WELLS FARGO FUNDS TRUST
Wells Fargo Money Market Funds
Class A, Class B, Institutional Class and Service Class
STATEMENT OF ADDITIONAL INFORMATION
Dated November 8, 1999
As Supplemented December 17, 1999 and February 8, 2000
The section of the Statement of Additional Information entitled "Additional
Permitted Investment Activities and Associated Risks" is supplemented as
follows:
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 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 the Fund may decline below the price at which a Fund is
committed to purchase similar securities. In the event the buyer of securities
under a dollar roll transaction becomes insolvent, the Funds 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 Funds 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.
Foreign Obligations
Foreign Currency Transactions. The Funds may enter into forward
currency exchange contracts in order to protect against uncertainty in the level
of future foreign exchange rates. A forward currency exchange contract involves
an obligation to purchase or sell a specific currency at a future date, which
may be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. These contracts are entered
into the interbank market conducted between currency traders (usually large
commercial banks) and their customers. Forward currency exchange contracts may
be bought or sold to protect the Funds against a possible loss resulting from an
adverse change in the relationship between foreign currencies and the U.S.
dollar, or between foreign currencies. Although such contracts are intended to
minimize the risk of loss due to a decline in the value of the hedged currency,
at the same time, they tend to limit any potential gain which might result
should the value of such currency increase.
Illiquid Securities
Guaranteed Investment Contracts. Guaranteed investment contracts
("GICs") are issued by insurance companies. In purchasing a GIC, a Fund
contributes cash to the insurance company's general account and the insurance
company then credits to the Fund's deposit fund on a monthly basis guaranteed
interest at a specified rate. The GIC provides that this guaranteed interest
will not be less than a certain minimum rate. The insurance company may assess
periodic charges against a GIC for expense and service costs allocable to it.
There is no secondary market for GICs and, accordingly, GICs are generally
treated as illiquid investments. GICs are typically unrated.
Participation Interests
Each Fund may purchase participation interests in loans or instruments
in which the Fund may invest directly that are owned by banks or other
institutions. A participation interest gives a Fund an undivided proportionate
interest in a loan or instrument. Participation interests may carry a demand
feature permitting the holder to tender the interests back to the bank or other
institution. Participation interests, however, do not provide the Fund with any
right to enforce compliance by the borrower, nor any rights of set-off against
the borrower and the Fund may not directly benefit from any collateral
supporting the loan in which it purchased a participation interest. As a result,
the Fund will assume the credit risk of both the borrower and the lender that is
selling the participation interest.
<PAGE>
WELLS FARGO FUNDS TRUST
Wells Fargo Tax-Free Funds
Class A, Class B, Class C and Institutional Class
STATEMENT OF ADDITIONAL INFORMATION
Dated November 8, 1999
As Supplemented December 17, 1999 and February 8, 2000
The section of the Statement of Additional Information entitled "Additional
Permitted Investment Activities and Associated Risks" is supplemented as
follows:
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 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 the Fund may decline below the price at which a Fund is
committed to purchase similar securities. In the event the buyer of securities
under a dollar roll transaction becomes insolvent, the Funds 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 Funds 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.
Illiquid Securities
Guaranteed Investment Contracts. Guaranteed investment contracts
("GICs") are issued by insurance companies. In purchasing a GIC, a Fund
contributes cash to the insurance company's general account and the insurance
company then credits to the Fund's deposit fund on a monthly basis guaranteed
interest at a specified rate. The GIC provides that this guaranteed interest
will not be less than a certain minimum rate. The insurance company may assess
periodic charges against a GIC for expense and service costs allocable to it.
There is no secondary market for GICs and, accordingly, GICs are generally
treated as illiquid investments. GICs are typically unrated.
Municipal Securities
Stand-by Commitments. The Funds may purchase municipal securities
together with the right to resell them to the seller or a third party at an
agreed-upon price or yield within specified periods prior to their maturity
dates. Such a right to resell is commonly known as a stand-by commitment, and
the aggregate price which a Fund pays for securities with a stand-by commitment
may be higher than the price which otherwise would be paid. The primary purpose
of this practice is to permit a Fund to be as fully invested as practicable in
municipal securities while preserving the necessary flexibility and liquidity to
meet unanticipated redemptions. In this regard, a Fund acquires stand-by
commitments solely to facilitate portfolio liquidity and does not exercise its
rights thereunder for trading purposes. Stand-by commitments involve certain
expenses and risks, including the inability of the issuer of the commitment to
pay for the securities at the time the commitment is exercised,
non-marketability of the commitment, and differences between the maturity of the
underlying security and the maturity of the commitment.
The acquisition of a stand-by commitment does not affect the valuation
or maturity of the underlying municipal securities. A Fund values stand-by
commitments at zero in determining net asset value. When a Fund pays directly or
indirectly for a stand-by commitment, its cost is reflected as unrealized
depreciation for the period during which the commitment is held. Stand-by
commitments do not affect the average weighted maturity of the Fund's portfolio
of securities.
Participation Interests
Each Fund may purchase participation interests in loans or instruments
in which the Fund may invest directly that are owned by banks or other
institutions. A participation interest gives a Fund an undivided proportionate
interest in a loan or instrument. Participation interests may carry a demand
feature permitting the holder to tender the interests back to the bank or other
institution. Participation interests, however, do not provide the Fund with any
right to enforce compliance by the borrower, nor any rights of set-off against
the borrower and the Fund may not directly benefit from any collateral
supporting the loan in which it purchased a participation interest. As a result,
the Fund will assume the credit risk of both the borrower and the lender that is
selling the participation interest.
<PAGE>
WELLS FARGO FUNDS TRUST
WELLS FARGO WEALTHBUILDER PORTFOLIOS
STATEMENT OF ADDITIONAL INFORMATION
Dated November 8, 1999
As Supplemented December 17, 1999 and February 8, 2000
The section of the Statement of Additional Information entitled "Additional
Permitted Investment Activities and Associated Risks" is supplemented as
follows:
Foreign Government Securities
Foreign Government Securities investments include the securities of
"supranational" organizations such as the International Bank for Reconstruction
and Development and the Inter-American Development Bank if the Advisor believes
that the securities do not present risks inconsistent with the Fund's investment
objective.
Foreign Obligations
The Funds may invest in foreign securities through American Depositary
Receipts ("ADRs"), Canadian Depositary Receipts ("CDRs"), European Depositary
Receipts ("EDRs"), International Depositary Receipts ("IDRs") and Global
Depositary Receipts ("GDRs") or other similar securities convertible into
securities of foreign issuers. These securities may not necessarily be
denominated in the same currency as the securities into which they may be
converted. ADRs (sponsored or unsponsored) are receipts typically issued by a
U.S. bank or trust company and traded on a U.S. stock exchange, and CDRs are
receipts typically issued by a Canadian bank or trust company that evidence
ownership of underlying foreign securities. Issuers of unsponsored ADRs are not
contractually obligated to disclose material information in the U.S. and,
therefore, such information may not correlate to the market value of the
unsponsored ADR. EDRs and IDRs are receipts typically issued by European banks
and trust companies, and GDRs are receipts issued by either a U.S. or non-U.S.
banking institution, that evidence ownership of the underlying foreign
securities. Generally, ADRs in registered form are designed for use in U.S.
securities markets and EDRs and IDRs in bearer form are designed primarily for
use in Europe. Each Fund may not invest 25% or more of its assets in foreign
obligations.
Investments in foreign obligations involve certain considerations that
are not typically associated with investing in domestic securities. There may be
less publicly available information about a foreign issuer than about a domestic
issuer. Foreign issuers also are not generally subject to the same accounting,
auditing and financial reporting standards or governmental supervision as
domestic issuers. 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, social and monetary
instability or 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.
Investment income on certain foreign securities in which a Fund may
invest may be subject to foreign withholding or other taxes that could reduce
the return on these securities. Tax treaties between the United States and
foreign countries, however, may reduce or eliminate the amount of foreign taxes
to which the Fund would be subject.
Participation Interests
Each Fund may purchase participation interests in loans or instruments
in which the Fund may invest directly that are owned by banks or other
institutions. A participation interest gives a Fund an undivided proportionate
interest in a loan or instrument. Participation interests may carry a demand
feature permitting the holder to tender the interests back to the bank or other
institution. Participation interests, however, do not provide the Fund with any
right to enforce compliance by the borrower, nor any rights of set-off against
the borrower and the Fund may not directly benefit from any collateral
supporting the loan in which it purchased a participation interest. As a result,
the Fund will assume the credit risk of both the borrower and the lender that is
selling the participation interest.
