<PAGE>
[WELLS FARGO FUNDS LOGO]
SEMI-ANNUAL REPORT
MONEY MARKET FUND
September 30, 2000
CLASS B
<PAGE>
MONEY MARKET 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..........................................8
STATEMENT OF OPERATIONS......................................................9
STATEMENTS OF CHANGES IN NET ASSETS.........................................10
FINANCIAL HIGHLIGHTS........................................................12
NOTES TO FINANCIAL STATEMENTS.................................................14
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LIST OF ABBREVIATIONS.........................................................17
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
MONEY MARKET FUND
--------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
For investors, the six-month period ended September 30, 2000, was a time
characterized by market volatility. The market included a significant downturn
in technology stocks and attractive gains posted by bonds. In all, rapidly
changing markets reinforced the importance of diversified portfolios of
stocks, bonds and cash to help investors earn more balanced returns in
difficult times.
For stocks, April was the cruelest month. Against a backdrop of ongoing
interest rate hikes and their potential impact on corporate earnings, both the
Dow Jones Industrial Average (the Dow) and the Nasdaq Composite Index (Nasdaq)
went into a tailspin, with the Nasdaq plummeting 25% over five days. Although
the Nasdaq would flounder throughout the remainder of the period, the Dow
staged an impressive August rally -- only to surrender its gains one month
later due to concerns over corporate earnings.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Rising interest rates reflected the Federal Reserve Board's (the Fed) desire
to engineer an economic slowdown and to gradually drain speculative excess out
of the stock market. The interest rate increases, including an aggressive
half-point increase on May 16, 2000, which ultimately achieved the desired
affect. The rising interest rates benefited investors by boosting yields on
shorter-term securities within money market portfolios. U.S. Government
Treasury securities performed well during the second quarter and asset-and
mortgage-backed securities, plus U.S. Government agency securities, assumed a
leadership role in recent months.
Wells Fargo Money Market Funds, which maintained their $1.00 per share price
throughout this volatile period, continue to meet the investor demand for
safety, stability and liquidity.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
--------------------------------------------------------------------------------
Regardless of how financial markets have performed over recent months, Wells
Fargo Funds continue to encourage investors to think long-term. Wells Fargo
Funds continue to stress the importance of a diversified portfolio, a
portfolio that can capitalize on market opportunities while shielding investor
holdings against a downturn in any one sector. Wells Fargo Funds offers an
array of 65 mutual funds designed to meet an investor's risk tolerance and
long-term goals. Thank you for investing in Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
1
<PAGE>
MONEY MARKET FUND PERFORMANCE HIGHLIGHTS
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MONEY MARKET FUND -- CLASS B
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Money Market Fund (the Fund) seeks to provide investors with a
high level of current income, while preserving capital and liquidity, by
investing in high quality, short-term instruments.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Michael Neitzke
INCEPTION DATE
07/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class B shares returned 2.53%(1) for the six-month period ended
September 30, 2000. The Fund underperformed its benchmark, the 90-Day Treasury
Bill(2), which returned 3.05%. The Fund also underperformed its peer group,
the iMoneyNet First Tier Retail Money Fund Average (iMoneyNet)(3), which
returned 2.91%. The Fund's Class B shares distributed $0.03 per share in
dividend income and no capital gains during the period. Please keep in mind
that past performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
These objectives were closely followed during the period, as the Fund did not
seek to increase yields. It aimed only to fulfill its tactical goals of
liquidity and stability. Liquidity was kept high in anticipation of possible
shareholder redemptions. This was accomplished by investing funds in
shorter-term securities, thereby progressively shortening the average maturity
of the portfolio from 70 days on March 31, 2000, to 55 days on June 30, 2000,
to 29 days on September 30, 2000.
In view of the Fund's conservative strategy, its performance, which nearly
matched its benchmarks, was remarkable. Generally, portfolios with shorter
maturity structures would be expected to perform best in a rising interest
rate market. Its relatively favorable return during a period of declining
interest rates may be attributed to the value criteria of its investment
strategy.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking ahead, the Fund expects to at least match, if not outperform, its
benchmarks. It will continue to seek investment opportunities along the yield
curve, but will only reinvest when superior quality issues emerge. The Fund is
committed to a value orientation in investment selection, which will allow it
to perform well under any interest rate scenario. It is consistently managed
to maintain a stable asset value of $1.00 per share in both rising and falling
interest rate markets.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUND
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS B 2.53 4.76 4.26 3.76
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.84(4)
IMONEYNET FIRST TIER RETAIL
MONEY FUND AVERAGE 2.91 5.52 5.00 4.52(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.15%
7-DAY COMPOUND YIELD 5.28%
30-DAY SIMPLE YIELD 5.11%
30-DAY COMPOUND YIELD 5.23%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 29 DAYS
NUMBER OF HOLDINGS 127
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 43%
Time Deposits 23%
Repurchase Agreements 12%
Corporate Bonds 10%
Floating/Variable Rate Bonds/Notes 7%
Certificates of Deposits 5%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 64%
15-29 days 14%
90-179 days 9%
30-59 days 7%
60-89 days 4%
180-269 days 2%
</TABLE>
--------------------------------------------------------------------------------
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. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) 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 Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Class B shares of the Wells Fargo Money Market Fund
for periods prior to November 8, 1999, reflects performance of the Class S
shares of the Stagecoach Money Market Fund (the accounting survivor of a merger
of the Norwest Advantage Ready Cash Investment Fund, the Stagecoach Prime Money
Market Fund and the Stagecoach Money Market Fund), its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet First Tier Retail Money Fund Average is an average of
non-government retail funds that do not hold any second tier securities.
Portfolio holdings of First Tier funds include U.S. Treasury Securities, U.S.
other securities, repos, time deposits, domestic bank obligations, foreign bank
obligations, first tier commercial paper, floating rate notes and asset-backed
commercial paper.
(4) The published return closest to Fund's inception date of 07/01/92.
(5) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUND PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
BANK NOTES - 1.05%
$ 55,000,000 BANK OF AMERICA CORPORATION 7.23% 2/16/01 $ 55,000,000
15,600,000 BRANCH BANKING & TRUST 7.05 5/7/01 15,565,649
95,000,000 REGIONS BANK 6.09 10/10/00 94,998,808
165,564,457
TOTAL BANK NOTES (COST $165,564,457)
---------------
CERTIFICATES OF DEPOSIT - 4.60%
43,800,000 ABN AMRO BANK CHICAGO 6.72 2/12/01 43,795,447
100,000,000 BANK OF AMERICA NT/SA 6.62 11/27/00 100,000,000
46,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 1/29/01 45,994,368
100,000,000 COMMERZ BANK NY 6.77 2/28/01 99,988,385
65,000,000 DEUTSCHE BANK NY 6.07 10/10/00 64,999,388
45,000,000 NATIONAL WESTMINSTER BANK 6.47 1/18/01 44,993,671
35,500,000 U.S. BANK 6.59 1/16/01 35,500,000
150,000,000 UNION BANK OF SWITZERLAND
STAMFORD 6.24 12/6/00 149,982,185
145,800,000 UNION BANK OF SWITZERLAND
STAMFORD 6.22 12/11/00 145,780,020
731,033,464
TOTAL CERTIFICATES OF DEPOSIT (COST
$731,033,464)
---------------
COMMERCIAL PAPER - 39.62%
119,377,000 ALPINE SECURITIZATION
CORPORATION 6.58{::} 10/23/00 118,920,880
396,367,000 AQUINAS FUNDING, LLC 6.75{::} 10/2/00 396,367,000
92,632,000 ATLANTIS ONE FUNDING
CORPORATION 6.63{::} 10/6/00 92,564,585
229,000,000 BANK OF AMERICA CORPORATION 6.47{::} 10/12/00 228,601,795
300,000,000 BAUS FUNDING LLC 6.63{::} 10/6/00 299,782,332
175,000,000 BAUS FUNDING LLC 6.61{::} 12/28/00 172,267,959
45,466,000 COMPASS SECURITIZATION, LLC 6.57{::} 10/12/00 45,383,530
55,000,000 COMPASS SECURITIZATION, LLC 6.47{::} 10/16/00 54,866,106
20,275,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.66{::} 11/20/00 20,093,967
45,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.65{::} 11/22/00 44,583,075
65,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.69{::} 12/11/00 64,170,889
63,629,000 CROWN POINT CAPITAL COMPANY,
LLC 6.58{::} 10/12/00 63,513,231
30,183,000 CROWN POINT CAPITAL COMPANY,
LLC 6.59{::} 10/23/00 30,067,676
100,000,000 CXC INCORPORATED 6.63{::} 10/6/00 99,927,444
137,000,000 FALCON ASSET SECURITIZATION
CORPORATION 6.57{::} 10/3/00 136,975,207
90,440,000 FALCON ASSET SECURITIZATION
CORPORATION 6.60{::} 11/9/00 89,814,708
200,000,000 GENERAL ELECTRIC CAPITAL
INTERNATIONAL FUNDING 6.53{::} 10/5/00 199,891,500
50,000,000 GENERAL ELECTRIC FINANCIAL
ASSURANCE HOLDINGS,
INCORPORATED 6.53{::} 10/5/00 49,972,875
57,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.50{::} 12/22/00 57,000,000
88,000,000 GOVCO INCORPORATED 6.62{::} 12/8/00 86,933,807
125,000,000 GRAND FUNDING CORPORATION 6.54{::} 10/3/00 124,977,292
21,850,000 GRAND FUNDING CORPORATION 6.59{::} 10/4/00 21,842,061
10,391,000 GRAND FUNDING CORPORATION 6.61{::} 10/30/00 10,337,902
172,000,000 GREYHAWK FUNDING, LLC 6.49{::} 10/13/00 171,669,426
46,492,000 HALOGEN CAPITAL COMPANY, LLC 6.75{::} 10/3/00 46,483,283
217,563,000 HALOGEN CAPITAL COMPANY, LLC 6.57{::} 10/17/00 216,970,224
48,176,000 HALOGEN CAPITAL COMPANY, LLC 6.54{::} 10/16/00 48,053,473
75,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.57{::} 10/11/00 74,877,563
34,521,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.51{::} 10/23/00 34,394,135
86,100,000 IRISH PERMANENT TREASURY PLC 6.36{::} 10/26/00 85,746,990
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUND
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$165,000,000 J.P. MORGAN & COMPANY
INCORPORATED 6.45%{::} 10/11/00 $ 164,742,393
28,000,000 K2 (USA) LLC 6.48{::} 10/16/00 27,931,727
66,277,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.60{::} 10/11/00 66,168,140
50,795,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.62{::} 11/17/00 50,371,822
100,000,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.61{::} 12/1/00 98,915,000
20,337,000 LINKS FINANCE, LLC 6.63{::} 11/13/00 20,182,066
124,500,000 LONE STAR FUNDING 6.58{::} 10/19/00 124,115,503
95,084,000 LONE STAR FUNDING 6.60{::} 10/30/00 94,598,861
104,000,000 MOAT FUNDING, LLC 6.67{::} 10/6/00 103,924,196
80,500,000 MOAT FUNDING, LLC 6.49{::} 10/11/00 80,373,414
25,828,000 MOAT FUNDING, LLC 6.46{::} 10/12/00 25,783,160
123,500,000 NEPTUNE FUNDING CORPORATION 6.58{::} 10/4/00 123,455,060
17,755,000 NEPTUNE FUNDING CORPORATION 6.58{::} 10/17/00 17,706,544
148,364,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/19/00 147,905,102
50,000,000 NESS LLC 6.63{::} 11/16/00 49,591,875
50,000,000 NESS LLC 6.63{::} 11/17/00 49,582,806
128,335,000 PARK AVENUE RECEIVABLES
CORPORATION 6.57{::} 10/26/00 127,776,315
178,566,000 PERRY GLOBAL FUNDING LIMITED 6.61{::} 10/18/00 178,046,968
51,413,000 PERRY II FUNDING CORPORATION
(ACE) 6.58{::} 10/25/00 51,198,180
56,382,000 PERRY III FUNDING CORPORATION 6.59{::} 11/1/00 56,074,248
120,036,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.63{::} 10/5/00 119,970,480
127,757,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.64{::} 11/16/00 126,712,587
73,802,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.64{::} 11/16/00 73,198,669
35,583,000 POOLED ACCOUNT RECEIVABLES
CAPITAL CORPORATION 6.62{::} 12/6/00 35,164,752
38,365,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 6.56{::} 10/10/00 38,309,328
75,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.61{::} 10/3/00 74,986,396
150,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.63{::} 10/5/00 149,918,250
125,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.63{::} 10/6/00 124,909,167
28,400,000 SHEFFIELD RECEIVABLES
CORPORATION 6.57{::} 10/18/00 28,317,577
39,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.63{::} 12/6/00 38,540,884
200,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 5.00{::} 1/19/01 200,000,000
120,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.61{::} 2/23/01 120,000,000
54,256,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.62{::} 10/2/00 54,256,000
22,079,000 TRIPLE A ONE FUNDING 6.57{::} 10/11/00 22,042,956
235,000,000 VENTURES BUSINESS TRUST 6.56{::} 10/4/00 234,914,353
6,286,735,694
TOTAL COMMERCIAL PAPER (COST $6,286,735,694)
---------------
CORPORATE BONDS & NOTES - 9.54%
80,000,000 BETA FINANCE INCORPORATED 6.77 3/15/01 80,000,000
113,000,000 BETA FINANCE INCORPORATED 6.15 10/6/00 113,000,000
85,000,000 BETA FINANCE INCORPORATED 6.65 2/5/01 85,000,000
87,000,000 BETA FINANCE INCORPORATED 6.82 2/15/01 87,000,000
150,000,000 BETA FINANCE INCORPORATED 6.83 2/20/01 150,000,000
65,250,000 CC (USA), INCORPORATED 6.17 10/16/00 65,250,000
140,000,000 CC (USA), INCORPORATED 6.77 3/15/01 140,000,000
113,000,000 CC (USA), INCORPORATED 6.79 3/15/01 113,000,000
95,000,000 CC (USA), INCORPORATED 6.66 2/4/01 95,000,000
80,000,000 DORADA FINANCE INCORPORATED 6.77 3/15/01 80,000,000
</TABLE>
5
<PAGE>
MONEY MARKET FUND PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES (continued)
$110,000,000 DORADA FINANCE INCORPORATED 6.79% 3/15/01 $ 110,000,000
108,000,000 DORADA FINANCE INCORPORATED 7.30 5/17/01 108,000,000
20,000,000 NORTHERN ROCK PLC 6.87 4/20/01 20,000,000
75,000,000 SIGMA FINANCE INCORPORATED 6.10 10/23/00 75,000,000
122,000,000 SIGMA FINANCE INCORPORATED 6.89 4/30/01 122,000,000
70,000,000 U.S. BANCORP 5.92 10/2/00 70,000,000
1,513,250,000
TOTAL CORPORATE BONDS & NOTES (COST
$1,513,250,000)
---------------
FLOATING RATE FUNDING AGREEMENTS - 1.00%
7,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.88 12/17/00 7,250,000
150,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.90 2/9/01 150,000,000
157,250,000
TOTAL FLOATING RATE FUNDING AGREEMENTS (COST
$157,250,000)
---------------
MASTER NOTES - 0.01%
2,424,547 GENERAL ELECTRIC COMPANY++ 6.58 10/5/00 2,424,547
---------------
2,424,547
TOTAL MASTER NOTES (COST $2,424,547)
---------------
MUNICIPAL DEMAND NOTES - 0.02%
1,200,000 DURHAM, NC COP SERIES B++ 6.65 7/1/03 1,200,000
1,265,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.72 12/15/26 1,265,000
200,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES SERIES A
WACHOVIA BANK OF NORTH
CAROLINA LOC++ 6.65 3/1/17 200,000
2,665,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$2,665,000)
---------------
TIME DEPOSITS - 25.98%
500,000,000 ABN AMRO BANK CHICAGO, GRAND
CAYMAN 6.55 10/2/00 500,000,000
475,000,000 BANCA COMMERCIALE ITALIANA,
LONDON 6.75 10/2/00 475,000,000
200,000,000 BANK OF IRELAND, DUBLIN 6.75 10/2/00 200,000,000
348,500,000 BANQUE BRUXELLES LAMBERT,
LONDON 6.75 10/2/00 348,500,000
330,000,000 BARCLAYS BANK, LONDON 6.73 10/2/00 330,000,000
550,018,876 CAISSE DES DEPOTS ET
CONSIGNATIONS, PARIS 6.73 10/2/00 550,018,876
169,600,000 KEYBANK, GRAND CAYMAN 6.63 10/2/00 169,600,000
343,459,842 MERITA BANK, GRAND CAYMAN 6.75 10/2/00 343,459,842
775,000,000 RABOBANK, LONDON 6.56 10/3/00 775,000,000
430,000,000 UNION BANK OF SWITZERLAND,
GRAND CAYMAN 6.66 10/2/00 430,000,000
4,121,578,718
TOTAL TIME DEPOSITS (COST $4,121,578,718)
---------------
VARIABLE & FLOATING RATE NOTES - 5.89%
7,500,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.77 3/15/01 7,500,000
300,000,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.68 3/29/01 300,000,000
3,750,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.77 4/9/01 3,749,873
300,000,000 J.P. MORGAN & COMPANY
INCORPORATED 6.61 3/16/01 300,000,000
75,000,000 KEYCORP 6.66 5/15/01 74,990,754
10,250,000 MORGAN STANLEY, DEAN WITTER,
DISCOVER & COMPANY 6.76 3/15/01 10,250,000
155,000,000 MORGAN STANLEY, DEAN WITTER,
DISCOVER & COMPANY 6.60 3/16/01 155,000,000
83,500,000 SIGMA FINANCE INCORPORATED 6.78 10/5/00 83,500,000
934,990,627
TOTAL VARIABLE & FLOATING RATE NOTES (COST
$934,990,627)
---------------
REPURCHASE AGREEMENTS - 11.68%
400,000,000 BANK OF AMERICA NT & SA
REPURCHASE AGREEMENT 6.65 10/2/00 400,000,000
</TABLE>
6
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUND
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS (continued)
$343,007,860 BEAR STEARNS COMPANIES
REPURCHASE AGREEMENT 6.65% 10/2/00 $ 343,007,860
199,245,765 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.67 10/2/00 199,245,765
11,714,557 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.68 10/2/00 11,714,557
750,000,000 GOLDMAN SACHS CORPORATION
REPURCHASE AGREEMENT 6.75 10/2/00 750,000,000
150,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/2/00 150,000,000
1,853,968,182
TOTAL REPURCHASE AGREEMENTS (COST
$1,853,968,182)
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $15,769,460,689)* 99.39% $15,769,460,689
OTHER ASSETS AND LIABILITIES, NET 0.61 96,994,552
------- ---------------
TOTAL NET ASSETS 100.00% $15,866,455,241
------- ---------------
</TABLE>
++ VARIABLE RATE.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
7
<PAGE>
MONEY MARKET FUND STATEMENT OF ASSETS & LIABILITIES -- SEPTEMBER 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
-------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED COST............... $15,769,460,689
CASH............................................ 31,078
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES... 118,145,107
---------------
TOTAL ASSETS...................................... 15,887,636,874
---------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 8,237,636
PAYABLE TO OTHER RELATED PARTIES................ 5,574,946
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 2,669,073
DIVIDENDS PAYABLE............................... 4,699,978
---------------
TOTAL LIABILITIES................................. 21,181,633
---------------
TOTAL NET ASSETS.................................. $15,866,455,241
---------------
NET ASSETS CONSIST OF:
-------------------------------------------------------------------
PAID-IN CAPITAL................................. $15,866,085,746
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... 369,495
---------------
TOTAL NET ASSETS.................................. $15,866,455,241
---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-------------------------------------------------------------------
NET ASSETS - CLASS A.............................. $13,600,572,076
SHARES OUTSTANDING - CLASS A...................... 13,600,011,617
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS A......................................... $ 1.00
NET ASSETS - CLASS B.............................. $ 2,265,883,165
SHARES OUTSTANDING - CLASS B...................... 2,265,792,136
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS B......................................... $ 1.00
---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED) MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
----------------------------------------------------------------
INVESTMENT INCOME
INTEREST........................................ $496,220,578
------------
TOTAL INVESTMENT INCOME........................... 496,220,578
------------
EXPENSES
ADVISORY FEES................................... 30,479,969
ADMINISTRATION FEES............................. 11,429,988
CUSTODY......................................... 1,523,998
SHAREHOLDER SERVICING FEES...................... 19,049,980
PORTFOLIO ACCOUNTING FEES....................... 304,800
TRANSFER AGENT
CLASS A....................................... 8,639,078
CLASS B....................................... 194,910
DISTRIBUTION FEES
CLASS A....................................... 0
CLASS B....................................... 7,309,107
LEGAL AND AUDIT FEES............................ 477,909
REGISTRATION FEES............................... 928,396
DIRECTORS' FEES................................. 2,664
SHAREHOLDER REPORTS............................. 620,412
OTHER........................................... 256,610
------------
TOTAL EXPENSES.................................... 81,217,821
------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES............. (15,996,780)
NET EXPENSES...................................... 65,221,041
------------
NET INVESTMENT INCOME............................. 430,999,537
------------
NET REALIZED GAIN FROM INVESTMENTS.............. 360,685
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $431,360,222
------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
MONEY MARKET FUND STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000(1)
<S> <C> <C>
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.................. $ 15,178,597,286 $ 10,296,401,223
------------------ -----------------
OPERATIONS:
NET INVESTMENT INCOME................. 430,999,537 587,993,347
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS......................... 360,685 (9,727)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 431,360,222 587,983,620
------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A(1).......................... (382,165,350) (530,116,391)
CLASS B............................. (48,834,187) (27,568,972)
S SHARES............................ N/A (30,307,984)(2)
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A............................. 4,810,576,233 9,011,593,439
REINVESTMENT OF DIVIDENDS -
CLASS A............................. 371,429,841 545,615,046
COST OF SHARES REDEEMED - CLASS A..... (5,023,506,443) (5,253,257,204)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A................ 158,499,631 4,303,951,281
------------------ -----------------
PROCEEDS FROM SHARES SOLD - CLASS B... 2,123,738,346 2,897,154,498
REINVESTMENT OF DIVIDENDS -
CLASS B............................. 49,017,749 28,165,021
COST OF SHARES REDEEMED - CLASS B..... (1,643,758,456) (1,188,609,048)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B................ 528,997,639 1,736,710,471
------------------ -----------------
PROCEEDS FROM SHARES SOLD - CLASS S... N/A 1,737,202,703(2)
REINVESTMENT OF DIVIDENDS -
CLASS S............................. N/A 32,669,252(2)
COST OF SHARES REDEEMED - CLASS S..... N/A (2,928,327,917)(2)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S................ N/A (1,158,455,962)(2)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS... 687,857,955 4,882,196,063
------------------ -----------------
NET ASSETS:
---------------------------------------------------------------------------------
ENDING NET ASSETS..................... $ 15,866,455,241 $ 15,178,597,286
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A................. 4,810,576,233 9,011,738,160
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A................. 371,429,841 545,615,046
SHARES REDEEMED - CLASS A............. (5,023,506,443) (5,253,257,204)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A................. 158,499,631 4,304,096,002
------------------ -----------------
SHARES SOLD - CLASS B................. 2,123,738,346 2,897,238,524
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS B................. 49,017,749 28,165,021
SHARES REDEEMED - CLASS B............. (1,643,758,456) (1,188,609,048)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B................. 528,997,639 1,736,794,497
------------------ -----------------
SHARES SOLD - CLASS S................. N/A 1,737,202,703(2)
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS S................. N/A 32,669,252(2)
SHARES REDEEMED - CLASS S............. N/A (2,928,411,900)(2)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS S................. N/A (1,158,539,945)(2)
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME..................... $ 0 $ 0
------------------ -----------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $993,536,856 FOR CLASS A, AND "SHARES
SOLD" INCLUDES 993,575,038 FOR CLASS A AS A RESULT OF THE CONSOLIDATION OF
THE NORWEST ADVANTAGE READY CASH INVESTMENT FUND. "PROCEEDS FROM SHARES
SOLD" INCLUDES $578,292,460 FOR CLASS A, AND "SHARES SOLD" INCLUDES
578,398,886 FOR CLASS A AS A RESULT OF THE CONSOLIDATION OF THE STAGECOACH
PRIME MONEY MARKET FUND. "PROCEEDS FROM SHARES SOLD" INCLUDES $2,137,068
FOR CLASS B, AND "SHARES SOLD" INCLUDES 2,137,109 FOR CLASS B AS A RESULT
OF THE CONSOLIDATION OF THE NORWEST ADVANTAGE READY CASH INVESTMENT FUND.
(2) CLASS S SHARES OF STAGECOACH MONEY MARKET FUND BECAME CLASS B SHARES OF
WELLS FARGO MONEY MARKET FUND ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
11
<PAGE>
MONEY MARKET FUND FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS
NET ASSET NET UNREALIZED FROM NET
VALUE PER INVESTMENT GAIN ON INVESTMENT
SHARE INCOME INVESTMENTS INCOME
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------
CLASS B
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000(2)...... $ 1.00 0.04 0.00 (0.04)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.04 0.00 (0.04)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.04 0.00 (0.04)
OCTOBER 1, 1996 TO
MARCH 31, 1997(3)...... $ 1.00 0.02 0.00 (0.02)
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(4)................ $ 1.00 0.03 0.00 (0.03)
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(2) THIS CLASS OF SHARES WAS REDESIGNATED FROM CLASS S TO CLASS B ON
NOVEMBER 8, 1999. FINANCIAL INFORMATION FOR PERIODS PRIOR TO NOVEMBER 8,
1999 IS THAT OF CLASS S.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------- NET ASSETS AT
REALIZED VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
GAINS SHARE INCOME EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
CLASS B
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.01% 1.51% 1.62% 2.53% $ 2,265,883
APRIL 1, 1999 TO
MARCH 31, 2000(2)...... 0.00 $ 1.00 4.06% 1.46% 1.65% 4.10% $ 1,736,843
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 $ 1.00 4.01% 1.42% 1.62% 4.10% $ 1,158,589
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 $ 1.00 4.28% 1.42% 1.62% 4.37% $ 951,172
OCTOBER 1, 1996 TO
MARCH 31, 1997(3)...... 0.00 $ 1.00 4.02% 1.43% 1.56% 2.02% $ 707,781
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(4)................ 0.00 $ 1.00 3.98% 1.42% 1.55% 3.03% $ 699,231
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(2) THIS CLASS OF SHARES WAS REDESIGNATED FROM CLASS S TO CLASS B ON
NOVEMBER 8, 1999. FINANCIAL INFORMATION FOR PERIODS PRIOR TO NOVEMBER 8,
1999 IS THAT OF CLASS S.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
MONEY MARKET FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 65 separate series. These financial
statements present the Money Market Fund (the "Fund"), a diversified series of
the Trust.
The Money Market Fund offers Class A and Class B shares. The separate classes
of shares differ principally in the applicable sales charges (if any),
distribution fees, and transfer agency fees. Shareholders of each class may
bear certain expenses that pertain to that particular class. All shareholders
bear the common expenses of the Fund and earn income from the portfolio pro
rata based on the average daily net assets of each class, without distinction
between share classes. Dividends are determined separately for each class
based on income and expenses allocable to each class. Realized gains are
allocated to each class pro rata based on the net assets of each class on the
date realized. No class has preferential dividend rights. Differences in per
share dividend rates generally result from differences in separate class
expenses, including distribution, shareholder servicing and transfer agency
fees.
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 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.
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
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUND
--------------------------------------------------------------------------------
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
September 30, 2000.
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Money Market
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 0.40% of the Fund's average daily
net assets.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor 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") for Class B shares of
the Money Market Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution
fees are charged to the Money Market Fund's Class B shares and paid to
Stephens, Inc. ("Stephens") at a rate of 0.75% of average daily net assets.
There are no distribution fees for Class A shares. The distribution fees paid
on behalf of the Fund for the period ended September 30, 2000 are disclosed in
the Statement of Operations.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Fund
with WFB whereby WFB provides administrative services to the Trust and 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"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Fund.
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 0.25% of the average
daily net assets of the Fund for Class B shares for these services.
The shareholder servicing fees paid on behalf of the Fund for the period
ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Class B
<S> <C>
MONEY MARKET FUND $2,436,369
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Fund. In addition, the Trust has entered into a contract on
behalf of the Fund with Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly
Norwest Bank Minnesota, N.A., whereby WFB MN is responsible for providing
custody services for the Fund. Pursuant to the contract, WFB MN is entitled to
certain transaction charges plus a monthly fee for custody services at the
annual rate of 0.02% of the average daily net assets of the Fund.
15
<PAGE>
MONEY MARKET FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Certain officers of the Trust were also officers of Stephens for a portion of
the period. As of September 30, 2000, Stephens owned 12,521 shares of the
Money Market Fund Class B.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended September 30, 2000, were waived by WFB.
10. REORGANIZATION
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust (the "Consolidation").
Effective at the close of business November 5, 1999, the Stagecoach and/or
Norwest Advantage Funds were consolidated into the Wells Fargo Funds Trust
through a tax-free exchange of shares as follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
MONEY MARKET FUND (A,S)* READY CASH INVESTMENT FUND (A,B) MONEY MARKET FUND
PRIME MONEY MARKET FUND (A)
</TABLE>
* ACCOUNTING SURVIVOR
In the Consolidation, the Wells Fargo Money Market Fund acquired all of the A
and S share class net assets of the Stagecoach Money Market Fund, the net
assets of the A share class of the Stagecoach Prime Money Market Fund, and the
net assets of the A and B share classes of the Norwest Advantage Ready Cash
Investment Fund. Concurrent with this consolidation, Class S shares of the
Stagecoach Money Market Fund were converted into Class B shares of the Wells
Fargo Money Market Fund. The A share class of the Stagecoach Prime Money
Market Fund exchanged its 578,398,886 shares for 578,398,886 shares of the
Wells Fargo Money Market Fund. The A and B share classes of the Norwest
Advantage Ready Cash Investment Fund exchanged their 995,712,147 shares for
995,712,147 shares of the Wells Fargo Money Market Fund.
16
<PAGE>
LIST OF ABBREVIATIONS MONEY MARKET FUND
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
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
17
<PAGE>
More information about Wells Fargo Funds is available free upon request. To
obtain literature, please write, fax or e-mail to:
Wells Fargo Funds
P.O. Box 8266
Boston, MA 02266-8266
Fax: 1-415-977-9301
E-mail: [email protected]
Or, call the WELLS FARGO FUNDS Sales & Service Desk at 1-800-552-9612.
Wells Fargo Bank, N.A. and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo
Funds. The Funds are distributed by STEPHENS INC., Member NYSE/SIPC. Wells
Fargo Bank, N.A. and its affiliates are not 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.
[LOGO]
P.O. Box 8266
Boston, MA 02266-8266
DATED MATERIAL
PLEASE EXPEDITE
[RECYCLED LOGO] SAR 007 (11/00)
