSETS:
---------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 2,185,850,565 $ 2,088,989,003 $1,810,607,147
------------------ ------------------ --------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 5,275,231 105,338 413,591
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 82,250 0 35,487
SHARES REDEEMED -
CLASS A.............. (5,014,539) (80,188) (311,744)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 342,942 25,150 137,334
------------------ ------------------ --------------
SHARES SOLD -
CLASS B.............. 658,131 158,234 613,385
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 128,486 0 47,366
SHARES REDEEMED -
CLASS B.............. (417,599) (82,020) (240,909)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 369,018 76,214 419,842
------------------ ------------------ --------------
SHARES SOLD -
CLASS C.............. 143,289 32,736 11,575
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 2,533 0 91
SHARES REDEEMED -
CLASS C.............. (25,116) (1,850) (429)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 120,706 30,886 11,237
------------------ ------------------ --------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 3,971,105 8,082,334 6,936,823
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 2,106,835 0 888,401
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (8,945,346) (2,217,985) (9,367,163)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... (2,867,406) 5,864,349 (1,541,939)
------------------ ------------------ --------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 7,753,883 $ 8,237,731 $ 5,854,223
------------------ ------------------ --------------
<CAPTION>
DIVERSIFIED SMALL CAP
-----------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 69,286,908 $ 62,241,111 $ 12,551,165
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 39,357 (43,240) (19,783)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 8,714,629 2,218,511 (4,092,709)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 9,595,907 (2,252,298) 3,595,266
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 18,349,893 (77,027) (517,226)
------------------ ------------------ -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 (102)
CLASS B.............. 0 0 0
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 (1,573)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0 0
CLASS B.............. 0 0 0
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 0
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 289,423 19,737 2,942,162
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 102
COST OF SHARES REDEEMED
- CLASS A............ (1,077,474) (262,777) (1,656,498)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (788,051) (243,040) 1,285,766
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 266,986 124,041 495,965
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 0
COST OF SHARES REDEEMED
- CLASS B............ (140,970) (42,387) (46,696)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 126,016 81,654 449,269
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 63,629,340 13,260,671 59,524,813
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 1,066
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (33,403,029) (5,976,461) (11,052,067)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 30,226,311 7,284,210 48,473,812
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 47,914,169 7,045,797 49,689,946
------------------ ------------------ -------------
NET ASSETS:
-------------------------
ENDING NET ASSETS........ $ 117,201,077 $ 69,286,908 $ 62,241,111
------------------ ------------------ -------------
SHARE ISSUED AND REDEEMED
SHARES SOLD -
CLASS A.............. 26,616 1,973 329,220
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 11
SHARES REDEEMED -
CLASS A.............. (102,580) (26,807) (171,238)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (75,964) (24,834) 157,993
------------------ ------------------ -------------
SHARES SOLD -
CLASS B.............. 26,347 13,455 58,846
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 0
SHARES REDEEMED -
CLASS B.............. (13,385) (4,386) (5,692)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 12,962 9,069 53,154
------------------ ------------------ -------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 6,152,435 1,421,871 6,784,576
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 123
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (3,274,346) (647,523) (1,277,086)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 2,878,089 774,348 5,507,613
------------------ ------------------ -------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 62,913 $ 0 $ 0
------------------ ------------------ -------------
</TABLE>
91
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INCOME
------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 1,701,406,862 $ 1,732,495,848 $1,356,914,311
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 19,549,809 6,337,791 17,704,393
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 56,194,504 37,939,911 7,349,243
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... (139,408,930) (119,421,858) 197,583,941
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (63,664,617) (75,144,156) 222,637,577
------------------ ------------------ --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (2,074,119) (560,495) (1,080,235)
CLASS B.............. (493,620) (171,989) (454,877)(3)
CLASS C.............. (17,966) (3,398) (1,183)
INSTITUTIONAL CLASS.... (16,923,175) (7,794,280) (16,436,298)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (11,863,373) 0 (532,668)
CLASS B.............. (10,110,321) 0 (507,071)
CLASS C.............. (365,491) 0 (66)
INSTITUTIONAL CLASS.... (95,241,826) 0 (8,080,050)
CLASS O.............. N/A N/A N/A(10)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 179,995,350(2) 14,414,264 31,030,310
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 13,222,106 527,543 1,790,207
COST OF SHARES REDEEMED
- CLASS A............ (68,239,026) (5,536,628) (14,225,873)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 124,978,430 9,405,179 18,594,644
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 96,761,112(2) 22,009,648 36,986,937
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 10,214,105 165,143 928,800
COST OF SHARES REDEEMED
- CLASS B............ (52,686,558) (4,190,970) (9,778,614)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 54,288,659 17,983,821 28,137,123
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 6,739,508 1,182,833 1,073,688
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 363,092 2,957 406
COST OF SHARES REDEEMED
- CLASS C............ (1,765,163) (53,142) (2,757)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 5,337,437 1,132,648 1,071,337
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 384,231,744 82,657,036 322,396,267(3)
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 66,358,682 2,205,592 7,548,280
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (376,111,805) (60,798,944) (197,711,243)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 74,478,621 24,063,684 132,233,304
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 58,328,639 (31,088,986) 375,581,537
------------------ ------------------ --------------
NET ASSETS:
---------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 1,759,735,501 $ 1,701,406,862 $1,732,495,848
------------------ ------------------ --------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 3,576,488(2) 306,313 746,028
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 312,389 11,703 37,930
SHARES REDEEMED -
CLASS A.............. (1,601,413) (118,467) (340,027)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 2,287,464 199,549 443,931
------------------ ------------------ --------------
SHARES SOLD -
CLASS B.............. 2,017,126(2) 469,263 879,514
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 241,165 3,688 23,066
SHARES REDEEMED -
CLASS B.............. (1,243,660) (89,092) (235,545)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 1,014,631 383,859 667,035
------------------ ------------------ --------------
SHARES SOLD -
CLASS C.............. 153,514 24,641 23,317
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 8,411 64 29
SHARES REDEEMED -
CLASS C.............. (40,691) (1,104) (59)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 121,234 23,601 23,287
------------------ ------------------ --------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 7,987,096 1,755,656 6,894,900(3)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 1,558,368 48,885 1,081,099
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (8,832,274) (1,291,122) (4,683,126)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 713,190 513,419 3,292,873
------------------ ------------------ --------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 661,435 $ 620,427 $ 2,812,753
------------------ ------------------ --------------
</TABLE>
92
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX EQUITY VALUE GROWTH
-------------------------------------- -------------------------------------- ------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 678,042,470 $ 536,277,099 $ 214,323,605 $ 284,877,531 $ 393,631,019
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 3,271,384 4,142,194 349,493 2,021,200 (1,452,527)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 76,599,895 30,876,204 18,728,410 29,851,190 93,817,675
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 3,959,932 106,433,974 821,226 (12,549,932) (28,751,547)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 83,831,211 141,452,372 19,899,129 19,322,458 63,613,601
------------------ ------------------ ------------------ ------------------ ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (800,901) (4,167,469) (49,975) (347,194) 0
CLASS B.............. 0 0 0 (1,539,521) 0
CLASS C.............. N/A N/A 0 (135,267) N/A
INSTITUTIONAL CLASS.... N/A N/A (297,172) (2,142) 0
CLASS O.............. 0 0 N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (24,468,798) (26,108,859) (4,529,283) (3,538,387) (41,351,152)
CLASS B.............. (3,014,572) (1,095,863) (8,583,570) (13,698,449) (8,082,200)
CLASS C.............. N/A N/A (132,979) (6,065,329) N/A
INSTITUTIONAL CLASS.... N/A N/A (18,332,235) (109,507) (2,317,941)
CLASS O.............. 0 0 N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 48,788,411 69,401,290 1,807,838 2,964,282 34,010,891(4)
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 25,103,225 31,362,005 4,291,930 3,820,382 40,730,919
COST OF SHARES REDEEMED
- CLASS A............ (139,374,689) (115,068,851) (11,840,226) (17,801,986) (83,042,476)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (65,483,053) (14,305,556) (5,740,458) (11,017,322) (8,300,666)
------------------ ------------------ ------------------ ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 40,397,622 49,781,286 2,933,271 5,260,255 13,859,024(4)
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 2,930,535 1,083,255 8,492,555 6,221,027 7,997,501
COST OF SHARES REDEEMED
- CLASS B............ (18,976,214) (4,874,045) (21,291,312) (24,273,622) (14,064,298)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 24,351,943 45,990,496 (9,865,486) (12,792,340) 7,792,227
------------------ ------------------ ------------------ ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A 96,346 493,290 N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A 122,175 95,492 N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A (450,925) (920,285) N/A
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A (232,404) (331,503) N/A
------------------ ------------------ ------------------ ------------------ ------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... N/A N/A 6,343,404 12,846,565 132,163,661(4)
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A 15,073,176 12,753,772 1,401,843
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... N/A N/A (67,194,360) (65,899,760) (105,517,762)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A (45,777,780) (40,299,423) 28,047,742
------------------ ------------------ ------------------ ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... 10,031,924 250 N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. 0 0 N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ (19,377) 0 N/A N/A N/A
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ 10,012,547 250 N/A N/A N/A
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 24,428,377 141,765,371 (73,642,213) (70,553,926) 39,401,611
------------------ ------------------ ------------------ ------------------ ------------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 702,470,847 $ 678,042,470 $ 140,681,392 $ 214,323,605 $ 433,032,630
------------------ ------------------ ------------------ ------------------ ------------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 580,706 891,085 139,461 189,690 1,549,543(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 298,520 436,527 339,476 252,766 1,945,125
SHARES REDEEMED -
CLASS A.............. (1,649,480) (1,495,986) (887,286) (1,139,567) (3,656,769)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (770,254) (168,374) (408,349) (697,111) (162,101)
------------------ ------------------ ------------------ ------------------ ------------------
SHARES SOLD -
CLASS B.............. 480,807 634,985 275,143 411,338 904,745(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 34,781 15,222 820,265 503,665 542,203
SHARES REDEEMED -
CLASS B.............. (224,994) (63,325) (1,960,702) (1,904,338) (879,559)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 290,594 586,882 (865,294) (989,335) 567,389
------------------ ------------------ ------------------ ------------------ ------------------
SHARES SOLD -
CLASS C.............. N/A N/A 8,893 38,141 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A 11,804 7,730 N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A (41,960) (72,519) N/A
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A (21,263) (26,648) N/A
------------------ ------------------ ------------------ ------------------ ------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... N/A N/A 471,033 818,239 5,279,130(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A 1,193,200 844,162 57,078
SHARES REDEEMED -
INSTITUTIONAL CLASS.... N/A N/A (5,141,894) (4,180,892) (4,031,149)
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A (3,477,661) (2,518,491) 1,305,059
------------------ ------------------ ------------------ ------------------ ------------------
SHARES SOLD -
CLASS O.............. 117,127 3 N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. 0 0 N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. (218) 0 N/A N/A N/A
------------------ ------------------ ------------------ ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ 116,909 3 N/A N/A N/A
------------------ ------------------ ------------------ ------------------ ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 2,463,601 $ 0 $ (577) $ 0 $ 0
------------------ ------------------ ------------------ ------------------ ------------------
<CAPTION>
GROWTH
------------------
FOR THE
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 368,436,666
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (199,964)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 51,072,520
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 54,639,066
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 105,511,622
------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (132,579)
CLASS B.............. 0
CLASS C.............. N/A
INSTITUTIONAL CLASS.... (19,031)
CLASS O.............. N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (47,058,207)
CLASS B.............. (7,706,288)
CLASS C.............. N/A
INSTITUTIONAL CLASS.... (2,310,431)
CLASS O.............. N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 24,458,931
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 46,699,469
COST OF SHARES REDEEMED
- CLASS A............ (101,716,364)
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (30,557,964)
------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 10,008,441
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 7,535,252
COST OF SHARES REDEEMED
- CLASS B............ (11,472,924)
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 6,070,769
------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A
------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 4,328,154
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 1,358,567
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (4,290,259)
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 1,396,462
------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A
------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A
------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 25,194,353
------------------
NET ASSETS:
-------------------------
ENDING NET ASSETS........ $ 393,631,019
------------------
SHARE ISSUED AND REDEEMED
SHARES SOLD -
CLASS A.............. 1,073,917
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 2,283,029
SHARES REDEEMED -
CLASS A.............. (4,470,969)
------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (1,114,023)
------------------
SHARES SOLD -
CLASS B.............. 617,603
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 520,123
SHARES REDEEMED -
CLASS B.............. (712,314)
------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 425,412
------------------
SHARES SOLD -
CLASS C.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
SHARES REDEEMED -
CLASS C.............. N/A
------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A
------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 160,901
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 56,609
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (158,939)
------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 58,571
------------------
SHARES SOLD -
CLASS O.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
SHARES REDEEMED -
CLASS O.............. N/A
------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A
------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (270,938)
------------------
</TABLE>
93
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH EQUITY
------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 687,495,546 $ 956,955,739 $1,071,433,000
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (2,130,806) 68,585 (885,620)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 114,185,585 42,441,356 65,419,167
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 57,656,212 (12,838,022) 4,756,363
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 169,710,991 29,671,919 69,289,910
------------------ ------------------ --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 (14,034)
CLASS B.............. 0 0 0
CLASS C.............. 0 0 (30)
INSTITUTIONAL CLASS.... 0 0 (743,167)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (2,574,817) 0 (1,027,051)
CLASS B.............. (3,092,032) 0 (1,049,213)
CLASS C.............. (89,230) 0 (2,165)
INSTITUTIONAL CLASS.... (95,616,301) 0 (54,387,314)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 88,141,302 73,248,493 3,376,261
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 2,570,732 0 1,037,693
COST OF SHARES REDEEMED
- CLASS A............ (99,537,405) (67,273,692) (8,534,711)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (8,825,371) 5,974,801 (4,120,757)
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 3,936,622 698,018 3,615,753
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 3,034,802 0 1,032,313
COST OF SHARES REDEEMED
- CLASS B............ (2,732,782) (764,230) (2,465,177)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 4,238,642 (66,212) 2,182,889
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 2,410,848 303,286 54,890
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 89,222 0 2,195
COST OF SHARES REDEEMED
- CLASS C............ (625,238) (28,052) (49)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 1,874,832 275,234 57,036
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 108,338,934 27,122,299 120,780,283
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 95,133,622 0 55,000,456
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (160,331,512) (332,438,234) (300,444,104)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 43,141,044 (305,315,935) (124,663,365)
------------------ ------------------ --------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 108,767,758 (269,460,193) (114,477,261)
------------------ ------------------ --------------
NET ASSETS:
---------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 796,263,304 $ 687,495,546 $ 956,955,739
------------------ ------------------ --------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 2,263,222 1,951,289 96,167
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 70,450 0 31,004
SHARES REDEEMED -
CLASS A.............. (2,534,203) (1,785,546) (251,667)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (200,531) 165,743 (124,496)
------------------ ------------------ --------------
SHARES SOLD -
CLASS B.............. 103,596 19,110 106,848
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 85,705 0 31,425
SHARES REDEEMED -
CLASS B.............. (70,997) (20,669) (73,787)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 118,304 (1,559) 64,486
------------------ ------------------ --------------
SHARES SOLD -
CLASS C.............. 60,777 7,771 1,587
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 2,448 0 65
SHARES REDEEMED -
CLASS C.............. (15,365) (734) (1)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 47,860 7,037 1,651
------------------ ------------------ --------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 2,748,650 720,339 3,479,533
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 2,606,401 0 1,643,276
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (4,062,523) (8,674,078) (8,597,077)
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 1,292,528 (7,953,739) (3,474,268)
------------------ ------------------ --------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ --------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ --------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (1,460,762) $ (362,607) $ (159,002)
------------------ ------------------ --------------
</TABLE>
94
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDEX INTERNATIONAL
------------------------------------------------------ ------------------
FOR THE FOR THE FOUR FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 813,861,358 $ 1,154,289,145 $ 784,205,413 $ 279,133,783
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 9,794,445 3,615,364 11,996,814 (230,645)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 28,768,486 8,002,770 11,843,739 66,206,018
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 70,683,861 (1,124,074) 152,331,751 (18,910,739)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 109,246,792 10,494,060 176,172,304 47,064,634
------------------ ------------------ -------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A 0
CLASS B.............. N/A N/A N/A 0
CLASS C.............. N/A N/A N/A N/A
INSTITUTIONAL CLASS.... (4,724,090) (7,598,355) (9,565,947) 0
CLASS O.............. N/A N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A (339,005)
CLASS B.............. N/A N/A N/A (214,671)
CLASS C.............. N/A N/A N/A N/A
INSTITUTIONAL CLASS.... (9,975,644) (5,815,851) (8,472,998) (27,284,142)
CLASS O.............. N/A N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A 29,762,238
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 338,850
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A (28,317,461)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A 1,783,627
------------------ ------------------ -------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A 1,449,345
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 210,493
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A (414,579)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A 1,245,259
------------------ ------------------ -------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 315,030,416 92,744,713 420,043,740 137,444,484
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 12,280,133 12,024,701 16,802,405 21,473,616
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (252,744,449) (442,277,055) (224,895,772) (166,371,250)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 74,566,100 (337,507,641) 211,950,373 (7,453,150)
------------------ ------------------ -------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 169,113,158 (340,427,787) 370,083,732 14,802,552
------------------ ------------------ -------------- ------------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 982,974,516 $ 813,861,358 $1,154,289,145 $ 293,936,335
------------------ ------------------ -------------- ------------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A 1,124,606
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 13,441
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A (1,054,112)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A 83,935
------------------ ------------------ -------------- ------------------
SHARES SOLD -
CLASS B.............. N/A N/A N/A 55,516
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 8,439
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A (16,204)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A 47,751
------------------ ------------------ -------------- ------------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 5,343,777 1,654,171 8,282,644 5,212,047
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 207,645 216,426 337,195 850,777
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (4,256,485) (7,757,609) (4,484,432) (6,262,701)
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 1,294,937 (5,887,012) 4,135,407 (199,877)
------------------ ------------------ -------------- ------------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A N/A
------------------ ------------------ -------------- ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 8,685,611 $ 3,615,256 $ 7,598,247 $ (82,665)
------------------ ------------------ -------------- ------------------
<CAPTION>
INTERNATIONAL
--------------------------------
FOR THE FOUR FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 276,079,108 $285,253,931
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 843,930 1,173,546
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 11,341,632 19,971,609
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... (748,412) (25,695,183)
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 11,437,150 (4,550,028)
------------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 (28,212)
CLASS B.............. 0 0
CLASS C.............. N/A N/A
INSTITUTIONAL CLASS.... 0 (2,016,250)
CLASS O.............. N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 (77,857)
CLASS B.............. 0 (43,845)
CLASS C.............. N/A N/A
INSTITUTIONAL CLASS.... 0 (5,871,186)
CLASS O.............. N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 316,554 1,205,713
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 105,370
COST OF SHARES REDEEMED
- CLASS A............ (583,425) (1,683,986)
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (266,871) (372,903)
------------------ ------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 182,679 177,716
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 43,448
COST OF SHARES REDEEMED
- CLASS B............ (280,747) (384,535)
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ (98,068) (163,371)
------------------ ------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A
------------------ ------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 16,178,616 62,195,018(5)
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 6,065,939
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (24,196,152) (64,312,128)
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... (8,017,536) 3,948,829
------------------ ------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A
------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 3,054,675 (9,174,823)
------------------ ------------
NET ASSETS:
-------------------------
ENDING NET ASSETS........ $ 279,133,783 $276,079,108
------------------ ------------
SHARE ISSUED AND REDEEMED
SHARES SOLD -
CLASS A.............. 13,424 56,943
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 3,714
SHARES REDEEMED -
CLASS A.............. (24,360) (75,036)
------------------ ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (10,936) (14,379)
------------------ ------------
SHARES SOLD -
CLASS B.............. 7,788 8,712
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 1,275
SHARES REDEEMED -
CLASS B.............. (11,596) (17,633)
------------------ ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ (3,808) (7,646)
------------------ ------------
SHARES SOLD -
CLASS C.............. N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A
------------------ ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A
------------------ ------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 679,900 2,843,353(5)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 204,563
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (1,019,113) (2,873,704)
------------------ ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... (339,213) 174,212
------------------ ------------
SHARES SOLD -
CLASS O.............. N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A
------------------ ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A
------------------ ------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 636,425 $ 124,058
------------------ ------------
</TABLE>
95
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
--------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
<S> <C> <C>
-----------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 74,363,026 $ 54,209,347
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (547,768) (340,209)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 4,923,939 1,389,052
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... (838,859) 17,289,884
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 3,537,312 18,338,727
------------------ ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (396,530) 0
CLASS B.............. (206,448) 0
CLASS C.............. (5,183) 0
INSTITUTIONAL CLASS.... (48,068)(6) N/A
CLASS O.............. N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (249,256) 0
CLASS B.............. (252,214) 0
CLASS C.............. (4,434) 0
INSTITUTIONAL CLASS.... (29,589)(6) N/A
CLASS O.............. N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 48,002,630 13,225,267
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 447,162 0
COST OF SHARES REDEEMED
- CLASS A............ (47,268,538) (9,375,889)
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 1,181,254 3,849,378
------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 23,841,750 4,426,553
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 443,992 0
COST OF SHARES REDEEMED
- CLASS B............ (5,259,990) (6,742,516)
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 19,025,752 (2,315,963)
------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 2,803,962 494,318
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 8,916 0
COST OF SHARES REDEEMED
- CLASS C............ (561,691) (212,781)
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 2,251,187 281,537
------------------ ------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 139,790,224(6) N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 47,829(6) N/A
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (7,073,484)(6) N/A
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 132,764,569(6) N/A
------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A
------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 157,568,352 20,153,679
------------------ ------------------
NET ASSETS:
-----------------------------------------------------------------
ENDING NET ASSETS........ $ 231,931,378 $ 74,363,026
------------------ ------------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 2,990,515 1,079,764
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 28,301 0
SHARES REDEEMED -
CLASS A.............. (2,970,663) (811,023)
------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 48,153 268,741
------------------ ------------------
SHARES SOLD -
CLASS B.............. 1,482,190 386,395
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 28,388 0
SHARES REDEEMED -
CLASS B.............. (331,718) (594,655)
------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 1,178,860 (208,260)
------------------ ------------------
SHARES SOLD -
CLASS C.............. 172,114 40,508
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 571 0
SHARES REDEEMED -
CLASS C.............. (35,609) (18,733)
------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 137,076 21,775
------------------ ------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 8,510,421(6) N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 3,047(6) N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (445,021)(6) N/A
------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 8,068,447(6) N/A
------------------ ------------------
SHARES SOLD -
CLASS O.............. N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A
------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A
------------------ ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 657,314
------------------ ------------------
</TABLE>
96
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH SMALL CAP GROWTH
----------------------------------------------------- --------------------------------------
FOR THE FOR THE FOUR FOR THE FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 1,192,183,731 $ 993,488,882 $ 232,499,225 $ 59,113,644 $ 81,834,324
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (13,250,452) (2,090,597) (3,030,143) (3,677,935) (573,422)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 27,782,601 3,410,766 38,470,599 121,458,345 10,238,590
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 403,688,896 (21,396,941) 110,679,616 18,973,273 26,628,803
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 418,221,045 (20,076,772) 146,120,072 136,753,683 36,293,971
------------------ ------------------ ------------- ------------------ ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 0 0 0
CLASS B.............. 0 0 0 0 0
CLASS C.............. 0(6) 0 0 0 0
INSTITUTIONAL CLASS.... 0 0 0 0 0
CLASS O.............. N/A N/A N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (5,218,477) 0 (82,577) (1,617,411) (859,083)
CLASS B.............. (6,525,128) 0 (70,277) (1,864,340) (1,058,347)
CLASS C.............. (42,228)(6) 0 0 (161,064) (111,106)
INSTITUTIONAL CLASS.... (24,942,890) 0 (8,107,762) (2,224,444) (5,153,962)
CLASS O.............. N/A N/A N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 230,697,544 63,888,122 263,443,496(7) 358,534,063(8) 24,654,196
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 5,051,195 0 82,347 1,418,980 813,764
COST OF SHARES REDEEMED
- CLASS A............ (180,287,502) (65,324,773) (91,794,834) (237,606,827) (24,675,057)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 55,461,237 (1,436,651) 171,731,009 122,346,216 792,903
------------------ ------------------ ------------- ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 227,040,879 51,266,495 158,195,013 81,724,758(8) 2,924,447
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 6,358,031 0 65,108 1,836,789 1,049,459
COST OF SHARES REDEEMED
- CLASS B............ (36,739,765) (4,397,701) (2,426,417) (13,137,728) (4,321,073)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 196,659,145 46,868,794 155,833,704 70,423,819 (347,167)
------------------ ------------------ ------------- ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 26,702,974(6) N/A N/A 26,227,096(8) 310,420
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 44,617(6) N/A N/A 69,465 58,548
COST OF SHARES REDEEMED
- CLASS C............ (1,642,772)(6) N/A N/A (7,211,796) (639,257)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 25,104,819(6) N/A N/A 19,084,765 (270,289)
------------------ ------------------ ------------- ------------------ ------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 673,807,270 263,385,563 408,193,236 176,348,096(8) 28,796,899
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 20,014,276 0 6,949,708 1,828,563 4,663,904
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (220,966,129) (90,046,085) (119,577,456) (46,014,948) (85,468,403)(9)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 472,855,417 173,339,478 295,565,488 132,161,711 (52,007,600)
------------------ ------------------ ------------- ------------------ ------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 1,131,572,940 198,694,849 760,989,657 474,902,935 (22,720,680)
------------------ ------------------ ------------- ------------------ ------------------
NET ASSETS:
------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 2,323,756,671 $ 1,192,183,731 $ 993,488,882 $ 534,016,579 $ 59,113,644
------------------ ------------------ ------------- ------------------ ------------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 3,253,314 1,063,136 5,058,714(7) 9,869,645(8) 1,056,895
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 74,335 0 1,664 51,171 45,871
SHARES REDEEMED -
CLASS A.............. (2,535,649) (1,096,599) (1,768,124) (5,883,452) (1,077,599)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 792,000 (33,463) 3,292,254 4,037,364 25,167
------------------ ------------------ ------------- ------------------ ------------------
SHARES SOLD -
CLASS B.............. 3,359,271 908,414 2,919,636 2,294,974(8) 141,608
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 100,178 0 1,398 67,578 60,003
SHARES REDEEMED -
CLASS B.............. (548,136) (77,709) (42,856) (337,782) (215,165)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 2,911,313 830,705 2,878,178 2,024,770 (13,554)
------------------ ------------------ ------------- ------------------ ------------------
SHARES SOLD -
CLASS C.............. 387,340(6) N/A N/A 788,541(8) 14,378
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 702(6) N/A N/A 2,557 3,349
SHARES REDEEMED -
CLASS C.............. (23,499)(6) N/A N/A (195,364) (32,061)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 364,543(6) N/A N/A 595,734 (14,334)
------------------ ------------------ ------------- ------------------ ------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 9,929,531 4,510,202 8,208,824 4,401,114(8) 1,043,798
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 313,017 0 149,263 64,843 260,262
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (3,258,901) (1,628,433) (2,373,039) (1,083,458) (3,609,504)
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 6,983,647 2,881,769 5,985,048 3,382,499 (2,305,444)
------------------ ------------------ ------------- ------------------ ------------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------ ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (5,916,999) $ 0 $ 0 $ 0 $ (559,288)
------------------ ------------------ ------------- ------------------ ------------------
</TABLE>
97
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP OPPORTUNITIES
-----------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 207,004,973 $ 210,700,901 $ 297,836,904
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (1,095,849) (327,056) (1,176,436)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 40,871,443 11,287,621 (30,744,151)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 46,369,927 (10,960,300) (11,334,217)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 86,145,521 265 (43,254,804)
------------------ ------------------ -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 0
CLASS B.............. 0 0 N/A
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 0
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0 (7,474)
CLASS B.............. 0 0 (5,893)
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 (280,588)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 2,332,173 3,716,775 1,872,644
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 7,338
COST OF SHARES REDEEMED
- CLASS A............ (7,938,758) (778,073) (3,174,125)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (5,606,585) 2,938,702 (1,294,143)
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 738,814 234,702 632,224
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 5,838
COST OF SHARES REDEEMED
- CLASS B............ (1,133,613) (323,342) (1,651,678)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ (394,799) (88,640) (1,013,616)
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 84,398,617 16,392,921 70,541,322
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 223,800
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (89,333,997) (22,939,176) (112,044,607)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... (4,935,380) (6,546,255) (41,279,485)
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 75,208,757 (3,695,928) (87,136,003)
------------------ ------------------ -------------
NET ASSETS:
--------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 282,213,730 $ 207,004,973 $ 210,700,901
------------------ ------------------ -------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 95,664 180,428 96,329
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 382
SHARES REDEEMED -
CLASS A.............. (306,261) (37,207) (158,680)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (210,597) 143,221 (61,969)
------------------ ------------------ -------------
SHARES SOLD -
CLASS B.............. 30,350 11,415 32,183
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 309
SHARES REDEEMED -
CLASS B.............. (47,128) (15,706) (87,408)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ (16,778) (4,291) (54,916)
------------------ ------------------ -------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 3,214,995 775,434 3,460,168
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 11,650
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (3,665,684) (1,090,956) (5,697,246)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... (450,689) (315,522) (2,225,428)
------------------ ------------------ -------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0 $ 0
------------------ ------------------ -------------
</TABLE>
98
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP VALUE
-----------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 17,404,425 $ 16,790,716 $ 6,422,256
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (95,745) (35,223) (55,622)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 1,827,017 665,890 (4,020,164)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... (1,709,035) 361,215 1,990,551
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 22,237 991,882 (2,085,235)
------------------ ------------------ -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 0
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
INSTITUTIONAL CLASS.... 0 0 (12,763)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 30,817,999(11) 485,799 16,716,253
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 0
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (5,639,333) (863,972) (4,249,795)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 25,178,666 (378,173) 12,466,458
------------------ ------------------ -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 25,200,903 613,709 10,368,460
------------------ ------------------ -------------
NET ASSETS:
--------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 42,605,328 $ 17,404,425 $ 16,790,716
------------------ ------------------ -------------
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
CLASS B.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
------------------ ------------------ -------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 2,547,892(11) 57,397 1,952,490
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 0
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (579,511) (101,674) (496,519)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 1,968,381 (44,277) 1,455,971
------------------ ------------------ -------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
------------------ ------------------ -------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (28,504) $ 0 $ 0
------------------ ------------------ -------------
<CAPTION>
SPECIALIZED
SMALL COMPANY GROWTH TECHNOLOGY (10)
----------------------------------------------------- ------------------
FOR THE FOR THE FOUR FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 515,292,247 $ 557,515,780 $ 748,269,389 $ 0
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (3,616,544) (958,201) (3,053,396) (22,029)
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS......... 140,240,856 44,116,954 (72,079,150) (319,303)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES... 34,953,588 (50,976,516) (11,124,316) 855,867
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 171,577,900 (7,817,763) (86,256,862) 514,535
------------------ ------------------ ------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A 0
CLASS B.............. N/A N/A N/A 0
CLASS C.............. N/A N/A N/A 0
INSTITUTIONAL CLASS.... 0 0 0 N/A
CLASS O.............. N/A N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A 0
CLASS B.............. N/A N/A N/A 0
CLASS C.............. N/A N/A N/A 0
INSTITUTIONAL CLASS.... 0 0 (49,666,455) N/A
CLASS O.............. N/A N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A 42,401,812
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 0
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A (51,062)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A 42,350,750
------------------ ------------------ ------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A 52,863,784
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 0
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A (36,496)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A 52,827,288
------------------ ------------------ ------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A 14,069,571
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A 0
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A (2,545)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A 14,067,026
------------------ ------------------ ------------- ------------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... 108,544,755 15,065,692 74,387,405 N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 48,333,313 N/A
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... (191,831,085) (49,471,462) (177,551,010) N/A
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... (83,286,330) (34,405,770) (54,830,292) N/A
------------------ ------------------ ------------- ------------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 88,291,570 (42,223,533) (190,753,609) 109,759,599
------------------ ------------------ ------------- ------------------
NET ASSETS:
-------------------------
ENDING NET ASSETS........ $ 603,583,817 $ 515,292,247 $ 557,515,780 $ 109,759,599
------------------ ------------------ ------------- ------------------
SHARE ISSUED AND REDEEMED
SHARES SOLD -
CLASS A.............. N/A N/A N/A 4,219,121
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 0
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A (4,929)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A 4,214,192
------------------ ------------------ ------------- ------------------
SHARES SOLD -
CLASS B.............. N/A N/A N/A 5,248,052
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 0
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A (3,594)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A 5,244,458
------------------ ------------------ ------------- ------------------
SHARES SOLD -
CLASS C.............. N/A N/A N/A 1,402,019
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A 0
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A (245)
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A 1,401,774
------------------ ------------------ ------------- ------------------
SHARES SOLD -
INSTITUTIONAL CLASS.... 3,127,857 527,999 2,679,836 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... 0 0 1,910,408 N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS.... (5,527,445) (1,779,620) (6,481,259) N/A
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... (2,399,588) (1,251,621) (1,891,015) N/A
------------------ ------------------ ------------- ------------------
SHARES SOLD -
CLASS O.............. N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A N/A
------------------ ------------------ ------------- ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (1,234,095) $ 0 $ 0 $ 0
------------------ ------------------ ------------- ------------------
</TABLE>
99
<PAGE>
STOCK FUNDS NOTES TO STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
(1) "Proceeds from shares sold" includes $22,258,550 and "Shares sold"
includes 2,579,206 as a result of the consolidation of the Founders Trust
Equity Fund on October 9, 1998.
(2) "Proceeds from shares sold" includes $125,869,259 for Class A shares, and
"Shares sold" includes 2,860,665 for Class A shares as a result of the
consolidation of the Stagecoach Diversified Equity Income Fund.
"Proceeds from shares sold" includes $48,432,762 for Class B shares, and
"Shares sold" includes 1,102,248 for Class B shares as a result of the
consolidation of the Stagecoach Diversified Equity Income Fund.
"Proceeds from shares sold" includes $144,393,246 for Institutional Class
shares, and "Shares sold" includes 3,436,758 for Institutional Class shares
as a result of the consolidation of the Great Plains Equity Fund.
(3) "Proceeds from shares sold" includes $30,884,547, and "Shares sold"
includes 833,816 as a result of the consolidation of the Victoria Bank &
Trust Income Equity Fund on October 10, 1998.
(4) "Proceeds from shares sold" includes $15,308,519 for Class A shares, and
"Shares sold" includes 724,149 for Class A shares as a result of the
consolidation of the Norwest Advantage ValuGrowth Stock Fund.
"Proceeds from shares sold" includes $7,495,609 for Class B shares, and
"Shares sold" includes 503,399 for Class B shares as a result of the
consolidation of the Norwest Advantage ValuGrowth Stock Fund.
"Proceeds from shares sold" includes $116,058,882 for Institutional Class
shares, and "Shares sold" includes 4,679,793 for Institutional Class shares
as a result of the consolidation of the Norwest Advantage ValuGrowth Stock
Fund.
(5) "Proceeds from shares sold" includes $1,767,537, and "Shares sold"
includes 91,630 as a result of the consolidation of the Founders Trust
International Fund on October 10, 1998.
(6) This class of shares commenced operations on November 8, 1999.
(7) "Proceeds from shares sold" includes $169,603,833, and "Shares sold"
includes 3,418,054 as a result of the consolidation of the Fort Worth
Stock Fund on October 10, 1998.
(8) "Proceeds from shares sold" includes $4,273,417 for Class A shares, and
"Shares sold" includes 144,763 for Class A shares as a result of the
consolidation of the Norwest Advantage Small Company Stock Fund.
"Proceeds from shares sold" includes $105,513,393 for Class A shares, and
"Shares sold" includes 3,574,302 for Class A shares as a result of the
consolidation of the Stagecoach Strategic Growth Fund.
"Proceeds from shares sold" includes $3,012,247 for Class B shares, and
"Shares sold" includes 104,122 for Class B shares as a result of the
consolidation of the Norwest Advantage Small Company Stock Fund.
"Proceeds from shares sold" includes $24,186,574 for Class B shares, and
"Shares sold" includes 836,038 for Class B shares as a result of the
consolidation of the Stagecoach Strategic Growth Fund.
"Proceeds from shares sold" includes $14,373,924 for Class C shares, and
"Shares sold" includes 497,024 for Class C shares as a result of the
consolidation of the Stagecoach Strategic Growth Fund.
"Proceeds from shares sold" includes $20,130,677 for Institutional Class
shares, and "Shares sold" includes 670,576 for Institutional Class shares
as a result of the consolidation of the Norwest Advantage Small Company
Stock Fund.
(9) "Cost of shares redeemed" includes $777,027 for Institutional Class shares
as a result of the conversion of part of the Institutional Class shares
into a collective fund.
(10) This Fund commenced operations on September 18, 2000.
(11) "Proceeds from shares sold" includes $23,135,585 for Institutional Class
shares, and "Shares sold" includes 2,117,998 for Institutional Class
shares as a result of the consolidation of the Great Plains Premier Fund.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
100
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
101
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
DISCIPLINED GROWTH
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 11.41 0.00 2.21 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 11.41 (0.01) 0.01 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 10.44 (0.01) 0.98 0.00
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... $ 10.00 0.01 0.44 (0.01)
DIVERSIFIED EQUITY
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 48.01 0.16 7.39 (0.16)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 48.25 0.07 (0.31) 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 43.06 0.08 6.29 (0.20)
JUNE 1, 1997 TO MAY 31,
1998................... $ 36.51 0.16 8.99 (0.27)
JUNE 1, 1996 TO MAY 31,
1997................... $ 30.56 0.20 6.10 (0.16)
MAY 2, 1996(3) TO
MAY 31, 1996........... $ 29.89 0.02 0.65 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 47.33 (0.18) 7.22 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 47.69 (0.04) (0.32) 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 42.69 (0.11) 6.09 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 36.31 (0.06) 8.85 (0.08)
JUNE 1, 1996 TO MAY 31,
1997................... $ 30.54 0.03 6.00 (0.07)
MAY 6, 1996(3) TO
MAY 31, 1996........... $ 29.41 0.02 1.11 0.00
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 47.90 (0.07) 7.20 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 48.26 0.08 (0.44) 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 38.71 0.08 10.65 (0.20)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 48.00 0.18 7.37 (0.16)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 48.25 0.04 (0.29) 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 43.06 0.22 6.15 (0.20)
JUNE 1, 1997 TO MAY 31,
1998................... $ 36.50 0.22 8.94 (0.27)
JUNE 1, 1996 TO MAY 31,
1997................... $ 30.55 0.25 6.05 (0.16)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 27.53 0.16 4.25 (0.42)
DIVERSIFIED SMALL CAP
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 9.54 0.00 2.26 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 9.52 (0.01) 0.03 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 7.77 (0.02) 1.77 0.00(8)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 8.96 (0.10) 2.13 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 8.96 (0.03) 0.03 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 7.97 (0.03) 1.02 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 9.02 0.00 2.16 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 8.99 (0.01) 0.04 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 10.52 0.00 (1.53) 0.00(8)
DECEMBER 31, 1997(3) TO
MAY 31, 1998........... $ 10.00 0.00 0.52 0.00
EQUITY INCOME
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 44.20 0.44 0.10 (0.42)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 46.36 0.17 (2.09) (0.24)
JUNE 1, 1998 TO MAY 31,
1999................... $ 41.19 0.51 5.45 (0.53)
JUNE 1, 1997 TO MAY 31,
1998................... $ 33.16 0.52 8.77 (0.54)
JUNE 1, 1996 TO MAY 31,
1997................... $ 27.56 0.57 5.54 (0.51)
MAY 2, 1996(3) TO
MAY 31, 1996........... $ 26.94 0.07 0.55 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 44.17 0.11 0.11 (0.13)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 46.27 0.05 (2.08) (0.07)
JUNE 1, 1998 TO MAY 31,
1999................... $ 41.12 0.19 5.45 (0.23)
JUNE 1, 1997 TO MAY 31,
1998................... $ 33.09 0.24 8.75 (0.24)
JUNE 1, 1996 TO MAY 31,
1997................... $ 27.54 0.36 5.52 (0.33)
MAY 2, 1996(3) TO
MAY 31, 1996........... $ 26.94 0.02 0.58 0.00
</TABLE>
102
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ----------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
DISCIPLINED GROWTH
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (0.25) $ 13.37 (0.02)% 1.00%(4) 1.06%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 11.41 (0.30)% 1.23%(4) 1.43%(4)
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 $ 11.41 (0.14)% 1.25%(4) 1.45%(4)
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... 0.00 $ 10.44 0.14% 1.25%(4) 2.44%(4)
DIVERSIFIED EQUITY
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.67) $ 52.73 0.31% 1.00%(4) 1.51%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 48.01 0.45% 1.00%(4) 1.20%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.98) $ 48.25 0.47% 1.00%(4) 1.22%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (2.33) $ 43.06 0.60% 1.00%(4) 1.20%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.19) $ 36.51 0.81% 1.02%(4) 1.40%(4)
MAY 2, 1996(3) TO
MAY 31, 1996........... 0.00 $ 30.56 1.88% 1.52%(4) 4.06%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.67) $ 51.70 (0.44)% 1.75%(4) 2.28%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 47.33 (0.30)% 1.75%(4) 2.20%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.98) $ 47.69 (0.28)% 1.75%(4) 2.22%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (2.33) $ 42.69 (0.15)% 1.75%(4) 2.19%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.19) $ 36.31 0.09% 1.76%(4) 2.41%(4)
MAY 6, 1996(3) TO
MAY 31, 1996........... 0.00 $ 30.54 1.24% 2.37%(4) 4.95%(4)
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.67) $ 52.36 (0.40)% 1.75%(4) 2.95%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 47.90 (0.28)% 1.75%(4) 2.63%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... (0.98) $ 48.26 (0.28)% 1.75%(4) 5.15%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.67) $ 52.72 0.31% 1.00%(4) 1.10%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 48.00 0.44% 1.00%(4) 1.18%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.98) $ 48.25 0.47% 1.00%(4) 1.17%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (2.33) $ 43.06 0.60% 1.00%(4) 1.13%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.19) $ 36.50 0.79% 1.02%(4) 1.31%(4)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (0.97) $ 30.55 1.00% 1.06%(4) 1.30%(4)
DIVERSIFIED SMALL CAP
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 11.80 (0.20)% 1.40%(4) 1.91%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 9.54 (0.28)% 1.40%(4) 2.56%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 0.00 $ 9.52 (0.22)% 1.40%(4) 2.30%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 10.99 (0.90)% 2.15%(4) 2.77%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 8.96 (1.14)% 2.15%(4) 4.21%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 0.00 $ 8.96 (0.84)% 1.99%(4) 5.63%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 11.18 0.05% 1.20%(4) 1.39%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 9.02 (0.18)% 1.20%(4) 1.59%(4)
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 $ 8.99 (0.05)% 1.20%(4) 1.65%(4)
DECEMBER 31, 1997(3) TO
MAY 31, 1998........... 0.00 $ 10.52 0.25% 1.21%(4) 2.65%(4)
EQUITY INCOME
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.04) $ 41.28 1.07% 1.10%(4) 1.28%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 44.20 1.12% 0.85%(4) 0.90%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.26) $ 46.36 1.23% 0.85%(4) 0.93%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.72) $ 41.19 1.44% 0.85%(4) 0.91%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 33.16 1.95% 0.85% 0.93%
MAY 2, 1996(3) TO
MAY 31, 1996........... 0.00 $ 27.56 3.69% 0.91% 1.91%
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.04) $ 41.22 0.28% 1.85%(4) 2.03%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 44.17 0.37% 1.60%(4) 1.90%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.26) $ 46.27 0.48% 1.60%(4) 1.94%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.72) $ 41.12 0.69% 1.60%(4) 1.91%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 33.09 1.24% 1.59% 1.96%
MAY 2, 1996(3) TO
MAY 31, 1996........... 0.00 $ 27.54 2.92% 1.72% 2.63%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
-------------------------
DISCIPLINED GROWTH
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 19.65% 106%(5) $ 31,775
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00% 21%(5) $ 49,973
JUNE 1, 1998 TO MAY 31,
1999................... 9.29% 90%(5) $ 54,307
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... 4.50% 68%(5)(6) $ 12,325
DIVERSIFIED EQUITY
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.99% 38%(7) $ 95,646
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.50)% 13%(7) $ 70,624
JUNE 1, 1998 TO MAY 31,
1999................... 15.08% 35%(7) $ 69,768
JUNE 1, 1997 TO MAY 31,
1998................... 26.08% 23%(7) $ 56,350
JUNE 1, 1996 TO MAY 31,
1997................... 20.75% 48% $ 25,271
MAY 2, 1996(3) TO
MAY 31, 1996........... 2.24% 6% $ 2,699
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.10% 38%(7) $ 143,472
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.75)% 13%(7) $ 113,874
JUNE 1, 1998 TO MAY 31,
1999................... 14.24% 35%(7) $ 111,106
JUNE 1, 1997 TO MAY 31,
1998................... 25.13% 23%(7) $ 81,548
JUNE 1, 1996 TO MAY 31,
1997................... 19.86% 48% $ 33,870
MAY 6, 1996(3) TO
MAY 31, 1996........... 3.84% 6% $ 2,447
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.11% 38%(7) $ 8,526
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.75)% 13%(7) $ 2,018
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 28.02% 35%(7) $ 542
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.99% 38%(7) $ 1,938,206
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.52)% 13%(7) $ 1,902,474
JUNE 1, 1998 TO MAY 31,
1999................... 15.08% 35%(7) $ 1,629,191
JUNE 1, 1997 TO MAY 31,
1998................... 26.12% 23%(7) $ 1,520,343
JUNE 1, 1996 TO MAY 31,
1997................... 20.76% 48% $ 1,212,565
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 16.38% 6% $ 907,223
DIVERSIFIED SMALL CAP
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 23.69% 121%(7) $ 675
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.21% 39%(7) $ 1,271
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 22.52% 112%(7) $ 1,504
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 22.66% 121%(7) $ 826
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00% 39%(7) $ 557
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 12.42% 112%(7) $ 476
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 23.95% 121%(7) $ 115,700
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.33% 39%(7) $ 67,459
JUNE 1, 1998 TO MAY 31,
1999................... (14.54)% 112%(7) $ 60,261
DECEMBER 31, 1997(3) TO
MAY 31, 1998........... 5.20% 93%(7) $ 12,551
EQUITY INCOME
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 1.17% 9%(5) $ 196,314
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (4.16)% 5%(5) $ 109,081
JUNE 1, 1998 TO MAY 31,
1999................... 14.74% 3%(5) $ 105,162
JUNE 1, 1997 TO MAY 31,
1998................... 28.64% 3%(5) $ 75,144
JUNE 1, 1996 TO MAY 31,
1997................... 22.40% 5% $ 43,708
MAY 2, 1996(3) TO
MAY 31, 1996........... 2.30% 1% $ 31,448
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.41% 9%(5) $ 152,682
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (4.40)% 5%(5) $ 118,792
JUNE 1, 1998 TO MAY 31,
1999................... 13.90% 3%(5) $ 106,688
JUNE 1, 1997 TO MAY 31,
1998................... 27.67% 3%(5) $ 67,385
JUNE 1, 1996 TO MAY 31,
1997................... 21.48% 5% $ 33,626
MAY 2, 1996(3) TO
MAY 31, 1996........... 2.23% 1% $ 17,318
</TABLE>
103
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 45.30 0.19 0.03 (0.16)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 47.49 0.08 (2.17) (0.10)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 37.26 0.47 10.39 (0.48)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 44.19 0.52 0.12 (0.52)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 46.35 0.18 (2.10) (0.24)
JUNE 1, 1998 TO MAY 31,
1999................... $ 41.18 0.51 5.45 (0.53)
JUNE 1, 1997 TO MAY 31,
1998................... $ 33.16 0.52 8.76 (0.54)
JUNE 1, 1996 TO MAY 31,
1997................... $ 27.56 0.56 5.55 (0.51)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 24.02 0.29 4.02 (0.69)
EQUITY INDEX
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.14 0.33 9.36 (0.10)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 64.93 0.53 16.54 (0.53)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 70.32 0.33 (5.39) (0.33)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 49.60 0.48 22.31 (0.48)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 46.24 0.25 4.61 (0.25)
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... $ 41.45 0.42 4.79 (0.42)
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... $ 31.42 0.59 10.65 (0.59)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.19 (0.16) 9.22 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 65.03 (0.03) 16.52 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 70.41 0.04 (5.38) (0.04)
FEBRUARY 17, 1998(3) TO
MARCH 31, 1998......... $ 65.18 (0.01) 5.24 0.00
CLASS O
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.73 (0.35) 10.45 0.00
FEBRUARY 1, 1999(3) TO
SEPTEMBER 30, 1999..... $ 78.00 0.44 0.45 (0.16)
EQUITY VALUE(11)
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 14.25 0.05 1.52 (0.03)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 14.93 0.14 0.58 (0.14)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 18.15 0.09 (3.22) (0.09)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 14.43 0.17 5.58 (0.17)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 12.66 0.08 1.89 (0.08)
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... $ 13.27 0.20 1.60 (0.19)
OCTOBER 1, 1994 TO
SEPTEMBER 30, 1995..... $ 12.36 0.24 1.63 (0.25)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 11.68 (0.03) 1.23 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 12.23 0.02 0.48 (0.02)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 14.86 0.02 (2.63) (0.02)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 11.81 0.05 4.57 (0.05)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 10.34 0.01 1.57 (0.01)
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... $ 10.00 0.00 0.34 0.00
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 11.68 (0.04) 1.23 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 12.23 0.02 0.48 (0.02)
APRIL 1, 1998(3) TO
SEPTEMBER 30, 1998..... $ 14.86 0.02 (2.63) (0.02)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 14.25 0.07 1.50 (0.04)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 14.92 0.15 0.59 (0.15)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 18.15 0.10 (3.23) (0.10)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 14.43 0.20 5.58 (0.20)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 12.65 0.09 1.89 (0.08)
OCTOBER 1, 1995(3) TO
SEPTEMBER 30, 1996..... $ 13.27 0.22 1.61 (0.23)
GROWTH
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 22.85 (0.05) 3.07 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 20.48 0.01 5.65 (0.01)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 22.09 0.05 (1.61) (0.05)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 19.20 0.11 6.18 (0.11)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 17.91 0.06 1.34 (0.06)
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... $ 17.26 0.07 2.00 (0.07)
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... $ 14.10 0.19 3.87 (0.19)
</TABLE>
104
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ----------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.04) $ 42.32 0.29% 1.85%(4) 1.96%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 45.30 0.42% 1.60%(4) 2.37%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... (0.15) $ 47.49 0.48% 1.60%(4) 4.37%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.04) $ 41.27 1.21% 0.85%(4) 0.87%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 44.19 1.11% 0.85%(4) 0.88%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.26) $ 46.35 1.23% 0.85%(4) 0.89%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.72) $ 41.18 1.43% 0.85%(4) 0.86%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 33.16 1.97% 0.85% 0.90%
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (0.08) $ 27.56 2.72% 0.86% 1.13%
EQUITY INDEX
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.19) $ 84.54 0.54% 0.71% 0.85%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (3.33) $ 78.14 0.68% 0.71% 0.80%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 64.93 0.94% 0.71% 0.77%
APRIL 1, 1997 TO
MARCH 31, 1998......... (1.59) $ 70.32 0.80%(9) 0.89%(9) 0.95%(9)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (1.25) $ 49.60 1.02%(9) 0.97%(9) 1.07%(9)
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... 0.00 $ 46.24 1.28%(9) 1.01%(9) 1.08%(9)
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... (0.62) $ 41.45 1.59% 0.96% 1.00%
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.19) $ 84.06 (0.21)% 1.46% 1.72%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (3.33) $ 78.19 (0.06)% 1.45% 1.61%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 65.03 0.14% 1.45% 1.58%
FEBRUARY 17, 1998(3) TO
MARCH 31, 1998......... 0.00 $ 70.41 (0.19)% 1.45% 1.64%
CLASS O
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.21) $ 85.62 0.81% 0.50% 0.69%
FEBRUARY 1, 1999(3) TO
SEPTEMBER 30, 1999..... 0.00 $ 78.73 0.00% 0.00% 0.00%
EQUITY VALUE(11)
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.27) $ 13.52 0.32% 1.18% 1.54%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.26) $ 14.25 0.85% 1.17% 1.26%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 14.93 1.06% 1.09% 1.09%
APRIL 1, 1997 TO
MARCH 31, 1998......... (1.86) $ 18.15 1.03% 1.07% 1.16%
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.12) $ 14.43 1.14% 1.05% 1.12%
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... (2.22) $ 12.66 1.73% 1.18% 1.22%
OCTOBER 1, 1994 TO
SEPTEMBER 30, 1995..... (0.71) $ 13.27 1.97% 0.96% 0.98%
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (1.86) $ 11.02 (0.42)% 1.93% 2.34%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.03) $ 11.68 0.18% 1.83% 2.02%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 12.23 0.36% 1.81% 1.81%
APRIL 1, 1997 TO
MARCH 31, 1998......... (1.52) $ 14.86 0.42% 1.76% 1.83%
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.10) $ 11.81 0.34% 1.70% 2.19%
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... 0.00 $ 10.34 1.83% 0.00% N/A
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (1.86) $ 11.01 (0.40)% 1.93% 2.22%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.04) $ 11.67 0.18% 1.83% 2.32%
APRIL 1, 1998(3) TO
SEPTEMBER 30, 1998..... 0.00 $ 12.23 0.41% 1.83% 2.84%
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.27) $ 13.51 0.51% 1.00% 1.05%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.26) $ 14.25 0.96% 1.06% 1.08%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 14.92 1.17% 0.97% 0.97%
APRIL 1, 1997 TO
MARCH 31, 1998......... (1.86) $ 18.15 1.18% 0.95% 0.98%
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.12) $ 14.43 1.25% 0.95% 0.99%
OCTOBER 1, 1995(3) TO
SEPTEMBER 30, 1996..... (2.22) $ 12.65 1.69% 0.87% 0.92%
GROWTH
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.05) $ 22.82 (0.22)% 1.12% 1.42%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (3.28) $ 22.85 0.05% 1.10% 1.13%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 20.48 0.42% 1.08% 1.08%
APRIL 1, 1997 TO
MARCH 31, 1998......... (3.29) $ 22.09 0.53% 1.12% 1.13%
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.05) $ 19.20 0.65% 1.14% N/A
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... (1.35) $ 17.91 0.56% 1.18% 1.19%
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... (0.71) $ 17.26 1.23% 1.18% 1.21%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
-------------------------
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.41% 9%(5) $ 7,115
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (4.41)% 5%(5) $ 2,124
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 28.55% 3%(5) $ 1,106
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 1.39% 9%(5) $ 1,403,624
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (4.16)% 5%(5) $ 1,471,410
JUNE 1, 1998 TO MAY 31,
1999................... 14.75% 3%(5) $ 1,519,541
JUNE 1, 1997 TO MAY 31,
1998................... 28.61% 3%(5) $ 1,214,385
JUNE 1, 1996 TO MAY 31,
1997................... 22.40% 5% $ 425,197
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 18.14% 1% $ 230,831
EQUITY INDEX
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 12.43% 8% $ 596,083
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 26.82% 6% $ 611,111
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (7.22)% 6% $ 518,778
APRIL 1, 1997 TO
MARCH 31, 1998......... 46.48% 4% $ 578,882
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 10.63% 2% $ 406,739
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... 12.60% 1%(10) $ 370,439
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 35.99% 6% $ 327,208
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 11.58% 8% $ 96,378
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 25.86% 6% $ 66,931
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (7.59)% 6% $ 17,499
FEBRUARY 17, 1998(3) TO
MARCH 31, 1998......... 8.02% 4% $ 3,811
CLASS O
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 12.87% 8% $ 10,010
FEBRUARY 1, 1999(3) TO
SEPTEMBER 30, 1999..... 27.22% 6% $ 0
EQUITY VALUE(11)
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 12.12% 117% $ 24,605
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 4.34% 72% $ 31,764
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (17.27)% 23% $ 43,679
APRIL 1, 1997 TO
MARCH 31, 1998......... 41.76% 50% $ 52,392
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 15.63% 45% $ 20,798
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 14.27% 91% $ 18,453
OCTOBER 1, 1994 TO
SEPTEMBER 30, 1995..... 16.58% 75% $ 170,406
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 11.28% 117% $ 45,636
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 3.68% 72% $ 58,490
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (17.54)% 23% $ 73,343
APRIL 1, 1997 TO
MARCH 31, 1998......... 40.87% 50% $ 72,428
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 15.31% 45% $ 2,542
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... 3.40% 91% $ 0
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 11.18% 117% $ 560
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 3.69% 72% $ 873
APRIL 1, 1998(3) TO
SEPTEMBER 30, 1998..... (17.57)% 23% $ 1,239
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 12.18% 117% $ 69,880
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 4.51% 72% $ 123,197
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (17.26)% 23% $ 166,616
APRIL 1, 1997 TO
MARCH 31, 1998......... 42.02% 50% $ 228,452
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 15.73% 45% $ 193,161
OCTOBER 1, 1995(3) TO
SEPTEMBER 30, 1996..... 14.58% 91% $ 206,620
GROWTH
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 14.40% 51% $ 311,038
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 29.54% 38% $ 315,134
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (7.08)% 18% $ 305,309
APRIL 1, 1997 TO
MARCH 31, 1998......... 34.65% 137% $ 365,405
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 7.86% 40% $ 283,468
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... 12.45% 83% $ 254,498
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 28.90% 100% $ 178,488
</TABLE>
105
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 16.11 (0.14) 2.14 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 14.53 (0.09) 4.00 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 15.70 (0.02) (1.15) 0.00
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 13.64 (0.01) 4.38 0.00
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 12.74 0.00 0.94 0.00
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... $ 12.29 (0.01) 1.42 0.00
JANUARY 1, 1995(3) TO
DECEMBER 31, 1995...... $ 10.00 0.05 2.79 (0.05)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 26.80 (0.02) 3.59 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 24.01 0.03 6.64 (0.03)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 25.91 0.07 (1.90) (0.07)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 22.52 0.17 7.25 (0.17)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 21.01 0.09 1.57 (0.09)
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... $ 20.03 0.02 0.97 (0.01)
GROWTH EQUITY
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 36.83 (0.21) 8.90 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 36.17 (0.01) 0.67 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 35.73 (0.02) 2.56 (0.03)
JUNE 1, 1997 TO MAY 31,
1998................... $ 32.49 (0.06) 6.88 (0.04)
JUNE 1, 1996 TO MAY 31,
1997................... $ 29.08 (0.02) 4.06 (0.04)
MAY 2, 1996(3) TO
MAY 31, 1996........... $ 28.50 0.00 0.58 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 35.93 (0.35) 8.53 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 35.39 (0.10) 0.64 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 35.23 (0.25) 2.48 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 32.28 (0.23) 6.72 0.00
JUNE 1, 1996 TO MAY 31,
1997................... $ 29.07 (0.13) 3.93 0.00
MAY 6, 1996(3) TO
MAY 31, 1996........... $ 28.18 0.00 0.89 0.00
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 36.84 (0.15) 8.55 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 36.29 0.02 0.53 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 30.66 (0.13) 7.86 (0.03)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 36.82 (0.09) 8.88 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 36.17 0.01 0.64 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 35.72 (0.03) 2.58 (0.03)
JUNE 1, 1997 TO MAY 31,
1998................... $ 32.48 (0.04) 6.86 (0.04)
JUNE 1, 1996 TO MAY 31,
1997................... $ 29.08 (0.02) 4.05 (0.04)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 26.97 0.00 4.09 (0.12)
INDEX FUND
----------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 53.67 0.59 6.42 (0.26)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 54.83 0.24 (0.77) (0.36)
JUNE 1, 1998 TO MAY 31,
1999................... $ 46.36 0.57 8.87 (0.57)
JUNE 1, 1997 TO MAY 31,
1998................... $ 39.49 0.58 10.74 (0.65)
JUNE 1, 1996 TO MAY 31,
1997................... $ 31.49 0.49 8.50 (0.48)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 27.67 0.36 4.08 (0.43)
INTERNATIONAL
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 23.73 (0.06) 3.82 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 22.78 0.07 0.88 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.84 0.04 (0.43) (0.21)
JUNE 1, 1997 TO MAY 31,
1998................... $ 21.66 0.03 2.35 (0.20)
JUNE 1, 1996 TO MAY 31,
1997................... $ 19.82 0.10 1.94 (0.20)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 17.97 0.35 1.83 (0.33)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 23.54 (0.22) 3.74 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 22.66 0.02 0.86 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.70 (0.06) (0.49) (0.03)
JUNE 1, 1997 TO MAY 31,
1998................... $ 21.55 (0.09) 2.31 (0.07)
JUNE 1, 1996 TO MAY 31,
1997................... $ 19.71 (0.06) 1.93 (0.03)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 17.91 0.25 1.83 (0.28)
</TABLE>
106
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ----------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.15) $ 15.96 (0.96)% 1.87% 2.22%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (2.33) $ 16.11 (0.64)% 1.79% 1.86%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 14.53 (0.29)% 1.79% 1.79%
APRIL 1, 1997 TO
MARCH 31, 1998......... (2.31) $ 15.70 (0.15)% 1.79% 1.80%
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.04) $ 13.64 (0.06)% 1.86% 1.89%
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... (0.96) $ 12.74 (0.12)% 1.93% 2.03%
JANUARY 1, 1995(3) TO
DECEMBER 31, 1995...... (0.50) $ 12.29 0.43% 1.87% 2.21%
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (3.57) $ 26.80 (0.05)% 1.00% 1.02%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (3.85) $ 26.80 0.15% 1.00% 1.02%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 24.01 0.48% 1.02% 1.04%
APRIL 1, 1997 TO
MARCH 31, 1998......... (3.86) $ 25.91 0.65% 0.99% N/A
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (0.06) $ 22.52 0.78% 1.01% N/A
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... 0.00 $ 21.01 1.27% 0.96% N/A
GROWTH EQUITY
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (5.63) $ 39.89 (0.48)% 1.50%(4) 1.72%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 36.83 (0.01)% 1.25%(4) 1.45%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (2.07) $ 36.17 (0.08)% 1.25%(4) 1.44%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (3.54) $ 35.73 (0.11)% 1.25%(4) 1.42%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.59) $ 32.49 (0.12)% 1.30%(4) 1.95%(4)
MAY 2, 1996(3) TO
MAY 31, 1996........... 0.00 $ 29.08 0.34% 2.08%(4) 6.40%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (5.63) $ 38.48 (1.20)% 2.25%(4) 2.58%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 35.93 (0.76)% 2.00%(4) 2.45%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (2.07) $ 35.39 (0.83)% 2.00%(4) 2.45%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (3.54) $ 35.23 (0.85)% 2.00%(4) 2.45%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.59) $ 32.28 (0.82)% 2.04%(4) 3.02%(4)
MAY 6, 1996(3) TO
MAY 31, 1996........... 0.00 $ 29.07 (0.40)% 2.92%(4) 7.44%(4)
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (5.63) $ 39.61 (1.16)% 2.25%(4) 2.75%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 36.84 (0.87)% 2.00%(4) 6.22%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... (2.07) $ 36.29 (0.87)% 2.01%(4) 21.40%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (5.63) $ 39.98 (0.23)% 1.25%(4) 1.34%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 36.82 0.05% 1.25%(4) 1.40%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (2.07) $ 36.17 (0.08)% 1.25%(4) 1.38%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (3.54) $ 35.72 (0.11)% 1.25%(4) 1.35%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.59) $ 32.48 (0.09)% 1.30%(4) 1.84%(4)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (1.86) $ 29.08 0.01% 1.35%(4) 1.85%(4)
INDEX FUND
---------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (0.69) $ 59.73 1.02% 0.25%(4) 0.33%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.27) $ 53.67 1.17% 0.25%(4) 0.55%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.40) $ 54.83 1.28% 0.25%(4) 0.55%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (3.80) $ 46.36 1.53% 0.25%(4) 0.58%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.51) $ 39.49 2.10% 0.25% 0.56%
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (0.19) $ 31.49 2.25% 0.31% 0.57%
INTERNATIONAL
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.39) $ 25.10 (0.26)% 1.75%(4) 2.13%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 23.73 0.92% 1.50%(4) 1.81%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.46) $ 22.78 0.37% 1.50%(4) 1.80%(4)
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 $ 23.84 0.44% 1.47%(4) 1.72%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 21.66 0.42% 1.43%(4) 1.72%(4)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 0.00 $ 19.82 0.92% 1.50%(4) 2.51%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.39) $ 24.67 (0.96)% 2.50%(4) 2.88%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 23.54 0.18% 2.25%(4) 2.92%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.46) $ 22.66 (0.30)% 2.25%(4) 2.89%(4)
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 $ 23.70 (0.29)% 2.22%(4) 2.81%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 21.55 (0.34)% 2.18%(4) 2.76%(4)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 0.00 $ 19.71 (0.02)% 2.25%(4) 3.11%(4)
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
-------------------------
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 13.48% 51% $ 69,433
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 28.68% 38% $ 60,909
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (7.45)% 18% $ 48,772
APRIL 1, 1997 TO
MARCH 31, 1998......... 33.83% 137% $ 52,901
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 7.36% 40% $ 23,010
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... 11.89% 83% $ 12,832
JANUARY 1, 1995(3) TO
DECEMBER 31, 1995...... 28.47% 100% $ 4,682
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 14.55% 51% $ 52,561
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 29.69% 38% $ 17,588
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (7.10)% 18% $ 14,355
APRIL 1, 1997 TO
MARCH 31, 1998......... 34.86% 137% $ 18,180
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 7.92% 40% $ 19,719
SEPTEMBER 6, 1996(3) TO
SEPTEMBER 30, 1996..... 3.41% 83% $ 18,508
GROWTH EQUITY
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 25.01% 78%(7) $ 17,726
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 1.82% 22%(7) $ 23,750
JUNE 1, 1998 TO MAY 31,
1999................... 7.57% 73%(7) $ 17,335
JUNE 1, 1997 TO MAY 31,
1998................... 22.55% 47%(7) $ 21,567
JUNE 1, 1996 TO MAY 31,
1997................... 14.11% 9% $ 14,146
MAY 2, 1996(3) TO
MAY 31, 1996........... 2.04% 7% $ 3,338
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 24.11% 78%(7) $ 25,124
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 1.53% 22%(7) $ 19,211
JUNE 1, 1998 TO MAY 31,
1999................... 6.78% 73%(7) $ 18,976
JUNE 1, 1997 TO MAY 31,
1998................... 21.63% 47%(7) $ 16,615
JUNE 1, 1996 TO MAY 31,
1997................... 13.28% 9% $ 8,713
MAY 6, 1996(3) TO
MAY 31, 1996........... 3.16% 7% $ 703
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 24.11% 78%(7) $ 2,240
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 1.52% 22%(7) $ 320
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 25.73% 73%(7) $ 60
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 25.32% 78%(7) $ 751,174
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 1.80% 22%(7) $ 644,215
JUNE 1, 1998 TO MAY 31,
1999................... 7.60% 73%(7) $ 920,586
JUNE 1, 1997 TO MAY 31,
1998................... 22.52% 47%(7) $ 1,033,251
JUNE 1, 1996 TO MAY 31,
1997................... 14.11% 9% $ 895,420
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 15.83% 7% $ 735,728
INDEX FUND
-------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 13.06% 8%(5) $ 982,975
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (1.00)% 11%(5) $ 813,861
JUNE 1, 1998 TO MAY 31,
1999................... 20.57% 4%(5) $ 1,154,289
JUNE 1, 1997 TO MAY 31,
1998................... 30.32% 7%(5) $ 784,205
JUNE 1, 1996 TO MAY 31,
1997................... 29.02% 24% $ 513,134
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 16.27% 9% $ 249,644
INTERNATIONAL
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.81% 127%(5) $ 4,991
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 4.17% 23%(5) $ 2,726
JUNE 1, 1998 TO MAY 31,
1999................... (1.36)% 95%(7) $ 2,866
JUNE 1, 1997 TO MAY 31,
1998................... 11.20% 37%(7) $ 3,342
JUNE 1, 1996 TO MAY 31,
1997................... 10.33% 48%(5) $ 2,240
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 12.31% 14%(5) $ 1,080
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 14.85% 127%(5) $ 3,233
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 3.88% 23%(5) $ 1,960
JUNE 1, 1998 TO MAY 31,
1999................... (2.08)% 95%(7) $ 1,973
JUNE 1, 1997 TO MAY 31,
1998................... 10.39% 37%(7) $ 2,245
JUNE 1, 1996 TO MAY 31,
1997................... 9.44% 48%(5) $ 1,667
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 11.79% 14%(5) $ 995
</TABLE>
107
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 23.74 (0.02) 3.82 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 22.80 0.07 0.87 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.85 0.10 (0.48) (0.21)
JUNE 1, 1997 TO MAY 31,
1998................... $ 21.67 0.09 2.29 (0.20)
JUNE 1, 1996 TO MAY 31,
1997................... $ 19.84 0.09 1.94 (0.20)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 17.99 0.14 2.04 (0.33)
INTERNATIONAL EQUITY
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 12.70 0.11 2.64 (0.13)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 9.36 (0.02) 3.36 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 11.05 0.00 (1.69) 0.00
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... $ 10.00 0.02 1.03 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 12.54 0.06 2.54 (0.07)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 9.30 (0.10) 3.34 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 11.01 (0.03) (1.68) 0.00
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... $ 10.00 (0.01) 1.02 0.00
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 12.54 0.07 2.54 (0.09)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 9.30 (0.04) 3.28 0.00
APRIL 1 ,1998(3) TO
SEPTEMBER 30, 1998..... $ 11.01 (0.03) (1.68) 0.00
INSTITUTIONAL CLASS
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... $ 10.00 0.12 5.27 (0.14)
LARGE COMPANY GROWTH
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 57.96 (0.49) 19.16 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 58.09 (0.12) (0.01) 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 38.48 (0.16) 20.82 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 54.29 (0.72) 17.80 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 54.50 (0.19) (0.02) 0.00
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... $ 39.80 (0.17) 15.92 0.00
CLASS C
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... $ 59.32 (0.40) 12.53 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 54.60 (0.30) 18.01 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 54.67 (0.07) 0.00 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 39.94 (0.17) 15.95 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 32.63 (0.11) 10.20 0.00
JUNE 1, 1996 TO MAY 31,
1997................... $ 26.97 (0.03) 5.91 0.00
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 23.59 (0.04) 3.64 0.00
SMALL CAP GROWTH
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 26.23 (0.08) 19.88 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 17.86 (0.18) 9.99 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 25.62 (0.09) (7.67) 0.00
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 18.98 (0.06) 8.76 0.00
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 22.45 (0.01) (3.46) 0.00
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... $ 22.01 0.00 0.44 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 25.72 (0.14) 19.25 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 17.64 (0.36) 9.86 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 25.38 (0.18) (7.56) 0.00
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 18.93 (0.11) 8.61 0.00
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 22.46 (0.04) (3.49) 0.00
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... $ 22.02 0.00 0.44 0.00
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 25.71 (0.08) 19.18 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 17.63 (0.39) 9.89 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 25.38 (0.18) (7.57) 0.00
DECEMBER 15, 1997(3) TO
MARCH 31, 1998......... $ 21.77 (0.08) 3.69 0.00
</TABLE>
108
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ----------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.39) $ 25.15 (0.06)% 1.50%(4) 1.53%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 23.74 0.90% 1.50%(4) 1.58%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.46) $ 22.80 0.44% 1.50%(4) 1.61%(4)
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 $ 23.85 0.45% 1.47%(4) 1.50%(4)
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 21.67 0.40% 1.43%(4) 1.44%(4)
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 0.00 $ 19.84 0.60% 1.50%(4) 1.52%(4)
INTERNATIONAL EQUITY
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (0.08) $ 15.24 (0.31)% 1.75% 2.00%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 0.00 $ 12.70 (0.17)% 1.75% 2.10%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 9.36 0.10% 1.75% 2.06%
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... 0.00 $ 11.05 0.35% 1.75% 2.20%
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (0.08) $ 14.99 (1.01)% 2.50% 2.95%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 0.00 $ 12.54 (0.81)% 2.40% 2.79%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 9.30 (0.56)% 2.40% 2.70%
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... 0.00 $ 11.01 (0.31)% 2.40% 2.84%
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (0.08) $ 14.98 (0.86)% 2.50% 3.02%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 0.00 $ 12.54 (0.78)% 2.37% 2.72%
APRIL 1 ,1998(3) TO
SEPTEMBER 30, 1998..... 0.00 $ 9.30 (1.15)% 2.40% 2.66%
INSTITUTIONAL CLASS
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... (0.08) $ 15.17 0.32% 1.50% 1.92%
LARGE COMPANY GROWTH
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (1.60) $ 75.03 (0.73)% 1.20%(4) 1.31%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 57.96 (0.58)% 1.20%(4) 1.40%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... (1.05) $ 58.09 (0.68)% 1.20%(4) 1.35%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (1.60) $ 69.77 (1.28)% 1.75%(4) 2.15%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 54.29 (1.13)% 1.75%(4) 2.05%(4)
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... (1.05) $ 54.50 (1.22)% 1.76%(4) 2.15%(4)
CLASS C
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... (1.60) $ 69.85 (1.29)% 1.75%(4) 2.16%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (1.60) $ 70.71 (0.53)% 1.00%(4) 1.02%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 54.60 (0.38)% 1.00%(4) 1.04%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (1.05) $ 54.67 (0.49)% 1.00%(4) 1.09%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (2.78) $ 39.94 (0.36)% 1.00%(4) 1.03%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (0.22) $ 32.63 (0.18)% 0.99% 1.09%
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (0.22) $ 26.97 (0.30)% 1.00% 1.13%
SMALL CAP GROWTH
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.55) $ 43.48 (0.78)% 1.29% 1.86%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.44) $ 26.23 (0.92)% 1.35% 1.53%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 17.86 (0.82)% 1.36% 1.49%
APRIL 1, 1997 TO
MARCH 31, 1998......... (2.06) $ 25.62 (0.43)%(9) 1.22%(9) 1.57%(9)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 0.00 $ 18.98 (0.23)%(9) 1.10%(9) 2.80%(9)
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 0.00 $ 22.45 (0.59)%(9) 1.03%(9) 38.54%(9)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.50) $ 42.33 (1.53)% 2.04% 2.72%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.42) $ 25.72 (1.67)% 2.09% 2.29%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 17.64 (1.56)% 2.11% 2.13%
APRIL 1, 1997 TO
MARCH 31, 1998......... (2.05) $ 25.38 (1.13)%(9) 1.92%(9) 2.21%(9)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 0.00 $ 18.93 (0.85)%(9) 1.75%(9) 3.55%(9)
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 0.00 $ 22.46 0.00% 0.00% 0.00%
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.50) $ 42.31 (1.53)% 2.04% 2.44%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.42) $ 25.71 (1.68)% 2.10% 2.68%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 17.63 (1.56)% 2.11% 2.71%
DECEMBER 15, 1997(3) TO
MARCH 31, 1998......... 0.00 $ 25.38 (1.17)% 2.10% 2.66%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
-------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 15.98% 127%(5) $ 285,713
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 4.12% 23%(5) $ 274,448
JUNE 1, 1998 TO MAY 31,
1999................... (1.32)% 95%(7) $ 271,240
JUNE 1, 1997 TO MAY 31,
1998................... 11.19% 37%(7) $ 279,667
JUNE 1, 1996 TO MAY 31,
1997................... 10.27% 48%(5) $ 228,552
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 12.31% 14%(5) $ 143,643
INTERNATIONAL EQUITY
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 21.65% 26% $ 43,659
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 35.68% 41% $ 35,779
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (15.29)% 21% $ 23,857
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... 10.52% 12% $ 26,770
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 20.65% 26% $ 63,019
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 34.84% 41% $ 37,911
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (15.53)% 21% $ 30,070
SEPTEMBER 24, 1997(3) TO
MARCH 31, 1998......... 10.10% 12% $ 33,003
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 20.72% 26% $ 2,857
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 34.84% 41% $ 673
APRIL 1 ,1998(3) TO
SEPTEMBER 30, 1998..... (15.53)% 21% $ 297
INSTITUTIONAL CLASS
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... 13.01% 26% $ 122,397
LARGE COMPANY GROWTH
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 32.50% 9%(5) $ 303,948
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.22)% 5%(5) $ 188,890
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 54.16% 28%(5) $ 191,233
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 31.75% 9%(5) $ 461,918
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.39)% 5%(5) $ 201,351
OCTOBER 1, 1998(3) TO
MAY 31, 1999........... 40.01% 28%(5) $ 156,870
CLASS C
NOVEMBER 8, 1999(3) TO
SEPTEMBER 30, 2000..... 20.72% 9%(5) $ 25,463
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 32.74% 9%(5) $ 1,532,428
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.13)% 5%(5) $ 801,943
JUNE 1, 1998 TO MAY 31,
1999................... 39.96% 28%(5) $ 645,385
JUNE 1, 1997 TO MAY 31,
1998................... 32.29% 13%(5) $ 232,499
JUNE 1, 1996 TO MAY 31,
1997................... 21.93% 24% $ 131,768
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 15.40% 17% $ 82,114
SMALL CAP GROWTH
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 81.03% 263% $ 203,164
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 58.81% 249% $ 16,662
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (30.29)% 110% $ 10,899
APRIL 1, 1997 TO
MARCH 31, 1998......... 47.03% 291% $ 15,611
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (15.46)% 69% $ 3,107
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 2.00% 10% $ 96
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 79.74% 263% $ 116,520
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 57.66% 249% $ 18,718
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (30.50)% 110% $ 13,071
APRIL 1, 1997 TO
MARCH 31, 1998......... 46.02% 291% $ 15,320
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (15.72)% 69% $ 1,905
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 2.00% 10% $ 0
CLASS C
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 79.72% 263% $ 28,018
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 57.69% 249% $ 1,711
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (30.54)% 110% $ 1,426
DECEMBER 15, 1997(3) TO
MARCH 31, 1998......... 16.58% 291% $ 2,495
</TABLE>
109
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 26.66 (0.13) 20.34 0.00
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 18.02 (0.28) 10.38 0.00
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 25.77 (0.02) (7.73) 0.00
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 19.01 0.00 8.84 (0.01)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 22.45 0.02 (3.46) 0.00
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... $ 22.01 0.00 0.44 0.00
SMALL CAP OPPORTUNITIES
----------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 20.50 (0.23) 9.65 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 20.50 (0.04) 0.04 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.60 (0.11) (2.97) 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 19.83 (0.07) 4.37 0.00
OCTOBER 9, 1996(3) TO
MAY 31, 1997........... $ 17.39 (0.01) 2.46 0.00
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 20.03 (0.31) 9.31 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 20.09 (0.09) 0.03 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.32 (0.31) (2.90) 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 19.75 (0.05) 4.15 0.00
NOVEMBER 8, 1996(3) TO
MAY 31, 1997........... $ 17.41 (0.05) 2.40 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 20.50 (0.11) 9.58 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 20.51 (0.03) 0.02 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 23.61 (0.11) (2.97) 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 19.84 (0.06) 4.36 0.00
AUGUST 15, 1996(3) TO
MAY 31, 1997........... $ 16.26 (0.01) 3.60 0.00
SMALL CAP VALUE
----------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 8.51 (0.02) 2.13 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 8.04 (0.02) 0.49 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 10.16 (0.03) (2.08) 0.00
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... $ 10.00 (0.01) 0.17 0.00
SMALL COMPANY GROWTH
----------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 27.03 (0.22) 9.41 0.00
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... $ 27.44 (0.05) (0.36) 0.00
JUNE 1, 1998 TO MAY 31,
1999................... $ 33.69 (0.15) (3.67) 0.00
JUNE 1, 1997 TO MAY 31,
1998................... $ 31.08 (0.23) 6.88 0.00
JUNE 1, 1996 TO MAY 31,
1997................... $ 33.00 (0.18) 1.83 0.00
NOVEMBER 1, 1995 TO
MAY 31, 1996........... $ 29.99 (0.07) 5.94 0.00
SPECIALIZED TECHNOLOGY
----------------------------------------------------------------------------
CLASS A
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... $ 10.00 0.00 0.11 0.00
CLASS B
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... $ 10.00 0.00 0.11 0.00
CLASS C
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... $ 10.00 0.00 0.11 0.00
</TABLE>
110
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ----------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... (2.60) $ 44.27 (0.68)% 1.20% 1.43%
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... (1.46) $ 26.66 (0.38)% 0.76% 1.29%
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... 0.00 $ 18.02 (0.21)% 0.76% 1.21%
APRIL 1, 1997 TO
MARCH 31, 1998......... (2.07) $ 25.77 0.01%(9) 0.75%(9) 1.26%(9)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... 0.00 $ 19.01 0.16%(9) 0.75%(9) 1.65%(9)
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 0.00 $ 22.45 (1.15)%(9) 1.60%(9) 1.63%(9)
SMALL CAP OPPORTUNITIES
---------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 29.92 (0.60)% 1.40% 1.64%
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 20.50 (0.44)% 1.25% 1.41%
JUNE 1, 1998 TO MAY 31,
1999................... (0.02) $ 20.50 (0.47)% 1.25%(4) 1.49%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.53) $ 23.60 (0.43)% 1.27%(4) 1.86%(4)
OCTOBER 9, 1996(3) TO
MAY 31, 1997........... (0.01) $ 19.83 (0.18)% 1.25%(4) 10.51%(4)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 29.03 (1.33)% 2.15% 2.26%
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 20.03 (1.19)% 2.00% 2.48%
JUNE 1, 1998 TO MAY 31,
1999................... (0.02) $ 20.09 (1.28)% 2.06%(4) 2.51%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.53) $ 23.32 (1.21)% 2.02%(4) 3.05%(4)
NOVEMBER 8, 1996(3) TO
MAY 31, 1997........... (0.01) $ 19.75 (0.99)% 2.06%(4) 27.27%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 29.97 (0.45)% 1.25% 1.28%
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 20.50 (0.44)% 1.25% 1.29%
JUNE 1, 1998 TO MAY 31,
1999................... (0.02) $ 20.51 (0.47)% 1.25%(4) 1.35%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (0.53) $ 23.61 (0.40)% 1.25%(4) 1.38%(4)
AUGUST 15, 1996(3) TO
MAY 31, 1997........... (0.01) $ 19.84 (0.16)% 1.25%(4) 1.89%(4)
SMALL CAP VALUE
---------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 10.62 (0.48)% 1.25%(4) 1.37%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 8.51 (0.60)% 1.29%(4) 1.71%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (0.01) $ 8.04 (0.46)% 1.30%(4) 1.72%(4)
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... 0.00 $ 10.16 (0.56)% 1.30%(4) 3.54%(4)
SMALL COMPANY GROWTH
---------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 0.00 $ 36.22 (0.59)% 1.25%(4) 1.27%(4)
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00 $ 27.03 (0.52)% 1.25%(4) 1.30%(4)
JUNE 1, 1998 TO MAY 31,
1999................... (2.43) $ 27.44 (0.52)% 1.25%(4) 1.30%(4)
JUNE 1, 1997 TO MAY 31,
1998................... (4.04) $ 33.69 (0.73)% 1.25%(4) 1.26%(4)
JUNE 1, 1996 TO MAY 31,
1997................... (3.57) $ 31.08 (0.71)% 1.24% 1.29%
NOVEMBER 1, 1995 TO
MAY 31, 1996........... (2.86) $ 33.00 (0.41)% 1.25% 1.29%
SPECIALIZED TECHNOLOGY
---------------------------------------------------------------------------------------------
CLASS A
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 0.00 $ 10.11 (0.13)% 1.75% 2.02%
CLASS B
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 0.00 $ 10.11 (0.88)% 2.50% 2.77%
CLASS C
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 0.00 $ 10.11 (0.90)% 2.50% 2.77%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
-------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 81.35% 263% $ 186,315
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... 59.98% 249% $ 22,023
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... (30.07)% 110% $ 56,438
APRIL 1, 1997 TO
MARCH 31, 1998......... 47.70% 291% $ 78,856
OCTOBER 1, 1996 TO
MARCH 31, 1997......... (15.32)% 69% $ 29,200
SEPTEMBER 16, 1996(3) TO
SEPTEMBER 30, 1996..... 2.00% 10% $ 24,553
SMALL CAP OPPORTUNITIES
-------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 45.95% 165% $ 4,840
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 0.00% 40% $ 7,633
JUNE 1, 1998 TO MAY 31,
1999................... (13.03)% 119%(5) $ 4,698
JUNE 1, 1997 TO MAY 31,
1998................... 21.97% 55%(5) $ 6,870
OCTOBER 9, 1996(3) TO
MAY 31, 1997........... 11.37% 34%(5) $ 522
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 44.93% 165% $ 5,438
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.30)% 40% $ 4,089
JUNE 1, 1998 TO MAY 31,
1999................... (13.74)% 119%(5) $ 4,187
JUNE 1, 1997 TO MAY 31,
1998................... 21.03% 55%(5) $ 6,140
NOVEMBER 8, 1996(3) TO
MAY 31, 1997........... 13.53% 34%(5) $ 158
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 46.20% 165% $ 271,936
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (0.05)% 40% $ 195,283
JUNE 1, 1998 TO MAY 31,
1999................... (13.02)% 119%(5) $ 201,816
JUNE 1, 1997 TO MAY 31,
1998................... 21.95% 55%(5) $ 284,828
AUGUST 15, 1996(3) TO
MAY 31, 1997........... 11.42% 34%(5) $ 77,174
SMALL CAP VALUE
-------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 24.79% 124%(5) $ 42,605
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... 5.85% 49%(5) $ 17,404
JUNE 1, 1998 TO MAY 31,
1999................... (20.77)% 108%(5) $ 16,791
OCTOBER 15, 1997(3) TO
MAY 31, 1998........... 1.60% 79%(5)(6) $ 6,422
SMALL COMPANY GROWTH
-------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... 34.00% 203%(5) $ 603,584
JUNE 1, 1999 TO
SEPTEMBER 30, 1999..... (1.49)% 55%(5) $ 515,292
JUNE 1, 1998 TO MAY 31,
1999................... (10.72)% 154%(5) $ 557,516
JUNE 1, 1997 TO MAY 31,
1998................... 22.38% 123%(5) $ 748,269
JUNE 1, 1996 TO MAY 31,
1997................... 5.65% 124% $ 447,580
NOVEMBER 1, 1995 TO
MAY 31, 1996........... 21.43% 62% $ 378,546
SPECIALIZED TECHNOLOGY
-------------------------
CLASS A
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 1.10% 7% $ 42,626
CLASS B
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 1.10% 7% $ 52,958
CLASS C
SEPTEMBER 18, 2000(3) TO
SEPTEMBER 30, 2000..... 1.10% 7% $ 14,176
</TABLE>
111
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 9).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
period shown.
(3) Commencement of operations.
(4) Includes expenses allocated from the Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(6) The Portfolio in which the Fund invests had a different period of
operations than the Fund.
(7) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(8) Actual dividends per share were less than $0.01.
(9) This ratio includes activity of the Master Portfolio prior to December 15,
1997.
(10) The portfolio turnover for the Corporate Stock Master Portfolio from its
inception on April 26, 1999 to September 30, 1999 was 3%. The information
shown reflects the stand-alone period only.
(11) The Fund operated as a series of Pacifica Funds Trust from its
commencement of operations until it was reorganized as a series of
Stagecoach Funds, Inc. on September 6, 1996. In conjunction with the
reorganization, existing Investor Shares were converted into Class A
shares of the Fund and WFB assumed investment advisory responsibilities.
Prior to April 1, 1996, the Fund was advised by First Interstate Capital
Management, Inc. ("FICM"). In connection with the merger of First
Interstate Bancorp into Wells Fargo & Co. on April 1, 1996, FICM was
renamed Wells Fargo Investment Management, Inc., subsequently renamed
Wells Capital Management, Inc.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
112
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 65 separate series. These financial
statements present the Disciplined Growth, Diversified Equity, Diversified
Small Cap, Equity Income, Equity Index, Equity Value, Growth, Growth Equity,
Index, International, International Equity, Large Company Growth, Small Cap
Growth, Small Cap Opportunities, Small Cap Value, Small Company Growth, and
Specialized Technology Funds (each, a "Fund", collectively, the "Funds"), each
a series of the Trust.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust (the "Consolidation").
Effective at the close of business November 5, 1999, the Stagecoach and/or
Norwest Advantage Funds were consolidated into the Wells Fargo Funds Trust
through a tax-free exchange of shares as follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
PERFORMA DISCIPLINED GROWTH FUND* DISCIPLINED GROWTH FUND
DIVERSIFIED EQUITY FUND* DIVERSIFIED EQUITY FUND
DIVERSIFIED SMALL CAP FUND* DIVERSIFIED SMALL CAP FUND
DIVERSIFIED EQUITY INCOME FUND INCOME EQUITY FUND* EQUITY INCOME FUND
EQUITY INDEX FUND* EQUITY INDEX FUND
EQUITY VALUE FUND* EQUITY VALUE FUND
GROWTH EQUITY FUND* GROWTH EQUITY FUND
GROWTH FUND* VALUGROWTH-SM- STOCK FUND GROWTH FUND
INDEX FUND* INDEX FUND
INTERNATIONAL FUND* INTERNATIONAL FUND
INTERNATIONAL EQUITY FUND* INTERNATIONAL EQUITY FUND
LARGE COMPANY GROWTH FUND* LARGE COMPANY GROWTH FUND
SMALL CAP FUND*/STRATEGIC SMALL COMPANY STOCK FUND SMALL CAP GROWTH FUND
GROWTH FUND
SMALL CAP OPPORTUNITIES FUND* SMALL CAP OPPORTUNITIES FUND
PERFORMA SMALL CAP VALUE FUND* SMALL CAP VALUE FUND
SMALL COMPANY GROWTH FUND* SMALL COMPANY GROWTH FUND
</TABLE>
* ACCOUNTING SURVIVOR
In the Consolidation, the Wells Fargo Equity Income Fund acquired all of the
net assets of the Stagecoach Diversified Equity Income Fund and Norwest
Advantage Income Equity Fund. The Stagecoach Diversified Equity Income Fund
exchanged its 11,832,453 shares (valued at $174,302,021) for 3,962,913 shares
of the Wells Fargo Equity Income Fund. The net assets of the Stagecoach
Diversified Equity Income Fund included unrealized appreciation of
$32,352,092. As a result of this exchange, securities with a market value of
$174,569,600 (including unrealized appreciation of $32,352,092) were
contributed by the Wells Fargo Equity Income Fund to the Wells Fargo Income
Equity Portfolio in exchange for an ownership interest in this Core Portfolio.
In the Consolidation, the Wells Fargo Growth Fund acquired all of the net
assets of the Stagecoach Growth Fund and Norwest Advantage ValuGrowth Stock
Fund. The Norwest Advantage ValuGrowth Stock Fund exchanged its 11,218,810
shares (valued at $138,863,010) for 5,907,341 shares of the Wells Fargo Growth
Fund. The net assets of the Norwest Advantage ValuGrowth Stock Fund included
unrealized appreciation of $53,118,113.
113
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
In the Consolidation, the Wells Fargo Small Cap Growth Fund acquired all of
the net assets of the Stagecoach Small Cap, Stagecoach Strategic Growth, and
Norwest Advantage Small Company Stock Funds. The Stagecoach Strategic Growth
Fund exchanged its 5,537,435 shares (valued at $144,073,891) for 4,907,364
shares of the Wells Fargo Small Cap Growth Fund. The net assets of the
Stagecoach Strategic Growth Fund included unrealized appreciation of
$26,936,348. The Norwest Advantage Small Company Stock Fund exchanged its
2,745,369 shares (valued at $27,416,341) for 919,461 shares of the Wells Fargo
Small Cap Growth Fund. The net assets of the Norwest Advantage Small Company
Stock Fund included unrealized appreciation of $1,817,314.
On September 8, 2000, the Wells Fargo Equity Income Fund acquired all of the
net assets of the Great Plains Equity Fund. The Great Plains Equity Fund
exchanged its 15,123,216 shares (valued at $144,393,246) for 3,436,758
Institutional Class shares of the Wells Fargo Equity Income Fund. The net
assets of the Great Plains Equity Fund included unrealized appreciation of
$43,558,599. As a result of this exchange, securities with a market value of
$144,078,202 (including unrealized appreciation of $43,558,599) were
contributed by the Wells Fargo Equity Income Fund to the Wells Fargo Income
Equity Portfolio in exchange for an ownership interest in this Core Portfolio.
On September 8, 2000, the Wells Fargo Small Cap Value Fund acquired all of
the net assets of the Great Plains Premier Fund. The Great Plains Premier Fund
exchanged its 2,306,313 shares (valued at $23,135,585) for 2,117,988
Institutional Class shares of the Wells Fargo Small Cap Value Fund. The net
assets of the Great Plains Premier Fund included unrealized appreciation of
$3,402,031. As a result of this exchange, securities with a market value of
$23,129,461 (including unrealized appreciation of $3,402,031) were contributed
by the Wells Fargo Small Cap Value Fund to the Wells Fargo Small Cap Value
Portfolio in exchange for an ownership interest in this Core Portfolio.
The Diversified Equity, Diversified Small Cap, Equity Income, Equity Value,
Growth, Growth Equity, International, International Equity, Large Company
Growth, Small Cap Growth, and Small Cap Opportunities Funds offer Class A,
Class B, and Institutional Class shares. In addition, the Diversified Equity,
Equity Income, Equity Value, Growth Equity, International Equity, Large
Company Growth, and Small Cap Growth Funds also offer Class C shares. The
Equity Index Fund offers Class A, Class B, and Class O shares. The Specialized
Technology Fund offers Class A, Class B, and Class C shares. The Disciplined
Growth, Index, Small Cap Value, and Small Company Growth Funds only offer
Institutional Class shares. Shareholders of each class may bear certain
expenses that pertain to that particular class. All shareholders bear the
common expenses of the Fund and earn income from the portfolio pro rata based
on the average daily net assets of each class, without distinction between
share classes. Dividends are determined separately for each class based on
income and expenses allocable to each class. Realized gains are allocated to
each class pro rata based on the net assets of each class on the date
realized. No class has preferential dividend rights. Differences in per share
dividend rates generally result from the relative weightings of pro rata
income and realized gain allocations and from differences in separate class
expenses, including distribution, shareholder servicing, and transfer agency
fees.
The Disciplined Growth, Diversified Equity, Diversified Small Cap, Equity
Income, Growth Equity, Index, International, Large Company Growth, Small Cap
Value, and Small Company Growth Funds each seek to achieve its investment
objective by investing all investable assets in one or more separate
diversified portfolios (each, a "Core Portfolio", collectively, the "Core
Portfolios") of Wells Fargo Core Trust, a registered open-end management
investment company. Each Core Portfolio directly acquires portfolio
securities, and a Fund investing in a Core Portfolio acquires an indirect
interest in those securities. The Funds account for their investment in the
Core Portfolios as partnership investments and record daily their share of the
Core Portfolio's income, expenses, and realized and unrealized gain and loss.
The financial statements of the Core Portfolios are in this report and should
be read in conjunction with the Funds' financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
114
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange which is usually 1:00 p.m.
(Pacific Time), and 3:00 p.m. (Central Time). Securities which are traded on a
national or foreign securities exchange or the National Association of
Securities Dealers Automated Quotation ("NASDAQ") National Market are valued
at the last reported sales price. In the absence of any sale of such
securities, and in the case of other securities, including U.S. Government
obligations, but excluding debt securities maturing in 60 days or less, the
valuations are based on the latest quoted bid prices. Securities denominated
in foreign currencies are translated into U.S. dollars using the closing rates
of exchange in effect on the day of valuation. Securities for which quotations
are not readily available are valued at fair value as determined by policies
set by the Trust's Board of Trustees.
Debt securities maturing in 60 days or less are valued at amortized cost. The
amortized cost method involves valuing a security at its cost, plus accretion
of discount or minus amortization of premium over the period until maturity,
which approximates market value.
Securities held in the Portfolios are valued at their net asset value at the
close of business each day as discussed in the Notes to Financial Statements
of the Portfolios, which are included elsewhere in this report.
FOREIGN CURRENCY TRANSLATION
The accounting records of the International and International Equity Funds
are maintained in U.S. dollars. Assets, including investment securities, and
liabilities denominated in foreign currency are translated into U.S. dollars
at the prevailing rates of exchange at the date of valuation. Purchases and
sales of securities, and income and expenses are translated at the prevailing
rate of exchange on the respective dates of such transactions. Reported net
realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions, and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Funds' books
and the U.S. dollar equivalent of the amounts actually paid or received. Net
unrealized foreign exchange gains and losses arise from changes in the fair
value of assets and liabilities other than investments in securities, at
fiscal period-end, resulting from changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from
certain foreign currency transactions are treated as ordinary income for U.S.
Federal income tax purposes.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
REPURCHASE AGREEMENTS
Each Fund may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo
Bank, N.A. ("WFB"). The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the Funds' custodian's
responsibility to value collateral daily and to take action to obtain
additional collateral as necessary to maintain market value equal to or
greater than the resale price. The repurchase agreements held by the Funds are
collateralized by instruments such as U.S. Treasury, federal agency, or
high-grade corporate obligations.
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market changes,
which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell
a security at a set price on a future date. Upon entering into such a
contract, a Fund is required to pledge to the broker an amount of cash, U.S.
Government obligations or other high-quality debt securities equal to the
minimum "initial margin" requirements of the exchange on which the futures
contract is traded. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount
115
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
of cash equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin" and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it was
closed. Pursuant to regulations and/or published positions of the Securities
and Exchange Commission (the "SEC") for long futures positions, the Fund is
required to segregate highly liquid securities as permitted by the SEC in
connection with futures transactions in an amount generally equal to the
entire value of the underlying contracts. Risks of entering into futures
contracts include the possibility that there may be an illiquid market and
that a change in the value of the contract may not correlate with changes in
the value of the underlying securities. On September 30, 2000, the Equity
Index Fund held the following long futures contracts:
<TABLE>
<CAPTION>
Notional Net Unrealized
Fund Contracts Type Expiration Date Contract Value Appreciation
<S> <C> <C> <C> <C> <C>
EQUITY INDEX 53 LONG S&P 500 INDEX DECEMBER 2000 $19,261,525 $(663,600)
</TABLE>
The Equity Index Fund has pledged to brokers cash for initial margin
requirements with a par value of $1,385,000.
SECURITY LOANS
The Funds may loan securities in return for securities and cash collateral,
which is invested in various short-term fixed income securities. The Funds may
receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received
as collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered in to. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the
loan are reflected in the value of the Fund. The risks to the Fund from
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due or when called for by the
Fund. The value of the securities on loan and the value of the related
collateral for the year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Securities Collateral
<S> <C> <C>
EQUITY INDEX FUND $ 71,618,971 $ 78,163,828
EQUITY VALUE FUND 14,314,821 15,925,171
GROWTH FUND 66,608,044 71,401,679
SMALL CAP GROWTH FUND 158,662,126 171,465,966
SMALL CAP OPPORTUNITIES FUND 24,940,691 26,453,066
</TABLE>
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax differences, reclassification adjustments were made as follows:
<TABLE>
<CAPTION>
Undistributed Undistributed
Net Investment Net Realized Paid-in
Income Gain/(Loss) Capital
<S> <C> <C> <C>
DISCIPLINED GROWTH FUND $ (34,716) $ (19,168) $ 53,884
DIVERSIFIED EQUITY FUND (89,939) (405,027) 494,966
DIVERSIFIED SMALL CAP FUND 23,556 (68,969) 45,413
EQUITY INCOME FUND 79 5,997 (6,076)
EQUITY INDEX FUND (6,882) 6,881 1
EQUITY VALUE FUND (2,923) 2,925 (2)
GROWTH EQUITY FUND 1,032,651 (1,466,145) 433,494
GROWTH FUND 1,723,465 (1,195,098) (528,367)
INDEX FUND (731,539) 731,539 0
INTERNATIONAL EQUITY FUND 546,683 856,321 (1,403,005)
INTERNATIONAL FUND (488,445) 469,164 19,281
LARGE COMPANY GROWTH FUND 7,333,453 (5) (7,333,448)
SMALL CAP GROWTH FUND 4,237,223 11,369,809 (15,607,032)
SMALL CAP OPPORTUNITIES FUND 1,095,849 1,699,796 (2,795,645)
SMALL CAP VALUE FUND 67,241 242 (67,483)
SMALL COMPANY GROWTH FUND 2,382,449 (3,083,760) 701,311
SPECIALIZED TECHNOLOGY FUND 22,029 0 (22,029)
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
and distributed annually, with the exception of the Equity Income and Equity
Value Funds. Dividends to shareholders from net investment income of the
Equity Income and Equity Value Funds, if any, are declared and distributed
quarterly. Distributions to shareholders from net realized capital gains, if
any, are declared and distributed at least annually. For federal income tax
purposes, the Funds may designate as capital gains dividends the earnings and
profits distributed to shareholders on the redemption of fund shares during
the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at
September 30, 2000.
117
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Date Fund Year Expires Carryforwards
<S> <C> <C> <C>
5/31/00 SMALL CAP VALUE FUND 2007 $1,680,398
2008 102,468
9/30/00 SMALL CAP GROWTH FUND 2006 9,080,292
2007 1,513,382
9/30/00 SPECIALIZED TECHNOLOGY FUND 2008 319,303
</TABLE>
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Funds with
WFB. Pursuant to the contract, WFB has agreed to provide the following Funds
with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
Fund % of Average Daily Net Assets
<S> <C>
EQUITY INDEX FUND 0.25
EQUITY VALUE FUND 0.75
GROWTH FUND 0.75
INTERNATIONAL EQUITY FUND 1.00
SMALL CAP GROWTH FUND 0.90
SMALL CAP OPPORTUNITIES FUND 0.90
SPECIALIZED TECHNOLOGY FUND 1.05
</TABLE>
The Diversified Equity, Diversified Small Cap, and Growth Equity Funds are
invested in various Core Portfolios. WFB is entitled to receive an investment
advisory fee of 0.25% of each Fund's average daily net assets for providing
advisory services including the determination of the asset allocations of each
Fund's investments in the various Core Portfolios. The Disciplined Growth,
Equity Income, Index, International, Large Company Growth, Small Cap Value,
and Small Company Growth Funds invest all of their assets in single Core
Portfolios and do not currently pay investment advisory fees. WFB acts as
advisor to the Core Portfolios, and is entitled to receive fees from the Core
Portfolios for those services.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Equity Index, Equity Value, Growth,
International Equity, and Small Cap Growth Funds. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Equity Index
Fund, a monthly fee at the annual rate of 0.02% of the Fund's average daily
net assets up to $200 million and 0.01% of the Fund's average daily net assets
in excess of $200 million. For the Equity Value, Growth, and Small Cap Growth
Funds, WCM is entitled to receive from WFB, as compensation for its
sub-advisory services, a monthly fee at the annual rate of 0.25% of each
Fund's average daily net assets up to $200 million, 0.20% for the next $200
million, and 0.15% of each Fund's average daily net assets in excess of $400
million. For the International Equity Fund, WCM is entitled to receive from
WFB, as compensation for its sub-advisory services, a monthly fee at the
annual rate of 0.35% of the Fund's average daily net assets up to $200
million, 0.25% for the next $200 million, and 0.15% of the Fund's average
daily net assets in excess of $400 million.
Schroder Capital Management Inc. ("Schroder"), a wholly-owned U.S. subsidiary
of Schroder Incorporated, which is a wholly-owned U.S. subsidiary of Schroder
PLC, acts as sub-advisor to the Small Cap Opportunities Fund. Schroder is
entitled to receive from WFB, as compensation for its sub-advisory services, a
monthly fee at the annual rate of 0.60% of the Fund's average daily net
assets.
Dresdner RCM Global Investors LLC ("Dresdner"), an indirect wholly-owned
subsidiary of Dresdner Bank AG, acts as sub-advisor to the Specialized
Technology Fund. Dresdner is entitled to receive from WFB, as compensation for
its sub-advisory services, a monthly fee at the annual rate of 1.00% of the
Fund's average daily net assets up to $100 million, 0.75% for the next $400
million, 0.60% for the next $500 million, and 0.50% of the Fund's average
daily net assets in excess of $1 billion.
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
Prior to November 8, 1999, Stagecoach Funds, Inc. had entered into an
advisory contract on behalf of the Equity Index, Equity Value, Growth,
International Equity, and Small Cap Growth Funds with WFB. Pursuant to the
contract, WFB had agreed to provide the Funds with daily portfolio management.
Under the prior contract with the Funds, WFB was entitled to be paid monthly
advisory fees at the annual rates of 0.25% of the Equity Index Fund's average
daily net assets, 0.50% of the Equity Value Fund's average daily net assets,
1.00% of the International Equity Fund's average daily net assets, and 0.60%
of the Small Cap Growth Fund's average daily net assets. For the Growth Fund,
WFB was entitled to be paid a monthly advisory fee at the annual rate of 0.50%
of the Fund's average daily net assets up to $250 million, 0.40% for the next
$250 million, and 0.30% of the Fund's average daily net assets in excess of
$500 million. Prior to November 8, 1999, the investment advisor to the Small
Cap Opportunities Fund was Norwest Investment Management, Inc. ("Advisor"), a
wholly-owned subsidiary of Norwest Bank Minnesota, N.A. ("Norwest"), which is
a subsidiary of Wells Fargo & Company. For the Small Cap Opportunities Fund,
the Advisor was entitled to be paid a monthly advisory fee at the annual rate
of 0.60% of the Fund's average daily net assets. The rates for the Disciplined
Growth, Diversified Equity, Diversified Small Cap, Equity Income, Growth
Equity, Index, Large Company Growth, Small Cap Value, and Small Company Growth
Funds remain unchanged from the predecessor funds.
Each Fund that invests its assets in one or more of the Portfolios may
withdraw its investments from its corresponding Portfolio(s) at any time if
the Board of Trustees determines that it is in the best interests of the Fund
to do so. Upon such redemption and subsequent investment in a portfolio of
securities, WFB (and the corresponding sub-advisor) may receive an investment
fee for the management of those assets. If the redeemed assets are invested in
one or more Core Portfolios, WFB (and the corresponding sub-advisor) does not
receive any compensation.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and C
shares of the Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution
fees are charged to the Class B and C shares and paid to Stephens, Inc.
("Stephens") at a rate of 0.75% of average daily net assets. There are no
distribution fees for the Funds' Class A and O shares. The distribution fees
paid on behalf of the Funds for the year ended September 30, 2000 are
disclosed in the Statement of Operations.
Prior to November 8, 1999, the Class A shares of the predecessor Equity
Value, International Equity, and Small Cap Growth Funds had a Rule 12b-1 Plan
that provided that the Funds may pay to Stephens, as compensation for
distribution-related services or as reimbursement for distribution-related
expenses, a monthly fee at an annual rate of up to 0.10% of the average daily
net assets attributable to their Class A shares.
Prior to November 8, 1999, the Class A shares of the predecessor Growth Fund
had a Rule 12b-1 Plan that provided that such Fund may defray all or part of
the cost of preparing, printing and distributing prospectuses and other
promotional materials by paying for costs incurred on an annual basis of up to
0.05% of the average daily net assets attributable to its Class A shares. The
Class B shares of the predecessor Growth Fund provided that the Fund may pay
to Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, a monthly fee at an annual
rate of 0.70% of the average daily net assets attributable to the Class B
shares.
Prior to November 8, 1999, the Class A shares of the predecessor Large
Company Growth and Diversified Small Cap Funds had a Rule 12b-1 Plan that
authorized payment of a distribution service fee at an annual rate of 0.10% of
each Fund's average daily net assets attributable to its Class A shares. The
Plan for the predecessor Diversified Equity, Diversified Small Cap, Equity
Income, Growth Equity, International, Large Company Growth, and Small Cap
Opportunities Funds also authorized payment of a maintenance fee at an annual
rate of 0.25% of each Fund's average daily net assets attributable to Class B
shares.
The Plan for Class B shares of the Equity Index, Equity Value, International
Equity, and Small Cap Growth Funds, and Class C shares of the Equity Value,
International Equity, and Small Cap Growth Funds remains unchanged from the
predecessor funds.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB is entitled to receive monthly fees at the annual rate of
0.15% of each Fund's average daily net assets. Prior to November 8, 1999, WFB
served as Administrator for the predecessor Equity Index, Equity Value,
119
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Growth, International Equity, and Small Cap Growth Funds at the rate, and
pursuant to the substantially same terms, as apply under the existing
agreement.
Prior to November 8, 1999, the Administrator for the predecessor Disciplined
Growth, Diversified Equity, Diversified Small Cap, Equity Income, Growth
Equity, Index, International, Large Company Growth, Small Cap Opportunities,
Small Cap Value, and Small Company Growth Funds was Forum Administrative
Services, LLC ("FAdS"). The Funds were charged monthly fees at the annual rate
of 0.025% of each Fund's average daily net assets, with exception to the
International and Small Cap Opportunities Funds which were charged 0.05% of
each Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds.
Prior to November 8, 1999, BFDS provided transfer agency services at the same
rates pursuant to a substantially similar agreement with both of the
Stagecoach and Norwest Advantage predecessor portfolios.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Funds are charged 0.25% of the
average daily net assets for Class A, Class B, and Class C shares and 0.10% of
the average daily net assets for Institutional Class shares of the Diversified
Small Cap, Small Cap Growth, Small Cap Opportunities, Small Cap Value, and
Small Company Growth Funds for these services. No fee is charged for
Institutional Class shares of the Disciplined Growth, Diversified Equity,
Equity Income, Equity Value, Growth, Growth Equity, Index, International,
International Equity, and Large Company Growth Funds. Prior to November 8,
1999, shareholder servicing fees were charged at an annual rate of 0.30% of
the average daily net assets of the Class A and Class B shares and 0.25% of
the average daily net assets of the Institutional Class shares of the
predecessor Equity Value and Growth Funds. Prior to November 8, 1999, all
other predecessor Funds and share classes were charged at the same 0.25%
annual rate listed above.
The shareholder servicing fees paid on behalf of the Funds for the year ended
September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Institutional
Fund Class A Class B Class C Class
<S> <C> <C> <C> <C>
DISCIPLINED GROWTH FUND N/A N/A N/A $ 0
DIVERSIFIED EQUITY FUND $ 203,162 $311,490 $12,696 0
DIVERSIFIED SMALL CAP FUND 2,196 1,665 N/A 82,136
EQUITY INCOME FUND 481,073 368,717 11,788 0
EQUITY INDEX FUND 1,597,485 222,306 N/A N/A
EQUITY VALUE FUND 68,184 128,536 1,877 32,080
GROWTH FUND 854,722 183,418 N/A 4,587
GROWTH EQUITY FUND 44,328 54,418 2,863 0
INDEX FUND N/A N/A N/A 0
INTERNATIONAL FUND 8,587 6,759 N/A 0
INTERNATIONAL EQUITY FUND 210,200 79,683 3,429 0
LARGE COMPANY GROWTH FUND 671,291 816,580 28,042 0
SMALL CAP GROWTH FUND 407,264 206,876 54,966 121,706
SMALL CAP OPPORTUNITIES FUND 14,889 10,914 N/A 203,134
SMALL CAP VALUE FUND N/A N/A N/A 18,262
SMALL COMPANY GROWTH FUND N/A N/A N/A 560,259
SPECIALIZED TECHNOLOGY FUND 3,685 4,433 1,267 N/A
</TABLE>
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. For these services, Forum is entitled to receive a
fixed monthly per fund fee, a basis point fee of 0.0025% of the average daily
net assets of each Fund, and will be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services. During the period, WFB
provided sub-portfolio accounting services to the Equity Index and Equity
Value Funds. For these services WFB was entitled to a fixed monthly fee from
each Fund plus an annual fee of 0.0025% of each Fund's average daily net
assets. Prior to April 3, 2000, WFB had engaged Investor's Bank and Trust
Company ("IBT") to perform certain sub-portfolio accounting services for the
International Equity Fund. Prior to November 8, 1999, Stagecoach Funds, Inc.
entered into contracts on behalf of the predecessor Equity Index, Equity
Value, Growth, and Small Cap Growth Funds with WFB, whereby WFB was
responsible for providing portfolio accounting services for the Funds.
Pursuant to the contract, WFB was entitled to a monthly base fee from each
predecessor Fund of $2,000 plus an annual fee of 0.07% of the first $50
million of each predecessor Fund's average daily net assets, 0.045% of the
next $50 million, and 0.02% of each Fund's average daily net assets in excess
of $100 million. For the predecessor Disciplined Growth, Diversified Equity,
Diversified Small Cap, Equity Income, Growth Equity, Index, International,
Large Company Growth, Small Cap Opportunities, Small Cap Value, and Small
Company Growth Funds, portfolio accounting services were provided by Forum.
The Trust has entered into a contract on behalf of the Equity Index, Equity
Value, Growth, Small Cap Growth, Small Cap Opportunities, and Specialized
Technology Funds with Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly
Norwest Bank Minnesota, N.A., whereby WFB MN is responsible for providing
custody services for the Funds. Pursuant to the contract, WFB MN is entitled
to certain transaction charges plus a monthly fee for custody services at the
annual rate of 0.02% of the average daily net assets of each Fund. Prior to
April 3, 2000, IBT had been retained to act as custodian for the International
Equity Fund. Prior to November 8, 1999, BGI, a wholly-owned subsidiary of
Barclays Global Investors Inc., acted as custodian to the predecessor Equity
Index Fund. Prior to November 8, 1999, the predecessor Disciplined Growth,
Diversified Equity, Diversified Small Cap, Equity Income, Growth Equity,
Index, International, Large Company Growth, Small Cap Opportunities, Small Cap
Value, and Small Company Growth Funds had WFB MN serve as the custodian. For
its custody services, WFB MN was entitled to receive a fee at an annual rate
of 0.02% for the first $100 million of average daily net assets of each Fund,
declining to 0.01% of the average daily net assets of each Fund in excess of
$200 million. The predecessor Disciplined Growth, Diversified Equity,
Diversified Small Cap, Equity Income, Growth Equity, Index, International,
Large Company Growth, Small Cap Value, and Small Company Growth Funds were not
charged a custody fee at the Gateway level provided that they invested in Core
Trust Portfolios. Prior to November 8, 1999, the predecessor Equity Value,
Growth, and Small Cap Growth Funds had the above service performed for a fee
at an annual rate of 0.0167% of the average daily net assets of each Fund.
Stephens has retained $8,086,241 as sales charges from the proceeds of
Class A shares sold, $0 from the proceeds of Class B shares redeemed and
$120,469 from the proceeds of Class C shares redeemed by the Trust for the
year ended September 30, 2000. A third party financing agent has retained
approximately $6,282,198 from the proceeds of deferred sales charges on
Class B shares redeemed by the Trust for the year ended September 30, 2000.
Wells Fargo Securities Inc., a subsidiary of WFB, received $3,196,955 as sales
charges from the proceeds of Class A shares sold and $481,937 from the
proceeds of Class B shares redeemed by the Trust for the year ended
September 30, 2000. Forum Financial Group, the former distributor, received
$18,560 as sales charges from the proceeds of Class A shares sold, $234,350
from the proceeds of Class B shares redeemed and $1,279 from the proceeds of
Class C shares redeemed by the Trust for the year ended September 30, 2000.
121
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the year ended September 30, 2000, were waived by WFB or FAdS.
<TABLE>
<CAPTION>
Fund Fees Waived by FAdS Fees Waived by WFB Total Fees Waived
<S> <C> <C> <C>
DISCIPLINED GROWTH FUND $ 18,209 $ 5,622 $ 23,831
DIVERSIFIED EQUITY FUND 360,860 2,785,852 3,146,712
DIVERSIFIED SMALL CAP FUND 31,574 143,843 175,417
EQUITY INCOME FUND 50,591 926,131 976,722
EQUITY INDEX FUND 0 1,130,732 1,130,732
EQUITY VALUE FUND 0 359,778 359,778
GROWTH FUND 0 1,255,710 1,255,710
GROWTH EQUITY FUND 93,055 746,723 839,778
INDEX FUND 233,562 542,906 776,468
INTERNATIONAL FUND 3,789 108,104 111,893
INTERNATIONAL EQUITY FUND 0 593,029 593,029
LARGE COMPANY GROWTH FUND 137,454 1,790,360 1,927,814
SMALL CAP GROWTH FUND 0 1,855,697 1,855,697
SMALL CAP OPPORTUNITIES FUND 17,968 68,995 86,963
SMALL CAP VALUE FUND 6,285 18,340 24,625
SMALL COMPANY GROWTH FUND 10,602 85,124 95,726
SPECIALIZED TECHNOLOGY FUND 0 9,761 9,761
</TABLE>
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
10. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) for each
Fund for the year ended September 30, 2000, were as follows:
<TABLE>
<CAPTION>
AGGREGATE PURCHASES AND SALES
Fund Purchases at Cost Sales Proceeds
<S> <C> <C>
DISCIPLINED GROWTH FUND* $ 34,290,574 $ 42,190,577
DIVERSIFIED EQUITY FUND* 895,738,635 896,673,993
DIVERSIFIED SMALL CAP FUND* 128,218,355 131,569,603
EQUITY INCOME FUND* 150,364,142 216,468,322
EQUITY INDEX FUND 55,295,098 112,753,169
EQUITY VALUE FUND 202,047,852 290,536,554
GROWTH FUND 228,263,025 386,417,991
GROWTH EQUITY FUND* 615,655,712 602,496,465
INDEX FUND* 100,449,317 80,553,277
INTERNATIONAL FUND* 333,827,182 448,596,994
INTERNATIONAL EQUITY FUND 193,410,317 53,837,378
LARGE COMPANY GROWTH FUND* 532,003,616 179,607,717
SMALL CAP GROWTH FUND 1,067,449,064 925,982,731
SMALL CAP OPPORTUNITIES FUND 355,656,810 387,753,309
SMALL CAP VALUE FUND* 44,159,017 43,091,803
SMALL COMPANY GROWTH FUND* 1,151,114,378 1,246,593,493
SPECIALIZED TECHNOLOGY FUND 89,065,037 5,629,991
</TABLE>
* THESE FUNDS DO NOT HOLD INVESTMENT SECURITIES DIRECTLY. THE FUNDS SEEK TO
ACHIEVE THEIR INVESTMENT OBJECTIVE BY INVESTING ALL OF THEIR INVESTABLE
ASSETS IN ONE OR MORE CORE PORTFOLIOS. PURCHASES AND SALES FOR THE FUNDS
NORMALLY WOULD BE BASED ON THE PURCHASES AND SALES OF A FUND'S INVESTMENT
IN A CORE PORTFOLIO RATHER THAN THE UNDERLYING SECURITIES IN THAT CORE
PORTFOLIO. SINCE THE FUND HAS AN INDIRECT INTEREST IN THE SECURITIES HELD
IN THE CORE PORTFOLIO, THE PURCHASES AND SALES DISCLOSED ARE CALCULATED BY
AGGREGATING THE RESULTS OF MULTIPLYING THE FUND'S OWNERSHIP PERCENTAGE OF
THE RESPECTIVE CORE PORTFOLIO BY THE CORRESPONDING CORE PORTFOLIO'S
PURCHASES AND SALES.
123
<PAGE>
STOCK FUNDS TAX INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
Pursuant to Section 854(b)(2) of the Internal Revenue Code, the Equity Index
and the Equity Value Fund designate 100% and 98.29%, respectively, of their
net investment income distributed during the year as qualifying for the
corporate dividends-received deduction.
Pursuant to Section 852(b)(3) of the Internal Revenue Code, the following
Funds designate, as capital gain dividends for the taxable year as indicated,
the following amounts:
<TABLE>
<CAPTION>
Fund Amount Tax year
<S> <C> <C>
EQUITY INDEX FUND $101,045,493 OCTOBER 1, 1999 TO SEPTEMBER 30, 2000
EQUITY VALUE FUND 49,897,305 OCTOBER 1, 1999 TO SEPTEMBER 30, 2000
GROWTH FUND 89,942,020 NOVEMBER 6, 1999 TO SEPTEMBER 30, 2000
INTERNATIONAL EQUITY FUND 5,474,735 OCTOBER 1, 1999 TO SEPTEMBER 30, 2000
SMALL CAP GROWTH FUND 6,019,320 NOVEMBER 6, 1999 TO SEPTEMBER 30, 2000
SMALL CAP OPPORTUNITIES FUND 7,090,964 OCTOBER 1, 1999 TO SEPTEMBER 30, 2000
</TABLE>
124
<PAGE>
INDEPENDENT AUDITORS' REPORT STOCK FUNDS
--------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities of
Disciplined Growth Fund, Diversified Equity Fund, Diversified Small Cap Fund,
Equity Income Fund, Equity Index Fund, Equity Value Fund, Growth Fund, Growth
Equity Fund, Index Fund, International Fund, International Equity Fund, Large
Company Growth Fund, Small Cap Growth Fund, Small Cap Opportunities Fund,
Small Cap Value Fund, Small Company Growth Fund, and Specialized Technology
Fund, seventeen portfolios of Wells Fargo Funds Trust (collectively the
"Funds"), including the portfolios of investments as of September 30, 2000,
and the related statements of operations for the year then ended, the
statements of changes in net assets for the periods presented on pages 90 to
100, and the financial highlights for the periods presented on pages 102 to
112. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of the securities owned as of September 30,
2000, by correspondence with the custodian. As to securities purchased but not
yet received, we performed other appropriate auditing procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned Funds of Wells Fargo Funds Trust as of September 30,
2000, the results of their operations, the changes in their net assets and
their financial highlights for each of the periods indicated in the paragraph
above in conformity with accounting principles generally accepted in the
United States of America.
/s/ KPMG LLP
San Francisco, California
November 3, 2000
125
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.60%
BUSINESS SERVICES - 13.99%
88,380 AMERICA ONLINE INCORPORATED+ $ 4,750,425
9,767 CYBEAR GROUP+ 12,819
63,400 ORACLE CORPORATION+ 4,992,750
46,000 SUN MICROSYSTEMS INCORPORATED+ 5,370,500
165,850 SUNGARD DATA SYSTEMS
INCORPORATED+ 7,100,453
205,510 SYBASE INCORPORATED+ 4,726,730
26,953,677
------------
CHEMICALS & ALLIED PRODUCTS - 8.53%
62,600 ANDRX GROUP+ 5,845,275
122,720 IVAX CORPORATION+ 5,645,120
147,760 KING PHARMACEUTICALS
INCORPORATED+ 4,940,725
16,431,120
------------
COMMUNICATIONS - 2.31%
110,520 BELLSOUTH CORPORATION 4,448,430
------------
EATING & DRINKING PLACES - 2.72%
252,145 DARDEN RESTAURANTS
INCORPORATED 5,247,768
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.37%
62,280 CALPINE CORPORATION+ 6,500,475
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 7.25%
119,800 ADC TELECOMMUNICATIONS
INCORPORATED+ 3,221,497
55,250 ANALOG DEVICES INCORPORATED+ 4,561,578
67,520 TEXAS INSTRUMENTS INCORPORATED 3,186,100
97,395 VISHAY INTERTECHNOLOGY
INCORPORATED+ 2,994,896
13,964,071
------------
FOOD & KINDRED PRODUCTS - 8.57%
133,000 ANHEUSER-BUSCH COMPANIES
INCORPORATED 5,627,563
185,869 PEPSI BOTTLING GROUP
INCORPORATED 5,587,686
66,990 QUAKER OATS COMPANY 5,300,584
16,515,833
------------
HEALTH SERVICES - 3.67%
194,400 TENET HEALTHCARE CORPORATION 7,071,300
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 3.18%
160,520 MGM GRAND INCORPORATED 6,129,858
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.95%
116,360 DELL COMPUTER CORPORATION+ 3,585,343
60,131 EMC CORPORATION+ 5,960,485
9,545,828
------------
</TABLE>
126
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS - 8.59%
77,900 JEFFERSON-PILOT CORPORATION $ 5,287,463
170,710 OXFORD HEALTH PLANS
INCORPORATED+ 5,246,665
60,940 UNITEDHEALTH GROUP
INCORPORATED 6,017,825
16,551,953
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.98%
78,590 CREDENCE SYSTEMS CORPORATION+ 2,357,700
72,025 MILLIPORE CORPORATION 3,488,711
51,800 TERADYNE INCORPORATED+ 1,813,000
7,659,411
------------
MOTION PICTURES - 2.46%
123,829 WALT DISNEY COMPANY 4,736,459
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.84%
76,490 FANNIE MAE 5,469,035
------------
OIL & GAS EXTRACTION - 2.66%
77,460 KERR-MCGEE CORPORATION 5,131,725
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 2.81%
80,740 AMERADA HESS CORPORATION 5,404,534
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.44%
92,500 KNIGHT-RIDDER INCORPORATED 4,700,156
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.34%
68,280 MERRILL LYNCH & COMPANY
INCORPORATED 4,506,480
------------
TRANSPORTATION EQUIPMENT - 8.16%
95,490 BOEING COMPANY 6,015,870
72,780 GENERAL DYNAMICS CORPORATION 4,571,493
107,420 HARLEY-DAVIDSON INCORPORATED 5,142,733
15,730,096
------------
TRANSPORTATION SERVICES - 2.78%
118,880 EXPEDITORS INTERNATIONAL OF
WASHINGTON INCORPORATED 5,357,030
------------
188,055,239
TOTAL COMMON STOCK (COST $156,163,354)
------------
</TABLE>
127
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.25%
REPURCHASE AGREEMENTS - 1.25%
$2,414,071 BANC OF AMERICA NT & SA --
102% COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/2/00 $ 2,414,071
------------
2,414,071
TOTAL SHORT-TERM INSTRUMENTS (COST
$2,414,071)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $158,577,425)* 98.85% $190,469,310
OTHER ASSETS AND LIABILITIES, NET 1.15 2,219,984
------- ------------
TOTAL NET ASSETS 100.00% $192,689,294
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $41,280,811
GROSS UNREALIZED DEPRECIATION (9,388,926)
----------
NET UNREALIZED APPRECIATION $31,891,885
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
128
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 99.71%
AMUSEMENT & RECREATION SERVICES - 1.47%
1,000,000 WALT DISNEY COMPANY $ 38,250,000
--------------
BUSINESS SERVICES - 2.12%
2,617,800 IMS HEALTH INCORPORATED 54,319,350
130,890 SYNAVANT INCORPORATED+ 875,327
55,194,677
--------------
CHEMICALS & ALLIED PRODUCTS - 15.01%
1,215,200 AMERICAN HOME PRODUCTS
CORPORATION 68,734,750
1,061,369 E.I. DU PONT DE NEMOURS &
COMPANY 43,980,478
577,850 JOHNSON & JOHNSON 54,281,784
113,830 LILLY INDUSTRIES INCORPORATED
CLASS A 3,357,985
790,300 MERCK & COMPANY INCORPORATED 58,827,956
1,494,900 PFIZER INCORPORATED 67,177,069
53,193 PHARMACIA CORPORATION 3,201,554
800,000 PROCTER & GAMBLE COMPANY 53,600,000
1,297,011 ROHM & HAAS COMPANY 37,694,382
390,855,958
--------------
COMMUNICATIONS - 4.51%
131,427 ALLTEL CORPORATION 6,858,848
1,896,800 AT&T CORPORATION 55,718,500
84,000 HELLENIC TELECOMMUNICATION
ORGANIZATION SA 1,615,699
36,000 NOKIA CORPORATION ADR 1,433,250
93,678 TELECOM ITALIA SPA 995,270
1,014,796 VERIZON COMMUNICATIONS 49,154,181
50,000 WORLDCOM INCORPORATED+ 1,518,750
117,294,498
--------------
DEPOSITORY INSTITUTIONS - 4.38%
81,500 COMMERCIAL FEDERAL CORPORATION 1,558,688
495,250 J.P. MORGAN & COMPANY
INCORPORATED 80,911,468
1,384,950 U.S. BANCORP 31,507,613
113,977,769
--------------
EATING & DRINKING PLACES - 1.36%
1,169,300 MCDONALD'S CORPORATION 35,298,244
--------------
ELECTRIC, GAS & SANITARY SERVICES - 3.80%
604,100 PUBLIC SERVICE ENTERPRISE
GROUP INCORPORATED 26,995,719
1,771,550 TEXAS UTILITIES COMPANY 70,197,669
100,000 WASTE MANAGEMENT INCORPORATED 1,743,750
98,937,138
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 9.01%
34,000 DRAKA HOLDING NV 2,265,181
1,015,500 EMERSON ELECTRIC COMPANY 68,038,500
1,676,034 GENERAL ELECTRIC COMPANY 96,686,211
</TABLE>
129
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
62,352 KONINKLIJKE PHILIPS
ELECTRONICS NV $ 2,649,943
1,766,292 LUCENT TECHNOLOGIES
INCORPORATED 53,982,299
100,000 MOTOROLA INCORPORATED 2,825,000
258,697 VISHAY INTERTECHNOLOGY
INCORPORATED+ 7,954,933
234,402,067
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 1.94%
1,468,100 DUN & BRADSTREET CORPORATION 50,557,694
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
2.07%
2,036,600 FORTUNE BRANDS INCORPORATED 53,969,900
--------------
FOOD & KINDRED PRODUCTS - 6.27%
230,000 BASS PLC 2,261,366
13,000 CONAGRA FOODS INCORPORATED 260,813
33,000 CSM NV 720,719
2,388,740 PEPSICO INCORPORATED 109,882,040
2,454,500 SARA LEE CORPORATION 49,857,030
162,981,968
--------------
FURNITURE & FIXTURES - 0.15%
158,425 HON INDUSTRIES INCORPORATED 3,901,216
--------------
GENERAL MERCHANDISE STORES - 4.22%
467,547 J.C. PENNEY COMPANY
INCORPORATED 5,522,899
1,556,050 MAY DEPARTMENT STORES COMPANY 31,899,025
750,530 SEARS ROEBUCK & COMPANY 24,332,183
1,873,600 TARGET CORPORATION 48,011,000
109,765,107
--------------
HOLDING & OTHER INVESTMENT OFFICES - 0.32%
107 BERKSHIRE HATHAWAY
INCORPORATED CLASS A+ 6,890,800
50,700 PEARSON PLC 1,408,498
8,299,298
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.45%
927,500 HEWLETT-PACKARD COMPANY 89,967,500
923,000 IBM CORPORATION 103,837,500
193,805,000
--------------
INSURANCE CARRIERS - 8.76%
1,292,651 AEGON NV NY REGISTERED SHARES 47,989,668
95,674 ALLSTATE CORPORATION 3,324,671
746,750 AMERICAN GENERAL CORPORATION 58,246,500
6,000 MBIA INCORPORATED 426,750
106,260 SCOR 4,641,432
5,500 SCOR ADR 237,188
2,260,100 ST. PAUL COMPANIES
INCORPORATED 111,451,181
175,100 SUMITOMO MARINE & FIRE
INSURANCE COMPANY 1,038,674
56,475 TOKIO MARINE & FIRE INSURANCE
COMPANY 564,436
</TABLE>
130
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS (continued)
250 YASUDA FIRE & MARINE INSURANCE
COMPANY LIMITED $ 1,328
227,921,828
--------------
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION -
0.07%
536,700 FIRSTGROUP PLC 1,729,854
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 2.17%
353,748 AGILENT TECHNOLOGIES
INCORPORATED+ 17,311,543
585,850 EASTMAN KODAK COMPANY 23,946,619
1,000,000 XEROX CORPORATION 15,062,500
56,320,662
--------------
METAL MINING - 0.11%
103,000 DE BEERS CON MINES ADR 2,851,813
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 3.70%
238,575 HASBRO INCORPORATED 2,728,702
1,801,494 TYCO INTERNATIONAL LIMITED 93,452,501
96,181,203
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.15%
327,687 WERNER ENTERPRISES
INCORPORATED 3,850,322
--------------
NONDEPOSITORY CREDIT INSTITUTIONS - 3.34%
1,199,700 AMERICAN EXPRESS COMPANY 72,881,775
152,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 8,217,500
79,135 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5,658,153
86,757,428
--------------
OIL & GAS EXTRACTION - 1.80%
567,500 SCHLUMBERGER LIMITED 46,712,344
--------------
PAPER & ALLIED PRODUCTS - 1.92%
547,458 MINNESOTA MINING &
MANUFACTURING COMPANY 49,887,110
--------------
PERSONAL SERVICES - 0.27%
192,850 H&R BLOCK INCORPORATED 7,147,503
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.67%
922,928 BP AMOCO PLC ADR 48,915,184
444,950 CHEVRON CORPORATION 37,931,988
887,435 EXXON MOBIL CORPORATION 79,092,644
660,500 NIPPON SANSO CORPORATION 2,261,568
522,604 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES 31,323,576
199,524,960
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.33%
5,373 EDIPRESSE SA 2,393,609
292,800 N.V. HOLDINGMAATSCHAPPIJ DE
TELEGRAAF 6,071,778
8,465,387
--------------
</TABLE>
131
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TOBACCO PRODUCTS - 1.57%
1,390,150 PHILIP MORRIS COMPANIES
INCORPORATED $ 40,922,540
--------------
TRANSPORTATION EQUIPMENT - 3.57%
1,186,800 HONEYWELL INTERNATIONAL
INCORPORATED 42,279,750
2,411 SCHINDLER HOLDING AG 3,702,063
677,600 UNITED TECHNOLOGIES
CORPORATION 46,923,800
92,905,613
--------------
WATER TRANSPORTATION - 0.20%
208,502 CARNIVAL CORPORATION 5,134,362
--------------
2,593,803,463
TOTAL COMMON STOCK (COST $1,695,625,107)
--------------
<CAPTION>
INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.15%
REPURCHASE AGREEMENTS - 0.15%
3,832,141 BANC OF AMERICA NT & SA - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/2/00 3,832,141
--------------
3,832,141
TOTAL SHORT-TERM INSTRUMENTS (COST
$3,832,141)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,699,457,248)* 99.86% $2,597,635,604
OTHER ASSETS AND LIABILITIES, NET 0.14% 3,571,473
------- --------------
TOTAL NET ASSETS 100.00% $2,601,207,077
------- --------------
</TABLE>
+ NON-INCORPORATED INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $1,699,459,127 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $1,031,903,343
GROSS UNREALIZED DEPRECIATION (133,726,866)
-------------
NET UNREALIZED APPRECIATION $ 898,176,477
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
132
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 98.85%
AGRICULTURAL PRODUCTION-CROPS - 0.07%
46,000 NABISCO GROUP HOLDINGS
CORPORATION $ 1,311,000
--------------
AMUSEMENT & RECREATION SERVICES - 0.65%
16,400 HARRAH'S ENTERTAINMENT
INCORPORATED+ 451,000
293,600 WALT DISNEY COMPANY 11,230,200
11,681,200
--------------
APPAREL & ACCESSORY STORES - 0.37%
119,700 GAP INCORPORATED 2,408,962
46,400 KOHL'S CORPORATION+ 2,676,700
60,800 LIMITED INCORPORATED 1,341,400
18,300 NORDSTROM INCORPORATED 284,794
6,711,856
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.04%
7,500 LIZ CLAIBORNE INCORPORATED 288,750
16,100 V F CORPORATION 397,469
686,219
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.02%
18,000 AUTOZONE INCORPORATED+ 408,375
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
8,400 RYDER SYSTEM INCORPORATED 154,875
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.04%
8,300 CENTEX CORPORATION 266,638
6,800 KAUFMAN & BROAD HOME
CORPORATION 183,175
5,700 PULTE CORPORATION 188,100
637,913
--------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.13%
326,200 HOME DEPOT INCORPORATED 17,308,988
53,900 LOWE'S COMPANIES INCORPORATED 2,418,763
22,900 SHERWIN-WILLIAMS COMPANY 489,487
20,217,238
--------------
BUSINESS SERVICES - 9.80%
16,900 ADOBE SYSTEMS INCORPORATED 2,623,725
325,200 AMERICA ONLINE INCORPORATED+ 17,479,500
8,100 AUTODESK INCORPORATED 205,538
88,300 AUTOMATIC DATA PROCESSING
INCORPORATED 5,905,063
34,800 BMC SOFTWARE INCORPORATED+ 665,550
25,900 CABLETRON SYSTEMS
INCORPORATED+ 760,813
102,300 CENDANT CORPORATION+ 1,112,513
20,500 CERIDIAN CORPORATION+ 575,281
26,200 CITRIX SYSTEMS INCORPORATED+ 525,638
83,200 COMPUTER ASSOCIATES
INTERNATIONAL INCORPORATED 2,095,600
</TABLE>
133
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
23,700 COMPUTER SCIENCES CORPORATION+ $ 1,759,725
51,400 COMPUWARE CORPORATION+ 430,475
21,700 CONVERGYS CORPORATION+ 843,588
10,200 DELUXE CORPORATION 207,188
18,000 ECOLAB INCORPORATED 649,125
65,700 ELECTRONIC DATA SYSTEMS
CORPORATION 2,726,550
19,900 EQUIFAX INCORPORATED 536,056
57,100 FIRST DATA CORPORATION 2,230,469
41,900 IMS HEALTH INCORPORATED 869,425
43,300 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 1,474,906
40,000 MCKESSON HBOC INCORPORATED 1,222,500
11,200 MERCURY INTERACTIVE
CORPORATION+ 1,755,600
741,200 MICROSOFT CORPORATION+ 44,657,300
13,500 NCR CORPORATION+ 510,469
45,700 NOVELL INCORPORATED+ 454,144
25,000 OMNICOM GROUP INCORPORATED 1,823,438
396,500 ORACLE CORPORATION+ 31,224,374
38,400 PARAMETRIC TECHNOLOGY COMPANY+ 420,000
39,400 PEOPLESOFT INCORPORATED+ 1,100,737
16,700 SAPIENT CORPORATION+ 679,480
58,700 SIEBEL SYSTEMS INCORPORATED+ 6,534,043
223,400 SUN MICROSYSTEMS INCORPORATED+ 26,081,950
44,100 UNISYS CORPORATION+ 496,125
56,600 VERITAS SOFTWARE CORPORATION+ 8,037,200
77,400 YAHOO! INCORPORATED+ 7,043,400
10,300 YOUNG & RUBICAM INCORPORATED 509,850
176,227,338
--------------
CHEMICALS & ALLIED PRODUCTS - 11.50%
218,300 ABBOTT LABORATORIES 10,382,894
32,300 AIR PRODUCTS AND CHEMICALS
INCORPORATED 1,162,800
7,900 ALBERTO CULVER COMPANY 227,619
16,300 ALZA CORPORATION+ 1,409,950
183,600 AMERICAN HOME PRODUCTS
CORPORATION 10,384,875
144,800 AMGEN INCORPORATED+ 10,111,113
33,400 AVON PRODUCTS INCORPORATED 1,365,225
20,800 BIOGEN INCORPORATED+ 1,268,800
276,800 BRISTOL-MYERS SQUIBB COMPANY 15,812,200
33,100 CLOROX COMPANY 1,309,519
80,900 COLGATE-PALMOLIVE COMPANY 3,818,480
95,500 DOW CHEMICAL COMPANY 2,381,531
146,800 E I DU PONT DE NEMOURS &
COMPANY 6,083,025
10,800 EASTMAN CHEMICAL COMPANY 398,925
159,100 ELI LILLY & COMPANY 12,906,988
4,300 FMC CORPORATION+ 288,369
148,300 GILLETTE COMPANY 4,578,763
7,400 GREAT LAKES CHEMICAL
CORPORATION 216,913
14,100 INTERNATIONAL FLAVORS &
FRAGRANCES INCORPORATED 257,325
</TABLE>
134
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
195,800 JOHNSON & JOHNSON $ 18,392,963
29,600 MEDIMMUNE INCORPORATED+ 2,286,600
324,000 MERCK & COMPANY INCORPORATED 24,117,750
889,300 PFIZER INCORPORATED 39,962,918
182,800 PHARMACIA CORPORATION 11,002,275
24,500 PPG INDUSTRIES INCORPORATED 972,343
22,300 PRAXAIR INCORPORATED 833,462
184,200 PROCTER & GAMBLE COMPANY 12,341,400
30,500 ROHM & HAAS COMPANY 886,405
206,300 SCHERING-PLOUGH CORPORATION 9,592,950
11,400 SIGMA ALDRICH 376,200
19,000 UNION CARBIDE CORPORATION 717,250
9,400 W R GRACE & COMPANY+ 64,625
14,400 WATSON PHARMACEUTICALS
INCORPORATED+ 934,200
206,846,655
--------------
COMMUNICATIONS - 6.93%
99,400 ADC TELECOMMUNICATIONS
INCORPORATED+ 2,672,928
44,400 ALLTEL CORPORATION 2,317,125
529,000 AT&T CORPORATION 15,539,375
264,000 BELLSOUTH CORPORATION 10,626,000
19,800 CENTURYTEL INCORPORATED 539,550
82,500 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 4,661,250
127,400 COMCAST CORPORATION CLASS A+ 5,215,438
124,000 GLOBAL CROSSING LIMITED+ 3,844,000
107,200 NEXTEL COMMUNICATIONS
INCORPORATED+ 5,011,600
233,900 QWEST COMMUNICATIONS
INTERNATIONAL INCORPORATION+ 11,241,819
477,400 SBC COMMUNICATIONS
INCORPORATED 23,870,000
124,600 SPRINT CORPORATION (FON GROUP) 3,652,338
130,700 SPRINT CORPORATION (PCS
GROUP)+ 4,582,668
382,800 VERIZON COMMUNICATIONS 18,541,875
404,600 WORLDCOM INCORPORATED+ 12,289,725
124,605,691
--------------
DEPOSITORY INSTITUTIONS - 7.33%
53,100 AMSOUTH BANCORP 663,750
231,400 BANK OF AMERICA CORPORATION+ 12,119,575
104,000 BANK OF NEW YORK COMPANY
INCORPORATED 5,830,500
162,800 BANK ONE CORPORATION 6,288,150
56,300 BB&T CORPORATION 1,696,038
29,600 CHARTER ONE FINANCIAL
INCORPORATED 721,500
184,300 CHASE MANHATTAN CORPORATION 8,512,356
633,600 CITIGROUP INCORPORATED 34,254,000
22,000 COMERICA INCORPORATED 1,285,625
65,500 FIFTH THIRD BANCORP 3,528,813
138,700 FIRST UNION CORPORATION 4,464,406
135,000 FIRSTAR CORPORATION 3,020,625
127,100 FLEETBOSTON FINANCIAL
CORPORATION 4,956,900
</TABLE>
135
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS (continued)
22,300 GOLDEN WEST FINANCIAL
CORPORATION $ 1,195,838
35,400 HUNTINGTON BANCSHARES
INCORPORATED 519,938
22,400 J P MORGAN & COMPANY
INCORPORATED 3,659,600
60,600 KEYCORP 1,533,938
68,800 MELLON FINANCIAL CORPORATION 3,190,600
85,600 NATIONAL CITY CORPORATION 1,893,900
31,200 NORTHERN TRUST CORPORATION 2,772,900
19,300 OLD KENT FINANCIAL CORPORATION 558,494
40,700 PNC FINANCIAL SERVICES GROUP 2,645,500
30,800 REGIONS FINANCIAL CORPORATION 698,775
23,700 SOUTHTRUST CORPORATION 745,069
22,700 STATE STREET CORPORATION 2,951,000
24,500 SUMMIT BANCORP 845,250
42,000 SUNTRUST BANKS INCORPORATED 2,092,124
40,000 SYNOVUS FINANCIAL CORPORATION 847,500
105,000 US BANCORP 2,388,750
19,000 UNION PLANTERS CORPORATION 628,188
28,600 WACHOVIA CORPORATION 1,621,262
75,900 WASHINGTON MUTUAL INCORPORATED 3,021,769
231,900 WELLS FARGO & COMPANY# 10,652,905
131,805,538
--------------
EATING & DRINKING PLACES - 0.44%
17,200 DARDEN RESTAURANTS
INCORPORATED 357,975
186,000 MCDONALD'S CORPORATION 5,614,874
26,300 STARBUCKS CORPORATION+ 1,053,644
20,500 TRICON GLOBAL RESTAURANTS
INCORPORATED+ 627,813
16,000 WENDY'S INTERNATIONAL
INCORPORATED 321,000
7,975,306
--------------
ELECTRIC, GAS & SANITARY SERVICES - 2.70%
64,300 AES CORPORATION+ 4,404,550
27,700 ALLIED WASTE INDUSTRIES
INCORPORATED+ 254,494
19,300 AMEREN CORPORATION 808,188
45,400 AMERICAN ELECTRIC POWER
COMPANY INCORPORATED 1,776,275
22,400 CINERGY CORPORATION 740,600
15,500 CMS ENERGY CORPORATION 417,531
22,500 CP&L ENERGY INCORPORATED 937,969
11,200 COLUMBIA ENERGY GROUP 795,200
29,900 CONSOLIDATED EDISON
INCORPORATED 1,020,338
21,100 CONSTELLATION ENERGY GROUP 1,049,725
33,500 DOMINION RESOURCE INCORPORATED 1,945,094
20,100 DTE ENERGY COMPANY 768,825
51,800 DUKE ENERGY CORPORATION 4,441,850
3,800 EASTERN ENTERPRISES 242,488
45,900 EDISON INTERNATIONAL 886,444
32,700 EL PASO ENERGY CORPORATION 2,015,138
31,400 ENTERGY CORPORATION 1,169,650
</TABLE>
136
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
32,200 FIRSTENERGY CORPORATION $ 867,388
13,900 FLORIDA PROGRESS CORPORATION 735,831
25,000 FPL GROUP INCORPORATED 1,643,750
17,100 GPU INCORPORATED 554,681
18,900 KEYSPAN CORPORATION 758,363
22,600 NIAGARA MOHAWK HOLDINGS
INCORPORATED+ 355,950
6,500 NICOR INCORPORATED 235,218
4,100 ONEOK INCORPORATED 162,975
23,900 PECO ENERGY COMPANY 1,447,443
5,000 PEOPLE'S ENERGY CORPORATION 166,875
54,300 PG&E CORPORATION 1,313,380
11,900 PINNACLE WEST CAPITAL
CORPORATION 605,413
20,400 PPL CORPORATION 851,700
30,200 PUBLIC SERVICE ENTERPRISE
GROUP INCORPORATED 1,349,562
41,400 RELIANT ENERGY INCORPORATED 1,925,100
28,800 SEMPRA ENERGY 599,400
91,400 SOUTHERN COMPANY 2,964,787
37,200 TEXAS UTILITIES COMPANY 1,474,050
24,800 UNICOM CORPORATION 1,393,450
87,600 WASTE MANAGEMENT INCORPORATED 1,527,525
62,400 WILLIAMS COMPANIES
INCORPORATED 2,636,400
47,800 XCEL ENERGY INCORPORATED 1,314,500
48,558,100
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 14.17%
14,000 ADAPTEC INCORPORATED+ 280,000
43,900 ADVANCED MICRO DEVICES
INCORPORATED+ 1,037,138
56,200 ALTERA CORPORATION+ 2,683,550
27,400 AMERICAN POWER CONVERSION
CORPORATION+ 525,738
50,000 ANALOG DEVICES INCORPORATED+ 4,128,125
11,400 ANDREW CORPORATION+ 298,538
31,300 BROADCOM CORPORATION+ 7,629,375
32,100 CONEXANT SYSTEMS INCORPORATED+ 1,344,188
13,100 COOPER INDUSTRIES INCORPORATED 461,775
10,300 EATON CORPORATION 634,738
60,200 EMERSON ELECTRIC COMPANY 4,033,400
1,395,100 GENERAL ELECTRIC COMPANY 80,479,831
945,700 INTEL CORPORATION 39,364,763
131,800 JDS UNIPHASE CORPORATION+ 12,479,813
43,800 LINEAR TECHNOLOGY CORPORATION 2,836,050
43,700 LSI LOGIC CORPORATION+ 1,278,225
470,400 LUCENT TECHNOLOGIES
INCORPORATED 14,376,600
39,800 MAXIM INTEGRATED PRODUCTS
INCORPORATED+ 3,201,413
10,900 MAYTAG CORPORATION 338,580
79,500 MICRON TECHNOLOGY
INCORPORATED+ 3,657,000
27,600 MOLEX INCORPORATED 1,502,475
307,100 MOTOROLA INCORPORATED 8,675,575
25,000 NATIONAL SEMICONDUCTOR
CORPORATION+ 1,006,250
</TABLE>
137
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
5,700 NATIONAL SERVICE INDUSTRIES $ 111,506
44,000 NETWORK APPLIANCE
INCORPORATED+ 5,604,500
420,700 NORTEL NETWORKS CORPORATION 25,057,943
18,500 NOVELLUS SYSTEMS INCORPORATED+ 861,406
104,900 QUALCOMM INCORPORATED+ 7,474,125
47,900 RAYTHEON COMPANY CLASS B 1,362,156
21,300 SANMINA CORPORATION+ 1,994,213
22,400 SCIENTIFIC-ATLANTA
INCORPORATED 1,425,200
57,800 TELLABS INCORPORATED+ 2,759,950
243,500 TEXAS INSTRUMENTS INCORPORATED 11,490,155
8,200 THOMAS & BETTS CORPORATION 142,987
10,000 WHIRLPOOL CORPORATION 388,750
46,300 XILINK INCORPORATED+ 3,964,438
254,890,469
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.44%
22,800 DUN & BRADSTREET CORPORATION 785,175
10,700 FLUOR CORPORATION 321,000
62,800 HALLIBURTON COMPANY 3,073,275
52,400 PAYCHEX INCORPORATED 2,751,000
6,900 PERKINELMER INCORPORATED 720,188
16,300 QUINTILES TRANSNATIONAL
CORPORATION+ 259,781
7,910,419
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.40%
4,100 BALL CORPORATION 129,919
8,600 CRANE COMPANY 196,725
17,700 CROWN CORK & SEAL COMPANY
INCORPORATED 189,168
22,100 FORTUNE BRANDS INCORPORATED 585,650
42,500 ILLINOIS TOOL WORKS
INCORPORATED 2,374,688
60,100 LOCKHEED MARTIN CORPORATION 1,980,896
64,400 MASCO CORPORATION 1,199,450
8,300 SNAP-ON INCORPORATED 195,569
12,100 STANLEY WORKS 279,056
7,131,121
--------------
FOOD & KINDRED PRODUCTS - 3.44%
5,200 ADOLPH COORS COMPANY 328,575
127,600 ANHEUSER-BUSCH COMPANIES
INCORPORATED 5,399,075
89,100 ARCHER DANIELS MIDLAND COMPANY 768,488
39,100 BESTFOODS INCORPORATED 2,844,525
9,700 BROWN-FORMAN CORPORATION 531,075
59,300 CAMPBELL SOUP COMPANY 1,534,388
348,900 COCA-COLA COMPANY 19,233,113
58,900 COCA-COLA ENTERPRISES
INCORPORATED 938,719
75,100 CONAGRA FOODS INCORPORATED 1,506,693
40,200 GENERAL MILLS INCORPORATED 1,427,100
48,900 H J HEINZ COMPANY 1,812,356
</TABLE>
138
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FOOD & KINDRED PRODUCTS (continued)
15,100 HERCULES INCORPORATED $ 213,288
19,300 HERSHEY FOODS CORPORATION 1,044,612
57,100 KELLOGG COMPANY 1,381,106
203,300 PEPSICO INCORPORATED 9,351,800
18,700 QUAKER OATS COMPANY 1,479,638
43,200 RALSTON PURINA GROUP 1,023,300
122,500 SARA LEE CORPORATION 2,488,280
61,500 SEAGRAM COMPANY LIMITED 3,532,406
80,500 UNILEVER NV ADR 3,884,125
16,000 WM WRIGLEY JR COMPANY 1,198,000
61,920,662
--------------
FOOD STORES - 0.23%
59,600 ALBERTSON'S INCORPORATED 1,251,600
116,300 KROGER COMPANY+ 2,624,019
19,800 WINN-DIXIE STORES INCORPORATED 284,625
4,160,244
--------------
FURNITURE & FIXTURES - 0.02%
27,700 LEGGETT & PLATT 438,006
--------------
GENERAL MERCHANDISE STORES - 2.21%
15,700 CONSOLIDATED STORES
CORPORATION+ 211,950
13,200 DILLARDS INCORPORATED 140,250
46,300 DOLLAR GENERAL CORPORATION 775,525
29,300 FEDERATED DEPARTMENT STORES
INCORPORATED+ 765,463
36,800 J C PENNEY COMPANY
INCORPORATED 434,700
67,600 KMART CORPORATION+ 405,600
44,800 MAY DEPARTMENT STORES COMPANY 918,400
48,300 SEARS ROEBUCK & COMPANY 1,565,885
128,200 TARGET CORPORATION 3,285,125
41,200 TJX COMPANIES INCORPORATED 927,000
629,100 WAL-MART STORES INCORPORATED 30,275,438
39,705,336
--------------
HEALTH SERVICES - 0.29%
78,600 HCA - THE HEALTHCARE COMPANY 2,918,025
54,300 HEALTHSOUTH CORPORATION+ 441,187
14,400 MANOR CARE INCORPORATED+ 225,900
44,300 TENET HEALTHCARE CORPORATION 1,611,413
5,196,525
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS - 0.01%
8,500 MCDERMOTT INTERNATIONAL
INCORPORATED 93,500
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.23%
29,100 BEST BUY COMPANY INCORPORATED+ 1,851,487
28,900 CIRCUIT CITY STORES 664,700
</TABLE>
139
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (continued)
26,200 RADIOSHACK CORPORATION $ 1,693,175
4,209,362
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.10%
51,900 HILTON HOTELS CORPORATION 600,093
33,800 MARRIOTT INTERNATIONAL
CLASS A 1,231,588
1,831,681
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.87%
45,800 APPLE COMPUTER INCORPORATED+ 1,179,350
114,200 APPLIED MATERIALS
INCORPORATED+ 6,773,488
46,600 BAKER HUGHES INCORPORATED 1,730,025
11,700 BLACK & DECKER CORPORATION 399,994
3,000 BRIGGS & STRATTON CORPORATION 113,438
48,700 CATERPILLAR INCORPORATED 1,643,625
999,500 CISCO SYSTEMS INCORPORATED+ 55,222,375
239,400 COMPAQ COMPUTER CORPORATION 6,602,652
22,000 COMVERSE TECHNOLOGY
INCORPORATED+ 2,376,000
5,800 CUMMINS ENGINE COMPANY
INCORPORATED 173,638
33,000 DEERE & COMPANY 1,097,250
364,400 DELL COMPUTER CORPORATION+ 11,228,075
28,600 DOVER CORPORATION 1,342,413
307,100 EMC CORPORATION+ 30,441,288
45,400 GATEWAY INCORPORATED+ 2,122,450
140,500 HEWLETT-PACKARD COMPANY 13,628,500
248,000 IBM CORPORATION 27,900,000
22,700 INGERSOLL-RAND COMPANY 768,963
18,000 LEXMARK INTERNATIONAL
INCORPORATED+ 675,000
17,400 PALL CORPORATION 346,912
79,600 PALM INCORPORATED+ 4,213,824
36,000 PITNEY BOWES INCORPORATED 1,419,750
32,300 SEAGATE TECHNOLOGY
INCORPORATED+ 2,228,700
84,700 SOLECTRON CORPORATION+ 3,906,787
8,500 TIMKEN COMPANY 116,343
177,650,840
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.37%
35,900 AON CORPORATION 1,409,075
23,400 HUMANA INCORPORATED+ 251,550
38,200 MARSH & MCLENNAN COMPANIES
INCORPORATED 5,071,050
6,731,675
--------------
INSURANCE CARRIERS - 3.42%
19,900 AETNA INCORPORATED 1,155,444
37,300 AFLAC INCORPORATED 2,389,531
103,400 ALLSTATE CORPORATION 3,593,150
35,600 AMERICAN GENERAL CORPORATION 2,776,800
325,900 AMERICAN INTERNATIONAL GROUP
INCORPORATED 31,184,556
</TABLE>
140
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS (continued)
24,600 CHUBB CORPORATION $ 1,946,475
22,200 CIGNA CORPORATION 2,317,680
22,700 CINCINNATI FINANCIAL
CORPORATION 805,850
45,800 CONSECO INCORPORATED 349,225
31,600 HARTFORD FINANCIAL SERVICES
GROUP 2,304,825
14,500 JEFFERSON-PILOT CORPORATION 984,188
26,900 LINCOLN NATIONAL CORPORATION 1,294,563
13,900 LOEWS CORPORATION 1,158,913
13,800 MBIA INCORPORATED 981,525
15,000 MGIC INVESTMENT CORPORATION 916,875
10,300 PROGRESSIVE CORPORATION 843,313
18,000 SAFECO CORPORATION 490,500
31,500 ST PAUL COMPANIES INCORPORATED 1,553,344
18,000 TORCHMARK CORPORATION 500,624
22,600 UNITEDHEALTH GROUP
INCORPORATED 2,231,750
33,900 UNUMPROVIDENT CORPORATION 923,774
8,800 WELLPOINT HEALTH NETWORKS
INCORPORATED+ 844,800
61,547,705
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
14,700 LOUISIANA-PACIFIC CORPORATION 135,056
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 2.02%
63,800 AGILENT TECHNOLOGIES
INCORPORATED+ 3,122,213
18,500 ALLERGAN INCORPORATED 1,562,094
7,500 BAUSCH & LOMB INCORPORATED 292,031
41,200 BAXTER INTERNATIONAL
INCORPORATED 3,288,275
35,700 BECTON DICKINSON & COMPANY 943,819
25,000 BIOMET INCORPORATED 875,000
57,200 BOSTON SCIENTIFIC CORPORATION+ 940,225
7,200 C R BARD INCORPORATED 304,200
20,000 DANAHER CORPORATION 995,000
43,400 EASTMAN KODAK COMPANY 1,773,975
43,200 GUIDANT CORPORATION+ 3,053,700
12,100 JOHNSON CONTROLS INCORPORATED 643,569
26,200 KLA-TENCOR CORPORATION+ 1,079,113
9,500 MALLINCKRODT INCORPORATED 433,438
168,700 MEDTRONIC INCORPORATED 8,740,770
6,500 MILLIPORE CORPORATION 314,844
15,800 PARKER-HANNIFIN CORPORATION 533,250
29,300 PE CORPORATION - PE BIOSYSTEMS
GROUP 3,413,450
6,300 POLAROID CORPORATION 84,654
11,900 ST JUDE MEDICAL INCORPORATED+ 606,900
6,800 TEKTRONIX INCORPORATED 522,325
24,400 TERADYNE INCORPORATED+ 854,000
24,400 THERMO ELECTRON CORPORATION+ 634,400
93,900 XEROX CORPORATION 1,414,368
36,425,613
--------------
</TABLE>
141
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
METAL MINING - 0.16%
55,700 BARRICK GOLD CORPORATION $ 849,425
21,500 FREEPORT MCMORAN INCORPORATED
CLASS B+ 189,469
37,100 HOMESTAKE MINING COMPANY+ 192,456
25,600 INCO LIMITED+ 412,800
23,700 NEWMONT MINING CORPORATION 402,900
11,100 PHELPS DODGE CORPORATION 463,425
46,100 PLACER DOME INCORPORATED 435,069
2,945,544
--------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.03%
14,200 VULCAN MATERIALS COMPANY 570,663
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.78%
5,700 ARMSTRONG HOLDINGS
INCORPORATED 68,044
24,300 HASBRO INCORPORATED 277,931
60,100 MATTEL INCORPORATED 672,369
20,500 TIFFANY & COMPANY 790,531
237,300 TYCO INTERNATIONAL LIMITED 12,309,937
14,118,812
--------------
MISCELLANEOUS RETAIL - 0.72%
39,800 BED BATH & BEYOND
INCORPORATED+ 970,747
63,000 COSTCO WHOLESALE CORPORATION+ 2,201,063
55,000 CVS CORPORATION 2,547,188
5,300 LONGS DRUG STORES INCORPORATED 101,363
43,100 OFFICE DEPOT INCORPORATED+ 336,718
64,000 STAPLES INCORPORATED+ 908,000
30,500 TOYS R US INCORPORATED+ 495,625
142,300 WALGREEN COMPANY 5,398,505
12,959,209
--------------
MOTION PICTURES - 0.81%
186,400 TIME WARNER INCORPORATED 14,585,800
--------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.55%
187,600 AMERICAN EXPRESS COMPANY 11,396,700
102,600 ASSOCIATES FIRST CAPITAL
CORPORATION 3,898,800
27,600 CAPITAL ONE FINANCIAL
CORPORATION 1,933,725
37,000 CIT GROUP INCORPORATED 647,500
16,100 COUNTRYWIDE CREDIT INDUSTRIES
INCORPORATED 607,775
97,900 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5,292,719
141,900 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 10,145,850
66,500 HOUSEHOLD INTERNATIONAL
INCORPORATED 3,765,563
120,000 MBNA CORPORATION 4,620,000
20,100 PROVIDIAN FINANCIAL
CORPORATION 2,552,700
21,900 USA EDUCATION INCORPORATED 1,055,306
45,916,638
--------------
</TABLE>
142
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION - 1.48%
34,200 ANADARKO PETROLEUM CORPORATION $ 2,272,932
17,200 APACHE CORPORATION 1,016,950
30,400 BURLINGTON RESOURCES
INCORPORATED 1,119,100
18,000 DEVON ENERGY CORPORATION 1,082,700
104,100 ENRON CORPORATION 9,121,763
13,300 KERR-MCGEE CORPORATION 881,125
52,000 OCCIDENTAL PETROLEUM
CORPORATION 1,134,250
13,300 ROWAN COMPANIES INCORPORATED+ 385,700
80,300 SCHLUMBERGER LIMITED 6,609,694
29,700 TRANSOCEAN SEDCO FOREX
INCORPORATED+ 1,741,162
44,000 USX-MARATHON GROUP
INCORPORATED 1,248,500
26,613,876
--------------
PAPER & ALLIED PRODUCTS - 0.94%
15,700 AVERY DENNISON CORPORATION 728,088
7,500 BEMIS COMPANY INCORPORATED 240,938
8,100 BOISE CASCADE CORPORATION 215,156
28,800 FORT JAMES CORPORATION 880,200
24,000 GEORGIA-PACIFIC GROUP 564,000
68,100 INTERNATIONAL PAPER COMPANY 1,953,619
75,800 KIMBERLY-CLARK CORPORATION 4,230,588
14,400 MEAD CORPORATION 336,600
55,700 MINNESOTA MINING AND
MANUFACTURING COMPANY 5,075,663
23,900 PACTIV CORPORATION+ 267,380
4,000 POTLATCH CORPORATION 126,500
7,200 TEMPLE-INLAND INCORPORATED 272,700
14,200 WESTVACO CORPORATION 378,962
31,000 WEYERHAEUSER COMPANY 1,251,625
15,400 WILLAMETTE INDUSTRIES
INCORPORATED 431,200
16,953,219
--------------
PERSONAL SERVICES - 0.03%
13,800 H&R BLOCK INCORPORATED 511,463
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.67%
12,700 AMERADA HESS CORPORATION 850,106
9,900 ASHLAND INCORPORATED 333,506
91,900 CHEVRON CORPORATION 7,834,475
30,200 COASTAL CORPORATION 2,238,575
87,700 CONOCO INCORPORATED CLASS B 2,362,419
490,700 EXXON MOBIL CORPORATION 43,733,638
35,900 PHILLIPS PETROLEUM COMPANY 2,252,725
302,000 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES ADR 18,101,125
12,300 SUNOCO INCORPORATED 331,331
77,600 TEXACO INCORPORATED 4,074,000
20,400 TOSCO CORPORATION 636,225
34,200 UNOCAL CORPORATION 1,211,963
83,960,088
--------------
</TABLE>
143
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES - 0.29%
30,800 ALCAN ALUMINUM LIMITED $ 891,275
122,000 ALCOA INCORPORATED 3,088,125
11,500 ALLEGHENY TECHNOLOGIES
INCORPORATED 208,438
18,600 BETHLEHEM STEEL CORPORATION+ 55,800
18,000 ENGELHARD CORPORATION 292,500
11,400 NUCOR CORPORATION 343,425
12,500 USX-US STEEL GROUP
INCORPORATED 189,843
12,100 WORTHINGTON INDUSTRIES
INCORPORATED 113,438
5,182,844
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.21%
9,100 AMERICAN GREETINGS CORPORATION 159,250
12,300 DOW JONES & COMPANY
INCORPORATED 744,150
37,100 GANNETT COMPANY INCORPORATED 1,966,300
10,300 HARCOURT GENERAL INCORPORATED 607,700
10,700 KNIGHT-RIDDER INCORPORATED 543,694
27,400 MCGRAW-HILL COMPANIES
INCORPORATED 1,741,612
7,100 MEREDITH CORPORATION 209,450
23,500 NEW YORK TIMES COMPANY 923,844
17,200 R R DONNELLEY & SONS COMPANY 422,475
43,400 TRIBUNE COMPANY 1,893,325
213,600 VIACOM INCORPORATED CLASS B+ 12,495,600
21,707,400
--------------
RAILROAD TRANSPORTATION - 0.22%
56,900 BURLINGTON NORTHERN SANTA FE
CORPORATION 1,226,906
30,800 CSX CORPORATION 671,825
54,000 NORFOLK SOUTHERN CORPORATION 789,750
34,900 UNION PACIFIC CORPORATION 1,356,738
4,045,219
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.21%
10,200 COOPER TIRE & RUBBER COMPANY 102,638
22,000 GOODYEAR TIRE & RUBBER COMPANY 396,000
37,500 NEWELL RUBBERMAID INCORPORATED 855,468
38,000 NIKE INCORPORATED CLASS B 1,522,375
8,000 REEBOK INTERNATIONAL LIMITED+ 150,500
11,800 SEALED AIR CORPORATION+ 533,950
8,100 TUPPERWARE CORPORATION 145,800
3,706,731
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.08%
15,200 BEAR STEARNS COMPANIES
INCORPORATED 957,600
194,500 CHARLES SCHWAB CORPORATION 6,904,750
34,300 FRANKLIN RESOURCES
INCORPORATED 1,523,949
17,100 LEHMAN BROTHERS HOLDING
INCORPORATED 2,526,525
113,100 MERRILL LYNCH & COMPANY
INCORPORATED 7,464,600
158,500 MORGAN STANLEY DEAN WITTER &
COMPANY 14,492,844
</TABLE>
144
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
20,800 PAINE WEBBER GROUP
INCORPORATED $ 1,417,000
31,600 STILWELL FINANCIAL
INCORPORATED+ 1,374,600
17,100 T ROWE PRICE ASSOCIATES 802,631
37,464,499
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.69%
41,400 CORNING INCORPORATED 12,295,800
20,600 OWENS-ILLINOIS INCORPORATED+ 190,550
12,486,350
--------------
TEXTILE MILL PRODUCTS - 0.01%
4,600 RUSSELL CORPORATION 73,025
2,500 SPRINGS INDUSTRIES
INCORPORATED CLASS A 70,469
143,494
--------------
TOBACCO PRODUCTS - 0.55%
317,200 PHILIP MORRIS COMPANIES
INCORPORATED 9,337,574
22,900 UST INCORPORATED 523,838
9,861,412
--------------
TRANSPORTATION BY AIR - 0.29%
21,100 AMR CORPORATION+ 689,706
17,300 DELTA AIRLINES INCORPORATED 767,688
40,100 FEDEX CORPORATION+ 1,778,033
70,200 SOUTHWEST AIRLINES COMPANY 1,702,350
9,400 US AIRWAYS GROUP INCORPORATED+ 286,113
5,223,890
--------------
TRANSPORTATION EQUIPMENT - 2.16%
14,300 B F GOODRICH COMPANY 560,380
126,400 BOEING COMPANY 7,963,200
12,300 BRUNSWICK CORPORATION 224,475
21,000 DANA CORPORATION 451,500
78,900 DELPHI AUTOMOTIVE SYSTEMS
CORPORATION 1,193,363
266,600 FORD MOTOR COMPANY 6,748,313
28,000 GENERAL DYNAMICS CORPORATION 1,758,750
75,600 GENERAL MOTORS CORPORATION 4,914,000
42,600 HARLEY-DAVIDSON INCORPORATED 2,039,475
112,800 HONEYWELL INTERNATIONAL
INCORPORATED 4,018,500
12,400 ITT INDUSTRIES INCORPORATED 402,225
8,300 NAVISTAR INTERNATIONAL
CORPORATION+ 248,481
10,100 NORTHROP GRUMMAN CORPORATION 917,838
10,800 PACCAR INCORPORATED 400,275
26,100 ROCKWELL INTERNATIONAL
CORPORATION 789,525
20,200 TEXTRON INCORPORATED 931,725
17,500 TRW INCORPORATED 710,938
65,900 UNITED TECHNOLOGIES
CORPORATION 4,563,575
38,836,538
--------------
</TABLE>
145
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TRANSPORTATION SERVICES - 0.03%
18,200 SABRE HOLDINGS CORPORATION $ 526,662
--------------
WATER TRANSPORTATION - 0.11%
83,000 CARNIVAL CORPORATION 2,043,875
--------------
WHOLESALE TRADE-DURABLE GOODS - 0.06%
24,600 GENUINE PARTS COMPANY 468,938
18,400 VISTEON CORPORATION 278,300
13,200 W W GRAINGER INCORPORATED 347,325
1,094,563
--------------
WHOLESALE TRADE-NONDURABLE GOODS - 0.51%
39,100 CARDINAL HEALTH INCORPORATED 3,448,130
70,000 SAFEWAY INCORPORATED+ 3,268,125
18,600 SUPERVALU INCORPORATED 280,163
46,900 SYSCO CORPORATION 2,172,056
9,168,474
--------------
1,778,432,781
TOTAL COMMON STOCK (COST $1,140,253,705)
--------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.10%
TIME DEPOSITS - 1.03%
$18,557,232 CAISSE DES DEPOTS ET
CONSIGNATIONS 6.73% 10/02/00 18,557,232
--------------
U.S. TREASURY BILLS - 0.07%
1,305,000 U.S. TREASURY BILLS 5.89[::] 02/01/01 1,278,234
--------------
19,835,466
TOTAL SHORT-TERM INSTRUMENTS (COST
$19,836,310)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,160,090,015)* 99.95% $1,798,268,247
OTHER ASSETS AND LIABILITIES, NET 0.05 976,073
------- --------------
TOTAL NET ASSETS 100.00% $1,799,244,320
------- --------------
</TABLE>
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,357,854
+ NON-INCOME PRODUCING SECURITIES.
[::] YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $1,163,089,083 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $766,064,839
GROSS UNREALIZED DEPRECIATION (130,885,675)
------------
NET UNREALIZED APPRECIATION $635,179,164
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
146
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 87.69%
AUSTRALIA - 0.24%
$ 148,700 LEND LEASE CORPORATION LIMITED
(FINANCE) $ 1,675,009
------------
AUSTRIA - 0.80%
78,800 BRAMBLES INDUSTRIES LIMITED
(BUSINESS SERVICES) 2,059,432
337,100 BROKEN HILL PROPRIETARY
COMPANY LIMITED (BUSINESS
COMPUTER SERVICES) 3,495,992
5,555,424
------------
CANADA - 3.47%
489,395 BCE INCORPORATED (BUSINESS
SERVICES)+ 11,400,318
163,390 CANADIAN PACIFIC (BUSINESS
SERVICES)+ 4,245,918
290,630 TORONTO-DOMINION BANK
(FINANCE)+ 8,537,528
24,183,764
------------
FINLAND - 2.32%
382,446 SONERA OYJ (BUSINESS
SERVICES)+ 9,719,402
771,811 STORA ENSO OYJ (BUSINESS
COMPUTER SERVICES) 6,463,298
16,182,700
------------
FRANCE - 7.50%
174,980 ALCATEL (CAPITAL EQUIPMENT) 11,194,466
44,999 CANAL PLUS (BUSINESS SERVICES) 6,738,476
53,584 CAP GEMINI SA (BUSINESS
SERVICES) 10,071,444
253,576 SANOFI-SYNTHELABO SA
(WHOLESALE NONDURABLE GOODS) 13,627,067
72,539 TOTAL FINA ELF SA
(COMMUNICATION EQUIPMENT) 10,612,875
52,244,328
------------
<CAPTION>
<C> <S> <C> <C> <C>
GERMANY - 11.69%
22,430 ALLIANZ AG (FINANCE) 7,353,008
192,817 BASF AG (BUSINESS COMPUTER
SERVICES) 6,814,356
210,640 DEUTSCHE BANK AG (FINANCE) 17,472,122
125,740 HYPOVEREINSBANK (BUSINESS
SERVICES) 6,879,266
48,525 MUENCHENER
RUECKVERSICHERUNGS-GESELLSCHAFT
AG (BUSINESS SERVICES) 14,430,202
48,533 SIEMENS AG (MULTI INDUSTRY) 6,241,984
430,796 E.ON AG (MULTI INDUSTRY) 22,200,434
81,391,372
------------
ITALY - 2.36%
3,024,170 BANCA INTESA SPA (FINANCE) 11,661,773
903,818 ENI SPA (ENERGY) 4,785,300
16,447,073
------------
JAPAN - 15.83%
426 AMADA COMPANY LIMITED (CAPITAL
EQUIPMENT) 3,528
50 CREDIT SAISON COMPANY LIMITED
(BUSINESS SERVICES) 1,087
370,000 DAIWA HOUSE INDUSTRY COMPANY
LIMITED (FINANCE) 4,338,238
399 DDI CORPORATION (BUSINESS
SERVICES) 2,621,599
</TABLE>
147
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
JAPAN (continued)
1,469 EAST JAPAN RAILWAY COMPANY
(BUSINESS SERVICES) $ 8,170,174
255,000 FUJI PHOTO FILM COMPANY
(CAPITAL EQUIPMENT) 8,542,477
208,000 FUJITSU LIMITED (BUSINESS
SERVICES) 4,831,390
78,000 HONDA MOTOR COMPANY LIMITED
(CAPITAL EQUIPMENT) 2,872,849
264,000 MATSUSHITA ELECTRIC INDUSTRIAL
COMPANY LIMITED (WHOLESALE
DURABLE GOODS) 6,913,937
1,218,000 MITSUI & COMPANY LIMITED
(MULTI INDUSTRY) 7,608,274
326,000 MITSUI FUDOSAN COMPANY LIMITED
(FINANCE) 4,084,805
810,000 NIPPON EXPRESS COMPANY LIMITED
(CAPITAL EQUIPMENT) 4,325,097
1,050,000 NISSAN MOTOR COMPANY LIMITED
(BUSINESS SERVICES) 6,024,431
134 NIPPON TELEGRAPH & TELEPHONE
CORPORATION (NTT) (BUSINESS
SERVICES) 3,844,161
156,000 OMRON CORPORATION (BUSINESS
SERVICES) 4,107,163
124,200 SONY CORPORATION (CAPITAL
EQUIPMENT) 12,597,003
460,000 SUMITOMO ELECTRIC INDUSTRIES
(CAPITAL EQUIPMENT) 7,939,108
3,353,000 SUMITOMO METAL INDUSTRIES
LIMITED (BUSINESS COMPUTER
SERVICES) 1,954,831
48,000 TDK CORPORATION (WHOLESALE
DURABLE GOODS) 6,085,508
232,000 YAMANOUCHI PHARMACEUTICAL
COMPANY LIMITED (WHOLESALE
DURABLE GOODS) 11,164,169
419,000 YASUDA FIRE & MARINE INSURANCE
COMPANY LIMITED (FINANCE) 2,225,671
110,255,500
------------
KOREA, REPUBLIC OF - 0.57%
22,000 SAMSUNG ELECTRONICS COMPANY
(CAPITAL EQUIPMENT) 3,985,114
------------
NETHERLANDS - 10.07%
211,518 ASM LITHOGRAPHY HOLDING NV
(CAPITAL EQUIPMENT)+ 7,017,980
197,790 HEINEKEN NV (WHOLESALE
NONDURABLE GOODS) 10,995,674
405,917 ING GROEP N.V. 27,036,208
242,808 ROYAL DUTCH PETROLEUM COMPANY
(ENERGY) 14,674,628
448,356 TNT POST GROUP NV (BUSINESS
SERVICES) 10,425,108
70,149,598
------------
SOUTH AFRICA - 0.32%
303,000 SAPPI LIMITED (BUSINESS
COMPUTER SERVICES) 2,244,900
------------
SPAIN - 5.20%
1,010,748 AMADEUS GLOBAL TRAVEL
DISTRIBUTION SA (BUSINESS
SERVICES) 8,945,833
914,312 ENDESA SA (ENERGY) 17,185,058
509,175 TELEFONICA SA (BUSINESS
SERVICES)+ 10,086,962
36,217,853
------------
SWEDEN - 3.25%
182,000 SKANDIA FORSAKRINGS AB
(FINANCE) 3,608,635
1,249,752 TELEFONAKTIEBOLAGET LM
ERICSSON "B" SHARES
(COMMUNICATIONS) 19,006,390
22,615,025
------------
SWITZERLAND - 7.54%
18,193 NOVARTIS AG (CAPITAL
EQUIPMENT) 27,893,042
671 ROCHE HOLDING AG (WHOLESALE
NONDURABLE GOODS) 5,900,813
</TABLE>
148
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SWITZERLAND (continued)
140,567 UBS AG (FINANCE) $ 18,704,965
52,498,820
------------
TAIWAN - 0.02%
21,825 ACER INCORPORATED (CAPITAL
EQUIPMENT) 118,401
------------
UNITED KINGDOM - 16.51%
618,140 AIRTOURS PLC (BUSINESS
SERVICES) 1,969,498
243,522 ARM HOLDINGS PLC (BUSINESS
SERVICES) 2,707,556
640,050 BANK OF SCOTLAND (FINANCE) 5,630,569
194,940 BARCLAYS PLC (FINANCE) 5,395,457
623,190 BLUE CIRCLE INDUSTRIES PLC
(BUSINESS COMPUTER SERVICES) 3,796,113
470,730 BRITISH LAND COMPANY PLC
(FINANCE) 3,098,826
989,350 CADBURY SCHWEPPES PLC (FOOD &
KINDRED PRODUCTS) 5,851,017
891,600 DIAGEO PLC (BUSINESS SERVICES) 7,968,706
576,514 ELECTROCOMPONENTS PLC
(TECHNOLOGIES) 6,201,037
305,320 FUTURES NETWORK PLC (BUSINESS
COMPUTER SERVICES) 2,595,640
611,113 GLAXO WELLCOME PLC
(ELECTRONICS) 18,504,311
226,810 GREAT UNIVERSAL STORES PLC
(BUSINESS SERVICES) 1,441,956
725,090 HAYS PLC (BUSINESS SERVICES) 4,218,500
2,266,005 KINGFISHER PLC (WHOLESALE
NONDURABLE GOODS) 14,808,279
2,241,690 LEGAL & GENERAL GROUP PLC
(FINANCE) 5,435,517
1,580,790 TELEWEST COMMUNICATIONS PLC
(BUSINESS SERVICES) 3,085,102
418,000 TESCO PLC (WHOLESALE
NONDURABLE GOODS) 1,535,763
5,547,353 VODAFONE AIRTOUCH PLC
(COMMUNICATIONS) 20,709,453
114,953,300
------------
610,718,181
TOTAL COMMON STOCK (COST $581,515,597)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 10.12%
$ 2,020,137 WELLS FARGO MONEY MARKET
FUND++ 5.81% 10/2/00 2,020,137
68,455,590 BUSINESS CLASS PLUS 4.66 10/2/00 68,455,590
70,475,727
TOTAL SHORT-TERM INSTRUMENTS (COST
$70,475,727)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $651,991,324)* 97.81% $681,193,908
OTHER ASSETS AND LIABILITIES, NET 2.19 15,220,761
------- ------------
TOTAL NET ASSETS 100.00% $696,414,669
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
++ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY
PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND IS NOT CHARGED ANY
INVESTMENT ADVISORY FEE FOR AMOUNTS INVESTED IN THE WELLS FARGO MONEY
MARKET FUND.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $654,925,614 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $76,936,047
GROSS UNREALIZED DEPRECIATION (50,667,753)
-----------
NET UNREALIZED APPRECIATION $26,268,294
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
149
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 92.41%
AUSTRALIA - 3.51%
$ 286,000 BROKEN HILL PROPRIETARY
COMPANY LIMITED
(MANUFACTURING) $ 2,966,045
1,280,000 FOSTER'S BREWING GROUP LIMITED
(FOOD & KINDRED PRODUCTS) 2,980,721
366,000 NEWS CORPORATION LIMITED
(PRINTING PUBLISHING
INDUSTRIES) 5,153,442
11,100,208
------------
BRAZIL - 0.55%
105,000 ARACRUZ CELULOSE SA ADR (PAPER
PRODUCTS) 1,739,063
------------
FINLAND - 0.96%
76,000 NOKIA CORPORATION ADR
(ELECTRONIC EQUIPMENT) 3,025,750
------------
FRANCE - 12.54%
57,166 AXA (INSURANCE) 7,465,802
21,000 CAP GEMINI SA (BUSINESS
SERVICES) 3,947,079
53,000 GROUPE DANONE (FOOD & KINDRED
PRODUCTS) 7,277,168
115,000 STMICROELECTRONICS NV
(ELECTRONICS) 5,637,141
32,000 SUEZ LYONNAISE DES EAUX
(INDUSTRIAL) 4,961,337
46,000 TOTAL FINA ELF SA (OIL & GAS) 6,730,066
49,000 VIVENDI (BUSINESS SERVICES) 3,640,702
39,659,295
------------
<CAPTION>
<C> <S> <C> <C> <C>
GERMANY - 7.87%
16,000 ALLIANZ AG (INSURANCE) 5,245,124
40,000 DEUTSCHE BANK AG (BANKING) 3,317,912
45,000 INFINEON TECHNOLOGIES AG
(ELECTRONICS)+ 2,162,158
85,000 METRO AG (RETAILERS) 3,480,277
65,000 SGL CARBON AG (CHEMICALS) 4,129,740
25,000 SIEMENS AG (MANUFACTURING) 3,215,330
65,000 VEBA AG (ELECTRIC GAS &
SANITARY) 3,349,679
24,900,220
------------
HONG KONG - 3.47%
350,000 CHEUNG KONG HOLDINGS LIMITED
(REAL ESTATE) 4,230,855
640,000 CITIC PACIFIC LIMITED
(INDUSTRIAL) 2,758,023
285,000 HSBC HOLDINGS PLC (BANKING) 3,984,282
10,973,160
------------
HUNGARY - 0.58%
380,000 MAGYAR TAVKOZLESI RT
(COMMUNICATIONS) 1,824,905
------------
IRELAND - 2.56%
148,000 ELAN COMPANY PLC ADR
(CHEMICALS)+ 8,103,000
------------
ITALY - 3.12%
780,000 BANCA INTESA SPA (BANKING) 3,007,828
503,000 ENI SPA (OIL & GAS) 2,663,153
258,000 SAN PAOLO - IMI SPA (BANKING) 4,193,593
9,864,574
------------
</TABLE>
150
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
JAPAN - 14.08%
250,000 FUJITSU LIMITED (ELECTRONICS) $ 5,806,959
425,000 NIKKO SECURITIES COMPANY
LIMITED (FINANCIAL SERVICES) 3,775,680
450 NIPPON TELEGRAPH & TELEPHONE
CORP. (NTT) (COMMUNICATIONS) 4,414,215
185,000 NOMURA SECURITIES COMPANY
(FINANCIAL SERVICES) 4,023,228
141,000 OMRON CORPORATION
(ELECTRONICS) 3,712,243
5,750 ORACLE CORPORATION JAPAN
(BUSINESS SERVICES) 1,323,894
62,000 SECOM COMPANY LIMITED
(COMMERCIAL) 4,985,934
53,300 SEVEN-ELEVEN JAPAN COMPANY
LIMITED (RETAIL) 3,097,576
26,700 SONY CORPORATION (ELECTRONICS) 2,708,051
67,000 TAKEDA CHEMICAL INDUSTRIES
(CHEMICALS) 4,426,985
90,000 TOYOTA MOTOR CORPORATION
(TRANSPORTATION EQUIPMENT) 3,556,358
125,000 USHIO INCORPORATED
(ELECTRONICS) 2,695,262
44,526,385
------------
KOREA, REPUBLIC OF - 1.02%
96,000 KOREA TELECOM CORPORATION SP
ADR (COMMUNICATIONS) 3,228,000
------------
MEXICO - 4.31%
1,315,000 GRUPO TELEVISA SA DE CV
(COMMUNICATIONS) 3,815,214
2,430,000 TELEFONOS DE MEXICO SA
(COMMUNICATIONS) 6,496,961
1,583,700 WALMART DE MEXICO (RETAIL) 3,313,618
13,625,793
------------
NETHERLANDS - 4.87%
121,600 KONINKLIJKE AHOLD NV (FOOD &
KINDRED PRODUCTS) 3,447,635
165,200 KONINKLIJKE PHILIPS ELECTRONIC
NV (ELECTRONICS) 7,109,511
81,000 ROYAL DUTCH PETROLEUM CO. NY
SHARES (PETROLEUM) 4,854,938
15,412,084
------------
NORWAY - 1.11%
206,000 PETROLEUM GEO-SERVICES (OIL &
GAS)+ 3,494,452
------------
<CAPTION>
PRINCIPAL
<C> <S> <C> <C> <C>
SINGAPORE - 1.63%
$ 467,000 DBS GROUP HOLDINGS LIMITED
(BANKING) 5,152,283
------------
SPAIN - 2.28%
367,000 BANCO SANTANDER SA (BANKING) 4,028,686
160,220 TELEFONICA SA
(COMMUNICATIONS)+ 3,174,023
7,202,709
------------
SWEDEN - 1.56%
332,000 TELFONAKTIEBOLAGET LM ERICSSON
AB ADR (ELECTRONICS) 4,917,750
------------
SWITZERLAND - 6.29%
4,700 ADECCO SA (BUSINESS SERVICES) 3,045,521
1,230 JULIUS BAER HOLDING LIMITED
ZURICH (INVESTMENT OFFICES) 6,379,712
2,600 NESTLE SA (FOOD & KINDRED
PRODUCTS) 5,415,288
3,300 NOVARTIS AG (CHEMICALS) 5,059,476
19,899,997
------------
</TABLE>
151
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TAIWAN - 1.75%
$ 141,000 ASE TEST LIMITED
(ELECTRONICS)+ $ 2,961,000
390,767 RITEK CORPORATION GDR
(INDUSTRIAL MACHINERY)+ 2,581,837
5,542,837
------------
<CAPTION>
SHARES
<C> <S> <C> <C> <C>
UNITED KINGDOM - 18.35%
485,000 AMVESCAP PLC (FINANCIAL
SERVICES) 10,497,944
195,000 ARM HOLDINGS PLC ADR
(ELECTRONICS)+ 6,422,813
445,000 BP AMOCO PLC (OIL & GAS) 3,960,755
235,000 BRITISH TELECOMMUNICATIONS PLC
(COMMUNICATIONS) 2,470,352
375,000 DIAGEO PLC (EATING & DRINKING
PLACES) 3,351,576
1,355,000 INVENSYS PLC (ENGINEERING
ACCOUNTING RESEARCH & RELATED
SERVICES) 2,959,976
70,300 NDS GROUP PLC ADR
(COMMUNICATIONS)+ 5,413,100
418,000 ROYAL BANK OF SCOTLAND GROUP
(BANKING) 8,825,228
175,000 RYANAIR HOLDINGS PLC ADR (AIR
TRANSPORTATION)+ 6,737,500
56,000 SMITHKLINE BEECHAM PLC ADR
(CHEMICALS) 3,843,000
952,504 VODAFONE AIRTOUCH PLC
(COMMUNICATIONS) 3,555,901
58,038,145
------------
292,230,610
TOTAL COMMON STOCK (COST $283,696,879)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 7.65%
REPURCHASE AGREEMENTS - 7.65%
$24,179,804 BANC OF AMERICA NT & SA - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES
(FINANCIAL SERVICES) 6.65% 10/02/00 24,179,804
------------
24,179,804
TOTAL SHORT-TERM INSTRUMENTS (COST
$24,179,804)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $307,876,683)* 100.06% $316,410,414
OTHER ASSETS AND LIABILITIES, NET (0.06) (174,628)
------- ------------
TOTAL NET ASSETS 100.00% $316,235,786
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $307,977,912 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $40,149,614
GROSS UNREALIZED DEPRECIATION (31,717,112)
-----------
NET UNREALIZED APPRECIATION $ 8,432,502
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
152
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 98.46%
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 5.29%
340,100 FASTENAL COMPANY $ 19,598,262
2,857,417 HOME DEPOT INCORPORATED 151,621,690
171,219,952
--------------
BUSINESS SERVICES - 18.94%
964,900 AMERICA ONLINE INCORPORATED+ 51,863,375
947,200 AUTOMATIC DATA PROCESSING
INCORPORATED 63,344,000
444,400 DST SYSTEMS INCORPORATED+ 52,217,000
1,804,500 FIRST DATA CORPORATION 70,488,280
1,019,612 FISERV INCORPORATED+ 61,049,269
3,274,100 IMS HEALTH INCORPORATED 67,937,575
2,403,760 MICROSOFT CORPORATION+ 144,826,540
961,300 ORACLE CORPORATION+ 75,702,375
590,600 SUNGARD DATA SYSTEMS
INCORPORATED+ 25,285,063
612,713,477
--------------
CHEMICALS & ALLIED PRODUCTS - 7.33%
797,300 MERCK & COMPANY INCORPORATED 59,349,019
3,956,625 PFIZER INCORPORATED 177,800,836
237,149,855
--------------
DEPOSITORY INSTITUTIONS - 1.66%
411,900 STATE STREET CORPORATION 53,547,000
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 11.68%
4,461,600 INTEL CORPORATION 185,714,100
2,707,800 NOKIA CORPORATION ADR 107,804,287
5,700,300 TELFONAKTIEBOLAGET LM ERICSSON
AB ADR 84,435,694
377,954,081
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 3.95%
2,431,698 PAYCHEX INCORPORATED 127,664,145
--------------
FOOD & KINDRED PRODUCTS - 1.31%
765,900 COCA-COLA COMPANY 42,220,238
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 16.61%
3,816,000 CISCO SYSTEMS INCORPORATED+ 210,834,000
1,574,700 EMC CORPORATION+ 156,092,138
3,691,500 SOLECTRON CORPORATION+ 170,270,437
537,196,575
--------------
INSURANCE CARRIERS - 5.53%
1,868,911 AMERICAN INTERNATIONAL GROUP
INCORPORATED 178,831,421
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 6.24%
398,500 JDS UNIPHASE CORPORATION+ 37,732,969
</TABLE>
153
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (continued)
3,167,900 MEDTRONIC INCORPORATED $ 164,136,819
201,869,788
--------------
MISCELLANEOUS RETAIL - 2.87%
1,402,300 COSTCO WHOLESALE CORPORATION+ 48,992,856
3,085,275 STAPLES INCORPORATED+ 43,772,339
92,765,195
--------------
OIL & GAS EXTRACTION - 0.74%
292,700 SCHLUMBERGER LIMITED 24,092,869
--------------
PERSONAL SERVICES - 1.67%
1,239,500 CINTAS CORPORATION 53,995,719
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 13.05%
4,843,537 CHARLES SCHWAB CORPORATION 171,945,563
1,542,050 GOLDMAN SACHS GROUP
INCORPORATED 175,697,322
1,588,000 T. ROWE PRICE 74,536,750
422,179,635
--------------
WHOLESALE TRADE-NONDURABLE GOODS - 1.59%
584,400 CARDINAL HEALTH INCORPORATED 51,536,775
--------------
3,184,936,725
TOTAL COMMON STOCK (COST $1,817,531,476)
--------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.58%
REPURCHASE AGREEMENTS - 1.58%
$51,130,678 BANC OF AMERICA NT & SA - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/2/00 51,130,678
--------------
51,130,678
TOTAL SHORT-TERM INSTRUMENTS (COST
$51,130,678)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,868,662,154)* 100.04% $3,236,067,403
OTHER ASSETS AND LIABILITIES, NET (0.04) (1,284,337)
------- --------------
TOTAL NET ASSETS 100.00% $3,234,783,066
------- --------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $1,869,319,620 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $1,512,049,237
GROSS UNREALIZED DEPRECIATION (145,301,454)
-------------
NET UNREALIZED APPRECIATION $1,366,747,783
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
154
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 91.97%
AGRICULTURAL PRODUCTION-CROPS - 0.29%
29,400 CHIQUITA BRANDS INTERNATIONAL
INCORPORATED $ 91,875
16,900 DELTA & PINE LAND COMPANY 434,119
525,994
------------
AGRICULTURAL PRODUCTION-LIVESTOCK & ANIMAL SPECIALTIES - 0.10%
8,100 MICHAEL FOODS INCORPORATED 189,338
------------
AMUSEMENT & RECREATION SERVICES - 0.36%
5,100 ANCHOR GAMING+ 405,769
11,600 PINNACLE ENTERTAINMENT
INCORPORATED+ 252,300
658,069
------------
APPAREL & ACCESSORY STORES - 1.27%
12,700 ANNTAYLOR STORES CORPORATION+ 488,156
5,900 ASHWORTH INCORPORATED+ 46,463
19,600 BURLINGTON COAT FACTORY
WAREHOUSE CORPORATION 280,525
11,000 CATO CORPORATION 137,500
7,700 CHICO'S FAS INCORPORATED+ 261,800
7,900 DRESS BARN INCORPORATED+ 165,900
5,500 FACTORY 2-U STORES
INCORPORATED+ 168,094
8,600 FOOTSTAR INCORPORATED+ 277,888
14,400 GOODY'S FAMILY CLOTHING
INCORPORATED+ 56,700
10,800 GYMBOREE CORPORATION+ 58,725
6,200 J. BAKER INCORPORATED 27,900
14,000 PACIFIC SUNWEAR OF CALIFORNIA
INCORPORATED+ 262,500
6,100 WET SEAL INCORPORATED+ 95,694
2,327,845
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.47%
7,100 CYRK INCORPORATED+ 24,406
2,900 HAGGAR CORPORATION 36,250
13,000 HARTMARX CORPORATION+ 39,000
10,600 KELLWOOD COMPANY 193,450
13,800 NAUTICA ENTERPRISES
INCORPORATED+ 178,538
5,400 OSHKOSH B'GOSH INCORPORATED 82,181
12,000 PHILLIPS-VAN HEUSEN
CORPORATION 123,750
9,900 QUIKSILVER INCORPORATED+ 190,575
868,150
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.39%
23,900 COPART INC+ 331,612
7,400 DISCOUNT AUTO PARTS
INCORPORATED+ 56,888
22,600 O'REILLY AUTOMOTIVE
INCORPORATED+ 330,525
719,025
------------
</TABLE>
155
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.31%
16,100 CENTRAL PARKING CORPORATION $ 318,981
6,800 MIDAS INCORPORATED 95,200
25,600 ROLLINS TRUCK LEASING
CORPORATION 161,600
575,781
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 1.13%
31,987 D.R. HORTON INCORPORATED 549,777
9,400 MDC HOLDINGS INCORPORATED 244,400
3,900 NVR INCORPORATED+ 315,900
5,700 RYLAND GROUP INCORPORATED 176,700
13,100 STANDARD PACIFIC CORPORATION 235,800
16,000 TOLL BROTHERS INCORPORATED+ 550,000
2,072,577
------------
BUSINESS SERVICES - 11.42%
8,700 AARON RENTS INCORPORATED 112,013
10,000 ABM INDUSTRIES INCORPORATED 271,875
6,000 ADMINISTAFF INCORPORATED+ 454,200
9,000 ADVO INCORPORATED+ 297,000
18,400 AMERICAN MANAGEMENT SYSTEMS
INCORPORATED+ 316,250
10,000 ANALYSTS INTERNATIONAL
CORPORATION 72,188
11,500 ASPEN TECHNOLOGY INCORPORATED+ 518,938
17,300 AVANT! CORPORATION+ 315,725
13,500 AVT CORPORATION+ 75,094
9,900 AWARE INCORPORATED+ 381,150
6,100 BARRA INCORPORATED+ 378,581
12,300 BISYS GROUP INCORPORATED+ 950,944
5,400 BROOKTROUT INCORPORATED+ 177,863
24,400 CATALINA MARKETING
CORPORATION+ 918,050
15,000 CERNER CORPORATION+ 696,563
17,800 CHOICEPOINT INCORPORATED+ 816,575
26,300 CIBER INCORPORATED+ 216,975
19,100 COGNEX CORPORATION+ 753,256
9,200 COMPUTER TASK GROUP
INCORPORATED 28,750
17,500 DENDRITE INTERNATIONAL
INCORPORATED+ 469,219
13,000 EDGEWATER TECHNOLOGY
INCORPORATED+ 68,250
21,800 ELOYALTY CORPORATION+ 277,950
18,300 EPICOR SOFTWARE CORPORATION+ 64,050
10,400 EPRESENCE INCORPORATED+ 70,200
14,400 FACTSET RESEARCH SYSTEMS
INCORPORATED 541,440
6,400 FAIR ISAAC AND COMPANY
INCORPORATED 273,200
15,100 FILENET CORPORATION+ 274,631
9,700 GERBER SCIENTIFIC INCORPORATED 83,663
8,800 GREAT PLAINS SOFTWARE INC+ 247,500
8,500 HEIDRICK & STRUGGLES
INTERNATIONAL INCORPORATED+ 436,688
18,000 HENRY (JACK) & ASSOCIATES 780,750
12,700 HNC SOFTWARE INCORPORATED+ 1,039,004
14,300 HYPERION SOLUTIONS
CORPORATION+ 370,013
</TABLE>
156
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
12,800 INFORMATION RESOURCES
INCORPORATED+ $ 87,200
5,200 INSURANCE AUTO AUCTIONS
INCORPORATED+ 84,175
5,400 KRONOS INCORPORATED+ 162,000
18,500 LABOR READY INCORPORATED+ 77,469
7,200 MEMBERWORKS INCORPORATED+ 236,700
16,600 MIDWAY GAMES INCORPORATED+ 116,200
14,500 NATIONAL DATA CORPORATION 475,781
22,200 NATIONAL INSTRUMENTS
CORPORATION+ 979,575
9,500 NETWORK EQUIPMENT TECHNOLOGIES
INCORPORATED+ 101,531
10,100 ON ASSIGNMENT INCORPORATED+ 316,888
14,000 PENTON MEDIA INCORPORATED 385,000
11,600 PHOENIX TECHNOLOGIES LIMITED+ 184,875
15,700 PROGRESS SOFTWARE CORPORATION+ 213,913
9,600 PROJECT SOFTWARE & DEVELOPMENT
INCORPORATED+ 149,250
6,700 QRS CORPORATION+ 100,919
7,500 RADISYS CORPORATION+ 379,219
14,000 REMEDY CORPORATION+ 264,250
17,600 RSA SECURITY INCORPORATED+ 759,000
40,600 S3 INCORPORATED+ 418,688
13,000 SAGA SYSTEMS INCORPORATED+ 136,500
28,200 SPHERION CORPORATION+ 336,638
4,300 SPSS INCORPORATED+ 115,294
6,200 STARTEK INCORPORATED+ 179,800
14,400 SYSTEMS & COMPUTER TECHNOLOGY
CORPORATION+ 252,900
8,500 THQ INCORPORATED+ 197,625
22,000 TRUE NORTH COMMUNICATIONS
INCORPORATED 786,500
13,800 VERITY INCORPORATED+ 492,488
6,700 VOLT INFORMATION SCIENCES
INCORPORATED+ 144,050
20,882,976
------------
CHEMICALS & ALLIED PRODUCTS - 7.63%
26,400 ADVANCED TISSUE SCIENCES
INCORPORATED+ 196,350
20,800 ALLIANCE PHARMACEUTICAL
CORPORATION+ 317,200
17,600 ALPHARMA INCORPORATED 1,075,800
9,800 ARCH CHEMICALS INCORPORATED 178,850
15,200 BARR LABORATORIES
INCORPORATED+ 1,007,950
10,400 BIOMATRIX INCORPORATED+ 182,000
10,000 BRADY CORPORATION 302,500
11,100 CAMBREX CORPORATION 410,700
6,800 CHEMFIRST INCORPORATED 141,525
23,700 COR THERAPEUTICS INCORPORATED+ 1,476,806
19,700 DURA PHARMACEUTICALS
INCORPORATED+ 696,888
12,100 IMMUNE RESPONSE CORPORATION+ 83,188
10,300 LILLY INDUSTIRES INCORPORATED
CLASS A 303,850
13,800 MACDERMID INCORPORATED 289,800
12,900 MEDICIS PHARMACEUTICAL
CORPORATION+ 793,350
11,500 MISSISSIPPI CHEMICAL
CORPORATION 46,000
7,400 NATURES SUNSHINE PRODUCT
INCORPORATED 55,038
</TABLE>
157
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
30,200 NBTY INCORPORATED+ $ 197,244
9,700 NOVEN PHARMACEUTICALS
INCORPORATED+ 414,675
10,500 OM GROUP INCORPORATED 458,063
17,500 OMNOVA SOLUTIONS INCORPORATED 97,344
11,200 PAREXEL INTERNATIONAL
CORPORATION+ 95,200
3,300 PENFORD CORPORATION 51,150
42,700 POLYONE CORPORATION 312,244
18,900 PROTEIN DESIGN LABS
INCORPORATED+ 2,277,450
3,900 QUAKER CHEMICAL CORPORATION 66,300
12,400 SCOTTS COMPANY+ 415,400
23,700 VERTEX PHARMACEUTICALS
INCORPORATED+ 2,002,650
13,945,515
------------
COMMUNICATIONS - 0.32%
9,900 AUDIOVOX CORPORATION+ 149,119
24,600 BRIGHTPOINT INCORPORATED+ 123,769
23,000 GENERAL COMMUNICATIONS
INCORPORATED+ 164,594
34,600 TALK.COM INCORPORATED+ 152,456
589,938
------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS - 0.74%
12,300 APOGEE ENTERPRISES
INCORPORATED 69,956
4,400 CHEMED CORPORATION 139,975
18,500 DYCOM INDUSTRIES INCORPORATED+ 770,063
11,000 INSITUFORM TECHNOLOGIES
CLASS A+ 369,875
1,349,869
------------
DEPOSITORY INSTITUTIONS - 5.68%
10,200 ANCHOR BANCORP WISCONSIN
INCORPORATED 160,013
17,600 CENTURA BANKS INCORPORATED 674,300
11,700 CHITTENDEN CORPORATION 300,544
13,700 COMMERCE BANCORP INCORPORATED 797,169
24,900 COMMERCIAL FEDERAL CORPORATION 476,213
19,800 COMMUNITY FIRST BANKSHARES
INCORPORATED 347,738
23,000 CULLEN/FROST BANKERS
INCORPORATED 747,500
12,400 DOWNEY FINANCIAL CORPORATION 489,800
11,800 FIRST BANCORP/PUERTO RICO 288,363
18,100 FIRST MIDWEST BANCORP
INCORPORATED 481,913
5,100 GBC BANCORP 173,719
21,400 HUDSON UNITED BANCORP 591,175
19,500 IMPERIAL BANCORP+ 372,938
13,200 INVESTORS FINANCIAL SERVICES
CORPORATION 833,245
10,200 MAF BANCORP INCORPORATED 253,725
12,200 PROVIDENT BANKSHARES
CORPORATION 204,350
9,100 QUEENS COUNTY BANCORP
INCORPORATED 262,763
12,500 RIGGS NATIONAL CORPORATION 153,125
19,000 SOUTH FINANCIAL GROUP
INCORPORATED 239,875
12,600 SOUTHWEST BANCORPORATION OF
TEXAS INCORPORATED+ 411,863
</TABLE>
158
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS (continued)
16,000 STATEN ISLAND BANCORP
INCORPORATED $ 320,000
17,300 SUSQUEHANNA BANCSHARES
INCORPORATED 263,825
23,600 TRUSTCO BANK CORP NY 290,575
18,500 UNITED BANKSHARES INCORPORATED 363,063
23,000 WASHINGTON FEDERAL
INCORPORATED 523,250
10,000 WHITNEY HOLDING CORPORATION 363,125
10,384,169
------------
EATING & DRINKING PLACES - 1.59%
11,800 APPLEBEE'S INTERNATIONAL
INCORPORATED 271,400
11,900 CEC ENTERTAINMENT
INCORPORATED+ 380,800
13,600 CHEESECAKE FACTORY+ 588,200
22,300 CKE RESTAURANTS INCORPORATED 68,294
12,900 CONSOLIDATED PRODUCTS
INCORPORATED+ 103,200
8,800 IHOP CORPORATION+ 168,300
16,900 JACK IN THE BOX INCORPORATED+ 362,293
9,800 LANDRY'S SEAFOOD RESTAURANTS
INCORPORATED 66,763
9,900 LUBY'S INCORPORATED 52,594
5,600 MORRISON MANAGEMENT
SPECIALISTS INCORPORATED 165,480
27,000 RUBY TUESDAY INCORPORATED 303,750
14,300 RYAN'S FAMILY STEAK HOUSES
INCORPORATED+ 109,931
7,700 SONIC CORPORATION+ 242,550
5,100 TACO CABANA INCORPORATED
CLASS A+ 21,994
2,905,549
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.22%
4,000 AMERICAN STATES WATER COMPANY 121,000
14,000 ATMOS ENERGY CORPORATION 288,750
20,800 AVISTA CORPORATION 468,000
3,300 BANGOR HYDRO-ELECTRIC COMPANY 79,819
4,900 CASCADE NATURAL GAS
CORPORATION 85,750
5,100 CENTRAL VERMONT PUBLIC SERVICE
CORPORATION 51,956
7,400 CH ENERGY GROUP INCORPORATED 295,075
13,300 ENERGEN CORPORATION 395,675
2,400 GREEN MOUNTAIN POWER
CORPORATION 18,150
8,300 LACLEDE GAS COMPANY 179,488
7,800 NEW JERSEY RESOURCES
CORPORATION 316,875
11,100 NORTHWEST NATURAL GAS COMPANY 252,525
10,200 NORTHWESTERN CORPORATION 198,900
5,700 NUI CORPORATION 172,069
18,100 PHILADELPHIA SUBURBAN
CORPORATION 419,694
14,000 PIEDMONT NATURAL GAS COMPANY 428,750
15,500 RGS ENERGY GROUP INCORPORATED 436,905
21,900 SOUTHERN UNION COMPANY+ 433,894
13,900 SOUTHWEST GAS CORPORATION 291,031
11,100 SOUTHWESTERN ENERGY COMPANY 97,125
12,000 UGI CORPORATION 291,000
6,300 UIL HOLDINGS CORPORATION 324,056
</TABLE>
159
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
14,300 UNISOURCE ENERGY CORPORATION $ 234,163
5,880,650
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 11.76%
10,600 ACTEL CORPORATION+ 380,938
16,500 ADAPTIVE BROADBAND
CORPORATION+ 321,750
13,000 AEROFLEX INCORPORATED+ 632,125
12,300 ALLEN TELECOM INCORPORATED+ 208,331
18,200 ALLIANCE SEMICONDUCTOR
CORPORATION+ 361,725
18,900 ALPHA INDUSTRIES INCORPORATED+ 643,781
10,200 APPLICA INCORPORATED+ 63,113
16,700 ARTESYN TECHNOLOGIES
INCORPORATED+ 486,388
22,800 ASPECT COMMUNICATIONS
CORPORATION+ 470,250
9,300 AXT INCORPORATED+ 388,856
14,900 BALDOR ELECTRIC COMPANY 302,656
8,400 BENCHMARK ELECTRONICS
INCORPORATED+ 436,800
12,100 BMC INDUSTRIES INCORPORATED 83,188
11,600 C&D TECHNOLOGIES INCORPORATED 658,300
14,900 C-COR.NET CORPORATION+ 228,156
19,000 CABLE DESIGN TECHNOLOGIES+ 461,938
5,000 CACI INTERNATIONAL
INCORPORATED+ 107,188
13,300 CHECKPOINT SYSTEMS
INCORPORATED+ 100,581
7,200 CONCORD COMMUNICATIONS
INCORPORATED+ 190,800
12,200 CTS CORPORATION 617,625
26,700 DALLAS SEMICONDUCTOR
CORPORATION 877,763
5,900 DAVOX CORPORATION+ 59,369
9,800 DIONEX CORPORATION+ 270,725
32,400 DMC STRATEX NETWORKS
INCORPORATED+ 520,425
11,800 ELECTRO SCIENTIFIC INDUSTRIES
INCORPORATED+ 414,475
19,100 ESS TECHNOLOGY INCORPORATED+ 273,369
16,700 GENERAL SEMICONDUCTOR
INCORPORATED+ 203,531
15,000 HARMAN INTERNATIONAL
INDUSTRIES INCORPORATED 586,500
9,900 HELIX TECHNOLOGY CORPORATION 295,763
11,000 HUTCHINSON TECHNOLOGY
INCORPORATED+ 231,688
6,600 INNOVEX INCORPORATED 89,925
11,700 INTER-TEL INCORPORATED 133,088
14,500 INTERVOICE-BRITE INCORPORATED+ 152,250
6,700 ITRON INCORPORATED+ 41,038
38,600 KEMET CORPORATION+ 1,066,320
9,400 MERCURY COMPUTER SYSTEMS
INCORPORATED+ 261,438
15,700 METHODE ELECTRONICS
INCORPORATED 695,706
3,100 NATIONAL PRESTO INDUSTRIES
INCORPORATED 92,806
34,100 P-COM INCORPORATED+ 225,913
4,600 PARK ELECTROCHEMICAL
CORPORATION 255,875
12,400 PHOTRONICS INCORPORATED+ 270,475
21,600 PLANTRONICS INCORPORATED+ 820,800
16,300 PLEXUS CORPORATION+ 1,149,144
11,300 PROXIM INCORPORATED+ 502,850
</TABLE>
160
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
27,400 READ-RITE CORPORATION+ $ 308,250
6,600 ROYAL APPLIANCE MANUFACTURING
COMPANY+ 39,188
5,000 SALTON INCORPORATED+ 161,563
15,000 SILICON VALLEY GROUP+ 394,688
15,300 SLI INCORPORATED 111,881
13,100 SPEEDFAM INTERNATIONAL
INCORPORATED+ 149,831
7,000 STANDARD MICROSYSTEMS
CORPORATION+ 152,688
10,000 SYMMETRICOM INCORPORATED+ 156,250
7,200 TECHNITROL INCORPORATED 727,200
8,100 TELCOM SEMICONDUCTOR
INCORPORATED+ 120,488
13,600 TELEDYNE TECHNOLOGIES
INCORPORATED+ 396,100
6,800 THOMAS INDUSTRIES INCORPORATED 137,700
9,500 THREE-FIVE SYSTEMS
INCORPORATED+ 277,875
16,700 VALENCE TECHNOLOGY
INCORPORATED+ 288,075
9,600 VIASAT INCORPORATED+ 214,800
18,600 VICOR CORPORATION+ 1,009,050
7,300 ZIXIT CORPORATION+ 222,650
21,504,002
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 2.07%
18,700 BILLING INFORMATION CONCEPTS+ 59,606
24,100 BIO-TECHNOLOGY GENERAL
CORPORATION*+ 275,644
8,400 CDI CORPORATION+ 134,400
15,400 CEPHALON INCORPORATED+ 746,900
6,800 F.Y.I. INCORPORATED+ 254,150
9,100 FRANKLIN COVEY COMPANY+ 66,544
9,300 MAXIMUS INCORPORATED+ 205,763
15,100 ORGANOGENESIS INCORPORATED+ 221,970
11,100 PHARMACEUTICAL PRODUCT
DEVELOPMENT INCORPORATED+ 294,844
21,900 PROFIT RECOVERY GROUP
INTERNATIONAL INCORPORATED+ 216,263
16,200 REGENERON PHARMACEUTICALS
INCORPORATED+ 528,523
17,500 TETRA TECH INCORPORATED+ 499,844
7,200 URS CORPORATION+ 95,400
40,800 US ONCOLOGY INCORPORATED+ 184,875
3,784,726
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
1.23%
4,000 ALLIANT TECHSYSTEMS
INCORPORATED+ 328,500
15,800 APTARGROUP INCORPORATED 378,213
2,800 BUTLER MANUFACTURING COMPANY 64,225
13,100 GRIFFON CORPORATION+ 99,069
3,700 INSTEEL INDUSTRIES
INCORPORATED 15,031
19,800 MASCOTECH INCORPORATED 327,938
6,600 MATERIAL SCIENCES CORPORATION+ 75,075
7,900 SHAW GROUP INCORPORATED+ 556,950
11,900 STURM, RUGER & COMPANY
INCORPORATED 97,431
20,900 TOWER AUTOMOTIVE INCORPORATED+ 195,938
</TABLE>
161
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT (continued)
11,700 WATTS INDUSTRIES INCORPORATED $ 117,000
2,255,370
------------
FOOD & KINDRED PRODUCTS - 1.39%
4,300 AGRIBRANDS INTERNATIONAL
INCORPORATED+ 187,588
8,100 AMERICAN ITALIAN PASTA
COMPANY+ 155,419
3,900 COCA-COLA BOTTLING COMPANY 163,556
8,100 CONSTELLATION BRANDS
INCORPORATED+ 439,931
15,500 CORN PRODUCTS INTERNATIONAL
INCORPORATED 352,625
18,700 EARTHGRAINS COMPANY 344,781
3,800 J&J SNACK FOODS CORPORATION+ 49,163
13,200 RALCORP HOLDINGS INCORPORATED+ 186,450
24,900 SMITHFIELD FOODS INCORPORATED+ 653,625
2,533,138
------------
FOOD STORES - 0.51%
16,900 GREAT ATLANTIC & PACIFIC TEA
COMPANY INCORPORATED 186,956
5,500 PANERA BREAD COMPANY CLASS A+ 114,813
11,600 WHOLE FOODS MARKET
INCORPORATED+ 622,775
924,544
------------
FURNITURE & FIXTURES - 0.52%
5,200 BASSETT FURNITURE INDUSTRIES
INCORPORATED 73,775
17,500 ETHAN ALLEN INTERIORS
INCORPORATED 495,469
26,800 LA-Z-BOY INCORPORATED 390,275
959,519
------------
GENERAL MERCHANDISE STORES - 0.81%
14,900 99 CENTS ONLY STORES+ 747,793
13,000 AMES DEPARTMENT STORES
INCORPORATED+ 75,156
21,800 CASEY'S GENERAL STORES
INCORPORATED 283,400
5,600 GOTTSCHALKS INCORPORATED+ 34,300
13,100 SHOPKO STORES INCORPORATED+ 135,913
19,000 STEIN MART INCORPORATED+ 205,438
1,482,000
------------
HEALTH SERVICES - 2.63%
26,100 COVENTRY HEALTH CARE
INCORPORATED+ 394,763
3,600 CURATIVE HEALTH SERVICES
INCORPORATED+ 19,575
11,300 ENZO BIOCHEM INCORPORATED+ 548,050
29,400 HOOPER HOLMES INCORPORATED 279,594
15,300 IDEXX LABORATORIES
INCORPORATED+ 409,275
11,200 LASER VISION CENTERS
INCORPORATED+ 48,650
21,400 ORTHODONTIC CENTERS OF AMERICA
INCORPORATED+ 712,888
7,000 PEDIATRIX MEDICAL GROUP
INCORPORATED*+ 90,563
9,000 PROVINCE HEALTHCARE COMPANY+ 359,438
20,300 RENAL CARE GROUP INCORPORATED+ 378,088
</TABLE>
162
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HEALTH SERVICES (continued)
12,000 SIERRA HEALTH SERVICES
INCORPORATED+ $ 56,250
10,600 SYNCOR INTERNATIONAL
CORPORATION+ 390,213
13,200 UNIVERSAL HEALTH SERVICES
INCORPORATED+ 1,130,247
4,817,594
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS - 0.22%
18,000 FOSTER WHEELER CORPORATION 130,500
23,100 WASHINGTON GROUP INTERNATIONAL
INCORPORATED+ 264,206
394,706
------------
HOLDING & OTHER INVESTMENT OFFICES - 0.05%
5,300 4KIDS ENTERTAINMENT
INCORPORATED+ 89,438
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.73%
14,800 BOMBAY COMPANY INCORPORATED+ 36,075
9,100 COST PLUS INCORPORATED+ 274,138
17,600 LINENS 'N THINGS INCORPORATED+ 448,800
42,600 PIER 1 IMPORTS INCORPORATED 577,762
1,336,775
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.34%
18,000 AZTAR CORPORATION+ 276,750
13,000 MARCUS CORPORATION 136,500
19,900 PRIME HOSPITALITY CORPORATION+ 201,488
614,738
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.75%
16,400 ANIXTER INTERNATIONAL
INCORPORATED+ 477,650
17,300 APW LIMITED+ 843,375
8,500 ASTEC INDUSTRIES INCORPORATED+ 92,969
13,100 AUSPEX SYSTEMS INCORPORATED+ 162,113
8,300 BLACK BOX CORPORATION+ 386,988
21,700 C-CUBE MICROSYSTEMS
INCORPORATED+ 444,850
7,600 DRIL-QUIP INCORPORATED+ 303,050
9,200 ELECTROGLAS INCORPORATED+ 156,975
10,200 EXABYTE CORPORATION+ 114,750
15,700 FEDDERS CORPORATION 60,838
6,500 FLOW INTERNATIONAL
CORPORATION+ 70,688
6,800 GARDNER DENVER INCORPORATED+ 110,500
8,900 GRACO INCORPORATED 287,025
13,300 IDEX CORPORATION 371,569
21,500 KULICKE & SOFFA INDUSTRIES
INCORPORATED+ 286,219
24,800 LENNOX INTERNATIONAL
INCORPORATED 232,500
5,200 LINDSAY MANUFACTURING COMPANY 96,850
10,900 MANITOWOC COMPANY INCORPORATED 209,825
7,600 MICRO SYSTEMS INCORPORATED+ 114,475
15,400 MILACRON INCORPORATED 205,010
10,900 NYFIX INCORPORATED+ 487,775
19,400 PAXAR CORPORATION+ 173,388
</TABLE>
163
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
4,800 ROBBINS & MYERS INCORPORATED $ 113,400
7,500 SCOTT TECHNOLOGIES
INCORPORATED+ 132,891
5,600 SPS TECHNOLOGIES INCORPORATED+ 271,600
7,700 TELXON CORPORATION 134,750
5,600 TORO COMPANY 176,400
9,300 ULTRATECH STEPPER
INCORPORATED+ 149,381
10,300 VALMONT INDUSTRIES
INCORPORATED 204,713
13,900 VARIAN MEDICAL SYSTEMS
INCORPORATED+ 628,105
13,700 VISUAL NETWORKS INCORPORATED+ 89,906
11,900 WATSCO INCORPORATED 122,451
13,200 XIRCOM INCORPORATED+ 333,300
13,400 ZEBRA TECHNOLOGIES
CORPORATION+ 644,038
8,690,317
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.74%
16,800 ARTHUR J. GALLAGHER & COMPANY 993,300
5,700 E.W. BLANCH HOLDINGS
INCORPORATED 118,275
5,800 HILB ROGAL HAMILTON 241,788
1,353,363
------------
INSURANCE CARRIERS - 2.84%
11,100 ADVANCE PARADIGM INCORPORATED+ 468,281
8,900 DELPHI FINANCIAL GROUP
CLASS A+ 360,450
16,800 ENHANCE FINANCIAL SERVICES
GROUP INCORPORATED 218,400
29,800 FIDELITY NATIONAL FINANCIAL
INCORPORATED 737,550
28,000 FIRST AMERICAN CORPORATION 584,500
30,900 FREMONT GENERAL CORPORATION 106,219
20,900 MID ATLANTIC MEDICAL SERVICES
INCORPORATED+ 316,113
18,200 MUTUAL RISK MANAGEMENT LIMITED 399,263
16,600 RADIAN GROUP INCORPORATED 1,120,498
4,300 RLI CORPORATION 165,819
4,100 SCPIE HOLDINGS INCORPORATED 82,513
11,300 SELECTIVE INSURANCE GROUP
INCORPORATED 201,988
14,100 TRENWICK GROUP LIMITED+ 267,900
7,600 ZENITH NATIONAL INSURANCE
CORPORATION 166,250
5,195,744
------------
LEATHER & LEATHER PRODUCTS - 0.59%
8,000 BROWN SHOE COMPANY
INCORPORATED 73,500
4,500 K-SWISS INCORPORATED 101,250
17,700 TIMBERLAND COMPANY+ 725,700
18,300 WOLVERINE WORLD WIDE
INCORPORATED 170,419
1,070,869
------------
LEGAL SERVICES - 0.17%
9,900 PRE-PAID LEGAL SERVICES
INCORPORATED+ 319,894
------------
</TABLE>
164
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.14%
20,900 CHAMPION ENTERPRISES
INCORPORATED+ $ 88,825
5,400 DELTIC TIMBER CORPORATION 91,462
3,800 SKYLINE CORPORATION 80,988
261,275
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 4.38%
9,300 ADAC LABORATORIES+ 193,556
3,700 AMCAST INDUSTRIAL CORPORATION 34,919
5,700 ANALOGIC CORPORATION 219,094
11,900 COHERENT INCORPORATED+ 809,200
8,900 COHU INCORPORATED 136,281
6,800 CONMED CORPORATION+ 93,075
6,300 COOPER COMPANIES INCORPORATED 222,863
7,200 CUNO INCORPORATED+ 160,200
11,600 CYGNUS INCORPORATED+ 127,600
6,600 DATASCOPE CORPORATION 221,100
6,100 DIAGNOSTIC PRODUCTS
CORPORATION 327,113
7,700 ESTERLINE TECHNOLOGIES
CORPORATION+ 151,594
14,200 FOSSIL INCORPORATED+ 189,038
8,300 HANGER ORTHOPEDIC GROUP
INCORPORATED+ 31,125
6,800 HOLOGIC INCORPORATED+ 50,575
22,300 INPUT/OUTPUT INCORPORATED+ 214,638
6,000 INTERMAGNETICS GENERAL
CORPORATION+ 159,750
13,300 INVACARE CORPORATION 427,263
7,200 IONICS INCORPORATED+ 153,450
7,200 MEADE INSTRUMENTS CORPORATION+ 145,350
10,300 MENTOR CORPORATION 162,225
2,600 NASHUA CORPORATION 21,938
6,200 OSTEOTECH INCORPORATED+ 59,288
22,100 PINNACLE SYSTEMS INCORPORATED+ 248,625
5,800 POLYMEDICA CORPORATION+ 248,675
13,500 RESMED INCORPORATED+ 421,875
13,000 RESPIRONICS INCORPORATED+ 216,938
15,500 ROBOTIC VISION SYSTEMS
INCORPORATED+ 92,516
13,500 ROPER INDUSTRIES INCORPORATED 448,031
10,700 SOLA INTERNATIONAL
INCORPORATED+ 68,881
4,200 SPACELABS MEDICAL
INCORPORATED+ 41,475
9,800 SUNRISE MEDICAL INCORPORATED+ 58,800
9,100 TECHNE CORPORATION+ 1,019,195
13,000 THERAGENICS CORPORATION+ 84,500
10,300 TRIMBLE NAVIGATION LIMITED.+ 230,463
5,400 VITAL SIGNS INCORPORATED 143,100
7,800 WESLEY JESSEN VISIONCARE
INCORPORATED+ 299,813
9,400 X-RITE INCORPORATED 82,250
8,016,372
------------
METAL MINING - 0.34%
7,200 BRUSH ENGINEERED MATERIALS
INCORPORATED 155,700
</TABLE>
165
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
METAL MINING (continued)
17,000 STILLWATER MINING COMPANY+ $ 460,190
615,890
------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.18%
8,200 FLORIDA ROCK INDUSTRIES
INCORPORATED 323,388
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.26%
7,500 CROSS (A.T.) COMPANY+ 40,313
8,600 JAKKS PACIFIC INCORPORATED+ 80,894
7,900 K2 INCORPORATED+ 70,606
7,000 LYDALL INCORPORATED+ 80,063
8,700 MAYOR'S JEWELERS INCORPORATED+ 32,625
8,800 RUSS BERRIE & COMPANY
INCORPORATED 173,799
478,300
------------
MISCELLANEOUS RETAIL - 0.79%
7,200 ACTION PERFORMANCE COMPANIES
INCORPORATED+ 24,750
8,000 BOOKS-A-MILLION INCORPORATED+ 21,000
11,400 CASH AMERICA INTERNATIONAL
INCORPORATED 83,363
2,500 DAMARK INTERNATIONAL
INCORPORATED CLASS A+ 30,625
8,000 HANCOCK FABRICS INCORPORATED 40,000
8,000 JO-ANN STORES INCORPORATED+ 58,000
3,800 LILLIAN VERNON CORPORATION 37,050
14,700 MICHAELS STORES INCORPORATED+ 588,000
6,300 THOMAS NELSON INCORPORATED 51,581
15,600 ZALE CORPORATION+ 506,025
1,440,394
------------
MOTION PICTURES - 0.08%
11,100 AVID TECHNOLOGY INCORPORATED+ 155,400
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.08%
14,300 AMERICAN FREIGHTWAYS
CORPORATION+ 227,013
8,700 ARKANSAS BEST CORPORATION+ 133,763
9,300 FORWARD AIR CORPORATION+ 327,241
7,200 FROZEN FOOD EXPRESS INDUSTRIES
INCORPORATED 18,450
11,200 HEARTLAND EXPRESS
INCORPORATED+ 194,600
3,900 LANDSTAR SYSTEM INCORPORATED+ 174,038
4,900 M.S. CARRIERS INCORPORATED+ 76,563
8,500 ROADWAY EXPRESS INCORPORATED 152,469
11,600 USFREIGHTWAYS CORPORATION 263,175
20,800 WERNER ENTERPRISES
INCORPORATED 244,400
10,900 YELLOW CORPORATION+ 164,863
1,976,575
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.53%
33,500 AMERICREDIT CORPORATION+ 965,219
------------
</TABLE>
166
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION - 4.66%
6,100 ATWOOD OCEANICS INCORPORATED+ $ 254,294
14,600 BARRETT RESOURCES CORPORATION+ 552,063
12,800 CABOT OIL AND GAS CORPORATION 260,800
6,900 CAL DIVE INTERNATIONAL
INCORPORATED+ 394,594
30,600 CROSS TIMBERS OIL COMPANY 587,138
8,100 HS RESOURCES INCORPORATED+ 272,363
19,100 LOUIS DREYFUS NATURAL GAS
CORPORATION+ 756,838
18,800 NEWFIELD EXPLORATION COMPANY+ 877,725
7,800 NUEVO ENERGY COMPANY+ 143,325
10,100 OCEANEERING INTERNATIONAL
INCORPORATED+ 167,913
7,500 PATINA OIL & GAS CORPORATION 150,000
7,900 PLAINS RESOURCES INCORPORATED+ 149,113
17,800 POGO PRODUCING COMPANY 451,675
29,000 PRIDE INTERNATIONAL
INCORPORATED+ 768,500
9,500 REMINGTON OIL & GAS
CORPORATION+ 99,156
7,500 SEACOR SMIT INCORPORATED+ 349,688
10,600 SEITEL INCORPORATED+ 152,375
10,000 ST. MARY LAND & EXPLORATION
COMPANY 230,625
8,200 STONE ENERGY CORPORATION+ 451,000
9,800 SWIFT ENERGY COMPANY+ 407,313
6,000 TETRA TECHNOLOGIES
INCORPORATED+ 91,125
10,900 VERITAS DGC INCORPORATED+ 315,419
27,700 VINTAGE PETROLEUM INCORPORATED 630,171
8,513,213
------------
PAPER & ALLIED PRODUCTS - 0.47%
15,400 BUCKEYE TECHNOLOGIES
INCORPORATED+ 319,550
11,400 CARAUSTAR INDUSTRIES
INCORPORATED 126,112
6,800 CHESAPEAKE CORPORATION 130,900
6,200 POPE & TALBOT INCORPORATED 88,738
5,200 REPUBLIC GROUP INCORPORATED 95,550
6,800 SCHWEITZER-MAUDUIT
INTERNATIONAL INCORPORATED 90,950
851,800
------------
PERSONAL SERVICES - 0.35%
3,800 ANGELICA CORPORATION 36,813
3,400 CPI CORPORATION 72,250
9,100 G & K SERVICES INCORPORATED 255,368
18,000 REGIS CORPORATION 270,000
634,431
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.15%
8,700 ELCOR CORPORATION 126,150
6,800 WD-40 COMPANY 144,500
270,650
------------
PRIMARY METAL INDUSTRIES - 1.05%
10,800 BELDEN INCORPORATED 255,150
</TABLE>
167
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES (continued)
13,700 BIRMINGHAM STEEL CORPORATION $ 36,819
7,300 COMMONWEALTH INDUSTRIES
INCORPORATED 40,606
6,800 IMCO RECYCLING INCORPORATED 40,800
11,200 INTERMET CORPORATION 81,200
15,200 MUELLER INDUSTRIES
INCORPORATED+ 341,050
6,000 QUANEX CORPORATION 114,375
9,200 RTI INTERNATIONAL METALS+ 132,825
20,600 STEEL DYNAMICS INCORPORATED+ 189,263
4,700 STEEL TECHNOLOGIES
INCORPORATED 29,669
9,300 TEXAS INDUSTRIES INCORPORATED 296,436
16,800 TREDEGAR CORPORATION 290,850
5,300 WOLVERINE TUBE INCORPORATED+ 78,838
1,927,881
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.28%
14,800 BOWNE & COMPANY INCORPORATED 144,300
5,800 CONSOLIDATED GRAPHICS
INCORPORATED+ 68,150
12,600 JOHN H. HARLAND COMPANY 192,938
6,000 NEW ENGLAND BUSINESS SERVICE
INCORPORATED 108,750
514,138
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.03%
9,100 TITAN INTERNATIONAL
INCORPORATED 52,325
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.78%
5,700 DAIN RAUSCHER CORPORATION 530,100
15,600 EATON VANCE CORPORATION 795,600
10,700 JEFFERIES GROUP INCORPORATED 287,563
12,600 MORGAN KEEGAN INCORPORATED 220,500
9,300 NATIONAL DISCOUNT BROKERS
GROUP INCORPORATED+ 287,719
20,400 RAYMOND JAMES FINANCIAL
INCORPORATED 671,924
7,000 SOUTHWEST SECURITIES GROUP
INCORPORATED 204,750
10,100 TUCKER ANTHONY SUTRO
CORPORATION 256,288
3,254,444
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.62%
32,700 GENTEX CORPORATION+ 817,500
6,700 LIBBEY INCORPORATED 208,537
5,500 STANDEX INTERNATIONAL
CORPORATION 106,219
1,132,256
------------
TEXTILE MILL PRODUCTS - 0.31%
11,300 CONE MILLS CORPORATION+ 50,850
5,100 DIXIE GROUP INCORPORATED 19,763
8,500 GUILFORD MILLS INCORPORATED 15,938
22,600 INTERFACE INCORPORATED 180,094
3,400 OXFORD INDUSTRIES INCORPORATED 60,775
</TABLE>
168
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TEXTILE MILL PRODUCTS (continued)
9,700 TRIARC COMPANIES INCORPORATED+ $ 238,861
566,281
------------
TRANSPORTATION BY AIR - 0.91%
9,300 ATLANTIC COAST AIRLINES
HOLDINGS+ 299,344
12,600 EGL INCORPORATED+ 381,150
14,300 MESA AIR GROUP INCORPORATED+ 78,203
6,200 MIDWEST EXPRESS HOLDINGS
INCORPORATED+ 124,775
9,300 OFFSHORE LOGISTICS
INCORPORATED+ 166,238
12,100 SKYWEST INCORPORATED 620,124
1,669,834
------------
TRANSPORTATION EQUIPMENT - 1.89%
10,300 A. O. SMITH CORPORATION 129,394
11,900 AAR CORPORATION 136,106
10,700 ARTIC CAT INCORPORATED 135,088
11,100 BE AEROSPACE INCORPORATED+ 178,988
10,700 CLARCOR INCORPORATED 208,650
6,900 COACHMEN INDUSTRIES
INCORPORATED 72,019
14,500 FLEETWOOD ENTERPRISES
INCORPORATED 196,656
21,500 FRIEDE GOLDMAN HALTER
INCORPORATED+ 151,844
18,700 GENCORP INCORPORATED 151,938
9,500 GROUP 1 AUTOMOTIVE
INCORPORATED+ 103,313
4,500 HUFFY CORPORATION 47,250
19,200 JLG INDUSTRIES INCORPORATED 234,000
9,800 KROLL-O'GARA COMPANY+ 58,800
8,400 MONACO COACH CORPORATION+ 138,600
16,600 ORBITAL SCIENCES CORPORATION+ 139,025
7,300 OSHKOSH TRUCK CORPORATION 282,875
10,600 POLARIS INDUSTRIES
INCORPORATED 373,647
9,300 REGAL-BELOIT CORPORATION 157,728
7,900 SIMPSON INDUSTRIES
INCORPORATED 96,775
5,000 SPARTAN MOTORS INCORPORATED 15,625
5,500 STANDARD MOTOR PRODUCTS
INCORPORATED 44,000
15,500 TENNECO AUTOMOTIVE
INCORPORATED 80,406
5,300 THOR INDUSTRIES INCORPORATED 122,563
10,100 WABASH NATIONAL CORPORATION 92,163
9,400 WINNEBAGO INDUSTRIES
INCORPORATED 117,500
3,464,953
------------
TRANSPORTATION SERVICES - 0.91%
7,800 CIRCLE INTERNATIONAL GROUP
INCORPORATED 235,950
22,600 EXPEDITORS INTERNATIONAL OF
WASHINGTON INCORPORATED 1,018,413
16,200 FRITZ COMPANIES INCORPORATED+ 194,400
10,800 PEGASUS SOLUTIONS
INCORPORATED+ 211,275
1,660,038
------------
</TABLE>
169
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
WATER TRANSPORTATION - 0.12%
10,800 KIRBY CORPORATION+ $ 211,950
------------
WHOLESALE TRADE-DURABLE GOODS - 2.36%
9,000 APPLIED INDUSTRIAL
TECHNOLOGIES INCORPORATED 155,813
8,200 BARNES GROUP INCORPORATED 150,675
5,600 BUILDING MATERIALS HOLDING
CORPORATION+ 49,700
6,200 CASTLE (A.M.) & COMPANY 59,675
6,300 COMMERCIAL METALS COMPANY 160,650
6,300 DEPARTMENT 56 INCORPORATED+ 83,081
6,700 DIGI INTERNATIONAL
INCORPORATED+ 52,763
28,300 HA-LO INDUSTRIES INCORPORATED+ 113,200
10,400 HUGHES SUPPLY INCORPORATED 204,048
18,000 INSIGHT ENTERPRISES
INCORPORATED+ 490,500
10,200 KAMAN CORPORATION CLASS A 128,775
12,600 KENT ELECTRONICS CORPORATION+ 300,825
4,300 LAWSON PRODUCTS INCORPORATED 104,006
14,600 OWENS & MINOR INCORPORATED
HOLDING COMPANY 229,950
29,700 PATTERSON DENTAL COMPANY+ 668,248
23,500 PEP BOYS - MANNY, MOE & JACK 117,500
12,000 PIONEER-STANDARD ELECTRONICS
INCORPORATED 162,750
12,300 RELIANCE STEEL & ALUMINUM
COMPANY 259,069
7,500 SCP POOL CORPORATION+ 222,188
5,300 SIMPSON MANUFACTURING COMPANY
INCORPORATED+ 236,844
8,600 SPECIALTY EQUIPMENT COMPANIES
INCORPORATED+ 212,313
9,400 TBC CORPORATION+ 45,825
8,900 UNIVERSAL FOREST PRODUCTS
INCORPORATED 101,655
4,310,053
------------
WHOLESALE TRADE-NONDURABLE GOODS - 2.03%
15,300 BINDLEY WESTERN INDUSTRIES
INCORPORATED 489,600
19,700 DIMON INCORPORATED 64,025
6,000 ENESCO GROUP INCORPORATED 35,250
17,500 FLEMING COMPANIES INCORPORATED 228,594
12,800 HAIN CELESTIAL GROUP
INCORPORATED+ 449,600
18,300 MEN'S WEARHOUSE INCORPORATED+ 518,119
9,500 MYERS INDUSTRIES INCORPORATED 120,531
5,100 NASH-FINCH COMPANY 53,231
6,200 PERFORMANCE FOOD GROUP
COMPANY+ 233,275
10,000 PRIORITY HEALTHCARE
CORPORATION+ 762,500
7,700 SCHOOL SPECIALTY INCORPORATED+ 164,106
19,000 STRIDE RITE CORPORATION 96,188
8,100 UNITED NATURAL FOODS
INCORPORATED+ 100,238
15,100 UNITED STATIONERS
INCORPORATED+ 405,813
3,721,070
------------
168,190,312
TOTAL COMMON STOCK (COST $163,608,352)
------------
</TABLE>
170
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--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 7.23%
TIME DEPOSITS - 5.83%
10,653,813 CAISSE DES DEPOTS ET
CONSIGNATIONS 6.73% 10/02/00 $ 10,653,813
------------
U.S. TREASURY BILLS - 1.40%
2,630,000 U.S. TREASURY BILLS 5.97-6.43{::} 02/01/01 2,576,058
------------
13,229,871
TOTAL SHORT-TERM INSTRUMENTS (COST
$13,231,123)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $176,839,475)* 99.20% $181,420,183
OTHER ASSETS AND LIABILITIES, NET 0.80 1,455,405
------- ------------
TOTAL NET ASSETS 100.00% $182,875,588
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $179,430,641 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $34,739,674
GROSS UNREALIZED DEPRECIATION (32,750,132)
----------
NET UNREALIZED APPRECIATION $1,989,542
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
171
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 96.20%
APPAREL & ACCESSORY STORES - 5.74%
137,600 HOT TOPIC INCORPORATED+ $ 4,128,000
109,100 NEIMAN-MARCUS GROUP
INCORPORATED+ 3,538,931
79,910 TALBOTS INCORPORATED 5,294,037
12,960,968
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.46%
167,110 DOLLAR THRIFTY AUTOMOTIVE
GROUP INCORPORATED+ 3,300,423
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 6.24%
82,850 MDC HOLDINGS INCORPORATED 2,154,100
52,520 NVR INCORPORATED+ 4,254,120
119,800 PULTE CORPORATION 3,953,400
109,000 TOLL BROTHERS INCORPORATED+ 3,746,874
14,108,494
------------
CHEMICALS & ALLIED PRODUCTS - 3.17%
162,600 ALBEMARLE CORPORATION 3,282,487
63,400 ALPHARMA INCORPORATED 3,875,325
7,157,812
------------
COMMUNICATIONS - 0.84%
162,320 LIGHTBRIDGE INCORPORATED+ 1,886,970
------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS - 2.16%
145,100 INSITUFORM TECHNOLOGIES -
CLASS A+ 4,878,988
------------
DEPOSITORY INSTITUTIONS - 10.66%
129,426 DOWNEY FINANCIAL CORPORATION 5,112,327
211,300 EAST WEST BANCORP INCORPORATED 4,133,555
75,200 GREATER BAY BANCORP 5,221,700
76,680 SILICON VALLEY BANCSHARES+ 4,465,412
157,664 SOUTHWEST BANCORP OF TEXAS
INCORPORATED+ 5,153,642
24,086,636
------------
EATING & DRINKING PLACES - 3.34%
137,560 JACK IN THE BOX INCORPORATED+ 2,948,943
225,750 RARE HOSPITALITY INTERNATIONAL
INCORPORATED+ 4,599,656
7,548,599
------------
ELECTRIC, GAS & SANITARY SERVICES - 5.14%
194,200 AGL RESOURCES INCORPORATED 3,896,136
160,900 ALLETE 3,559,913
89,900 IDACORP INCORPORATED 4,157,875
11,613,924
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 10.26%
106,200 C&D TECHNOLOGIES INCORPORATED 6,026,850
149,305 CABLE DESIGN TECHNOLOGIES+ 3,629,978
</TABLE>
172
<PAGE>
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--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
107,600 LITTELFUSE INCORPORATED+ $ 3,194,375
73,594 SALTON INCORPORATED+ 2,378,006
136,300 SILICON VALLEY GROUP+ 3,586,394
43,100 TECHNITROL INCORPORATED 4,353,100
23,168,703
------------
FOOD & KINDRED PRODUCTS - 1.31%
54,330 CONSTELLATION BRANDS
INCORPORATED+ 2,950,798
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.90%
317,000 PIER 1 IMPORTS INCORPORATED 4,299,313
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 1.52%
222,700 AZTAR CORPORATION*+ 3,424,013
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.68%
118,700 ANIXTER INTERNATIONAL
INCORPORATED+ 3,457,137
108,670 ELECTROGLAS INCORPORATED+ 1,854,182
99,400 IN FOCUS SYSTEMS INCORPORATED+ 5,268,200
10,579,519
------------
INSURANCE CARRIERS - 2.90%
188,400 OXFORD HEALTH PLANS
INCORPORATED+ 5,790,356
27,480 CORVEL CORPORATION+ 764,288
6,554,644
------------
LEATHER & LEATHER PRODUCTS - 1.93%
257,340 GENESCO INCORPORATED+ 4,358,696
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.97%
99,700 ESTERLINE TECHNOLOGIES
CORPORATION+ 1,962,844
59,520 ORBOTECH LIMITED+ 3,255,000
87,230 POLYMEDICA CORPORATION+ 3,739,986
8,957,830
------------
MISCELLANEOUS RETAIL - 4.97%
105,230 MICHAELS STORES INCORPORATED+ 4,209,200
118,500 RENT-A-CENTER INCORPORATED+ 4,110,469
89,400 ZALE CORPORATION+ 2,899,913
11,219,582
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.04%
148,204 AMERICAN FREIGHTWAYS
CORPORATION+ 2,352,739
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 7.42%
186,600 AMERICREDIT CORPORATION+ 5,376,413
111,000 COMPUCREDIT CORPORATION+ 6,226,406
130,700 METRIS COMPANIES INCORPORATED 5,162,650
16,765,469
------------
</TABLE>
173
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--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION - 5.37%
176,400 PATINA OIL & GAS CORPORATION $ 3,528,000
63,500 STONE ENERGY CORPORATION+ 3,492,500
224,760 VINTAGE PETROLEUM INCORPORATED 5,113,290
12,133,790
------------
PAPER & ALLIED PRODUCTS - 0.07%
11,800 POPE & TALBOT INCORPORATED 168,888
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.17%
90,508 SOUTHWEST SECURITIES GROUP
INCORPORATED 2,647,359
------------
WATER TRANSPORTATION - 2.13%
102,400 TEEKAY SHIPPING CORPORATION+ 4,806,400
------------
WHOLESALE TRADE-DURABLE GOODS - 2.41%
105,000 INSIGHT ENTERPRISES
INCORPORATED+ 2,861,250
281,112 TOPPS COMPANY INCORPORATED+ 2,582,717
5,443,967
------------
WHOLESALE TRADE-NONDURABLE GOODS - 4.40%
94,100 KENNETH COLE PRODUCTIONS
INCORPORATED+ 3,322,906
136,510 MEN'S WEARHOUSE INCORPORATED+ 3,864,939
102,043 UNITED STATIONERS
INCORPORATED+ 2,742,406
9,930,251
------------
217,304,775
TOTAL COMMON STOCK (COST $168,392,142)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 5.07%
REPURCHASE AGREEMENTS - 5.07%
$11,453,934 BANC OF AMERICA NT & SA - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/2/00 11,453,934
------------
11,453,934
TOTAL SHORT-TERM INSTRUMENTS (COST
$11,453,934)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $179,846,076)* 101.27% $228,758,709
OTHER ASSETS AND LIABILITIES, NET (1.27) (2,875,705)
------- ------------
TOTAL NET ASSETS 100.00% $225,883,004
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $54,406,551
GROSS UNREALIZED DEPRECIATION (5,493,918)
----------
NET UNREALIZED APPRECIATION $48,912,633
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
174
<PAGE>
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--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 95.55%
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.41%
234,500 COPART INCORPORATED+ $ 3,253,688
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.22%
88,400 DOLLAR THRIFTY AUTOMOTIVE
GROUP INCORPORATED+ 1,745,900
------------
BUSINESS SERVICES - 12.33%
281,500 AVANT! CORPORATION+ 5,137,374
205,300 AWARE INCORPORATED+ 7,904,050
87,400 BARRA INCORPORATED+ 5,424,262
149,200 CLARENT CORPORATION+ 5,874,750
164,500 COGNEX CORPORATION+ 6,487,468
277,500 CONCORD EFS INCORPORATED+ 9,855,585
316,300 DENDRITE INTERNATIONAL
INCORPORATED+ 8,480,793
339,800 ELECTRONICS FOR IMAGING
INCORPORATED+ 8,579,950
93,000 HYPERION SOLUTIONS
CORPORATION+ 2,406,375
73,600 IMRGLOBAL CORPORATION+ 855,600
288,700 MENTOR GRAPHICS CORPORATION+ 6,802,494
248,300 NET PERCEPTIONS INCORPORATED+ 1,171,666
548,900 NETWORK ASSOCIATES
INCORPORATED+ 12,418,863
221,800 PEREGRINE SYSTEMS
INCORPORATED+ 4,200,338
100,700 RAZORFISH INCORPORATED+ 1,040,042
237,500 SAGENT TECHNOLOGY
INCORPORATED+ 1,796,094
286,000 SENSORMATIC ELECTRONICS
CORPORATION+ 4,290,000
67,500 WATCHGUARD TECHNOLOGIES
INCORPORATED+ 4,050,000
96,775,704
------------
CHEMICALS & ALLIED PRODUCTS - 9.94%
37,600 ALKERMES INCORPORATED+ 1,452,300
98,800 BARR LABORATORIES
INCORPORATED+ 6,551,674
144,700 BIOVAIL CORPORATION+ 11,784,006
88,700 COR THERAPEUTICS INCORPORATED+ 5,527,119
191,400 CUBIST PHARMACEUTICALS
INCORPORATED+ 9,964,763
210,600 GENZYME CORPORATION+ 14,360,288
189,200 GUILFORD PHARMACEUTICALS
INCORPORATED+ 4,363,425
225,100 INSMED INCORPORATED+ 2,968,506
110,100 INTERMUNE PHARMACEUTICALS
INCORPORATED+ 5,972,925
263,300 KING PHARMACEUTICALS
INCORPORATED+ 8,804,094
139,100 NEUROCRINE BIOSCIENCES
INCORPORATED+ 6,259,500
78,008,600
------------
COMMUNICATIONS - 3.03%
189,400 ADTRAN INCORPORATED+ 8,058,377
350,000 BRIGHTPOINT INCORPORATED+ 1,760,938
361,500 ITC DELTACOM INCORPORATED+ 4,157,250
296,700 SPECTRASITE HOLDINGS
INCORPORATED+ 5,507,494
224,400 TELECOMMUNICATION SYSTEMS
INCORPORATED+ 4,291,650
23,775,709
------------
</TABLE>
175
<PAGE>
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--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS - 5.50%
262,200 AMERICAN FINANCIAL HOLDINGS
INCORPORATED $ 4,621,274
298,300 ASTORIA FINANCIAL CORPORATION 11,521,838
577,900 HIBERNIA CORPORATION 7,079,275
461,300 ROSLYN BANCORP INCORPORATED 10,321,588
255,800 TCF FINANCIAL CORPORATION 9,624,475
43,168,450
------------
EATING & DRINKING PLACES - 1.98%
304,600 JACK IN THE BOX INCORPORATED+ 6,529,863
537,100 RUBY TUESDAY INCORPORATED 6,042,375
94,900 SONIC CORPORATION+ 2,989,350
15,561,588
------------
ELECTRIC, GAS & SANITARY SERVICES - 0.68%
169,500 SOUTHERN ENERGY INCORPORATED+ 5,318,063
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 12.37%
107,100 ACTEL CORPORATION+ 3,848,905
300,400 ADAPTEC INCORPORATED+ 6,008,000
151,500 ADVANCED FIBRE COMMUNICATIONS
INCORPORATED+ 5,738,062
100,300 ALPHA INDUSTRIES INCORPORATED+ 3,416,468
255,500 DALLAS SEMICONDUCTOR
CORPORATION 8,399,562
104,000 DITECH COMMUNICATIONS
CORPORATION+ 4,264,000
218,100 DMC STRATEX NETWORKS
INCORPORATED+ 3,503,230
203,500 EFFICIENT NETWORKS
INCORPORATED+ 7,593,094
278,100 FAIRCHILD SEMICONDUCTOR
CORPORATION+ 7,821,563
307,200 GENERAL SEMICONDUCTOR
INCORPORATED+ 3,744,000
107,200 INTEGRATED SILICON SOLUTION
INCORPORATED+ 1,520,900
121,400 MATTSON TECHNOLOGY
INCORPORATED+ 1,805,825
302,100 ON SEMICONDUCTOR CORPORATION+ 3,285,338
131,600 OPTIMAL ROBOTICS CORPORATION+ 5,296,900
263,000 PHOTRONICS INCORPORATED+ 5,736,688
178,500 PLX TECHNOLOGY INCORPORATED+ 4,797,188
105,800 POWER INTEGRATIONS
INCORPORATED+ 1,474,588
150,000 SAWTEK INCORPORATED+ 5,777,344
147,800 TEKELEC+ 4,858,925
279,400 THREE-FIVE SYSTEMS
INCORPORATED+ 8,172,450
97,063,030
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 2.79%
136,800 CEPHALON INCORPORATED+ 6,634,800
120,300 SEQUENOM INCORPORATED+ 5,067,638
340,600 UNITEDGLOBALCOM INCORPORATED+ 10,218,000
21,920,438
------------
FOOD STORES - 1.73%
252,900 WHOLE FOODS MARKET
INCORPORATED+ 13,577,569
------------
</TABLE>
176
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
GENERAL MERCHANDISE STORES - 2.92%
911,800 CONSOLIDATED STORES
CORPORATION+ $ 12,309,300
553,000 FAMILY DOLLAR STORES
INCORPORATED 10,645,250
22,954,550
------------
HEALTH SERVICES - 5.53%
1,138,200 CAREMARK RX INCORPORATED+ 12,804,750
583,500 HEALTH MANAGEMENT ASSOCIATES
INCORPORATED+ 12,144,093
280,500 LINCARE HOLDINGS INCORPORATED+ 8,046,844
302,600 MANOR CARE INCORPORATED+ 4,747,038
123,000 ORTHODONTIC CENTERS OF AMERICA
INCORPORATED+ 4,097,438
82,400 RENAL CARE GROUP INCORPORATED+ 1,534,700
43,374,863
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.23%
70,000 LINENS 'N THINGS INCORPORATED+ 1,785,000
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.55%
226,100 ORIENT-EXPRESS HOTEL LIMITED+ 4,352,425
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.81%
174,100 AVOCENT CORPORATION+ 9,597,263
139,700 GASONICS INTERNATIONAL
CORPORATION+ 1,711,325
272,600 GSI LUMONICS INCORPORATED+ 4,497,900
147,800 INFOCUS CORPORATION+ 7,833,400
139,500 VARIAN MEDICAL SYSTEMS
INCORPORATED+ 6,303,656
29,943,544
------------
INSURANCE CARRIERS - 4.09%
154,800 EVEREST RE GROUP LIMITED+ 7,662,600
501,100 FIDELITY NATIONAL FINANCIAL
INCORPORATED 12,402,225
501,600 OLD REPUBLIC INTERNATIONAL
CORPORATION 12,069,750
32,134,575
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.67%
570,000 LOUISIANA-PACIFIC CORPORATION 5,236,875
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.27%
164,200 COOPER COMPANIES INCORPORATED 5,808,575
94,400 CYMER INCORPORATED+ 2,896,900
115,600 HAEMONETICS CORPORATION+ 2,947,800
134,600 LTX CORPORATION+ 2,548,988
120,300 ORBOTECH LIMITED+ 6,578,906
408,100 STERIS CORPORATION+ 4,897,200
25,678,369
------------
MISCELLANEOUS RETAIL - 2.98%
638,600 BORDERS GROUP INCORPORATED+ 8,900,488
161,400 MICHAELS STORES INCORPORATED+ 6,456,000
</TABLE>
177
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MISCELLANEOUS RETAIL (continued)
188,500 TECH DATA CORPORATION+ $ 8,058,375
23,414,863
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.97%
264,100 AMERICREDIT CORPORATION+ 7,609,381
------------
OIL & GAS EXTRACTION - 8.38%
206,500 COFLEXIP-SPONSORED ADR 12,854,624
105,700 DEVON ENERGY CORPORATION 6,357,855
410,000 PIONEER NATURAL RESOURCES
COMPANY+ 5,816,875
266,900 PRECISION DRILLING
CORPORATION+ 9,508,313
207,300 SANTA FE INTERNATIONAL
CORPORATION+ 9,341,456
171,300 SPINNAKER EXPLORATION COMPANY+ 5,974,088
152,300 TIDEWATER INCORPORATED 6,929,650
394,900 VINTAGE PETROLEUM INCORPORATED 8,983,975
65,766,836
------------
PAPER & ALLIED PRODUCTS - 0.65%
462,600 PACKAGING CORPORATION OF
AMERICA+ 5,117,513
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.43%
292,000 PENNZOIL-QUAKER STATE COMPANY 3,066,000
232,100 VALERO ENERGY CORPORATION 8,167,019
11,233,019
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.15%
229,300 HOUGHTON MIFFLIN COMPANY 9,000,025
------------
REAL ESTATE - 0.53%
176,400 NEWHALL LAND & FARMING COMPANY 4,148,928
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.43%
447,700 AMERITRADE HOLDING
CORPORATION+ 7,946,675
35,100 DAIN RAUSCHER CORPORATION 3,264,300
11,210,975
------------
TRANSPORTATION BY AIR - 2.26%
206,000 ATLANTIC COAST AIRLINES
HOLDINGS+ 6,630,625
178,100 MIDWEST EXPRESS HOLDINGS
INCORPORATED+ 3,584,263
147,100 SKYWEST INCORPORATED 7,538,875
17,753,763
------------
TRANSPORTATION EQUIPMENT - 1.16%
539,700 FRIEDE GOLDMAN HALTER
INCORPORATED+ 3,811,631
136,300 OSHKOSH TRUCK CORPORATION 5,281,625
9,093,256
------------
WHOLESALE TRADE-DURABLE GOODS - 1.71%
244,900 ARROW ELECTRONICS
INCORPORATED+ 8,341,906
</TABLE>
178
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
WHOLESALE TRADE-DURABLE GOODS (continued)
370,900 INGRAM MICRO INCORPORATED+ $ 5,099,875
13,441,781
------------
WHOLESALE TRADE-NONDURABLE GOODS - 0.85%
141,700 AMERISOURCE HEALTH
CORPORATION+ 6,659,900
------------
750,079,180
TOTAL COMMON STOCK (COST $644,702,933)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 3.78%
REPURCHASE AGREEMENTS - 3.78%
$29,676,344 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 29,676,344
------------
29,676,344
TOTAL SHORT-TERM INSTRUMENTS (COST
$29,676,344)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $674,379,277)* 99.33% $779,755,524
OTHER ASSETS AND LIABILITIES, NET 0.67 5,244,936
------- ------------
TOTAL NET ASSETS 100.00% $785,000,460
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $682,921,451 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $144,474,584
GROSS UNREALIZED DEPRECIATION (47,640,511)
-----------
NET UNREALIZED APPRECIATION $96,834,073
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
179
<PAGE>
CORE PORTFOLIO PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.54%
AMUSEMENT & RECREATION SERVICES - 3.64%
37,220 ANCHOR GAMING+ $ 2,961,316
136,619 ARGOSY GAMING COMPANY+ 2,476,218
55,500 WMS INDUSTRIES INCORPORATED+ 1,248,750
6,686,284
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
2.72%
93,139 GUESS INCORPORATED+ 1,047,814
209,262 PHILLIPS-VAN HEUSEN
CORPORATION 2,158,014
105,998 TROPICAL SPORTSWEAR
INTERNATIONAL CORPORATION+ 1,801,966
5,007,794
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.88%
175,056 DOLLAR THRIFTY AUTOMOTIVE
GROUP INCORPORATED+ 3,457,356
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 4.20%
134,266 D.R. HORTON INCORPORATED 2,307,700
95,200 LENNAR CORPORATION 2,826,250
144,400 STANDARD PACIFIC CORPORATION 2,599,200
7,733,150
------------
BUSINESS SERVICES - 2.48%
40,300 AUTODESK INCORPORATED 1,022,613
97,030 NCO GROUP INCORPORATED+ 1,152,231
176,324 OGDEN CORPORATION 2,391,394
4,566,238
------------
CHEMICALS & ALLIED PRODUCTS - 4.30%
126,200 AGRIUM INCORPORATED 1,293,550
171,400 CROMPTON CORPORATION 1,349,775
90,000 CYTEC INDUSTRIES INCORPORATED+ 3,009,375
29,839 H B FULLER COMPANY 857,871
329,670 USEC INCORPORATED 1,401,098
7,911,669
------------
COMMUNICATIONS - 0.47%
172,500 BRIGHTPOINT INCORPORATED+ 867,891
------------
DEPOSITORY INSTITUTIONS - 10.41%
72,800 ASTORIA FINANCIAL CORPORATION 2,811,900
49,048 BANKNORTH GROUP INCORPORATED 876,733
51,594 CENTURA BANKS INCORPORATED 1,976,695
25,320 CITIZENS BANKING CORPORATION 582,360
100,675 COMMERCIAL FEDERAL CORPORATION 1,925,409
53,449 FIRST REPUBLIC BANK+ 1,610,151
122,839 FIRSTFED FINANCIAL
CORPORATION+ 2,825,298
116,100 INDEPENDENCE COMMUNITY BANK
CORPORATION 1,625,400
59,068 PACIFIC NORTHWEST BANCORP 764,192
80,000 PFF BANCORP INCORPORATED 1,740,000
</TABLE>
180
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 CORE PORTFOLIO
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS (continued)
89,275 WEBSTER FINANCIAL CORPORATION $ 2,404,846
19,142,984
------------
ELECTRIC, GAS & SANITARY SERVICES - 8.28%
116,920 CENTRAL VERMONT PUBLIC SERVICE 1,191,123
240,071 EL PASO ELECTRIC COMPANY+ 3,305,777
68,909 ENERGEN CORPORATION 2,050,043
83,075 OGE ENERGY CORPORATION 1,770,536
100,460 UGI CORPORATION 2,436,155
37,661 UIL HOLDINGS CORPORATION 1,937,188
77,425 WPS RESOURCES CORPORATION 2,535,668
15,226,490
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 5.99%
31,793 ACTEL CORPORATION+ 1,142,561
41,500 ANTEC CORPORATION+ 1,224,250
29,754 CTS CORPORATION 1,506,296
17,613 DUPONT PHOTOMASKS
INCORPORATED+ 1,034,764
85,800 HARMAN INTERNATIONAL
INDUSTRIES INCORPORATED 3,354,780
43,400 IMATION CORPORATION+ 808,325
34,992 PARK ELECTROCHEMICAL
CORPORATION 1,946,430
11,017,406
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
1.83%
290,469 GRIFFON CORPORATION+ 2,196,672
125,650 TOWER AUTOMOTIVE INCORPORATED+ 1,177,969
3,374,641
------------
FOOD & KINDRED PRODUCTS - 1.70%
69,209 CORN PRODUCTS INTERNATIONAL
INCORPORATED 1,574,505
169,364 TOPPS COMPANY INCORPORATED+ 1,556,032
3,130,537
------------
FOOD STORES - 1.04%
137,773 RUDDICK CORPORATION 1,911,600
------------
FURNITURE & FIXTURES - 0.48%
52,900 FURNITURE BRANDS INTERNATIONAL
INCORPORATED+ 879,463
------------
GENERAL MERCHANDISE STORES - 1.21%
79,770 AMES DEPARTMENT STORES
INCORPORATED+ 461,170
130,740 CONSOLIDATED STORES
CORPORATION+ 1,764,990
2,226,160
------------
HEALTH SERVICES - 1.86%
575,300 BEVERLY ENTERPRISES
INCORPORATED+ 3,415,844
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 1.20%
142,697 ISLE OF CAPRI CASINOS
INCORPORATED+ 2,211,804
------------
</TABLE>
181
<PAGE>
CORE PORTFOLIO PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.21%
62,700 CINCINNATI MILACRON
INCORPORATED $ 834,694
58,100 KULICKE & SOFFA INDUSTRIES
INCORPORATED+ 773,456
62,206 NORTEK INCORPORATED+ 1,088,605
105,340 TEREX CORPORATION+ 1,376,004
4,072,759
------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.10%
97,800 E.W. BLANCH HOLDINGS
INCORPORATED 2,029,350
------------
INSURANCE CARRIERS - 9.50%
59,500 FARM FAMILY HOLDINGS
INCORPORATED+ 1,881,688
122,116 FOUNDATION HEALTH SYSTEMS
INCORPORATED+ 2,030,179
112,178 HARLEYSVILLE GROUP
INCORPORATED 2,133,134
127,400 HCC INSURANCE HOLDINGS
INCORPORATED 2,587,812
62,400 MID ATLANTIC MEDICAL SERVICES
INCORPORATED+ 943,800
73,320 MONY GROUP INCORPORATED 2,923,635
121,200 OLD REPUBLIC INTERNATIONAL
CORPORATION 2,916,375
59,400 W.R. BERKLEY CORPORATION 2,053,013
17,469,636
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 2.03%
74,585 COOPER COMPANIES INCORPORATED 2,638,443
55,305 ESTERLINE TECHNOLOGIES
CORPORATION+ 1,088,817
3,727,260
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.01%
68,200 HEXCEL CORPORATION+ 912,175
134,100 ZOMAX INCORPORATED+ 938,700
1,850,875
------------
MISCELLANEOUS RETAIL - 0.34%
177,840 OFFICEMAX INCORPORATED+ 633,555
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.47%
93,426 COVENANT TRANSPORTATION
INCORPORATED+ 870,030
------------
OIL & GAS EXTRACTION - 3.70%
362,100 CHESAPEAKE ENERGY CORPORATION+ 2,602,594
99,000 CROSS TIMBERS OIL COMPANY 1,899,563
31,776 PRIDE INTERNATIONAL
INCORPORATED+ 842,064
31,250 SEACOR SMIT INCORPORATED+ 1,457,031
6,801,252
------------
PAPER & ALLIED PRODUCTS - 0.47%
84,324 FIBERMARK INCORPORATED+ 859,051
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.97%
179,950 TESORO PETROLEUM CORPORATION+ 1,788,253
------------
</TABLE>
182
<PAGE>
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--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES - 3.12%
152,125 AK STEEL HOLDING CORPORATION $ 1,426,172
96,350 MUELLER INDUSTRIES
INCORPORATED+ 2,161,853
67,500 TEXAS INDUSTRIES INCORPORATED 2,151,563
5,739,588
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.58%
238,240 MAIL-WELL INCORPORATED+ 1,057,190
------------
REAL ESTATE INVESTMENT TRUST - 8.36%
79,527 BRANDYWINE REALTY TRUST+ 1,610,422
103,500 DEVELOPERS DIVERSIFIED REALTY
CORPORATION 1,332,563
53,840 FIRST INDUSTRIAL REALTY TRUST
INCORPORATED 1,655,580
63,600 FRANCHISE FINANCE CORPORATION
OF AMERICA 1,431,000
109,050 GLENBOROUGH REALTY TRUST
INCORPORATED 1,962,900
99,710 HEALTHCARE REALTY TRUST
INCORPORATED 2,106,373
62,910 HIGHWOODS PROPERTIES
INCORPORATED 1,486,249
85,020 PRENTISS PROPERTIES TRUST 2,221,147
51,624 STORAGE USA INCORPORATED 1,574,532
15,380,766
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.31%
33,800 SOUTHDOWN INCORPORATED 2,408,250
------------
TRANSPORTATION BY AIR - 1.12%
105,600 FRONTIER AIRLINES
INCORPORATED+ 2,052,600
------------
TRANSPORTATION EQUIPMENT - 1.30%
54,961 NEWPORT NEWS SHIPBUILDING
INCORPORATED 2,383,933
------------
WATER TRANSPORTATION - 1.04%
81,722 SEA CONTAINERS LIMITED 1,905,144
------------
WHOLESALE TRADE-DURABLE GOODS - 2.03%
42,940 BORG WARNER INCORPORATED 1,422,388
143,787 OMNICARE INCORPORATED 2,318,565
3,740,953
------------
WHOLESALE TRADE-NONDURABLE GOODS - 3.19%
121,934 HENRY SCHEIN INCORPORATED+ 2,431,059
46,891 PERFORMANCE FOOD GROUP
COMPANY+ 1,764,274
111,489 SUPERVALU INCORPORATED 1,679,303
5,874,636
------------
179,412,392
TOTAL COMMON STOCK (COST $165,587,927)
------------
</TABLE>
183
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--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.03%
REPURCHASE AGREEMENTS - 2.03%
$3,741,708 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 $ 3,741,708
------------
3,741,708
TOTAL SHORT-TERM INSTRUMENTS (COST
$3,741,708)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $169,329,635)* 99.57% $183,154,100
OTHER ASSETS AND LIABILITIES, NET 0.43 788,725
------- ------------
TOTAL NET ASSETS 100.00% $183,942,825
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $170,338,935 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $29,020,180
GROSS UNREALIZED DEPRECIATION (16,205,015)
-----------
NET UNREALIZED APPRECIATION $12,815,165
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
184
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
185
<PAGE>
CORE PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED INCOME
GROWTH EQUITY INDEX
<S> <C> <C> <C>
---------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS AT COST....... $ 158,577,425 $ 1,699,457,248 $ 1,160,090,015
NET UNREALIZED
APPRECIATION............ 31,891,885 898,178,356 638,178,232
--------------- --------------- ---------------
TOTAL INVESTMENT AT VALUE..... 190,469,310 2,597,635,604 1,798,268,247
--------------- --------------- ---------------
CASH........................ 0 59,932 17,348
RECEIVABLE FOR FORWARD
FOREIGN CURRENCY
CONTRACTS................. 0 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 39,530,827 156,745,679 262,076,969
RECEIVABLE FOR INVESTMENTS
SOLD...................... 2,307,450 2,521,728 20,319
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 55,286 5,399,547 1,470,351
PREPAID EXPENSES AND OTHER
ASSETS.................... 563 3,327 0
--------------- --------------- ---------------
TOTAL ASSETS.................. 232,363,436 2,762,365,817 2,061,853,234
--------------- --------------- ---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 2,937,250 0
PAYABLE FOR SECURITIES
LOANED.................... 39,530,827 156,745,679 262,076,969
PAYABLE FOR DAILY VARIATION
MARGIN ON FINANCIAL
FUTURES CONTRACTS......... 0 0 319,900
PAYABLE ON FORWARD FOREIGN
CURRENCY CONTRACTS........ 0 0 0
PAYABLE TO INVESTMENT
ADVISER AND AFFILIATES.... 113,084 1,464,222 187,246
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 30,231 11,589 24,799
--------------- --------------- ---------------
TOTAL LIABILITIES............. 39,674,142 161,158,740 262,608,914
--------------- --------------- ---------------
TOTAL NET ASSETS.............. $ 192,689,294 $ 2,601,207,077 $ 1,799,244,320
--------------- --------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
186
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL LARGE COMPANY SMALL CAP SMALL CAP
INTERNATIONAL EQUITY GROWTH INDEX VALUE
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS AT COST....... $ 651,991,324 $ 307,876,683 $ 1,868,662,154 $ 176,839,475 $ 179,846,076
NET UNREALIZED
APPRECIATION............ 29,202,584 8,533,731 1,367,405,249 4,580,708 48,912,633
--------------- --------------- --------------- --------------- ---------------
TOTAL INVESTMENT AT VALUE..... 681,193,908 316,410,414 3,236,067,403 181,420,183 228,758,709
--------------- --------------- --------------- --------------- ---------------
CASH........................ 0 0 22,410 0 0
RECEIVABLE FOR FORWARD
FOREIGN CURRENCY
CONTRACTS................. 1,180,743 0 0 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 36,946,133 22,056,352 340,317,558 25,160,003 37,046,916
RECEIVABLE FOR INVESTMENTS
SOLD...................... 22,554,257 0 0 2,248,808 3,083,616
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 2,479,434 464,821 891,871 384,325 63,102
PREPAID EXPENSES AND OTHER
ASSETS.................... 10,110 0 10,979 0 0
--------------- --------------- --------------- --------------- ---------------
TOTAL ASSETS.................. 744,364,585 338,931,587 3,577,310,221 209,213,319 268,952,343
--------------- --------------- --------------- --------------- ---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 9,004,257 0 0 1,059,359 5,841,460
PAYABLE FOR SECURITIES
LOANED.................... 36,946,133 22,056,352 340,317,558 25,160,003 37,046,916
PAYABLE FOR DAILY VARIATION
MARGIN ON FINANCIAL
FUTURES CONTRACTS......... 0 0 0 57,350 0
PAYABLE ON FORWARD FOREIGN
CURRENCY CONTRACTS........ 267,227 0 0 0 0
PAYABLE TO INVESTMENT
ADVISER AND AFFILIATES.... 1,326,580 312,980 2,166,511 42,614 108,233
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 405,719 326,469 43,086 18,405 72,730
--------------- --------------- --------------- --------------- ---------------
TOTAL LIABILITIES............. 47,949,916 22,695,801 342,527,155 26,337,731 43,069,339
--------------- --------------- --------------- --------------- ---------------
TOTAL NET ASSETS.............. $ 696,414,669 $ 316,235,786 $ 3,234,783,066 $ 182,875,588 $ 225,883,004
--------------- --------------- --------------- --------------- ---------------
<CAPTION>
SMALL COMPANY SMALL COMPANY
GROWTH VALUE
<S> <C> <C>
------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS AT COST....... $ 674,379,277 $ 169,329,635
NET UNREALIZED
APPRECIATION............ 105,376,247 13,824,465
--------------- ---------------
TOTAL INVESTMENT AT VALUE..... 779,755,524 183,154,100
--------------- ---------------
CASH........................ 0 0
RECEIVABLE FOR FORWARD
FOREIGN CURRENCY
CONTRACTS................. 0 0
COLLATERAL FOR SECURITIES
LOANED.................... 76,780,034 18,046,194
RECEIVABLE FOR INVESTMENTS
SOLD...................... 28,238,063 1,199,025
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 83,802 329,897
PREPAID EXPENSES AND OTHER
ASSETS.................... 0 2,985
--------------- ---------------
TOTAL ASSETS.................. 884,857,423 202,732,201
--------------- ---------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 22,437,265 586,911
PAYABLE FOR SECURITIES
LOANED.................... 76,780,034 18,046,194
PAYABLE FOR DAILY VARIATION
MARGIN ON FINANCIAL
FUTURES CONTRACTS......... 0 0
PAYABLE ON FORWARD FOREIGN
CURRENCY CONTRACTS........ 0 0
PAYABLE TO INVESTMENT
ADVISER AND AFFILIATES.... 623,848 115,187
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 15,816 41,084
--------------- ---------------
TOTAL LIABILITIES............. 99,856,963 18,789,376
--------------- ---------------
TOTAL NET ASSETS.............. $ 785,000,460 $ 183,942,825
--------------- ---------------
</TABLE>
187
<PAGE>
CORE PORTFOLIOS STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30,
2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED INCOME
GROWTH EQUITY INDEX INTERNATIONAL
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $1,652,239 $ 51,081,343 $19,909,417 $ 8,573,042(1)
INTEREST............... 178,614 2,195,377 2,243,756 1,856,419
SECURITIES LENDING..... 83,590 280,118 444,628 173,637
---------- ------------ ----------- -----------
TOTAL INVESTMENT
INCOME................. 1,914,443 53,556,838 22,597,801 10,603,098
---------- ------------ ----------- -----------
EXPENSES
ADVISORY FEES.......... 1,541,983 18,698,296 2,677,126 6,962,560
ADMINISTRATION FEES.... 10,471 129,287 84,206 125,938
CUSTODY................ 39,736 491,560 341,667 1,713,606
ACCOUNTING............. 71,588 151,038 134,206 85,231
LEGAL.................. 6,392 10,446 4,760 268,412
AUDIT.................. 13,611 17,757 17,757 21,723
DIRECTORS' FEES........ 4,797 4,884 4,849 4,819
OTHER.................. 10,954 14,334 21,365 135,637
---------- ------------ ----------- -----------
TOTAL EXPENSES........... 1,699,532 19,517,602 3,285,936 9,317,926
---------- ------------ ----------- -----------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (192,907) (2,380,350) (896,975) 0
NET EXPENSES........... 1,506,625 17,137,252 2,388,961 9,317,926
---------- ------------ ----------- -----------
NET INVESTMENT INCOME
(LOSS)................. 407,818 36,419,586 20,208,840 1,285,172
---------- ------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
--------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM
SECURITIES............. 36,048,944 79,715,569 77,457,330 188,266,567
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 697,396
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 235,160 0
---------- ------------ ----------- -----------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 36,048,944 79,715,569 77,692,490 188,963,963
---------- ------------ ----------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
SECURITIES............. 751,040 (81,398,297) 112,986,029 (67,938,905)
FOREIGN CURRENCY
TRANSACTIONS......... 0 2,613 0 3,819,605
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 832,800 0
---------- ------------ ----------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 751,040 (81,395,684) 113,818,829 (64,119,300)
---------- ------------ ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 36,799,984 (1,680,115) 191,511,319 124,844,663
---------- ------------ ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $37,207,802 $ 34,739,471 $211,720,159 $126,129,835
---------- ------------ ----------- -----------
</TABLE>
(1) NET OF FOREIGN WITHHOLDING TAXES OF $1,370,339 FOR THE INTERNATIONAL
PORTFOLIO AND $405,146 FOR THE INTERNATIONAL EQUITY PORTFOLIO
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
188
<PAGE>
STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000
CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL LARGE COMPANY SMALL CAP SMALL CAP SMALL COMPANY SMALL COMPANY
EQUITY GROWTH INDEX VALUE GROWTH VALUE
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 2,752,094(1) $ 8,625,273 $ 1,064,678 $ 727,362 $ 2,673,116 $ 3,384,825
INTEREST............... 1,063,538 4,134,743 1,220,093 590,532 2,347,322 350,068
SECURITIES LENDING..... 113,528 438,526 74,201 163,982 167,848 39,914
------------- ------------- ----------- ----------- ------------- -------------
TOTAL INVESTMENT
INCOME................. 3,929,160 13,198,542 2,358,972 1,481,876 5,188,286 3,774,807
------------- ------------- ----------- ----------- ------------- -------------
EXPENSES
ADVISORY FEES.......... 2,908,662 20,917,166 432,047 1,754,000 7,079,263 1,563,705
ADMINISTRATION FEES.... 7,871 109,678 7,979 8,920 34,493 7,942
CUSTODY................ 687,422 543,262 34,285 38,406 151,976 34,474
ACCOUNTING............. 149,351 193,714 93,943 99,899 99,592 69,991
LEGAL.................. 240,204 3,116 160 9,879 352 7,022
AUDIT.................. 21,723 22,623 10,695 13,611 15,864 15,864
DIRECTORS' FEES........ 4,795 6,717 3,579 4,793 4,815 4,795
OTHER.................. 6,603 4,610 755 23,136 1,348 18,653
------------- ------------- ----------- ----------- ------------- -------------
TOTAL EXPENSES........... 4,026,631 21,800,886 583,443 1,952,644 7,387,703 1,722,446
------------- ------------- ----------- ----------- ------------- -------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (271,975) (56,176) (10,079) (628,309) (25,669) (324,359)
NET EXPENSES........... 3,754,656 21,744,710 573,364 1,324,335 7,362,034 1,398,087
------------- ------------- ----------- ----------- ------------- -------------
NET INVESTMENT INCOME
(LOSS)................. 174,504 (8,546,168) 1,785,608 157,541 (2,173,748) 2,376,720
------------- ------------- ----------- ----------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
---------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM
SECURITIES............. 45,959,892 78,004,123 12,839,884 17,965,269 182,508,596 5,290,965
FOREIGN CURRENCY
TRANSACTIONS......... (93,802) 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 3,116,279 0 0 0
------------- ------------- ----------- ----------- ------------- -------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 45,866,090 78,004,123 15,956,163 17,965,269 182,508,596 5,290,965
------------- ------------- ----------- ----------- ------------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
SECURITIES............. (9,977,107) 623,998,476 18,710,635 25,367,688 44,204,908 17,232,119
FOREIGN CURRENCY
TRANSACTIONS......... (19,794) 0 0 33 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 (183,651) 0 0 0
------------- ------------- ----------- ----------- ------------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ (9,996,901) 623,998,476 18,526,984 25,367,721 44,204,908 17,232,119
------------- ------------- ----------- ----------- ------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 35,869,189 702,002,599 34,483,147 43,332,990 226,713,504 22,523,084
------------- ------------- ----------- ----------- ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 36,043,693 $ 693,456,431 $36,268,755 $43,490,531 $ 224,539,756 $ 24,899,804
------------- ------------- ----------- ----------- ------------- -------------
</TABLE>
189
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED GROWTH
-------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 201,399,232 $ 188,984,663 $130,765,219
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 407,818 (26,104) 245,235
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 36,048,944 4,099,644 (3,141,344)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 751,040 (4,448,279) 24,845,328
------------------ ------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 37,207,802 (374,739) 21,949,219
------------------ ------------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 28,631,169 24,852,681 56,556,716
WITHDRAWALS............ (74,548,909) (12,063,373) (20,286,491)
------------------ ------------------ ------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. (45,917,740) 12,789,308 36,270,225
------------------ ------------------ ------------
------------------ ------------------ ------------
NET INCREASE IN NET
ASSETS................. (8,709,938) 12,414,569 58,219,444
------------------ ------------------ ------------
ENDING NET ASSETS........ $ 192,689,294 $ 201,399,232 $188,984,663
------------------ ------------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
190
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME EQUITY INDEX
-------------------------------------------------------- ----------------------------------------
FOR THE FOR THE FOUR FOR THE FOR THE FOR THE FOUR
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 2,454,562,674 $ 2,418,577,773 $1,955,802,133 $ 1,583,558,662 $ 1,830,641,407
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 36,419,586 12,171,160 32,382,110 20,208,840 7,070,132
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 79,715,569 55,447,612 10,703,154 77,692,490 17,917,926
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (81,395,684) (176,477,105) 273,274,958 113,818,829 (247,065,769)
------------------ ------------------ -------------- ------------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 34,739,471 (108,858,333) 316,360,222 211,720,159 (222,077,711)
------------------ ------------------ -------------- ------------------ ------------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 578,510,587 170,936,080 299,593,165 230,919,882 168,104,830
WITHDRAWALS............ (466,605,655) (26,092,846) (153,177,747) (226,954,383) (193,109,864)
------------------ ------------------ -------------- ------------------ ------------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 111,904,932 144,843,234 146,415,418 3,965,499 (25,005,034)
------------------ ------------------ -------------- ------------------ ------------------
------------------ ------------------ -------------- ------------------ ------------------
NET INCREASE IN NET
ASSETS................. 146,644,403 35,984,901 462,775,640 215,685,658 (247,082,745)
------------------ ------------------ -------------- ------------------ ------------------
ENDING NET ASSETS........ $ 2,601,207,077 $ 2,454,562,674 $2,418,577,773 $ 1,799,244,320 $ 1,583,558,662
------------------ ------------------ -------------- ------------------ ------------------
<CAPTION>
INDEX
--------------
FOR THE
YEAR ENDED
MAY 31, 1999
<S> <C>
-------------------------
BEGINNING NET ASSETS..... $1,385,279,923
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 21,141,735
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 26,353,322
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 247,309,848
--------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 294,804,905
--------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 338,399,367
WITHDRAWALS............ (187,842,788)
--------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 150,556,579
--------------
--------------
NET INCREASE IN NET
ASSETS................. 445,361,484
--------------
ENDING NET ASSETS........ $1,830,641,407
--------------
</TABLE>
191
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
-------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 803,919,481 $ 797,205,650 $ 951,185,586
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 1,285,172 4,888,405 11,315,753
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 188,963,963 33,382,557 84,073,464
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (64,119,300) (3,837,151) (106,511,759)
------------------ ------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 126,129,835 34,433,811 (11,122,542)
------------------ ------------------ -------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 191,483,305 96,548,384 138,115,465
WITHDRAWALS............ (425,117,952) (124,268,364) (280,972,859)
------------------ ------------------ -------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. (233,634,647) (27,719,980) (142,857,394)
------------------ ------------------ -------------
------------------ ------------------ -------------
NET INCREASE IN NET
ASSETS................. (107,504,812) 6,713,831 (153,979,936)
------------------ ------------------ -------------
ENDING NET ASSETS........ $ 696,414,669 $ 803,919,481 $ 797,205,650
------------------ ------------------ -------------
</TABLE>
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON FEBRUARY 12, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
192
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY LARGE COMPANY GROWTH
----------------------------------------------------------- -------------------
FOR THE FOR THE FOUR FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 (1) SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 150,544,960 $ 154,552,130 $ 0 $ 2,038,377,260
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 174,504 109,415 857,495 (8,546,168)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 45,866,090 2,627,525 (119,809) 78,004,123
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (9,996,901) 13,315,722 5,196,073 623,998,476
------------------ ------------------ --------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 36,043,693 16,052,662 5,933,759 693,456,431
------------------ ------------------ --------------- ------------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 227,285,108 19,384,770 154,175,553 923,765,637
WITHDRAWALS............ (97,637,975) (39,444,602) (5,557,182) (420,816,262)
------------------ ------------------ --------------- ------------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 129,647,133 (20,059,832) 148,618,371 502,949,375
------------------ ------------------ --------------- ------------------
------------------ ------------------ --------------- ------------------
NET INCREASE IN NET
ASSETS................. 165,690,826 (4,007,170) 154,552,130 1,196,405,806
------------------ ------------------ --------------- ------------------
ENDING NET ASSETS........ $ 316,235,786 $ 150,544,960 $ 154,552,130 $ 3,234,783,066
------------------ ------------------ --------------- ------------------
<CAPTION>
LARGE COMPANY GROWTH
-----------------------------------
FOR THE FOUR FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C>
-------------------------
BEGINNING NET ASSETS..... $ 1,847,453,831 $1,081,998,121
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (504,243) (2,686,598)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 37,071,984 181,443,136
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (53,035,427) 267,110,572
------------------ --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (16,467,686) 445,867,110
------------------ --------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 431,740,313 761,913,767
WITHDRAWALS............ (224,349,198) (442,325,167)
------------------ --------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 207,391,115 319,588,600
------------------ --------------
------------------ --------------
NET INCREASE IN NET
ASSETS................. 190,923,429 765,455,710
------------------ --------------
ENDING NET ASSETS........ $ 2,038,377,260 $1,847,453,831
------------------ --------------
</TABLE>
193
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP INDEX
-------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 154,386,892 $ 136,746,124 $122,492,445
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 1,785,608 245,646 926,729
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 15,956,163 (1,007,763) 2,468,434
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 18,526,984 1,965,868 (9,600,626)
------------------ ------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 36,268,755 1,203,751 (6,205,463)
------------------ ------------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 38,490,955 45,525,219 38,398,557
WITHDRAWALS............ (46,271,014) (29,088,202) (17,939,415)
------------------ ------------------ ------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. (7,780,059) 16,437,017 20,459,142
------------------ ------------------ ------------
------------------ ------------------ ------------
NET INCREASE IN NET
ASSETS................. 28,488,696 17,640,768 14,253,679
------------------ ------------------ ------------
ENDING NET ASSETS........ $ 182,875,588 $ 154,386,892 $136,746,124
------------------ ------------------ ------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
THE
ACCOMPANYING
NOTES ARE AN
INTEGRAL
PART OF
THESE
FINANCIAL
STATEMENTS.
</TABLE>
194
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
-------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 173,026,520 $ 125,768,110 $104,269,849 $ 667,576,772
<CAPTION>
SMALL CAP VALUE SMALL COMPANY GROWTH
------------------------------------------------------- -------------------
FOR THE FOR THE FOUR FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 157,541 (146,613) (213,047) (2,173,748)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 17,965,269 4,186,619 (30,465,857) 182,508,596
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 25,367,721 5,216,949 9,548,982 44,204,908
------------------ ------------------ ------------ ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 43,490,531 9,256,955 (21,129,922) 224,539,756
------------------ ------------------ ------------ ------------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 65,107,528 68,898,740 56,411,434 102,175,790
WITHDRAWALS............ (55,741,575) (30,897,285) (13,783,251) (209,291,858)
------------------ ------------------ ------------ ------------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 9,365,953 38,001,455 42,628,183 (107,116,068)
------------------ ------------------ ------------ ------------------
------------------ ------------------ ------------ ------------------
NET INCREASE IN NET
ASSETS................. 52,856,484 47,258,410 21,498,261 117,423,688
------------------ ------------------ ------------ ------------------
ENDING NET ASSETS........ $ 225,883,004 $ 173,026,520 $125,768,110 $ 785,000,460
------------------ ------------------ ------------ ------------------
<CAPTION>
SMALL COMPANY GROWTH
----------------------------------
FOR THE FOUR FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C>
-------------------------
BEGINNING NET ASSETS..... $ 733,708,206 $ 894,063,120
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (514,635) (1,822,670)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 57,486,291 (77,753,826)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (65,332,424) (15,097,262)
------------------ -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (8,360,768) (94,673,758)
------------------ -------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 31,454,531 87,802,760
WITHDRAWALS............ (89,225,197) (153,483,916)
------------------ -------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. (57,770,666) (65,681,156)
------------------ -------------
------------------ -------------
NET INCREASE IN NET
ASSETS................. (66,131,434) (160,354,914)
------------------ -------------
ENDING NET ASSETS........ $ 667,576,772 $ 733,708,206
------------------ -------------
</TABLE>
195
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY VALUE
-------------------------------------------------------
FOR THE FOR THE FOUR FOR THE
YEAR ENDED MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $ 152,160,571 $ 168,647,698 $147,525,445
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 2,376,720 435,751 1,096,962
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 5,290,965 2,279,774 (4,559,162)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 17,232,119 (8,987,103) (9,541,409)
------------------ ------------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 24,899,804 (6,271,578) (13,003,609)
------------------ ------------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 50,248,487 25,136,140 58,867,576
WITHDRAWALS............ (43,366,037) (35,351,689) (24,741,714)
------------------ ------------------ ------------
NET INCREASE FROM
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS.............. 6,882,450 (10,215,549) 34,125,862
------------------ ------------------ ------------
------------------ ------------------ ------------
NET INCREASE IN NET
ASSETS................. 31,782,254 (16,487,127) 21,122,253
------------------ ------------------ ------------
ENDING NET ASSETS........ $ 183,942,825 $ 152,160,571 $168,647,698
------------------ ------------------ ------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
THE
ACCOMPANYING
NOTES ARE AN
INTEGRAL
PART OF
THESE
FINANCIAL
STATEMENTS.
</TABLE>
196
<PAGE>
FINANCIAL HIGHLIGHTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
---------------------------------------- PORTFOLIO
NET INVESTMENT NET GROSS TURNOVER
INCOME (LOSS) EXPENSES EXPENSES(1) RATE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 0.20% 0.75% 0.84% 106%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ (0.04)% 0.97% 1.02% 21%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.15% 0.97% 1.02% 90%
OCTOBER 1, 1997(2) TO MAY 31,
1998........................ 0.55% 1.01% 1.06% 68%
INCOME EQUITY PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 1.42% 0.67% 0.76% 9%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 1.43% 0.54% 0.57% 5%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.53% 0.55% 0.57% 3%
JUNE 1, 1997(2) TO MAY 31,
1998........................ 1.76% 0.52% 0.57% 3%
INDEX PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 1.13% 0.13% 0.18% 8%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 1.25% 0.18% 0.23% 11%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.35% 0.18% 0.23% 4%
JUNE 1, 1997 TO MAY 31,
1998........................ 1.60% 0.19% 0.24% 7%
JUNE 1, 1996 TO MAY 31,
1997........................ 2.03% 0.11% 0.31% 7%
NOVEMBER 1, 1995 TO MAY 31,
1996........................ 2.35% 0.17% 0.32% 7%
INTERNATIONAL
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 0.17% 1.24% 1.24% 127%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 1.79% 0.61% 0.68% 23%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.29% 0.61% 0.69% 94%
JUNE 1, 1997 TO MAY 31,
1998........................ 1.23% 0.66% 0.68% 37%
JUNE 1, 1996 TO MAY 31,
1997........................ 1.53% 0.19% 0.67% 53%
NOVEMBER 1, 1995 TO MAY 31,
1996........................ 1.75% 0.23% 0.68% 18%
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 0.06% 1.30% 1.39% 64%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 0.21% 1.40% 1.40% 11%
FEBRUARY 12, 1999(2) TO
MAY 31, 1999................ 1.92% 1.40% 1.45% 12%
LARGE COMPANY GROWTH PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... (0.30)% 0.77% 0.77% 9%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ (0.07)% 0.69% 0.72% 5%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.19)% 0.71% 0.72% 28%
JUNE 1, 1997(2) TO MAY 31,
1998........................ (0.03)% 0.67% 0.73% 13%
SMALL CAP INDEX PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 1.03% 0.33% 0.34% 42%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 0.53% 0.44% 0.50% 23%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.76% 0.44% 0.48% 26%
APRIL 9, 1998(2) TO MAY 31,
1998........................ 1.04% 0.52% 0.54% 2%
SMALL CAP VALUE PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 0.08% 0.68% 1.00% 124%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ (0.32)% 1.06% 1.10% 49%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.20)% 1.05% 1.10% 108%
OCTOBER 1, 1997(2) TO MAY 31,
1998........................ (0.17)% 1.08% 1.13% 79%
SMALL COMPANY GROWTH PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... (0.28)% 0.94% 0.94% 203%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ (0.22)% 0.94% 0.98% 55%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.25)% 0.98% 0.98% 154%
JUNE 1, 1997(2) TO MAY 31,
1998........................ (0.41)% 0.93% 0.98% 123%
SMALL COMPANY VALUE PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000.......... 1.37% 0.81% 1.00% 114%
JUNE 1, 1999 TO SEPTEMBER 30,
1999........................ 0.83% 1.00% 1.04% 28%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.76% 0.99% 1.04% 97%
JUNE 1, 1997(2) TO MAY 31,
1998........................ 0.69% 0.99% 1.04% 99%
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 5).
(2) COMMENCEMENT OF OPERATIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
197
<PAGE>
CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Core Trust ("Core Trust") is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended (the
"1940 Act"). Core Trust, created as the successor entity to the Norwest Core
Trust, currently has 14 separate investment portfolios. These financial
statements present the Disciplined Growth, Income Equity, Index,
International, International Equity, Large Company Growth, Small Cap Index,
Small Cap Value, Small Company Growth, and Small Company Value diversified
portfolios (each a "Portfolio" and collectively the "Portfolios").
Interests in the Portfolios are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective at the close of
business November 5, 1999, the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust, some of which invest in one or
more portfolios of Core Trust, through a tax-free exchange of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Core Trust in the preparation of its financial statements are in
conformity with generally accepted accounting principles ("GAAP") for
investment companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange which is usually 1:00 p.m.
(Pacific Time), and 3:00 p.m. (Central Time). Securities which are traded on a
national or foreign securities exchange or the National Association of
Securities Dealers Automated Quotation ("NASDAQ") National Market are valued
at the last reported sales price. In the absence of any sale of such
securities, and in the case of other securities, including U.S. Government
obligations, but excluding debt securities maturing in 60 days or less, the
valuations are based on the latest quoted bid prices. Securities denominated
in foreign currencies are translated into U.S. dollars using the closing rates
of exchange in effect on the day of valuation. Securities for which quotations
are not readily available are valued at fair value as determined by policies
set by the Board of Trustees.
Debt securities maturing in 60 days or less are valued at amortized cost. The
amortized cost method involves valuing a security at its cost, plus accretion
of discount or minus amortization of premium over the period until maturity,
which approximates market value.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Portfolio
is informed of the ex-dividend date. Dividend income from foreign securities
is recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
Foreign currency amounts are translated into U.S. dollars at the mean of the
bid and ask price of such currencies against U.S. dollars as follows:
(i) assets and liabilities at the rate of exchange at the end of the
respective period; and (ii) purchases and sales of securities and income and
expenses at the rate of exchange prevailing on the dates of such transactions.
The portion of the results of operations arising from changes in the exchange
rates and the portion due to fluctuations arising from changes in the market
prices of securities are not isolated. Such fluctuations are included with the
net realized and unrealized gain or loss on investments.
198
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
The International Portfolio may enter into forward contracts to purchase or
sell foreign currencies to protect against the effect on the U.S. dollar value
of the underlying portfolio or possible adverse movements in foreign exchange
rates. Risks associated with such contracts include the movement in value of
the foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. Fluctuations in the value of such contracts are
recorded as unrealized gain or loss; realized gain or loss includes net gain
or loss on contracts that have terminated by settlement or by the Portfolio
entering into offsetting commitments. The following short contracts were held
by the International Portfolio during the year ended September 30, 2000:
<TABLE>
<CAPTION>
Net Unrealized
Appreciation/
Date Currency Value Proceeds (Depreciation)
<S> <C> <C> <C> <C>
11/13/00 BRITISH POUND 14,262,000 $20,890,991 $(167,691)
11/20/00 JAPANESE YEN 2,667,134,000 24,787,490 (99,536)
12/7/00 JAPANESE YEN 1,695,236,000 16,059,150 195,131
12/14/00 JAPANESE YEN 4,852,228,000 46,446,137 985,612
</TABLE>
FUTURES CONTRACTS
Each Portfolio may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying
the securities. A futures contract is an agreement between parties to buy or
sell a security at a set price on a future date. Upon entering into such a
contract, a Portfolio is required to pledge to the broker an amount of cash,
U.S. Government obligations or other high-quality debt securities equal to the
minimum "initial margin" requirements of the exchange on which the futures
contract is traded. Pursuant to the contract, the Portfolio agrees to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
the value of the contract. Such receipts or payments are known as "variation
margin" and are recorded by the Portfolio as unrealized gains or losses. When
the contract is closed, the Portfolio records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed. Pursuant to regulations and/ or published
positions of the Securities and Exchange Commission (the "SEC") for long
futures positions, the Portfolio is required to segregate highly liquid
securities as permitted by the SEC in connection with futures transactions in
an amount generally equal to the entire value of the underlying contracts.
Risks of entering into futures contracts include the possibility that there
may be an illiquid market and that a change in the value of the contract may
not correlate with changes in the value of the underlying securities. On
September 30, 2000, the Index and Small Cap Index Portfolios held the
following long futures contracts:
<TABLE>
<CAPTION>
Notional Net Unrealized
Contracts Portfolio Type Expiration Date Contract Value (Depreciation)
<C> <S> <C> <C> <C> <C>
52 LONG INDEX PORTFOLIO S&P 500 INDEX DECEMBER 2000 $18,898,100 $(613,875)
RUSSELL 2000
52 LONG SMALL CAP INDEX PORTFOLIO INDEX DECEMBER 2000 13,624,000 (418,850)
</TABLE>
The Index and Small Cap Index Portfolios have pledged to brokers U.S.
Treasury bills for initial margin requirements with par values of $1,305,000
and $2,630,000, respectively.
REPURCHASE AGREEMENTS
Each Portfolio may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other Portfolios advised by
Wells Fargo Bank, N.A. ("WFB"). The repurchase agreements must be fully
collateralized based on values that are marked to market daily. The collateral
may be held by an agent bank under a tri-party agreement. It is the
Portfolios' custodian's responsibility to value collateral daily and to take
action to obtain additional collateral as necessary to maintain market value
equal to or greater than the resale price. The repurchase agreements held by
the Portfolios are collateralized by instruments such as U.S. Treasury,
federal agency, or high-grade corporate obligations.
SECURITY LOANS
The Portfolios may loan securities in return for securities and cash
collateral which is invested in various short-term fixed income securities.
The Portfolios may receive compensation for lending securities in the form of
fees or by retaining a portion of interest on the investment securities or
cash received as collateral. A Portfolio also continues to receive interest or
dividends on the securities loaned. Security loans are
199
<PAGE>
CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
secured at all times by collateral. The collateral is equal to at least 102%
of the market value of the securities loaned plus accrued interest. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the
loan are reflected in the value of the Portfolio. WFB receives 40% of income
on security lending activities and covers the expenses associated with
securities lending activities. As of September 30, 2000, the value of
securities on loan and the value of the related collateral were as follows:
<TABLE>
<CAPTION>
Portfolio Securities Collateral
<S> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $ 34,895,440 $ 39,530,827
INCOME EQUITY PORTFOLIO 144,155,837 156,745,679
INDEX PORTFOLIO 233,410,482 262,076,969
INTERNATIONAL PORTFOLIO 33,252,521 36,946,133
INTERNATIONAL EQUITY PORTFOLIO 20,347,019 22,056,352
LARGE COMPANY GROWTH PORTFOLIO 317,488,219 340,317,558
SMALL CAP INDEX PORTFOLIO 23,280,867 25,160,003
SMALL CAP VALUE PORTFOLIO 34,479,008 37,046,916
SMALL COMPANY GROWTH PORTFOLIO 74,845,331 76,780,034
SMALL COMPANY VALUE PORTFOLIO 17,105,754 18,046,194
</TABLE>
FEDERAL INCOME TAXES
Each Portfolio is treated as a separate entity for federal income tax
purposes. The Portfolios are not required to pay federal income taxes on their
net investment income and net capital gain as they are treated as partnerships
for federal income tax purposes. All interest, dividends, gain and loss of the
Portfolios are deemed to have been "passed through" to the interestholders in
proportion to their holdings of the Portfolios regardless of whether such
interest, dividends, or gain have been distributed by the Portfolios.
3. ADVISORY FEES
The Investment Advisor of each Portfolio is WFB. WFB has retained the
services of certain investment sub-advisors (Galliard Capital Management,
Inc., Peregrine Capital Management, Inc., Schroder Capital Management
International, Inc., Smith Asset Management Group, L.P., and Wells Capital
Management, Inc.) on selected Portfolios. The fees related to sub-advisory
services are borne directly by the Advisor and do not increase the overall
fees paid by the Portfolios to the Advisor. These sub-advisors provided the
same services to the predecessor portfolios. Prior to November 8, 1999, the
Disciplined Growth, Small Company Growth, and Small Company Value Portfolios
were charged an Advisory fee of 0.90%, the Index Portfolio was charged 0.15%,
the Income Equity Portfolio was charged 0.50%, the International Portfolio was
charged 0.45%, the International Equity Portfolio was charged 1.20%, the Large
Company Growth Portfolio was charged 0.65%, the Small Cap Index Portfolio was
charged 0.25%, and the Small Cap Value Portfolio was charged 0.95% as a
percentage of the average daily net assets of
200
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
each respective Portfolio. The current investment advisory fees and the
associated sub-advisor and sub-advisory fees are as follows, with the fees
expressed as a percentage of the average daily net assets.
<TABLE>
<CAPTION>
Portfolio Advisory Fee Subadvisor Sub-Advisory Fee
<S> <C> <C> <C>
DISCIPLINED GROWTH PORTFOLIO 0.75% SMITH ASSET MANAGEMENT $ 0-175 MILLION, 0.35%
175-225 MILLION, 0.00%
225-500 MILLION, 0.25%
GREATER THAN 500 MILLION, 0.20%
INCOME EQUITY PORTFOLIO 0.75% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.25%
200-400 MILLION, 0.20%
GREATER THAN 400 MILLION, 0.15%
INDEX PORTFOLIO 0.15% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.02%
GREATER THAN 200 MILLION, 0.01%
INTERNATIONAL PORTFOLIO 1.00% SCHRODER CAPITAL MANAGEMENT 0-100 MILLION, 0.45%
100-200 MILLION, 0.35%
200-600 MILLION, 0.20%
GREATER THAN 600 MILLION, 0.185%
INTERNATIONAL EQUITY PORTFOLIO 1.00% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.35%
200-400 MILLION, 0.25%
GREATER THAN 400 MILLION, 0.15%
LARGE COMPANY GROWTH PORTFOLIO 0.75% PEREGRINE CAPITAL MANAGEMENT 0-25 MILLION, 0.75%
25-50 MILLION, 0.60%
50-275 MILLION, 0.50%
GREATER THAN 275 MILLION, 0.30%
SMALL CAP INDEX PORTFOLIO 0.25% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.02%
GREATER THAN 200 MILLION, 0.01%
SMALL CAP VALUE PORTFOLIO 0.90% SMITH ASSET MANAGEMENT 0-110 MILLION, 0.45%
110-150 MILLION, 0.00%
150-300 MILLION, 0.30%
GREATER THAN 300 MILLION, 0.25%
SMALL COMPANY GROWTH PORTFOLIO 0.90% PEREGRINE CAPITAL MANAGEMENT 0-50 MILLION, 0.90%
50-180 MILLION, 0.75%
180-340 MILLION, 0.65%
340-685 MILLION, 0.50%
685-735 MILLION, 0.52%
GREATER THAN 735 MILLION 0.55%
SMALL COMPANY VALUE PORTFOLIO 0.90% PEREGRINE CAPITAL MANAGEMENT 0-200 MILLION, 0.50%
GREATER THAN 200 MILLION, 0.75%
</TABLE>
4. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Currently there are no administration fees charged to the Portfolios at the
core level. Prior to November 8, 1999, Forum Administrative Services, LLC
("FAdS") was the administrator to the Core Trust and received a fee with
respect to each Portfolio (other than International Portfolio) at an annual
rate of 0.05% of each Portfolio's average daily net assets. With respect to
International Portfolio, FAdS received a fee at an annual rate of 0.15% of the
Portfolio's average daily net assets.
201
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CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly Norwest Bank Minnesota,
N.A., serves as the custodian for each Portfolio and may appoint certain
sub-custodians to custody those portfolios' foreign securities and assets held
in foreign countries. WFB MN receives a fee with respect to each Portfolio at
an annual rate of 0.02% of each Portfolio's average daily net assets, with the
exception of the International and International Equity Portfolios. WFB MN
receives a fee with respect to the International and International Equity
Portfolios at an annual rate of 0.25% of each Portfolio's average daily net
assets. Prior to November 8, 1999, WFB MN received a fee with respect to each
Portfolio at an annual rate of 0.02% for the first $100 million of each
Portfolio's average daily net assets, declining to 0.01% of the average daily
net assets of each Portfolio in excess of $200 million, with the exception of
the International and International Equity Portfolios. Prior to November 8,
1999, WFB MN received a fee with respect to the International and
International Equity Portfolios at an annual rate of 0.07% of each Portfolio's
average daily net assets.
Forum Accounting Services, LLC provides portfolio accounting and
interestholder recordkeeping services to each Portfolio.
5. WAIVED FEES AND REIMBURSED EXPENSES
For the year ended September 30, 2000, fees waived by the Portfolios' service
providers were as follows:
<TABLE>
<CAPTION>
Portfolio Fees Waived by FAdS Fees Waived by WFB Total Fees Waived
<S> <C> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $12,440 $ 180,467 $ 192,907
INCOME EQUITY PORTFOLIO 59,627 2,320,723 2,380,350
INDEX PORTFOLIO 88,805 808,170 896,975
INTERNATIONAL PORTFOLIO 56,616 582,014 638,630
INTERNATIONAL EQUITY PORTFOLIO 0 271,975 271,975
LARGE COMPANY GROWTH PORTFOLIO 56,176 0 56,176
SMALL CAP INDEX PORTFOLIO 8,642 1,437 10,079
SMALL CAP VALUE PORTFOLIO 12,108 616,201 628,309
SMALL COMPANY GROWTH PORTFOLIO 24,605 1,064 25,669
SMALL COMPANY VALUE PORTFOLIO 8,635 315,724 324,359
</TABLE>
6. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date), for each
Portfolio for the year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
AGGREGATE PURCHASES AND SALES
Portfolio Purchases at Cost Sales Proceeds
<S> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $ 207,947,687 $ 255,855,529
INCOME EQUITY PORTFOLIO 221,612,590 319,039,532
INDEX PORTFOLIO 183,569,659 147,209,936
INTERNATIONAL PORTFOLIO 794,448,316 1,067,579,709
INTERNATIONAL EQUITY PORTFOLIO 280,317,360 170,388,575
LARGE COMPANY GROWTH PORTFOLIO 742,918,051 250,813,737
SMALL CAP INDEX PORTFOLIO 64,012,421 70,386,980
SMALL CAP VALUE PORTFOLIO 233,893,096 228,240,482
SMALL COMPANY GROWTH PORTFOLIO 1,497,287,172 1,621,479,570
SMALL COMPANY VALUE PORTFOLIO 201,133,504 191,472,641
</TABLE>
7. CONTRIBUTION OF SECURITIES
In connection with the consolidation of the Stagecoach Family of Funds and
the Norwest Advantage Funds into the Wells Fargo Funds Trust and the
acquisition of certain Great Plains Funds by the Wells Fargo Funds Trust,
certain investors contributed all or a portion of their net assets to the
portfolios listed in the following table:
<TABLE>
<CAPTION>
Portfolio Net Portfolio Assets Unrealized Gain
<S> <C> <C>
INCOME EQUITY PORTFOLIO $ 318,647,802 $ 75,910,691
SMALL CAP VALUE PORTFOLIO 23,129,461 3,402,031
</TABLE>
202
<PAGE>
INDEPENDENT AUDITORS' REPORT CORE PORTFOLIOS
--------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND PARTNERS
WELLS FARGO CORE TRUST:
We have audited the accompanying statements of assets and liabilities of
Disciplined Growth Portfolio, Income Equity Portfolio, Index Portfolio,
International Portfolio, International Equity Portfolio, Large Company Growth
Portfolio, Small Cap Index Portfolio, Small Cap Value Portfolio, Small Company
Growth Portfolio, and Small Company Value Portfolio, ten portfolios of Wells
Fargo Core Trust, (collectively the "Portfolios"), including the portfolios of
investments as of September 30, 2000, and the related statements of operations
for the year then ended, the statements of changes in net assets for the
periods presented on pages 190 to 196, and the financial highlights for the
periods presented on page 197. These financial statements and financial
highlights are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of the securities owned as of September 30,
2000, by correspondence with the custodian. As to securities purchased but not
yet received, we performed other appropriate auditing procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned portfolios of Wells Fargo Core Trust as of
September 30, 2000, the results of their operations, changes in their net
assets and their financial highlights for the periods indicated above in
conformity with accounting principles generally accepted in the United States
of America.
/s/ KPMG LLP
San Francisco, California
November 3, 2000
203
<PAGE>
STOCK FUNDS LIST OF ABBREVIATIONS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
204
<PAGE>
More information about Wells Fargo is available free upon request. To obtain
literature, please write, fax or e-mail to:
Wells Fargo Funds
P.O. Box 8266
Boston MA 02266-8266
Fax: 1-415-977-9301
E-mail: [email protected]
Or, call the WELLS FARGO FUNDS Sales & Service Desk at 1-800-552-9612.
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are distributed by STEPHENS INC., Member NYSE/SIPC. Wells Fargo
Bank, N.A., and its affiliates are not affiliate with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
Bulk Rate
[WELLS FARGO FUNDS LOGO] U.S. Postage
P.O. Box 8266 PAID
Boston, MA 02266-8266 Permit No. 2145
Newark, NJ
AR 001 (11/00)
