<PAGE>
WELLS
FARGO
FUNDS
Annual Report
O V E R L A N D E X P R E S S S W E E P F U N D
March 31, 2000
[GRAPHIC]
<PAGE>
OVERLAND EXPRESS SWEEP FUND
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TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS.........................................................2
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PORTFOLIO OF INVESTMENTS.......................................................4
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FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES..........................................7
STATEMENT OF OPERATIONS......................................................8
STATEMENTS OF CHANGES IN NET ASSETS..........................................9
FINANCIAL HIGHLIGHTS........................................................10
NOTES TO FINANCIAL STATEMENTS.................................................12
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INDEPENDENT AUDITORS' REPORT..................................................15
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LIST OF ABBREVIATIONS.........................................................16
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
OVERLAND EXPRESS SWEEP FUND
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DEAR VALUED SHAREHOLDER,
For investors, the past year was unpredictable. It was a period characterized
by rapidly shifting markets and unprecedented volatility.
During the 12-month period ended March 31, 2000, blue chip stocks soared to a
record high, only to surrender their gains following a series of interest rate
hikes that sent the Dow Jones Industrial Average (the "Dow") into a tailspin.
After a March rally, the Dow recovered most of its losses, yet still remained
down for the year.
In contrast, the Nasdaq Composite Index shattered the 5,000 barrier led by
the turbocharged performance of technology stocks -- particularly genetics,
semiconductor and communications stocks. Technology reigned for several
months, while all other sectors scrambled for attention. That changed when the
technology bubble burst in late March, sparking a sell-off that pounded
speculative issues and left many investors concerned about the viability of
many "New Economy" stocks.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Concerned about the potential for a run-up in inflation, the Federal Reserve
Board (the "Fed") chose to raise interest rates five times over the fiscal
year, with each hike coming in 0.25% increments. Rising interest rates have
helped the Fund's investors capture additional yields on the short-term
securities within each portfolio. And, because we believe that the Fed may be
planning additional rate increases in coming months, our fund managers
presently intend to keep the average maturity of their portfolios relatively
short to take advantage of higher yields.
At the same time, our money market funds, which maintained their $1 per share
price throughout the period, continued to provide investors with a safe,
stable and convenient place to hold cash while evaluating other potential
investment opportunities.
INVESTING IN AN UPSIDE-DOWN MARKET
--------------------------------------------------------------------------------
With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
uncertainty? The first thing to remember is to think long term. Over time, the
market will regain its balance.
More importantly, investors should stick with a clearly defined strategy of
buying and holding a diversified portfolio of stocks, bonds and cash. If you
adhere to your long-term strategy, you won't be as vulnerable to a downturn in
one sector. Chances are that your overall returns will be more steady over
time as well. The fact is, diversification is an effective strategy that
investors can use to their advantage in virtually any market environment.
In closing, thank you for investing with Wells Fargo Funds. With 61 mutual
funds and more than $61 billion in mutual fund assets (as of February 29,
2000), we offer a complete array of mutual funds designed to meet most any
investor need -- in any market environment.
Sincerely,
<TABLE>
<S> <C>
/s/ MICHAEL J. HOGAN /s/ W. RODNEY HUGHES
MICHAEL J. HOGAN W. RODNEY HUGHES
EXECUTIVE VICE PRESIDENT, PRESIDENT,
WELLS FARGO BANK, N.A. WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
OVERLAND EXPRESS SWEEP FUND PERFORMANCE HIGHLIGHTS
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OVERLAND EXPRESS SWEEP FUND
INVESTMENT OBJECTIVE
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The Wells Fargo Overland Express Sweep Fund (the "Fund") seeks to provide
investors with a high level of current income, while preserving capital and
liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGER
Michael Neitzke
INCEPTION DATE
10/01/91
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund underperformed its benchmark, the 90-Day Treasury Bill(1), for the
year ending March 31, 2000, with a return of 4.32%(2) versus 5.27% for the
benchmark.
Rising interest rates, however, contributed to the Fund's performance. During
the past year the Federal Reserve Board raised short-term interest rates five
times -- with each rate increase coming in 0.25% increments -- to offset
inflationary pressures and curb the nation's fast-growing economy. Over the
year, the Federal Funds Rate, the most sensitive indicator of the direction of
interest rates, increased from 4.75% to 6%.
The series of rate hikes also sent yields on short-term securities higher,
which created opportunities to add yields to the portfolio. And as rates rose,
the Fund's management team also selectively invested in longer-term securities
to capture increasingly higher yields. They achieved these favorable results
while maintaining a core position among securities that mature within a one-
to three-month range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the Fund's
management team will continue to take advantage of higher-yielding, short-term
securities and purchase longer-term securities that offer attractive values.
However, the Fund is consistently managed to maintain a stable asset value of
$1 per share given any level of volatility.
2
<PAGE>
PERFORMANCE HIGHLIGHTS OVERLAND EXPRESS SWEEP FUND
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AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
OVERLAND EXPRESS SWEEP FUND 2.31 4.32 4.41 3.75
BENCHMARK
LIPPER MONEY MARKET FUNDS
AVERAGE(3) 2.50 4.72 4.93
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 4.92%
7-DAY COMPOUND YIELD 5.03%
30-DAY SIMPLE YIELD 4.82%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 63 DAYS
NUMBER OF HOLDINGS 81
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 47%
Certificate of Deposits 24%
Short-Term Corporate Bonds 15%
Repurchase Agreements 8%
Floating and Variable Rate Bonds 6%
</TABLE>
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Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. These reductions may be discontinued
at any time after November 2000.
Performance shown for the Wells Fargo Overland Express Sweep Fund for the
periods prior to November 8, 1999, reflects performance of the Stagecoach
Overland Express Sweep Fund, its predecessor fund. Effective at the close of
business November 5, 1999 the Stagecoach Funds and the Norwest Advantage Funds
were reorganized into the Wells Fargo Funds. Performance shown for periods prior
to December 15, 1997, reflects performance of the Overland Sweep Fund, a
predecessor fund.
(3) Source: Lipper Analytical Services, Inc. The Lipper Money Market Funds
average is an average of funds that invest in high quality financial instruments
rated in the top two grades with dollar-weighted average maturities of less than
90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
3
<PAGE>
OVERLAND EXPRESS SWEEP FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
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OVERLAND EXPRESS SWEEP FUND
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<TABLE>
<CAPTION>
PRINCIPAL SECURITY DESCRIPTION INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 5.81%
$ 53,500,000 BEAR STEARNS 6.19% 03/29/01 $ 53,500,000
72,500,000 J.P. MORGAN & COMPANY 5.99 03/16/01 72,500,000
98,500,000 MORGAN STANLEY DEAN WITTER 6.00 03/16/01 98,500,000
TOTAL VARIABLE AND FLOATING RATE BONDS (COST $224,500,000) 224,500,000
--------------
COMMERCIAL PAPER - 47.46%
40,500,000 AEGON FUNDING 6.46{::} 09/25/00 39,259,688
100,000,000 AQUINAS FUNDING 4.23{::} 04/03/00 100,000,000
74,103,000 ATLANTIS ONE FUNDING 5.79{::} 05/09/00 73,665,051
46,000,000 ATLANTIS ONE FUNDING 5.80{::} 05/10/00 45,720,588
30,000,000 ATLANTIS ONE FUNDING 5.87{::} 05/17/00 29,781,833
80,000,000 BANK OF AMERICA CORPORATION 5.89{::} 05/23/00 79,338,889
100,000,000 CITIGROUP 5.02{::} 04/06/00 99,949,833
35,000,000 COMMERZBANK USA 5.82{::} 05/17/00 34,747,611
22,000,000 COMPASS SECURITIZATION 4.41{::} 04/04/00 21,996,407
25,000,000 COMPASS SECURITIZATION 5.50{::} 04/13/00 24,958,681
50,000,000 COMPASS SECURITIZATION 5.87{::} 04/25/00 49,813,917
120,000,000 CONCORD MINUTE "B" 4.84{::} 04/05/00 119,959,733
46,265,000 FALCON ASSET SECURITIZATION 5.39{::} 04/11/00 46,204,136
44,813,000 FALCON ASSET SECURITIZATION 5.44{::} 04/12/00 44,746,677
75,000,000 GENERAL ELECTRIC CAPITAL CORPORATION 5.25{::} 04/10/00 74,914,979
50,000,000 GENERAL ELECTRIC CAPITAL CORPORATION 5.85{::} 04/27/00 49,798,333
20,000,000 GOLDMAN SACHS GROUP INCORPORATED LP 5.81{::} 05/10/00 19,878,311
25,000,000 GRAND FUNDING 5.94{::} 05/02/00 24,877,153
75,000,000 GREYHAWK FUNDING 5.82{::} 05/16/00 74,470,563
50,000,000 GREYHAWK FUNDING 5.84{::} 05/15/00 49,654,083
50,000,000 IRISH PERM 5.82{::} 05/11/00 49,687,028
50,000,000 J.P. MORGAN & COMPANY 5.82{::} 05/18/00 49,631,250
25,000,000 KBC 5.06{::} 04/07/00 24,983,611
49,426,000 LEXINGTON PARKER CAPITAL CORPORATION 4.83{::} 04/05/00 49,409,442
50,000,000 LEXINGTON PARKER CAPITAL CORPORATION 5.90{::} 05/26/00 49,562,014
30,050,000 NATIONAL RURAL UTILITIES 6.23{::} 09/22/00 29,177,081
90,000,000 NEPTUNE FUNDING CORPORATION 5.79{::} 04/20/00 89,741,600
26,463,000 PERRY IV FUNDING 5.62{::} 04/17/00 26,401,665
16,946,000 RECEIVABLES CAPITAL CORPORATION 5.53{::} 04/14/00 16,915,243
75,000,000 SALOMON SMITH BARNEY 5.77{::} 05/05/00 74,606,000
29,825,000 SHEFFIELD RECEIVABLES CORPORATION 4.02{::} 04/03/00 29,825,000
15,000,000 SIGMA FINANCE INCORPORATED 5.89{::} 05/23/00 14,876,042
9,500,000 SPECIAL PURPOSE A/R CORPORATION 6.02{::} 05/19/00 9,425,953
19,655,000 SYDNEY CAPITAL 5.50{::} 04/13/00 19,622,515
22,241,000 SYDNEY CAPITAL 5.80{::} 05/03/00 22,130,722
40,000,000 THAMES ASSET GLOBAL SECURITIZATION INCORPORATED 5.59{::} 04/14/00 39,926,544
53,933,000 THAMES ASSET GLOBAL SECURITIZATION INCORPORATED 5.81{::} 05/10/00 53,604,848
30,500,000 TRIDENT CAPITAL 5.80{::} 05/11/00 30,309,731
50,000,000 VARIABLE FUNDING 4.41{::} 04/04/00 49,991,833
TOTAL COMMERCIAL PAPER (COST $1,833,564,588) 1,833,564,588
--------------
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 OVERLAND EXPRESS SWEEP FUND
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OVERLAND EXPRESS SWEEP FUND
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<TABLE>
<CAPTION>
PRINCIPAL SECURITY DESCRIPTION INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES - 14.71%
$ 30,000,000 BANK OF AMERICA CORPORATION 6.16% 04/05/00 $ 29,999,935
25,000,000 BETA FINANCE INCORPORATED 6.15 10/06/00 25,000,000
20,000,000 BETA FINANCE INCORPORATED 6.77 03/15/01 20,000,000
40,000,000 BETA FINANCE INCORPORATED 6.82 02/15/01 40,000,000
32,000,000 CC USA 6.77 03/15/01 32,000,000
30,000,000 CC USA 6.79 03/15/01 30,000,000
36,500,000 COMERICA BANK 5.94 01/12/01 36,488,847
35,000,000 DEUTSCHE BANK AG 6.07 10/10/00 34,992,177
50,000,000 DEUTSCHE BANK AG 6.14 04/17/00 49,998,878
18,500,000 DORADA FINANCE 6.77 03/15/01 18,500,000
40,000,000 GOLDMAN SACHS GROUP INCORPORATED 6.00 08/07/00 40,000,000
60,000,000 GOLDMAN SACHS GROUP INCORPORATED 6.07 09/01/00 60,000,000
10,000,000 GOLDMAN SACHS GROUP INCORPORATED 6.50 12/22/00 10,000,000
17,500,000 IBM CREDIT CORPORATION 5.27 04/07/00 17,499,866
33,500,000 MARSHALL & ILSLEY CORPORATION 6.81 03/21/01 33,500,000
25,000,000 SIGMA FINANCE INCORPORATED 5.44 05/24/00 25,000,000
15,250,000 TEXACO CAPITAL CORPORATION 5.11 05/03/00 15,249,154
50,000,000 U.S. BANK N.A. 5.92 10/02/00 49,980,946
TOTAL CORPORATE BONDS & NOTES (COST $568,209,803) 568,209,803
--------------
SHORT-TERM FEDERAL AGENCIES - 0.10%
3,455,000 FEDERAL HOME LOAN MORTGAGE CORPORATION 5.61{::} 08/04/00 3,389,485
500,000 FEDERAL HOME LOAN MORTGAGE CORPORATION 5.51{::} 08/10/00 490,253
TOTAL SHORT-TERM FEDERAL AGENCIES (COST $3,879,738) 3,879,738
--------------
CERTIFICATES OF DEPOSIT - 23.42%
100,000,000 AMERICAN EXPRESS CENTURION BANK 6.10 04/27/00 100,000,000
35,000,000 ABN AMRO 6.72 02/12/01 34,991,405
192,000,000 BARCLAY'S BANK 6.34 04/03/00 192,000,000
50,000,000 CANADIAN IMPERIAL BANK OF COMMERCE 5.10 04/12/00 49,999,405
35,000,000 CANADIAN IMPERIAL BANK OF COMMERCE 6.57 01/29/01 34,989,035
24,700,000 COMMERZBANK NY 5.22 05/12/00 24,698,857
47,000,000 COMMERZBANK NY 6.77 02/28/01 46,987,872
88,741,455 MARSHALL & ILSLEY CORPORATION 6.19 04/03/00 88,741,455
67,756,905 NATEXIS BANQUE 6.44 04/03/00 67,756,905
40,000,000 NATIONAL WESTMINSTER BANK 5.14 04/14/00 39,999,421
40,000,000 PARIBAS 5.93 04/28/00 40,000,000
30,000,000 REGIONS BANK N.A. 5.98 04/24/00 30,000,000
50,000,000 U.S. BANK N.A. 6.59 01/16/01 50,000,000
55,000,000 UNION BANK OF SWITZERLAND 6.22 12/11/00 54,972,866
50,000,000 UNION BANK OF SWITZERLAND 6.24 12/06/00 49,977,433
TOTAL CERTIFICATES OF DEPOSIT (COST $905,114,654) 905,114,654
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REPURCHASE AGREEMENTS - 8.42%
47,000,000 BANKAMERICA SECURITIES TRIPARTY REPURCHASE
AGREEMENT 6.35 04/03/00 47,000,000
192,000,000 GOLDMAN SACHS & COMPANY TRIPARTY REPURCHASE
AGREEMENT 6.35 04/03/00 192,000,000
36,426,193 LEHMAN BROTHERS TRIPARTY REPURCHASE AGREEMENT 6.42 04/03/00 36,426,193
</TABLE>
5
<PAGE>
OVERLAND EXPRESS SWEEP FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY DESCRIPTION INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS (continued)
$ 50,000,000 TRAVELERS INSURANCE REPURCHASE AGREEMENT 5.93% 04/03/00 $ 50,000,000
TOTAL REPURCHASE AGREEMENTS (COST $325,426,193) 325,426,193
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $3,860,694,976)* (NOTE 1) 99.92% $3,860,694,976
OTHER ASSETS AND LIABILITIES, NET 0.08 2,917,199
------- --------------
TOTAL NET ASSETS 100.00% $3,863,612,175
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS
SWEEP FUND
<S> <C>
----------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT AMORTIZED COST................ $3,860,694,976
CASH.............................................. 255,349
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES..... 23,354,787
--------------
TOTAL ASSETS...................................... 3,884,305,112
--------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 3,091,247
PAYABLE TO OTHER RELATED PARTIES................ 1,105,721
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 484,980
DIVIDENDS PAYABLE............................... 16,010,989
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TOTAL LIABILITIES................................. 20,692,937
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TOTAL NET ASSETS.................................. $3,863,612,175
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NET ASSETS CONSIST OF:
----------------------------------------------------------------------
PAID-IN CAPITAL................................. $3,864,142,448
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (530,273)
--------------
TOTAL NET ASSETS.................................. $3,863,612,175
--------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
----------------------------------------------------------------------
NET ASSETS........................................ $3,863,612,175
SHARES OUTSTANDING................................ 3,864,153,081
NET ASSET VALUE AND OFFERING PRICE PER SHARE...... $ 1.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
7
<PAGE>
OVERLAND EXPRESS SWEEP FUND STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED
MARCH 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS
SWEEP FUND
<S> <C>
--------------------------------------------------------------------
INVESTMENT INCOME
INTEREST........................................ $ 188,740,436
----------------
TOTAL INVESTMENT INCOME........................... 188,740,436
----------------
EXPENSES
ADVISORY FEES................................... 15,369,587
ADMINISTRATION FEES............................. 5,123,196
CUSTODY......................................... 624,429
SHAREHOLDER SERVICING FEES...................... 10,246,391
PORTFOLIO ACCOUNTING FEES....................... 491,448
TRANSFER AGENT.................................. 1,004,934
DISTRIBUTION FEES............................... 10,246,391
LEGAL AND AUDIT FEES............................ 236,635
REGISTRATION FEES............................... 209,864
DIRECTORS' FEES................................. 2,710
SHAREHOLDER REPORTS............................. 97,169
OTHER........................................... 89,447
----------------
TOTAL EXPENSES.................................... 43,742,201
----------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES............. (1,045,991)
NET EXPENSES.................................... 42,696,210
----------------
NET INVESTMENT INCOME (LOSS)...................... 146,044,226
----------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS......... (5,277)
----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. $ 146,038,949
----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS SWEEP FUND
------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.................................................. $3,097,218,696 $2,594,909,845
OPERATIONS:
NET INVESTMENT INCOME................................................. 146,044,226 116,522,861
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS....................... (5,277) 32,554
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 146,038,949 116,555,415
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME............................................... (146,044,226) (116,522,861)
CAPITAL SHARE TRANSACTIONS (1):
PROCEEDS FROM SHARES SOLD........................................... 8,596,587,764 7,434,822,164
REINVESTMENT OF DIVIDENDS........................................... 5,540 5,766
COST OF SHARES REDEEMED............................................. (7,830,194,548) (6,932,551,633)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS........................................................ 766,398,756 502,276,297
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS................................. 766,393,479 502,308,851
------------- -------------
NET ASSETS:
------------------------------------------------------------------------------------------------------
ENDING NET ASSETS................................................. $3,863,612,175 $3,097,218,696
(1) SHARES ISSUED AND REDEEMED AT CONSTANT $1.00 NAV
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
OVERLAND EXPRESS SWEEP FUND FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING DIVIDENDS ENDING
NET ASSET NET FROM NET NET ASSETS
VALUE PER INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INCOME SHARE
<S> <C> <C> <C> <C>
------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.04 (0.04) $ 1.00
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.04 (0.04) 1.00
JANUARY 1, 1998 TO
MARCH 31, 1998 (3)..... 1.00 0.01 (0.01) 1.00
JANUARY 1, 1997 TO
DECEMBER 31, 1997...... 1.00 0.04 (0.04) 1.00
JANUARY 1, 1996 TO
DECEMBER 31, 1996...... 1.00 0.04 (0.04) 1.00
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 1.00 0.05 (0.05) 1.00
</TABLE>
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(1) RATIOS INCLUDE ACTIVITY OF THE CASH INVESTMENT TRUST MASTER PORTFOLIO PRIOR
TO DECEMBER 15, 1997.
(2) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO MARCH 31.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
FINANCIAL HIGHLIGHTS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
------------------------------------------------- NET ASSETS AT
NET INVESTMENT NET GROSS TOTAL END OF PERIOD
INCOME(1) EXPENSES(1) EXPENSES(1)(2) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
APRIL 1, 1999 TO
MARCH 31, 2000......... 4.29% 1.25% 1.29% 4.32% $ 3,863,612
APRIL 1, 1998 TO
MARCH 31, 1999......... 4.16% 1.25% 1.28% 4.26% 3,097,219
JANUARY 1, 1998 TO
MARCH 31, 1998 (3)..... 4.49% 1.25% 1.26% 1.11% 2,594,910
JANUARY 1, 1997 TO
DECEMBER 31, 1997...... 4.40% 1.24% 1.26% 4.47% 2,956,090
JANUARY 1, 1996 TO
DECEMBER 31, 1996...... 4.20% 1.24% 1.26% 4.29% 2,002,725
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 4.70% 1.25% 1.28% 4.80% 1,209,183
</TABLE>
(1) RATIOS INCLUDE ACTIVITY OF THE CASH INVESTMENT TRUST MASTER PORTFOLIO PRIOR
TO DECEMBER 15, 1997.
(2) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO MARCH 31.
11
<PAGE>
OVERLAND EXPRESS SWEEP FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 61 separate series. These financial
statements represent the Overland Express Sweep Fund (the "Fund"), a
diversified series of the Trust.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective on the close of
business November 5, 1999 the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust through an exchange of shares as
follows:
<TABLE>
<S> <C>
STAGECOACH FUND WELLS FARGO FUND
OVERLAND EXPRESS SWEEP FUND* OVERLAND EXPRESS SWEEP FUND
</TABLE>
<TABLE>
<C> <S>
* ACCOUNTING SURVIVOR
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Fund invests only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolio may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer
at par value prior to maturity.
The Fund uses the amortized cost method to value its portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Fund seeks to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that it will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
REPURCHASE AGREEMENTS
The Fund may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo
Bank, N.A. ("WFB"). The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the Fund's custodian's
responsibility to value collateral daily and to take action to obtain
additional collateral as necessary to maintain market value equal to or
greater than the resale price. The repurchase agreements held by the Fund are
collateralized by instruments such as U.S. Treasury, federal agency, or
high-grade corporate debt obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at March 31,
2000.
The Overland Express Sweep Fund had estimated net capital loss carryforwards,
which are available to offset future net realized capital gains as follows:
<TABLE>
<CAPTION>
Capital Loss
Date Year Expires Carryforwards
<S> <C> <C>
MARCH 31, 2000 2003 $513,061
2005 8,595
2008 8,617
</TABLE>
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Overland
Express Sweep Fund with WFB. Pursuant to the contract, WFB has agreed to
provide the Fund with daily portfolio management, for which WFB is entitled to
be paid a monthly advisory fee at the annual rate of 0.45% of the Fund's
average daily net assets.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-adviser to the Fund. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Fund, a monthly
fee at the annual rate of 0.05% of the Fund's average daily net assets up to
$1 billion and 0.04% of the Fund's average daily net assets in excess of $1
billion.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") on behalf of the
Overland Express Sweep Fund pursuant to Rule 12b-1 under the 1940 Act. The
Plan provides that the Fund may pay to Stephens Inc. (Stephens), as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of up to 0.30%
of the Fund's average daily net assets. The distribution fees paid on behalf
of the Fund for the period ended March 31, 2000 are disclosed in the Statement
of Operations.
5. ADMINISTRATION
The Trust has entered into an administration agreement on behalf of the Fund
with WFB whereby WFB is entitled to receive a monthly fee at the annual rate
of 0.15% of the Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Fund
with Boston Financial Data Services ("BFDS"). Under the transfer agency
contract, BFDS is entitled to receive, on a monthly basis, transfer agency
fees based on the number of accounts and transactions of each Fund. WFB will
continue to provide sub-transfer agency services to the Fund.
Prior to July 17, 1999, the Trust had entered into a contract on behalf of
the Overland Express Sweep Fund with WFB, whereby WFB provided transfer agency
services for the Fund, which was charged at an annual rate of 0.10% of the
average daily net assets of the Fund.
13
<PAGE>
OVERLAND EXPRESS SWEEP FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
7. SHAREHOLDER SERVICING FEES
The Trust has entered into a contract on behalf of the Fund with numerous
shareholder servicing agents whereby the Fund is charged 0.30% of the average
daily net assets of the Fund for these services. Prior to November 8, 1999,
shareholder servicing fees were charged at the same annual rate of 0.30% of
the average daily net assets of the Overland Express Sweep Fund.
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Fund. WFB provided sub-portfolio accounting services to the
Fund. For these services, WFB was entitled to a fixed monthly fee from the
Fund plus an annual fee of 0.0025% of the Fund's average daily net assets.
Prior to November 8, 1999, the Trust had entered into a contract on behalf of
the Overland Express Sweep Fund with WFB whereby WFB was responsible for
providing portfolio accounting services for the Fund. Pursuant to the
contract, WFB was entitled to a monthly base fee from the Fund of $2,000 plus
an annual fee of 0.07% of the first $50 million of the Fund's average daily
net assets, 0.045% of the next $50 million, and 0.02% of the Fund's average
daily net assets in excess of $100 million.
The Trust has entered into a contract on behalf of the Fund with Norwest Bank
Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest is
responsible for providing custody services for the Fund. Pursuant to the
contract, Norwest is entitled to certain transaction charges plus a monthly
fee for custody services at the annual rate of 0.02% of the average daily net
assets of the Fund. Prior to November 8, 1999, the Overland Express Sweep Fund
had the above service performed by WFB for a fee at an annual rate of 0.0167%
of the average daily net assets of the Fund.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 136,270 shares of the Overland Express Sweep Fund.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended March 31, 2000, were waived by WFB. Waived
fees and reimbursed expenses continue at the discretion of WFB.
<TABLE>
<CAPTION>
Fees Waived by WFB Total Fees Waived
<S> <C> <C>
OVERLAND EXPRESS SWEEP FUND $1,045,991 $1,045,991
</TABLE>
14
<PAGE>
INDEPENDENT AUDITORS' REPORT OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities of
Overland Express Sweep Fund (one of the funds comprising Wells Fargo Funds
Trust), including the Portfolio of Investments as of March 31, 2000, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Overland Express Sweep Fund of Wells Fargo Funds Trust as of March 31, 2000,
the results of its operations for the year then ended, and the changes in its
net assets and its financial highlights for the periods indicated above in
conformity with accounting principles generally accepted in the United States
of America.
[LOGO]
San Francisco, California
May 12, 2000
15
<PAGE>
OVERLAND EXPRESS SWEEP FUND LIST OF ABBREVIATIONS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
</TABLE>
16
<PAGE>
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are sponsored and distributed by STEPHENS INC., Member NYSE/SIPC.
Wells Fargo Bank, N.A., and its affiliates are not affiliated with Stephens
Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
WELLS
FARGO
FUNDS
P.O. BOX 8266
BOSTON, MA 02266-8266
AR011 (5/00)
