<PAGE>
As filed with the Securities and Exchange Commission
on July 1, 2000
Registration No. 333-74295; 811-09253
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 _____
Pre-Effective Amendment No. ___ _____
Post-Effective Amendment No. 12 x
-----
And
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 _____
Amendment No. 13 x
-----
________________________
WELLS FARGO FUNDS TRUST
(Exact Name of Registrant as specified in Charter)
111 Center Street
Little Rock, Arkansas 72201
(Address of Principal Executive Offices, including Zip Code)
__________________________
Registrant's Telephone Number, including Area Code: (800) 643-9691
Richard H. Blank, Jr.
c/o Stephens Inc.
111 Center Street
Little Rock, Arkansas 72201
(Name and Address of Agent for Service)
With a copy to:
Robert M. Kurucza, Esq.
Marco E. Adelfio, Esq.
Morrison & Foerster LLP
2000 Pennsylvania Ave., N.W.
Washington, D.C. 20006
It is proposed that this filing will become effective (check appropriate box):
x Immediately upon filing pursuant to Rule 485(b), or
---
___ on _________ pursuant to Rule 485(b)
___ 60 days after filing pursuant to Rule 485(a)(1), or
___ on _________ pursuant to Rule 485(a)(1)
___ 75 days after filing pursuant to Rule 485(a)(2), or
___ on _________ pursuant to Rule 485(a)(2)
If appropriate, check the following box:
___ this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
<PAGE>
EXPLANATORY NOTE
----------------
This Post-Effective Amendment No. 12 is being filed to add to the
Registration Statement of Wells Fargo Funds Trust (the "Trust"), the audited
financial statements and certain related financial information for the fiscal
year ended February 29, 2000 for the LifePath Funds of the Trust, and to make
certain other non-material changes to the Registration Statement.
This Post-Effective Amendment does not affect the Registration Statement
for any of the Trust's other funds.
<PAGE>
WELLS FARGO FUNDS TRUST
-----------------------
Cross Reference Sheet
---------------------
Form N-1A Item Number
---------------------
Part A Prospectus Captions
------ -------------------
1 Front and Back Cover Pages
2 Objectives and Principal Strategies
Important Risks
3 Summary of Expenses
Example of Expenses
4 Objectives and Principal Strategies
Important Risks
See Individual Fund Summaries
General Investment Risks
5 Not applicable
6 Organization and Management of the Funds
7 Your Account
How to Buy Shares
How to Sell Shares
Exchanges
Dividends and Distributions
Taxes
8 Distribution Plan
Exchanges
9 See Individual Fund Summaries
Part B Statement of Additional Information Captions
------ --------------------------------------------
10 Cover Page and Table of Contents
11 Historical Fund Information
Cover Page
12 Investment Restrictions
Additional Investment Policies
Risk Factors
13 Management
14 Capital Stock
15 Management
16 Portfolio Transactions
17 Capital Stock
18 Determination of Net Asset Value
Additional Purchase and Redemption Information
19 Federal Income Taxes
20 Management
21 Performance Calculations
22 Financial Information
Part C Other Information
------ -----------------
23-30 Information required to be included in Part C is set forth under
the appropriate Item, so numbered, in Part C of this Document.
<PAGE>
WELLS
FARGO
FUNDS
-----
WELLS FARGO LIFEPATH FUNDS
--------------
PROSPECTUS
--------------
Please read this Prospectus and keep it for future reference. It is designed to
provide you with important information and to help you decide if a Fund's goals
match your own.
These securities have not been approved or disapproved by the U.S. Securities
and Exchange Commission ("SEC"), nor has the SEC passed upon the accuracy or
adequacy of this Prospectus. Any representation to the contrary is a criminal
offense.
Fund shares are NOT deposits or other obligations of, or issued, endorsed or
guaranteed by Wells Fargo Bank, N.A. ("Wells Fargo Bank") or any of its
affiliates. Fund shares are NOT insured or guaranteed by the U.S. Government,
the Federal Deposit Insurance Corporation ("FDIC") or any other government
agency. AN INVESTMENT IN A FUND INVOLVES CERTAIN RISKS, INCLUDING POSSIBLE LOSS
OF PRINCIPAL.
LifePath Opportunity Fund
LifePath 2010 Fund
LifePath 2020 Fund
LifePath 2030 Fund
LifePath 2040 Fund
Class A, Class B, Class C
JULY 1 2000
<PAGE>
[INTENTIONALLY LEFT BLANK]
<PAGE>
<TABLE>
<CAPTION>
Table of Contents LifePath Funds
---------------------------------------------------------------------------------------------
<S> <C> <C>
Overview Objectives and Principal Strategies 4
This section contains important Summary of Important Risks 6
summary information about the Performance History 8
Funds.
Summary of Expenses 14
Key Information 18
---------------------------------------------------------------------------------------------
The Funds LifePath Opportunity Fund 19
This section contains important LifePath 2010 Fund 19
information about the individual LifePath 2020 Fund 19
Funds.
LifePath 2030 Fund 19
LifePath 2040 Fund 19
General Investment Risks 30
Organization and Management
of the Funds 36
---------------------------------------------------------------------------------------------
Your Investment A Choice of Share Classes 38
Turn to this section for Reduced Sales Charges 41
information on how to open an Exchanges 44
account and how to buy, sell and Your Account 46
exchange Fund shares.
How to Buy Shares 47
How to Sell Shares 50
---------------------------------------------------------------------------------------------
Reference Additional Services and
Other Information 52
Look here for additional Table of Predecessors 54
information and term Glossary 55
definitions. Prospectus/Supplemental
Annual Report Information 58
</TABLE>
<PAGE>
LifePath Funds
---------------------------------------------------------------------------
See the individual Fund descriptions in this Prospectus for further details.
Words appearing in italicized print and highlighted in color are defined in the
Glossary.
The LifePath Funds all have the same objective. They are designed to maximize
assets for retirement or for other purposes consistent with the quantitatively
measured risk investors may be willing to accept given their stated investment
time horizons. Each Fund is managed for investors planning to retire or to begin
to withdraw substantial portions of their investment in the Fund's target year.
In buying securities for each Fund, Barclays Global Fund Advisors ("BGFA"), the
Funds' investment advisor, does not select individual companies. Instead, BGFA
focuses on selecting a mix of indexes by measuring their risk level and expected
returns based on a proprietary set of criteria. The Funds then allocate a
portion of their assets to each index appropriate for each individual Fund.
Where possible, the Funds buy all the securities that comprise the index. If the
index includes too many securities to buy them all, the Funds buy a
representative sample. The Funds seek to match the index's return as closely as
possible. The Funds focus on the selection of indexes or asset classes and do
not try to avoid individual under-performing securities investments nor do they
try to pick individual investments that might outperform the index.
This strategy stems from the belief that asset allocation decisions--which index
or investment category you choose--matter more to overall investment performance
than individual security selection--which stock or bond you choose.
FUND OBJECTIVE
The Fund is managed for investors who have
LifePath Opportunity Fund retired or who are planning to retire (or
begin to withdraw substantial portions of
their investment) approximately in the year
2000.
The Fund is managed for investors planning
LifePath 2010 Fund to retire or begin to withdraw substantial
portions of their investment approximately
in the year 2010.
The Fund is managed for investors planning
LifePath 2020 Fund to retire or begin to withdraw substantial
portions of their investment approximately
in the year 2020.
The Fund is managed for investors planning
LifePath 2030 Fund to retire or begin to withdraw substantial
portions of their investment approximately
in the year 2030.
The Fund is managed for investors planning
LifePath 2040 Fund to retire or begin to withdraw substantial
portions of their investment approximately
in the year 2040.
4 LifePath Funds Prospectus
<PAGE>
-------------------------------------------------------------------------------
The LifePath Funds pursue a strategy of allocating and reallocating investments
among indexes representing stocks, bonds, and money market instruments to
capture returns and reduce risk consistent with a stated investment horizon.
Funds with longer time horizons invest more of their assets in stocks to provide
capital appreciation over the long term. Funds with shorter time horizons
replace some of their stock holdings with bonds and money market instruments to
reduce risk and price volatility. Funds with shorter time horizons also have
lower expected returns than Funds with longer time horizons.
PRINCIPAL STRATEGY
We invest in a combination of fixed-income, money market and equity securities
using an asset allocation strategy that is designed to maintain the lowest risk
profile of all the LifePath Funds. The LifePath Opportunity Fund continues to
allocate a portion of its assets to stocks and bonds in addition to money market
instruments, because we believe that most investors are still willing to take
some risks in pursuing returns even while drawing on their investments. On
average, we expect that about 20% of this Fund's assets will be invested in
stocks, with the rest in bonds and money market instruments.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2010. As of the end of the Fund's
last fiscal year, the LifePath 2010 Fund held about 45% of its assets in
stocks, 49% of its assets in bonds, and the rest of its assets in money market
instruments. As the year 2010 approaches, the Fund will increasingly resemble
the LifePath Opportunity Fund.
We invest in a combination of equity fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2020. As of the end of the Fund's
last fiscal year, the LifePath 2020 Fund held about 67% of its assets in
stocks, 29% of its assets in bonds, and the rest of its assets in money market
instruments. As the stated time horizon approaches, the allocation will become
less risky and have lower expected returns.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2030. As of the end of the Fund's
last fiscal year, the LifePath 2030 Fund held about 83% of its assets in
stocks, 15% of its assets in bonds, and the rest of its assets in money market
instruments. As the stated time horizon approaches, the allocation will become
less risky and have lower expected returns.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2040. As of the end of the Fund's
last fiscal year, the LifePath 2040 Fund held about 98% of its assets in
stocks, 1% of its assets in bonds, and a small portion of its assets in money
market instruments. As the stated time horizon approaches, the allocation will
become less risky and have lower expected returns.
LifePath Funds Prospectus 5
<PAGE>
Summary of Important Risks
--------------------------------------------------------------------------------
This section summarizes important risks that are common to all of the Funds
described in this Prospectus, and important risks that relate specifically to
particular Funds. Both are important to your investment choice. Additional
information about these and other risks is included in:
. the individual fund descriptions later in this Prospectus;
. under the "General Investment Risks" section beginning on page 30; and
. in the Funds' Statement of Additional Information.
An investment in a Fund is not a deposit of Wells Fargo Bank and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. It is possible to lose money by investing in a Fund.
COMMON RISKS FOR THE FUNDS
Equity Securities
The LifePath Funds invest in equity securities; and the longer time horizon
Funds, such as the LifePath 2030 and LifePath 2040 Funds, invest a majority
of their assets in equity securities. This type of investment is subject to
equity market risk. This is the risk that stocks prices will fluctuate and
can decline and reduce the value of a Fund's portfolio. As of the date of
this Prospectus, the equity markets, as measured by the S&P 500 Index and
other commonly used indexes, are trading at or close to record levels. There
can be no guarantee that these levels will continue.
Foreign Securities
The LifePath Funds may invest in foreign equity and debt securities. Foreign
company investments (made through American Depositary Receipts ("ADRs") and
similar instruments), foreign obligations, and emerging market investments
are subject to additional risk, including less liquidity and greater price
volatility. A Fund's investment in foreign companies, foreign obligations,
and emerging markets are also subject to special risks associated with
international investing, including currency, political, regulatory and
diplomatic risks. The shorter time horizon Funds generally invest less than
15% of their assets in foreign or emerging market securities. Foreign
obligations, as well as securities of U.S. branches of foreign banks and
foreign branches of U.S. banks are subject to additional risks, such as
political turmoil, the imposition of foreign withholding taxes, and the
establishment of exchange controls or the adoption of other foreign
governmental restrictions that may affect the payment of principal and/or
interest on these securities.
Fixed-Income Securities
The LifePath Funds invest in debt instruments, such as notes and bonds; and
the shorter time horizon funds, such as the LifePath Opportunity and LifePath
2010 Funds, invest a majority of their assets in debt instruments. These
types of investments are subject to credit risks and interest rate risk.
Credit risk is the possibility that an issuer of an instrument will be unable
to make interest payments or repay principal. Changes in the financial
strength of an issuer or changes in the credit rating of a security may
affect its value. Interest rate risk is the risk that interest rates may
increase, which will reduce the resale value of instruments in a Fund's
portfolio. The Funds may invest in bonds of any maturity length, depending on
the recommended asset allocation. However, the Funds may only invest in
securities of investment grade quality, that is, ranked in the four highest
categories. Debt instruments with longer maturities are generally more
sensitive to interest rates changes than those with shorter maturities.
Changes in market interest rates do not affect the rate payable on debt
instruments held in a Fund, unless the instrument has adjustable or variable
rate features, which can reduce interest rate risk. Changes in market
interest rates, may also extend or shorten the duration of certain types of
instruments, such as asset-backed securities, thereby affecting their value
and the return on your
6 LifePath Funds Prospectus
<PAGE>
-------------------------------------------------------------------------------
COMMON RISKS FOR THE FUNDS (Continued)
investment. Mortgage- and asset-backed securities and collateralized mortgage
obligations ("CMOs") are subject to prepayment acceleration and extension
risk, either of which can reduce the rate of return on the portfolio.
Asset-backed securities are subject to risk of default on the underlying
assets, particularly during periods of economic downturn.
Asset Allocation Models
The Funds use investment models to assess market conditions and recommend asset
mixes appropriate to the risk tolerance of each Fund. We seek allocations that
offer the highest expected return while keeping within a Fund's statistically
determined risk of loss. In other words, the Funds seek the highest expected
return in exchange for the level of risk appropriated to the Fund. There is no
guarantee that the model will make accurate determinations or that an asset
class will perform as expected. We seek to replicate the performance of the
various indexes in a Fund's allocation. During periods when an index loses
value, that portion of your investment will also lose value. We may incur a
higher than average portfolio turnover ratio resulting from allocation shifts
recommended by the model. Portfolio turnover can result in higher fees and may
trigger tax consequences.
LifePath Funds Prospectus 7
<PAGE>
Performance History
--------------------------------------------------------------------------------
The information on the following pages shows you how each Fund has
performed and illustrates the variability of a Fund's returns over
time. Each Fund's average annual returns from inception and for one-year
periods are compared to the performance of several appropriate broad-based
indexes. Please remember that past performance is no guarantee of future
results.
LifePath Opportunity Fund Class A Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 17.16
'96 6.04
'97 10.43
'98 10.14
'99 4.50
</TABLE>
Best Qtr.: Q2 '97 . 5.62% Worst Qtr.: Q2 '99 . -0.49%
* Returns do not reflect sales charges. If they did, returns would be
lower. The Fund's year-to-date performance through March 31, 2000 was
1.48%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
for the period ended 12/31/99 1 year 5 year Inception/6/
<S> <C> <C> <C>
Class A (Incept. 3/1/94) -1.53 8.28 6.70
Class B (Incept. 6/30/98)/2/ -0.94 8.76 7.14
Class C (Incept. 12/1/98)/2/ 2.95 9.01 7.24
S&P 500 Index/3/ 21.03 28.54 24.17
LB Aggregate Bond Index/4/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/5/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for periods prior to the inception of this Class
reflects the performance of the Class A shares adjusted to reflect this
Class's fees and expenses.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond
Index (also shown in the table) of certain asset classes in which the
Fund invests. It will be used as the appropriate broad-based securities
market index for this Fund going forward.
5. Lehman Brothers Government/Corporate Bond Index.
6. March 1, 1994.
8 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
LifePath 2010 Fund Class A Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 23.56
'96 10.50
'97 16.27
'98 15.67
'99 9.10
</TABLE>
Best Qtr.: Q4 '98 . 9.99% Worst Qtr.: Q3 '98 . -3.57%
* Returns do not reflect sales charges. If they did, returns would be
lower. The Fund's year-to-date performance through March 31, 2000 was
1.79%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class A (Incept. 3/1/94) 2.80 13.56 11.19
Class B (Incept. 3/1/97)/2/ 3.62 14.06 11.63
Class C (Incept. 12/1/98)/2/ 7.50 14.28 11.71
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for periods prior to the inception of this Class reflects
the performance of the Class A shares adjusted to reflect this Class's fees
and expenses.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond
Index (also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
LifePath Funds Prospectus 9
<PAGE>
Performance History
--------------------------------------------------------------------------------
LifePath 2020 Fund Class A Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 27.13
'96 13.21
'97 20.90
'98 19.59
'99 13.72
</TABLE>
Best Qtr.: Q4 '98 . 14.48% Worst Qtr.: Q3 '98 . -6.81%
* Returns do not reflect sales charges. If they did, returns would be
lower. The Fund's year-to-date performance through March 31, 2000 was
2.10%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class A (Incept. 3/1/94) 7.15 17.40 14.46
Class B (Incept. 3/1/97)/2/ 8.18 17.98 14.95
Class C (Incept. 12/1/98)/2/ 12.13 18.17 15.02
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for periods prior to the inception of this Class reflects
the performance of the Class A shares adjusted to reflect this Class's fees
and expenses.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond
Index (also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
10 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
LifePath 2030 Fund Class A Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 30.76
'96 15.32
'97 24.14
'98 22.40
'99 16.46
</TABLE>
Best Qtr.: Q4 '98 . 17.93% Worst Qtr.: Q3 '98 . -9.23%
* Returns do not reflect sales charges. If they did, returns would be
lower. The Fund's year-to-date performance through March 31, 2000 was
2.57%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class A (Incept. 3/1/94) 9.74 20.25 16.78
Class B (Incept. 3/1/97)/2/ 10.86 20.83 17.25
Class C (Incept. 12/1/98)/2/ 14.77 20.99 17.30
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for periods prior to the inception of this Class reflects
the performance of the Class A shares adjusted to reflect this Class's fees
and expenses.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond
Index (also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994
LifePath Funds Prospectus 11
<PAGE>
Performance History
--------------------------------------------------------------------------------
LifePath 2040 Fund Class A Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 32.21
'96 18.41
'97 26.49
'98 25.17
'99 21.02
</TABLE>
Best Qtr.: Q4 '98 . 21.54% Worst Qtr.: Q3 '98 . -11.63%
* Returns do not reflect sales charges. If they did, returns would be
lower. The Fund's year-to-date performance through March 31, 2000 was
2.50%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class A (Incept. 3/1/94) 14.03 23.10 19.34
Class B (Incept. 3/1/97)/2/ 15.41 23.69 19.82
Class C (Incept. 7/1/98)/2/ 19.41 23.86 19.89
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for periods prior to the inception of this Class reflects
the performance of the Class A shares adjusted to reflect this Class's fees
and expenses.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond
Index (also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
12 LifePath Funds Prospectus
<PAGE>
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<PAGE>
LifePath Funds
------------------------------------------------------------------------------
These tables are intended to help you understand the various costs and expenses
you will pay as a shareholder in a Fund. These tables do not reflect charges
that may be imposed in connection with an account through which you hold Fund
shares. A broker/dealer or financial institution maintaining the account through
which you hold Fund shares may charge separate account, service or transaction
fees on the purchase or sale of Fund shares that would be in addition to the
fees and expenses shown here.
SHAREHOLDER FEES
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
All Funds All Funds All Funds
-------------------------------------------
CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maximum sales charge (load) imposed on purchases (as a percentage of
offering price) 5.75% None None
Maximum deferred sales charge (load) (as a percentage of the lower of
the net asset value ("NAV") at purchase or the NAV at redemption) None/1/ 5.00% 1.00%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
LifePath LifePath
Opportunity Fund 2010 Fund
--------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Management Fees 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
Distribution (12b-1) Fees 0.25% 0.75% 0.75% 0.25% 0.75% 0.75%
Other Expenses/2/ 0.72% 0.68% 0.63% 0.64% 0.66% 0.62%
-----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES/3/ 1.52% 1.98% 1.93% 1.44% 1.96% 1.92%
-----------------------------------------------------------------------------------------------------------------------
Fee Waivers 0.22% 0.18% 0.13% 0.14% 0.16% 0.12%
-----------------------------------------------------------------------------------------------------------------------
NET EXPENSES/4/ 1.30% 1.80% 1.80% 1.30% 1.80% 1.80%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
/1/ Class A shares that are purchased at NAV in amounts of $1,000,000 or more
may be assessed a 1.00% CDSC if they are redeemed within one year from the
date of purchase. See "A Choice of Share Classes" for further information.
All other Class A shares will not have a CDSC.
/2/ Other expenses are based on estimated amounts for the current fiscal year
due to various contract changes that became effective on November 8, 1999.
/3/ Expenses include expenses of the Master Portfolio.
/4/ The Administrator has committed through June 30, 2001 to waive fees and/or
reimburse expenses to the extent necessary to maintain the Fund's net
operating expense ratio shown.
14 LifePath Funds Prospectus
<PAGE>
Summary of Expenses
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 Fund 2030 Fund 2040 Fund
-----------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
0.25% 0.75% 0.75% 0.25% 0.75% 0.75% 0.25% 0.75% 0.75%
0.59% 0.64% 0.61% 0.61% 0.69% 0.77% 0.74% 0.87% 0.73%
-----------------------------------------------------------------------------------------------------
1.39% 1.94% 1.91% 1.41% 1.99% 2.07% 1.54% 2.17% 2.03%
-----------------------------------------------------------------------------------------------------
0.09% 0.14% 0.11% 0.11% 0.19% 0.27% 0.24% 0.37% 0.23%
-----------------------------------------------------------------------------------------------------
1.30% 1.80% 1.80% 1.30% 1.80% 1.80% 1.30% 1.80% 1.80%
-----------------------------------------------------------------------------------------------------
</TABLE>
LifePath Funds Prospectus 15
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
EXAMPLE OF EXPENSES
These examples are intended to help you compare the cost of investing in a Fund
with the cost of investing in other mutual funds. The examples assume a fixed
rate of return and that fund operating expenses remain the same. Your actual
costs may be higher or lower than those shown.
You would pay the following expenses on a $10,000 investment assuming a 5%
annual return and that you redeem your shares at the end of each period:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
LifePath LifePath
Opportunity Fund 2010 Fund
------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 YEAR $ 700 $ 683 $ 283 $ 700 $ 683 $ 283
3 YEARS $1,007 $ 904 $ 594 $ 991 $ 900 $ 591
5 YEARS $1,337 $1,251 $1,030 $1,304 $1,242 $1,026
10 YEARS $2,266 $2,118 $2,243 $2,189 $2,075 $2,234
------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
You would pay the following expenses on a $10,000 investment assuming a 5%
annual return and that you do NOT redeem your shares at the end of the periods
shown:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
LifePath LifePath
Opportunity Fund 2010 Fund
------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 YEAR $ 700 $ 183 $ 183 $ 700 $ 183 $ 183
3 YEARS $1,007 $ 604 $ 594 $ 991 $ 600 $ 591
5 YEARS $1,337 $1,051 $1,030 $1,304 $1,042 $1,026
10 YEARS $2,266 $2,118 $2,243 $2,189 $2,075 $2,234
------------------------------------------------------------------------------------------------
</TABLE>
16 LifePath Funds Prospectus
<PAGE>
Summary of Expenses
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 Fund 2030 Fund 2040 Fund
------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 700 $ 683 $ 283 $ 700 $ 683 $ 283 $ 700 $ 683 $ 283
$ 981 $ 896 $ 589 $ 985 $ 906 $ 623 $1,011 $ 944 $ 614
$1,284 $1,234 $1,021 $1,292 $1,255 $1,089 $1,345 $1,331 $1,072
$2,140 $2,044 $2,224 $2,160 $2,082 $2,379 $2,285 $2,239 $2,340
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
LifePath LifePath LifePath
2020 Fund 2030 Fund 2040 Fund
------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 700 $ 183 $ 183 $ 700 $ 183 $ 183 $ 700 $ 183 $ 183
$ 981 $ 596 $ 589 $ 985 $ 606 $ 623 $1,011 $ 644 $ 614
$1,284 $1,034 $1,021 $1,292 $1,055 $1,089 $1,345 $1,131 $1,072
$2,140 $2,044 $2,224 $2,160 $2,082 $2,379 $2,285 $2,239 $2,340
------------------------------------------------------------------------------------------
</TABLE>
LifePath Funds Prospectus 17
<PAGE>
Key Information
--------------------------------------------------------------------------------
What is a "Master/Feeder Fund Arrangement" and why is it used?
The Funds in this Prospectus are feeder funds in a master/feeder fund
arrangement. In a master/feeder fund arrangement, a "feeder" fund
invests all of its assets in a "master" fund that has an identical
investment objective and policies as the feeder fund. Feeder funds
investing in the same master fund can reduce their expenses through
sharing the costs of managing a large pool of assets. References to the
activities of the LifePath Funds are understood to be references to the
master fund (also described as the "Master Portfolio") as applicable.
-----------------------------------------------------------------------
Key Terms
An "asset class" is a broad category of investments such as "bonds" or
"equities." "Allocation" refers to the distribution of portfolio assets
among two or more asset classes. The LifePath Funds (they may also be
referred to as the "Stagecoach Funds" or the "Funds") offered in this
Prospectus are managed using a computer model that recommends the
allocation of assets according to a Fund's investment objective and
risk tolerance.
-----------------------------------------------------------------------
Important information you should look for as you decide to invest in a
Fund:
The summary information on the previous pages is designed to provide
you with an overview of each Fund. The sections that follow provide
more detailed information about the investments and management of each
Fund.
-----------------------------------------------------------------------
Investment Objective and Investment Strategies
The investment objective of each Fund in this Prospectus is
non-fundamental, that is, it can be changed by a vote of the Board of
Trustees alone. The objectives and strategies descriptions for each
Fund tell you:
. what the Fund is trying to achieve;
. how we intend to invest your money; and
. what makes a Fund different from the other Funds offered in this
Prospectus.
-----------------------------------------------------------------------
Permitted Investments
A summary of the Fund's key permitted investments and practices.
-----------------------------------------------------------------------
Important Risk Factors
Describes the key risk factors for the Fund, and includes risks
described in the "Summary of Important Risks" and "General Investment
Risks" sections.
Words appearing in italicized print and highlighted in color are
defined in the Glossary.
18 LifePath Funds Prospectus
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
Investment Objective
Each LifePath Fund seeks to provide investors with an asset allocation
strategy designed to maximize assets for retirement or for other
purposes consistent with the quantitatively measured risk that
investors, on average, may be willing to accept given their investment
time horizons. Investors are encouraged to select a particular LifePath
Fund based on their investment time horizon. Specifically:
. LifePath Opportunity Fund is managed for investors who have retired
or who are planning to retire (or begin to withdraw substantial
portions of their investment) approximately in the year 2000. The
Fund also may be appropriate for investors with a shorter time
horizon. The Fund does not terminate in the Year 2000, but will
continue with the lowest risk profile of all the LifePath Funds. It
is expected that when the LifePath 2010 Fund's target date
arrives, the LifePath 2010 Fund will be combined with the LifePath
Opportunity Fund under the same investment strategy. The LifePath
Opportunity Fund will continue to follow an asset allocation
strategy that will invest approximately 20% equity securities, with
the remainder in debt securities and cash.
. LifePath 2010 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2010.
. LifePath 2020 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2020.
. LifePath 2030 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2030.
. LifePath 2040 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2040.
Investment Strategies
The LifePath Funds were the first Funds of their kind to offer a
flexible investment strategy designed to change over specific time
horizons. Typically, long-term investment goals are pursued with a more
aggressive mix of equities and fixed-income securities than short-term
goals. The allocation of each Fund gradually grows more conservative as
the year in the Fund's title approaches. You are encouraged to choose
the LifePath Fund whose title year most closely matches the year during
which you expect to begin regularly redeeming shares.
Keep in mind, however, that the year in each Fund's title also serves
as a guide to the relative aggressiveness of each Fund, where the
LifePath 2040 Fund has the most aggressive asset allocation and the
LifePath Opportunity Fund has the least aggressive asset allocation. If
you have a low risk tolerance, you may not wish to invest in the Life
Path 2040 Fund, for example, even if you do not expect to retire for
another forty years. Conversely, you may feel comfortable choosing a
more aggressive LifePath Fund for a near-term investment goal.
We allocate and reallocate assets among a wide range of indexes
representing U.S. and international common stocks, fixed-income
securities and money market instruments according to the recommended
mix suitable for each Fund's risk level. Under normal conditions, the
LifePath Opportunity Fund will typically invest 80% of its assets in
fixed-income classes and up to 20% in equities as it seeks stable
income production and reduced volatility. The more aggressive Funds may
invest in up to 100% stocks, but as their title year approaches, their
allocation will increasingly resemble the current allocation of the
LifePath Opportunity Fund.
LifePath Funds Prospectus 19
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
The LifePath Opportunity Fund will not terminate when it reaches the
year 2000. Instead, the Fund will enter its "post target" strategy
during which it will seek to maximize total return consistent with
assuming the lowest risk of any LifePath series. The Fund will continue
to follow an asset allocation strategy among three broad investment
classes: equity and debt securities of domestic and foreign issuers and
cash in the form of money market instruments. However, unlike the
remaining LifePath Funds with target dates, during its post-target
strategy the LifePath Opportunity Fund will no longer reduce its
investment risk through time. Instead, the Fund is expected to have a
long-term average mix of approximately 20% equity securities, with the
remainder in AAA-rated debt securities and money market instruments. In
the same manner as all LifePath Funds, the LifePath Opportunity Fund
will continue to employ a tactical asset allocation component, which
will alter the investment mix to account for changing expected risks
and opportunities. When other LifePath Funds reach their target date,
it is expected that shareholders will be asked to approve combining
such Funds with the LifePath Opportunity Fund.
Asset Allocation Decisions
In buying securities for each Fund, Barclays Global Fund Advisors
("BGFA"), the Funds' investment advisor, does not select individual
companies. Instead, BGFA focuses on selecting a mix of indexes by
measuring their risk level and expected returns based on a proprietary
set of criteria. The Funds then allocate a portion of their assets to
each index appropriate for each individual Fund. Where possible, the
Funds buy all the securities that comprise the index. If the index
includes too many securities to buy them all, the Funds buy a
representative sample. The Funds seek to match the index's return as
closely as possible. The Funds focus on the selection of indexes or
asset classes and do not try to avoid individual under-performing
securities investments nor do they try to pick individual investments
that might outperform the index.
This strategy stems from the belief that asset allocation
decisions--which index or investment category you choose--matter more
to overall investment performance than individual security
selection--which stock or bond you choose.
Risk Tolerance
Two general rules of investing have shaped the Funds' strategies:
. Higher investment returns usually go hand-in-hand with higher risk;
put another way, the greater its potential for loss. Historically,
for example, stocks have outperformed bonds, but the worst year for
stocks on record was much worse than the worst year for bonds.
. The longer an investors' time horizon, the greater their risk
tolerance. Their investments have more time to recoup their losses.
The LifePath Funds with longer time horizons take more risks. This
normally gives investors the potential for greater returns than the
Funds with shorter time horizons. As a Fund approaches its time
horizon, and its investors have less time to recover from market
declines, the Funds systematically reduce the level of risk. This
systematic shift toward more stable investments should help secure the
value of your LifePath investment as the time nears for you to begin
drawing on it.
BGFA does not limit the analysis to long-term expectations. The Funds
also take into account short-term market conditions. If conditions in a
market have increased risk levels of an investment type or index to a
point that its risk outweighs its expected returns, the Funds will not
allocate as much of their assets to it as it otherwise might.
Conversely, the Funds may reduce their allocation, even when risks have
not increased, because its expected return has fallen. This usually
happens because prices in a market have risen so high that the
potential for further gains appears limited.
20 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Model-Driven Decisions
The Fund's assets are allocated across investment groups according to a
sophisticated mathematical model that was developed in 1993 and is
continually refined. BGFA's investment professionals conduct ongoing
research to enhance the model and to ensure it is keeping pace with the
world's constantly changing financial markets. Using this model, BGFA gains
a consistent and objective structure for making investment decisions.
Unlike traditional investment funds that employ individual portfolio
managers who make decisions on a more subjective basis, BGFA applies a
scientific approach to investing through the use of such models.
After a Fund Reaches its Time Horizon
By the time a Fund reaches the decade identified by its name, it has
reached its least aggressive state in terms of building capital. This does
not mean that it invests exclusively in money market instruments. Rather,
because BGFA believes that most investors are still willing to take some
risks in pursuing returns even while drawing on their investments, the Fund
continues to allocate a portion of its assets to stocks and bonds, in
addition to money market instruments. On average, BGFA expects that about
20% of the Fund's assets will be invested in stocks, with the remainder in
AAA-rated debt securities and money market instruments.
Permitted Investments
We do not select individual securities based on traditional investment
analysis. Instead, we allocate investments across a mix of indexes
representing as many as 17 asset classes by measuring their risk levels and
expected returns based on a proprietary set of criteria. The Funds then
allocate a portion of their assets to each index appropriate for each
individual Funds. Where possible, the Funds buy all the securities that
comprise an index. If the index includes too many securities to buy them
all, the Funds buy a representative sample. The Funds seek to match each
index's total return as closely as possible.
We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investment, either to
maintain liquidity or for short-term defensive purpose when we believe it
is in the best interests of shareholders to do so. During these periods,
the Fund may not achieve its objective of maximizing assets for retirement.
We seek exposure to U.S. and foreign equity markets by investing in
securities of the following stock indexes as closely as possible:
. The S&P/BARRA Value Stock Index, which consists primarily of large-
capitalization of U.S. stocks with lower than average price-to-book
ratios;
. The S&P/BARRA Growth Stock Index, which consists primarily of
large-capitalization U.S. stocks with higher than average price-to-
book ratios;
. The Intermediate Capitalization Value Index, which consists primarily
of medium-capitalization U.S. stocks with lower than average price-to-
book ratios;
. The Intermediate Capitalization Growth Index, which consists primarily
of medium-capitalization U.S. stocks with higher than average
price-to-book ratios;
. The Intermediate Capitalization Utility Stock Index, which consists
primarily of medium-capitalization U.S. utility stocks;
. The Micro Capitalization Market Index, which consists primarily of
small-capitalization U.S. stocks;
LifePath Funds Prospectus 21
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
. The Small Capitalization Value Stock Index, which consists
primarily of small-capitalization U.S. stocks with lower than
average price-to-book ratios;
. The Small Capitalization Growth Stock Index, which consists
primarily of small-capitalization U.S. stocks with higher than
average price-to-book ratios;
. The Morgan Stanley Capital International Japan Index, consisting
primarily of large-capitalization Japanese stocks; and
. The Morgan Stanley Capital International Europe, Australia, Far
East ex-Japan Index, consisting primarily of non-Japanese foreign
stocks.
We seek exposure to the U.S. fixed-income markets by investing in
securities representative of the following indexes:
. The Lehman Brothers Long-Term Government Bond Index, which consists
of all U.S. Government bonds with maturities of at least ten years;
. The Lehman Brothers Intermediate-Government Bond Index, which
consists of all U.S. Government bonds with maturities of less than
ten years but more than one year;
. The Lehman Brothers Long-Term Corporate Bond Index, which consists
of all investment-grade U.S. corporate bonds with maturities of at
least ten years;
. The Lehman Brothers Intermediate-Term Corporate Bond Index, which
consists of all investment-grade U.S. corporate bonds with
maturities of less than ten years but more than one year;
. The Lehman Brothers Mortgage-Backed Securities Index, which
consists of all fixed-coupon mortgage pass-throughs issued by or
backed by the U.S. Government or its agencies.
We seek foreign debt market exposure through investment in securities
representative of the Solomon Brothers Non-U.S. World Government Bond
Index, which consists of a range of foreign government bonds with
maturities of greater than one year.
We also invest in high-quality money market instruments, including
U.S. Government obligations, obligations of foreign and domestic
banks, short-term corporate debt instruments and repurchase agreements.
In addition, under normal market conditions, we may invest:
. in call and put options on stock indexes, stock index futures,
options on stock index futures, interest rate and interest rate
futures contracts as a substitute for a comparable market position
in stocks; and
. in interest rate and index swaps.
We are not required to keep a minimum investment in any of the asset
classes, nor are we prohibited from investing substantially all of our
assets in a single class. The allocation may shift at any time.
We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investments, either to
maintain liquidity or for short-term defensive purposes when we believe
it is in the best interests of shareholders to do so. During these
periods, the Fund may not achieve its objective of maximizing assets
for retirement.
22 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Portfolio Allocations
As of February 29, 2000, each Fund's asset weighting was as follows:
<TABLE>
<CAPTION>
LIFEPATH
OPPORTUNITY LIFEPATH LIFEPATH LIFEPATH LIFEPATH
ASSET CLASS FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
<S> <C> <C> <C> <C> <C>
Money Market Instruments 14% 6% 4% 2% 1%
Bonds 65% 49% 29% 15% 1%
Stocks of Largest U.S. Companies 10% 29% 46% 56% 68%
Stocks of all other U.S. Companies 5% 5% 6% 7% 10%
Stocks Trading Outside the U.S. 6% 11% 15% 20% 20%
</TABLE>
Portfolio Management
The Funds are managed by a team of advisors who, using the allocation
models, jointly make investment decisions for the Funds.
Important Risk Factors
We may incur a higher than average portfolio turnover ratio due to
allocation shifts recommended by the investment model. Foreign obligations
may entail additional risks. The value of investments in options on stock
indexes is affected by price level movements for a particular index, rather
than price movements for an individual issue.
You should consider the "Summary of Important Risks" section on page 6; the
"General Investment Risks" section beginning on page 30; and the specific
risks listed here. They are all important to your investment choice.
LifePath Funds Prospectus 23
<PAGE>
LifePath Funds
-------------------------------------------------------------------------------
This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). Total returns represent
the rate that you would have earned (or lost) on investment in the fund
(assuming reinvestment of all dividends and distributions). KPMG LLP audited
this information which, along with their report and the Fund's financial
statements, is available upon request in the Fund's annual report.
FOR A SHARE OUTSTANDING
<TABLE>
<CAPTION>
LIFEPATH OPPORTUNITY FUND CLASS B SHARES--
CLASS A SHARES--COMMENCED COMMENCED ON
ON MARCH 1, 1994 AUGUST 1, 1998
-----------------------------------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 29, Feb. 28,
For the period ended: 2000 1999 1998 1997 1996 2000 1999
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.52 $ 10.83 $ 10.71 $ 10.64 $ 9.92 $ 10.61 $ 10.91
Income from investment operations:
Net investment income (loss) 0.38 0.36 0.43 0.42 0.40 0.27 0.07
Net realized and unrealized gain (loss)
on investments 0.09 0.32 0.81 0.28 0.86 0.14 0.29
Total from investment operations 0.47 0.68 1.24 0.70 1.26 0.41 0.36
Less distributions:
Dividends from net investment income (0.36) (0.37) (0.44) (0.42) (0.41) (0.25) (0.04)
Distributions from net realized capital gain (0.33) (0.62) (0.68) (0.21) (0.13) (0.33) (0.62)
Total from distributions (0.69) (0.99) (1.12) (0.63) (0.54) (0.58) (0.66)
Net asset value, end of period $ 10.30 $ 10.52 $ 10.83 $ 10.71 $ 10.64 $ 10.44 $ 10.61
Total return (not annualized) 4.47% 6.40% 11.99% 6.74% 12.98% 3.87% 3.35%
Ratios/supplemental data:
Net assets, end of period (000s) $ 44,801 $56,986 $67,909 $84,949 $100,070 $ 6,457 3,161
Ratios to average net assets (annualized):/1/
Ratio of expenses to average net assets 1.30% 1.25% 1.20% 1.20% 1.20% 1.80% 1.70%
Ratio of net investment income (loss) to
average net assets 3.29% 3.27% 3.83% 3.93% 4.00% 2.76% 2.24%
Portfolio turnover/2/ 55% 66% 39% 108% 84% 55% 66%
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses
(annualized) 1.45% 1.31% N/A N/A N/A 2.17% 3.01%
</TABLE>
/1/ Ratios include income earned and expenses charged to the Master Portfolio.
/2/ The Portfolio turnover rate reflects activity by the Master Portfolio.
/3/ Distribution was less than $.01 per share.
24 LifePath Funds Prospectus
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS C SHARES-- LIFEPATH 2010 FUND CLASS B SHARES-- CLASS C SHARES--
COMMENCED ON CLASS A SHARES--COMMENCED COMMENCED COMMENCED ON
DECEMBER 1, 1998 ON MARCH 1, 1994 ON MARCH 1, 1997 DECEMBER 1, 1998
-----------------------------------------------------------------------------------------------------------------------
Feb. 29, Feb. 28, Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 29, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999 1998 1997 1996 2000 1999 1998 2000 1999
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$10.62 $11.24 $ 13.27 $ 13.16 $ 12.20 $ 11.42 $ 9.99 $ 13.25 $ 13.10 $12.02 $13.29 $13.98
0.29 0.04 0.34 0.32 0.36 0.34 0.32 0.25 0.22 0.19 0.21 0.04
0.12 (0.04) 0.66 0.94 1.82 0.95 1.58 0.68 0.97 1.88 0.72 0.09
0.41 0.00 1.00 1.26 2.18 1.29 1.90 0.93 1.19 2.07 0.93 0.13
(0.26) (0.01) (0.34) (0.33) (0.38) (0.34) (0.33) (0.25) (0.22) (0.15) (0.20) 0.003
(0.33) (0.61) (1.05) (0.82) (0.84) (0.17) (0.14) (1.05) (0.82) (0.84) (1.05) (0.82)
(0.59) (0.62) (1.39) (1.15) (1.22) (0.51) (0.47) (1.30) (1.04) (0.99) (1.25) (0.82)
$10.44 $10.62 $ 12.88 $ 13.27 $ 13.16 $ 12.20 $ 11.42 $ 12.88 $ 13.25 $13.10 $12.97 $13.29
3.91% 0.02% 7.50% 9.91% 18.45% 11.60% 19.40% 6.96% 9.30% 17.64% 6.91% 1.11%
$7,243 $4,758 $89,056 89,543 $89,659 $82,971 $67,178 $29,937 $18,158 $6,248 $5,364 $ 675
1.80% 1.76% 1.30% 1.25% 1.20% 1.20% 1.20% 1.80% 1.76% 1.70% 1.80% 1.76%
2.77% 2.27% 2.45% 2.42% 2.85% 3.16% 3.06% 1.93% 1.90% 2.15% 1.88% 2.04%
55% 66% 49% 38% 46% 73% 39% 49% 38% 46% 49% 38%
2.13% 2.66% 1.39% 1.28% N/A N/A N/A 1.94% 1.84% N/A 2.52% 7.72%
</TABLE>
LifePath Funds Prospectus 25
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception,if shorter). Total returns represent
the rate that you would have earned (or lost) on investment in the fund
(assuming reinvestment of all dividends and distributions). KPMG LLP audited
this information which, along with their report and the Fund's financial
statements, is available upon request in the Fund's annual report.
FOR A SHARE OUTSTANDING
<TABLE>
<CAPTION>
LIFEPATH 2020 FUND
CLASS A SHARES--COMMENCED
ON MARCH 1, 1994
--------------------------------------------------------
Feb.29, Feb. 28, Feb. 28, Feb. 28, Feb. 29,
For the period ended: 2000 1999 1998 1997 1996
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.91 $ 14.70 $ 12.98 $ 11.98 $ 10.17
Income from investment operations:
Net investment income (loss) 0.24 0.24 0.28 0.27 0.27
Net realized and unrealized gain (loss)
on investments 1.33 1.47 2.73 1.43 2.03
Total from investment operations 1.57 1.71 3.01 1.70 2.30
Less distributions:
Dividends from net investment income (0.24) (0.25) (0.29) (0.28) (0.28)
Distributions from net realized capital gain (1.46) (1.25) (1.00) (0.42) (0.21)
Total from distributions (1.70) (1.50) (1.29) (0.70) (0.49)
Net asset value, end of period $ 14.78 $ 14.91 $ 14.70 $ 12.98 $ 11.98
Total return (not annualized) 10.45% 12.02% 23.97% 14.65% 22.94%
Ratios/supplemental data:
Net assets, end of period (000s) $176,460 $165,584 $166,198 $146,226 $122,488
Ratios to average net assets (annualized):/1/
Ratio of expenses to average net assets 1.30% 1.25% 1.20% 1.20% 1.20%
Ratio of net investment income (loss) to
average net assets 1.52% 1.61% 2.05% 2.33% 2.45%
Portfolio turnover/2/ 43% 36% 41% 61% 49%
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses
(annualized) 1.33% 1.26% N/A N/A N/A
</TABLE>
/1/ Ratios include income earned and expenses charged to the Master Portfolio.
/2/ The Portfolio Turnover Rate reflects activity by the Master Portfolio.
/3/ Distribution was less than $.01 per share.
26 Lifepath Funds Prospectus
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS B SHARES-- CLASS C SHARES-- LIFEPATH 2030 FUND
COMMENCED ON COMMENCED ON CLASS A SHARES--COMMENCED
MARCH 1, 1997 DECEMBER 1, 1998 ON MARCH 1, 1994
-------------------------------------------------------------------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 29, Feb. 28, Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29,
2000 1999 1998 2000 1999 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 14.79 $ 14.55 $ 12.79 $14.82 $15.82 $ 17.15 $ 16.51 $ 13.83 $ 12.34 $ 10.17
0.15 0.15 0.14 0.11 0.01 0.17 0.18 0.23 0.22 0.21
1.33 1.48 2.74 1.37 0.22 2.03 1.93 3.54 1.83 2.45
1.48 1.63 2.88 1.48 0.23 2.20 2.11 3.77 2.05 2.66
(0.15) (0.15) (0.12) (0.10) 0.003 (0.17) (0.19) (0.23) (0.23) (0.22)
(1.46) (1.24) (1.00) (1.46) (1.23) (2.22) (1.28) (0.86) (0.33) (0.27)
(1.61) (1.39) (1.12) (1.56) (1.23) (2.39) (1.47) (1.09) (0.56) (0.49)
$ 14.66 $ 14.79 $ 14.55 $14.74 $14.82 $ 16.96 $ 17.15 $ 16.51 $ 13.83 $ 12.34
9.90% 11.56% 23.05% 9.87% 1.70% 12.63% 13.25% 28.01% 17.01% 26.53%
$47,472 $28,467 $12,129 $3,009 $ 192 $140,867 $134,008 $126,131 $101,078 $83,012
1.80% 1.76% 1.70% 1.80% 1.71% 1.30% 1.23% 1.20% 1.20% 1.20%
1.02% 1.04% 1.33% 0.92% 0.76% 0.96% 1.07% 1.50% 1.81% 1.92%
43% 36% 41% 43% 36% 26% 19% 27% 42% 39%
1.95% 1.84% N/A 3.28% 52.02% 1.37% 1.26% N/A N/A N/A
</TABLE>
Lifepath Funds Prospectus 27
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). Total returns represent
the rate that you would have earned (or lost) on investment in the fund
(assuming reinvestment of all dividends and distributions). KPMG LLP audited
this information which, along with their report and the Fund's financial
statements, is available upon request in the Fund's annual report.
FOR A SHARE OUTSTANDING
<TABLE>
<CAPTION>
LIFEPATH 2030 FUND CLASS C SHARES--
CLASS B SHARES--COMMENCED COMMENCED ON
ON MARCH 1, 1997 DECEMBER 1, 1998
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Feb. 29, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
For the period ended: 2000 1999 1998 2000 1999
------------------------------------------------------
Net asset value, beginning of period $ 16.93 $ 16.28 $ 13.63 $16.94 $17.89
Income from investment operations:
Net investment income (loss) 0.08 0.09 0.10 0.06 0.00
Net realized and unrealized gain (loss) on investments 2.01 1.92 3.50 2.01 0.31
Total from investment operations 2.09 2.01 3.60 2.07 0.31
Less distributions:
Dividends from net investment income (0.08) (0.10) (0.09) (0.05) 0.003
Distributions from net realized capital gain (2.22) (1.26) (0.86) (2.22) (1.26)
Total from distributions (2.30) (1.36) (0.95) (2.27) (1.26)
Net asset value, end of period $ 16.72 $ 16.93 $ 16.28 $16.74 $16.94
Total return (not annualized) 12.13% 12.64% 26.93% 12.05% 1.98%
Ratios/supplemental data:
Net assets, end of period (000s) $36,406 $25,206 $12,469 $1,293 $ 92
Ratios to average net assets (annualized): /1/
Ratio of expenses to average net assets 1.80% 1.75% 1.70% 1.80% 1.73%
Ratio of net investment income (loss) to average net assets 0.44% 0.52% 0.76% 0.36% 0.16%
Portfolio turnover rate/2/ 26% 19% 27% 26% 19%
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses (annualized) 1.98% 1.84% N/A 5.37% 72.87%
</TABLE>
/1/ Ratios include income earned and expenses charged to the Master Portfolio.
/2/ The Portfolio Turnover Rate reflects activity by the Master Portfolio.
/3/ Distribution was less than $.01 per share.
28 LifePath Funds Prospectus
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFEPATH 2040 FUND CLASS B SHARES-- CLASS C SHARES--
CLASS A SHARES--COMMENCED COMMENCED COMMENCED ON
ON MARCH 1, 1994 ON MARCH 1, 1997 JULY 1, 1998
-------------------------------------------------------------------------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 29, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
2000 1999 1998 1997 1996 2000 1999 1998 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 17.87 $ 17.07 $ 14.50 $ 12.84 $ 10.37 $ 17.52 $ 16.76 $ 14.29 $17.53 $18.01
0.05 0.08 0.13 0.16 0.15 (0.04) (0.01) 0.03 (0.04) (0.01)
2.78 2.39 4.17 2.35 2.82 2.73 2.33 4.06 2.72 1.08
2.83 2.47 4.30 2.51 2.97 2.69 2.32 4.09 2.68 1.07
(0.05) (0.08) (0.14) (0.16) (0.16) 0.00 (0.01) (0.03) 0.00 0.00
(1.87) (1.59) (1.59) (0.69) (0.34) (1.87) (1.55) (1.59) (1.87) (1.55)
(1.92) (1.67) (1.73) (0.85) (0.50) (1.87) (1.56) (1.62) (1.87) (1.55)
$ 18.78 $ 17.87 $ 17.07 $ 14.50 $ 12.84 $ 18.34 $ 17.52 $ 16.76 $18.34 $17.53
15.65% 14.98% 30.66% 20.17% 28.91% 15.07% 14.37% 29.47% 15.07% 6.40%
$306,002 $261,808 $248,195 $189,560 $142,738 $93,757 $63,395 $30,754 $6,095 $3,096
1.30% 1.25% 1.20% 1.20% 1.20% 1.80% 1.75% 1.70% 1.80% 1.71%
0.24% 0.42% 0.82% 1.22% 1.29% 0.28%) (0.12%) 0.08% (0.30%) (0.39%)
29% 19% 34% 48% 29% 29% 19% 34% 29% 19%
1.36% 1.26% N/A N/A N/A 1.95% 1.78% N/A 2.55% 4.71%
</TABLE>
LifePath Funds Prospectus 29
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
Understanding the risks involved in mutual fund investing will help you
make an informed decision that takes into account your risk tolerance
and preferences. You should carefully consider the risks common to
investing in all mutual funds, including the Wells Fargo Funds. Certain
common risks are identified in the "Summary of Important Risks" section
on page 6. Other risks of mutual fund investing include the following:
. Unlike bank deposits, such as CDs or savings accounts, mutual funds
are not insured by the FDIC.
. We cannot guarantee that we will meet our investment objectives.
. We do not guarantee the performance of a Fund, nor can we assure
you that the market value of your investment will not decline. We
will not "make good" any investment loss you may suffer, nor can
anyone we contract with to provide certain services, such as
selling agents or investment advisors, offer or promise to make
good any such losses.
. Share prices--and therefore the value of your investment--will
increase and decrease with changes in the value of the underlying
securities and other investments. This is referred to as price
volatility.
. Investing in any mutual fund, including those deemed conservative,
involves risk, including the possible loss of any money you invest.
. An investment in a single Fund, by itself, does not constitute a
complete investment plan.
. A Fund's investment in foreign and emerging markets are subject to
additional risks, including less liquidity and greater price
volatility and may also be subject to special risks associated with
international trade, including currency, information, political,
regulatory and diplomatic risk.
. The Funds may also use certain derivative instruments, such as
options or futures contracts. The term "derivatives" covers a wide
number of investments, but in general it refers to any financial
instrument whose value is derived, at least in part, from the price
of another security or a specified index, asset or rate. Some
derivatives may be more sensitive to interest rate changes or
market moves, and some may be susceptible to changes in yields or
values due to their structure or contract terms.
. The Funds may invest a portion of their assets in U.S. Government
obligations, such as securities issued or guaranteed by the
Government National Mortgage Association ("GNMAs"), the Federal
National Mortgage Association ("FNMAs") and the Federal Home Loan
Mortgage Corporation ("FHLMCs"). Each are mortgage-backed
securities representing partial ownership of a pool of residential
mortgage loans. A "pool" or group of such mortgages is assembled
and, after being approved by the issuing or guaranteeing entity, is
offered to investors through securities dealers. Mortgage-backed
securities are subject to prepayment and extension risk, which can
alter the maturity of the securities and also reduce the rate of
return on the portfolio. Collateralized mortgage obligations
("CMOs") typically represent principal-only and interest-only
portions of such securities and are subject to increased interest-
rate and credit risk.
Investment practices and risk levels are carefully monitored. Every
attempt is made to ensure that the risk exposure for each Fund remains
within the parameters of its objective.
What follows is a general list of the types of risks (some of which are
described previously) that may apply to a given Fund and a table
showing some of the additional investment practices that each Fund may
use and the risks associated with them. Additional information about
these practices is available in the Statement of Additional
Information.
Counter-Party Risk--The risk that the other party in a repurchase
agreement or other transaction will not fulfill its contract
obligation.
30 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Credit Risk--The risk that the issuer of a debt security will be unable to
make interest payments or repay principal on schedule. If an issuer does
default, the affected security could lose all of its value, or be
renegotiated at a lower interest rate or principal amount. Affected
securities might also lose liquidity. Credit risk also includes the risk
that a party in a transaction may not be able to complete the transaction
as agreed.
Currency Risk--The risk that a change in the exchange rate between U.S.
dollars and a foreign currency may reduce the value of an investment made
in a security denominated in that foreign currency.
Diplomatic Risk--The risk that an adverse change in the diplomatic
relations between the United States and another country might reduce the
value of liquidity of investments in either country.
Emerging Market Risk--The risk that the emerging market, as defined in the
glossary, may be more sensitive to certain economic changes. For example,
emerging market countries are often dependent on international trade and
are therefore often vulnerable to recessions in other countries. They may
have obsolete financial systems, have volatile currencies and may be more
sensitive than more mature markets to a variety of economic factors.
Emerging market securities may also be less liquid than securities of more
developed countries and could be difficult to sell, particularly during a
market downturn.
Experience Risk--The risk presented by a new or innovative security. The
risk is that insufficient experience exists to forecast how the security's
value might be affected by various economic conditions.
Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.
Interest Rate Risk--The risk that changes in interest rates can reduce the
value of an existing security. Generally, when interest rates increase, the
value of a debt security decreases. The effect is usually more pronounced
for securities with longer dates to maturity.
Leverage Risk--The risk that an investment practice, such as lending
portfolio securities or engaging in forward commitments or when-issued
securities transactions, may increase a Fund's exposure to market risk,
interest rate risk or other risks by, in effect, increasing assets
available for investment. Liquidity Risk--The risk that a security cannot
be sold at the time desired, or cannot be sold without adversely affecting
the price.
Market Risk--The risk that the value of a stock, bond or other security
will be reduced by market activity. This is a basic risk associated with
all securities.
Political Risk--The risk that political actions, events or instability may
be unfavorable for investments made in a particular nation's or region's
industry, government or markets.
Prepayment Risk--The risk that consumers will accelerate their prepayment
of mortgage loans or other receivables, which can shorten the maturity of a
mortgage-backed or other asset-backed security and reduce a portfolio's
rate of return.
Regulatory Risk--The risk that changes in government regulations will
adversely affect the value of a security. Also the risk that an
insufficiently regulated market might permit inappropriate trading
practices.
LifePath Funds Prospectus 31
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
In addition to the general risks discussed above, you should carefully
consider and evaluate any special risks that may apply to investing in
a particular Fund. See the "Important Risk Factors" in the summary for
each Fund. You should also see the Statement of Additional Information
for additional information about the investment practices and risks
particular to each Fund.
32 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Investment Practice/Risk
The following table lists some of the additional investment practices of the
Funds, including some not disclosed in the Investment Objective and Investment
Strategies sections of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that practice,
but are among the more prominent. Market risk is assumed for each. See the
Investment Objective and Investment Strategies for each Fund or the Statement of
Additional Information for more information on these practices. Investment
practices and risk levels are carefully monitored. We attempt to ensure that the
risk exposure for each Fund remains within the parameters of its objective.
Remember each Fund is designed to meet different investment needs and
objectives.
<TABLE>
<CAPTION>
All
FUNDS
INVESTMENT PRACTICE RISK
<S> <C> <C>
Borrowing Policies
The ability to borrow from banks for temporary purposes to meet shareholder Leverage Risk .
redemptions.
Floating and Variable Rate Debt
Instruments with interest rates that are adjusted either on a schedule or Interest Rate and .
when an index or benchmark changes. Credit Risk
Foreign Securities
Equity securities issued by a non-U.S. company or debt securities of Information, Political,
non-U.S. companies or foreign governments. Foreign securities Regulatory, Diplomatic, .
may also be emerging market securities, which are subject to the Liquidity and Currency Risk
same risks, but to a higher degree.
Illiquid Securities
A security that cannot be readily sold, or cannot be readily sold without Liquidity Risk .
negatively affecting its fair price. Limited to 15% of total assets.
Loans of Portfolio Securities
The practice of loaning securities to brokers, dealers and financial Credit, Counter-Party .
institutions to increase return on those securities. Loans and Leverage Risk
may be made up to Investment Company Act of 1940 limits
(currently one-third of total assets including the value of collateral
received).
Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional interests in pools of consumer Interest Rate, Credit
loans, such as mortgage loans, car loans, credit card debt, or receivables Prepayment and .
held in trust. Experience Risk
Options
The right or obligation to receive or deliver a security or cash payment
depending on the security's price or the performance of an index or Credit, Information .
benchmark. Types of options may include: options on securities, and Liquidity Risk
options on a stock index, stock index futures and options on stock
index futures to protect liquidity and portfolio value.
</TABLE>
LifePath Funds Prospectus 33
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
All
FUNDS
INVESTMENT PRACTICE RISK
<S> <C> <C>
Other Mutual Funds
A pro rata portion of the other fund's expenses, in addition Market Risk .
to the expenses paid by the Funds, will be borne by Fund
shareholders.
Privately Issued Securities
Securities that are not publicly traded but which may Liquidity Risk .
or may not be resold in accordance with Rule 144A of the
Securities Act of 1933.
Repurchase Agreements
A transaction in which the seller of a security agrees to buy back a Credit and .
security at an agreed upon time and price, usually with interest. Counter-Party Risk
</TABLE>
34 LifePath Funds Prospectus
<PAGE>
This page intentionally left blank
--------------------------------------------------------------------------------
<PAGE>
Organization and Management of the Funds
--------------------------------------------------------------------------------
A number of different entities provide services to the Funds. This section shows
how the Funds are organized, lists the entities that perform different
services, and explains how these service providers are compensated. Further
information is available in the Statement of Additional Information for the
Funds.
About Wells Fargo Funds Trust
Each Fund is one of over 60 Funds of Wells Fargo Funds Trust (the "Trust"), an
open-end management investment company. The Trust was organized as a Delaware
business trust on March 10, 1999. The Board of Trustees of the Trust supervises
each Fund's activities, monitors its contractual arrangements with various
service providers and decides upon matters of general policy.
The Trust was created to succeed to the assets and operations of the various
mutual funds in the Stagecoach Family of Funds and the Norwest Advantage Family
of Funds. The holding company of Wells Fargo Bank, the investment advisor to the
Stagecoach Family of Funds, and the holding company of Norwest Investment
Management, Inc., the investment advisor to the Norwest Advantage Family of
Funds, merged in November 1998. Each of the Funds described in this Prospectus
has succeeded to the assets and operations of a corresponding Fund of Stagecoach
Trust. The performance and financial statement history of each predecessor Fund
has been assumed by the Wells Fargo Funds Trust Fund. The succession
transactions were approved by the shareholders of the Stagecoach Funds. The
Table on page 54 identifies the Stagecoach Trust predecessors to the Funds.
<TABLE>
<CAPTION>
BOARD OF TRUSTEES
Supervises the Funds' activities
------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT ADVISOR CUSTODIAN
Barclays Global Fund Advisors Investors Bank & Trust Company
45 Fremont Street, San Francisco, CA 200 Clarendon Street, Boston, MA
Manages the Funds' investment activities Provides safekeeping for the
Funds' assets
------------------------------------------------------------------------------------------------------------------
SHAREHOLDER
TRANSFER SERVICING
DISTRIBUTOR ADMINISTRATOR AGENT AGENTS
Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data Various Agents
111 Center St. 525 Market St. Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Dr.
Quincy, MA
Markets the Funds Manages the Maintains records Provide
and distributes Funds' business of shares and services to
Fund shares activities supervises the payment customers
of dividends
------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES FIRMS AND SELLING AGENTS
Advise current and prospective shareholders on their Fund investments
--------------------------------------------------------------------------------
SHAREHOLDERS
</TABLE>
36 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
In the following sections, the percentages shown are the percentages of the
average daily net assets of each Fund class paid on an annual basis for the
services described.
The Investment Advisor
Barclay's Global Fund Advisors ("BGFA"), a wholly owned subsidiary of Barclays
Global Investors, N.A. ("BGI"), and an indirect subsidiary of Barclays Bank
PLC, is the advisor for each of the LifePath Master Portfolios. BGFA invests the
Funds' assets according to various asset allocation models. No particular
individuals are responsible for the day-today management of the Funds. BGFA was
created from the sale of Wells Fargo Nikko Investment Advisors, a former
affiliate of Wells Fargo Bank, to BGI. As of December 31, 1999, BGI managed or
provided investment advice for assets aggregating in excess of $783 billion. For
providing advisory services to the Master Portfolios, BGFA is entitled to
receive 0.55% of each Master Portfolio's net assets.
The Administrator
Wells Fargo Bank provides the Funds with administration services, including
general supervision of each Fund's operation, coordination of the other services
provided to each Fund, compilation of information for reports to the SEC and the
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trustees and officers. Wells Fargo Bank also
furnishes office space and certain facilities to conduct each Fund's
business, and compensates the Trustees. For providing these services Wells Fargo
Bank is entitled to receive a fee of 0.15% of the average annual net assets of
each Fund.
Shareholder Servicing Plan
We have a shareholder servicing plan for each Fund class. We have agreements
with various shareholder servicing agents to process purchase and redemption
requests, to service shareholder accounts, and to provide other related
services. For these services, each Fund pays 0.25% of its average net assets.
The Transfer Agent
Boston Financial Data Services, Inc. ("BFDS") provides transfer agency and
dividend disbursing services to the Funds. For providing these services,BFDS
receives an annual fee, certain transaction-related fees, and is reimbursed for
out-of-pocket expenses incurred on behalf of the Funds.
LifePath Funds Prospectus 37
<PAGE>
A Choice of Share Classes
--------------------------------------------------------------------------------
After choosing a Fund, your next most important choice is which share class
to buy. The following classes of shares are available through this
Prospectus:
. Class A Shares--with a front-end sales charge, volume reductions and
lower on-going expenses than Class B and Class C shares.
. Class B Shares--with a contingent deferred sales charge ("CDSC")
payable upon redemption that diminishes over time, and higher on-going
expenses than Class A shares.
. Class C Shares--with a 1.00% CDSC on redemptions made within one year
of purchase, and higher on-going expenses than Class A shares.
The choice between share classes is largely a matter of preference. You
should consider, among other things, the different fees and sales loads
assessed on each share class and the length of time you anticipate holding
your investment. If you prefer to pay sales charges up front, wish to avoid
higher on-going expenses, or, more importantly, you think you may qualify
for volume discounts based on the amount of your investment, then Class A
shares may be the choice for you.
You may prefer to see "every dollar working" from the moment you invest. If
so, then consider Class B or Class C shares. Please note that Class B
shares convert to Class A shares after seven years to avoid the higher on-
going expenses assessed against Class B shares.
Class C shares are similar to Class B shares, with some important
differences. Unlike Class B shares, Class C shares do not convert to Class
A shares. The higher on-going expenses will be assessed as long as you hold
the shares. The choice between Class B and Class C shares may depend on how
long you intend to hold Fund shares before redeeming them.
Orders for Class B shares of $250,000 or more are either treated as orders
for Class A shares or they will be refused. For Class C shares, orders of
$1,000,000 or more, including purchases made which because of a right of
accumulation or letter of intent would qualify for the purchase of Class A
shares without an initial sales charge, are also either treated as orders
for Class A shares or they will be refused.
Please see the expenses listed for each Fund and the following sales charge
schedules before making your decision. You should also review the "Reduced
Sales Charges" section of the Prospectus. You may wish to discuss this
choice with your financial consultant.
Class A Share Sales Charge Schedule
If you choose to buy Class A shares, you will pay the Public Offering Price
("POP") which is the Net Asset Value ("NAV") plus the applicable sales
charge. Since sales charges are reduced for Class A share purchases above
certain dollar amounts, known as "breakpoint levels," the POP is lower for
these purchases.
38 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
CLASS A SHARES LISTED IN THIS PROSPECTUS HAVE THE FOLLOWING SALES CHARGE
SCHEDULE:
FRONT-END SALES FRONT-END SALES
CHARGE AS % CHARGE AS %
AMOUNT OF PUBLIC OF AMOUNT
OF PURCHASE OFFERING PRICE INVESTED
Less than $ 50,000 5.75% 6.10%
$ 50,000 to $ 99,999 4.75% 4.99%
$ 100,000 to $249,999 3.75% 3.90%
$ 250,000 to $499,999 2.75% 2.83%
$ 500,000 to $999,999 2.00% 2.04%
$1,000,000 and over/1/ 0.00% 0.00%
/1/ We will assess a 1.00% CDSC on Class A shares purchases of $1,000,000
or more or if they are redeemed within one year from the date of
purchase, unless the dealer of record waived its commission with the
Funds' approval. Charges are based on the lower of the NAV on the date
of purchase or the date of redemption.
Class B Share CDSC Schedule
If you choose Class B shares, you buy them at NAV and agree that if you
redeem your shares within six years of the purchase date, you will pay a
CDSC based on how long you have held your shares. Certain exceptions apply
(see "Class B and Class C Share CDSC Reductions" and "Waivers for Certain
Parties"). The CDSC schedule is as follows:
CLASS B SHARES LISTED IN THIS PROSPECTUS HAVE THE FOLLOWING SALES CHARGE
SCHEDULE:
REDEMPTION 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS 6 YEARS 7 YEARS 8 YEARS
WITHIN
CDSC 5.00% 4.00% 3.00% 3.00% 2.00% 1.00% 0.00% A shares
The CDSC percentage you pay is based on the lower of the NAV of the shares
on the date of the original purchase, or the NAV of the shares on the date
of redemption.
We always process partial redemptions so that the least expensive shares
are redeemed first in order to reduce your sales charges. After shares are
held for six years, the CDSC expires. After shares are held for seven
years, the Class B shares are converted to Class A shares to reduce your
future on-going expenses.
Class B shares received in the reorganization of the Stagecoach Funds in
exchange for Stagecoach Fund shares purchased after July 17, 1999 are also
subject to the above CDSC schedule.
Class B shares received in the reorganization of the Stagecoach Funds in
exchange for Stagecoach Fund shares purchased prior to July 17, 1999, but
after March 3, 1997, are subject to the following CDSC schedule, and such
shares convert to Class A shares automatically after six years:
CLASS B SHARES RECEIVED IN EXCHANGE FOR STAGECOACH FUND SHARES PURCHASED
AFTER MARCH 3, 1997, BUT BEFORE JULY 17, 1999 HAVE THE FOLLOWING SALES
CHARGE SCHEDULE:
REDEMPTION 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS 6 YEARS 7 YEARS
WITHIN
CDSC 5.00% 4.00% 3.00% 3.00% 2.00% 1.00% A shares
LifePath Funds Prospectus 39
<PAGE>
A Choice of Share Classes
-------------------------------------------------------------------------------
Class B shares received in the reorganization of the Stagecoach Funds in
exchange for Stagecoach Fund shares that were purchased prior to March
3, 1997 are subject to a CDSC if they are redeemed within four years of the
original purchase. The CDSC schedule for these shares is below:
CLASS B SHARES RECEIVED IN EXCHANGE FOR STAGECOACH FUND SHARES PURCHASED
PRIOR TO MARCH 3, 1997 HAVE THE FOLLOWING SALES CHARGE SCHEDULE:
REDEMPTION 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS 6 YEARS 7 YEARS
WITHIN
CDSC 3.00% 2.00% 1.00% 1.00% 0.00% 0 .00% A shares
If you exchange the Class B shares received in the reorganization for Class
B shares of another Fund, you will retain the CDSC schedules of your
exchanged shares. Additional shares purchased will age at the currently
effective CDSC schedule first shown above.
Class C Share CDSC Schedule
If you choose Class C shares, you buy them at NAV and agree that if you
redeem your shares within one year of the purchase date, you will pay a
CDSC of 1.00%.
The CDSC percentage you pay is based on the lower of the NAV on the date of
the original purchase, or the NAV on the date of redemption. The
distributor pays sales commissions of up to 1.00% of the purchase price of
Class C shares to selling agents at the time of the sale, and up to 1.00%
annually thereafter.
We always process partial redemptions so that the least expensive shares
are redeemed first in order to reduce your sales charges. Class C shares do
not convert to Class A shares, and therefore continue to pay the higher on-
going expenses.
40 LifePath Funds Prospectus
<PAGE>
Reduced Sales Charges
--------------------------------------------------------------------------------
Generally, we offer more sales charge reductions for Class A shares
than for Class B and Class C shares, particularly if you intend to
invest greater amounts. You should consider whether you are eligible
for any of the potential reductions when you are deciding which share
class to buy.
Class A Share Reductions
. You pay no sales charges on Fund shares you buy with reinvested
distributions.
. You pay a lower sales charge if you are investing an amount over a
breakpoint level. See the "Class A Share Sales Charge Schedule"
above.
. By signing a Letter of Intent ("LOI"), you pay a lower sales charge
now in exchange for promising to invest an amount over a specified
breakpoint within the next 13 months. We will hold in escrow shares
equal to approximately 5% of the amount you intend to buy. If you do
not invest the amount specified in the LOI before the expiration
date, we will redeem enough escrowed shares to pay the difference
between the reduced sales load you paid and the sales load you
should have paid. Otherwise, we will release the escrowed shares when
you have invested the agreed amount.
. Rights of Accumulation ("ROA") allow you to combine the amount you
invest with the total NAV of shares you own in other Funds Trust
front-end load Funds, in which you have already paid a front-end
load, in order to reach breakpoint levels for a reduced load. We give
you a discount on the entire amount of the investment that puts you
over the breakpoint level.
. You pay no sales charges on Fund shares you purchase with the
proceeds of a redemption of either Class A or Class B shares within
120 days of the date of the redemption.
. You may reinvest in to a Wells Fargo Fund with no sales charge a
required distribution from a pension, retirement, benefits, or
similar plan for which Wells Fargo Bank acts as trustee provided the
distribution occurred within the 30 days prior to your reinvestment.
If you believe you are eligible for any of these reductions, it is up
to you to ask the selling agent or the shareholder servicing agent for
the reduction and to provide appropriate proof of eligibility.
You, or your fiduciary or trustee, may also tell us to extend volume
discounts, including the reductions offered for rights of accumulation
and letters of intent, to include purchases made by:
. a family unit, including children under the age of twenty-one or
single trust estate;
. a trustee or fiduciary purchasing for a single fiduciary
relationship; or
. the members of a "qualified group" which consists of a "company" (as
defined in the Investment Company Act of 1940, as amended), and
related parties of such a "Company, "which has been in existence for
at least six months and which has a primary purpose other than
acquiring Fund shares at a discount.
How a Letter of Intent Can Save You Money!
If you plan to invest, for example, $100,000 in a Wells Fargo Fund
in installments over the next year, by signing a letter of intent
you would pay only 3.75% sales load on the entire purchase.
Otherwise, you might pay 5.75% on the first $49,999, then 4.75% on
the next $50,000!
LifePath Funds Prospectus 41
<PAGE>
Reduced Sales Charges
------------------------------------------------------------------------------
Class B and Class C Share CDSC Reductions
. You pay no CDSC on Funds shares you purchase with reinvested
distributions.
. We waive the CDSC for all redemptions made because of scheduled
(Rule 72T withdrawal schedule) or mandatory (withdrawals made after
age 701/2 according to IRS guidelines) distributions for certain
retirement plans. (See your retirement plan disclosure for
details.)
. We waive the CDSC for redemptions made in the event of the
shareholder's death or for a disability suffered after purchasing
shares. ("Disability" is defined by the Internal Revenue Code of
1986.)
. We waive the CDSC for redemptions made at the direction of Wells
Fargo in order to, for example, complete a merger or close an
account whose value has fallen below the minimum balance.
. We waive the Class B share CDSC for withdrawals made by former
Norwest Advantage Fund shareholders in certain qualified accounts
up to certain limits. (See the Statement of Additional Information
for further details.)
. We waive the Class C share CDSC for certain types of accounts.
For Class B shares purchased after July 17, 1999 for former Stagecoach
Funds shareholders, and for all other shareholders, no CDSC is imposed
on withdrawals that meet all the following circumstances:
. withdrawals are made through the Systematic Withdrawal Plan;
. withdrawals may not exceed 10% of your fund assets (including "free
shares") annually based on your anniversary date in the Systematic
Withdrawal Plan; and
. you participate in the dividend and capital gain reinvestment
program.
Waivers for Certain Parties
If you are eligible for certain waivers, we will sell you Class A
shares so you can avoid higher ongoing expenses. The following people
can buy Class A shares at NAV:
. Current and retired employees, trustees and officers of:
. Wells Fargo Funds and its affiliates;
. Wells Fargo & Company and its affiliates;
. Stephens Inc. and its affiliates; and
. Broker-Dealers who act as selling agents.
. and the families of any of the above. Contact your selling agent for
further information.
You may also buy Class A Fund shares at NAV if they are to be included
in certain retirement, benefits, pension or investment "wrap accounts"
with whom Wells Fargo Funds has reached an agreement, or through an
omnibus account maintained with a Fund by a broker/dealer.
We reserve the right to enter into agreements that reduce or eliminate
sales charges for groups or classes of shareholders, or for Fund shares
included in other investment plans such as "wrap accounts." If you own
Fund shares as part of another account or package such as an IRA or a
sweep account, you must read the directions for that account. These
directions may supersede the terms and conditions discussed here.
42 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Distribution Plan
We have adopted a Distribution Plan ("Plan") pursuant to Rule 12b-1
for the Class A, Class B and Class C shares of the Funds. The Plan
authorizes the payment of all or part of the cost of preparing and
distributing Prospectuses and distribution-related services, including
ongoing compensation to selling agents. The Plan also provides that,
if and to the extent any shareholder servicing payments are
recharacterized as payments for distribution-related services, they
are approved and payable under the Plan. The fees paid under this Plan
are as follows:
FUND CLASS A CLASS B CLASS C
LifePath Opportunity Fund 0.25% 0.75% 0.75%
LifePath 2010 Fund 0.25% 0.75% 0.75%
LifePath 2020 Fund 0.25% 0.75% 0.75%
LifePath 2030 Fund 0.25% 0.75% 0.75%
LifePath 2040 Fund 0.25% 0.75% 0.75%
These fees are charged based on the average daily net assets of the
respective class and are paid out of the Funds' assets on an on-going
basis. Over time, these fees will increase the cost of your investment
and may cost you more than paying other types of sales charges.
MIP Rule 12b-1 Plan
The Board of Trustees of Master Investment Portfolio ("MIP") has
adopted, on behalf of each Master Portfolio, a "defensive"
distribution plan under Section 12(b) of the 1940 Act and Rule 12b-1
thereunder (the "Plan"). The Plan does not result in any additional
expenses being borne by a Master Portfolio or a Fund. The Plan was
intended as a precaution designed to address the possibility that
certain ongoing payments by Barclays to Wells Fargo Bank in connection
with the sale of a former affiliate of Wells Fargo Bank may be
characterized as indirect payments by each Master Portfolio to finance
activities primarily intended to result in the sale of interest in
such Master Portfolio. The Plan provides that if any portion of a
Master Portfolio's advisory fees (up to 0.25% of the average daily net
assets of each Master Portfolio on an annual basis) were deemed to
constitute an indirect payment for activities that are primarily
intended to result in the sale of interests in a Master Portfolio,
such payment would be authorized pursuant to the Plan.
LifePath Funds Prospectus 43
<PAGE>
Exchanges
--------------------------------------------------------------------------------
Exchanges between Wells Fargo Funds are two transactions: a sale of
shares of one Fund and the purchase of shares of another. In
general, the same rules and procedures that apply to sales and
purchases apply to exchanges. There are, however, additional factors
you should keep in mind while making or considering an exchange:
. You should carefully read the Prospectus for the Fund into which
you wish to exchange.
. Every exchange involves selling Fund shares and that sale may
produce a capital gain or loss for federal income tax purposes.
. If you are making an initial investment into a new Fund through an
exchange, you must exchange at least the minimum first purchase
amount of the Fund you are redeeming, unless your balance has
fallen below that amount due to market conditions.
. Any exchange between Funds you already own must meet the minimum
redemption and subsequent purchase amounts for the Funds involved.
. Exchanges between Class B shares, and between Class C shares or
between either Class B or Class C shares and a Wells Fargo money
market fund will not trigger the CDSC. The new shares will continue
to age according to their original schedule while in the new Fund
and will be charged the CDSC applicable to the original shares upon
redemption.
. Exchanges between Class B shares and the Wells Fargo Money Market
Fund Class B shares will not trigger the CDSC. The new shares will
continue to age according to their original schedule while in the
new Fund and will be charged the CDSC applicable to the original
shares upon redemption. Exchanges into Money Market Fund Class B
shares are subject to certain restrictions in addition to those
described above.
. Exchanges from any share class to a money market fund can only be
re-exchanged for the original share class.
. In order to discourage excessive Fund transaction expenses that
must be borne by other shareholders, we reserve the right to limit
or reject exchange orders.
. You may make exchanges between like share classes. You may also
exchange from any Class C shares into the Money Market Fund Class A
shares. Exchanged shares retain any applicable CDSC upon
redemption.
Generally, we will notify you up to 60 days in advance of any changes
in your exchange privileges.
44 LifePath Funds Prospectus
<PAGE>
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________________________________________________________________________________
<PAGE>
Your Account
--------------------------------------------------------------------------------
This section tells you how Fund shares are priced, how to open an
account and how to buy, sell or exchange Fund shares once your account
is open.
Pricing Fund Shares
. As with all mutual fund investments, the price you pay to purchase
shares or the price you receive when you redeem shares is not
determined until after a request has been received in proper form.
. We determine the NAV of each class of the Funds' shares each
business day as of the close of regular trading on the New York
Stock Exchange ("NYSE"). We determine the NAV by subtracting the
Fund class's liabilities from its total assets, and then dividing
the result by the total number of outstanding shares of that
class. Each Fund's assets are generally valued at current market
prices. See the Statement of Additional Information for further
disclosure.
. We process requests to buy or sell shares of the funds each
business day as of the close of regular trading on the NYSE, which
is usually 1:00 p.m. (Pacific time)/3:00 p.m. (Central time). If
the markets close early, the Funds may close early and may value
their shares at earlier times under these circumstances. Any
request we receive in proper form before this time is processed the
same day. Requests we receive after the cutoff time is processed
the next business day.
. The funds are open for business on each day the NYSE is open for
business. NYSE holidays include New Year's Day, Martin Luther
King, Jr. Day, President's Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
When any holiday falls on a weekend, the NYSE typically is closed
on the weekday immediately before or after such holiday.
You Can Buy Fund Shares
. By opening an account directly with the Fund (simply complete and
return a Wells Fargo Funds Application with proper payment);
. Through a brokerage account with an approved selling agent; or
. Through certain retirement, benefit and pension plans, or through
certain packaged investment products (please see the providers of
the plan for instructions).
Minimum Investments
. $1,000 per Fund minimum initial investment; or
. $100 per Fund if you use the Systematic Purchase Program; and
. $100 per Fund for all investments after your initial investment.
We may waive the minimum for Funds you purchase through certain
retirement, benefit and pension plans,through certain packaged
investment products, or for certain classes of shareholders as
permitted by the SEC. Check the specific disclosure statements and
Applications for the program through which you intend to invest.
46 LifePath Funds Prospectus
<PAGE>
How to Buy Shares
--------------------------------------------------------------------------------
The following section explains how you can buy shares directly from Wells Fargo
Funds. For Funds held through brokerage and other types of accounts, please
consult your selling agent.
BY MAIL
IF YOU ARE BUYING SHARES FOR THE FIRST TIME:
--------------------------------------------------------------------------------
. Complete a Wells Fargo Funds Application. Be sure to indicate the Fund
name and the share class into which you intend to invest (If no choice is
indicated, Class A shares will be designated). Your account will be
credited on the business day that the transfer agent receives your
application in proper order. Failure to complete an Application properly
may result in a delay in processing your request.
. Enclose a check for at least $1,000 made out in the full name and share
class of the Fund. For example, "Wells Fargo LifePath Opportunity Fund,
Class B."
. You may start your account with $100 if you elect the Systematic Purchase
Plan option on the Application.
<TABLE>
<S> <C>
. Mail to: Wells Fargo Funds Overnight Mail Only: Wells Fargo Funds
ATTN: CCSU-Boston Financial ATTN: CCSU-Boston Financial
P.O. Box 8266 66 Brooks Drive
Boston, MA 02266-8266 Braintree, MA 02184
</TABLE>
--------------------------------------------------------------------------------
IF YOU ARE BUYING ADDITIONAL SHARES:
--------------------------------------------------------------------------------
. Make a check payable to the full name and share class of your Fund for at
least $100. Be sure to write your account number on the check as well.
. Enclose the payment stub/card from your statement if available.
. Mail to: Wells Fargo Funds
ATTN: CCSU-Boston Financial PO Box 8266
Boston, MA 02266-8266
LifePath Funds Prospectus 47
<PAGE>
Your Account
--------------------------------------------------------------------------------
BY WIRE
IF YOU ARE BUYING SHARES FOR THE FIRST TIME:
-----------------------------------------------------------------------
. You must first call Investor Services at 1-800-222-8222, option
0, to notify them of an incoming wire trade.
. If you do not currently have an account, complete a Wells Fargo
Funds Application. You must wire at least $1,000. Be sure to
indicate the Fund name and the share class into which you intend
to invest.
. Mail the completed Application. Your account will be credited on
the business day that the transfer agent receives your
application and funding in proper order.
. Overnight Application to: Wells Fargo Funds
ATTN:CCSU-Boston Financial
66 Brooks Drive
Braintree, MA 02184
<TABLE>
<S> <C> <C>
. Wire money to: State Street Bank & Trust Attention:
Boston, MA Wells Fargo Funds (Name
of Fund and Share Class)
Bank Routing Number:
ABA 011 000028
Account Name:
Wire Purchase Account Number: (Registration Name
9905-437-1 Indicated on Application)
</TABLE>
-----------------------------------------------------------------------
IF YOU ARE BUYING ADDITIONAL SHARES:
-----------------------------------------------------------------------
. Instruct your wiring bank to transmit at least $100 according to
the instructions given below. Be sure to have the wiring bank
include your current account number and the name your account is
registered in.
<TABLE>
<S> <C> <C>
. Wire to: State Street Bank & Trust Attention:
Boston,MA Wells Fargo Funds (Name
of Fund and Share Class)
Bank Routing Number:
ABA 011 000028 Account Name:
Wire Purchase Account Number: (Registration Name
9905-437-1 Indicated on account)
</TABLE>
48 LifePath Funds Prospectus
<PAGE>
How to Buy Shares
--------------------------------------------------------------------------------
BY PHONE
IF YOU ARE BUYING SHARES FOR THE FIRST TIME:
---------------------------------------------------------------------------
You can only make your first purchase of a Fund by phone if you already
have an existing Wells Fargo Funds Account.
. Call Investor Services and instruct the representative to either:
. transfer at least $1,000 from a linked settlement account, or
. exchange at least $1,000 worth of shares from an existing Wells
Fargo Fund. Please see the "Exchanges" section for special
rules.
. Call: 1-800-222-8222, option 0
---------------------------------------------------------------------------
IF YOU ARE BUYING ADDITIONAL SHARES:
---------------------------------------------------------------------------
. Call Investor Services and instruct the representative to either:
. transfer at least $100 from a linked settlement account, or
. exchange at least $100 worth of shares from another Wells Fargo
Fund.
. Call: 1-800-222-8222, option 0
LifePath Funds Prospectus 49
<PAGE>
Your Account
--------------------------------------------------------------------------------
The following section explains how you can sell shares held directly
through an account with Wells Fargo Funds by mail or telephone. For Fund
shares held through brokerage or other types of accounts, please consult
your selling agent.
BY MAIL
IF YOU ARE SELLING SHARES FOR THE FIRST TIME:
---------------------------------------------------------------------------
. Write a "Letter of Instruction" stating your name, your account
number, the Fund you wish to redeem and the dollar amount ($100 or
more) of the redemption you wish to receive (or write "Full
Redemption").
. Make sure all the account owners sign the request exactly as their
names appear on the account application.
. You may request that redemption proceeds be sent to you by check, by
ACH transfer into a bank account, or by wire. Please call Investor
Services regarding requirements for linking bank accounts or for
wiring funds. We reserve the right to charge a fee for wiring funds
although it is not currently our practice to do so.
. Signature Guarantees are required for mailed redemption requests
over $50,000, or if the address on your account was changed within
the last 30 days. You can get a signature guarantee at financial
institutions such as a bank or brokerage house. We do not accept
notarized signatures.
. Mail to: Wells Fargo Funds
ATTN:CCSU-Boston Financial
PO Box 8266
Boston, MA 02266-8266
BY PHONE
. Call Investor Services to request a redemption of at least $100. Be
prepared to provide your account number and Taxpayer Identification
Number.
. Unless you have instructed us otherwise, only one account owner
needs to call in redemption requests.
. You may request that redemption proceeds be sent to you by check, by
transfer into an ACH-linked bank account, or by wire. Please call
Investor Services regarding requirements for linking bank accounts
or for wiring funds. We reserve the right to charge a fee for wiring
funds although it is not currently our practice to do so.
. Telephone privileges are automatically made available to you unless
you specifically decline them on your Application or subsequently in
writing.
. Telephone privileges allow us to accept transaction instructions by
anyone representing themselves as the shareholder and who provides
reasonable confirmation of their identity, such as providing the
Taxpayer Identification Number on the account. We will not be liable
for any losses incurred if we follow telephone instructions we
reasonably believe to be genuine.
. We will not mail proceeds of a telephone redemption request if the
address on your account was changed in the last 30 days.
. Call: 1-800-222-8222, option 0
50 LifePath Funds Prospectus
<PAGE>
How to Sell Shares
--------------------------------------------------------------------------------
GENERAL NOTES FOR SELLING SHARES
. We will process requests to sell shares at the first NAV calculated
after a request in proper form is received. Requests received before
the cutoff times are processed on the same business day.
. Your redemptions are net of any applicable CDSC.
. If you purchased shares through a packaged investment product or
retirement plan, read the directions for selling shares provided by
the product or plan. There may be special requirements that
supersede the directions in this Prospectus.
. We reserve the right to delay payment of a redemption so that we may
be reasonably certain that investments made by check, through ACH or
Systematic Purchase Plan have been collected. Payments of
redemptions also may be delayed under extraordinary circumstances or
as permitted by the SEC in order to protect remaining shareholders.
. Generally, we pay redemption requests in cash, unless the redemption
request is for more than $250,000 or 1% of the net assets of the
Fund by a single shareholder over any ninety-day period. If a
request for a redemption is over these limits, it may be to the
detriment of existing shareholders to pay such redemption in cash.
Therefore, we may pay all or part of the redemption in securities of
equal value.
LifePath Funds Prospectus 51
<PAGE>
Additional Services and Other Information
--------------------------------------------------------------------------------
Automatic Programs:
These programs help you conveniently purchase and/or redeem shares each
month. Once you select a Plan, tell us the day of the month you would like
the transaction to occur. If you do not specify a date, we will process the
transaction on or about the 25th day of the month. Systematic withdrawals
may only be processed on or about the 25th day of the month. Call Investor
Services at 1-800-222-8222, option 0, for more information.
. Systematic Purchase Plan--With this program, you can regularly purchase
shares of a Wells Fargo Fund with money automatically transferred from a
linked bank account. Simply select the Fund you would like to purchase,
and specify an amount of at least $100.
. Systematic Exchange Plan--With this program, you can regularly exchange
shares of a Wells Fargo Fund you own for shares of another Wells Fargo
Fund. The exchange amount must be at least $100. See the "Exchanges"
section of this Prospectus for the conditions that apply to your shares.
This feature may not be available for certain types of accounts.
. Systematic Withdrawal Plan--With this program, you can regularly redeem
shares and receive the proceeds by check or by transfer to a linked bank
account. Simply specify an amount of at least $100. To participate in
this program, you:
. must have a Fund account valued at $10,000 or more;
. must have your distributions reinvested; and
. may not simultaneously participate in the Systematic Purchase Plan.
It generally takes about ten days to establish a Plan once we have received
your instructions. It generally takes about five days to change or cancel
participation in a Plan. We automatically cancel your program if the linked
bank account you specified is closed.
Dividend and Capital Gain Distributions
The Funds in this Prospectus pay any dividends periodically and make
capital gains distributions at least annually.
We offer the following distribution options:
. Automatic Reinvestment Option--Lets you buy new shares of the same class
of the Fund that generated the distributions. The new shares are
purchased at NAV generally on the day the income is paid. This option is
automatically assigned to your account unless you specify another option.
. Check Payment Option--Allows you to receive checks for distributions
mailed to your address of record or to another name and address which you
have specified in written, signature guaranteed instructions. If checks
remain uncashed for six months or are undeliverable by the Post Office,
we will reinvest the distributions at the earliest date possible.
. Bank Account Payment Option--Allows you to receive distributions directly
in a checking or savings account through ACH. The bank account must be
linked to your Wells Fargo Fund account. In order to establish a new
linked bank account, you must send a written signature guaranteed
instruction along with a copy of a voided check or deposit slip. Any
distribution returned to us due to an invalid banking instruction will be
sent to your address of record by check at the earliest date possible,
and future distributions will be automatically re-invested.
52 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
. Directed Distribution Purchase Option--Lets you buy shares of a different
Wells Fargo Fund of the same share class. The new shares are purchased at
NAV generally on the day the income is paid. In order to establish this
option, you need to identify the Fund and account the distributions are
coming from, and the Fund and account to which the distributions are
being directed. You must meet any required minimum purchases in both
Funds prior distributions to establishing this option.
Remember, distributions have the effect of reducing the NAV per share by
the amount distributed.
Taxes
The following discussion regarding taxes is based on laws that were in
effect as of the date of this Prospectus and summarizes only some of the
material federal income tax considerations affecting the Funds and their
shareholders. It is not intended as a substitute for careful tax planning
and does not discuss state, local or foreign income tax considerations. You
should consult your tax advisor with respect to your specific tax
situation. Please see the Statement of Additional Information for further
federal income tax considerations.
We will pass on to you any net capital gain (generally the excess of net
long-term capital gains over net short-term capital losses) earned by a
Fund as a capital gain distribution. In general, these distributions will
be taxable to you as long-term capital gains which may qualify for taxation
at preferential rates in the hands of non-corporate shareholders. Any
distribution that is not from net investment income, short term capital
gains, or net capital gain may be characterized as a return of capital to
shareholders.
LifePath Funds Prospectus 53
<PAGE>
Table of Predecessors
--------------------------------------------------------------------------------
The Funds in this Prospectus were created as part of the reorganization
of the Stagecoach Family of Funds, advised by Wells Fargo Bank, N.A.,
and the Norwest Advantage family of Funds, advised by Norwest
Investment Management, Inc., into a single mutual fund complex. The
reorganization followed the merger of the advisors' parent companies.
Each Fund is an accounting survivor of a former Stagecoach Trust
fund, as indicated in the Table of Predecessors below. The performance
histories and financial highlights of each Fund are the performance
histories and financial highlights of the predecessor fund.
Wells Fargo Funds Trust Predecessor Fund
LifePath Opportunity Fund Stagecoach LifePath Opportunity Fund
LifePath 2010 Fund Stagecoach LifePath 2010 Fund
LifePath 2020 Fund Stagecoach LifePath 2020 Fund
LifePath 2030 Fund Stagecoach LifePath 2030 Fund
LifePath 2040 Fund Stagecoach LifePath 2040 Fund
54 LifePath Funds Prospectus
<PAGE>
Glossary
--------------------------------------------------------------------------------
We provide the following definitions to assist you in reading this Prospectus.
For a more complete understanding of these terms you should consult your
financial advisor.
ACH
Refers to the "Automated Clearing House" system maintained by the Federal
Reserve Bank which allows banks to process checks, transfer funds and perform
other tasks.
American Depositary Receipts ("ADRs")
Receipts for non-U.S. company stocks. The stocks underlying ADRs are typically
held in bank vaults. The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in foreign companies.
Asset-Backed Securities
Securities consisting of an undivided fractional interest in pools of consumer
loans, such as car loans or credit card debt, or receivables held in trust.
Business Day
Any day the New York Stock Exchange is open is a business day for the Funds.
Capital Appreciation, Capital Growth
The increase in the value of a security. See also "total return."
Capitalization
When referring to the size of a company, capitalization means the total number
of a company's outstanding shares of stock multiplied by the price per share.
This is an accepted method of determining a company's size and is sometimes
referred to as "market capitalization."
Collateralized Mortgage Obligations ("CMOs")
Securities collateralized by portfolios of mortgage pass-through securities.
CMOs are structured into multiple classes, and are paid according to class
maturity, shortest maturities paid first.
Debt Securities
Generally, a promise to pay interest and repay principal by an individual or
group of individuals sold as a security. The owner of the security is entitled
to receive any such payments. Examples include bonds and mortgage- and other
asset-backed securities and can include securities in which the right to receive
interest and principal repayment have been sold separately.
Derivatives
Securities whose values are derived in part from the value of another security
or index. An example is a stock option.
Distributions
Dividends and/or capital gains paid by a Fund on its shares.
Diversified
A diversified fund, as defined by the Investment Company Act of 1940, is one
that invests in cash, Government securities, other investment companies and no
more than 5% of its total assets in a single issuer. These policies must apply
to 75% of the Funds' total assets.
LifePath Funds Prospectus 55
<PAGE>
Glossary
--------------------------------------------------------------------------------
Duration
A measure of a security's or portfolio's sensitivity to changes in
interest rates. Duration is usually expressed in years, with longer
durations typically more sensitive to interest rate changes than
shorter durations.
Emerging Markets
Markets associated with a country that is considered by international
financial organizations, such as the International Finance Corporation
and the International Bank for Reconstruction and Development, and the
international financial community to have an "emerging" stock market.
Such markets may be under-capitalized, have less-developed legal and
financial systems or may have less stable currencies than markets in
the developed world.
FDIC
The Federal Deposit Insurance Corporation. This is the company that
provides federally sponsored insurance covering bank deposits such as
savings accounts and CDs. Mutual funds are not FDIC insured.
FHLMC
FHLMC securities are commonly known as "Freddie Mac" and are issued by
the Federal Home Loan Mortgage Corporation.
FNMA
FNMA securities are known as "Fannie Maes" and are issued by the
Federal National Mortgage Association, and FHLMC securities are known
as "Freddie Mac" and are issued by the Federal Home Loan Mortgage
Corporation.
GNMA
GNMA securities are commonly known as "Ginnie Maes" and are issued by
the Government National Mortgage Association.
Illiquid Security
A security which cannot be readily sold, or cannot be readily sold
without negatively affecting its fair price.
Investment-Grade Securities
A type of bond rated in the top four investment categories by a
nationally recognized ratings organization. Generally these are bonds
whose issuers are considered to have a strong ability to pay interest
and repay principal, although some investment-grade bonds may have some
speculative characteristics. Liquidity The ability to readily sell a
security at a fair price.
Money Market Instruments
High-quality short-term instruments meeting the requirements of Rule
2a-7 under the Investment Company Act of 1940, such as bankers'
acceptances, commercial paper, repurchase agreements and government
obligations. In a money market fund, average portfolio maturity does
not exceed 90 days, and all investments have maturities of 397 days or
less at the time of purchase.
Net Asset Value ("NAV")
The value of a single fund share. It is determined by adding together
all of a Fund's assets, subtracting accrued expenses and other
liabilities, then dividing by the total number of shares.
56 LifePath Funds Prospectus
<PAGE>
Options
An option is the right to buy or sell a security based on an agreed
upon price at a specified time. For example, an option may give the
holder of a stock the right to sell the stock to another party,
allowing the seller to profit if the price has fallen below the agreed
price. Options may also be based on the movement of an index such as
the S&P 500.
Public Offering Price ("POP")
The NAV with the sales load added.
Quantitatively Measured Risk
Risk that gauges both the frequency and degree to which an asset class
will perform below the long-term expected average. Repurchase
Agreement An agreement between a buyer and seller of a security in
which the seller agrees to repurchase the security at an agreed upon
price and time.
Selling Agent
A person who has an agreement with the Funds' distributors that allows
him/her to sell a Fund's shares.
Shareholder Servicing Agent
Anyone appointed by the Fund to maintain shareholder accounts and
records, assist and provide information to shareholders or perform
similar functions.
Signature Guarantee
A guarantee given by a financial institution that has verified the
identity of the maker of the signature.
S&P, S&P 500 Index
Standard and Poor's, a nationally recognized ratings organization. S&P
also publishes various indexes or lists of companies representative of
sectors of the U.S. economy.
Statement of Additional Information
A document that supplements the disclosure made in the Prospectus.
Taxpayer Identification Number
Usually the social security number for an individual or the Employer
Identification Number for a corporation.
Time Horizon
An investments time horizon marks the point when investors plan to
start making net withdrawals. As a general rule, investors with a
longer time horizon have a greater tolerance for risk than investors
with shorter time horizons. Long-term investors are more likely to
accept a greater risk of short-term loss for the opportunity of
achieving greater long-term gains.
Total Return
The total value of capital growth and the value of all
distributions, assuming that distributions were used to purchase
additional shares of the Funds.
Turnover Ratio
The percentage of the securities held in a Fund's portfolio, other
than short-term securities, that were bought or sold within a year.
U.S.Government Obligations
Obligations issued or guaranteed by the U.S. Government, its agencies
or instrumentalities.
LifePath Funds Prospectus 57
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
The information below describes the growth of a hypothetical $10,000
investment in Class A shares of each of the LifePath Funds. The maximum
sales charges have been applied, and each Fund's performance is compared to
several broad-based securities indexes representing the various components
of each LifePath portfolio. This information supersedes the information
found on pages 5-7 of your Annual Report for the year ended February
29, 2000. That information included the performance of the Lehman Brothers
Treasury Bond Index instead of the applicable Lehman Brothers Aggregate
Bond Index as one of the broad-based securities index benchmarks for the
LifePath Funds. The Lehman Brothers Aggregate Bond Index is shown in the
charts below.
WELLS FARGO - LIFEPATH Opportunity Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
Opportunity Class A Bond Index Composite Index Money Fund Average Opportunity Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,295 $ 9,753 $ 9,564 $10,024 $ 9,862
Apr-94 $ 9,247 $ 9,675 $ 9,687 $10,049 $ 9,811
May-94 $ 9,257 $ 9,674 $ 9,846 $10,078 $ 9,821
Jun-94 $ 9,192 $ 9,653 $ 9,604 $10,108 $ 9,753
Jul-94 $ 9,344 $ 9,845 $ 9,920 $10,140 $ 9,914
Aug-94 $ 9,420 $ 9,857 $10,326 $10,173 $ 9,995
Sep-94 $ 9,292 $ 9,712 $10,074 $10,209 $ 9,859
Oct-94 $ 9,321 $ 9,703 $10,300 $10,245 $ 9,889
Nov-94 $ 9,206 $ 9,682 $ 9,925 $10,285 $ 9,767
Dec-94 $ 9,244 $ 9,748 $10,072 $10,328 $ 9,808
Jan-95 $ 9,400 $ 9,941 $10,333 $10,373 $ 9,973
Feb-95 $ 9,623 $10,178 $10,736 $10,420 $10,210
Mar-95 $ 9,713 $10,240 $11,052 $10,468 $10,306
Apr-95 $ 9,851 $10,384 $11,377 $10,516 $10,452
May-95 $10,125 $10,785 $11,831 $10,564 $10,743
Jun-95 $10,221 $10,864 $12,106 $10,613 $10,844
Jul-95 $10,320 $10,840 $12,507 $10,660 $10,950
Aug-95 $10,389 $10,971 $12,538 $10,707 $11,023
Sep-95 $10,506 $11,078 $13,067 $10,754 $11,146
Oct-95 $10,536 $11,222 $13,020 $10,800 $11,178
Nov-95 $10,706 $11,390 $13,591 $10,848 $11,359
Dec-95 $10,831 $11,550 $13,853 $10,895 $11,492
Jan-96 $10,933 $11,626 $14,324 $10,940 $11,600
Feb-96 $10,872 $11,424 $14,457 $10,985 $11,535
Mar-96 $10,849 $11,344 $14,596 $11,029 $11,510
Apr-96 $10,859 $11,280 $14,811 $11,073 $11,521
May-96 $10,869 $11,257 $15,191 $11,118 $11,532
Jun-96 $10,940 $11,408 $15,249 $11,162 $11,607
Jul-96 $10,846 $11,439 $14,575 $11,207 $11,507
Aug-96 $10,908 $11,420 $14,883 $11,251 $11,574
Sep-96 $11,136 $11,618 $15,719 $11,296 $11,815
Oct-96 $11,305 $11,876 $16,153 $11,342 $11,994
Nov-96 $11,579 $12,079 $17,372 $11,387 $12,286
Dec-96 $11,485 $11,967 $17,028 $11,433 $12,186
Jan-97 $11,593 $12,004 $18,091 $11,478 $12,300
Feb-97 $11,604 $12,034 $18,234 $11,524 $12,312
Mar-97 $11,445 $11,901 $17,486 $11,570 $12,143
Apr-97 $11,631 $12,079 $18,528 $11,618 $12,340
May-97 $11,882 $12,194 $19,661 $11,667 $12,607
Jun-97 $12,088 $12,339 $20,535 $11,714 $12,826
Jul-97 $12,409 $12,672 $22,168 $11,765 $13,166
Aug-96 $12,243 $12,564 $20,927 $11,815 $12,990
Sep-97 $12,493 $12,749 $22,071 $11,864 $13,255
Oct-97 $12,471 $12,934 $21,334 $11,915 $13,232
Nov-97 $12,549 $12,993 $22,322 $11,965 $13,315
Dec-97 $12,683 $13,125 $22,706 $12,016 $13,457
Jan-98 $12,791 $13,293 $22,958 $12,068 $13,571
Feb-98 $12,995 $13,282 $24,613 $12,115 $13,788
Mar-98 $13,172 $13,327 $25,873 $12,167 $13,976
Apr-98 $13,245 $13,397 $26,137 $12,217 $14,053
May-98 $13,221 $13,524 $25,688 $12,268 $14,027
Jun-98 $13,355 $13,639 $26,731 $12,319 $14,170
Jul-98 $13,331 $13,667 $26,447 $12,370 $14,144
Aug-98 $13,025 $13,890 $22,626 $12,422 $13,820
Sep-98 $13,337 $14,215 $24,076 $12,473 $14,150
Oct-98 $13,571 $14,140 $26,031 $12,529 $14,399
Nov-98 $13,731 $14,220 $27,608 $12,582 $14,569
Dec-98 $13,970 $14,263 $29,232 $12,631 $14,822
Jan-99 $14,062 $14,364 $30,454 $12,679 $14,919
Feb-99 $13,825 $14,113 $31,401 $12,721 $14,668
3/31/99 $14,000 $14,191 $32,657 $12,768 $14,854
4/30/99 $14,145 $14,236 $33,920 $12,814 $15,008
5/31/99 $13,986 $14,111 $33,120 $12,860 $14,840
6/30/99 $14,144 $14,066 $34,922 $12,905 $15,007
7/31/99 $14,077 $14,007 $33,831 $12,954 $14,936
8/31/99 $14,051 $14,000 $33,664 $13,005 $14,908
9/30/99 $14,074 $14,162 $32,741 $13,055 $14,933
10/31/99 $14,249 $14,214 $34,814 $13,108 $15,119
11/30/99 $14,384 $14,213 $35,520 $13,160 $15,247
12/31/99 $14,598 $14,145 $37,613 $13,217 $15,462
1/31/00 $14,331 $14,098 $35,724 $13,273 $15,196
2/29/00 $14,443 $14,269 $35,049 $13,328 $15,314
____ Wells Fargo LifePath Opportunity Class A - - - - S & P 500 Composite Index
.... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
WELLS FARGO - LIFEPATH 2010 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2010 Class A Bond Index Composite Index Money Fund Average 2010 Class I
--------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,276 $ 9,753 $ 9,564 $10,024 $ 9,841
Apr-94 $ 9,228 $ 9,675 $ 9,687 $10,049 $ 9,791
May-94 $ 9,266 $ 9,674 $ 9,846 $10,078 $ 9,831
Jun-94 $ 9,189 $ 9,653 $ 9,604 $10,108 $ 9,750
Jul-94 $ 9,360 $ 9,845 $ 9,920 $10,140 $ 9,931
Aug-94 $ 9,465 $ 9,857 $10,326 $10,173 $10,042
Sep-94 $ 9,319 $ 9,712 $10,074 $10,209 $ 9,888
Oct-94 $ 9,396 $ 9,703 $10,300 $10,245 $ 9,969
Nov-94 $ 9,195 $ 9,682 $ 9,925 $10,285 $ 9,756
Dec-94 $ 9,269 $ 9,748 $10,072 $10,328 $ 9,834
Jan-95 $ 9,444 $ 9,941 $10,333 $10,373 $10,020
Feb-95 $ 9,737 $10,178 $10,736 $10,420 $10,331
Mar-95 $ 9,888 $10,240 $11,052 $10,468 $10,491
Apr-95 $10,075 $10,384 $11,377 $10,516 $10,689
May-95 $10,429 $10,785 $11,831 $10,564 $11,065
Jun-95 $10,570 $10,864 $12,106 $10,613 $11,214
Jul-95 $10,768 $10,840 $12,507 $10,660 $11,425
Aug-95 $10,808 $10,971 $12,538 $10,707 $11,467
Sep-95 $11,016 $11,078 $13,067 $10,754 $11,688
Oct-95 $11,016 $11,222 $13,020 $10,800 $11,688
Nov-95 $11,286 $11,390 $13,591 $10,848 $11,974
Dec-95 $11,453 $11,550 $13,853 $10,895 $12,151
Jan-96 $11,656 $11,626 $14,324 $10,940 $12,367
Feb-96 $11,626 $11,424 $14,457 $10,985 $12,335
Mar-96 $11,639 $11,344 $14,596 $11,029 $12,349
Apr-96 $11,721 $11,280 $14,811 $11,073 $12,436
May-96 $11,804 $11,257 $15,191 $11,118 $12,524
Jun-96 $11,863 $11,408 $15,249 $11,162 $12,586
Jul-96 $11,625 $11,439 $14,575 $11,207 $12,334
Aug-96 $11,728 $11,420 $14,883 $11,251 $12,444
Sep-96 $12,099 $11,618 $15,719 $11,296 $12,837
Oct-96 $12,318 $11,876 $16,153 $11,342 $13,069
Nov-96 $12,818 $12,079 $17,372 $11,387 $13,600
Dec-96 $12,656 $11,967 $17,028 $11,433 $13,427
Jan-97 $12,932 $12,004 $18,091 $11,478 $13,721
Feb-97 $12,975 $12,034 $18,234 $11,524 $13,766
Mar-97 $12,714 $11,901 $17,486 $11,570 $13,490
Apr-97 $13,068 $12,079 $18,528 $11,618 $13,866
May-97 $13,540 $12,194 $19,661 $11,667 $14,366
Jun-97 $13,905 $12,339 $20,535 $11,714 $14,753
Jul-97 $14,478 $12,672 $22,168 $11,765 $15,361
Aug-96 $14,056 $12,564 $20,927 $11,815 $14,914
Sep-97 $14,507 $12,749 $22,071 $11,864 $15,392
Oct-97 $14,300 $12,934 $21,334 $11,915 $15,172
Nov-97 $14,518 $12,993 $22,322 $11,965 $15,403
Dec-97 $14,714 $13,125 $22,706 $12,016 $15,612
Jan-98 $14,866 $13,293 $22,958 $12,068 $15,773
Feb-98 $15,369 $13,282 $24,613 $12,115 $16,306
Mar-98 $15,760 $13,327 $25,873 $12,167 $16,722
Apr-98 $15,878 $13,397 $26,137 $12,217 $16,847
May-98 $15,772 $13,524 $25,688 $12,268 $16,734
Jun-98 $16,047 $13,639 $26,731 $12,319 $17,026
Jul-98 $15,976 $13,667 $26,447 $12,370 $16,951
Aug-98 $14,958 $13,890 $22,626 $12,422 $15,871
Sep-98 $15,474 $14,215 $24,076 $12,473 $16,418
Oct-98 $16,105 $14,140 $26,031 $12,529 $17,087
Nov-98 $16,522 $14,220 $27,608 $12,582 $17,530
Dec-98 $17,020 $14,263 $29,232 $12,631 $18,058
Jan-99 $17,275 $14,364 $30,454 $12,679 $18,328
Feb-99 $16,893 $14,113 $31,401 $12,721 $17,923
Mar-99 $17,225 $14,191 $32,657 $12,768 $18,276
Apr-99 $17,571 $14,236 $33,920 $12,814 $18,643
May-99 $17,289 $14,111 $33,120 $12,860 $18,344
Jun-99 $17,672 $14,066 $34,922 $12,905 $18,750
Jul-99 $17,479 $14,007 $33,831 $12,954 $18,545
Aug-99 $17,415 $14,000 $33,664 $13,005 $18,477
Sep-99 $17,353 $14,162 $32,741 $13,055 $18,412
Oct-99 $17,781 $14,214 $34,814 $13,108 $18,866
Nov-99 $18,067 $14,213 $35,520 $13,160 $19,141
Dec-99 $18,569 $14,145 $37,613 $13,217 $19,668
Jan-00 $18,076 $14,098 $35,724 $13,273 $19,148
Feb-00 $18,160 $14,269 $35,049 $13,328 $19,237
____ Wells Fargo LifePath 2010 Class A - - - - S & P 500 Composite Index
.... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
58 LifePath Funds Prospectus
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
WELLS FARGO - LIFEPATH 2020 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2020 Class A Bond Index Composite Index Money Fund Average 2020 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,248 $ 9,753 $ 9,564 $10,024 $ 9,812
Apr-94 $ 9,239 $ 9,675 $ 9,687 $10,049 $ 9,802
May-94 $ 9,295 $ 9,674 $ 9,846 $10,078 $ 9,862
Jun-94 $ 9,184 $ 9,653 $ 9,604 $10,108 $ 9,744
Jul-94 $ 9,364 $ 9,845 $ 9,920 $10,140 $ 9,935
Aug-94 $ 9,516 $ 9,857 $10,326 $10,173 $10,097
Sep-94 $ 9,334 $ 9,712 $10,074 $10,209 $ 9,903
Oct-94 $ 9,439 $ 9,703 $10,300 $10,245 $10,015
Nov-94 $ 9,200 $ 9,682 $ 9,925 $10,285 $ 9,761
Dec-94 $ 9,293 $ 9,748 $10,072 $10,328 $ 9,859
Jan-95 $ 9,495 $ 9,941 $10,333 $10,373 $10,074
Feb-95 $ 9,814 $10,178 $10,736 $10,420 $10,412
Mar-95 $10,002 $10,240 $11,052 $10,468 $10,612
Apr-95 $10,225 $10,384 $11,377 $10,516 $10,849
May-95 $10,595 $10,785 $11,831 $10,564 $11,241
Jun-95 $10,774 $10,864 $12,106 $10,613 $11,431
Jul-95 $11,029 $10,840 $12,507 $10,660 $11,701
Aug-95 $11,058 $10,971 $12,538 $10,707 $11,733
Sep-95 $11,318 $11,078 $13,067 $10,754 $12,008
Oct-95 $11,278 $11,222 $13,020 $10,800 $11,966
Nov-95 $11,613 $11,390 $13,591 $10,848 $12,321
Dec-95 $11,814 $11,550 $13,853 $10,895 $12,534
Jan-96 $12,075 $11,626 $14,324 $10,940 $12,812
Feb-96 $12,065 $11,424 $14,457 $10,985 $12,801
Mar-96 $12,106 $11,344 $14,596 $11,029 $12,844
Apr-96 $12,218 $11,280 $14,811 $11,073 $12,963
May-96 $12,350 $11,257 $15,191 $11,118 $13,103
Jun-96 $12,406 $11,408 $15,249 $11,162 $13,163
Jul-96 $12,038 $11,439 $14,575 $11,207 $12,773
Aug-96 $12,181 $11,420 $14,883 $11,251 $12,924
Sep-96 $12,665 $11,618 $15,719 $11,296 $13,437
Oct-96 $12,901 $11,876 $16,153 $11,342 $13,688
Nov-96 $13,590 $12,079 $17,372 $11,387 $14,419
Dec-96 $13,375 $11,967 $17,028 $11,433 $14,190
Jan-97 $13,769 $12,004 $18,091 $11,478 $14,609
Feb-97 $13,833 $12,034 $18,234 $11,524 $14,677
Mar-97 $13,473 $11,901 $17,486 $11,570 $14,295
Apr-97 $13,955 $12,079 $18,528 $11,618 $14,806
May-97 $14,620 $12,194 $19,661 $11,667 $15,511
Jun-97 $15,115 $12,339 $20,535 $11,714 $16,037
Jul-97 $15,924 $12,672 $22,168 $11,765 $16,895
Aug-96 $15,288 $12,564 $20,927 $11,815 $16,220
Sep-97 $15,920 $12,749 $22,071 $11,864 $16,891
Oct-97 $15,562 $12,934 $21,334 $11,915 $16,512
Nov-97 $15,920 $12,993 $22,322 $11,965 $16,891
Dec-97 $16,169 $13,125 $22,706 $12,016 $17,156
Jan-98 $16,356 $13,293 $22,958 $12,068 $17,354
Feb-98 $17,149 $13,282 $24,613 $12,115 $18,195
Mar-98 $17,757 $13,327 $25,873 $12,167 $18,840
Apr-98 $17,909 $13,397 $26,137 $12,217 $19,002
May-98 $17,698 $13,524 $25,688 $12,268 $18,778
Jun-98 $18,127 $13,639 $26,731 $12,319 $19,233
Jul-98 $17,974 $13,667 $26,447 $12,370 $19,071
Aug-98 $16,209 $13,890 $22,626 $12,422 $17,197
Sep-98 $16,893 $14,215 $24,076 $12,473 $17,924
Oct-98 $17,874 $14,140 $26,031 $12,529 $18,965
Nov-98 $18,572 $14,220 $27,608 $12,582 $19,705
Dec-98 $19,340 $14,263 $29,232 $12,631 $20,519
Jan-99 $19,752 $14,364 $30,454 $12,679 $20,957
Feb-99 $19,211 $14,113 $31,401 $12,721 $20,383
Mar-99 $19,717 $14,191 $32,657 $12,768 $20,920
Apr-99 $20,286 $14,236 $33,920 $12,814 $21,523
May-99 $19,872 $14,111 $33,120 $12,860 $21,084
Jun-99 $20,544 $14,066 $34,922 $12,905 $21,798
Jul-99 $20,220 $14,007 $33,831 $12,954 $21,453
Aug-99 $20,116 $14,000 $33,664 $13,005 $21,343
Sep-99 $19,895 $14,162 $32,741 $13,055 $21,109
Oct-99 $20,664 $14,214 $34,814 $13,108 $21,925
Nov-99 $21,108 $14,213 $35,520 $13,160 $22,394
Dec-99 $21,993 $14,145 $37,613 $13,217 $23,349
Jan-00 $21,189 $14,098 $35,724 $13,273 $22,502
Feb-00 $21,217 $14,269 $35,049 $13,328 $22,532
____ Wells Fargo LifePath 2020 Class A - - - - S & P 500 Composite Index
.... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
WELLS FARGO - LIFEPATH 2030 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2030 Class A Bond Index Composite Index Money Fund Average 2030 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,144 $ 9,753 $ 9,564 $10,024 $ 9,702
Apr-94 $ 9,144 $ 9,675 $ 9,687 $10,049 $ 9,702
May-94 $ 9,210 $ 9,674 $ 9,846 $10,078 $ 9,772
Jun-94 $ 9,044 $ 9,653 $ 9,604 $10,108 $ 9,595
Jul-94 $ 9,262 $ 9,845 $ 9,920 $10,140 $ 9,827
Aug-94 $ 9,500 $ 9,857 $10,326 $10,173 $10,079
Sep-94 $ 9,284 $ 9,712 $10,074 $10,209 $ 9,851
Oct-94 $ 9,418 $ 9,703 $10,300 $10,245 $ 9,993
Nov-94 $ 9,150 $ 9,682 $ 9,925 $10,285 $ 9,708
Dec-94 $ 9,265 $ 9,748 $10,072 $10,328 $ 9,830
Jan-95 $ 9,477 $ 9,941 $10,333 $10,373 $10,055
Feb-95 $ 9,805 $10,178 $10,736 $10,420 $10,403
Mar-95 $10,020 $10,240 $11,052 $10,468 $10,632
Apr-95 $10,273 $10,384 $11,377 $10,516 $10,899
May-95 $10,709 $10,785 $11,831 $10,564 $11,362
Jun-95 $10,915 $10,864 $12,106 $10,613 $11,581
Jul-95 $11,198 $10,840 $12,507 $10,660 $11,881
Aug-95 $11,227 $10,971 $12,538 $10,707 $11,912
Sep-95 $11,541 $11,078 $13,067 $10,754 $12,245
Oct-95 $11,482 $11,222 $13,020 $10,800 $12,182
Nov-95 $11,874 $11,390 $13,591 $10,848 $12,598
Dec-95 $12,114 $11,550 $13,853 $10,895 $12,853
Jan-96 $12,406 $11,626 $14,324 $10,940 $13,163
Feb-96 $12,406 $11,424 $14,457 $10,985 $13,163
Mar-96 $12,461 $11,344 $14,596 $11,029 $13,221
Apr-96 $12,622 $11,280 $14,811 $11,073 $13,392
May-96 $12,784 $11,257 $15,191 $11,118 $13,564
Jun-96 $12,829 $11,408 $15,249 $11,162 $13,611
Jul-96 $12,381 $11,439 $14,575 $11,207 $13,136
Aug-96 $12,544 $11,420 $14,883 $11,251 $13,309
Sep-96 $13,114 $11,618 $15,719 $11,296 $13,913
Oct-96 $13,379 $11,876 $16,153 $11,342 $14,195
Nov-96 $14,228 $12,079 $17,372 $11,387 $15,096
Dec-96 $13,971 $11,967 $17,028 $11,433 $14,823
Jan-97 $14,443 $12,004 $18,091 $11,478 $15,324
Feb-97 $14,517 $12,034 $18,234 $11,524 $15,402
Mar-97 $14,082 $11,901 $17,486 $11,570 $14,940
Apr-97 $14,661 $12,079 $18,528 $11,618 $15,555
May-97 $15,462 $12,194 $19,661 $11,667 $16,405
Jun-97 $16,077 $12,339 $20,535 $11,714 $17,057
Jul-97 $17,083 $12,672 $22,168 $11,765 $18,125
Aug-96 $16,246 $12,564 $20,927 $11,815 $17,237
Sep-97 $17,053 $12,749 $22,071 $11,864 $18,093
Oct-97 $16,574 $12,934 $21,334 $11,915 $17,585
Nov-97 $17,032 $12,993 $22,322 $11,965 $18,070
Dec-97 $17,344 $13,125 $22,706 $12,016 $18,402
Jan-98 $17,535 $13,293 $22,958 $12,068 $18,605
Feb-98 $18,582 $13,282 $24,613 $12,115 $19,715
Mar-98 $19,374 $13,327 $25,873 $12,167 $20,556
Apr-98 $19,555 $13,397 $26,137 $12,217 $20,748
May-98 $19,273 $13,524 $25,688 $12,268 $20,449
Jun-98 $19,832 $13,639 $26,731 $12,319 $21,041
Jul-98 $19,617 $13,667 $26,447 $12,370 $20,813
Aug-98 $17,204 $13,890 $22,626 $12,422 $18,254
Sep-98 $18,002 $14,215 $24,076 $12,473 $19,100
Oct-98 $19,285 $14,140 $26,031 $12,529 $20,462
Nov-98 $20,217 $14,220 $27,608 $12,582 $21,450
Dec-98 $21,229 $14,263 $29,232 $12,631 $22,524
Jan-99 $21,756 $14,364 $30,454 $12,679 $23,083
Feb-99 $21,045 $14,113 $31,401 $12,721 $22,329
Mar-99 $21,689 $14,191 $32,657 $12,768 $23,012
Apr-99 $22,439 $14,236 $33,920 $12,814 $23,808
May-99 $21,910 $14,111 $33,120 $12,860 $23,247
Jun-99 $22,794 $14,066 $34,922 $12,905 $24,185
Jul-99 $22,326 $14,007 $33,831 $12,954 $23,688
Aug-99 $22,153 $14,000 $33,664 $13,005 $23,505
Sep-99 $21,821 $14,162 $32,741 $13,055 $23,152
Oct-99 $22,847 $14,214 $34,814 $13,108 $24,240
Nov-99 $23,464 $14,213 $35,520 $13,160 $24,867
Dec-99 $24,723 $14,145 $37,613 $13,217 $26,202
Jan-00 $23,647 $14,098 $35,724 $13,273 $25,068
Feb-00 $23,703 $14,269 $35,049 $13,328 $25,142
____ Wells Fargo LifePath 2030 Class A - - - - S & P 500 Composite Index
.... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
Life Path Funds Prospectus 59
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
WELLS FARGO - LIFEPATH 2040 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2040 Class A Bond Index Composite Index Money Fund Average 2040 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,084 $ 9,753 $ 9,564 $10,024 $ 9,638
Apr-94 $ 9,159 $ 9,675 $ 9,687 $10,049 $ 9,718
May-94 $ 9,263 $ 9,674 $ 9,846 $10,078 $ 9,828
Jun-94 $ 9,056 $ 9,653 $ 9,604 $10,108 $ 9,609
Jul-94 $ 9,303 $ 9,845 $ 9,920 $10,140 $ 9,870
Aug-94 $ 9,615 $ 9,857 $10,326 $10,173 $10,202
Sep-94 $ 9,391 $ 9,712 $10,074 $10,209 $ 9,964
Oct-94 $ 9,534 $ 9,703 $10,300 $10,245 $10,116
Nov-94 $ 9,230 $ 9,682 $ 9,925 $10,285 $ 9,793
Dec-94 $ 9,356 $ 9,748 $10,072 $10,328 $ 9,927
Jan-95 $ 9,567 $ 9,941 $10,333 $10,373 $10,150
Feb-95 $ 9,921 $10,178 $10,736 $10,420 $10,526
Mar-95 $10,175 $10,240 $11,052 $10,468 $10,796
Apr-95 $10,425 $10,384 $11,377 $10,516 $11,061
May-95 $10,838 $10,785 $11,831 $10,564 $11,500
Jun-95 $11,084 $10,864 $12,106 $10,613 $11,761
Jul-95 $11,441 $10,840 $12,507 $10,660 $12,139
Aug-95 $11,441 $10,971 $12,538 $10,707 $12,139
Sep-95 $11,795 $11,078 $13,067 $10,754 $12,514
Oct-95 $11,698 $11,222 $13,020 $10,800 $12,411
Nov-95 $12,124 $11,390 $13,591 $10,848 $12,863
Dec-95 $12,370 $11,550 $13,853 $10,895 $13,125
Jan-96 $12,719 $11,626 $14,324 $10,940 $13,495
Feb-96 $12,788 $11,424 $14,457 $10,985 $13,568
Mar-96 $12,870 $11,344 $14,596 $11,029 $13,655
Apr-96 $13,101 $11,280 $14,811 $11,073 $13,900
May-96 $13,332 $11,257 $15,191 $11,118 $14,145
Jun-96 $13,377 $11,408 $15,249 $11,162 $14,193
Jul-96 $12,844 $11,439 $14,575 $11,207 $13,627
Aug-96 $13,045 $11,420 $14,883 $11,251 $13,841
Sep-96 $13,704 $11,618 $15,719 $11,296 $14,540
Oct-96 $13,957 $11,876 $16,153 $11,342 $14,808
Nov-96 $14,916 $12,079 $17,372 $11,387 $15,826
Dec-96 $14,647 $11,967 $17,028 $11,433 $15,541
Jan-97 $15,262 $12,004 $18,091 $11,478 $16,193
Feb-97 $15,368 $12,034 $18,234 $11,524 $16,305
Mar-97 $14,858 $11,901 $17,486 $11,570 $15,765
Apr-97 $15,549 $12,079 $18,528 $11,618 $16,498
May-97 $16,538 $12,194 $19,661 $11,667 $17,546
Jun-97 $17,261 $12,339 $20,535 $11,714 $18,313
Jul-97 $18,401 $12,672 $22,168 $11,765 $19,524
Aug-96 $17,399 $12,564 $20,927 $11,815 $18,460
Sep-97 $18,333 $12,749 $22,071 $11,864 $19,451
Oct-97 $17,649 $12,934 $21,334 $11,915 $18,726
Nov-97 $18,205 $12,993 $22,322 $11,965 $19,315
Dec-97 $18,527 $13,125 $22,706 $12,016 $19,657
Jan-98 $18,762 $13,293 $22,958 $12,068 $19,907
Feb-98 $20,080 $13,282 $24,613 $12,115 $21,305
Mar-98 $21,091 $13,327 $25,873 $12,167 $22,377
Apr-98 $21,303 $13,397 $26,137 $12,217 $22,602
May-98 $20,879 $13,524 $25,688 $12,268 $22,152
Jun-98 $21,592 $13,639 $26,731 $12,319 $22,909
Jul-98 $21,356 $13,667 $26,447 $12,370 $22,659
Aug-98 $18,123 $13,890 $22,626 $12,422 $19,229
Sep-98 $19,081 $14,215 $24,076 $12,473 $20,245
Oct-98 $20,687 $14,140 $26,031 $12,529 $21,949
Nov-98 $21,868 $14,220 $27,608 $12,582 $23,201
Dec-98 $23,191 $14,263 $29,232 $12,631 $24,606
Jan-99 $23,863 $14,364 $30,454 $12,679 $25,318
Feb-99 $23,088 $14,113 $31,401 $12,721 $24,496
Mar-99 $23,939 $14,191 $32,657 $12,768 $25,399
Apr-99 $24,870 $14,236 $33,920 $12,814 $26,387
May-99 $24,236 $14,111 $33,120 $12,860 $25,715
Jun-99 $25,439 $14,066 $34,922 $12,905 $26,991
Jul-99 $24,818 $14,007 $33,831 $12,954 $26,332
Aug-99 $24,610 $14,000 $33,664 $13,005 $26,112
Sep-99 $24,144 $14,162 $32,741 $13,055 $25,617
Oct-99 $25,517 $14,214 $34,814 $13,108 $27,073
Nov-99 $26,333 $14,213 $35,520 $13,160 $27,922
Dec-99 $28,066 $14,145 $37,613 $13,217 $29,767
Jan-00 $26,659 $14,098 $35,724 $13,273 $28,296
Feb-00 $26,701 $14,269 $35,049 $13,328 $28,341
____ Wells Fargo LifePath 2040 Class A - - - - S & P 500 Composite Index
.... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
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 Administrator is
contractually obligated to reimburse each Fund for some of its operating
expenses or to waive a portion of the fees payable to it in order to
maintain a certain operating expense ratio. Actual reimbursements and
waivers have a positive effect on performance information. Without these
reductions the Funds' returns would have been lower.
Performance shown for each of the LifePath Funds prior to November
8, 1999 reflects performance of the Class A shares of the corresponding
predecessor Stagecoach Trust LifePath Funds. Effective at the close of
business on November 5, 1999, the Stagecoach Trust LifePath Funds were
reorganized into series of the Wells Fargo Funds.
2. 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%.
3. The charts compare the performance of the Wells Fargo LifePath Funds
Class A shares since inception with the S&P 500 Index, Lehman Brothers
Aggregate Bond Index, and the IMoneyNet Taxable Money Fund Average. The
charts assume a hypothetical $10,000 investment in Class A shares,
reflects all operating expenses and assumes the maximum initial sales
charge of 5.75%. 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 Lehman Brothers Aggregate
Bond Index is an unmanaged index composed of bonds,mortgage-backed
securities and asset-backed securities. IMoneyNet Taxable Money Fund
Average is an average of money market funds whose returns are subject to
federal, state and local income taxes. The indexes presented do not
incur expenses and are not available directly for investment. Had these
indexes incurred operating expenses, their performance would have been
lower.
60 LifePath Funds Prospectus
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<PAGE>
YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENTS:
STATEMENT OF ADDITIONAL INFORMATION
supplements the disclosures made by this Prospectus. The Statement of Additional
Information has been filed with the SEC and incorporated by reference into this
Prospectus and is legally part of this Prospectus.
ANNUAL/SEMI-ANNUAL REPORTS
provide certain financial and other important information, including a
discussion of the market conditions and investment strategies that significantly
affected Fund performance for the most recent reporting period.
THESE DOCUMENTS ARE AVAILABLE FREE OF CHARGE:
Call: 1-800-222-8222; option 4
WRITE TO:
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266; or
Visit the SEC's website at http://www.sec.gov
REQUEST COPIES FOR A FEE BY WRITING TO:
SEC Public Reference Room
Washington, DC 20549-6009; or
by electronic request at [email protected]
Call: 1-800-SEC-0330 for details
ADDITIONAL SERVICES QUESTIONS CAN BE ANSWERED BY CALLING YOUR SPECIFIC PRODUCT
GROUP AT WELLS FARGO BANK:
Wells Fargo Checking and Savings: 1-800-869-3557
Next Stage IRA or Stagecoach IRA: 1-800-237-8472
Portfolio Advisor: 1-877-689-7882
---------------------------------------------------------
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
---------------------------------------------------------
<PAGE>
[LOGO OF WELLS FARGO FUNDS]
Institutional Class
WELLS FARGO LIFEPATH FUNDS
----------------------
PROSPECTUS
----------------------
Please read this Prospectus and keep it for LifePath Opportunity Fund
future reference. It is designed to provide you
with important information and to help you
decide if a Fund's goals Fund match your own. LifePath 2010 Fund
LifePath 2020 Fund
These securities have not been approved LifePath 2030 Fund
or disapproved by the U.S. Securities and
Exchange Commission ("SEC"), nor has the SEC LifePath 2040 Fund
passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary
is a criminal offense.
Fund shares are NOT deposits or other obligations
of, or issued, endorsed or guaranteed by Wells
Fargo Bank, N.A. ("Wells Fargo Bank") or any of
its affiliates. Fund shares are NOT insured or
guaranteed by the U.S. Government, the Federal
Deposit Insurance Corporation ("FDIC") or any
other governmental agency. AN INVESTMENT IN A FUND
INVOLVES CERTAIN RISKS, INCLUDING POSSIBLE LOSS OF
PRINCIPAL.
JULY 1 2000
<PAGE>
[INTENTIONALLY LEFT BLANK]
<PAGE>
<TABLE>
<CAPTION>
Table of Contents LifePath Funds
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Overview Objectives and Principal Strategies 4
This section contains important Summary of Important Risks 6
summary information about the Performance History 8
Funds. Summary of Expenses 14
Key Information 16
---------------------------------------------------------------------------------------------------------
The Funds LifePath Opportunity Fund 18
This section contains important LifePath 2010 Fund 18
information about the individual LifePath 2020 Fund 18
Funds. LifePath 2030 Fund 18
LifePath 2040 Fund 18
General Investment Risks 24
Organization and Management
of the Funds 30
---------------------------------------------------------------------------------------------------------
Your Investment Your Account 32
Turn to this section for How to Buy Shares 33
information on how to open How to Sell Shares 34
an account and how to buy, How to Exchange Shares 35
sell and exchange Fund shares.
---------------------------------------------------------------------------------------------------------
Reference Other Information 36
Look here for additional Table of Predecessors 37
information and term Glossary 38
definitions. Prospectus/Supplemental
Annual Report Information 41
</TABLE>
<PAGE>
LifePath Funds Overview
--------------------------------------------------------------------------------
See the individual Funds descriptions in this Prospectus for further details.
Words appearing in italicized print and highlighted in color are defined in the
glossary.
The LifePath Funds all have the same objective. They are designed to maximize
assets for retirement or for other purposes consistent with the quantitatively
measured risk investors may be willing to accept given their stated investment
time horizons. Each Fund is managed for investors planning to retire or to begin
to withdraw substantial portions of their investment in the Fund's target year.
In buying securities for each Fund, Barclays Global Fund Advisors ("BGFA"), the
Funds' investment advisor, does not select individual companies. Instead, BGFA
focuses on selecting a mix of indexes by measuring their risk level and expected
returns based on a proprietary set of criteria. The Funds then allocate a
portion of their assets to each index appropriate for each individual Fund.
Where possible, the Funds buy all the securities that comprise the index. If the
index includes too many securities to buy them all, the Funds buy a
representative sample. The Funds seek to match the index's return as closely as
possible. The Funds focus on the selection of indexes or asset classes and do
not try to avoid individual under-performing securities investments nor do they
try to pick individual investments that might outperform the index.
FUND OBJECTIVE
The Fund is managed for investors who
LifePath Opportunity Fund have retired or who are planning to
retire or begin to withdraw substantial
portions of their investment
approximately in the year 2000.
The Fund is managed for investors
LifePath 2010 Fund planning to retire or begin to withdraw
substantial portions of their investment
approximately in the year 2010.
The Fund is managed for investors
LifePath 2020 Fund planning to retire or begin to withdraw
substantial portions of their investment
approximately in the year 2020.
The Fund is managed for investors
LifePath 2030 Fund planning to retire or begin to withdraw
substantial portions of their investment
approximately in the year 2030.
The Fund is managed for investors
LifePath 2040 Fund planning to retire or begin to withdraw
substantial portions of their investment
approximately in the year 2040.
4 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
This strategy stems from the belief that asset allocation decisions--which index
or investment category you choose--matter more to overall investment
performance than individual security selection--which stock or bond you choose.
The LifePath Funds pursue a strategy of allocating and reallocating investments
among indexes representing stocks, bonds and money market instruments to capture
returns and reduce risk consistent with a stated investment horizon. Funds with
longer time horizons invest more of their assets in stocks to provide capital
appreciation over the long term. Funds with shorter time horizons replace some
of their stock holdings with bonds and money market instruments to reduce risk
and price volatility. Funds with shorter time horizons also have lower expected
returns than Funds with longer time horizons.
PRINCIPAL STRATEGY
We invest in a combination of fixed-income, money market and equity securities
using an asset allocation strategy that is designed to maintain the lowest risk
profile of all the LifePath Funds. The LifePath Opportunity Fund continues to
allocate a portion of its assets to stocks and bonds in addition to money market
instruments, because we believe that most investors are still willing to take
some risks in pursuing returns even while drawing on their investments. On
average, we expect that about 20% of this Fund's assets will be invested in
stocks, with the rest in bonds and money market instruments.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2010. As of the end of the Fund's
last fiscal year, the LifePath 2010 Fund held about 45% of its assets in stocks,
49% of its assets in bonds, and the rest of its assets in money market
instruments. As the year 2010 approaches, the Fund will increasingly resemble
the LifePath Opportunity Fund.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2020. As of the end of the Fund's
last fiscal year, the LifePath 2020 Fund held about 67% of its assets in
stocks, 29% of its assets in bonds, and the rest of its assets in money market
instruments. As the stated time horizon approaches, the allocation will become
less risky and have lower expected returns.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2030. As of the end of the Fund's
last fiscal year, the LifePath 2030 Fund held about 83% of its assets in
stocks, 15% of its assets in bonds, and the rest of its assets in money market
instruments. As the stated time horizon approaches, the allocation will become
less risky and have lower expected returns.
We invest in a combination of equity, fixed-income, and money market securities
using an asset allocation strategy designed to produce high total return for
investors expecting to retire around the year 2040. As of the end of the Fund's
last fiscal year, the LifePath 2040 Fund held about 98% of its assets in
stocks, 1% of its assets in bonds, and a small portion of its assets in money
market instruments. As the stated time horizon approaches, the allocation will
become less risky and have lower expected returns.
LifePath Funds Prospectus 5
<PAGE>
Summary of Important Risks
--------------------------------------------------------------------------------
This section summarizes important risks that are common to all of the Funds
described in this Prospectus, and important risks that relate specifically to
particular Funds. Both are important to your investment choice. Additional
information about these and other risks is included in:
. the individual Fund descriptions later in this Prospectus;
. under the "General Investment Risks" section beginning on page 24; and
. in the Funds' Statement of Additional Information.
An investment in a Fund is not a deposit of Wells Fargo Bank and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. It is possible to lose money by investing in a Fund.
COMMON RISKS FOR THE FUNDS
Equity Securities
The LifePath Funds invest in equity securities; and the longer time horizon
Funds, such as the LifePath 2030 and LifePath 2040 Funds, invest a majority
of their assets in equity securities. This type of investment is subject to
equity market risk. This is the risk that stocks prices will fluctuate and
can decline and reduce the value of a Fund's portfolio. As of the date of
this Prospectus, the equity markets, as measured by the S&P 500 Index and
other commonly used indexes, are trading at or close to record levels.
There can be no guarantee that these levels will continue.
Foreign Securities
The LifePath Funds may invest in foreign equity and debt securities.
Foreign company investments (made through American Depositary Receipts
("ADRs") and similar instruments), foreign obligations, and emerging market
investments are subject to additional risk, including less liquidity and
greater price volatility. A Fund's investment in foreign companies, foreign
obligations and emerging markets are also subject to special risks
associated with international investing, including currency, political,
regulatory and diplomatic risks. The shorter time horizon Funds generally
invest less than 15% of their assets in foreign or emerging market
securities. Foreign obligations, as well as securities of U.S. branches of
foreign banks and foreign branches of U.S. banks are subject to additional
risks, such as political turmoil, the imposition of foreign withholding
taxes, and the establishment of exchange controls or the adoption of other
foreign governmental restrictions that may affect the payment of principal
and/or interest on these securities.
6 LifePath Funds Prospectus
<PAGE>
COMMON RISKS FOR THE FUNDS
Fixed-Income Securities
The LifePath Funds invest in debt instruments, such as notes and bonds; and the
shorter time horizon funds, such as the LifePath Opportunity and LifePath 2010
Funds, invest a majority of their assets in debt instruments. These types of
investments are subject to credit risks and interest rate risk. Credit risk is
the possibility that an issuer of an instrument will be unable to make interest
payments or repay principal. Changes in the financial strength of an issuer or
changes in the credit rating of a security may affect its value. Interest rate
risk is the risk that interest rates may increase, which will reduce the resale
value of instruments in a Fund's portfolio. The Funds may invest in bonds of any
maturity length, depending on the recommended asset allocation. However, the
Funds may only invest in securities of investment grade quality, that is, ranked
in the four highest categories. Debt instruments with longer maturities are
generally more sensitive to interest rates changes than those with shorter
maturities. Changes in market interest rates do not affect the rate payable on
debt instruments held in a Fund, unless the instrument has adjustable or
variable rate features, which can reduce interest rate risk. Changes in market
interest rates, may also extend or shorten the duration of certain types of
instruments, such as asset-backed securities, thereby affecting their value and
the return on your investment. Mortgage- and asset-backed securities and
collateralized mortgage obligations ("CMOs") are subject to prepayment
acceleration and extension risk, either of which can reduce the rate of return
on the portfolio. Asset-backed securities are subject to risk of default on the
underlying assets, particularly during periods of economic downturn.
Asset Allocation Models
The Funds use investment models to assess market conditions and recommend asset
mixes appropriate to the risk tolerance of each Fund. We seek allocations that
offer the highest expected return while keeping within a Fund's statistically
determined risk of loss. In other words, the Funds seek the highest expected
return in exchange for the level of risk appropriated to the Fund. There is no
guarantee that the model will make accurate determinations or that an asset
class will perform as expected. We seek to replicate the performance of the
various indexes in a Fund's allocation. During periods when an index loses
value, that portion of your investment will also lose value. We may incur a
higher than average portfolio turnover ratio resulting from allocation shifts
recommended by the model. Portfolio turnover can result in higher fees and may
trigger tax consequences.
LifePath Funds Prospectus 7
<PAGE>
Performance History
--------------------------------------------------------------------------------
The information on the following pages shows you how each Fund has
performed and illustrates the variability of a Fund`s returns over
time. Each Fund`s average annual returns from inception and for one-
year periods are compared to the performance of several appropriate
broad-based indexes.
Please remember that past performance is no guarantee of future
results.
LifePath Opportunity Fund Class I Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 17.16
'96 6.04
'97 10.43
'98 10.14
'99 4.50
</TABLE>
Best Qtr.: Q2 `97 . 5.62% Worst Qtr.: Q2 `99 . -0.49%
* Performance shown reflects the performance of the A shares and does
not reflect sales charges. If they did, returns would be lower. The
Class I shares' year-to-date performance through March 31, 2000 was
1.57%.
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/6/
Class I (Incept. 11/8/99)/2/ -1.53 8.28 6.70
S&P 500 Index/3/ 21.03 28.54 24.17
LB Aggregate Bond Index/4/ -0.82 7.73 6.13
LB Gov't/Corp.Bond Index/5/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
1. Returns shown reflect applicable sales charges.
2. Performance shown for this Class reflects the performance of the Class A
shares and includes sales charges and expenses that are not applicable to the
Institutional Class shares.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond Index
(also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
5. Lehman Brothers Government/Corporate Bond Index.
6. March 1, 1994.
8 LifePath Funds Prospectus
<PAGE>
LifePath 2010 Fund Class I Calendar Year Returns (%)*
<TABLE>
<S> <C>
'95 23.56
'96 10.50
'97 16.27
'98 15.67
'99 9.10
</TABLE>
Best Qtr.: Q4 `98 . 9.99% Worst Qtr.: Q3 `98 . -3.57%
* Performance shown reflects the performance of the A shares and does not
reflect sales charges. If they did, returns would be lower. The Class I
shares' year-to-date performance through March 31, 2000 was 1.84%.
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
Class I (Incept. 11/8/99)/2/ 2.80 13.56 11.19
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 7.73
LB Gov't/Corp.Bond Index/6/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
1. Returns shown reflect applicable sales charges.
2. Performance shown for this Class reflects the performance of the Class A
shares and includes sales charges and expenses that are not applicable to the
Institutional Class shares.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating Fund
performance, this index, which includes mortgage-backed securities in its
composition, provides a closer comparison than the LB Gov't/Corp. Bond Index
(also shown in the table) of certain asset classes in which the Fund
invests. It will be used as the appropriate broad-based securities market
index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
LifePath Funds Prospectus 9
<PAGE>
Performance History
--------------------------------------------------------------------------------
LifePath 2020 Fund Class I Calendar Year Returns (%)*
<TABLE>
<S> <C>
1995 27.13
1996 13.21
1997 20.90
1998 19.59
1999 13.72
</TABLE>
Best Qtr.: Q4 '98 . 14.48% Worst Qtr.: Q3 '98 . -6.81%
* Performance shown reflects the performance of the A shares and does not
reflect sales charges. If they did, returns would be lower. The Class I
shares' year-to-date performance through March 31, 2000 was 2.13%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class I (Incept. 11/8/99)/2/ 7.15 17.40 14.46
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
MFR Taxable Retail Money Market Fund Index 4.52 5.44 5.32
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for this Class reflects the performance of the Class A
shares and includes sales charges and expenses that are not applicable
to the Institutional Class shares.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating
Fund performance, this index, which includes mortgage-backed securities
in its composition, provides a closer comparison than the LB Gov't/Corp.
Bond Index (also shown in the table) of certain asset classes in which
the Fund invests. It will be used as the appropriate broad-based
securities market index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
10 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
LifePath 2030 Fund Class I Calendar Year Returns (%)*
<TABLE>
<S> <C>
1995 30.76
1996 15.32
1997 24.14
1998 22.40
1999 16.46
</TABLE>
Best Qtr.: Q4 '98 . 17.93% Worst Qtr.: Q3 '98 . -9.23%
* Performance shown reflects the performance of the A shares and does not
reflect sales charges. If they did, returns would be lower. The Class I
shares' year-to-date performance through March 31, 2000 was 2.60%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class I (Incept. 11/8/99)/2/ 9.74 20.25 16.78
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for this Class reflects the performance of the Class A
shares and includes sales charges and expenses that are not applicable
to the Institutional Class shares.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating
Fund performance, this index, which includes mortgage-backed securities
in its composition, provides a closer comparison than the LB
Gov't/Corp. Bond Index (also shown in the table) of certain asset
classes in which the Fund invests. It will be used as the appropriate
broad-based securities market index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
LifePath Funds Prospectus 11
<PAGE>
Performance History
--------------------------------------------------------------------------------
LifePath 2040 Fund Class I Calendar Year Returns (%)*
<TABLE>
<S> <C>
1995 32.21
1996 18.41
1997 26.49
1998 25.17
1999 21.02
</TABLE>
Best Qtr.: Q4 '98 . 21.54% Worst Qtr.: Q3 '98 . -11.63%
* Performance shown reflects the performance of the A shares and does not
reflect sales charges. If they did, returns would be lower. The Class I
shares' year-to-date performance through March 31, 2000 was 2.62%.
<TABLE>
<CAPTION>
Average annual total returns (%)/1/
Since
for the period ended 12/31/99 1 year 5 year Inception/7/
<S> <C> <C> <C>
Class I (Incept. 11/8/99)/2/ 14.03 23.10 19.34
S&P 500 Index/3/ 21.03 28.54 24.17
MSCI/EAFE Index/4/ 27.30 13.15 11.15
LB Aggregate Bond Index/5/ -0.82 7.73 6.13
LB Gov't/Corp. Bond Index/6/ -2.15 7.61 5.96
</TABLE>
1. Returns shown reflect applicable sales charges.
2. Performance shown for this Class reflects the performance of the Class A
shares and includes sales charges and expenses that are not applicable
to the Institutional Class shares.
3. S&P 500 is a registered trademark of Standard & Poor's.
4. Morgan Stanley Capital International/Europe, Asia and Far East Index.
5. Lehman Brothers Aggregate Bond Index. For the purposes of evaluating
Fund performance, this index, which includes mortgage-backed securities
in its composition, provides a closer comparison than the LB
Gov't/Corp. Bond Index (also shown in the table) of certain asset
classes in which the Fund invests. It will be used as the appropriate
broad-based securities market index for this Fund going forward.
6. Lehman Brothers Government/Corporate Bond Index.
7. March 1, 1994.
12 LifePath Funds Prospectus
<PAGE>
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--------------------------------------------------------------------------------
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
These tables are intended to help you understand the various costs and
expenses you will pay as a shareholder in a Fund. These tables do not reflect
charges that may be imposed in connection with an account through which you
hold Fund shares.
SHAREHOLDER FEES
<TABLE>
<CAPTION>
All Funds
---------------------------------------------------------------------------------------------------------------------
<S> <C>
Maximum sales charge (load) imposed on purchases (as a percentage
of offering price) None
Maximum deferred sales charge (load) (as a percentage of the lower
of the NAV at purchase or the NAV at redemption) None
---------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
LifePath
Opportunity Fund LifePath 2010 Fund
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Management Fees 0.55% 0.55%
Distribution (12b-1) Fees 0.00% 0.00%
Other Expenses/1/ 0.61% 0.54%
----------------------------------------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES/2/ 1.16% 1.09%
----------------------------------------------------------------------------------------------------------------------
Fee Waivers 0.11% 0.04%
----------------------------------------------------------------------------------------------------------------------
NET EXPENSES/3/ 1.05% 1.05%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
/1/ Other expenses are based on estimated amounts for the current fiscal
year due to various contract charges that became effective on November
8, 1999.
/2/ Expenses include expenses of the Master Portfolio.
/3/ The Administrator has committed through June 30, 2001 to waive fees
and/or reimburse expenses to the extent necessary to maintain the Fund's
net operating expense ratio shown.
EXAMPLE OF EXPENSES
These examples are intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The examples assume a
fixed rate of return and that fund operating expenses remain the same. Your
actual costs may be higher or lower than those shown.
You would pay the following expenses on a $10,000 investment assuming a 5%
annual return and that you redeem your shares at the end of each period:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
LifePath
Opportunity Fund LifePath 2010 Fund
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1 YEAR $ 107 $ 107
3 YEARS $ 358 $ 343
5 YEARS $ 628 $ 597
10 YEARS $1,399 $1,325
---------------------------------------------------------------------------------------------------------------------
</TABLE>
14 LifePath Funds Prospectus
<PAGE>
Summary of Expenses
--------------------------------------------------------------------------------
LifePath 2020 Fund LifePath 2030 Fund LifePath 2040 Fund
--------------------------------------------------------------------------------
0.55% 0.55% 0.55%
0.00% 0.00% 0.00%
0.50% 0.51% 0.62%
--------------------------------------------------------------------------------
1.05% 1.06% 1.17%
--------------------------------------------------------------------------------
0.00% 0.01% 0.12%
--------------------------------------------------------------------------------
1.05% 1.05% 1.05%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
LifePath 2020 Fund LifePath 2030 Fund LifePath 2040 Fund
--------------------------------------------------------------------------------
$ 107 $ 107 $ 105
$ 334 $ 336 $ 360
$ 579 $ 584 $ 632
$1,283 $1,293 $1,410
--------------------------------------------------------------------------------
LifePath Funds Prospectus 15
<PAGE>
Key Information
--------------------------------------------------------------------------------
What is a "Master/Feeder Fund Arrangement" and why is it used?
The Funds in this Prospectus are feeder funds in a master/feeder fund
arrangement. In a master/feeder fund arrangement, a "feeder" fund
invests all of its assets in a "master" fund that has an identical
investment objective and policies as the feeder fund. Feeder funds
investing in the same master fund can reduce their expenses through
sharing the costs of managing a large pool of assets. References to the
activities of the LifePath Funds are understood to be references to the
master fund (also described as the "Master Portfolio") as applicable.
-----------------------------------------------------------------------
Key Terms
An "asset class" is a broad category of investments such as "bonds" or
"equities." "Allocation" refers to the distribution of portfolio assets
among two or more asset classes. The LifePath Funds offered in this
Prospectus are managed using a computer model that recommends the
allocation of assets according to a Fund's investment objective and
risk tolerance.
-----------------------------------------------------------------------
Important information you should look for as you decide to invest in a
Fund:
The summary information on the previous pages is designed to provide
you with an overview of each Fund. The sections that follow provide
more detailed information about the investments and management of each
Fund.
-----------------------------------------------------------------------
Investment Objective and Investment Strategies
The investment objective of each Fund in this Prospectus is
non-fundamental, that is, it can be changed by a vote of the Board of
Trustees alone. The objectives and strategies descriptions for each
Fund tell you:
. what the Fund is trying to achieve;
. how we intend to invest your money; and
. what makes a Fund different from the other Funds offered in this
Prospectus.
-----------------------------------------------------------------------
Permitted Investments
A summary of the Fund's key permitted investments and practices.
-----------------------------------------------------------------------
Important Risk Factors
Describes the key risk factors for the Fund, and includes risks
described in the "Summary of Important Risks" and "General Investment
Risks" sections.
Words appearing in italicized print and highlighted in color are
defined in the Glossary.
16 LifePath Funds Prospectus
<PAGE>
This page intentionally left blank
--------------------------------------------------------------------------------
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
Investment Objective
Each LifePath Fund seeks to provide investors with an asset allocation
strategy designed to maximize assets for retirement or for other
purposes consistent with the quantitatively measured risk that
investors, on average, may be willing to accept given their investment
time horizons. Investors are encouraged to select a particular LifePath
Fund based on their investment time horizon. Specifically:
. LifePath Opportunity Fund is managed for investors who have retired
or who are planning to retire (or begin to withdraw substantial
portions of their investment) approximately in the year 2000. The
Fund also may be appropriate for investors with a shorter time
horizon. The Fund does not terminate in the Year 2000, but will
continue with the lowest risk profile of all the LifePath Funds. It
is expected that when the LifePath 2010 Fund's target date arrives,
the LifePath 2010 Fund will be combined with the LifePath
Opportunity Fund under the same investment strategy. The LifePath
Opportunity Fund will continue to follow an asset allocation
strategy that will invest approximately 20% equity securities, with
the remainder in debt securities and cash.
. LifePath 2010 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2010.
. LifePath 2020 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2020.
. LifePath 2030 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2030.
. LifePath 2040 Fund is managed for investors planning to retire or
begin to withdraw substantial portions of their investment
approximately in the year 2040.
-----------------------------------------------------------------------
Investment Strategies
The LifePath Funds were the first Funds of their kind to offer a
flexible investment strategy designed to change over specific time
horizons. Typically, long-term investment goals are pursued with a more
aggressive mix of equities and fixed-income securities than short-term
goals. The allocation of each Fund gradually grows more conservative as
the year in the Fund's title approaches. You are encouraged to choose
the LifePath Fund whose title year most closely matches the year during
which you expect to begin regularly redeeming shares.
Keep in mind, however, that the year in each Fund's title also serves
as a guide to the relative aggressiveness of each Fund, where the
LifePath 2040 Fund has the most aggressive asset allocation and the
LifePath Opportunity Fund has the least aggressive asset allocation. If
you have a low risk tolerance, you may not wish to invest in the
LifePath 2040 Fund, for example, even if you do not expect to retire
for another forty years. Conversely, you may feel comfortable choosing
a more aggressive LifePath Fund for a near-term investment goal.
We allocate and reallocate assets among a wide range of indexes
representing U.S. and international common stocks, fixed-income
securities and money market instruments according to the recommended
mix suitable for each Fund's risk level. Under normal conditions, the
LifePath Opportunity Fund will typically invest 80% of its assets in
fixed-income classes and up to 20% in equities as it seeks stable
income production and reduced volatility. The more aggressive Funds may
invest in up to 100% stocks, but as their title year approaches, their
allocation will increasingly resemble the current allocation of the
LifePath Opportunity Fund.
18 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
The LifePath Opportunity Fund will not terminate when it reaches the
year 2000. Instead, the Fund will enter its "post target" strategy
during which it will seek to maximize total return consistent with
assuming the lowest risk of any LifePath series. The Fund will continue
to follow an asset allocation strategy among three broad investment
classes: equity and debt securities of domestic and foreign issuers and
cash in the form of money market instruments. However, unlike the
remaining LifePath Funds with target dates, during its post-target
strategy the LifePath Opportunity Fund will no longer reduce its
investment risk through time. Instead, the Fund is expected to have a
long-term average mix of approximately 20% equity securities, with the
remainder in AAA-rated debt securities and money market instruments. In
the same manner as all LifePath Funds, the LifePath Opportunity Fund
will continue to employ a tactical asset allocation component, which
will alter the investment mix to account for changing expected risks
and opportunities. When other LifePath Funds reach their target date,
it is expected that shareholders will be asked to approve combining
such Funds with the LifePath Opportunity Fund.
-----------------------------------------------------------------------
Asset Allocation Decisions
In buying securities for each Fund, Barclays Global Fund Advisors
("BGFA"), the Funds' investment advisor, does not select individual
companies. Instead, BGFA focuses on selecting a mix of indexes by
measuring their risk level and expected returns based on a proprietary
set of criteria. The Funds then allocate a portion of their assets to
each index appropriate for each individual Fund. Where possible, the
Funds buy all the securities that comprise the index. If the index
includes too many securities to buy them all, the Funds buy a
representative sample. The Funds seek to match the index's return as
closely as possible. The Funds focus on the selection of indexes or
asset classes and do not try to avoid individual under-performing
securities investments nor do they try to pick individual investments
that might out perform the index. This strategy stems from the belief
that asset allocation decisions--which index or investment category you
choose--matter more to overall investment performance than individual
security selection--which stock or bond you choose.
-----------------------------------------------------------------------
Risk Tolerance
Two general rules of investing have shaped the Funds' strategies:
. Higher investment returns usually go hand-in-hand with higher
risk; put another way, the greater its potential for loss.
Historically, for example, stocks have out performed bonds, but the
worst year for stocks on record was much worse than the worst year
for bonds.
. The longer an investors' time horizon, the greater their risk
tolerance. Their investments have more time to recoup their losses.
The LifePath Funds with longer time horizons take more risks. This
normally gives investors the potential for greater returns than the
Funds with shorter time horizons. As a Fund approaches its time
horizon, and its investors have less time to recover from market
declines, the Fund systematically reduce the level of risk. This
systematic shift toward more stable investments should help secure the
value of your LifePath investment as the time nears for you to begin
drawing on it.
BGFA does not limit the analysis to long-term expectations. The Funds
also take into account short-term market conditions. If conditions in a
market have increased risk levels of an investment type or index to a
point that its risk outweighs its expected returns, the Funds will not
allocate as much of their assets to it as it otherwise might.
Conversely, the Funds may reduce their allocation, even when risks have
not increased, because its expected return has fallen. This usually
happens because prices in a market have risen so high that the
potential for further gains appears limited.
LifePath Funds Prospectus 19
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
Model-Driven Decisions
The Fund's assets are allocated across investment groups according to a
sophisticated mathematical model that was developed in 1993 and is
continually refined. BGFA's investment professionals conduct ongoing
research to enhance the model and to ensure it is keeping pace with the
world's constantly changing financial markets. Using this model, BGFA
gains a consistent and objective structure for making investment
decisions. Unlike traditional investment funds that employ individual
portfolio managers who make decisions on a more subjective basis, BGFA
applies a scientific approach to investing through the use of such
models.
-----------------------------------------------------------------------
After a Fund Reaches its Time Horizon
By the time a Fund reaches the decade identified by its name, it has
reached its least aggressive state in terms of building capital. This
does not mean that it invests exclusively in money market instruments.
Rather, because BGFA believes that most investors are still willing to
take some risks in pursuing returns even while drawing on their
investments, the Fund continues to allocate a portion of its assets to
stocks and bonds, in addition to money market instruments. On average,
BGFA expects that about 20% of the Fund's assets will be invested in
stocks, with the remainder in AAA-rated debt securities and money
market instruments.
-----------------------------------------------------------------------
Permitted Investments
We do not select individual securities based on traditional investment
analysis. Instead, we allocate investments across a mix of indexes
representing as many as 17 asset classes by measuring their risk levels
and expected returns based on a proprietary set of criteria. The Funds
then allocate a portion of their assets to each index appropriate for
each individual Funds. Where possible, the Funds buy all the securities
that comprise an index. If the index includes too many securities to
buy them all, the Funds buy a representative sample. The Funds seek to
match each index's total return as closely as possible.
We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investment, either to
maintain liquidity or for short-term defensive purpose when we believe
it is in the best interests of shareholders to do so. During these
periods, the Fund may not achieve its objective of maximizing assets
for retirement.
We seek exposure to U.S. and foreign equity markets by investing in
securities of the following stock indexes as closely as possible:
. The S&P/BARRA Value Stock Index, which consists primarily of
large-capitalization of U.S. stocks with lower than average
price-to-book ratios;
. The S&P/BARRA Growth Stock Index, which consists primarily of
large-capitalization U.S. stocks with higher than average
price-to-book ratios;
. The Intermediate Capitalization Value Index, which consists
primarily of medium-capitalization U.S. stocks with lower than
average price-to-book ratios;
. The Intermediate Capitalization Growth Index, which consists
primarily of medium-capitalization U.S. stocks with higher than
average price-to-book ratios;
. The Intermediate Capitalization Utility Stock Index, which consists
primarily of medium-capitalization U.S. utility stocks;
. The Micro Capitalization Market Index, which consists primarily of
small-capitalization U.S. stocks;
20 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
. The Small Capitalization Value Stock Index, which consists
primarily of small-capitalization U.S. stocks with lower than
average price-to-book ratios;
. The Small Capitalization Growth Stock Index, which consists
primarily of small-capitalization U.S. stocks with higher than
average price-to-book ratios;
. The Morgan Stanley Capital International Japan Index, consisting
primarily of large-capitalization Japanese stocks; and
. The Morgan Stanley Capital International Europe, Australia, Far
East ex-Japan Index, consisting primarily of non-Japanese foreign
stocks.
We seek exposure to the U.S. fixed-income markets by investing in
securities representative of the following indexes:
. The Lehman Brothers Long-Term Government Bond Index, which consists
of all U.S. Government bonds with maturities of at least ten years;
. The Lehman Brothers Intermediate-Government Bond Index, which
consists of all U.S. Government bonds with maturities of less than
ten years but more than one year;
. The Lehman Brothers Long-Term Corporate Bond Index, which consists
of all investment-grade U.S. corporate bonds with maturities of at
least ten years;
. The Lehman Brothers Intermediate-Term Corporate Bond Index, which
consists of all investment-grade U.S. corporate bonds with
maturities of less than ten years but more than one year;
. The Lehman Brothers Mortgage-Backed Securities Index, which
consists of all fixed-coupon mortgage pass-throughs issued by or
backed by the U.S. Government or its agencies.
We seek foreign debt market exposure through investment in securities
representative of the Solomon Brothers Non-U.S. World Government Bond
Index, which consists of a range of foreign government bonds with
maturities of greater than one year.
We also invest in high-quality money market instruments, including U.S.
Government obligations, obligations of foreign and domestic banks,
short-term corporate debt instruments and repurchase agreements. In
addition, under normal market conditions, we may invest:
. in call and put options on stock indexes, stock index futures,
options on stock index futures, interest rate and interest rate
futures contracts as a substitute for a comparable market position
in stocks; and
. in interest rate and index swaps.
We are not required to keep a minimum investment in any of the asset
classes, nor are we prohibited from investing substantially all of our
assets in a single class. The allocation may shift at any time.
We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investments, either to
maintain liquidity or for short-term defensive purposes when we believe
it is in the best interests of shareholders to do so. During these
periods, the Fund may not achieve its objective of maximizing assets
for retirement.
LifePath Funds Prospectus 21
<PAGE>
LifePath Funds
--------------------------------------------------------------------------------
Portfolio Allocations
As of February 29, 2000, each Fund's asset weighting was as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
LifePath
Opportunity LifePath LifePath LifePath LifePath
Asset Class Fund 2010 Fund 2020 Fund 2030 Fund 2040 Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Instruments 14% 6% 4% 2% 1%
Bonds 65% 49% 29% 15% 1%
Stocks of Largest U.S. Companies 10% 29% 46% 56% 68%
Stocks of all other U.S. Companies 5% 5% 6% 7% 10%
Stocks Trading Outside the U.S. 6% 11% 15% 20% 20%
</TABLE>
Portfolio Management
The Funds are managed by a team of advisors who, using the allocation
models, jointly make investment decisions for the Funds.
---------------------------------------------------------------------------
Important Risk Factors
We may incur a higher than average portfolio turnover ratio due to
allocation shifts recommended by the investment model. Foreign obligations
may entail additional risks. The value of investments in options on stock
indexes is affected by price level movements for a particular index, rather
than price movements for an individual issue.
You should consider the "Summary of Important Risks" section on page 6; the
"General Investment Risks" section beginning on page 24; and the specific
risks listed here. They are all important to your investment choice.
22 LifePath Funds Prospectus
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
This table is intended to help you understand the Fund's Institutional class
financial performance for the past 5 years (or since inception, if shorter).
Total returns represent the rate that you would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends and
distributions). KPMG LLP audited this information which, along with their report
and the Fund's financial statements, is available upon request in the Fund's
annual report.
FOR A SHARE OUTSTANDING
<TABLE>
<CAPTION>
LIFEPATH
OPPORTUNITY LIFEPATH LIFEPATH LIFEPATH LIFEPATH
FUND-- 2010 FUND-- 2020 FUND-- 2030 FUND-- 2040 FUND--
COMMENCED COMMENCED COMMENCED COMMENCED COMMENCED
ON ON ON ON ON
NOV. 8, 1999 NOV. 8, 1999 NOV. 8, 1999 NOV. 8, 1999 NOV. 8, 1999
----------------------------------------------------------------------------
Feb. 29, Feb. 29, Feb. 29, Feb. 29, Feb. 29,
For the period ended: 2000 2000 2000 2000 2000
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.66 $13.83 $16.01 $18.73 $19.97
Income from investment operations:
Net investment income (loss) 0.08 0.07 0.06 0.03 0.00
Net realized and unrealized gain (loss)
on investments 0.00 0.13 0.30 0.54 0.80
Total from investment operations 0.08 0.20 0.36 0.57 0.80
Less distributions:
Dividends from net investment income (0.05) (0.03) (0.02) (0.01) 0.00
Distributions from net realized capital gain (0.33) (1.05) (1.46) (2.22) (1.87)
Total from distributions (0.38) (1.08) (1.48) (2.23) (1.87)
Net asset value, end of period $10.36 $12.95 $14.89 $17.07 $18.90
Total return (not annualized) 0.53% 1.08% 1.74% 2.39% 3.27%
Ratios/supplemental data:
Net assets, end of period (000s) $ 134 $1,661 $3,879 $1,203 $1,069
Ratios to average net assets (annualized):/1/
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to
average net assets 3.56% 2.72% 1.69% 1.06% 0.24%
Portfolio turnover/2/ 55% 49% 43% 26% 29%
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses
(annualized) 1.05% 1.01% 1.01% 1.02% 1.01%
</TABLE>
/1/ Ratios include income earned and expenses charged to the Master Portfolio.
/2/ The Portfolio turnover rate reflects activity by the Master Portfolio.
LifePath Funds Prospectus 23
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
Understanding the risks involved in mutual fund investing will help you
make an informed decision that takes into account your risk tolerance and
preferences. You should carefully consider the risks common to investing in
all mutual funds, including the Wells Fargo Funds. Certain common risks are
identified in the Summary of Important Risks section on page 6. Other risks
of mutual fund investing include the following:
. Unlike bank deposits, such as CDs or savings accounts, mutual funds
are not insured by the FDIC.
. We cannot guarantee that we will meet our investment objectives.
. We do not guarantee the performance of a Fund, nor can we assure you that
the market value of your investment will not decline. We will not "make
good" any investment loss you may suffer, nor can anyone we contract with
to provide certain services, such as selling agents or investment
advisors, offer or promise to make good any such losses.
. Share prices--and therefore the value of your investment--will increase
and decrease with changes in the value of the underlying securities and
other investments. This is referred to as price volatility.
. Investing in any mutual fund, including those deemed conservative,
involves risk, including the possible loss of any money you invest.
. An investment in a single Fund, by itself, does not constitute a complete
investment plan.
. A Fund's investment in foreign and emerging markets are subject to
additional risks, including less liquidity and greater price volatility
and may also be subject to special risks associated with international
trade, including currency, information, political, regulatory and
diplomatic risk.
. The Funds may also use certain derivative instruments, such as options or
futures contracts. The term "derivatives" covers a wide number of
investments, but in general it refers to any financial instrument whose
value is derived, at least in part, from the price of another security or
a specified index, asset or rate. Some derivatives may be more sensitive
to interest rate changes or market moves, and some may be susceptible to
changes in yields or values due to their structure or contract terms.
. The Funds may invest a portion of their assets in U.S. Government
obligations, such as securities issued or guaranteed by the Government
National Mortgage Association ("GNMAs"), the Federal National Mortgage
Association ("FNMAs") and the Federal Home Loan Mortgage Corporation
("FHLMCs"). Each are mortgage-backed securities representing partial
ownership of a pool of residential mortgage loans. A "pool" or group of
such mortgages is assembled and, after being approved by the issuing or
guaranteeing entity, is offered to investors through securities
dealers. Mortgage-backed securities are subject to prepayment and
extension risk, which can alter the maturity of the securities and also
reduce the rate of return on the portfolio. Collateralized mortgage
obligations ("CMOs") typically represent principal-only and interest-only
portions of such securities and are subject to increased interest-rate
and credit risk.
Investment practices and risk levels are carefully monitored. Every attempt
is made to ensure that the risk exposure for each Fund remains within the
parameters of its objective.
What follows is a general list of the types of risks (some of which are
described previously) that may apply to a given Fund and a table showing
some of the additional investment practices that each Fund may use and the
risks associated with them. Additional information about these practices is
available in the Statement of Additional Information.
24 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Counter-Party Risk--The risk that the other party in a repurchase agreement
or other transaction will not fulfill its contract obligation.
Credit Risk--The risk that the issuer of a debt security will be unable to
make interest payments or repay principal on schedule. If an issuer does
default, the affected security could lose all of its value, or be
renegotiated at a lower interest rate or principal amount. Affected
securities might also lose liquidity. Credit risk also includes the risk
that a party in a transaction may not be able to complete the transaction
as agreed.
Currency Risk--The risk that a change in the exchange rate between
U.S. dollars and a foreign currency may reduce the value of an investment
made in a security denominated in that foreign currency.
Diplomatic Risk--The risk that an adverse change in the diplomatic
relations between the United States and another country might reduce the
value of liquidity of investments in either country.
Emerging Market Risk--The risk that the emerging market, as defined in the
glossary, may be more sensitive to certain economic changes. For example,
emerging market countries are often dependent on international trade and
are therefore often vulnerable to recessions in other countries. They may
have obsolete financial systems, have volatile currencies and may be more
sensitive than more mature markets to a variety of economic factors.
Emerging market securities may also be less liquid than securities of more
developed countries and could be difficult to sell, particularly during a
market downturn.
Experience Risk--The risk presented by a new or innovative security. The
risk is that insufficient experience exists to forecast how the security's
value might be affected by various economic conditions.
Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.
Interest Rate Risk--The risk that changes in interest rates can reduce the
value of an existing security. Generally, when interest rates increase, the
value of a debt security decreases. The effect is usually more pronounced
for securities with longer dates to maturity.
Leverage Risk--The risk that an investment practice, such as lending
portfolio securities or engaging in forward commitments or when-issued
securities transactions, may increase a Fund's exposure to market
risk, interest rate risk or other risks by, in effect, increasing assets
available for investment.
Liquidity Risk--The risk that a security cannot be sold at the time
desired, or cannot be sold without adversely affecting the price.
Market Risk--The risk that the value of a stock, bond or other security
will be reduced by market activity. This is a basic risk associated with
all securities.
Political Risk--The risk that political actions, events or instability may
be unfavorable for investments made in a particular nation's or region's
industry, government or markets.
Prepayment Risk--The risk that consumers will accelerate their prepayment
of mortgage loans or other receivables, which can shorten the maturity of a
mortgage-backed or other asset-backed security and reduce a portfolio's
rate of return.
Regulatory Risk--The risk that changes in government regulations will
adversely affect the value of a security. Also the risk that an
insufficiently regulated market might permit inappropriate trading
practices.
LifePath Funds Prospectus 25
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
In addition to the general risks discussed above, you should carefully
consider and evaluate any special risks that may apply to investing in a
particular Fund. See the "Important Risk Factors" section in the summary
for each Fund. You should also see the Statement of Additional Information
for additional information about the investment practices and risks
particular to each Fund.
26 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Investment Practice/Risk
The following table lists some of the additional investment practices of the
Funds, including some not disclosed in the Investment Objective and Investment
Strategies sections of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that
practice, but are among the more prominent. Market risk is assumed for each. See
the Investment Objective and Investment Strategies for each Fund or the
Statement of Additional Information for more information on these practices.
Investment practices and risk levels are carefully monitored. We attempt to
ensure that the risk exposure for each Fund remains within the parameters of its
objective.
Remember each Fund is designed to meet different investment needs and
objectives.
<TABLE>
<CAPTION>
ALL
INVESTMENT PRACTICE RISK FUNDS
<S> <C> <C>
Borrowing Policies
The ability to borrow from banks for temporary purposes Leverage Risk .
to meet shareholder redemptions.
Floating and Variable Rate Debt
Instruments with interest rates that are adjusted either Interest Rate and .
on a schedule or when an index or benchmark changes. Credit Risk
Foreign Securities
Equity securities issued by a non-U.S. company or debt Information, Political,
securities of non-U.S. companies or foreign Regulatory,
governments. Foreign securities may also be emerging Diplomatic, Liquidity .
market securities, which are subject to the same risks, and Currency Risk
but to a higher degree.
Illiquid Securities
A security that cannot be readily sold, or cannot be Liquidity Risk
readily sold without negatively affecting its fair price. .
Limited to 15% of total assets.
Loans of Portfolio Securities
The practice of loaning securities to brokers, dealers Credit, Counter-Party .
and financial institutions to increase return on those and Leverage Risk
securities. Loans may be made up to Investment Company
Act of 1940 limits (currently one-third of total assets,
including the value of the collateral received).
Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional Interest Rate, Credit .
interests in pools of consumer loans, such as mortgage Prepayment and
loans, car loans, credit card debt, or receivables held Experience Risk
in trust.
</TABLE>
LifePath Funds Prospectus 27
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ALL
INVESTMENT PRACTICE RISK FUNDS
<S> <C>
Options
The right or obligation to receive or deliver a security Credit, Information
or cash payment depending on the security's price or and Liquidity Risk
the performance of an index or benchmark. Types of .
options may include: options on securities, options on
a stock index, stock index futures and options on stock
index futures to protect liquidity and portfolio value.
Other Mutual Funds
A pro rata portion of the other fund's expenses,
in addition to the expenses paid by the Funds, will be Market Risk .
borne by Fund shareholders.
Privately Issued Securities
Securities that are not publicly traded but which may or Liquidity Risk
may not be resold in accordance with Rule 144A of the .
Securities Act of 1933.
Repurchase Agreements
A transaction in which the seller of a security agrees to Credit and
buy back a security at an agreed upon time and price, Counter-Party Risk .
usually with interest.
</TABLE>
28 LifePath Funds Prospectus
<PAGE>
This page intentionally left blank
--------------------------------------------------------------------------------
<PAGE>
Organization and Management of the Funds
--------------------------------------------------------------------------------
A number of different entities provide services to the Funds. This section shows
how the Funds are organized, lists the entities that perform different
services, and explains how these service providers are compensated. Further
information is available in the Statement of Additional Information for the
Funds.
About Wells Fargo Funds Trust
Each Fund is one of over 60 Funds of Wells Fargo Funds Trust (the "Trust"), an
open-end management investment company. The Trust was organized as a Delaware
business trust on March 10, 1999. The Board of Trustees of the Trust supervises
each Fund's activities, monitors its contractual arrangements with various
service providers and decides upon matters of general policy.
The Trust was created to succeed to the assets and operations of the various
mutual funds in the Stagecoach Family of Funds and the Norwest Advantage Family
of Funds. The holding company of Wells Fargo Bank, the investment advisor to the
Stagecoach Family of Funds, and the holding company of Norwest Investment
Management, Inc., the investment advisor to the Norwest Advantage Family of
Funds, merged in November 1998. Each of the Funds described in this Prospectus
has succeeded to the assets and operations of a corresponding Fund of Stagecoach
Trust. The performance and financial statement history of each predecessor Fund
has been assumed by the Wells Fargo Funds Trust Fund. The succession
transactions were approved by the shareholders of the Stagecoach Funds. The
Table on page 37 identifies the Stagecoach Trust predecessors to the Funds.
<TABLE>
<CAPTION>
BOARD OF TRUSTEES
Supervises the Funds' activities
-----------------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR CUSTODIAN
<S> <C>
Barclays Global Fund Advisors Investors Bank & Trust Company
45 Fremont Street, San Francisco, CA 200 Clarendon Street, Boston, MA
Manages the Funds' investment activities Provides safekeeping for the Funds' assets
-----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHAREHOLDER
TRANSFER SERVICING
DISTRIBUTOR ADMINISTRATOR AGENT AGENTS
<S> <C> <C> <C>
Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data Various Agents
111 Center St. 525 Market St. Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Dr.
Quincy, MA
Markets the Funds Manages the Maintains records Provide
and distributes Funds' business of shares and services to
Fund shares activities supervises the payment customers
of dividends
-----------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES FIRMS AND SELLING AGENTS
Advise current and prospective shareholders on their Fund investments
-----------------------------------------------------------------------------------------------------------
SHAREHOLDERS
</TABLE>
30 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
In the following sections, the percentages shown are the percentages of the
average daily net assets of each LifePath Fund paid on an annual basis for the
services described.
The Investment Advisor
Barclay's Global Fund Advisors ("BGFA"), a wholly owned subsidiary of Barclays
Global Investors, N.A. ("BGI"), and an indirect subsidiary of Barclays Bank PLC,
is the advisor for each of the LifePath Master Portfolios. BGFA invests the
Funds' assets according to various asset allocation models. No particular
individuals are responsible for the day-to-day management of the Funds. BGFA was
created from the sale of Wells Fargo Nikko Investment Advisors, a former
affiliate of Wells Fargo Bank, to BGI. As of December 31, 1999, BGI managed or
provided investment advice for assets aggregating in excess of $783 billion. For
providing advisory services to the Master Portfolios, BGFA is entitled to
receive 0.55% of each Master Portfolio's net assets.
The Administrator
Wells Fargo Bank provides the Funds with administration services, including
general supervision of each Fund's operation, coordination of the other services
provided to each Fund, compilation of information for reports to the SEC and the
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trustees and officers. Wells Fargo Bank also
furnishes office space and certain facilities to conduct each Fund's business,
and compensates the Trustees. For providing these services Wells Fargo Bank is
entitled to receive a fee of 0.15% of the average annual net assets of each
Fund.
Shareholder Servicing Plan
We have a shareholder servicing plan for each Fund. We have agreements with
various shareholder servicing agents to process purchase and redemption
requests, to service shareholder accounts, and to provide other related
services. For these services, each Fund pays 0.25% of its average net assets.
The Transfer Agent
Boston Financial Data Services, Inc. ("BFDS") provides transfer agency and
dividend disbursing services to the Funds. For providing these services, BFDS
receives an annual fee, certain transaction-related fees, and is reimbursed for
out-of-pocket expenses incurred on behalf of the Funds.
LifePath Funds Prospectus 31
<PAGE>
Your Account
--------------------------------------------------------------------------------
This section tells you how Fund shares are priced, how to open an
account and how to buy, sell or exchange Fund shares once your account
is open.
Pricing Fund Shares
. As with all mutual fund investments, the price you pay to purchase
shares or the price you receive when you redeem shares is not
determined until after a request has been received in proper form.
. We determine the NAV of each Funds' shares each business day as of the
close of regular trading on the New York Stock Exchange ("NYSE"). We
determine the NAV by subtracting the Fund's liabilities from its total
assets, and then dividing the result by the total number of
outstanding shares of that Fund. Each Fund's assets are generally
valued at current market prices. See the Statement of Additional
Information for further disclosure.
. We process requests to buy or sell shares of the Funds each business
day as of the close of regular trading on the NYSE, which is usually
1:00 p.m. (Pacific time)/3:00 p.m. (Central time). If the markets
close early, the Funds may close early and may value their shares at
earlier times under these circumstances. Any request we receive in
proper form before this time is processed the same day. Requests we
receive after the cutoff time are processed the next business day.
. The Funds are open for business on each day the NYSE is open for
business. NYSE holidays include New Year's Day, Martin Luther
King, Jr. Day, President's Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When
any holiday falls on a weekend, the NYSE typically is closed on the
weekday immediately before or after such holiday.
Typically, Institutional Class shares are bought and held on your behalf by
the Institution through which you are investing. Check with your customer
account representative or your Customer Account Agreement for the rules
governing your investment.
Minimum Investments
Institutions are required to make a minimum initial investment of
$2,000,000 per Fund. There are no minimum subsequent investment
requirements so long as your Institution maintains account balances at or
above the minimum initial investment amount. Minimum initial investment
requirements may be waived for certain Institutions.
32 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
You can open a Fund account and buy Fund shares through an Institution
through which you have established a Customer Account. Investors interested
in purchasing Institutional shares of the Funds should contact an account
representative at their Institution and should understand the following:
. Share purchases are made through a Customer Account at an Institution
in accordance with the terms of the Customer Account involved;
. Institutions are usually the holders of record of Institutional shares
held through Customer Accounts and maintain records reflecting their
customers' beneficial ownership of the shares;
. Institutions are responsible for transmitting their customers' purchase
and redemption orders to the Funds and for delivering required payment
on a timely basis;
. The exercise of voting rights and the delivery of shareholder
communications from the Funds is governed by the terms of the Customer
Account involved; and
. Institutions may charge their customers account fees and may receive
fees from us with respect to investments their customers have made with
the Funds.
LifePath Funds Prospectus 33
<PAGE>
Your Account
--------------------------------------------------------------------------------
Institutional shares must be redeemed in accordance with the account
agreement governing your Customer Account at the Institution. Please read
the Customer Account agreement with your Institution for rules governing
selling shares.
GENERAL NOTES FOR SELLING SHARES
. We process requests we receive from an Institution in proper form
before the close of the NYSE, usually 1:00 p.m. (Pacific time)/3:00
p.m. (Central time), at the NAV determined on the same business day.
Requests we receive after this time are processed on the next
business day.
. Redemption proceeds are usually wired to the redeeming Institution
the following business day.
. If you purchased shares through a packaged investment product or
retirement plan, read the directions for selling shares provided by
the product or plan. There may be special requirements that supersede
the directions in this Prospectus.
. We reserve the right to delay payment of a redemption so that we may
be reasonably certain that investments made by check or ACH have been
collected. Payments of redemptions also may be delayed under
extraordinary circumstances or as permitted by the SEC in order to
protect remaining shareholders. Payments of redemptions also may be
delayed up to seven days under normal circumstances, although it is
not our policy to delay such payments.
. Generally, we pay redemption requests in cash, unless the redemption
request is for more than $250,000 or 1% of the net assets of the Fund
by a single shareholder over a ninety-day period. If a request for a
redemption is over these limits it may be to the detriment of
existing shareholders. Therefore, we may pay the redemption in part
on in whole in securities of equal value.
34 LifePath Funds Prospectus
<PAGE>
How to Exchange Shares
--------------------------------------------------------------------------------
Exchanges between Wells Fargo Funds are two transactions:a sale of one Fund
and the purchase of another. In general, the same rules and procedures that
apply to sales and purchases apply to exchanges. There are, however,
additional factors you should keep in mind while making or considering an
exchange:
. You should carefully read the Prospectus for the Fund into which you
wish to exchange.
. Every exchange involves selling Fund shares and that sale may produce a
capital gain or loss for federal income tax purposes.
. In order to discourage excessive Fund transaction expenses that must be
borne by other shareholders, we reserve the right to limit or reject
exchange orders.
. You may make exchanges between like shares of non-money market Funds and
the Service Class shares of money market Funds. Under certain
circumstances, you may exchange Institutional Class shares for Class A
shares at NAV of the same or different Funds. See the Statement of
Additional Information or contact your institution for details.
Generally, we will notify you up to 60 days in advance of any changes in
your exchange privileges.
LifePath Funds Prospectus 35
<PAGE>
Other Information
--------------------------------------------------------------------------------
Dividend and Capital Gain Distributions
The Funds in this Prospectus pay any dividends, periodically and make
capital gains distributions at least annually.
Contact your Institution for distribution options.
Taxes
The following discussion regarding taxes is based on laws that were in
effect as of the date of this Prospectus and summarizes only some of the
material federal income tax considerations affecting the Funds and their
Shareholders. It is not intended as a substitute for careful tax planning
and does not discuss state, local or foreign income tax considerations. You
should consult your tax advisor with respect to your specific tax
situation. Please see the Statement of Additional Information for further
income tax considerations.
We will pass on to you any net capital gain (generally the excess of net
long-term capital gains over net short-term capital losses) earned by a
Fund as a capital gain distribution. In general, these distributions will
be taxable to you as long-term capital gains which may qualify for taxation
at preferential rates in the hands of non-corporate shareholders. Any
distribution that is not from net investment income, short term capital
gains, or net capital gain may be characterized as a return of capital to
shareholders.
36 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
The Funds in this Prospectus were created as part of the reorganization
of the Stagecoach Family of Funds, advised by Wells Fargo Bank, N.A.,
and the Norwest Advantage Family of Funds, advised by Norwest
Investment Management, Inc., into a single mutual fund complex. The
reorganization followed the merger of the advisors' parent companies.
Each Fund is an accounting survivor of a former Stagecoach Trust fund,
as indicated in the Table of Predecessors below. The performance
histories and financial highlights of each Fund are the performance
histories and financial highlights of the predecessor fund.
Wells Fargo Funds Trust Predecessor Fund
LifePath Opportunity Fund Stagecoach LifePath Opportunity Fund
LifePath 2010 Fund Stagecoach LifePath 2010 Fund
LifePath 2020 Fund Stagecoach LifePath 2020 Fund
LifePath 2030 Fund Stagecoach LifePath 2030 Fund
LifePath 2040 Fund Stagecoach LifePath 2040 Fund
LifePath Funds Prospectus 37
<PAGE>
Glossary
--------------------------------------------------------------------------------
We provide the following definitions to assist you in reading this Prospectus.
For a more complete understanding of these terms you should consult your
financial advisor.
ACH
Refers to the "Automated Clearing House" system maintained
by the Federal to assist you in Reserve Bank which allows
banks to process checks, transfer funds and perform reading
this other tasks.
American Depositary Receipts ("ADRs")
Receipts for non-U.S. company stocks. The stocks underlying
ADRs are typically understanding of held in bank vaults.
The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in
foreign companies.
Asset-Backed Securities
Securities consisting of an undivided fractional interest
in pools of consumer loans, such as car loans or credit
card debt, or receivables held in trust.
Business Day
Any day the New York Stock Exchange is open is a business
day for the Funds.
Capital Appreciation, Capital Growth
The increase in the value of a security. See also "total
return."
Capitalization
When referring to the size of a company, capitalization
means the total number of a company's outstanding shares of
stock multiplied by the price per share. This is an
accepted method of determining a company's size and is
sometimes referred to as "market capitalization."
Collateralized Mortgage Obligations ("CMOs")
Securities collateralized by portfolios of mortgage pass-
through securities. CMOs are structured into multiple
classes, and are paid according to class maturity, shortest
maturities paid first.
Debt Securities
Generally, a promise to pay interest and repay principal by
an individual or group of individuals sold as a security.
The owner of the security is entitled to receive any such
payments. Examples include bonds and mortgage- and other
asset-backed securities and can include securities in which
the right to receive interest and principal repayment have
been sold separately.
Derivatives
Securities whose values are derived in part from the value
of another security or index. An example is a stock option.
Distributions
Dividends and/or capital gains paid by a Fund on its
shares.
Diversified
A diversified fund, as defined by the Investment Company
Act of 1940, is one that invests in cash, Government
securities, other investment companies and no more than 5%
of its total assets in a single issuer. These policies must
apply to 75% of the Funds' total assets.
Duration
A measure of a security's or portfolio's sensitivity to
changes in interest rates. Duration is usually expressed in
years, with longer durations typically more sensitive to
interest rate changes than shorter durations.
38 LifePath Funds Prospectus
<PAGE>
--------------------------------------------------------------------------------
Emerging Markets
Markets associated with a country that is considered by international financial
organizations, such as the International Finance Corporation and the
International Bank for Reconstruction and Development, and the international
financial community to have an "emerging" stock market. Such markets may be
under-capitalized, have less-developed legal and financial systems or may have
less stable currencies than markets in the developed world.
FDIC
The Federal Deposit Insurance Corporation. This is the company that provides
federally sponsored insurance covering bank deposits such as savings accounts
and CDs. Mutual funds are not FDIC insured.
FHLMC
FHLMC securities are commonly known as "Freddie Mac" and are issued by the
Federal Home Loan Mortgage Corporation. FNMA FNMA securities are commonly known
as "Fannie Maes" and are issued by the Federal National Mortgage Association.
GNMA
GNMA securities are commonly known as "Ginnie Maes" and are issued by the
Government National Mortgage Association.
Illiquid Security
A security which cannot be readily sold, or cannot be readily sold without
negatively affecting its fair price.
Institution
An affiliate, franchise or correspondent bank of Wells Fargo & Company and other
institutions.
Investment-Grade Debt
A type of bond rated in the top four investment categories by a nationally
recognized ratings organization. Generally these are bonds whose issuers are
considered to have a strong ability to pay interest and repay principal,
although some investment-grade bonds may have some speculative characteristics.
Liquidity
The ability to readily sell a security at a fair price.
Money Market Instruments
High-quality short-term instruments meeting the requirements of Rule 2a-7 of the
1940 Act, such as bankers' acceptances, commercial paper, repurchase agreements
and government obligations. In a money market fund, average portfolio maturity
does not exceed 90 days, and all investments have maturities of 397 days or less
at the time of purchase.
Net Asset Value ("NAV")
The value of a single fund share. It is determined by adding together all of a
Fund's assets, subtracting accrued expenses and other liabilities, then dividing
by the total number of shares.
Options
An option is the right to buy or sell a security based on an agreed upon price
at a specified time. For example, an option may give the holder of a stock the
right to sell the stock to another party, allowing the seller to profit if the
price has fallen below the agreed price. Options may also be based on the
movement of an index such as the S&P 500.
LifePath Funds Prospectus 39
<PAGE>
Glossary
--------------------------------------------------------------------------------
Public Offering Price ("POP")
The NAV with the sales load added.
Quantitatively Measured Risk
Risk that gauges both the frequency and degree to which an asset class
will perform below the long-term expected average.
Repurchase Agreement
An agreement between a buyer and seller of a security in which the
seller agrees to repurchase the security at an agreed upon price and
time.
Selling Agent
A person who has an agreement with the Funds' distributors that allows
them to sell a Fund's shares. Shareholder Servicing Agent Anyone
appointed by the Fund to maintain shareholder accounts and
records, assist and provide information to shareholders or perform
similar functions.
S&P, S&P 500 Index
Standard and Poor's, a nationally recognized ratings organization. S&P
also publishes various indexes or lists of companies representative of
sectors of the U.S. economy.
Statement of Additional Information
A document that supplements the disclosure made in the Prospectus.
Time Horizon
An investments time horizon marks the point when investors plan to
start making net withdrawals. As a general rule, investors with a
longer time horizon have a greater tolerance for risk than investors
with shorter time horizons. Long-term investors are more likely to
accept a greater risk of short-term loss for the opportunity of
achieving greater long-term gains.
Total Return
The total value of capital growth and the value of all
distributions, assuming that distributions were used to purchase
additional shares of the Funds.
Turnover Ratio
The percentage of the securities held in a Fund's portfolio, other than
short-term securities, that were bought or sold within a year.
U.S.Government Obligations
Obligations issued or guaranteed by the U.S. Government, its agencies
or instrumentalities.
40 LifePath Funds Prospectus
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
The information below describes the growth of a hypothetical $10,000
investment in Class A shares of each of the LifePath Funds. The maximum
sales charges have been applied, and each Fund's performance is compared
to several broad-based securities indexes representing the various
components of each LifePath portfolio. This information supersedes the
information found on pages 5-7 of your Annual Report for the year ended
February 29, 2000. That information included the performance of the
Lehman Brothers Treasury Bond Index instead of the applicable Lehman
Brothers Aggregate Bond Index as one of the broad-based securities
index benchmarks for the LifePath Funds. The Lehman Brothers Aggregate
Bond Index is shown in the charts below.
WELLS FARGO - LIFEPATH Opportunity Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
Opportunity Class A Bond Index Composite Index Money Fund Average Opportunity Class I
-------------------- ------------------------- ---------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,295 $ 9,753 $ 9,564 $10,024 $ 9,862
Apr-94 $ 9,247 $ 9,675 $ 9,687 $10,049 $ 9,811
May-94 $ 9,257 $ 9,674 $ 9,846 $10,078 $ 9,821
Jun-94 $ 9,192 $ 9,653 $ 9,604 $10,108 $ 9,753
Jul-94 $ 9,344 $ 9,845 $ 9,920 $10,140 $ 9,914
Aug-94 $ 9,420 $ 9,857 $10,326 $10,173 $ 9,995
Sep-94 $ 9,292 $ 9,712 $10,074 $10,209 $ 9,859
Oct-94 $ 9,321 $ 9,703 $10,300 $10,245 $ 9,889
Nov-94 $ 9,206 $ 9,682 $ 9,925 $10,285 $ 9,767
Dec-94 $ 9,244 $ 9,748 $10,072 $10,328 $ 9,808
Jan-95 $ 9,400 $ 9,941 $10,333 $10,373 $ 9,973
Feb-95 $ 9,623 $10,178 $10,736 $10,420 $10,210
Mar-95 $ 9,713 $10,240 $11,052 $10,468 $10,306
Apr-95 $ 9,851 $10,384 $11,377 $10,516 $10,452
May-95 $10,125 $10,785 $11,831 $10,564 $10,743
Jun-95 $10,221 $10,864 $12,106 $10,613 $10,844
Jul-95 $10,320 $10,840 $12,507 $10,660 $10,950
Aug-95 $10,389 $10,971 $12,538 $10,707 $11,023
Sep-95 $10,506 $11,078 $13,067 $10,754 $11,146
Oct-95 $10,536 $11,222 $13,020 $10,800 $11,178
Nov-95 $10,706 $11,390 $13,591 $10,848 $11,359
Dec-95 $10,831 $11,550 $13,853 $10,895 $11,492
Jan-96 $10,933 $11,626 $14,324 $10,940 $11,600
Feb-96 $10,872 $11,424 $14,457 $10,985 $11,535
Mar-96 $10,849 $11,344 $14,596 $11,029 $11,510
Apr-96 $10,859 $11,280 $14,811 $11,073 $11,521
May-96 $10,869 $11,257 $15,191 $11,118 $11,532
Jun-96 $10,940 $11,408 $15,249 $11,162 $11,607
Jul-96 $10,846 $11,439 $14,575 $11,207 $11,507
Aug-96 $10,908 $11,420 $14,883 $11,251 $11,574
Sep-96 $11,136 $11,618 $15,719 $11,296 $11,815
Oct-96 $11,305 $11,876 $16,153 $11,342 $11,994
Nov-96 $11,579 $12,079 $17,372 $11,387 $12,286
Dec-96 $11,485 $11,967 $17,028 $11,433 $12,186
Jan-97 $11,593 $12,004 $18,091 $11,478 $12,300
Feb-97 $11,604 $12,034 $18,234 $11,524 $12,312
Mar-97 $11,445 $11,901 $17,486 $11,570 $12,143
Apr-97 $11,631 $12,079 $18,528 $11,618 $12,340
May-97 $11,882 $12,194 $19,661 $11,667 $12,607
Jun-97 $12,088 $12,339 $20,535 $11,714 $12,826
Jul-97 $12,409 $12,672 $22,168 $11,765 $13,166
Aug-96 $12,243 $12,564 $20,927 $11,815 $12,990
Sep-97 $12,493 $12,749 $22,071 $11,864 $13,255
Oct-97 $12,471 $12,934 $21,334 $11,915 $13,232
Nov-97 $12,549 $12,993 $22,322 $11,965 $13,315
Dec-97 $12,683 $13,125 $22,706 $12,016 $13,457
Jan-98 $12,791 $13,293 $22,958 $12,068 $13,571
Feb-98 $12,995 $13,282 $24,613 $12,115 $13,788
Mar-98 $13,172 $13,327 $25,873 $12,167 $13,976
Apr-98 $13,245 $13,397 $26,137 $12,217 $14,053
May-98 $13,221 $13,524 $25,688 $12,268 $14,027
Jun-98 $13,355 $13,639 $26,731 $12,319 $14,170
Jul-98 $13,331 $13,667 $26,447 $12,370 $14,144
Aug-98 $13,025 $13,890 $22,626 $12,422 $13,820
Sep-98 $13,337 $14,215 $24,076 $12,473 $14,150
Oct-98 $13,571 $14,140 $26,031 $12,529 $14,399
Nov-98 $13,731 $14,220 $27,608 $12,582 $14,569
Dec-98 $13,970 $14,263 $29,232 $12,631 $14,822
Jan-99 $14,062 $14,364 $30,454 $12,679 $14,919
Feb-99 $13,825 $14,113 $31,401 $12,721 $14,668
3/31/99 $14,000 $14,191 $32,657 $12,768 $14,854
4/30/99 $14,145 $14,236 $33,920 $12,814 $15,008
5/31/99 $13,986 $14,111 $33,120 $12,860 $14,840
6/30/99 $14,144 $14,066 $34,922 $12,905 $15,007
7/31/99 $14,077 $14,007 $33,831 $12,954 $14,936
8/31/99 $14,051 $14,000 $33,664 $13,005 $14,908
9/30/99 $14,074 $14,162 $32,741 $13,055 $14,933
10/31/99 $14,249 $14,214 $34,814 $13,108 $15,119
11/30/99 $14,384 $14,213 $35,520 $13,160 $15,247
12/31/99 $14,598 $14,145 $37,613 $13,217 $15,462
1/31/00 $14,331 $14,098 $35,724 $13,273 $15,196
2/29/00 $14,443 $14,269 $35,049 $13,328 $15,314
______ Wells Fargo LifePath Opportunity Class A - - - - S & P 500 Composite Index
...... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
WELLS FARGO - LIFEPATH 2010 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2010 Class A Bond Index Composite Index Money Fund Average 2010 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,276 $ 9,753 $ 9,564 $10,024 $ 9,841
Apr-94 $ 9,228 $ 9,675 $ 9,687 $10,049 $ 9,791
May-94 $ 9,266 $ 9,674 $ 9,846 $10,078 $ 9,831
Jun-94 $ 9,189 $ 9,653 $ 9,604 $10,108 $ 9,750
Jul-94 $ 9,360 $ 9,845 $ 9,920 $10,140 $ 9,931
Aug-94 $ 9,465 $ 9,857 $10,326 $10,173 $10,042
Sep-94 $ 9,319 $ 9,712 $10,074 $10,209 $ 9,888
Oct-94 $ 9,396 $ 9,703 $10,300 $10,245 $ 9,969
Nov-94 $ 9,195 $ 9,682 $ 9,925 $10,285 $ 9,756
Dec-94 $ 9,269 $ 9,748 $10,072 $10,328 $ 9,834
Jan-95 $ 9,444 $ 9,941 $10,333 $10,373 $10,020
Feb-95 $ 9,737 $10,178 $10,736 $10,420 $10,331
Mar-95 $ 9,888 $10,240 $11,052 $10,468 $10,491
Apr-95 $10,075 $10,384 $11,377 $10,516 $10,689
May-95 $10,429 $10,785 $11,831 $10,564 $11,065
Jun-95 $10,570 $10,864 $12,106 $10,613 $11,214
Jul-95 $10,768 $10,840 $12,507 $10,660 $11,425
Aug-95 $10,808 $10,971 $12,538 $10,707 $11,467
Sep-95 $11,016 $11,078 $13,067 $10,754 $11,688
Oct-95 $11,016 $11,222 $13,020 $10,800 $11,688
Nov-95 $11,286 $11,390 $13,591 $10,848 $11,974
Dec-95 $11,453 $11,550 $13,853 $10,895 $12,151
Jan-96 $11,656 $11,626 $14,324 $10,940 $12,367
Feb-96 $11,626 $11,424 $14,457 $10,985 $12,335
Mar-96 $11,639 $11,344 $14,596 $11,029 $12,349
Apr-96 $11,721 $11,280 $14,811 $11,073 $12,436
May-96 $11,804 $11,257 $15,191 $11,118 $12,524
Jun-96 $11,863 $11,408 $15,249 $11,162 $12,586
Jul-96 $11,625 $11,439 $14,575 $11,207 $12,334
Aug-96 $11,728 $11,420 $14,883 $11,251 $12,444
Sep-96 $12,099 $11,618 $15,719 $11,296 $12,837
Oct-96 $12,318 $11,876 $16,153 $11,342 $13,069
Nov-96 $12,818 $12,079 $17,372 $11,387 $13,600
Dec-96 $12,656 $11,967 $17,028 $11,433 $13,427
Jan-97 $12,932 $12,004 $18,091 $11,478 $13,721
Feb-97 $12,975 $12,034 $18,234 $11,524 $13,766
Mar-97 $12,714 $11,901 $17,486 $11,570 $13,490
Apr-97 $13,068 $12,079 $18,528 $11,618 $13,866
May-97 $13,540 $12,194 $19,661 $11,667 $14,366
Jun-97 $13,905 $12,339 $20,535 $11,714 $14,753
Jul-97 $14,478 $12,672 $22,168 $11,765 $15,361
Aug-96 $14,056 $12,564 $20,927 $11,815 $14,914
Sep-97 $14,507 $12,749 $22,071 $11,864 $15,392
Oct-97 $14,300 $12,934 $21,334 $11,915 $15,172
Nov-97 $14,518 $12,993 $22,322 $11,965 $15,403
Dec-97 $14,714 $13,125 $22,706 $12,016 $15,612
Jan-98 $14,866 $13,293 $22,958 $12,068 $15,773
Feb-98 $15,369 $13,282 $24,613 $12,115 $16,306
Mar-98 $15,760 $13,327 $25,873 $12,167 $16,722
Apr-98 $15,878 $13,397 $26,137 $12,217 $16,847
May-98 $15,772 $13,524 $25,688 $12,268 $16,734
Jun-98 $16,047 $13,639 $26,731 $12,319 $17,026
Jul-98 $15,976 $13,667 $26,447 $12,370 $16,951
Aug-98 $14,958 $13,890 $22,626 $12,422 $15,871
Sep-98 $15,474 $14,215 $24,076 $12,473 $16,418
Oct-98 $16,105 $14,140 $26,031 $12,529 $17,087
Nov-98 $16,522 $14,220 $27,608 $12,582 $17,530
Dec-98 $17,020 $14,263 $29,232 $12,631 $18,058
Jan-99 $17,275 $14,364 $30,454 $12,679 $18,328
Feb-99 $16,893 $14,113 $31,401 $12,721 $17,923
Mar-99 $17,225 $14,191 $32,657 $12,768 $18,276
Apr-99 $17,571 $14,236 $33,920 $12,814 $18,643
May-99 $17,289 $14,111 $33,120 $12,860 $18,344
Jun-99 $17,672 $14,066 $34,922 $12,905 $18,750
Jul-99 $17,479 $14,007 $33,831 $12,954 $18,545
Aug-99 $17,415 $14,000 $33,664 $13,005 $18,477
Sep-99 $17,353 $14,162 $32,741 $13,055 $18,412
Oct-99 $17,781 $14,214 $34,814 $13,108 $18,866
Nov-99 $18,067 $14,213 $35,520 $13,160 $19,141
Dec-99 $18,569 $14,145 $37,613 $13,217 $19,668
Jan-00 $18,076 $14,098 $35,724 $13,273 $19,148
Feb-00 $18,160 $14,269 $35,049 $13,328 $19,237
______ Wells Fargo LifePath 2010 Class A - - - - S & P 500 Composite Index
...... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
41 LifePath Funds Prospectus
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
WELLS FARGO - LIFEPATH 2020 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2020 Class A Bond Index Composite Index Money Fund Average 2020 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,248 $ 9,753 $ 9,564 $10,024 $ 9,812
Apr-94 $ 9,239 $ 9,675 $ 9,687 $10,049 $ 9,802
May-94 $ 9,295 $ 9,674 $ 9,846 $10,078 $ 9,862
Jun-94 $ 9,184 $ 9,653 $ 9,604 $10,108 $ 9,744
Jul-94 $ 9,364 $ 9,845 $ 9,920 $10,140 $ 9,935
Aug-94 $ 9,516 $ 9,857 $10,326 $10,173 $10,097
Sep-94 $ 9,334 $ 9,712 $10,074 $10,209 $ 9,903
Oct-94 $ 9,439 $ 9,703 $10,300 $10,245 $10,015
Nov-94 $ 9,200 $ 9,682 $ 9,925 $10,285 $ 9,761
Dec-94 $ 9,293 $ 9,748 $10,072 $10,328 $ 9,859
Jan-95 $ 9,495 $ 9,941 $10,333 $10,373 $10,074
Feb-95 $ 9,814 $10,178 $10,736 $10,420 $10,412
Mar-95 $10,002 $10,240 $11,052 $10,468 $10,612
Apr-95 $10,225 $10,384 $11,377 $10,516 $10,849
May-95 $10,595 $10,785 $11,831 $10,564 $11,241
Jun-95 $10,774 $10,864 $12,106 $10,613 $11,431
Jul-95 $11,029 $10,840 $12,507 $10,660 $11,701
Aug-95 $11,058 $10,971 $12,538 $10,707 $11,733
Sep-95 $11,318 $11,078 $13,067 $10,754 $12,008
Oct-95 $11,278 $11,222 $13,020 $10,800 $11,966
Nov-95 $11,613 $11,390 $13,591 $10,848 $12,321
Dec-95 $11,814 $11,550 $13,853 $10,895 $12,534
Jan-96 $12,075 $11,626 $14,324 $10,940 $12,812
Feb-96 $12,065 $11,424 $14,457 $10,985 $12,801
Mar-96 $12,106 $11,344 $14,596 $11,029 $12,844
Apr-96 $12,218 $11,280 $14,811 $11,073 $12,963
May-96 $12,350 $11,257 $15,191 $11,118 $13,103
Jun-96 $12,406 $11,408 $15,249 $11,162 $13,163
Jul-96 $12,038 $11,439 $14,575 $11,207 $12,773
Aug-96 $12,181 $11,420 $14,883 $11,251 $12,924
Sep-96 $12,665 $11,618 $15,719 $11,296 $13,437
Oct-96 $12,901 $11,876 $16,153 $11,342 $13,688
Nov-96 $13,590 $12,079 $17,372 $11,387 $14,419
Dec-96 $13,375 $11,967 $17,028 $11,433 $14,190
Jan-97 $13,769 $12,004 $18,091 $11,478 $14,609
Feb-97 $13,833 $12,034 $18,234 $11,524 $14,677
Mar-97 $13,473 $11,901 $17,486 $11,570 $14,295
Apr-97 $13,955 $12,079 $18,528 $11,618 $14,806
May-97 $14,620 $12,194 $19,661 $11,667 $15,511
Jun-97 $15,115 $12,339 $20,535 $11,714 $16,037
Jul-97 $15,924 $12,672 $22,168 $11,765 $16,895
Aug-96 $15,288 $12,564 $20,927 $11,815 $16,220
Sep-97 $15,920 $12,749 $22,071 $11,864 $16,891
Oct-97 $15,562 $12,934 $21,334 $11,915 $16,512
Nov-97 $15,920 $12,993 $22,322 $11,965 $16,891
Dec-97 $16,169 $13,125 $22,706 $12,016 $17,156
Jan-98 $16,356 $13,293 $22,958 $12,068 $17,354
Feb-98 $17,149 $13,282 $24,613 $12,115 $18,195
Mar-98 $17,757 $13,327 $25,873 $12,167 $18,840
Apr-98 $17,909 $13,397 $26,137 $12,217 $19,002
May-98 $17,698 $13,524 $25,688 $12,268 $18,778
Jun-98 $18,127 $13,639 $26,731 $12,319 $19,233
Jul-98 $17,974 $13,667 $26,447 $12,370 $19,071
Aug-98 $16,209 $13,890 $22,626 $12,422 $17,197
Sep-98 $16,893 $14,215 $24,076 $12,473 $17,924
Oct-98 $17,874 $14,140 $26,031 $12,529 $18,965
Nov-98 $18,572 $14,220 $27,608 $12,582 $19,705
Dec-98 $19,340 $14,263 $29,232 $12,631 $20,519
Jan-99 $19,752 $14,364 $30,454 $12,679 $20,957
Feb-99 $19,211 $14,113 $31,401 $12,721 $20,383
Mar-99 $19,717 $14,191 $32,657 $12,768 $20,920
Apr-99 $20,286 $14,236 $33,920 $12,814 $21,523
May-99 $19,872 $14,111 $33,120 $12,860 $21,084
Jun-99 $20,544 $14,066 $34,922 $12,905 $21,798
Jul-99 $20,220 $14,007 $33,831 $12,954 $21,453
Aug-99 $20,116 $14,000 $33,664 $13,005 $21,343
Sep-99 $19,895 $14,162 $32,741 $13,055 $21,109
Oct-99 $20,664 $14,214 $34,814 $13,108 $21,925
Nov-99 $21,108 $14,213 $35,520 $13,160 $22,394
Dec-99 $21,993 $14,145 $37,613 $13,217 $23,349
Jan-00 $21,189 $14,098 $35,724 $13,273 $22,502
Feb-00 $21,217 $14,269 $35,049 $13,328 $22,532
------ Wells Fargo LifePath 2020 Class A - - - - S & P 500 Composite Index
...... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2030 Class A Bond Index Composite Index Money Fund Average 2030 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,144 $ 9,753 $ 9,564 $10,024 $ 9,702
Apr-94 $ 9,144 $ 9,675 $ 9,687 $10,049 $ 9,702
May-94 $ 9,210 $ 9,674 $ 9,846 $10,078 $ 9,772
Jun-94 $ 9,044 $ 9,653 $ 9,604 $10,108 $ 9,595
Jul-94 $ 9,262 $ 9,845 $ 9,920 $10,140 $ 9,827
Aug-94 $ 9,500 $ 9,857 $10,326 $10,173 $10,079
Sep-94 $ 9,284 $ 9,712 $10,074 $10,209 $ 9,851
Oct-94 $ 9,418 $ 9,703 $10,300 $10,245 $ 9,993
Nov-94 $ 9,150 $ 9,682 $ 9,925 $10,285 $ 9,708
Dec-94 $ 9,265 $ 9,748 $10,072 $10,328 $ 9,830
Jan-95 $ 9,477 $ 9,941 $10,333 $10,373 $10,055
Feb-95 $ 9,805 $10,178 $10,736 $10,420 $10,403
Mar-95 $10,020 $10,240 $11,052 $10,468 $10,632
Apr-95 $10,273 $10,384 $11,377 $10,516 $10,899
May-95 $10,709 $10,785 $11,831 $10,564 $11,362
Jun-95 $10,915 $10,864 $12,106 $10,613 $11,581
Jul-95 $11,198 $10,840 $12,507 $10,660 $11,881
Aug-95 $11,227 $10,971 $12,538 $10,707 $11,912
Sep-95 $11,541 $11,078 $13,067 $10,754 $12,245
Oct-95 $11,482 $11,222 $13,020 $10,800 $12,182
Nov-95 $11,874 $11,390 $13,591 $10,848 $12,598
Dec-95 $12,114 $11,550 $13,853 $10,895 $12,853
Jan-96 $12,406 $11,626 $14,324 $10,940 $13,163
Feb-96 $12,406 $11,424 $14,457 $10,985 $13,163
Mar-96 $12,461 $11,344 $14,596 $11,029 $13,221
Apr-96 $12,622 $11,280 $14,811 $11,073 $13,392
May-96 $12,784 $11,257 $15,191 $11,118 $13,564
Jun-96 $12,829 $11,408 $15,249 $11,162 $13,611
Jul-96 $12,381 $11,439 $14,575 $11,207 $13,136
Aug-96 $12,544 $11,420 $14,883 $11,251 $13,309
Sep-96 $13,114 $11,618 $15,719 $11,296 $13,913
Oct-96 $13,379 $11,876 $16,153 $11,342 $14,195
Nov-96 $14,228 $12,079 $17,372 $11,387 $15,096
Dec-96 $13,971 $11,967 $17,028 $11,433 $14,823
Jan-97 $14,443 $12,004 $18,091 $11,478 $15,324
Feb-97 $14,517 $12,034 $18,234 $11,524 $15,402
Mar-97 $14,082 $11,901 $17,486 $11,570 $14,940
Apr-97 $14,661 $12,079 $18,528 $11,618 $15,555
May-97 $15,462 $12,194 $19,661 $11,667 $16,405
Jun-97 $16,077 $12,339 $20,535 $11,714 $17,057
Jul-97 $17,083 $12,672 $22,168 $11,765 $18,125
Aug-96 $16,246 $12,564 $20,927 $11,815 $17,237
Sep-97 $17,053 $12,749 $22,071 $11,864 $18,093
Oct-97 $16,574 $12,934 $21,334 $11,915 $17,585
Nov-97 $17,032 $12,993 $22,322 $11,965 $18,070
Dec-97 $17,344 $13,125 $22,706 $12,016 $18,402
Jan-98 $17,535 $13,293 $22,958 $12,068 $18,605
Feb-98 $18,582 $13,282 $24,613 $12,115 $19,715
Mar-98 $19,374 $13,327 $25,873 $12,167 $20,556
Apr-98 $19,555 $13,397 $26,137 $12,217 $20,748
May-98 $19,273 $13,524 $25,688 $12,268 $20,449
Jun-98 $19,832 $13,639 $26,731 $12,319 $21,041
Jul-98 $19,617 $13,667 $26,447 $12,370 $20,813
Aug-98 $17,204 $13,890 $22,626 $12,422 $18,254
Sep-98 $18,002 $14,215 $24,076 $12,473 $19,100
Oct-98 $19,285 $14,140 $26,031 $12,529 $20,462
Nov-98 $20,217 $14,220 $27,608 $12,582 $21,450
Dec-98 $21,229 $14,263 $29,232 $12,631 $22,524
Jan-99 $21,756 $14,364 $30,454 $12,679 $23,083
Feb-99 $21,045 $14,113 $31,401 $12,721 $22,329
Mar-99 $21,689 $14,191 $32,657 $12,768 $23,012
Apr-99 $22,439 $14,236 $33,920 $12,814 $23,808
May-99 $21,910 $14,111 $33,120 $12,860 $23,247
Jun-99 $22,794 $14,066 $34,922 $12,905 $24,185
Jul-99 $22,326 $14,007 $33,831 $12,954 $23,688
Aug-99 $22,153 $14,000 $33,664 $13,005 $23,505
Sep-99 $21,821 $14,162 $32,741 $13,055 $23,152
Oct-99 $22,847 $14,214 $34,814 $13,108 $24,240
Nov-99 $23,464 $14,213 $35,520 $13,160 $24,867
Dec-99 $24,723 $14,145 $37,613 $13,217 $26,202
Jan-00 $23,647 $14,098 $35,724 $13,273 $25,068
Feb-00 $23,703 $14,269 $35,049 $13,328 $25,142
------ Wells Fargo LifePath 2030 Class A - - - - S & P 500 Composite Index
...... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
42 LifePath Funds Prospectus
<PAGE>
Prospectus/Supplemental Annual Report Information
--------------------------------------------------------------------------------
WELLS FARGO - LIFEPATH 2040 Class A Shares
<TABLE>
<CAPTION>
Wells Fargo LifePath Lehman Brothers Aggregate S & P 500 IBC All Taxable Wells Fargo LifePath
2040 Class A Bond Index Composite Index Money Fund Average 2040 Class I
-------------------- ------------------------- --------------- ------------------ --------------------
<S> <C> <C> <C> <C> <C>
Mar 1-94 $ 9,425 $10,000 $10,000 $10,000 $10,000
Mar-94 $ 9,084 $ 9,753 $ 9,564 $10,024 $ 9,638
Apr-94 $ 9,159 $ 9,675 $ 9,687 $10,049 $ 9,718
May-94 $ 9,263 $ 9,674 $ 9,846 $10,078 $ 9,828
Jun-94 $ 9,056 $ 9,653 $ 9,604 $10,108 $ 9,609
Jul-94 $ 9,303 $ 9,845 $ 9,920 $10,140 $ 9,870
Aug-94 $ 9,615 $ 9,857 $10,326 $10,173 $10,202
Sep-94 $ 9,391 $ 9,712 $10,074 $10,209 $ 9,964
Oct-94 $ 9,534 $ 9,703 $10,300 $10,245 $10,116
Nov-94 $ 9,230 $ 9,682 $ 9,925 $10,285 $ 9,793
Dec-94 $ 9,356 $ 9,748 $10,072 $10,328 $ 9,927
Jan-95 $ 9,567 $ 9,941 $10,333 $10,373 $10,150
Feb-95 $ 9,921 $10,178 $10,736 $10,420 $10,526
Mar-95 $10,175 $10,240 $11,052 $10,468 $10,796
Apr-95 $10,425 $10,384 $11,377 $10,516 $11,061
May-95 $10,838 $10,785 $11,831 $10,564 $11,500
Jun-95 $11,084 $10,864 $12,106 $10,613 $11,761
Jul-95 $11,441 $10,840 $12,507 $10,660 $12,139
Aug-95 $11,441 $10,971 $12,538 $10,707 $12,139
Sep-95 $11,795 $11,078 $13,067 $10,754 $12,514
Oct-95 $11,698 $11,222 $13,020 $10,800 $12,411
Nov-95 $12,124 $11,390 $13,591 $10,848 $12,863
Dec-95 $12,370 $11,550 $13,853 $10,895 $13,125
Jan-96 $12,719 $11,626 $14,324 $10,940 $13,495
Feb-96 $12,788 $11,424 $14,457 $10,985 $13,568
Mar-96 $12,870 $11,344 $14,596 $11,029 $13,655
Apr-96 $13,101 $11,280 $14,811 $11,073 $13,900
May-96 $13,332 $11,257 $15,191 $11,118 $14,145
Jun-96 $13,377 $11,408 $15,249 $11,162 $14,193
Jul-96 $12,844 $11,439 $14,575 $11,207 $13,627
Aug-96 $13,045 $11,420 $14,883 $11,251 $13,841
Sep-96 $13,704 $11,618 $15,719 $11,296 $14,540
Oct-96 $13,957 $11,876 $16,153 $11,342 $14,808
Nov-96 $14,916 $12,079 $17,372 $11,387 $15,826
Dec-96 $14,647 $11,967 $17,028 $11,433 $15,541
Jan-97 $15,262 $12,004 $18,091 $11,478 $16,193
Feb-97 $15,368 $12,034 $18,234 $11,524 $16,305
Mar-97 $14,858 $11,901 $17,486 $11,570 $15,765
Apr-97 $15,549 $12,079 $18,528 $11,618 $16,498
May-97 $16,538 $12,194 $19,661 $11,667 $17,546
Jun-97 $17,261 $12,339 $20,535 $11,714 $18,313
Jul-97 $18,401 $12,672 $22,168 $11,765 $19,524
Aug-96 $17,399 $12,564 $20,927 $11,815 $18,460
Sep-97 $18,333 $12,749 $22,071 $11,864 $19,451
Oct-97 $17,649 $12,934 $21,334 $11,915 $18,726
Nov-97 $18,205 $12,993 $22,322 $11,965 $19,315
Dec-97 $18,527 $13,125 $22,706 $12,016 $19,657
Jan-98 $18,762 $13,293 $22,958 $12,068 $19,907
Feb-98 $20,080 $13,282 $24,613 $12,115 $21,305
Mar-98 $21,091 $13,327 $25,873 $12,167 $22,377
Apr-98 $21,303 $13,397 $26,137 $12,217 $22,602
May-98 $20,879 $13,524 $25,688 $12,268 $22,152
Jun-98 $21,592 $13,639 $26,731 $12,319 $22,909
Jul-98 $21,356 $13,667 $26,447 $12,370 $22,659
Aug-98 $18,123 $13,890 $22,626 $12,422 $19,229
Sep-98 $19,081 $14,215 $24,076 $12,473 $20,245
Oct-98 $20,687 $14,140 $26,031 $12,529 $21,949
Nov-98 $21,868 $14,220 $27,608 $12,582 $23,201
Dec-98 $23,191 $14,263 $29,232 $12,631 $24,606
Jan-99 $23,863 $14,364 $30,454 $12,679 $25,318
Feb-99 $23,088 $14,113 $31,401 $12,721 $24,496
Mar-99 $23,939 $14,191 $32,657 $12,768 $25,399
Apr-99 $24,870 $14,236 $33,920 $12,814 $26,387
May-99 $24,236 $14,111 $33,120 $12,860 $25,715
Jun-99 $25,439 $14,066 $34,922 $12,905 $26,991
Jul-99 $24,818 $14,007 $33,831 $12,954 $26,332
Aug-99 $24,610 $14,000 $33,664 $13,005 $26,112
Sep-99 $24,144 $14,162 $32,741 $13,055 $25,617
Oct-99 $25,517 $14,214 $34,814 $13,108 $27,073
Nov-99 $26,333 $14,213 $35,520 $13,160 $27,922
Dec-99 $28,066 $14,145 $37,613 $13,217 $29,767
Jan-00 $26,659 $14,098 $35,724 $13,273 $28,296
Feb-00 $26,701 $14,269 $35,049 $13,328 $28,341
------ Wells Fargo LifePath 2040 Class A - - - - S & P 500 Composite Index
...... Lehman Brothers Aggregate Bond Index __ _ . IMoneyNet All Taxable Money Fund Average
</TABLE>
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 Institutional Class
shares have been in operation for less than one calendar year,
therefore the performance shown is for the Class A shares of each
respective Fund. The Fund's Administrator is contractually obligated to
reimburse each Fund for some of its operating expenses or to waive a
portion of the fees payable to it in order to maintain a certain
operating expense ratio. Actual reimbursements and waivers have a
positive effect on performance information. Without these reductions
the Funds' returns would have been lower.
Performance shown for each of the LifePath Funds prior to November
8, 1999 reflects performance of the Class A shares of the corresponding
predecessor Stagecoach Trust LifePath Funds. Effective at the close of
business on November 5, 1999, the Stagecoach Trust LifePath Funds were
reorganized into series of the Wells Fargo Funds.
2. For Class A shares, the maximum front-end sales charge is
5.75%. Institutional Class shares are sold without sales charges.
3. The charts compare the performance of the Wells Fargo LifePath Funds
Class A shares since inception with the S&P 500 Index, Lehman Brothers
Aggregate Bond Index, and the IMoneyNet Taxable Money Fund Average.The
charts assume a hypothetical $10,000 investment in Class A
shares, reflects all operating expenses and assumes the maximum initial
sales charge of 5.75%. 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 Lehman Brothers
Aggregate Bond Index is an unmanaged index composed of bonds, mortgage-
backed securities and asset-backed securities. IMoneyNet Taxable Money
Fund Average is an average of money market funds whose returns are
subject to federal, state and local income taxes. The indexes presented
do not incur expenses and are not available directly for investment.
Had these indexes incurred operating expenses, their performance would
have been lower.
43 LifePath Funds Prospectus
<PAGE>
YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENTS:
STATEMENT OF ADDITIONAL INFORMATION
supplements the disclosures made by this Prospectus. The Statement of
Additional Information has been filed with the SEC and incorporated by
reference into this Prospectus and is legally part of this Prospectus.
ANNUAL/SEMI-ANNUAL REPORTS
provide certain financial and other important information, including a
discussion of the market conditions and investment strategies that
significantly affected Fund performance, for the most recent reporting
period.
THESE DOCUMENTS ARE AVAILABLE FREE OF CHARGE:
Call: 1-800-222-8222; option 4
WRITE TO:
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266; or
Visit the SEC's website at http://www.sec.gov
REQUEST COPIES FOR A FEE BY WRITING TO:
SEC Public Reference Room
Washington, DC 20549-6009; or
by electronic request at [email protected]
Call: 1-800-SEC-0330 for details
ADDITIONAL SERVICES QUESTIONS CAN BE ANSWERED BY CALLING YOUR SPECIFIC
PRODUCT GROUP AT WELLS FARGO BANK:
Wells Fargo Checking and Savings: 1-800-869-3557
Next Stage IRA or Stagecoach IRA: 1-800-237-8472
Portfolio Advisor: 1-877-689-7882
<PAGE>
WELLS FARGO FUNDS TRUST
Telephone: 1-800-222-8222
STATEMENT OF ADDITIONAL INFORMATION
Dated July 1, 2000
LIFEPATH OPPORTUNITY FUND
LIFEPATH 2010 FUND
LIFEPATH 2020 FUND
LIFEPATH 2030 FUND
LIFEPATH 2040 FUND
Class A, Class B, Class C and Institutional Class
Wells Fargo Funds Trust (the "Trust") is an open-end, management investment
company. This Statement of Additional Information ("SAI") contains additional
information about five funds in the Wells Fargo Funds Trust family of funds
(each, a "Fund" and collectively, the "Funds") -- the LifePath Opportunity,
LifePath 2010, LifePath 2020, LifePath 2030 and LifePath 2040 Funds. Each Fund
is considered diversified under the Investment Company Act of 1940, as amended
(the "1940 Act"). Each Fund offers Class A, Class B, Class C and Institutional
Class shares. This SAI relates to all such classes of shares.
This SAI is not a prospectus and should be read in conjunction with the
Funds' Prospectus, dated July 1, 2000. All terms used in this SAI that are
defined in the Prospectus have the meanings assigned in the Prospectus. A copy
of the Prospectus may be obtained free of charge by calling 1-800-222-8222 or
writing to Wells Fargo Funds, P.O. Box 8266, Boston, MA 02266-8266.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Historical Fund Information...................................................... 1
Investment Policies.............................................................. 1
Operation of the LifePath Funds.................................................. 3
Additional Permitted Investment Activities and Associated Risks.................. 4
Management....................................................................... 19
Performance Calculations......................................................... 28
Determination of Net Asset Value................................................. 33
Additional Purchase and Redemption Information................................... 33
Portfolio Transactions........................................................... 35
Fund Expenses.................................................................... 36
Federal Income Taxes............................................................. 37
Capital Stock.................................................................... 42
Other............................................................................ 48
Counsel.......................................................................... 48
Independent Auditors............................................................. 48
Financial Information............................................................ 49
Appendix......................................................................... A-1
</TABLE>
<PAGE>
HISTORICAL FUND INFORMATION
On March 25, 1999, the Board of Trustees of Stagecoach Trust and the Board
of Trustees of the Trust approved an Agreement and Plan of Reorganization
providing for, among other things, the transfer of the assets and stated
liabilities of the predecessor Stagecoach Trust portfolios to the Funds (the
"Reorganization"). Prior to November 5, 1999, the effective date of the
Reorganization of the Funds and the predecessor Stagecoach Trust portfolios, the
Funds had only nominal assets.
The Funds described in this SAI were created as part of the Reorganization
of the Stagecoach family of funds, advised by Wells Fargo Bank, N.A. ("Wells
Fargo Bank" or "Advisor"), and the Norwest Advantage family of funds, advised by
Norwest Investment Management, Inc. ("NIM"), into a single mutual fund complex.
The Reorganization followed the merger of the advisors' parent companies.
The LifePath Opportunity, LifePath 2010, LifePath 2020, LifePath 2030 and
LifePath 2040 Funds (collectively, the "LifePath Funds") commenced operations on
November 8, 1999, as successors to the LifePath Funds of Stagecoach Trust. The
predecessor Stagecoach Trust LifePath Funds offered Class A, Class B, and Class
C shares. The Class B shares of the LifePath Opportunity Fund commenced
operations on June 30, 1998, and the Class C shares of the LifePath 2040 Fund
commenced operations on July 1, 1998. The Class B shares of all other LifePath
Funds commenced operations on March 1, 1997. The Class C shares of all other
LifePath Funds commenced operations on December 1, 1998. The Institutional
Class shares commenced operations on November 8, 1999. Prior to June 24, 1998,
the LifePath Opportunity Fund of Stagecoach Trust was named the LifePath 2000
Fund.
INVESTMENT POLICIES
Fundamental Investment Policies
-------------------------------
Each Fund has adopted the following investment policies, all of which are
fundamental policies; that is, they may not be changed without approval by the
holders of a majority (as defined in the 1940 Act) of the outstanding voting
securities of such Fund.
The Funds may not:
(1) purchase the securities of issuers conducting their principal business
activity in the same industry if, immediately after the purchase and as a result
thereof, the value of a Fund's investments in that industry would equal or
exceed 25% of the current value of the Fund's total assets, provided that this
restriction does not limit a Fund's: (i) investments in securities of other
investment companies, (ii) investments in securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, or (iii) investments in
repurchase agreements;
(2) purchase securities of any issuer if, as a result, with respect to 75%
of a Fund's total assets, more than 5% of the value of its total assets would be
invested in the securities of any one issuer or the Fund's ownership would be
more than 10% of the outstanding voting
1
<PAGE>
securities of such issuer, provided that this restriction does not limit a
Fund's investments in securities issued or guaranteed by the U.S. Government,
its agencies and instrumentalities, or investments in securities of other
investment companies;
(3) borrow money, except to the extent permitted under the 1940 Act,
including the rules, regulations and exemptions thereunder;
(4) issue senior securities, except to the extent permitted under the 1940
Act, including the rules, regulations and exemptions thereunder;
(5) make loans to other parties if, as a result, the aggregate value of
such loans would exceed one-third of a Fund's total assets. For the purposes of
this limitation, entering into repurchase agreements, lending securities and
acquiring any debt securities are not deemed to be the making of loans;
(6) underwrite securities of other issuers, except to the extent that the
purchase of permitted investments directly from the issuer thereof or from an
underwriter for an issuer and the later disposition of such securities in
accordance with a Fund's investment program may be deemed to be an underwriting;
(7) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the Fund from
investing in securities or other instruments backed by real estate or securities
of companies engaged in the real estate business); nor
(8) purchase or sell commodities, provided that (i) currency will not be
deemed to be a commodity for purposes of this restriction, (ii) this restriction
does not limit the purchase or sale of futures contracts, forward contracts or
options, and (iii) this restriction does not limit the purchase or sale of
securities or other instruments backed by commodities or the purchase or sale of
commodities acquired as a result of ownership of securities or other
instruments.
Non-Fundamental Investment Policies
-----------------------------------
Each Fund has adopted the following non-fundamental policies which may be
changed by the Trustees of the Trust or at any time without approval of such
Fund's shareholders.
(1) Each Fund may invest in shares of other investment companies, to the
extent permitted under the 1940 Act, including the rules, regulations and
exemptions thereunder.
(2) Each Fund may not invest or hold more than 15% of the Fund's net
assets in illiquid securities. For this purpose, illiquid securities include,
among others, (a) securities that are illiquid by virtue of the absence of a
readily available market or legal or contractual restrictions on resale, (b)
fixed time deposits that are subject to withdrawal penalties and that have
maturities of more than seven days, and (c) repurchase agreements not terminable
within seven days.
2
<PAGE>
(3) Each Fund may invest in futures or options contracts regulated by the
CFTC for (i) bona fide hedging purposes within the meaning of the rules of the
CFTC and (ii) for other purposes if, as a result, no more than 5% of the Fund's
net assets would be invested in initial margin and premiums (excluding amounts
"in-the-money") required to establish the contracts.
(4) Each Fund may lend securities from its portfolio to approved brokers,
dealers and financial institutions, to the extent permitted under the 1940 Act,
including the rules, regulations and exemptions thereunder, which currently
limit such activities to one-third of the value of a Fund's total assets
(including the value of the collateral received). Any such loans of portfolio
securities will be fully collateralized based on values that are marked-to-
market daily.
(5) Each Fund may not make investments for the purpose of exercising
control or management, provided that this restriction does not limit a Fund's
investments in securities of other investment companies or in entities created
under the laws of foreign countries to facilitate investment in securities in
that country.
(6) Each Fund may not purchase securities on margin (except for short-term
credits necessary for the clearance of transactions).
(7) Each Fund may not sell securities short, unless it owns or has the
right to obtain securities equivalent in kind and amount to the securities sold
short (short sales "against the box"), and provided that transactions in futures
contracts and options are not deemed to constitute selling securities short.
General
-------
Notwithstanding the foregoing policies, any other investment companies in
which the Funds may invest have adopted their own investment policies, which may
be more or less restrictive than those listed above, thereby allowing a Fund to
participate in certain investment strategies indirectly that are prohibited
under the fundamental and non-fundamental investment policies listed above.
OPERATION OF THE LIFEPATH FUNDS
-------------------------------
Each LifePath Fund seeks to achieve its investment objective by investing
all of its assets in a corresponding LifePath Master Portfolio of Master
Investment Portfolio ("MIP"). The LifePath Opportunity Fund invests its assets
in the LifePath 2000 Master Portfolio. The Funds and other entities investing
in a Master Portfolio are each liable for all obligations of the Master
Portfolio. However, the risk of a Fund incurring financial loss on account of
such liability is limited to circumstances in which both inadequate insurance
existed and MIP itself is unable to meet its obligations. Accordingly, the
Trust's Board of Trustees believes that neither a Fund nor its shareholders will
be adversely affected by investing Fund assets in the Master Portfolio. However,
if a mutual fund or other investor withdraws its investment from the Master
Portfolio, the economic efficiencies (e.g., spreading fixed expenses among a
larger asset base) that the Board believes may be available through investment
in the Master Portfolio may not be fully achieved. In addition, given the
relative novelty of the master/feeder structure, accounting or operational
difficulties, although unlikely, could arise. See "Organization and Management
of the Funds" in
3
<PAGE>
the Prospectus for additional description of the Funds' and Master Portfolios'
expenses and management.
Each LifePath Fund may withdraw its investment in the corresponding Master
Portfolio only if the Trust's Board of Trustees determines that such action is
in the best interests of such Fund and its shareholders. Upon such withdrawal,
the Board would consider alternative investments, including investing all of the
Fund's assets in another investment company with the same investment objective
as the Fund or hiring an investment advisor to manage the Fund's assets in
accordance with the investment policies described below with respect to the
Master Portfolio.
The investment objective and other fundamental policies of a Master
Portfolio cannot be changed without approval by the holders of a majority (as
defined in the 1940 Act) of the Master Portfolio's outstanding interests. See
"Investment Objectives" and "Investment Strategies" in the Prospectus. Whenever
a Fund, as an interestholder of a Master Portfolio, is requested to vote on any
matter submitted to interestholders of the Master Portfolio, the Fund will hold
a meeting of its shareholders to consider such matters. The Fund will cast its
votes in proportion to the votes received from its shareholders. Shares for
which the Fund receives no voting instructions will be voted in the same
proportion as the votes received from the other Fund shareholders.
Certain policies of a Master Portfolio which are non-fundamental may be
changed by vote of a majority of MIP's Trustees without interestholder approval.
If a Master Portfolio's investment objective or fundamental or non-fundamental
policies are changed, the corresponding LifePath Fund may elect to change its
objective or policies to correspond to those of the Master Portfolio. The Fund
may also elect to redeem its interests in the Master Portfolio and either seek a
new investment company with a matching objective in which to invest or retain
its own investment advisor to manage the Fund's portfolio in accordance with its
objective. In the latter case, a Fund's inability to find a substitute
investment company in which to invest or equivalent management services could
adversely affect shareholders' investments in the Fund. Each Fund will provide
shareholders with 30 days' written notice prior to the implementation of any
change in the investment objective of the Fund or the Master Portfolio, to the
extent possible.
The LifePath Funds contain both "strategic" and "tactical" components, with
the strategic component weighted more heavily than the tactical component. The
strategic component of the Funds evaluates the risk that investors, on average,
may be willing to accept given their investment time horizons. The strategic
component thus determines the changing investment risk level of each LifePath
Fund as time passes. The tactical component addresses short-term market
conditions. The tactical component thus adjusts the amount of investment risk
taken by each LifePath Fund without regard to horizon, but rather in
consideration of the relative risk-adjusted short-term attractiveness of various
asset classes.
ADDITIONAL PERMITTED INVESTMENT ACTIVITIES AND ASSOCIATED RISKS
Set forth below are descriptions of certain investments and additional
investment policies for the Funds. References to the activities of a LifePath
Fund are understood to refer to the investments of the core or master portfolios
in which it invests. For purposes of monitoring the investment policies and
restrictions of the Funds (with the exception of the loans of portfolio
4
<PAGE>
securities policy described below), the amount of any securities lending
collateral held by a Fund will be excluded in calculating total assets.
Asset-Backed Securities
-----------------------
The Funds may invest in various types of asset-backed securities. Asset-
backed securities are securities that represent an interest in an underlying
security. The asset-backed securities in which the Funds invest may consist of
undivided fractional interests in pools of consumer loans or receivables held in
trust. Examples include certificates for automobile receivables (CARS) and
credit card receivables (CARDS). Payments of principal and interest on these
asset-backed securities are "passed through" on a monthly or other periodic
basis to certificate holders and are typically supported by some form of credit
enhancement, such as a surety bond, limited guaranty, or subordination. The
extent of credit enhancement varies, but usually amounts to only a fraction of
the asset-backed security's par value until exhausted. Ultimately, asset-backed
securities are dependent upon payment of the consumer loans or receivables by
individuals, and the certificate holder frequently has no recourse to the entity
that originated the loans or receivables. The actual maturity and realized yield
will vary based upon the prepayment experience of the underlying asset pool and
prevailing interest rates at the time of prepayment. Asset-backed securities are
relatively new instruments and may be subject to greater risk of default during
periods of economic downturn than other instruments. Also, the secondary market
for certain asset-backed securities may not be as liquid as the market for other
types of securities, which could result in a Fund experiencing difficulty in
valuing or liquidating such securities. The Funds may also invest in securities
backed by pools of mortgages. The investments are described under the heading
"Mortgage-Related Securities."
Bank Obligations
----------------
The Funds may invest in bank obligations, including certificates of
deposit, time deposits, bankers' acceptances and other short-term obligations of
domestic banks, foreign subsidiaries of domestic banks, foreign branches of
domestic banks, and domestic and foreign branches of foreign banks, domestic
savings and loan associations and other banking institutions. With respect to
such securities issued by foreign branches of domestic banks, foreign
subsidiaries of domestic banks, and domestic and foreign branches of foreign
banks, a Fund may be subject to additional investment risks that are different
in some respects from those incurred by a Fund which invests only in debt
obligations of domestic issuers. Such risks include possible future political
and economic developments, the possible imposition of foreign withholding taxes
on interest income payable on the securities, the possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
which might adversely affect the payment of principal and interest on these
securities and the possible seizure or nationalization of foreign deposits. In
addition, foreign branches of U.S. banks and foreign banks may be subject to
less stringent reserve requirements and to different accounting, auditing,
reporting and recordkeeping standards than those applicable to domestic branches
of U.S. banks.
Certificates of deposit are negotiable certificates evidencing the
obligation of a bank to repay funds deposited with it for a specified period of
time.
5
<PAGE>
Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time at a stated interest rate. Time
deposits which may be held by a Fund will not benefit from insurance from the
Bank Insurance Fund or the Savings Association Insurance Fund administered by
the Federal Deposit Insurance Corporation ("FDIC"). Bankers' acceptances are
credit instruments evidencing the obligation of a bank to pay a draft drawn on
it by a customer. These instruments reflect the obligation both of the bank and
of the drawer to pay the face amount of the instrument upon maturity. The other
short-term obligations may include uninsured, direct obligations, bearing fixed,
floating- or variable-interest rates.
Bonds
-----
Certain of the debt instruments purchased by the Funds may be bonds. A bond
is an interest-bearing security issued by a company or governmental unit. The
issuer of a bond has a contractual obligation to pay interest at a stated rate
on specific dates and to repay principal (the bond's face value) periodically or
on a specified maturity date. An issuer may have the right to redeem or "call" a
bond before maturity, in which case the investor may have to reinvest the
proceeds at lower market rates. The value of fixed-rate bonds will tend to fall
when interest rates rise and rise when interest rates fall. The value of
"floating-rate" or "variable-rate" bonds, on the other hand, fluctuate much less
in response to market interest rate movements than the value of fixed rate
bonds.
Bonds may be senior or subordinated obligations. Senior obligations
generally have the first claim on a corporation's earnings and assets and, in
the event of liquidation, are paid before subordinated debt. Bonds may be
unsecured (backed only by the issuer's general creditworthiness) or secured
(also backed by specified collateral).
Borrowing
---------
The Funds may borrow money for temporary or emergency purposes, including
the meeting of redemption requests. Borrowing involves special risk
considerations. Interest costs on borrowings may fluctuate with changing market
rates of interest and may partially offset or exceed the return earned on
borrowed funds (or on the assets that were retained rather than sold to meet the
needs for which funds were borrowed). Under adverse market conditions, a Fund
might have to sell portfolio securities to meet interest or principal payments
at a time when investment considerations would not favor such sales. Reverse
repurchase agreements, short sales not against the box, dollar roll transactions
and other similar investments that involve a form of leverage have
characteristics similar to borrowings but are not considered borrowings if the
Fund maintains a segregated account.
Convertible Securities
----------------------
The Funds may invest in convertible securities. A convertible security is
generally a debt obligation or preferred stock that may be converted within a
specified period of time into a certain amount of common stock of the same or a
different user. A convertible security provides a fixed-income stream and the
opportunity, through its conversion feature, to participate in the capital
appreciation resulting from a market price advance in its underlying common
stock. As with a straight fixed-income security, a convertible security tends
to increase in market value
6
<PAGE>
when interest rates decline and decrease in value when interest rates rise. Like
a common stock, the value of a convertible security also tends to increase as
the market value of the underlying stock rises, and it tends to decrease as the
market value of the underlying stock declines. Because its value can be
influenced by both interest rate and market movements, a convertible security is
not as sensitive to interest rates as a similar fixed-income security, nor is it
as sensitive to changes in share price as its underlying stock.
The creditworthiness of the issuer of a convertible security may be
important in determining the security's true value. This is because the holder
of a convertible security will have recourse only to the issuer. In addition, a
convertible security may be subject to redemption by the issuer, but only after
a specified date and under circumstances established at the time the security is
issued.
While the Funds use the same criteria to rate a convertible debt security
that it uses to rate a more conventional debt security, a convertible preferred
stock is treated like a preferred stock for a Funds' financial reporting, credit
rating, and investment limitation purposes. A preferred stock is subordinated
to all debt obligations in the event of insolvency, and an issuer's failure to
make a dividend payment is generally not an event of default entitling the
preferred shareholder to take action. A preferred stock generally has no
maturity date, so that its market value is dependent on the issuer's business
prospects for an indefinite period of time. In addition, distributions from
preferred stock are dividends, rather than interest payments, and are usually
treated as such for corporate tax purposes.
Derivative Securities
---------------------
The Funds may invest in various instruments that may be considered
"derivatives," including structured notes, bonds or other instruments with
interest rates that are determined by reference to changes in the value of other
interest rates, indices or financial indicators ("References") or the relative
change in two or more References. Some derivative securities represent
relatively recent innovations in the bond markets, and the trading market for
these instruments is less developed than the markets for traditional types of
debt instruments. It is uncertain how these instruments will perform under
different economic and interest rate scenarios. Because certain of these
instruments are leveraged, their market values may be more volatile than other
types of bonds and may present greater potential for capital gain or loss.
Derivative securities and their underlying instruments may experience periods of
illiquidity, which could cause a Fund to hold a security it might otherwise sell
or could force the sale of a security at inopportune times or for prices that do
not reflect current market value. The possibility of default by the issuer or
the issuer's credit provider may be greater for these structured and derivative
instruments than for other types of instruments. As new types of derivative
securities are developed and offered to investors, the advisor will, consistent
with the Funds' investment objective, policies and quality standards, consider
making investments in such new types of derivative securities.
Dollar Roll Transactions
------------------------
The Funds may enter into "dollar roll" transactions wherein the Fund sells
fixed income securities, typically mortgage-backed securities, and makes a
commitment to purchase similar, but
7
<PAGE>
not identical, securities at a later date from the same party. Like a forward
commitment, during the roll period no payment is made for the securities
purchased and no interest or principal payments on the security accrue to the
purchaser, but the Fund assumes the risk of ownership. A Fund is compensated for
entering into dollar roll transactions by the difference between the current
sales price and the forward price for the future purchase, as well as by the
interest earned on the cash proceeds of the initial sale. Like other when-issued
securities or firm commitment agreements, dollar roll transactions involve the
risk that the market value of the securities sold by a Fund may decline below
the price at which the Fund is committed to purchase similar securities. In the
event the buyer of securities from a Fund under a dollar roll transaction
becomes insolvent, the Fund's use of the proceeds of the transaction may be
restricted pending a determination by the other party, or its trustee or
receiver, whether to enforce the Fund's obligation to repurchase the securities.
The Funds will engage in roll transactions for the purpose of acquiring
securities for its portfolio and not for investment leverage.
Fixed-Income Securities
-----------------------
Investors should be aware that even though interest-bearing securities are
investments which promise a stable stream of income, the prices of such
securities are inversely affected by changes in interest rates and, therefore,
are subject to the risk of market price fluctuations. Long-term securities are
affected to a greater extent by interest rates than shorter-term securities.
The values of fixed-income securities also may be affected by changes in the
credit rating or financial condition of the issuing entities. Once the rating
of a portfolio security has been changed to a rating below investment grade, the
particular Fund considers all circumstances deemed relevant in determining
whether to continue to hold the security. Certain securities that may be
purchased by the Fund, such as those rated "Baa" by Moody's Investors Service,
Inc. ("Moody's") and "BBB" by Standard & Poor's Ratings Group ("S&P"), Fitch
Investors Service, Inc. ("Fitch") and Duff & Phelps Credit Rating Co. ("Duff"),
may be subject to such risk with respect to the issuing entity and to greater
market fluctuations than certain lower yielding, higher rated fixed-income
securities. Securities which are rated "Baa" by Moody's are considered medium-
grade obligations; they are neither highly protected nor poorly secured, and are
considered by Moody's to have speculative characteristics. Securities rated
"BBB" by S&P are regarded as having adequate capacity to pay interest and repay
principal, and, while such debt securities ordinarily exhibit adequate
protection parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay principal
for securities in this category than in higher rated categories. Securities
rated "BBB" by Fitch are considered investment grade and of satisfactory credit
quality; however, adverse changes in economic conditions and circumstances are
more likely to have an adverse impact on these securities and, therefore, impair
timely payment. Securities rated "BBB" by Duff have below average protection
factors but nonetheless are considered sufficient for prudent investment. If a
security held by a Fund is downgraded to a rating below investment grade, such
Fund may continue to hold the security until such time as the Advisor determines
it to be advantageous for the Fund to sell the security.
Floating- and Variable-Rate Obligations
-----------------------------------------
The Funds may purchase floating- and variable-rate obligations such as
demand notes and bonds. Variable-rate demand notes include master demand notes
that are obligations that permit
8
<PAGE>
a Fund to invest fluctuating amounts, which may change daily without penalty,
pursuant to direct arrangements between the Fund, as lender, and the borrower.
The interest rate on a floating-rate demand obligation is based on a known
lending rate, such as a bank's prime rate, and is adjusted automatically each
time such rate is adjusted. The interest rate on a variable-rate demand
obligation is adjusted automatically at specified intervals. The issuer of such
obligations ordinarily has a right, after a given period, to prepay in its
discretion the outstanding principal amount of the obligations plus accrued
interest upon a specified number of days' notice to the holders of such
obligations. Frequently, such obligations are secured by letters of credit or
other credit support arrangements provided by banks.
There generally is no established secondary market for these obligations
because they are direct lending arrangements between the lender and borrower.
Accordingly, where these obligations are not secured by letters of credit or
other credit support arrangements, a Fund's right to redeem is dependent on the
ability of the borrower to pay principal and interest on demand. Such
obligations frequently are not rated by credit rating agencies and each Fund may
invest in obligations which are not so rated only if the Advisor determines that
at the time of investment the obligations are of comparable quality to the other
obligations in which such Fund may invest. The Advisor, on behalf of each Fund,
considers on an ongoing basis the creditworthiness of the issuers of the
floating- and variable-rate demand obligations in such Fund's portfolio.
Floating- and variable-rate instruments are subject to interest-rate risk and
credit risk.
The floating- and variable-rate instruments that the Funds may purchase
include certificates of participation in such instruments.
Foreign Securities
------------------
The Funds may invest in foreign company stocks which may lose value or be
more difficult to trade as a result of adverse changes in currency exchange
rates or other developments in the issuer's home country. Concentrated
investment in any single country, especially a less developed country, would
make the Fund's value more sensitive to economic, currency and regulatory
changes within that country. The Funds may also invest in securities of
companies located or operating in countries considered developing or to have
"emerging" stock markets. Emerging market countries are often dependent on
international trade and are therefore often vulnerable to events in other
countries. They may have less developed financial systems and volatile
currencies and may be more sensitive than more mature markets to a variety of
economic factors. Emerging market securities may also be less liquid than
securities of more developed countries, which may make them more difficult to
sell, particularly during a market downturn.
Each Fund may invest in high-quality, short-term debt obligations of
foreign branches of U.S. banks, U.S. branches of foreign banks and short-term
debt obligations of foreign governmental agencies that are denominated in and
pay interest in U.S. dollars. Investments in foreign obligations involve certain
considerations that are not typically associated with investing in domestic
obligations. There may be less publicly available information about a foreign
issuer than about a domestic issuer and the available information may be less
reliable. In addition, with respect to certain foreign countries, taxes may be
withheld at the source under foreign tax laws, and there is a possibility of
expropriation or confiscatory taxation, political or social instability or
9
<PAGE>
diplomatic developments that could adversely affect investments in, the
liquidity of, and the ability to enforce contractual obligations with respect
to, securities of issuers located in those countries. The Funds may invest in
securities denominated in currencies other than the U.S. dollar and may
temporarily hold funds in bank deposits or other money market investments
denominated in foreign currencies. Therefore, the Funds may be affected
favorably or unfavorably by exchange control regulations or changes in the
exchange rate between such currencies and the dollar. Changes in foreign
currency exchange rates influence values within a Fund from the perspective of
U.S. investors. The rate of exchange between the U.S. dollar and other
currencies is determined by the forces of supply and demand in the foreign
exchange markets. These forces are affected by the international balance of
payments and other economic and financial conditions, government intervention,
speculation and other factors.
The Funds may enter into forward currency exchange contracts ("forward
contracts") to attempt to minimize the risk to the Funds from adverse changes in
the relationship between currencies or to enhance income. A forward contract is
an obligation to buy or sell a specific currency for an agreed price at a future
date which is individually negotiated and is privately traded by currency
traders and their customers. The Funds will either cover a position in such a
transaction or maintain, in a segregated account with their custodian bank, cash
or high-grade marketable money market securities having an aggregate value equal
to the amount of any such commitment until payment is made.
Forward Commitment, When-Issued and Delayed-Delivery Transactions
-----------------------------------------------------------------
The Funds may purchase or sell securities on a when-issued or delayed
delivery basis and make contracts to purchase or sell securities for a fixed
price at a future date beyond customary settlement time. Delivery and payment
on such transaction normally take place within 120 days after the date of the
commitment to purchase. Securities purchased or sold on a when-issued, delayed-
delivery or forward commitment basis involve a risk of loss if the value of the
security to be purchased declines, or the value of the security to be sold
increases, before the settlement date. The Funds will establish a segregated
account in which they will maintain cash, U.S. Government obligations or other
high-quality debt instruments in an amount at least equal in value to each such
Fund's commitments to purchase when-issued securities. If the value of these
assets declines, a Fund will place additional liquid assets in the account on a
daily basis so that the value of the assets in the account is equal to the
amount of such commitments.
Futures Contracts and Options Transactions
------------------------------------------
In General. The Funds may enter into and engage in futures contracts and
options transactions as discussed below. A futures transaction involves a firm
agreement to buy or sell a commodity or financial instrument at a particular
price on a specified future date, while an option transaction generally involves
a right, which may or may not be exercised, to buy or sell a commodity or
financial instrument at a particular price on a specified future date. Futures
contracts and options are standardized and exchange-traded, where the exchange
serves as the ultimate counterparty for all contracts. Consequently, the
primary credit risk on futures contracts is the creditworthiness of the
exchange. Futures contracts, however, are subject to market risk (i.e.,
exposure to adverse price changes).
10
<PAGE>
Although the Funds intend to purchase or sell futures contracts only if
there is an active market for such contracts, no assurance can be given that a
liquid market will exist for any particular contract at any particular time.
Many futures exchanges and boards of trade limit the amount of fluctuation
permitted in futures contract prices during a single trading day. Once the
daily limit has been reached in a particular contract, no trades may be made
that day at a price beyond that limit or trading may be suspended for specified
periods during the trading day. Futures contract prices could move to the limit
for several consecutive trading days with little or no trading, thereby
preventing prompt liquidation of futures positions and potentially subjecting a
Fund to substantial losses. If it is not possible, or a Fund determines not to
close a futures position in anticipation of adverse price movements, the Fund
will be required to make daily cash payments of variation margin.
An option on a futures contract gives the purchaser the right, in return
for the premium paid, to assume a position in a futures contract (a long
position if the option is a call and a short position if the option is a put) at
a specified exercise price at any time during the option exercise period. The
writer (i.e., seller) of the option is required upon exercise to assume an
offsetting futures position (a short position if the option is a call and a long
position if the option is a put). Upon exercise of the option, the assumption
of offsetting futures positions by both the writer and the holder of the option
will be accompanied by delivery of the accumulated cash balance in the writer's
futures margin account in the amount by which the market price of the futures
contract, at exercise, exceeds (in the case of a call) or is less than (in the
case of a put) the exercise price of the option on the futures contract. The
potential loss related to the purchase of options on futures contracts is
limited to the premium paid for the option (plus transaction costs). Because
the value of the option is fixed at the time of sale, there are no daily cash
payments to reflect changes in the value of the underlying contract; however,
the value of the option may change daily, and that change would be reflected in
the net asset value of the relevant Fund.
The Funds may trade futures contracts and options on futures contracts in
U.S. domestic markets, such as the Chicago Board of Trade and the International
Monetary Market of the Chicago Mercantile Exchange. The Funds' futures
transactions must constitute permissible transactions pursuant to regulations
promulgated by the Commodity Futures Trading Commission ("CFTC"). Pursuant to
regulations and/or published positions of the SEC, a Fund may be required to
segregate cash or high-quality money-market instruments in connection with its
futures transactions in an amount generally equal to the entire value of the
underlying security.
Initially, when purchasing or selling futures contracts a Fund will be
required to deposit with its custodian in the broker's name an amount of cash or
cash equivalents up to approximately 10% of the contract amount. This amount is
subject to change by the exchange or board of trade on which the contract is
traded, and members of such exchange or board of trade may impose their own
higher requirements. This amount is known as "initial margin" and is in the
nature of a performance bond or good faith deposit on the contract that is
returned to the Fund upon termination of the futures position, assuming all
contractual obligations have been satisfied. Subsequent payments, known as
"variation margin", to and from the broker will be made daily as the price of
the index or securities underlying the futures contract fluctuates, making the
long and short positions in the futures contract more or less valuable. At any
time prior to the expiration of a futures contract, a Fund may elect to close
the position by taking an opposite position, at the then prevailing price,
thereby terminating its existing position in the contract.
11
<PAGE>
The Funds may engage in futures contracts sales to maintain the income
advantage from continued holding of a long-term security while endeavoring to
avoid part or all of the loss in market value that would otherwise accompany a
decline in long-term security prices. If, however, securities prices rise, a
Fund would realize a loss in closing out its futures contract sales that would
offset any increases in prices of the long-term securities they hold.
Another risk in employing futures contracts and options thereon to protect
against cash market price volatility is the possibility that futures prices will
correlate imperfectly with the behavior of the prices of the securities in such
portfolio (the portfolio securities will not be identical to the debt
instruments underlying the futures contracts).
Stock Index Options. The Funds may purchase and write (i.e., sell) put and
call options on stock indices only as a substitute for comparable market
positions in the underlying securities. A stock index fluctuates with changes
of the market values of the stocks included in the index. The effectiveness of
purchasing or writing stock index options will depend upon the extent to which
price movements of the securities in a Fund's portfolio correlate with price
movements of the stock index selected. Because the value of an index option
depends upon movements in the level of the index rather than the price of a
particular stock, whether a Fund will realize a gain or loss from purchasing or
writing stock index options depends upon movements in the level of stock prices
in the stock market generally or, in the case of certain indices, in an industry
or market segment, rather than movements in the price of particular stock. When
a Fund writes an option on a stock index, such Fund will place in a segregated
account with the Fund's custodian cash or liquid securities in an amount at
least equal to the market value of the underlying stock index and will maintain
the account while the option is open or otherwise will cover the transaction.
Stock Index Futures and Options on Stock Index Futures. The Funds may
invest in stock index futures and options on stock index futures only as a
substitute for a comparable market position in the underlying securities. A
stock index future obligates the seller to deliver (and the purchaser to take),
effectively, an amount of cash equal to a specific dollar amount times the
difference between the value of a specific stock index at the close of the last
trading day of the contract and the price at which the agreement is made. No
physical delivery of the underlying stocks in the index is made. With respect
to stock indices that are permitted investments, each Fund intends to purchase
and sell futures contracts on the stock index for which it can obtain the best
price with consideration also given to liquidity.
Interest-Rate Futures Contracts and Options on Interest-Rate Futures
Contracts. The Funds may invest in interest-rate futures contracts and options
on interest-rate futures contracts as a substitute for a comparable market
position in the underlying securities. The Funds may also sell options on
interest-rate futures contracts as part of closing purchase transactions to
terminate its options positions. No assurance can be given that such closing
transactions can be effected or as to the degree of correlation between price
movements in the options on interest-rate futures and price movements in the
Funds' portfolio securities which are the subject of the transaction.
The Funds may take advantage of opportunities in the areas of options and
futures contracts and options on futures contracts and any other derivative
investments which are not presently contemplated for use by the Fund or which
are not currently available but which may be developed, to the extent such
opportunities are both consistent with each Fund's investment
12
<PAGE>
objective and legally permissible for the Fund. Before entering into such
transactions or making any such investment, the Fund would provide appropriate
disclosure in its Prospectus or this SAI.
Interest-Rate and Index Swaps. The Funds may enter into interest-rate and
index swaps in pursuit of its investment objectives. Interest-rate swaps
involve the exchange by a Fund with another party of their commitments to pay or
receive interest (for example, an exchange of floating-rate payments for fixed-
rate payments). Index swaps involve the exchange by the Fund with another party
of cash flows based upon the performance of an index of securities or a portion
of an index of securities that usually include dividends or income. In each
case, the exchange commitments can involve payments to be made in the same
currency or in different currencies. A Fund will usually enter into swaps on a
net basis. In so doing, the two payment streams are netted out, with the Fund
receiving or paying, as the case may be, only the net amount of the two
payments. If the Fund enters into a swap, it will maintain a segregated account
on a gross basis, unless the contract provides for a segregated account on a net
basis. If there is a default by the other party to such a transaction, the Fund
will have contractual remedies pursuant to the agreements related to the
transaction.
The use of interest-rate and index swaps is a highly specialized activity
which involves investment techniques and risks different from those associated
with ordinary portfolio security transactions. There is no limit, except as
provided below, on the amount of swap transactions that may be entered into by
the Funds. These transactions generally do not involve the delivery of
securities or other underlying assets or principal. Accordingly, the risk of
loss with respect to swaps generally is limited to the net amount of payments
that the Fund is contractually obligated to make. There is also a risk of a
default by the other party to a swap, in which case a Fund may not receive net
amount of payments that such Fund contractually is entitled to receive.
Illiquid Securities
-------------------
The Funds may invest in securities not registered under the Securities Act
of 1933, as amended (the "1933 Act") and other securities subject to legal or
other restrictions on resale. Because such securities may be less liquid than
other investments, they may be difficult to sell promptly at an acceptable
price. Delay or difficulty in selling securities may result in a loss or be
costly to a Fund.
Loans of Portfolio Securities
-----------------------------
Each Fund may lend its portfolio securities pursuant to guidelines approved
by the Board of Trustees of the Trust to brokers, dealers and financial
institutions, provided: (1) the loan is secured continuously by collateral
consisting of cash, securities of the U.S. Government, its agencies or
instrumentalities, or an irrevocable letter of credit issued by a bank organized
under the laws of the United States, organized under the laws of a State, or a
foreign bank that has filed an agreement with the Federal Reserve Board to
comply with the same rules and regulations applicable to U.S. banks in
securities credit transactions, and such collateral being maintained on a daily
marked-to-market basis in an amount at least equal to the current market value
of the securities loaned plus any accrued interest or dividends; (2) the Fund
may at any time call the loan and obtain the return of the securities loaned
upon sufficient prior notification; (3) the Fund will
13
<PAGE>
receive any interest or dividends paid on the loaned securities; and (4) the
aggregate market value of securities loaned will not at any time exceed the
limits established by the 1940 Act.
A Fund will earn income for lending its securities because cash collateral
pursuant to these loans will be invested subject to the investment objectives,
principal investment strategies and policies of the Fund. In connection with
lending securities, a Fund may pay reasonable finders, administrative and
custodial fees. Loans of securities involve a risk that the borrower may fail to
return the securities or may fail to provide additional collateral. In either
case, a Fund could experience delays in recovering securities or collateral or
could lose all or part of the value of the loaned securities. Although voting
rights, or rights to consent, attendant to securities on loan pass to the
borrower, such loans may be called at any time and will be called so that the
securities may be voted by a Fund if a material event affecting the investment
is to occur. A Fund may pay a portion of the interest or fees earned from
securities lending to a borrower or securities lending agent. Borrowers and
placing brokers may not be affiliated, directly or indirectly, with the Trust,
the Advisor, or the Distributor.
Money Market Instruments
------------------------
The Funds may invest in the following types of high quality money market
instruments that have remaining maturities not exceeding one year: (i) U.S.
Government obligations; (ii) negotiable certificates of deposit, bankers'
acceptances and fixed time deposits and other obligations of domestic banks
(including foreign branches) that have more than $1 billion in total assets at
the time of investment and are members of the Federal Reserve System or are
examined by the Comptroller of the Currency or whose deposits are insured by the
FDIC; (iii) commercial paper rated at the date of purchase "Prime-1" by Moody's
or "A-1" or "A-1--" by S&P, or, if unrated, of comparable quality as determined
by BGFA, as investment advisor; and (iv) repurchase agreements. The Funds also
may invest in short-term U.S. dollar-denominated obligations of foreign banks
(including U.S. branches) that at the time of investment: (i) have more than $10
billion, or the equivalent in other currencies, in total assets; (ii) are among
the 75 largest foreign banks in the world as determined on the basis of assets;
(iii) have branches or agencies in the United States; and (iv) in the opinion of
the Advisor, are of comparable quality to obligations of U.S. banks which may be
purchased by the Funds.
Mortgage-Related Securities
---------------------------
The Funds may invest in mortgage-related securities. Mortgage pass-through
securities are securities representing interests in "pools" of mortgages in
which payments of both interest and principal on the securities are made
monthly, in effect "passing through" monthly payments made by the individual
borrowers on the residential mortgage loans which underlie the securities (net
of fees paid to the issuer or guarantor of the securities). Payment of
principal and interest on some mortgage pass-through securities (but not the
market value of the securities themselves) may be guaranteed by the full faith
and credit of the U.S. Government or its agencies or instrumentalities.
Mortgage pass-through securities created by non- government issuers (such as
commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers) may be supported
by various forms of insurance or guarantees, including individual loan, title,
pool and hazard insurance, and letters of credit, which may be issued by
governmental entities, private insurers or the mortgage poolers.
14
<PAGE>
Prepayment Risk. The stated maturities of mortgage-related securities may
be shortened by unscheduled prepayments of principal on the underlying
mortgages. Therefore, it is not possible to predict accurately the average
maturity of a particular mortgage-related security . Variations in the
maturities of mortgage-related securities will affect the yield of the Fund.
Early repayment of principal on mortgage-related securities may expose a Fund to
a lower rate of return upon reinvestment of principal. Also, if a security
subject to prepayment has been purchased at a premium, in the event of
prepayment the value of the premium would be lost. Like other fixed-income
securities, when interest rates rise, the value of a mortgage-related security
generally will decline; however, when interest rates decline, the value of
mortgage-related securities with prepayment features may not increase as much as
other fixed-income securities.
Collateralized Mortgage Obligations ("CMOs") and Adjustable Rate Mortgages
("ARMs"). The Funds may also invest in investment grade CMOs. CMOs may be
collateralized by whole mortgage loans but are more typically collateralized by
portfolios of mortgage pass-through securities guaranteed by the Government
National Mortgage Association ("GNMA"), the Federal Home Loan Mortgage
Corporation ("FHLMC") or Federal National Mortgage Association ("FNMA"). CMOs
are structured into multiple classes, with each class bearing a different stated
maturity. Payments of principal, including prepayments, are first returned to
investors holding the shortest maturity class; investors holding the longer
maturity classes receive principal only after the first class has been retired.
As new types of mortgage-related securities are developed and offered to
investors, the Advisor will, consistent with the Fund's investment objective,
policies and quality standards, consider making investments in such new types of
mortgage-related securities.
The Funds each may invest in ARMs issued or guaranteed by the GNMA, FNMA or
the FHLMC. The full and timely payment of principal and interest on GNMA ARMs
is guaranteed by GNMA and backed by the full faith and credit of the U.S.
Government. FNMA also guarantees full and timely payment of both interest and
principal, while FHLMC guarantees full and timely payment of interest and
ultimate payment of principal. FNMA and FHLMC ARMs are not backed by the full
faith and credit of the United States. However, because FNMA and FHLMC are
government-sponsored enterprises, these securities are generally considered to
be high quality investments that present minimal credit risks. The yields
provided by these ARMs have historically exceeded the yields on other types of
U.S. Government securities with comparable maturities, although there can be no
assurance that this historical performance will continue.
The mortgages underlying ARMs guaranteed by GNMA are typically insured or
guaranteed by the Federal Housing Administration, the Veterans Administration or
the Farmers Home Administration, while those underlying ARMs issued by FNMA or
FHLMC are typically conventional residential mortgages which are not so insured
or guaranteed, but which conform to specific underwriting, size and maturity
standards.
The interest rates on the mortgages underlying the ARMs and some of the
CMOs in which the Funds may invest generally are readjusted at periodic
intervals ranging from one year or less to several years in response to changes
in a predetermined commonly-recognized interest rate index. The adjustable rate
feature should reduce, but will not eliminate, price fluctuations in such
securities, particularly when market interest rates fluctuate. The net asset
value of a Funds' shares may fluctuate to the extent interest rates on
underlying mortgages differ from prevailing market
15
<PAGE>
interest rates during interim periods between interest rate reset dates.
Accordingly, investors could experience some loss if they redeem their shares of
a Fund or if the Funds sells these portfolio securities before the interest
rates on the underlying mortgages are adjusted to reflect prevailing market
interest rates. The holder of ARMs and CMOs are also subject to repayment risk.
The Funds will not invest in CMOs that, at the time of purchase, are "high-
risk mortgage securities" as defined in the then current Federal Financial
Institutions Examination Council Supervisory Policy Statement on Securities
Activities. High-risk mortgage securities are generally those with long
durations or those which are likely to be more sensitive to interest-rate
fluctuations.
Other Investment Companies
--------------------------
The Funds may invest in shares of other open-end management investment
companies, up to the limits prescribed in Section 12(d) of the 1940 Act.
Currently, under the 1940 Act, a Fund that invests directly in a portfolio of
securities is limited to, subject to certain exceptions, (i) 3% of the total
voting stock of any one investment company, (ii) 5% of such Fund's total assets
with respect to any one investment company and (iii) 10% of such Fund's total
assets in aggregate. Gateway Funds, whose policies are to invest some or all of
their assets in the securities of one or more open-end investment companies, are
excepted from these general limitations. Other investment companies in which
the Funds invest can be expected to charge fees for operating expenses, such as
investment advisory and administration fees, that would be in addition to those
charged by the Funds.
Pass-Through Obligations
------------------------
The Funds may invest in pass-through obligations that are supported by the
full faith and credit of the U.S. Government (such as those issued by the GNMA)
or those that are guaranteed by an agency or instrumentality of the U.S.
Government or government-sponsored enterprise (such as FNMA or FHLMC) or bonds
collateralized by any of the foregoing.
Privately Issued Securities
---------------------------
The Funds may invest in privately issued securities, including those which
may be resold only in accordance with Rule 144A under the Securities Act of 1933
("Rule 144A Securities"). Rule 144A Securities are restricted securities that
are not publicly traded. Accordingly, the liquidity of the market for specific
Rule 144A Securities may vary. Delay or difficulty in selling such securities
may result in a loss to a Fund. Privately issued or Rule 144A securities that
are determined by the investment advisor to be "illiquid" are subject to the
Funds' policy of not investing more than 15% of its net assets in illiquid
securities. The Advisor, under guidelines approved by Board of Trustees of the
Company, will evaluate the liquidity characteristics of each Rule 144A Security
proposed for purchase by a Fund on a case-by-case basis and will consider the
following factors, among others, in their evaluation: (1) the frequency of
trades and quotes for the Rule 144A Security; (2) the number of dealers willing
to purchase or sell the Rule 144A Security and the number of other potential
purchasers; (3) dealer undertakings to make a market in the Rule 144A Security;
and (4) the nature of the Rule 144A Security and the nature of the marketplace
trades (e.g., the time needed to dispose of the Rule 144A Security, the method
of soliciting offers and the mechanics of transfer).
16
<PAGE>
Repurchase Agreements. Each Fund may enter into repurchase agreements,
---------------------
wherein the seller of a security to a Fund agrees to repurchase that security
from a Fund at a mutually agreed upon time and price. A Fund may enter into
repurchase agreements only with respect to securities that could otherwise be
purchased by such Fund. All repurchase agreements will be fully collateralized
at 102% based on values that are marked to market daily. The maturities of the
underlying securities in a repurchase agreement transaction may be greater than
twelve months, although the maximum term of a repurchase agreement will always
be less than twelve months. If the seller defaults and the value of the
underlying securities has declined, a Fund may incur a loss. In addition, if
bankruptcy proceedings are commenced with respect to the seller of the security,
the Funds' disposition of the security may be delayed or limited.
A Fund may not enter into a repurchase agreement with a maturity of more
than seven days, if, as a result, more than 15% of the market value of such
Fund's net assets would be invested in repurchase agreements with maturities of
more than seven days and illiquid securities. A Fund will only enter into
repurchase agreements with primary broker/dealers and commercial banks that meet
guidelines established by the Board of Trustees and that are not affiliated with
the investment advisor. The Funds may participate in pooled repurchase
agreement transactions with other funds advised by the Advisor.
Reverse Repurchase Agreements
-----------------------------
The Funds may enter into reverse repurchase agreements (an agreement under
which a Fund sells its portfolio securities and agrees to repurchase them at an
agreed-upon date and price). At the time a Fund enters into a reverse
repurchase agreement it will place in a segregated custodial account liquid
assets such as U.S. Government securities or other liquid high-grade debt
securities having a value equal to or greater than the repurchase price
(including accrued interest) and will subsequently monitor the account to ensure
that such value is maintained. Reverse repurchase agreements involve the risk
that the market value of the securities sold by the Funds may decline below the
price at which the Funds are obligated to repurchase the securities. Reverse
repurchase agreements may be viewed as a form of borrowing.
Short-Term Corporate Debt Instruments
-------------------------------------
The Funds may invest in commercial paper (including variable amount master
demand notes), which refers to short-term, unsecured promissory notes issued by
corporations to finance short-term credit needs. Commercial paper is usually
sold on a discount basis and has a maturity at the time of issuance not
exceeding nine months. Variable amount master demand notes are demand
obligations that permit the investment of fluctuating amounts at varying market
rates of interest pursuant to arrangements between the issuer and a commercial
bank acting as agent for the payee of such notes whereby both parties have the
right to vary the amount of the outstanding indebtedness on the notes.
The Funds also may invest in nonconvertible corporate debt securities
(e.g., bonds and debentures) with no more than one year remaining to maturity at
the date of settlement. The Funds will invest only in such corporate bonds and
debentures that are rated at the time of purchase at least "Aa" by Moody's or
"AA" by S&P.
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<PAGE>
Stripped Obligations
----------------------
The Funds may purchase Treasury receipts, securities of government-
sponsored enterprises (GSEs), and other "stripped" securities that evidence
ownership in either the future interest payments or the future principal
payments on U.S. Government and other obligations. The stripped securities the
Funds may purchase are issued by the U.S. Government (or a U.S. Government
agency or instrumentality) or by private issuers such as banks, corporations and
other institutions at a discount to their face value. The Funds will not
purchase stripped mortgage-backed securities ("SMBS"). The stripped securities
purchased by the Funds generally are structured to make a lump-sum payment at
maturity and do not make periodic payments of principal or interest. Hence, the
duration of these securities tends to be longer and they are therefore more
sensitive to interest rate fluctuations than similar securities that offer
periodic payments over time. The stripped securities purchased by the Funds are
not subject to prepayment or extension risk.
The Funds may purchase participations in trusts that hold U.S. Treasury
securities (such as TIGRs and CATS) or other obligations where the trust
participations evidence ownership in either the future interest payments or the
future principal payments on the obligations. These participations are normally
issued at a discount to their "face value," and can exhibit greater price
volatility than ordinary debt securities because of the way in which their
principal and interest are returned to investors. Investments by the Funds in
such participations will not exceed 5% of the value of the Funds' total assets.
Unrated Investments
-------------------
The Funds may purchase instruments that are not rated if, in the opinion of
the Advisor, such obligations are of investment quality comparable to other
rated investments that are permitted to be purchased by such Fund. After
purchase by a Fund, a security may cease to be rated or its rating may be
reduced below the minimum required for purchase by such Fund. Neither event
will require a sale of such security by such Fund. To the extent the ratings
given by Moody's or S&P may change as a result of changes in such organizations
or their rating systems, each Fund will attempt to use comparable ratings as
standards for investments in accordance with the investment policies contained
in its Prospectus and in this SAI. The ratings of Moody's and S&P are more
fully described in the Appendix.
U.S. Government Obligations
---------------------------
The Funds may invest in obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities ("U.S. Government Obligations").
Payment of principal and interest on U.S. Government Obligations (i) may be
backed by the full faith and credit of the United States (as with U.S. Treasury
bills and GNMA certificates) or (ii) may be backed solely by the issuing or
guaranteeing agency or instrumentality itself (as with FNMA notes). In the
latter case investors must look principally to the agency or instrumentality
issuing or guaranteeing the obligation for ultimate repayment, which agency or
instrumentality may be privately owned. There can be no assurance that the U.S.
Government will provide financial support to its agencies or instrumentalities
where it is not obligated to do so. In addition, U.S. Government Obligations are
subject to fluctuations in market value due to fluctuations in market interest
rates. As a general
18
<PAGE>
matter, the value of debt instruments, including U.S. Government Obligations,
declines when market interest rates increase and rises when market interest
rates decrease. Certain types of U.S. Government Obligations are subject to
fluctuations in yield or value due to their structure or contract terms.
Warrants
--------
The Funds each may invest in warrants (other than those that have been
acquired in units or attached to other securities). Warrants represent rights
to purchase securities at a specific price valid for a specific period of time.
The price of warrants do not necessarily correlate with the prices of the
underlying securities.
Zero Coupon Bonds
-------------------
The Funds may invest in zero coupon bonds. Zero coupon bonds are securities
that make no periodic interest payments, but are instead sold at discounts from
face value. The buyer of such a bond receives the rate of return by the gradual
appreciation of the security, which is redeemed at face value on a specified
maturity date. Because zero coupon bonds bear no interest, they are more
sensitive to interest-rate changes and are therefore more volatile. When
interest rates rise, the discount to face value of the security deepens and the
securities decrease more rapidly in value, when interest rates fall, zero coupon
securities rise more rapidly in value because the bonds carry fixed interest
rates that become more attractive in a falling interest rate environment.
Nationally Recognized Ratings Organizations
-------------------------------------------
The ratings of Moody's, S&P, Division of McGraw Hill, Duff & Phelps Credit
Rating Co., Fitch Investors Service, Inc. Thomson Bank Watch and IBCA Inc.
represent their opinions as to the quality of debt securities. It should be
emphasized, however, that ratings are general and not absolute standards of
quality, and debt securities with the same maturity, interest rate and rating
may have different yields while debt securities of the same maturity and
interest rate with different ratings may have the same yield. Subsequent to
purchase by the Funds, an issue of debt securities may cease to be rated or its
rating may be reduced below the minimum rating required for purchase by the
Funds. The Advisor will consider such an event in determining whether the Fund
involved should continue to hold the obligation.
MANAGEMENT
The following information supplements, and should be read in conjunction
with, the section in the Prospectus entitled "Organization and Management of the
Funds." The principal occupations during the past five years of the Trustees
and principal executive Officers of the Trust are listed below. The address of
each, unless otherwise indicated, is 525 Market Street, 12th Floor, San
Francisco, CA 94105. Trustees deemed to be "interested persons" of the Trust
for purposes of the 1940 Act are indicated by an asterisk.
19
<PAGE>
<TABLE>
<CAPTION>
Principal Occupations
Name, Age and Address Position During Past 5 Years
--------------------- -------- -------------------
<S> <C> <C>
*Robert C. Brown, 65 Trustee Director, Federal Farm Credit Banks Funding
5038 Kestral Parkway South Corporation and Farm Credit System Financial
Sarasota, FL 34231 Assistance Corporation since February 1993.
Donald H. Burkhardt, 70 Trustee Principal of the Burkhardt Law Firm.
777 South Steele Street
Denver, CO 80209
Jack S. Euphrat, 77 Trustee Private Investor.
415 Walsh Road
Atherton, CA 94027
Thomas S. Goho, 56 Trustee Business Associate Professor, Wake Forest
321 Beechcliff Court University, Calloway School of Business and
Winston-Salem, NC 27104 Accountancy since 1994.
Peter G. Gordon, 56 Trustee Chairman and Co-Founder of Crystal Geyser
Crystal Geyser Water Co. Water Company and President of Crystal Geyser
55 Francisco Street, Suite 410 Roxane Water Company since 1977.
San Francisco, CA 94133
*W. Rodney Hughes, 72 Trustee Private Investor.
31 Dellwood Court
San Rafael, CA 94901
*Richard M. Leach, 63 Trustee President of Richard M. Leach Associates (a
P.O. Box 1888 financial consulting firm) since 1992.
New London, NH 03257
*J. Tucker Morse, 54 Trustee Private Investor/Real Estate Developer;
10 Legare Street Chairman of Vault Holdings, LLC.
Charleston, SC 29401
Timothy J. Penny, 45 Trustee Senior Counselor to the public relations firm
500 North State Street of Himle-Horner since January 1995 and Senior
Waseca, MN 56093 Fellow at the Humphrey Institute, Minneapolis,
Minnesota (a public policy organization) since
January 1995.
Donald C. Willeke, 59 Trustee Principal on the law firm of Willeke &
201 Ridgewood Avenue Daniels.
Minneapolis, MN 55403
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
Principal Occupations
Name, Age and Address Position During Past 5 Years
--------------------- -------- -------------------
<S> <C> <C>
Michael J. Hogan, 41 President Executive Vice President of Wells Fargo Bank,
N.A. since July 1999. Senior Vice President
of Wells Fargo Bank, N.A. from April 1997 to
May 1999. Vice President of American Express
Financial Advisors from May 1996 to April
1997, and Director of American Express
Financial Advisors from March 1993 to May 1996.
Karla M. Rabusch, 41 Treasurer Senior Vice President of Wells Fargo Bank,
N.A., since May 2000. Vice President of Wells
Fargo Bank, N.A. from December 1997 to May
2000. Prior thereto, Director of Managed
Assets Investment Accounting of American
Express Financial Advisors from May 1994 to
November 1997.
C. David Messman, 40 Secretary Vice President and Senior Counsel of Wells
Fargo Bank, N.A. since January 1996. Prior
thereto, Branch Chief, Division of Investment
Management, U.S. Securities and Exchange
Commission.
</TABLE>
Each of the Trustees and Officers listed above act in the identical
capacities for Wells Fargo Variable Trust and Wells Fargo Core Trust
(collectively the "Fund Complex"). All of the non-interested Trustees are also
members of the Audit and Nominating Committees of the Trust, and of each other
trust in the Fund Complex.
Each Trustee receives an annual retainer (payable quarterly) of $40,000
from the Fund Complex, and also receives a combined fee of $1,000 for attendance
at Fund Complex Board meetings, and a combined fee of $250 for attendance at
committee meetings. If a committee meeting is held absent a full Board meeting,
each attending Trustee will receive a $1,000 combined fee. These fees apply
equally for in-person or telephonic meetings, and Trustees are reimbursed for
all out-of-pocket expenses related to attending meetings. The Trustees do not
receive any retirement benefits or deferred compensation from the Trust or an
other member of the Fund Complex. The Trust's officers are not compensated by
the Trust for their services. For the year ended February 29, 2000, the Trustees
received the following compensation:
21
<PAGE>
Compensation Table
Year Ended February 29, 2000
----------------------------
<TABLE>
<CAPTION>
Trustee Compensation
------- ------------
<S> <C>
Robert C. Brown $12,102
Donald H. Burkhardt $11,134
Jack S. Euphrat $16,004
Thomas S. Goho $16,004
Peter G. Gordon $16,004
W. Rodney Hughes $15,754
Richard M. Leach $12,102
J. Tucker Morse $15,754
Timothy J. Penny $12,352
Donald C. Willeke $12,352
</TABLE>
As of the date of this SAI, Trustees and Officers of the Trust as a group
beneficially owned less than 1% of the outstanding shares of the Trust.
Investment Advisor. The LifePath Funds do not have an investment advisor
------------------
or sub-advisor at the feeder Fund level. BGFA provides investment advisory
services to each LifePath Master Portfolio. As investment advisor, BGFA
furnishes investment guidance and policy direction in connection with the daily
portfolio management of the Master Portfolios. BGFA furnishes to the Trust's
Board of Trustees periodic reports on the investment strategy and performance of
each Master Portfolio. BGFA provides the Master Portfolios with, among other
things, money market and fixed-income research, analysis and statistical and
economic data and information concerning interest rate and securities markets
trends, portfolio composition, and credit conditions. For providing investment
advisory services, BGFA is entitled to receive a monthly fee of 0.55% of each
LifePath Master Portfolio's average daily net assets.
LifePath Funds. For the periods indicated below the corresponding Master
--------------
Portfolio of each LifePath Fund paid to BGFA, without waiver, the following
advisory fees:
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
Master Portfolio 2/29/00 2/28/99 2/28/98
---------------- ---------- ---------- ----------
<S> <C> <C> <C>
LifePath 2000 Master Portfolio $ 529,139 $ 630,133 $ 656,142
LifePath 2010 Master Portfolio $1,282,599 $1,236,989 $1,018,984
LifePath 2020 Master Portfolio $2,101,737 $1,882,147 $1,572,634
LifePath 2030 Master Portfolio $1,501,573 $1,405,948 $1,048,151
LifePath 2040 Master Portfolio $2,790,585 $2,472,170 $1,767,632
</TABLE>
Administrator. The Trust has retained Wells Fargo Bank as Administrator on
-------------
behalf of each Fund. Under the Administration Agreement between Wells Fargo
Bank and the Trust, Wells Fargo Bank shall provide as administration services,
among other things: (i) general supervision of the Funds' operations, including
coordination of the services performed by each
22
<PAGE>
Fund's investment advisor, transfer agent, custodian, shareholder servicing
agent(s), independent auditors and legal counsel, regulatory compliance,
including the compilation of information for documents such as reports to, and
filings with, the SEC and state securities commissions; and preparation of proxy
statements and shareholder reports for each Fund; and (ii) general supervision
relative to the compilation of data required for the preparation of periodic
reports distributed to the Trust's officers and Board of Trustees. Wells Fargo
Bank also furnishes office space and certain facilities required for conducting
the Funds' business together with ordinary clerical and bookkeeping services.
The Administrator is entitled to receive a fee of up to 0.15% of each Fund's
average daily net assets on an annual basis.
As discussed in the "Historical Fund Information" section, the Funds were
created as part of the reorganization of the Stagecoach Trust Funds, therefore,
the information shown below concerning the dollar amounts of administration fees
paid shows the dollar amount of fees paid administrators by the predecessor
portfolio.
The predecessor Stagecoach Trust Funds had retained Wells Fargo Bank as
Administrator for the period from April 1, 1999 through the Reorganization on
November 5, 1999, under the same terms as are currently in effect. Prior to
April 1, 1999, Wells Fargo served as Administrator and Stephens served as Co-
Administrator on behalf of each Fund. Wells Fargo Bank and Stephens were
entitled to receive a monthly fee of 0.03% and 0.04%, respectively, of the
average daily net assets of each Fund. Prior to February 1, 1998, the Wells
Fargo Bank and Stephens received a monthly fee of 0.04% and 0.02%, respectively,
of the average daily net assets of each Fund. In connection with the change in
fees, the responsibility for performing various administration services was
shifted to the Co-Administrator.
LifePath Funds. For the periods indicated below, the LifePath Funds paid
--------------
the following dollar amounts to Wells Fargo Bank and Stephens for administration
and co-administration fees:
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
2/29/00 2/28/99 2/28/98
------- ------- --------
Fund Wells Fargo Stephens Wells Fargo Stephens Wells Fargo Stephens
---- ----------- -------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
LifePath Opportunity Fund $ 80,141 $1,931 $ 22,853 $ 30,294 $14,649 $ 58,594
LifePath 2010 Fund $149,355 $3,276 $ 36,185 $ 47,967 $17,577 $ 70,309
LifePath 2020 Fund $267,609 $5,799 $ 66,125 $ 87,654 $32,004 $128,017
LifePath 2030 Fund $213,679 $4,800 $ 53,371 $ 70,747 $23,443 $ 93,771
LifePath 2040 Fund $457,652 $9,899 $107,988 $143,148 $45,597 $182,388
</TABLE>
Distributor. Stephens Inc. ("Stephens," the "Distributor"), located at 111
-----------
Center Street, Little Rock, Arkansas 72201, serves as Distributor for the Funds.
The Funds listed below have adopted a distribution plan (a "Plan") under Section
12(b) of the 1940 Act and Rule 12b-1 thereunder (the "Rule") for certain classes
of their shares. The Plan was adopted by the Trust's Board of Trustees,
including a majority of the Trustees who were not "interested persons" (as
defined in the 1940 Act) of the Funds and who had no direct or indirect
financial interest in the operation of the Plan or in any agreement related to
the Plan (the "Non-Interested Trustees").
Under the Plan and pursuant to the related Distribution Agreement, the
Funds and Classes indicated in the table below pay Stephens a fee as
compensation for distribution-related services or
23
<PAGE>
as reimbursement for distribution-related expenses. The fee is based on the
average daily net assets attributable to each Class.
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Maximum Annual 12b-1 Fee as a Percentage of Net Assets
------------------------------------------------------------------------
Fund Class A Class B Class C
---- ------- ------- -------
<S> <C> <C> <C>
LifePath Opportunity Fund 0.25% 0.75% 0.75%
LifePath 2010 Fund 0.25% 0.75% 0.75%
LifePath 2020 Fund 0.25% 0.75% 0.75%
LifePath 2030 Fund 0.25% 0.75% 0.75%
LifePath 2040 Fund 0.25% 0.75% 0.75%
</TABLE>
The actual fee payable to the Distributor by the above-indicated Funds and
Classes is determined, within such limits, from time to time by mutual agreement
between the Trust and the Distributor and will not exceed the maximum sales
charges payable by mutual funds sold by members of the National Association of
Securities Dealers, Inc. ("NASD") under the Conduct Rules of the NASD. The
Distributor may enter into selling agreements with one or more selling agents
(which may include Wells Fargo Bank and its affiliates) under which such agents
may receive compensation for distribution-related services from the Distributor,
including, but not limited to, commissions or other payments to such agents
based on the average daily net assets of Fund shares attributable to their
customers. The Distributor may retain any portion of the total distribution fee
payable thereunder to compensate it for distribution-related services provided
by it or to reimburse it for other distribution-related expenses.
As discussed in the "Historical Fund Information" section, the Funds were
created as part of the reorganization of the Stagecoach Trust into Wells Fargo
Funds Trust. Therefore, the information shown below concerning the fees received
by the Funds' Distributor shows the fees paid by the predecessor portfolio that
is considered the surviving entity for accounting purposes to its respective
Distributor. The predecessor Stagecoach Funds had also retained Stephens as
their Distributor.
For the period ended February 29, 2000, the LifePath Funds paid the
Distributor the following fees for distribution-related services, as set forth
below, under each Fund's Plan:
<TABLE>
<CAPTION>
Printing &
Former Mailing Marketing Compensation
Stagecoach Trust Fund Total Prospectus Brochures to Underwriters
--------------------- ----- ---------- --------- ---------------
<S> <C> <C> <C> <C>
LifePath Opportunity
Class A $133,569 N/A N/A $133,569
Class B $ 36,047 N/A N/A $ 36,047
Class C $ 56,640 N/A N/A $ 56,640
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
Printing &
Former Mailing Marketing Compensation
Stagecoach Trust Fund Total Prospectus Brochures to Underwriters
--------------------- ----- ---------- --------- ---------------
<S> <C> <C> <C> <C>
LifePath 2010
Class A $233,560 N/A N/A $233,560
Class B $188,302 N/A N/A $188,302
Class C $ 22,615 N/A N/A $ 22,615
LifePath 2020
Class A $442,019 N/A N/A $442,019
Class B $296,934 N/A N/A $296,934
Class C $ 10,586 N/A N/A $ 10,586
LifePath 2030
Class A $352,700 N/A N/A $352,700
Class B $241,495 N/A N/A $241,495
Class C $ 4,535 N/A N/A $ 4,535
LifePath 2040
Class A $710,856 N/A N/A $710,856
Class B $608.970 N/A N/A $608,970
Class C $ 35,086 N/A N/A $ 35,086
</TABLE>
General. The Plan will continue in effect from year to year if such
-------
continuance is approved by a majority vote of both the Trustees of the Trust and
the Non-Interested Trustees. Any Distribution Agreement related to the Plan also
must be approved by such vote of the Trustees and the Non-Interested Trustees.
Such Agreement will terminate automatically if assigned, and may be terminated
at any time, without payment of any penalty, by a vote of a majority of the
outstanding voting securities of the relevant class of the Fund or by vote of a
majority of the Non-Interested Trustees on not more than 60 days' written
notice. The Plan may not be amended to increase materially the amounts payable
thereunder without the approval of a majority of the outstanding voting
securities of the Fund, and no material amendment to the Plan may be made except
by a majority of both the Trustees of the Trust and the Non-Interested Trustees.
The Plan requires that the Treasurer of the Trust shall provide to the
Trustees, and the Trustees shall review, at least quarterly, a written report of
the amounts expended (and purposes therefor) under the Plan. The Rule also
requires that the selection and nomination of Trustees who are not "interested
persons" of the Trust be made by such disinterested Trustees.
Wells Fargo Bank, an interested person (as that term is defined in Section
2(a)(19) of the 1940 Act) of the Trust, acts as a selling agent for the Funds'
shares pursuant to selling
25
<PAGE>
agreements with Stephens authorized under the Plan. As a selling agent, Wells
Fargo Bank has an indirect financial interest in the operation of the Plans. The
Board of Trustees has concluded that the Plan is reasonably likely to benefit
the Funds and their shareholders because the Plan authorize the relationships
with selling agents, including Wells Fargo Bank, that have previously developed
distribution channels and relationships with the retail customers that the Funds
are designed to serve. These relationships and distribution channels are
believed by the Board to provide potential for increased Fund assets and
ultimately corresponding economic efficiencies (i.e., lower per-share
transaction costs and fixed expenses) that are generated by increased assets
under management.
Shareholder Servicing Agent. The Funds have approved a Servicing Plan
---------------------------
and have entered into related Shareholder Servicing Agreements with financial
institutions, including Wells Fargo Bank. Under the agreements, Shareholder
Servicing Agents (including Wells Fargo Bank) agree to perform, as agents for
their customers, administrative services, with respect to Fund shares, which
include aggregating and transmitting shareholder orders for purchases, exchanges
and redemptions; maintaining shareholder accounts and records; and providing
such other related services as the Trust or a shareholder may reasonably
request.
For providing shareholder services, a Servicing Agent is entitled to a fee
from the applicable Fund of up to 0.25% on an annualized basis, of the average
daily net assets of the class of shares owned of record or beneficially by the
customers of the Servicing Agent during the period for which payment is being
made. The amounts payable under the Shareholder Servicing Plan and Agreements
are shown in the table below. The Servicing Plan and related Shareholder
Servicing Agreements were approved by the Trust's Board of Trustees and provide
that a Fund shall not be obligated to make any payments under such Plan or
related Agreements that exceed the maximum amounts payable under the Conduct
Rules of the NASD.
Fund Fee
---- ---
LifePath Opportunity
Class A 0.25%
Class B 0.25%
Class C 0.25%
Institutional Class 0.25%
LifePath 2010
Class A 0.25%
Class B 0.25%
Class C 0.25%
Institutional Class 0.25%
LifePath 2020
Class A 0.25%
Class B 0.25%
Class C 0.25%
Institutional Class 0.25%
26
<PAGE>
Fund Fee
---- ---
LifePath 2030
Class A 0.25%
Class B 0.25%
Class C 0.25%
Institutional Class 0.25%
LifePath 2040
Class A 0.25%
Class B 0.25%
Class C 0.25%
Institutional Class 0.25%
General. The Servicing Plan will continue in effect from year to year if
-------
such continuance is approved by a majority vote of the Trustees of the Trust and
the Non-Interested Trustees. Any form of Servicing Agreement related to the
Servicing Plan also must be approved by such vote of the Trustees and Non-
Interested Trustees. Servicing Agreements may be terminated at any time, without
payment of any penalty, by vote of a majority of the Board of Trustees,
including a majority of the Non-Interested Trustees. No material amendment to
the Servicing Plan or related Servicing Agreements may be made except by a
majority of both the Trustees of the Trust and the Non-Interested Trustees.
The Servicing Plan requires that the Administrator shall provide to the
Trustees, and the Trustees shall review, at least quarterly, a written report of
the amounts expended (and purposes therefor) under the Servicing Plan.
Custodian. IBT, located at 200 Clarendon Street, Boston, MA, acts the
---------
custodian for each of the LifePath Funds. For its services as Custodian, IBT is
not entitled to receive compensation so long as it is entitled to receive
custodial fees from the Master Portfolios.
The Custodian, among other things, maintains a custody account or accounts
in the name of each Fund, receives and delivers all assets for each Fund upon
purchase and upon sale or maturity, collects and receives all income and other
payments and distributions on account of the assets of each Fund, and pays all
expenses of each Fund.
Fund Accountant. IBT serves as fund accountant for the LifePath Funds.
---------------
For providing these services, IBT is entitled to receive an annual fee of
$12,000 per Fund and an annual fee of $4,500 per class of shares.
Transfer and Dividend Disbursing Agent. Boston Financial Data Services,
--------------------------------------
Inc. ("BFDS"), located at Two Heritage Drive, Quincy, Massachusetts 02171, acts
as Transfer and Dividend Disbursing Agent for the Funds. For providing such
services, BFDS is entitled to receive a per-account fee plus transaction fees
and certain out-of-pocket costs. BFDS is also entitled to receive a complete
base fee from all the Funds of the Trust, Core Trust and Wells Fargo Variable
Trust.
27
<PAGE>
Underwriting Commissions. Stephens serves as the principal underwriter
------------------------
distributing securities of the Funds on a continuous basis. Stephens served as
principal underwriter of the Stagecoach predecessor portfolios. The information
shown below regarding underwriting commissions paid for the last three fiscal
years reflects the amounts paid by the predecessor Stagecoach fund family.
For the periods indicated below, the aggregate dollar amount of
underwriting commissions paid to Stephens and the amounts retained by Stephens
are as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
2/29/00 2/28/99 2/28/98
--------- ---------- ----------
Paid Retained Paid Retained Paid Retained
---- -------- ---- -------- ---- --------
<S> <C> <C> <C> <C> <C>
$119,353 $119,353 $6,214,051 $2,289,826 $7,671,295 $939,892
</TABLE>
PERFORMANCE CALCULATIONS
The Funds may advertise certain yield and total return information.
Quotations of yield and total return reflect only the performance of a
hypothetical investment in a Fund or class of shares during the particular time
period shown. Yield and total return vary based on changes in the market
conditions and the level of a Fund's expenses, and no reported performance
figure should be considered an indication of performance which may be expected
in the future.
In connection with communicating its performance to current or prospective
shareholders, these figures may also be compared to the performance of other
mutual funds tracked by mutual fund rating services or to unmanaged indices
which may assume reinvestment of dividends but generally do not reflect
deductions for administrative and management costs.
Performance information for a Fund or Class of shares in a Fund may be
useful in reviewing the performance of such Fund or Class of shares and for
providing a basis for comparison with investment alternatives. The performance
of a Fund and the performance of a Class of shares in a Fund, however, may not
be comparable to the performance from investment alternatives because of
differences in the foregoing variables and differences in the methods used to
value portfolio securities, compute expenses and calculate performance.
Performance information may be advertised for non-standardized periods,
including year-to-date and other periods less than a year for the Funds. Annual
and Semi-Annual Reports for the Funds may contain additional performance
information, and are available free of charge upon request.
Average Annual Total Return: The Funds may advertise certain total return
---------------------------
information. As and to the extent required by the SEC, an average annual
compound rate of return ("T") is computed by using the redeemable value at the
end of a specified period ("ERV") of a hypothetical initial investment ("P")
over a period of years ("n") according to the following formula: P(1+T)/n/=ERV.
28
<PAGE>
Average Annual Total Return for the Period Ended February 29, 2000/1/
------------------------------------------------------------------
Fund Inception/2/ Ten Year Five Year One Year
---- --------- -------- --------- --------
LifePath Opportunity
Class A 6.32% N/A 7.17% -1.52%
Class B 6.74% N/A 7.64% -1.05%
Class C 6.84% N/A 7.91% 2.93%
Institutional Class 7.37% N/A 8.45% 4.40%
LifePath 2010
Class A 10.46% N/A 11.94% 1.32%
Class B 10.87% N/A 12.42% 2.10%
Class C 10.96% N/A 12.66% 5.94%
Institutional Class 11.53% N/A 13.24% 7.33%
LifePath 2020
Class A 13.36% N/A 15.30% 4.09%
Class B 13.81% N/A 15.85% 4.94%
Class C 13.89% N/A 16.05% 8.87%
Institutional Class 14.51% N/A 16.69% 10.55%
LifePath 2030
Class A 15.48% N/A 17.91% 6.14%
Class B 15.91% N/A 18.45% 7.19%
Class C 15.97% N/A 18.63% 11.06%
Institutional Class 16.62% N/A 19.30% 12.60%
LifePath 2040
Class A 17.79% N/A 20.47% 9.00%
Class B 18.22% N/A 21.01% 10.07%
Class C 18.30% N/A 21.20% 14.07%
Institutional Class 18.97% N/A 21.91% 15.70%
____________________
/1/ Return calculations reflect the inclusion of front-end sales charges for
Class A shares and the maximum applicable contingent deferred sales charge
for Class B and Class C shares.
/2/ For purposes of showing performance information, the inception date of each
Fund's predecessor portfolio is the commencement date stated in the
"Historical Fund Information" section of this SAI. The actual inception
date of each Class may differ from the inception date of the corresponding
Fund. Values for the Institutional Class shares of the LifePath Funds are
calculated using Class A share performance adjusted to reflect the
Institutional Class expenses.
Cumulative Total Return. In addition to the above performance
-----------------------
information, each Fund may also advertise the cumulative total return of the
Fund. Cumulative total return is based on the overall percentage change in value
of a hypothetical investment in the Fund, assuming all Fund dividends and
capital gain distributions are reinvested, without reflecting the effect of any
sales charge that would be paid by an investor, and is not annualized.
29
<PAGE>
Cumulative Total Return for the Year Ended February 29, 2000/1/
------------------------------------------------------------
Fund Inception/2/ Five Year One Year
---- --------- --------- --------
LifePath Opportunity
Class A 44.43% 41.40% -1.52%
Class B 47.85% 45.52% -1.05%
Class C 48.68% 46.35% 2.93%
Institutional Class 53.14% 50.00% 4.40%
LifePath 2010
Class A 81.60% 75.78% 1.32%
Class B 85.65% 80.57% 2.10%
Class C 86.55% 81.47% 5.94%
Institutional Class 92.37% 86.22% 7.33%
LifePath 2020
Class A 112.17% 103.78% 4.09%
Class B 117.27% 109.64% 4.94%
Class C 118.11% 110.50% 8.87%
Institutional Class 125.32% 116.40% 10.55%
LifePath 2030
Class A 137.03% 127.86% 6.14%
Class B 142.45% 134.17% 7.19%
Class C 143.18% 134.91% 11.06%
Institutional Class 151.42% 141.69% 12.60%
LifePath 2040
Class A 167.01% 169.15% 9.00%
Class B 172.88% 161.44% 10.07%
Class C 173.99% 161.55% 14.07%
Institutional Class 183.41% 169.25% 15.70%
____________________
/1/ Return calculations reflect the inclusion of front-end sales charges for
Class A shares and the maximum applicable contingent deferred sales charge
for Class B and Class C shares.
/2/ For purposes of showing performance information, the inception date of each
Fund's predecessor portfolio is as follows: LifePath Funds -- March 3,
1997. The actual inception date of each Class may differ from the inception
date of the corresponding Fund. Values for the Institutional Class shares
of the LifePath Funds are calculated using Class A share performance
adjusted to reflect the Institutional Class expenses.
The yields for each class of shares will fluctuate from time to time,
unlike bank deposits or other investments that pay a fixed yield for a stated
period of time, and do not provide a basis for determining future yields since
they are based on historical data. Yield is a function of portfolio quality,
composition, maturity and market conditions as well as the expenses allocated to
a Fund or to a particular class of a Fund.
In addition, investors should recognize that changes in the net asset
values of shares of each class of a Fund will affect the yield of the respective
class of shares for any specified period, and such changes should be considered
together with such class' yield in ascertaining such class' total
30
<PAGE>
return to shareholders for the period. Yield information for each class of
shares may be useful in reviewing the performance of the class of shares and for
providing a basis for comparison with investment alternatives. The yield of each
class of shares, however, may not be comparable to the yields from investment
alternatives because of differences in the foregoing variables and differences
in the methods used to value portfolio securities, compute expenses and
calculate yield.
From time to time and only to the extent the comparison is appropriate for
a Fund or a Class of shares, the Trust may quote the performance or price-
earning ratio of a Fund or a Class of in advertising and other types of
literature as compared with the performance of the S&P Index, the Dow Jones
Industrial Average, the Lehman Brothers 20+ Treasury Index, the Lehman Brothers
5-7 Year Treasury Index, Donoghue's Money Fund Averages, Real Estate Investment
Averages (as reported by the National Association of Real Estate Investment
Trusts), Gold Investment Averages (provided by the World Gold Council), Bank
Averages (which is calculated from figures supplied by the U.S. League of
Savings Institutions based on effective annual rates of interest on both
passbook and certificate accounts), average annualized certificate of deposit
rates (from the Federal Reserve G-13 Statistical Releases or the Bank Rate
Monitor), the Salomon One Year Treasury Benchmark Index, the Consumer Price
Index (as published by the U.S. Bureau of Labor Statistics), other managed or
unmanaged indices or performance data of bonds, municipal securities, stocks or
government securities (including data provided by Ibbotson Associates), or by
other services, companies, publications or persons who monitor mutual funds on
overall performance or other criteria. The S&P Index and the Dow Jones
Industrial Average are unmanaged indices of selected common stock prices. The
performance of a Fund or a class also may be compared to that of other mutual
funds having similar objectives. This comparative performance could be expressed
as a ranking prepared by Lipper Analytical Services, Inc., CDA Investment
Technologies, Inc., Bloomberg Financial Markets or Morningstar, Inc.,
independent services which monitor the performance of mutual funds. The Funds'
performance will be calculated by relating net asset value per share of each
class at the beginning of a stated period to the net asset value of the
investment, assuming reinvestment of all gains distributions paid, at the end of
the period. The Funds' comparative performance will be based on a comparison of
yields or total return, as reported by Lipper, Survey Publications, Donoghue or
Morningstar, Inc.
Any such comparisons may be useful to investors who wish to compare past
performance of the Funds or a class of shares with the performance of a Fund's
competitors. Of course, past performance cannot be a guarantee of future
results. The Trust also may include, from time to time, a reference to certain
marketing approaches of the Distributor, including, for example, a reference to
a potential shareholder being contacted by a selected broker or dealer. General
mutual fund statistics provided by the Investment Company Institute may also be
used.
The Trust also may use the following information in advertisements and
other types of literature, only to the extent the information is appropriate for
each class of shares of a Fund: (i) the Consumer Price Index may be used to
assess the real rate of return from an investment in each class of shares of a
Fund; (ii) other government statistics, including, but not limited to, The
Survey of Current Business, may be used to illustrate investment attributes of
each class of shares of a Fund or the general economic, business, investment, or
financial environment in which a Fund operates; (iii) the effect of tax-deferred
compounding on the investment returns of each class of shares of a Fund or on
returns in general, may be illustrated by graphs, charts, etc., where such
graphs or charts would compare, at various points in time, the return from an
investment in each
31
<PAGE>
class of shares of the Fund (or returns in general) on a tax-deferred basis
(assuming reinvestment of capital gains and dividends and assuming one or more
tax rates) with the return on a taxable basis; and (iv) the sectors or
industries in which the Fund invests may be compared to relevant indices of
stocks or surveys (e.g., S&P Industry Surveys) to evaluate the historical
performance or current or potential value of each class of shares of a Fund with
respect to the particular industry or sector.
The Trust also may use, in advertisements and other types of literature,
information and statements: (1) showing that bank savings accounts offer a
guaranteed return of principal and a fixed rate of interest, but no opportunity
for capital growth; and (2) describing Wells Fargo Bank, and its affiliates and
predecessors, as one of the first investment managers to advise investment
accounts using asset allocation and index strategies. The Trust also may include
in advertising and other types of literature information and other data from
reports and studies prepared by the Tax Foundation, including information
regarding federal and state tax levels and the related "Tax Freedom Day."
The Trust also may discuss in advertising and other types of literature
that a Fund has been assigned a rating by an NRRO, such as Standard Poor's
Corporation. Such rating would assess the creditworthiness of the investments
held by a Fund. The assigned rating would not be a recommendation to purchase,
sell or hold a Fund's shares since the rating would not comment on the market
price of a Fund's shares or the suitability of a Fund for a particular investor.
In addition, the assigned rating would be subject to change, suspension or
withdrawal as a result of changes in, or unavailability of, information relating
to a Fund or its investments. The Trust may compare the performance of each
class of shares of a Fund with other investments which are assigned ratings by
NRROs. Any such comparisons may be useful to investors who wish to compare each
class' past performance with other rated investments.
From time to time, a Fund may use the following statements, or variations
thereof, in advertisements and other promotional materials: "Wells Fargo Bank,
as a Shareholder Servicing Agent for the Wells Fargo Funds Trust, provides
various services to its customers that are also shareholders of the Funds. These
services may include access to Wells Fargo Funds Trust's account information
through Automated Teller Machines (ATMs), the placement of purchase and
redemption requests for shares of the Funds through ATMs and the availability of
combined Wells Fargo Bank and Wells Fargo Funds Trust account statements."
The Trust also may disclose, in advertising and other types of literature,
information and statements that Wells Capital Management, Inc. (formerly, Wells
Fargo Investment Management) a subsidiary of Wells Fargo Bank, is listed in the
top 100 by Institutional Investor magazine in its July 1997 survey "America's
Top 300 Money Managers." This survey ranks money managers in several asset
categories. The Trust also may disclose in advertising and other types of sales
literature the assets and categories of assets under management by the Trust's
investment Advisor and the total amount of assets and mutual fund assets managed
by Wells Fargo Bank. As of June 30, 1999, Wells Fargo Bank and its affiliates
managed over $131 billion in assets.
The Trust may disclose in advertising and other types of literature that
investors can open and maintain Sweep Accounts over the Internet or through
other electronic channels (collectively, "Electronic Channels"). Such
advertising and other literature may discuss the investment options available to
investors, including the types of accounts and any applicable fees. Such
advertising
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<PAGE>
and other literature may disclose that Wells Fargo Bank is the first major bank
to offer an on-line application for a mutual fund account that can be filled out
completely through Electronic Channels. Advertising and other literature may
disclose that Wells Fargo Bank may maintain Web sites, pages or other
information sites accessible through Electronic Channels (an "Information Site")
and may describe the contents and features of the Information Site and instruct
investors on how to access the Information Site and open a Sweep Account.
Advertising and other literature may also disclose the procedures employed by
Wells Fargo Bank to secure information provided by investors, including
disclosure and discussion of the tools and services for accessing Electronic
Channels. Such advertising or other literature may include discussions of the
advantages of establishing and maintaining a Sweep Account through Electronic
Channels and testimonials from Wells Fargo Bank customers or employees and may
also include descriptions of locations where product demonstrations may occur.
The Trust may also disclose the ranking of Wells Fargo Bank as one of the
largest money managers in the United States.
DETERMINATION OF NET ASSET VALUE
Net asset value per share for each class of the Funds is determined as of
the close of regular trading (currently 1:00 p.m. (Pacific time), 3:00 p.m.
(Central time), 4:00 p.m. (Eastern time)) on each day the New York Stock
Exchange ("NYSE") is open for business. Expenses and fees, including advisory
fees, are accrued daily and are taken into account for the purpose of
determining the net asset value of the Funds' shares.
Securities of a Fund for which market quotations are available are valued
at latest prices. Any security for which the primary market is an exchange is
valued at the last sale price on such exchange on the day of valuation or, if
there was no sale on such day, the latest bid price quoted on such day. In the
case of other Fund securities, including U.S. Government securities but
excluding money market instruments and debt securities maturing in 60 days or
less, the valuations are based on latest quoted bid prices. Money market
instruments and debt securities maturing in 60 days or less are valued at
amortized cost. Futures contracts will be marked to market daily at their
respective settlement prices determined by the relevant exchange. Prices may be
furnished by a reputable independent pricing service approved by the Trust's
Board of Trustees. Prices provided by an independent pricing service may be
determined without exclusive reliance on quoted prices and may take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data. All other securities and other assets of
a Fund for which current market quotations are not readily available are valued
at fair value as determined in good faith by the Trust's Board of Trustees and
in accordance with procedures adopted by the Trustees.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Shares of the Funds may be purchased on any day the Funds are open for
business. Each Fund is open for business each day the NYSE is open for trading
(a "Business Day"). Currently, the NYSE is closed on New Year's Day, Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day (each a "Holiday"). When any
Holiday falls on a weekend, the NYSE typically is closed on the weekday
immediately before or after such Holiday.
33
<PAGE>
Payment for shares may, in the discretion of the advisor, be made in the
form of securities that are permissible investments for the Funds. For further
information about this form of payment please contact Stephens. In connection
with an in-kind securities payment, the Funds will require, among other things,
that the securities be valued on the day of purchase in accordance with the
pricing methods used by a Fund and that such Fund receives satisfactory
assurances that (i) it will have good and marketable title to the securities
received by it; (ii) that the securities are in proper form for transfer to the
Fund; and (iii) adequate information will be provided concerning the basis and
other matters relating to the securities.
Under the 1940 Act, the Funds reserve the right to reject any purchase
orders, and may suspend the right of redemption or postpone the date of payment
upon redemption for any period during which the NYSE is closed (other than
customary weekend and holiday closings, or during which trading is restricted,
or during which as determined by the SEC by rule or regulation) an emergency
exists as a result of which disposal or valuation of portfolio securities is not
reasonably practicable, or for such periods as the SEC may permit. The Trust
may also redeem shares involuntarily or make payment for redemption in
securities or other property if it appears appropriate to do so in light of the
Trust's responsibilities under the 1940 Act. In addition, the Trust may redeem
shares involuntarily to reimburse the Fund for any losses sustained by reason of
the failure of a shareholder to make full payment for shares purchased or to
collect any charge relating to a transaction effected for the benefit of a
shareholder which is applicable to shares of a Fund as provided from time to
time in the Prospectus.
The dealer reallowance for Class A shares is as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
FRONT-END SALES FRONT-END SALES DEALER
CHARGE AS % CHARGE AS % ALLOWANCE
AMOUNT OF PUBLIC OF NET AMOUNT AS % OF PUBLIC
OF PURCHASE OFFERING PRICE INVESTED OFFERING PRICE
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $50,000 5.75% 6.10% 5.00%
---------------------------------------------------------------------------------------------------
$50,000 to $99,999 4.75% 4.99% 4.00%
---------------------------------------------------------------------------------------------------
$100,000 to $249,999 3.75% 3.90% 3.00%
---------------------------------------------------------------------------------------------------
$250,000 to $499,999 2.75% 2.83% 2.25%
---------------------------------------------------------------------------------------------------
$500,000 to $999,999 2.00% 2.04% 1.75%
---------------------------------------------------------------------------------------------------
$1,000,000 and over/1/ 0.00% 0.00% 1.00%
---------------------------------------------------------------------------------------------------
</TABLE>
/1/We will assess Class A shares purchases of $1,000,000 or more a 1.00% CDSC if
they are redeemed within one year from the date of purchase. Charges are
based on the lower of the NAV on the date of purchase or the date of
redemption.
Purchases and Redemptions Through Brokers and/or Their Affiliates. A broker
-----------------------------------------------------------------
may charge transaction fees on the purchase and/or sale of Fund shares in
addition to those fees described in the Prospectus in the Summary of Expenses.
The Trust has authorized one or more brokers to receive on its behalf purchase
and redemption orders, and such brokers are authorized to designate other
intermediaries to receive purchase and redemption orders on the Trust's behalf.
The Trust will be deemed to have received a purchase or redemption order for
Fund
34
<PAGE>
shares when an authorized broker or, if applicable, a broker's authorized
designee, receives the order.
Reduced Sales Charges for Former Norwest Advantage Fund Class B
---------------------------------------------------------------
Shareholders. No contingent deferred sales charge is imposed on redemptions of
------------
Class B shares of a former Norwest Advantage Fund purchased prior to October 1,
1999, to effect a distribution (other than a lump sum distribution) from an IRA,
Keogh plan or Section 403(b) custodial account or from a qualified retirement
plan.
Reduced Sales Charges for Employees of the Transfer Agent. Employees of
---------------------------------------------------------
Boston Financial Data Services, Inc., transfer agent for the Trust, may purchase
Class A shares at net asset value.
PORTFOLIO TRANSACTIONS
Since each Fund invests all of its assets in a corresponding Master
Portfolio of Master Investment Portfolio ("MIP"), set forth below is a
description of the Master Portfolios' policies governing portfolio securities
transactions.
Purchases and sales of equity securities on a securities exchange usually
are effected through brokers who charge a negotiated commission for their
services. Commission rates are established pursuant to negotiations with the
broker based on the quality and quantity of execution services provided by the
broker in light of generally prevailing rates. Orders may be directed to any
broker including, to the extent and in the manner permitted by applicable law,
Stephens or Barclays Global Investors Services. In the over-the-counter market,
securities are generally traded on a "net" basis with dealers acting as
principal for their own accounts without a stated commission, although the price
of the security usually includes a profit to the dealer. In underwritten
offerings, securities are purchased at a fixed price that includes an amount of
compensation to the underwriter, generally referred to as the underwriter's
concession or discount.
Purchases of debt securities generally are principal transactions. Debt
securities normally are purchased or sold from or to dealers serving as market
makers for the securities at a net price. Debt securities may also be purchased
in underwritten offerings or directly from an issuer. Generally debt obligations
are traded on a net basis and do not involve brokerage commissions. The cost of
executing transactions in debt securities consists primarily of dealer spreads
and underwriting commissions. Under the 1940 Act, persons affiliated with MIP
are prohibited from dealing with MIP as a principal in the purchase and sale of
portfolio securities unless an exemptive order allowing such transactions is
obtained from the Commission or an exemption is otherwise available. The Master
Portfolios may purchase securities from underwriting syndicates of which
Stephens or BGFA is a member under certain conditions in accordance with the
provisions of a rule adopted under the 1940 Act and in compliance with
procedures adopted by MIP's Board of Trustees.
MIP has no obligation to deal with any dealer or group of dealers in the
execution of transactions in portfolio securities. Subject to policies
established by MIP's Board of Trustees,
35
<PAGE>
BGFA, as adviser, is responsible for the Master Portfolio's investment decisions
and the placing of portfolio transactions. In placing orders, it is MIP's policy
to obtain the best overall terms taking into account the dealer's general
execution and operational facilities, the type of transaction involved and other
factors such as the dealer's risk in positioning the securities involved. BGFA
generally seeks reasonably competitive spreads or commissions.
In assessing the best overall terms available for any transaction, BGFA
considers factors deemed relevant, including the breadth of the market in the
security, the price of the security, the financial condition and execution
capability of the broker or dealer, and the reasonableness of the commission, if
any, both for the specific transaction and on a continuing basis. As a result, a
Master Portfolio may pay a broker/dealer which furnishes brokerage services a
higher commission than that which might be charged by another broker/dealer for
effecting the same transaction, provided that such commission is determined to
be reasonable in relation to the value of the brokerage services provided by
such broker/dealer. Certain of the broker/dealers with whom the Master
Portfolios may transact business may offer commission rebates to the Master
Portfolios. BGFA considers such rebates in assessing the best overall terms
available for any transaction. MIP's Board of Trustees will periodically review
the commissions paid by the Master Portfolios to consider whether the
commissions paid over representative periods of time appear to be reasonable in
relation to the benefits inuring to the Master Portfolios.
Under Section 28(e) of the Securities Exchange Act of 1934, an adviser
shall not be "deemed to have acted unlawfully or to have breached its fiduciary
duty" solely because under certain circumstances it has caused the account to
pay a higher commission than the lowest available. To obtain the benefit of
Section 28(e), an adviser must make a good faith determination that the
commissions paid are "reasonable in relation to the value of the brokerage and
research services provided . . . viewed in terms of either that particular
transaction or its overall responsibilities with respect to the accounts as to
which it exercises investment discretion and that the services provided by a
broker provide an adviser with lawful and appropriate assistance in the
performance of its investment decision-making responsibilities." Accordingly,
the price to a Master Portfolio in any transaction may be less favorable than
that available from another broker/dealer if the difference is reasonably
justified by other aspects of the portfolio execution services offered.
FUND EXPENSES
Wells Fargo Bank ("WFB") is contractually obligated to reimburse each Fund
for some of its operating expenses or to waive a portion of the fees payable to
it in order to maintain a certain operating expense ratio. The minimum term of
the contract is one year from the closing date of the reorganization, which was
November 5, 1999. After this time, the contract remains in effect unless the
Board acts to reduce or eliminate such waivers. WFB has committed to maintain
current net operating expense ratio through June 30, 2001. Actual
reimbursements and waivers have a positive effect on performance information.
For the year ended February 29, 2000, Wells Fargo Bank waived a portion of each
Fund's expenses. Expense waiver information is included in the Funds'
Statements of Operations listed in their Annual Report.
Except for the expenses borne by Wells Fargo Bank, the Trust bears all
costs of its operations, including the compensation of its Trustees who are not
affiliated with Stephens or
36
<PAGE>
Wells Fargo Bank or any of their affiliates; advisory, shareholder servicing and
administration fees; payments pursuant to any Plan; interest charges; taxes;
fees and expenses of its independent auditors, legal counsel, transfer agent and
dividend disbursing agent; expenses of redeeming shares; expenses of preparing
and printing Prospectuses (except the expense of printing and mailing
Prospectuses used for promotional purposes, unless otherwise payable pursuant to
a Plan), shareholders' reports, notices, proxy statements and reports to
regulatory agencies; insurance premiums and certain expenses relating to
insurance coverage; trade association membership dues; brokerage and other
expenses connected with the execution of portfolio transactions; fees and
expenses of its custodian, including those for keeping books and accounts and
calculating the net asset value per share of a Fund; expenses of shareholders'
meetings; expenses relating to the issuance, registration and qualification of a
Fund's shares; pricing services, organizational expenses and any extraordinary
expenses. Expenses attributable to the Fund are charged against Fund assets.
General expenses of the Trust are allocated among all of the funds of the Trust,
including the Funds, in a manner proportionate to the net assets of each Fund,
on a transactional basis, or on such other basis as the Trust's Board of
Trustees deems equitable.
FEDERAL INCOME TAXES
The following information supplements and should be read in conjunction
with the Prospectus section entitled "Taxes." The Prospectus of each Fund
generally describes the tax treatment of distributions by the Fund. This section
of the SAI includes additional information concerning federal income taxes.
General. The Trust intends to continue to qualify each Fund as a regulated
-------
investment company under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"), as long as such qualification is in the best interests of
the Fund's shareholders. Each Fund will be treated as a separate entity for
federal income tax purposes. Thus, the provisions of the Code applicable to
regulated investment companies generally will be applied separately to each
Fund, rather than to the Trust as a whole. In addition, capital gains, net
investment income, and operating expenses will be determined separately for each
Fund. As a regulated investment company, each Fund will not be taxed on its net
investment income and capital gain distributed to its shareholders.
Qualification as a regulated investment company under the Code requires,
among other things, that each Fund derive at least 90% of its annual gross
income from dividends, interest, certain payments with respect to securities
loans, gains from the sale or other disposition of stock or securities or
foreign currencies (to the extent such currency gains are directly related to
the regulated investment company's principal business of investing in stock or
securities) and other income (including, but not limited to, gains from options,
futures or forward contracts) derived with respect to its business of investing
in such stock, securities or currencies; and (b) diversify its holdings so that,
at the end of each quarter of the taxable year, (i) at least 50% of the market
value of the Fund's assets is represented by cash, government securities and
other securities limited in respect of any one issuer to an amount not greater
than 5% of the Fund's assets and 10% of the outstanding voting securities of
such issuer, and (ii) not more than 25% of the value of its assets is invested
in the securities of any one issuer (other than U.S. Government obligations and
the securities of other regulated investment companies), or in two or more
issuers
37
<PAGE>
which the Fund controls and which are determined to be engaged in the same or
similar trades or businesses.
The Funds must also distribute or be deemed to distribute to their
shareholders at least 90% of their net investment income (including, for this
purpose, net short-term capital gain) earned in each taxable year. In general,
these distributions must actually or be deemed to be made in the taxable year.
However, in certain circumstances, such distributions may be made in the 12
months following the taxable year. Furthermore, distributions declared in
October, November or December of one taxable year and paid by January 31 of the
following taxable year will be treated as paid by December 31 of the first
taxable year. The Funds intend to pay out substantially all of their net
investment income and net realized capital gains (if any) for each year.
Excise Tax. A 4% nondeductible excise tax will be imposed on each Fund
----------
(other than to the extent of its tax-exempt interest income) to the extent it
does not meet certain minimum distribution requirements by the end of each
calendar year. Each Fund intends to actually or be deemed to distribute
substantially all of its net investment income and net capital gains by the end
of each calendar year and, thus, expects not to be subject to the excise tax.
Taxation of Fund Investments. Except as provided herein, gains and losses
----------------------------
on the sale of portfolio securities by a Fund will generally be capital gains
and losses. Such gains and losses will ordinarily be long-term capital gains
and losses if the securities have been held by the Fund for more than one year
at the time of disposition of the securities.
Gains recognized on the disposition of a debt obligation (including tax-
exempt obligations) purchased by a Fund at a market discount (generally at a
price less than its principal amount) will be treated as ordinary income to the
extent of the portion of market discount which accrued, but was not previously
recognized pursuant to an available election, during the term the Fund held the
debt obligation.
If an option granted by a Fund lapses or is terminated through a closing
transaction, such as a repurchase by the Fund of the option from its holder, the
Fund will realize a short-term capital gain or loss, depending on whether the
premium income is greater or less than the amount paid by the Fund in the
closing transaction. Some realized capital losses may be deferred if they
result from a position which is part of a "straddle," discussed below. If
securities are sold by the Fund pursuant to the exercise of a call option
written by it, the Fund will add the premium received to the sale price of the
securities delivered in determining the amount of gain or loss on the sale. If
securities are purchased by a Fund pursuant to the exercise of a put option
written by it, such Fund will subtract the premium received from its cost basis
in the securities purchased.
The amount of any gain or loss realized by a Fund on closing out a
regulated futures contract will generally result in a realized capital gain or
loss for federal income tax purposes. Regulated futures contracts held at the
end of each fiscal year will be required to be "marked to market" for federal
income tax purposes pursuant to Section 1256 of the Code. In this regard, they
will be deemed to have been sold at market value. Sixty percent (60%) of any net
gain or loss recognized on these deemed sales, and sixty percent (60%) of any
net realized gain or loss from any actual sales, will generally be treated as
long-term capital gain or loss, and the
38
<PAGE>
remainder will be treated as short-term capital gain or loss. Transactions that
qualify as designated hedges are excepted from the "mark-to-market" rule and the
"60%/40%" rule.
Under Section 988 of the Code, a Fund generally will recognize ordinary
income or loss to the extent that gain or loss realized on the disposition of
portfolio securities is attributable to changes in foreign currency exchange
rates. In addition, gain or loss realized on the disposition of a foreign
currency forward contract, futures contract, option or similar financial
instrument, or of foreign currency itself, will generally be treated as ordinary
income or loss. The Funds will attempt to monitor Section 988 transactions,
where applicable, to avoid adverse Federal income tax impact.
Offsetting positions held by a Fund involving certain financial forward,
futures or options contracts may be considered, for tax purposes, to constitute
"straddles." "Straddles" are defined to include "offsetting positions" in
actively traded personal property. The tax treatment of "straddles" is governed
by Section 1092 of the Code which, in certain circumstances, overrides or
modifies the provisions of Section 1256. If a Fund were treated as entering
into "straddles" by engaging in certain financial forward, futures or option
contracts, such straddles could be characterized as "mixed straddles" if the
futures, forwards, or options comprising a part of such straddles were governed
by Section 1256 of the Code. The Fund may make one or more elections with
respect to "mixed straddles." Depending upon which election is made, if any,
the results with respect to the Fund may differ. Generally, to the extent the
straddle rules apply to positions established by the Fund, losses realized by
the Fund may be deferred to the extent of unrealized gain in any offsetting
positions. Moreover, as a result of the straddle and the conversion transaction
rules, short-term capital loss on straddle positions may be recharacterized as
long-term capital loss, and long-term capital gain may be characterized as
short-term capital gain or ordinary income.
If a Fund enters into a "constructive sale" of any appreciated position in
stock, a partnership interest, or certain debt instruments, the Fund must
recognize gain (but not loss) with respect to that position. For this purpose,
a constructive sale occurs when the Fund enters into one of the following
transactions with respect to the same or substantially identical property: (i) a
short sale; (ii) an offsetting notional principal contract; or (iii) a futures
or forward contract.
If a Fund purchases shares in a "passive foreign investment company"
("PFIC"), the Fund may be subject to Federal income tax and an interest charge
imposed by the IRS upon certain distributions from the PFIC or the Fund's
disposition of its PFIC shares. If the Fund invests in a PFIC, the Fund intends
to make an available election to mark-to-market its interest in PFIC shares.
Under the election, the Fund will be treated as recognizing at the end of each
taxable year the difference, if any, between the fair market value of its
interest in the PFIC shares and its basis in such shares. In some
circumstances, the recognition of loss may be suspended. The Fund will adjust
its basis in the PFIC shares by the amount of income (or loss) recognized.
Although such income (or loss) will be taxable to the Fund as ordinary income
(or loss) notwithstanding any distributions by the PFIC, the Fund will not be
subject to Federal income tax or the interest charge with respect to its
interest in the PFIC under the election.
Foreign Taxes. Income and dividends received by a Fund from sources within
-------------
foreign countries may be subject to withholding and other taxes imposed by such
countries. Tax
39
<PAGE>
conventions between certain countries and the United States may reduce or
eliminate such taxes. In certain circumstances, a regulated investment company
is eligible to file an election with the IRS pursuant to which the regulated
investment company may pass-through to its shareholders foreign taxes paid by
the regulated investment company, which may be claimed either as a credit or
deduction by the shareholders. None of the Funds expects to qualify for the
election.
Capital Gain Distributions. Distributions which are designated by a Fund
--------------------------
as capital gain distributions will be taxed to shareholders as long-term term
capital gain (to the extent such dividends do exceed the Fund's actual net
capital gains for the taxable year), regardless of how long a shareholder has
held Fund shares. Such distributions will be designated as capital gain
distributions in a written notice mailed by the Fund to its shareholders not
later than 60 days after the close of the Fund's taxable year.
Disposition of Fund Shares. A disposition of Fund shares pursuant to a
--------------------------
redemption (including a redemption in-kind) or an exchange will ordinarily
result in a taxable capital gain or loss, depending on the amount received for
the shares (or are deemed to be received in the case of an exchange) and the
cost of the shares.
If a shareholder exchanges or otherwise disposes of Fund shares within 90
days of having acquired such shares and if, as a result of having acquired those
shares, the shareholder subsequently pays a reduced sales charge on a new
purchase of shares of the Fund or a different regulated investment company, the
sales charge previously incurred in acquiring the Fund's shares shall not be
taken into account (to the extent such previous sales charges do not exceed the
reduction in sales charges on the new purchase) for the purpose of determining
the amount of gain or loss on the disposition, but will be treated as having
been incurred in the acquisition of such other shares. Also, any loss realized
on a redemption or exchange of shares of the Fund will be disallowed to the
extent that substantially identical shares are acquired within the 61-day period
beginning 30 days before and ending 30 days after the shares are disposed of.
If a shareholder receives a designated capital gain distribution (to be
treated by the shareholder as a long-term capital gain) with respect to any Fund
share and such Fund share is held for six months or less, then (unless otherwise
disallowed) any loss on the sale or exchange of that Fund share will be treated
as a long-term capital loss to the extent of the designated capital gain
distribution. The loss disallowance rules described in this paragraph do not
apply to losses realized under a periodic redemption plan.
Federal Income Tax Rates. As of the printing of this SAI, the maximum
------------------------
individual tax rate applicable to ordinary income is 39.6% (marginal tax rates
may be higher for some individuals to reduce or eliminate the benefit of
exemptions and deductions); the maximum individual marginal tax rate applicable
to net capital gain is 20%; and the maximum corporate tax rate applicable to
ordinary income and net capital gain is 35% (marginal tax rates may be higher
for some corporations to reduce or eliminate the benefit of lower marginal
income tax rates). Naturally, the amount of tax payable by an individual or
corporation will be affected by a combination of tax laws covering, for example,
deductions, credits, deferrals, exemptions, sources of income and other matters.
40
<PAGE>
Backup Withholding. The Trust may be required to withhold, subject to
------------------
certain exemptions, at a rate of 31% ("backup withholding") on all distributions
and redemption proceeds (including proceeds from exchanges and redemptions in-
kind) paid or credited to an individual Fund shareholder, unless the shareholder
certifies that the "taxpayer identification number" ("TIN") provided is correct
and that the shareholder is not subject to backup withholding, or the IRS
notifies the Trust that the shareholder's TIN is incorrect or that the
shareholder is subject to backup withholding. Such tax withheld does not
constitute any additional tax imposed on the shareholder, and may be claimed as
a tax payment on the shareholder's Federal income tax return. An investor must
provide a valid TIN upon opening or reopening an account. Failure to furnish a
valid TIN to the Trust also could subject the investor to penalties imposed by
the IRS.
Foreign Shareholders. Under the Code, distributions attributable to net
--------------------
investment income, net short-term capital gain and certain other items realized
by a Fund and paid to a nonresident alien individual, foreign trust (i.e., trust
which a U.S. court is able to exercise primary supervision over administration
of that trust and one or more U.S. persons have authority to control substantial
decisions of that trust), foreign estate (i.e., the income of which is not
subject to U.S. tax regardless of source), foreign corporation, or foreign
partnership (each, a "foreign shareholder") will be subject to U.S. withholding
tax (at a rate of 30% or a lower treaty rate, if applicable). Withholding will
not apply if a distribution paid by the Fund to a foreign shareholder is
"effectively connected" with a U.S. trade or business (or, if an income tax
treaty applies, is attributable to a U.S. permanent establishment of the foreign
shareholder), in which case the reporting and withholding requirements
applicable to U.S. persons will apply. Capital gain distributions generally are
not subject to tax withholding.
New Regulations. On October 6, 1997, the Treasury Department issued new
---------------
regulations (the "New Regulations") which make certain modifications to the
backup withholding, U.S. income tax withholding and information reporting rules
applicable to foreign shareholders. The New Regulations will generally be
effective for payments made after December 31, 2000, subject to certain
transition rules. Among other things, the New Regulations will permit the Funds
to estimate the portion of their distributions qualifying as capital gain
distributions for purposes of determining the portion of such distributions paid
to foreign shareholders that will be subject to federal income tax withholding.
Prospective investors are urged to consult their own tax advisors regarding the
New Regulations.
Corporate Shareholders. Corporate shareholders of the Funds may be
----------------------
eligible for the dividends-received deduction on dividends distributed out of a
Fund's income attributable to dividends received from domestic corporations,
which, if received directly by the corporate shareholder, would qualify for such
deduction. A distribution by a Fund attributable to dividends of a domestic
corporation will only qualify for the dividends-received deduction if (i) the
corporate shareholder generally holds the Fund shares upon which the
distribution is made for at least 46 days during the 90 day period beginning 45
days prior to the date upon which the shareholder becomes entitled to the
distribution; and (ii) the Fund generally holds the shares of the domestic
corporation producing the dividend income for at least 46 days during the 90 day
period beginning 45 days prior to the date upon which the Fund becomes entitled
to such dividend income.
41
<PAGE>
Tax-Deferred Plan. The shares of the Funds are available for a variety of
-----------------
tax-deferred retirement and other plans, including Individual Retirement
Accounts ("IRA"), Simplified Employee Pension Plans ("SEP-IRA"), Savings
Incentive Match Plans for Employees ("SIMPLE plans"), Roth IRAs, and Education
IRAs, which permit investors to defer some of their income from taxes.
Investors should contact their selling agents for details concerning retirement
plans.
Other Matters. Investors should be aware that the investments to be made
-------------
by the Funds may involve sophisticated tax rules that may result in income or
gain recognition by the Funds without corresponding current cash receipts.
Although the Funds will seek to avoid significant noncash income, such noncash
income could be recognized by the Funds, in which case the Funds may distribute
cash derived from other sources in order to meet the minimum distribution
requirements described above.
The foregoing discussion and the discussions in the Prospectus applicable
to each shareholder address only some of the Federal tax considerations
generally affecting investments in the Funds. Each investor is urged to consult
his or her tax advisor regarding specific questions as to federal, state, local
or foreign taxes.
CAPITAL STOCK
The Funds are five of the funds in the Wells Fargo Funds Trust family of
funds. The Trust was organized as a Delaware business trust on March 10, 1999.
Most of the Trust's Funds are authorized to issue multiple classes of
shares, one class generally subject to a front-end sales charge and, in some
cases, classes subject to a contingent-deferred sales charge, that are offered
to retail investors. Certain of the Trust's Funds also are authorized to issue
other classes of shares, which are sold primarily to institutional investors.
Each class of shares in a Fund represents an equal, proportionate interest in a
fund with all other shares. Shareholders of each class bear their pro rata
portion of the Fund's operating expenses, except for certain class-specific
expenses (e.g., any state securities registration fees, shareholder servicing
fees or distribution fees that may be paid under Rule 12b-1) that are allocated
to a particular class. Please contact Shareholder Services at 1-800-222-8222 if
you would like additional information about other Funds or classes of shares
offered.
With respect to matters affecting one class but not another, shareholders
vote as a class; for example, the approval of a Plan. Subject to the foregoing,
all shares of a Fund have equal voting rights and will be voted in the
aggregate, and not by series, except where voting by a series is required by law
or where the matter involved only affects one series. For example, a change in
a Fund's fundamental investment policy affects only one series and would be
voted upon only by shareholders of the Fund involved. Additionally, approval of
an advisory contract, since it affects only one Fund, is a matter to be
determined separately by Series. Approval by the shareholders of one Series is
effective as to that Series whether or not sufficient votes are received from
the shareholders of the other Series to approve the proposal as to those Series.
As used in the Prospectus and in this SAI, the term "majority," when
referring to approvals to be obtained from shareholders of a Class of shares of
a Fund, means the vote of the
42
<PAGE>
lesser of (i) 67% of the shares of the Class represented at a meeting if the
holders of more than 50% of the outstanding shares of the Class are present in
person or by proxy, or (ii) more than 50% of the outstanding shares of the Class
of the Fund. The term "majority," when referring to approvals to be obtained
from shareholders of the Fund, means the vote of the lesser of (i) 67% of the
shares of the Fund represented at a meeting if the holders of more than 50% of
the outstanding shares of the Fund are present in person or by proxy, or (ii)
more than 50% of the outstanding shares of the Fund. The term "majority," when
referring to the approvals to be obtained from shareholders of the Trust as a
whole, means the vote of the lesser of (i) 67% of the Trust's shares represented
at a meeting if the holders of more than 50% of the Trust's outstanding shares
are present in person or by proxy, or (ii) more than 50% of the Trust's
outstanding shares.
Shareholders are not entitled to any preemptive rights. All shares are
issued in uncertificated form only, and, when issued, will be fully paid and
non-assessable by the Trust. The Trust may dispense with an annual meeting of
shareholders in any year in which it is not required to elect Trustees under the
1940 Act.
Each share of a class of a Fund represents an equal proportional interest
in the Fund with each other share of the same class and is entitled to such
dividends and distributions out of the income earned on the assets belonging to
the Fund as are declared in the discretion of the Trustees. In the event of the
liquidation or dissolution of the Trust, shareholders of a Fund are entitled to
receive the assets attributable to that Fund that are available for
distribution, and a distribution of any general assets not attributable to a
particular Fund or portfolio that are available for distribution in such manner
and on such basis as the Trustees in their sole discretion may determine.
Set forth below, as of May 25, 2000, is the name, address and share
ownership of each person known by the Trust to have beneficial or record
ownership of 5% or more of a class of a Fund or 5% or more of the voting
securities as a whole. The term "N/A" is used where a shareholder holds 5% or
more of a class, but less than 5% of a Fund as a whole.
5% OWNERSHIP AS OF MAY 25, 2000
-------------------------------
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
LIFEPATH OPPORTUNITY FUND
Class A Wells Fargo Bank Record 16.60% 12.57%
FBO Retirement Plans Omnibus
PO Box 63015
San Francisco, CA 94163-0001
Class B N/A
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
Class C MLPF&S For The Sole Benefit Of Its Record 9.54% 1.06%
Customers
ATTN: Mutual Fund Administration
4800 Deer Lake Drive East, 3rd
Floor
Jacksonville, FL 32246-6484
Dean Witter For The Benefit of Record 7.75% 0.86%
Mario Crivello, Trustee FBO
Sam and Isabella Crivello
PO Box 250 Church Street Station
New York, NY 10008-0250
Institutional Class Norwest Bank Minnesota N.A. FBO Record 96.10% 1.26%
WO LifePath Off Fund R/R
P.O. Box 1835
Minneapolis, MN 55480-1533
LIFEPATH 2010 FUND
Class A Wells Fargo Bank, N.A. Record 22.62% 15.73%
FBO Retirement Plans Omnibus
PO Box 63015
San Francisco, CA 94163-0001
Class B N/A
Class C Dean Witter For The Benefit of Record 6.56% 0.30%
Land Concern Ltd.
PO Box 250 Church Street Station
New York, NY 10008-0250
Dean Witter For The Benefit of Record 8.17% 0.37%
Wells Fargo Bank Loan
Collateral
PO Box 250 Church Street Station
New York, NY 10008-0250
NFSC FEBO #CM5-600741 Record 5.21% 0.24%
David Lazer P/ADM
David Lazer Inc. Empl. Ret. Tr.
PO Box 1056
Southampton, NY 11969-1056
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
EMJAYCO Record 9.55% 0.43%
Omnibus Account, FBO
P.O. Box 17909
Milwaukee, WI 53217-0909
Institutional Class Norwest Bank MN N.A. FBO Record 97.42% 1.53%
WF LifePath 2010 R/R
P.O. Box 1533
Minneapolis, MN 55480-1533
LIFEPATH 2020 FUND
Class A Wells Fargo Bank, N.A. Record 22.49% 16.90%
FBO Retirement Plans Omnibus
PO Box 63015
San Francisco, CA 94163-0001
Class B N/A
Class C Dean Witter For The Benefit of Record 5.32% 0.09%
Richard Branning
PO Box 250 Church Street Station
New York, NY 10008-0250
Dean Witter For The Benefit of Record 5.31% 0.09%
Robert W. Simpson TTEE
PO Box 250 Church Street Station
New York, NY 10008-0250
EMJAYCO Record 5.31% 0.09%
Omnibus Account, FBO
P.O. Box 17909
Milwaukee, WI 53217-0909
EMJAYCO Record 21.98% 0.49%
Omnibus Account, FBO
P.O. Box 17909
Milwaukee, WI 53217-0909
Institutional Class EMSEO & Co. Record 75.55% 1.69%
Wells Fargo LifePath 2020 Fund CL I
P.O. Box 1450 NW 8477
Minneapolis, MN 88485-1450
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
LIFEPATH 2030 FUND
Class A Wells Fargo Bank, N.A. Record 25.61% 19.77%
FBO Retirement Plans Omnibus
PO Box 63015
San Francisco, CA 94163-0001
Class B N/A
Class C Terry E. Hedemark & Susan C. Beneficial 6.55% 0.07%
Hedemark JTTEN
3248 Catawba Dr.
Cameron Park, CA 95682-7643
EMJAYCO Record 40.48% 0.42%
Omnibus Account
PO Box 17909
Milwaukee, WI 53217-0909
Dean Witter for the Benefit of Record 5.10% 0.05%
David Man LY
PO Box 250 Church Street Station
New York, NY 10008-0250
EMJAYCO Record 39.76% 0.45%
Omnibus Account
17909 P.O. Box
Milwaukee, MI 53217-0909
Institutional Class Norwest Bank MN N.A. FBO Record 57.91% 0.66%
WF LifePath 2030 R/R
P.O. Box 1533
Minneapolis, MN 58480-1533
LIFEPATH 2040 FUND
Class A Wells Fargo Bank, N.A. Record 27.56% 20.14%
FBO Retirement Plans Omnibus
PO Box 63015
San Francisco, CA 94163-0001
Wells Fargo Bank, N.A. TTEE Record 5.06% 3.70%
FBO National Benefit
Retirement Plans
P.O. Box 9800
Calabasis, CA 91372
Class B N/A
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
Class C Dean Witter for the Benefit of Record 11.13% 0.20%
Cynthia Genera Orlandi TTEE of TI
PO Box 250 Church Street Station
New York, NY 10008-0250
MLPF&S for The Benefit Record 5.59% 0.10%
of its Customers
Attn: Mutual Fund Administrators
4800 Deer Lake Drive East
3rd Floor
Jacksonville, FL 32246-6484
EMJAYCO Record 8.26% 0.15%
Omnibus Account
P.O. Box 17909
Milwaukee, WI 53217-0909
Dean Witter for the Benefit of Record 11.13% 0.20%
Paolo Orlandi TTEE
P.O. Box 250 Church Street Station
New York, NY 10008-250
Norwest Bank MN N.A. FBO Record 61.99% 0.23%
WF LifePath 2040 R/R
Attn: Mutual Fund OPS
P.O. Box 1533
Minneapolis, MN 55480-1533
Wells Fargo Bank N.A. FBO Record 9.88% 0.04%
NBRP/Middlesex A/C 4300415001
P.O. Box 9800 MAC E2141-028
Calabasas, CA 91372-0800
Institutional Class EMJAYCO Record 13.05% 0.05%
Omnibus Account, FBO
17909 P.O. Box
Milwaukee, WI 53217-0909
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
Type of Percentage Percentage
Fund Name and Address Ownership of Class of Fund
---- ---------------- --------- -------- -------
<S> <C> <C> <C> <C>
Hep & Co. Record 12.27% 0.05%
FBO Wells Fargo Bank
Mutual Funds MAC 2141-028
9800 P.O. Box
Calabasas, CA 91372-0800
</TABLE>
For purposes of the 1940 Act, any person who owns directly or through one
or more controlled companies more than 25% of the voting securities of a company
is presumed to "control" such company. Accordingly, to the extent that a
shareholder identified in the foregoing table is identified as the beneficial
holder of more than 25% of a class (or Fund), or is identified as the holder of
record of more than 25% of a class (or Fund) and has voting and/or investment
powers, it may be presumed to control such class (or Fund).
OTHER
The Trust's Registration Statement, including the Prospectus and SAI for
the Funds and the exhibits filed therewith, may be examined at the office of the
U.S. Securities and Exchange Commission in Washington, D.C. Statements contained
in the Prospectus or the SAI as to the contents of any contract or other
document referred to herein or in the Prospectus are not necessarily complete,
and, in each instance, reference is made to the copy of such contract or other
document filed as an exhibit to the Registration Statement, each such statement
being qualified in all respects by such reference.
COUNSEL
Morrison & Foerster LLP, 2000 Pennsylvania Avenue, N.W., Suite 5500,
Washington, D.C. 20006, as counsel for the Trust, has rendered its opinion as to
certain legal matters regarding the due authorization and valid issuance of the
shares of beneficial interest being sold pursuant to the Funds' Prospectus.
INDEPENDENT AUDITORS
KPMG LLP has been selected as the independent auditors for the Trust. KPMG
LLP provides audit services, tax return preparation and assistance and
consultation in connection with review of certain SEC filings. KPMG LLP's
address is Three Embarcadero Center, San Francisco, California 94111.
48
<PAGE>
FINANCIAL INFORMATION
The portfolios of investments, financial statements, financial highlights
and independent auditors report for the LifePath Opportunity, LifePath 2010,
LifePath 2020, LifePath 2030 and LifePath 2040 Funds and their corresponding
Master Portfolios for the year ended February 29, 2000, are hereby incorporated
by reference to the Funds' Annual Report.
49
<PAGE>
APPENDIX
The following is a description of the ratings given by Moody's and S&P to
corporate and municipal bonds, municipal notes, and corporate and municipal
commercial paper.
Corporate Bonds
---------------
Moody's: The four highest ratings for corporate bonds are "Aaa," "Aa," "A"
-------
and "Baa." Bonds rated "Aaa" are judged to be of the "best quality" and carry
the smallest amount of investment risk. Bonds rated "Aa" are of "high quality by
all standards," but margins of protection or other elements make long-term risks
appear somewhat greater than "Aaa" rated bonds. Bonds rated "A" possess many
favorable investment attributes and are considered to be upper medium grade
obligations. Bonds rated "Baa" are considered to be medium grade obligations;
interest payments and principal security appear adequate for the present, but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well. Moody's
also applies numerical modifiers in its rating system: 1, 2 and 3 in each rating
category from "Aa" through "Baa" in its rating system. The modifier 1 indicates
that the security ranks in the higher end of its category; the modifier 2
indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks
in the lower end.
S&P: The four highest ratings for corporate and municipal bonds are "AAA,"
---
"AA," "A" and "BBB." Bonds rated "AAA" have the "highest rating" assigned by S&P
and have "an extremely strong capacity" to pay interest and repay principal.
Bonds rated "AA" have a "very strong capacity" to pay interest and repay
principal and "differ from the highest rated obligations only in small degree."
Bonds rated "A" have a "strong capacity" to pay interest and repay principal,
but are "somewhat more susceptible" to adverse effects of changes in economic
conditions or other circumstances than bonds in higher rated categories. Bonds
rated "BBB" are regarded as having "adequate protection parameters" to pay
interest and repay principal, but changes in economic conditions or other
circumstances are more likely to lead to a "weakened capacity" to make such
repayments. The ratings from "AA" to "BBB" may be modified by the addition of a
plus or minus sign to show relative standing within the category.
Commercial Paper
----------------
Moody's: The highest rating for commercial paper is "P-1" (Prime-1).
--------
Issuers rated "P-1" have a "superior ability for repayment of senior short-term
debt obligations." Issuers rated "P-2" (Prime-2) "have a strong capacity for
repayment of senior short-term debt obligations," but earnings trends, while
sound, will be subject to more variation.
A-1
<PAGE>
S&P: The "A-1" rating for commercial paper is rated "in the highest
---
category" by S&P and "the obligor's capacity to meet its financial commitment on
the obligation is strong." The "A-1+" rating indicates that said capacity is
"extremely strong." The A-2 rating indicates that said capacity is
"satisfactory," but that corporate and municipal commercial paper rated "A-2" is
"more susceptible" to the adverse effects of changes in economic conditions or
other circumstances than commercial paper rated in higher rating categories.
A-2
<PAGE>
WELLS FARGO FUNDS TRUST
File Nos. 333-74295; 811-09253
PART C
OTHER INFORMATION
Item 23. Exhibits.
--------
Exhibit
Number Description
------ -----------
(a) - Amended and Restated Declaration of Trust,
incorporated by reference to Post-Effective
Amendment No. 8, filed December 17, 1999.
(b) - Not applicable.
(c) - Not applicable.
(d)(1)(i) - Investment Advisory Agreement with Wells Fargo
Bank, N.A., incorporated by reference to Post-
Effective Amendment No. 8, filed December 17,
1999.
(ii) - Fee and Expense Agreement between Wells Fargo
Funds Trust and Wells Fargo Bank, N.A.
(2)(i) - Sub-Advisory Contract with Barclays Global Fund
Advisors, incorporated by reference to Post-
Effective Amendment No. 8, filed December 17,
1999.
(ii) - Sub-Advisory Contract with Galliard Capital
Management, Inc., incorporated by reference to
Post-Effective Amendment No. 8, filed December
17, 1999.
(iii) - Sub-Advisory Contract with Peregrine Capital
Management, Inc., incorporated by reference to
Post-Effective Amendment No. 8, filed December
17, 1999.
(iv) - Sub-Advisory Contract with Schroder Investment
Management North America Inc., incorporated by
reference to Post-Effective Amendment No. 8,
filed December 17, 1999.
(v) - Sub-Advisory Contract with Smith Asset Management
Group, L.P., incorporated by reference to Post-
Effective Amendment No. 10, filed May 10, 2000.
C-1
<PAGE>
(vi) - Form of Sub-Advisory Contract with Wells Capital
Management Incorporated, incorporated by
reference to Post-effective Amendment No. 1,
filed May 28, 1999.
(e)(i) - Form of Distribution Agreement along with Form of
Selling Agreement, incorporated by reference to
Post-effective Amendment No. 1, filed May 28,
1999.
(ii) - Distribution Plan, incorporated by reference to
Post-Effective Amendment No. 8, filed December
17, 1999.
(f) - Not applicable.
(g)(1) - Custody Agreement with Barclays Global Investors,
N.A., incorporated by reference to Post-Effective
Amendment No. 8, filed December 17, 1999.
(2) - Custody Agreement with Norwest Bank Minnesota,
N.A., incorporated by reference to Post-Effective
Amendment No. 8, filed December 17, 1999.
(3) - Securities Lending Agreement by and among Wells
Fargo Funds Trust, Wells Fargo Bank, N.A. and
Norwest Bank Minnesota, N.A., incorporated by
reference to Post-Effective Amendment No. 8,
filed December 17, 1999.
(h)(1) - Administration Agreement with Wells Fargo Bank,
N.A., incorporated by reference to Post-Effective
Amendment No. 8, filed December 17, 1999.
(2)(i) - Fund Accounting Agreement, incorporated by
reference to Post-Effective Amendment No. 9,
filed February 1, 2000.
(3) - Transfer Agency and Service Agreement with Boston
Financial Data Services, Inc., incorporated by
reference to Post-Effective Amendment No. 8,
filed December 17, 1999.
(4) - Shareholder Servicing Plan, incorporated by
reference to Post-Effective Amendment No. 8,
filed December 17, 1999.
(5) - Form of Shareholder Servicing Agreement,
incorporated by reference to Post-Effective
Amendment No. 8, filed December 17, 1999.
(i) - Legal Opinion, filed herewith.
C-2
<PAGE>
(j) - Consent of Independent Auditors, filed herewith.
(j)(1) - Power of Attorney, Robert C. Brown, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(2) - Power of Attorney, Donald H. Burkhardt,
incorporated by reference to Post-Effective
Amendment No. 10, filed May 10, 2000.
(3) - Power of Attorney, Jack S. Euphrat, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(4) - Power of Attorney, Thomas S. Goho, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(5) - Power of Attorney, Peter G. Gordon, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(6) - Power of Attorney, W. Rodney Hughes, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(7) - Form of Power of Attorney, Richard M. Leach,
incorporated by reference to Post-Effective
Amendment No. 10, filed May 10, 2000.
(8) - Power of Attorney, J. Tucker Morse, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(9) - Power of Attorney, Timothy J. Perry, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(10) - Power of Attorney, Donald C. Willeke,
incorporated by reference to Post-Effective
Amendment No. 10, filed May 10, 2000.
(11) - Power of Attorney, Michael J. Hogan, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
C-3
<PAGE>
(12) - Power of Attorney, Karla M. Rabusch, incorporated
by reference to Post-Effective Amendment No. 10,
filed May 10, 2000.
(k) - Not applicable.
(l) - Not applicable.
(m) - Rule 12b-1 Plan, incorporated by reference to
Post-effective Amendment No. 8, filed December
17, 1999.
(n) - Rule 18f-3 Plan, incorporated by reference to
Post-Effective Amendment No. 8, filed December
17, 1999.
(p) - Code of Ethics, incorporated by reference to
Post-Effective Amendment No. 10, filed May 10,
2000.
Item 24. Persons Controlled by or Under Common Control with the Fund.
-----------------------------------------------------------
Registrant believes that no person is controlled by or under common
control with Registrant.
Item 25. Indemnification.
---------------
Article V of the Registrant's Declaration of Trust limits the liability
and, in certain instances, provides for mandatory indemnification of the
Registrant's trustees, officers, employees, agents and holders of beneficial
interests in the Trust. In addition, the Trustees are empowered under Section
3.9 of the Registrant's Declaration of Trust to obtain such insurance policies
as they deem necessary.
Item 26. Business and Other Connections of Investment Adviser.
----------------------------------------------------
(a) Wells Fargo Bank, N.A. ("Wells Fargo Bank"), a wholly-owned
subsidiary of Wells Fargo & Company, serves as investment adviser to all of the
Registrant's investment portfolios, and to certain other registered open-end
management investment companies. Wells Fargo Bank's business is that of a
national banking association with respect to which it conducts a variety of
commercial banking and trust activities.
To the knowledge of Registrant, none of the directors or executive
officers of Wells Fargo Bank is or has been at any time during the past two
fiscal years engaged in any other business, profession, vocation or employment
of a substantial nature, except
C-4
<PAGE>
that certain executive officers also hold various positions with and engage in
business for Wells Fargo & Company and/or its subsidiaries.
(b) Barclays Global Fund Advisors ("BGFA"), a wholly-owned subsidiary
of Barclays Global Investors, N.A. ("BGI"), serves as an adviser or sub-adviser
to various Funds of the Trust and as adviser or sub-adviser to certain other
open-end management investment companies. The description of BGFA in Parts A
and B of this Registration Statement is incorporated by reference herein. The
directors and officers of BGFA also serve as directors or officers of BGI. To
the knowledge of the Registrant, none of the directors or executive officers of
BGFA is or has been at any time during the past two fiscal years engaged in any
other business, profession, vocation or employment of a substantial nature.
(c) Wells Capital Management Incorporated ("WCM"), a wholly-owned
subsidiary of Wells Fargo Bank, N.A., serves as sub-adviser to various Funds of
the Trust. The description of WCM in Parts A and B of this Registration
Statement is incorporated by reference in Parts A and B of this Registration
Statement is incorporated by reference herein. None of the directors and
principal executive officers of WCM serves, or has served in the past two fiscal
years, in such capacity for any other entity.
(d) Peregrine Capital Management, Inc., an indirect wholly-owned
subsidiary of Wells Fargo & Company, serves as sub-adviser to various Funds of
the Trust. The description of Peregrine Capital Management, Inc. ("Peregrine")
in Parts A and B of the Registration Statement, is incorporated by reference
herein. To the knowledge of the Registrant, none of the directors or executive
officers of this sub-adviser is or has been at any time during the last two
fiscal years engaged in any other business, profession, vocation or employment
of a substantial nature.
(e) Schroder Investment Management North America Inc., serves as sub-
adviser to various Funds of the Trust. The description of Schroder Investment
Management North America Inc. ("SIMNA") in Parts A and B of the Registration
Statement are incorporated by reference herein. The address is 787 Seventh
Avenue, 34th Floor, New York, NY 10019. Schroder Capital Management
International Limited ("Schroder Ltd.") is a United Kingdom affiliate of SIMNA
which provides investment management services to international clients located
principally in the United States. Schroder Ltd. and Schroders p.l.c. are
located at 31 Gresham St., London ECZV 7QA, United Kingdom. To the knowledge of
the Registrant, none of the directors or executive officers of this sub-adviser
is or has been at any time during the last two fiscal years engaged in any other
business, profession, vocation or employment of a substantial nature.
(f) Galliard Capital Management, Inc., an indirect, wholly-owned
subsidiary of Wells Fargo & Company serves as sub-adviser to various Funds of
the Trust. The descriptions of Galliard Capital Management, Inc. ("Galliard")
in Parts A and B of the Registration Statement, are incorporated by reference
herein. The address of Galliard is LaSalle Plaza, Suite 2060, 800 LaSalle
Avenue, Minneapolis, Minnesota
C-5
<PAGE>
55479. To the knowledge of the Registrant, none of the directors or executive
officers of this sub-adviser is or has been at any time during the last two
fiscal years engaged in any other business, profession, vocation or employment
of a substantial nature.
(g) Smith Asset Management, L.P., an indirect, partially-owned
subsidiary of Wells Fargo & Company serves as sub-adviser to various Funds of
the Trust. The descriptions of Smith Asset Management, L.P. ("Smith") in Parts
A and B, of the Registration Statement, are incorporated by reference herein.
The address of Smith is 300 Crescent Court, Suite 750, Dallas, Texas 75201. To
the knowledge of the Registrant, none of the directors or executive officers of
this sub-adviser is or has been at any time during the last two fiscal years
engaged in any other business, profession, vocation or employment of a
substantial nature.
Item 27. Principal Underwriters.
----------------------
(a) Stephens Inc. ("Stephens"), distributor for the Registrant, does
not presently act as investment adviser for any other registered investment
companies, but does act as principal underwriter for Barclays Global Funds Inc.,
Nations Fund, Inc., Nations Fund Trust, Nations Fund Portfolios, Inc., Nations
LifeGoal Funds, Inc. and Nations Institutional Reserves, and Wells Fargo
Variable Trust, Wells Fargo Core Trust and Wells Fargo Funds Trust and is the
exclusive placement agent for Master Investment Portfolio, all of which are
registered open-end management investment companies.
(b) Information with respect to each director and officer of the
principal underwriter is incorporated by reference to Form ADV and Schedules A
and D thereto, filed by Stephens with the Securities and Exchange Commission
pursuant to the Investment Advisers Act of 1940 (file No. 501-15510).
(c) Not applicable.
Item 28. Location of Accounts and Records.
--------------------------------
(a) The Registrant maintains accounts, books and other documents
required by Section 31(a) of the Investment Company Act of 1940 and the rules
thereunder (collectively, "Records") at the offices of Stephens Inc., 111 Center
Street, Little Rock, Arkansas 72201.
(b) Wells Fargo Bank maintains all Records relating to its services
as investment adviser and administrator at 525 Market Street, San Francisco,
California 94105.
(c) BGFA and BGI maintain all Records relating to their services as
sub-adviser and custodian, respectively, at 45 Fremont Street, San Francisco,
California 94105.
C-6
<PAGE>
(d) Stephens maintains all Records relating to its services as
distributor at 111 Center Street, Little Rock, Arkansas 72201.
(e) Norwest Bank Minnesota, N.A. maintains all Records relating to
its services as custodian at 6th & Marquette, Minneapolis, Minnesota 55479-0040.
(f) Wells Capital Management Incorporated maintains all Records
relating to its services as investment sub-adviser at 525 Market Street, San
Francisco, California 94105.
(g) Peregrine Capital Management, Inc. maintains all Records relating
to its services as investment sub-adviser at 800 LaSalle Avenue, Minneapolis,
Minnesota 55479.
(h) Galliard Capital Management, Inc. ("Galliard") maintains all
Records relating to its services as investment sub-adviser at 800 LaSalle
Avenue, Suite 2060, Minneapolis, Minnesota 55479.
(i) Smith Asset Management Group, LP maintains all Records relating
to its services as investment sub-adviser at 500 Crescent Court, Suite 250,
Dallas, Texas 75201.
(j) Schroder Investment Management North America Inc. maintains all
Records relating to its services as investment sub-adviser at 787 Seventh
Avenue, New York, New York 10019.
Item 29. Management Services.
-------------------
Other than as set forth under the captions "Organization and Management
of the Funds"" in the Prospectus constituting Part A of this Registration
Statement and "Management" in the Statement of Additional Information
constituting Part B of this Registration Statement, the Registrant is not a
party to any management-related service contract.
Item 30. Undertakings. Not applicable.
------------
C-7
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement on Form N-1A pursuant to Rule 485(b) under the Securities Act of 1933,
and has duly caused this Amendment to its Registration Statement to be signed on
its behalf by the undersigned, thereto duly authorized in the City of San
Francisco, State of California on the 1st day of July, 2000.
WELLS FARGO FUNDS TRUST
By: /s/ Dorothy A. Peters
--------------------------
Dorothy A. Peters
Assistant Secretary
Pursuant to the requirements of the Securities Act of 1933, this Post-
Effective Amendment No. 12 to its Registration Statement on Form N-1A has been
signed below by the following persons in the capacities and on the date
indicated:
Signature Title Date
--------- ----- ----
* Trustee
---------------------------
Robert C. Brown
* Trustee
---------------------------
Donald H. Burkhardt
* Trustee
---------------------------
Jack S. Euphrat
* Trustee
---------------------------
Thomas S. Goho
* Trustee
---------------------------
Peter G. Gordon
* Trustee
---------------------------
W. Rodney Hughes
* Trustee
---------------------------
Richard M. Leach
* Trustee
---------------------------
J. Tucker Morse
* Trustee
---------------------------
Timothy J. Penny
* Trustee 07/01/2000
---------------------------
Donald C. Willeke
*By: /s/ Dorothy A. Peters
----------------------
Dorothy A. Peters
As Attorney-in-Fact
July 1, 2000
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Investment Company Act of 1940, the
Registrant has duly caused this Amendment to its Registration Statement on Form
N-1A to be signed on its behalf by the undersigned, thereto duly authorized in
the City of Little Rock, State of Arkansas on the 1st day of July, 2000.
WELLS FARGO CORE TRUST
By /s/ Dorothy A. Peters
----------------------
Dorothy A. Peters
Assistant Secretary
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to its Registration Statement on Form N-1A has been signed below by the
following persons in the capacities and on the date indicated:
Signature Title Date
--------- ----- ----
* Trustee
-----------------------
(Robert C. Brown)
* Trustee
-----------------------
(Jack S. Euphrat)
* Trustee
-----------------------
(Thomas S. Goho)
* Trustee
-----------------------
(Peter Gordon)
* Trustee
-----------------------
(W. Rodney Hughes)
* Trustee
-----------------------
(J. Tucker Morse)
* Trustee
-----------------------
(Donald H. Burkhardt)
* Trustee
-----------------------
(Richard M. Leach)
* Trustee
-----------------------
(Timothy J. Penny)
* Trustee
-----------------------
(Donald C. Willeke)
By /s/ Dorothy A. Peters 07/01/00
----------------------
Dorothy A. Peters
As Attorney-in-Fact
July 1, 2000
<PAGE>
WELLS FARGO FUNDS TRUST
FILE NOS. 333-74295; 811-09253
EXHIBIT INDEX
Exhibit Number Description
EX-99.B(i) Opinion and Consent of Counsel
EX-99.B(j) Consent of Independent Auditors
