<PAGE>
[WELLS FARGO FUNDS LOGO]
SEMI-ANNUAL REPORT
MONEY MARKET FUNDS
September 30, 2000
SERVICE CLASS
CALIFORNIA TAX-FREE MONEY MARKET FUND
CASH INVESTMENT MONEY MARKET FUND
GOVERNMENT MONEY MARKET FUND
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
100% TREASURY MONEY MARKET FUND
PRIME INVESTMENT MONEY MARKET FUND
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS
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CALIFORNIA TAX-FREE MONEY MARKET FUND........................................2
CASH INVESTMENT MONEY MARKET FUND............................................4
GOVERNMENT MONEY MARKET FUND.................................................6
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND............................8
100% TREASURY MONEY MARKET FUND.............................................10
PRIME INVESTMENT MONEY MARKET FUND..........................................12
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND...............................14
PORTFOLIO OF INVESTMENTS
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CALIFORNIA TAX-FREE MONEY MARKET FUND.......................................16
CASH INVESTMENT MONEY MARKET FUND...........................................23
GOVERNMENT MONEY MARKET FUND................................................27
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND...........................29
100% TREASURY MONEY MARKET FUND.............................................38
PRIME INVESTMENT MONEY MARKET FUND..........................................39
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND...............................41
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................42
STATEMENTS OF OPERATIONS....................................................44
STATEMENTS OF CHANGES IN NET ASSETS.........................................46
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS................................51
FINANCIAL HIGHLIGHTS........................................................52
NOTES TO FINANCIAL HIGHLIGHTS.................................................54
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NOTES TO FINANCIAL STATEMENTS.................................................55
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LIST OF ABBREVIATIONS.........................................................60
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
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 FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo California Tax-Free Money Market Fund (the Fund) seeks to
obtain a high level of income exempt from federal income tax and California
personal income tax, while preserving capital and liquidity, by investing in
high quality, short-term, U.S. dollar denominated money market instruments,
primarily municipal obligations.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Kevin Shaughnessy
Mary Gail Walton
INCEPTION DATE
01/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 1.70%(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 outperformed the iMoneyNet
California State Specific Institutional Money Fund Average(3) (iMoneyNet)
which returned 1.68%. The Fund's Service Class shares distributed $0.02 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.
The second quarter was a period of rising interest rates, fueled by
investors' perceptions of stronger economic growth and higher inflation. The
Federal Reserve Open Market Committee upheld that view when it raised the
Federal Funds' target level to 6.5% at its May meeting. Higher interest rates
are also fairly characteristic of second quarters, a reflection of large cash
outflows from money market funds to pay income taxes. This scenario presented
the Fund with the opportunity to increase exposure to longer maturity notes at
attractive yields.
However, as the third quarter got underway, investors' expectations for
additional rate increases were diminished, as economic reports indicated that
the economy was slowing. Although rises in oil prices raised the specter of
inflation, the overall direction of the money markets was stable, to downward.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The State of California received higher than anticipated tax payments this
year, resulting in fewer note issuances and significant supply and demand
imbalances. For most of the period, this lack of new issues has kept the
long-term yield curve steep as far out as nine months. These events will
propel the Fund to take advantage of investment opportunities in the nine to
12-month maturity range, while continuing to provide ample liquidity reserves
for shareholders.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
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>
SERVICE CLASS 1.70 3.09 2.78 2.67
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.73(4)
IMONEYNET CALIFORNIA STATE
SPECIFIC INSTITUTIONAL
MONEY FUND AVERAGE 1.68 3.12 3.24 2.88(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.73%
7-DAY COMPOUND YIELD 3.80%
30-DAY SIMPLE YIELD 3.31%
30-DAY COMPOUND YIELD 3.36%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 44 DAYS
NUMBER OF HOLDINGS 290
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 71%
Municipal Commercial Paper 16%
Municipal Notes 9%
Municipal Bonds 3%
Municipal Put Bonds 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 72%
270+ days 10%
30-59 days 8%
15-29 days 4%
90-179 days 3%
60-89 days 2%
180-269 days 1%
</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.
(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 Service Class shares of the Wells Fargo California
Tax-Free Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Class A shares of the Stagecoach California Tax-Free Money
Market Fund, its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach 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 California State Specific Institutional Money Fund Average is
an average of California institutional state tax- free and municipal money
funds.
(4) The published return closest to Fund's inception date of 01/01/92.
(5) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Cash Investment Money Market Fund (the Fund) seeks to provide
high current income consistent with preservation of capital and the
maintenance of liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Michael Neitzke
INCEPTION DATE
10/14/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 3.07%(1) for the six-month period
ended September 30, 2000. The Fund outperformed its benchmark, the 90-Day
Treasury Bill(2), which returned 3.05%. The Fund slightly underperformed its
peer group, the iMoneyNet First Tier Institutional Money Fund Average
(iMoneyNet)(3) which returned 3.10%. The Fund's Service Class 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.
The Fund's performance reflected a tactical reallocation of securities in the
second quarter, with maturing items reinvested in long-term notes. This
boosted the Fund's overall return, since longer dated items had higher yields
than short-term ones. In the third quarter, however, as short-term yields held
steady, reinvestments in long-term securities did not have the same positive
effect upon total return. Since the Fund was already significantly extended in
long maturity items, it did not seek additional investments in them. The
six-month period ended with a maturity structure shortened from 74 days on
March 31, 2000, to 65 days on September 30, 2000.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking ahead, the Fund believes it will be facing a stable to declining
interest rate environment. With equity markets showing significant volatility
and risks, investors may be expected to move their investments from slumping
stocks into U.S. Treasury Securities. As well, foreign investors, fleeing from
the weakening euro, are increasingly pouring money into U.S. Treasury
Securities. Other economic factors, such as the accelerated pay-down of U.S.
Treasury debt, a slowdown in economic expansion and stronger money growth,
will contribute to a climate of declining interest rates. The Fund, which aims
to maintain a stable asset value of $1.00 per share, is well positioned to
weather any interest rate climate.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 3.07 5.89 5.35 4.99
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET FIRST TIER
INSTITUTIONAL MONEY FUND
AVERAGE 3.10 5.89 5.37 5.04
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 6.24%
7-DAY COMPOUND YIELD 6.44%
30-DAY SIMPLE YIELD 6.24%
30-DAY COMPOUND YIELD 6.42%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 65 DAYS
NUMBER OF HOLDINGS 143
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 72%
Floating/Variable Rate Notes/Bonds 10%
Certificate of Deposits 6%
Corporate Bonds 5%
Asset-Backed Securities 3%
Repurchase Agreements 2%
Time Deposits 2%
</TABLE>
MATURITY DISTRIBUTION
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
90-179 days 35%
2-14 days 31%
15-29 days 17%
30-59 days 10%
60-89 days 5%
270+ days 1%
180-269 days 1%
</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.
(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 Service Class shares of the Wells Fargo Cash
Investment Money Market Fund for the periods prior to November 8, 1999, reflects
performance of the Service Class (formerly Single Class) shares of the Norwest
Advantage Cash Investment Fund (the accounting survivor of a merger of the
Norwest Advantage Cash Investment Fund and the Stagecoach Prime Money Market
Fund at the close of business on November 5, 1999), 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 Institutional Money Fund Average is an average of
non-governmental institutional 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) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Government Money Market Fund (the Fund) seeks to provide high
current income consistent with the preservation of capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/16/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 3.00%(1) for the six-month period
ended September 30, 2000. The Fund slightly underperformed its benchmark, the
90-Day Treasury Bill(2), which returned 3.05%. The Fund also slightly
underperformed its peer group, the iMoneyNet Government Institutional Money
Fund Average (iMoneyNet)(3) that returned 2.98%. The Fund's Service
Class 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.
To take advantage of higher returns in repurchase agreements, maturing
securities were reinvested in repurchase agreements, thereby boosting the
Fund's overall yield. Once the Fund's overnight limit in repurchase agreements
was reached, longer-term securities in the six-month to one-year maturity
range were purchased. By the end of the period, the average maturity of the
Fund was 60 days, compared to 45 days on June 30, 2000.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The second and third quarters were characterized by contrasting money market
climates. While interest rates rose and economic growth was strong in the
second quarter, the third quarter saw a slowdown in economic expansion, a
stronger rate of money growth and accelerated pay-downs of U.S. Treasury debt.
In light of these events, the Fund is preparing for a probable soft landing of
the U.S. economy, and will manage holdings in anticipation of a stable to
declining interest rate market. However, if unexpected economic events alter
this scenario, the Fund is positioned to perform well in any interest rate
market.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 3.00 5.69 5.15 4.78
BENCHMARKS
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET GOVERNMENT
INSTITUTIONAL MONEY FUND
AVERAGE 2.98 5.60 5.16 4.85
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 6.14%
7-DAY COMPOUND YIELD 6.33%
30-DAY SIMPLE YIELD 6.08%
30-DAY COMPOUND YIELD 6.25%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 60 DAYS
NUMBER OF HOLDINGS 37
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Repurchase Agreements 55%
FNMA 16%
FHLMC 15%
FHLB 13%
SLMA 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 57%
90-179 days 18%
60-89 days 10%
30-59 days 5%
270+ days 4%
180-269 days 4%
15-29 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 Service Class shares of the Wells Fargo Government
Money Market Fund for periods prior to November 8, 1999, reflects performance of
the Service Class (formerly single class) shares, adjusted for expenses, of the
Norwest Advantage U.S. Government Fund (the accounting survivor of a merger of
the Norwest Advantage U.S. Government Fund and the Stagecoach Government 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 Government Institutional Money Fund Average is an average of
all government institutional funds.
(4) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Institutional Money Market Fund (the Fund)
seeks to provide current income exempt from federal income taxes consistent
with preservation of capital and the maintenance of liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Kevin Shaughnessy
Mary Gail Walton
INCEPTION DATE
01/07/88
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 1.96%(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 slightly outperformed the
iMoneyNet Tax-Free Institutional Fund Average (iMoneyNet)(3) which returned
1.91%. The Fund's Service Class 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 utilized 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.
During the second quarter, maturing securities were reinvested at higher
yields, thereby boosting the Fund's overall yield. As longer-term securities
had higher yields than shorter-term securities, the Fund reinvested in the
former, thereby extending the maturity structure of the portfolio.
The municipal market yield curve flattened considerably during the third
quarter, with three-month notes rising 30 basis points but one-year notes
rising only 10 basis points. The Fund took advantage of the yield advantage in
long-term securities. This left the Fund with a longer average maturity
structure than that of its peer group, iMoneyNet.
In coming months, the objective of the Fund will be to weather the impact of
heavy tax payments on tax-free securities, an event which may cause investors
to seek shelter in non-government investments. Therefore, it will seek to
maintain liquidity for possible shareholder redemptions. Although the Fund
generally strives to hold securities to maturity, it is prepared to sell
holdings if market opportunities emerge or to fund shareholder redemptions.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the economy is headed for a soft landing,
with stable to declining interest rates over the coming months. The outlook
for improvements in short-term yields is dim, in view of the decision by the
Federal Reserve Board in August to keep interest rates unchanged. However,
long-term yields increased slightly in reaction to market fears over energy
price hikes and inflationary pressures. These events suggest continued
volatility in interest rates. However, the Fund is consistently managed to
maintain a stable asset value of $1.00 per share regardless of market
volatility.
8
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 1.96 3.60 3.30 3.21
BENCHMARK
IMONEYNET TAX-FREE
INSTITUTIONAL MONEY FUND
AVERAGE 1.91 3.54 3.23 3.21
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 4.50%
7-DAY COMPOUND YIELD 4.60%
30-DAY SIMPLE YIELD 4.01%
30-DAY COMPOUND YIELD 4.08%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 56 DAYS
NUMBER OF HOLDINGS 202
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 73%
Municipal Notes 12%
Municipal Put Bonds 7%
Municipal Commercial Paper 4%
Municipal Bonds 3%
Banker's Acceptance Notes 1%
</TABLE>
MATURITY DISTRIBUTION
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 72%
90-179 days 13%
270+ days 8%
180-269 days 4%
60-89 days 1%
15-29 days 1%
30-59 days 1%
</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.
(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 Service Class shares of the Wells Fargo National
Tax-Free Institutional Money Market Fund for the periods prior to November 8,
1999, reflects performance of the Service Class (formerly Institutional Class)
shares of the Norwest Advantage Municipal Money Market Fund (the accounting
survivor of a merger of the Norwest Municipal Money Market Fund and the
Stagecoach National Tax-Free 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 Tax-Free Institutional Money Fund Average is an average of
all national and state tax-free and institutional municipal money funds.
Portfolio holdings of tax-free funds includes Rated and Unrated Demand Notes,
Rated and Unrated General Market Notes, Commercial Paper, Put Bonds under six
months, Put Bonds over six months, AMT Paper and Other Tax- Free holdings. It is
made up of funds in the National Tax-Free Institutional and State-Specific
Institutional categories.
(4) Portfolio holdings are subject to change.
9
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo 100% Treasury Money Market Fund (the Fund) seeks stability of
principal and current income that is exempt from most state and local personal
income taxes.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
12/03/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 2.81%(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%. However, the Fund only slightly
underperformed its peer group, the iMoneyNet Treasury Institutional Fund
Average (iMoneyNet)(3) that returned 2.83%. The Fund's Service Class 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.
Throughout the period, repurchase agreements offered investors a higher
return than any U.S. Treasury Security available to money market funds. Two
cash management bills issued by the U.S. Treasury in August managed to push
yields out to six-months. The government agency securities curve flattened
substantially over the period, with one-year agency yields declining by more
than 15 basis points in September, while short-term yields rose slightly. The
U.S. Treasury curve also flattened, with the short end rising and the long end
falling.
The Fund was able to take advantage of these market events by reinvesting
maturing securities in repurchase agreements, thereby boosting its overall
yield. Once the Fund's overnight limit was reached in repurchase agreements,
the Fund then purchased term securities in the six-month to one-year range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
On a valuation basis, current yields look attractive. The annual inflation
rate is 2.4%. With a historical premium above core inflation of 2.5% to 3%,
long-term Treasury yields should be 5% to 5.5%. Yet U. S. Treasury yields are
currently above those levels. If the projected economic slowdown lowers
inflation to 1.5%, then prospects appear strong for declining U. S. Treasury
yields. The Fund expects interest rates to remain stable or fall in the coming
months, as the economy enters a new era of slower economic growth. The Fund is
well positioned to maintain a stable $1.00 per share valuation in any interest
rate market.
10
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
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>
SERVICE CLASS 2.81 5.34 4.89 4.54
BENCHMARK
90-DAY U.S. TREASURY BILL 3.05 5.95 5.23 4.83(4)
IMONEYNET TREASURY
INSTITUTIONAL FUND AVERAGE 2.83 5.35 N/A N/A
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.73%
7-DAY COMPOUND YIELD 5.90%
30-DAY SIMPLE YIELD 5.80%
30-DAY COMPOUND YIELD 5.96%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE COUPON 57 DAYS
NUMBER OF HOLDINGS 21
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Bills 73%
U.S. Treasury Notes 27%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
30-59 days 45%
60-89 days 21%
90-179 days 16%
2-14 days 14%
15-29 days 4%
</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 reductions
would have been lower.
Performance shown for the Service Class shares of the Wells Fargo 100%
Treasury Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Service Class (formerly Single Class) shares, adjusted for
expenses, of the Norwest Advantage Treasury Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Norwest Advantage Fund
was reorganized into the Wells Fargo Fund.
(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 Treasury Institutional Fund Average includes only
institutional government funds that hold 100% in U.S. Treasury Securities.
(4) The published return closest to the Fund's inception date of 12/03/90.
(5) Portfolio holdings are subject to change.
11
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Prime Investment Money Market Fund (the Fund) seeks to provide
current income, while preserving capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Michael Neitzke
INCEPTION DATE
09/02/98
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 3.05%(1) for the six-month period
ended September 30, 2000. The Fund matched its benchmark, the 90-Day Treasury
Bill(2), which also returned 3.05%. However, the Fund underperformed its peer
group, the iMoneyNet First Tier Institutional Money Fund Average
(iMoneyNet)(3) that returned 3.10%. The Fund's Service Class 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.
The Fund's AAA rating restricts it to a shorter average maturity structure.
This was highly beneficial during the second quarter, as high interest rates
boosted the Fund's overall return. In the third quarter, however, performance
was diminished by declines in long-term yields and market indications of
declining interest rates and slower economic growth.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's short maturity structure performs best in climates of rising
interest rates. Since the economic forecast is for stable to declining
interest rates, the Fund will concentrate on its core objectives of liquidity
and stability, while emphasizing a solid value criterion as the basis for new
investments. Through a value-added selection process, the Fund will continue
to seek to outperform its peer groups in the coming months.
12
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
SERVICE CLASS 3.05 5.82 5.30
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.26(4)
IMONEYNET FIRST TIER
INSTITUTIONAL MONEY FUND
AVERAGE 3.10 5.89 5.38(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 6.16%
7-DAY COMPOUND YIELD 6.35%
30-DAY SIMPLE YIELD 6.14%
30-DAY COMPOUND YIELD 6.32%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 28 DAYS
NUMBER OF HOLDINGS 41
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 72%
Time Deposits 12%
Repurchase Agreements 8%
Floating/Variable Rate Notes/Bonds 5%
Banker's Acceptance Notes 3%
</TABLE>
MATURITY DISTRIBUTION
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 52%
15-29 days 24%
90-179 days 13%
60-89 days 7%
30-59 days 4%
</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.
(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 Service Class shares of the Wells Fargo Prime
Investment Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Service (formerly Public Entities) shares of the Norwest
Advantage Ready Cash Investment Fund, its predecessor fund. Effective at the
close of business November 5, 1999, the 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 Institutional Money Fund Average is an average of
non-governmental institutional 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 CP, Floating Rate Notes and
Asset-Backed Commercial Paper.
(4) The published return closest to Fund's inception date of 09/02/98.
(5) Portfolio holdings are subject to change.
13
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND -- SERVICE CLASS
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Treasury Plus Institutional Money Market Fund (the Fund) seeks
to provide investors with current income and stability of principal by
investing only in obligations issued or guaranteed by the U.S. Treasury and in
notes and other instruments, including repurchase agreements, collateralized
or secured by such obligations, which have remaining maturities not exceeding
397 days (13 months).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
10/01/85
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares returned 2.92%(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 slightly underperformed
its peer group, the iMoneyNet Treasury & Repo Institutional Money Fund Average
(iMoneyNet)(3) which returned 2.95%. The Fund's Service Class 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.
Rising interest rates and strong economic growth were seen in the second
quarter. However, the economic climate shifted dramatically in the third
quarter, as the impact of the April and May stock market correction
reverberated in the money markets. Throughout the third quarter, signs of an
economic slowdown were evident. When the Federal Reserve Board failed to raise
interest rates at its August meeting, investors' perception of a stable to
declining interest rate market was solidified.
The Fund pursued a strategy of reinvesting funds in longer-term securities,
thereby lengthening the average maturity of the portfolio from 39 days on June
30, 2000, to 45 days by the end of the period. Late in the third quarter, the
Fund reinvested maturing securities in higher yielding repurchase agreements.
Although this did not succeed in bolstering overall yield for the period, an
improved performance from these eleventh hour investments may be seen at a
future date.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Stabilizing interest rates are expected to help the economy to successfully
navigate a soft landing. The only economic factor that might abort a soft
landing, would be continued spikes in oil prices, which could trigger a
recession. Barring this, the outlook appears strong for declines in interest
rates. Overall, the Fund is positioned to perform well in any interest rate
environment and can shift its portfolio mix if market opportunities warrant
it.
14
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 2.92 5.47 5.07 4.71
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET. TREASURY & REPO
INSTITUTIONAL MONEY FUND
AVERAGE 2.95 5.51 N/A N/A
</TABLE>
YIELD SUMMARY (SERVICE CLASS)
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.95%
7-DAY COMPOUND YIELD 6.13%
30-DAY SIMPLE YIELD 6.00%
30-DAY COMPOUND YIELD 6.17%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 45 DAYS
NUMBER OF HOLDINGS 19
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Repurchase Agreements 44%
U.S. Treasury Bills 31%
U.S. Treasury Notes 25%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 54%
30-59 days 28%
180-269 days 13%
60-89 days 4%
90-179 days 1%
</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 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 Service Class shares of the Wells Fargo Treasury
Plus Institutional Money Market Fund for the periods prior to November 8, 1999,
reflects performance of the Service Class shares of the Stagecoach Treasury Plus
Money Market Fund (the accounting survivor of a merger between the Norwest
Advantage Treasury Plus Fund and the Stagecoach Treasury Plus 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.
Performance shown for the periods between September 6, 1996, and October 1,
1994, reflects performance of the Pacific American U.S. Treasury Portfolio, a
predecessor portfolio. For the periods prior to October 1, 1994, the performance
shown reflects the performance of the shares of a portfolio of the Pacific
American 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 Treasury & Repo Institutional Money Fund Average is an
average of institutional government funds that hold U.S. Treasury Securities and
repurchase agreements backed by the U.S. Treasury.
(4) Portfolio holdings are subject to change.
15
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 84.32%
$ 5,000,000 ABAG FINANCE AUTHORITY
NONPROFIT CORPORATION CA MFHR
HOUSING-GAIA BUILDING PROJECT
SERIES A++ 4.60% 09/15/32 $ 5,000,000
8,176,000 ABN AMRO MUNITOPS 1998-25
MUNITOPS CERTIFICATES ABN AMRO
BANK N.V. LOC++ 5.13 07/05/06 8,176,000
17,995,000 ABN AMRO MUNITOPS COP 1998-20
MUNITOPS CERTIFICATES LOC++ 5.13 07/05/06 17,995,000
17,000,000 ABN AMRO MUNITOPS COP FGIC
INSURED++ 4.00 05/07/08 17,000,000
4,600,000 ABN AMRO MUNITOPS COP
SERIES 199-7++ 5.13 07/04/07 4,600,000
4,895,000 ALAMEDA-CONTRA COSTA CA
SCHOOLS FINANCING AUTHORITY
REVENUE SERIES D++ 2.55 07/01/18 4,895,000
3,520,000 ALAMEDA-CONTRA COSTA CA
SCHOOLS FINANCING AUTHORITY
REVENUE SERIES I++ 2.50 08/01/29 3,520,000
1,700,000 ALHAMBRA CA IDA RV SUNCLIPSE
LOC - BANK OF AMERICA++ 4.10 05/01/07 1,700,000
2,455,000 ANAHEIM CA COP POLICE
FACILITIES++ 4.25 08/01/08 2,455,000
7,600,000 ANAHEIM CA HFA AMT++ 4.45 07/15/20 7,600,000
4,445,000 ANAHEIM CA MFHR MONTEREY
APARTMENTS SERIES B++ 4.45 05/15/27 4,445,000
1,200,000 ANAHEIM CA HOUSING AUTHORITY
MFHR SERIES L++ 4.72 02/15/33 1,200,000
3,000,000 BARSTOW CA MFHR DESERT VISTA
APARTMENTS LOC - FHLB OF SAN
FRANCISCO++ 4.35 12/01/20 3,000,000
11,000,000 BUENA PARK CA MFHR WALDEN GLEN
APARTMENTS SERIES A++ 4.45 02/15/33 11,000,000
16,000,000 BUTTE COUNTY CA OFFICE OF
EDUCATIONAL TAX & REVENUE 4.25 11/16/00 16,011,372
18,000,000 CALIFORNIA COLLEGE FINANCING
AUTHORITY++ 4.00 10/04/01 18,000,000
17,000,000 CALIFORNIA COMMUNITY COLLEGE
CA TAX & REVENUE ANTICIPATION
NOTES SERIES A 5.00 06/29/01 17,091,670
5,495,000 CALIFORNIA HFFA RV COP
SERIES 202++ 4.82 07/01/10 5,495,000
6,365,000 CALIFORNIA HFFA RV PA 587++ 5.02 12/01/34 6,365,000
5,300,000 CALIFORNIA HFFA RV SERIES A++ 4.75 09/01/28 5,300,000
2,300,000 CALIFORNIA HFFA RV SERIES B++ 4.75 09/01/28 2,300,000
6,000,000 CALIFORNIA HFFA RV SERIES C++ 4.60 09/01/15 6,000,000
7,165,000 CALIFORNIA HFFA RV SERIES C++ 4.75 09/01/15 7,165,000
4,800,000 CALIFORNIA HFFA RV MEMORIAL
HEALTH SERVICES++ 4.65 10/01/24 4,800,000
3,000,000 CALIFORNIA HFFA RV SCRIPPS
HEALTH SERIES B++ 4.25 10/01/22 3,000,000
4,900,000 CALIFORNIA HFFA RV SCRIPPS
MEMORIAL HOSPITAL SERIES A++ 4.25 10/01/22 4,900,000
3,800,000 CALIFORNIA HFFA RV SERIES B++ 4.75 07/01/12 3,800,000
2,600,000 CALIFORNIA HFFA RV SERIES B++ 4.60 08/01/21 2,600,000
5,050,000 CALIFORNIA HFA RV FRN PT 215++ 4.60 08/01/16 5,050,000
4,080,000 CALIFORNIA HFA RV FRN PA
112-A++ 4.60 08/01/26 4,080,000
9,800,000 CALIFORNIA HFA RV SERIES M++ 4.45 08/01/19 9,800,000
27,500,000 CALIFORNIA HFA MFHR
SERIES A++ 4.55 02/01/26 27,500,000
950,000 CALIFORNIA HFA MFHR
SERIES B++ 4.50 02/01/31 950,000
3,580,000 CALIFORNIA HFA RV
SERIES 150++ 4.92 02/01/29 3,580,000
6,900,000 CALIFORNIA HFA RV SERIES Q++ 4.45 08/01/20 6,900,000
6,600,000 CALIFORNIA HFA SFHR
SERIES G++ 4.30 02/01/17 6,600,000
15,000,000 CALIFORNIA HFA SFHR SERIES I 4.05 06/01/01 15,000,000
17,000,000 CALIFORNIA HOUSING RV++ 4.25 08/01/01 17,000,000
20,200,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT IDA RV
SERIES A++ 4.40 04/01/08 20,200,000
4,700,000 CALIFORNIA PCR++ 4.70 11/01/26 4,700,000
7,700,000 CALIFORNIA PCR++ 3.70 10/11/00 7,700,000
24,160,000 CALIFORNIA PCR++ 4.52 06/01/14 24,160,000
5,000,000 CALIFORNIA PCR AMT PACIFIC
GAS & ELECTRIC SERIES D++ 4.70 01/01/10 5,000,000
3,800,000 CALIFORNIA PCR AMT PACIFIC
GAS & ELECTRIC SERIES B++ 4.45 12/01/16 3,800,000
7,901,000 CALIFORNIA PCR SERIES E++ 5.00 11/01/26 7,901,000
74,000,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 5.25 07/03/01 74,521,619
2,900,000 CALIFORNIA SCHOOL FACILITIES
FINANCING SERIES A++ 4.65 07/01/22 2,900,000
3,800,000 CALIFORNIA SCHOOL FACILITIES
FINANCING SERIES B++ 4.60 07/01/24 3,800,000
45,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152++ 5.50 11/01/24 45,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 4,955,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152D++ 5.50% 11/01/24 $ 4,955,000
265,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153++ 4.82 11/01/24 265,000
11,675,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153D++ 4.82 11/01/24 11,675,000
7,000,000 CALIFORNIA STATE DEPARTMENT
WATER RESERVE PROJECT
REVENUE++ 3.95 12/01/13 7,000,000
12,000,000 CALIFORNIA STATE DEPARTMENT
WATER RESERVE PROJECT REVENUE
SERIES 127++ 4.77 12/01/22 12,000,000
4,950,000 CALIFORNIA STATE EAGLE TRUST
PRIVATE PLACEMENT++ 4.82 09/01/03 4,950,000
4,720,000 CALIFORNIA STATE FRN
SERIES 607R++ 4.52 12/01/17 4,720,000
5,000,000 CALIFORNIA STATE GO++ 4.60 12/01/18 5,000,000
16,085,000 CALIFORNIA STATE GO++ 4.52 12/01/18 16,085,000
1,345,000 CALIFORNIA STATE GO++ 4.82 12/01/23 1,345,000
4,785,000 CALIFORNIA STATE GO++ 4.15 02/01/18 4,785,000
6,000,000 CALIFORNIA STATE GO++ 4.82 03/01/21 6,000,000
10,000,000 CALIFORNIA STATE GO++ 5.00 10/01/00 10,000,000
2,995,000 CALIFORNIA STATE GO
SERIES 387++ 4.92 01/01/27 2,995,000
14,380,000 CALIFORNIA STATE GO
SERIES A-9++ 5.55 03/01/02 14,380,000
4,000,000 CALIFORNIA STATE PUBLIC WORKS
BOARD++ 4.82 09/01/17 4,000,000
32,000,000 CALIFORNIA STATEWIDE CDA++ 5.52 01/25/31 32,000,000
21,530,000 CALIFORNIA STATEWIDE CDA++ 5.42 10/01/33 21,530,000
4,600,000 CALIFORNIA STATEWIDE CDA++ 4.60 10/01/26 4,600,000
55,580,000 CALIFORNIA STATEWIDE CDA COP++ 4.20 01/25/31 55,580,000
10,000,000 CALIFORNIA STATEWIDE CDA COP
SERIES 176++ 4.82 08/15/27 10,000,000
63,000,000 CALIFORNIA STATEWIDE CDA IDR
SERIES N-6++ 5.50 10/04/01 63,000,000
20,000,000 CALIFORNIA STATEWIDE CDA
SERIES N-7++ 5.50 10/04/01 20,000,000
20,000,000 CALIFORNIA STATEWIDE CDA
SERIES A 5.25 06/29/01 20,138,986
2,500,000 CALIFORNIA STATEWIDE CDA
BARTON HOSPITAL LOC - BANQUE
NATIONALE DE PARIS++ 4.35 12/01/09 2,500,000
100,000 CALIFORNIA STATEWIDE CDA
CONTINUING CARE UNIVERSITY LOC
-BANK OF SCOTLAND++ 4.70 11/15/28 100,000
4,365,000 CALIFORNIA STATEWIDE CDA
MFHR++ 5.42 05/06/30 4,365,000
5,090,000 CALIFORNIA STATEWIDE CDA
MFHR++ 5.42 05/06/30 5,090,000
6,060,000 CALIFORNIA STATEWIDE CDA
MFHR++ 4.77 08/01/36 6,060,000
2,300,000 CALIFORNIA STATEWIDE COMMUNITY
IDA DEL MESA FARMS PROJECT
SERIES A++ 4.40 05/01/19 2,300,000
6,265,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR 4.77 08/01/36 6,265,000
9,405,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR++ 4.77 05/01/36 9,405,000
11,625,000 CALIFORNIA TRAN FINANCING
AUTHORITY++ 2.50 10/01/27 11,625,000
2,895,000 CALIFORNIA EDFA COP
SERIES 147++ 4.62 10/01/27 2,895,000
5,505,000 CALIFORNIA EDFA COP SERIES PA
542++ 4.52 06/01/27 5,505,000
12,080,000 CALIFORNIA EDFA COP
SERIES 11++ 5.12 04/01/28 12,080,000
4,390,000 CALIFORNIA EDFA COP
SERIES L-3++ 4.45 10/01/15 4,390,000
4,300,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT FISH
HOUSE FOODS++ 4.65 09/01/24 4,300,000
1,000,000 CALIFORNIA STATE GO++ 4.52 12/01/13 1,000,000
39,725,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY RV SERIES D++ 5.50 03/01/18 39,725,000
16,420,000 CAMARILLO CA MFHR CALIFORNIA++ 4.45 10/15/26 16,420,000
10,700,000 CHULA VISTA CA IDR SAN DIEGO
GAS & ELECTRIC++ 4.60 12/01/27 10,700,000
500,000 COLTON CA RDFA MFHR LOC - FHLB
OF SAN FRANCISCO++ 3.35 05/01/10 500,000
5,100,000 COLTON CA RDFA LOC - BANK OF
AMERICA 4.30 11/01/15 5,100,000
1,100,000 CONCORD CA MFHR BEL AIR
APARTMENTS LOC - BANK OF
AMERICA++ 4.40 12/01/16 1,100,000
11,395,000 CONTRA COSTA COUNTY CA MFHR
LAKESHORE SERIES C++ 4.30 11/15/17 11,395,000
3,100,000 CONTRA COSTA COUNTY CA MFHR
DELTA SQUARE APARTMENTS
SERIES H++ 4.30 10/15/29 3,100,000
745,000 CONTRA COSTA COUNTY CA MFHR EL
CERRITO ROYALE SERIES A LOC -
BANK OF AMERICA++ 4.40 12/01/17 745,000
6,400,000 CONTRA COSTA COUNTY CA MFHR
SERIES B++ 4.90 11/15/22 6,400,000
</TABLE>
17
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$11,000,000 CALIFORNIA STATE DW&P 3.70% 11/07/00 $ 11,000,000
49,200,000 CALIFORNIA STATE DW&P 4.00 11/08/00 49,200,000
1,900,000 DUARTE CA RDFA COP JOHNSON
DUARTE PARTNERS PROJECT
SERIES B LOC - BANK OF
AMERICA++ 4.30 12/01/14 1,900,000
2,200,000 DUBLIN CA MFHR PARK SIERRA
SERIES A 4.40 06/01/28 2,200,000
11,100,000 EAGLE TAX EXEMPT++ 4.82 09/01/03 11,100,000
10,390,000 EAGLE TRUST PRIVATE
PLACEMENT++ 4.82 02/01/06 10,390,000
4,500,000 EAST BAY CA MUNICIPAL
UTILITIES DISTRICT WATER
SERIES 179++ 4.82 06/01/08 4,500,000
9,800,000 EASTERN MUNICIPAL WATER
DISTRICT CA SERIES B++ 4.40 07/01/20 9,800,000
2,500,000 ELSINORE VALLEY CA MUNICIPAL
WATER DISTRICT SERIES A++ 4.50 07/01/29 2,500,000
4,400,000 ESCONDIDO CA CDA LOC - BANK OF
AMERICA++ 4.40 10/01/16 4,400,000
150,000 FAIRFIELD CA IDA HERMAN G
ROWLAND PROJECT LOC - BANK OF
AMERICA++ 3.40 04/01/05 150,000
900,000 FOWLER CA IDA BEE SWEET CITRUS
LOC - BANK OF AMERICA++ 4.45 12/01/05 900,000
1,900,000 FREMONT CA COP FAMILY RESOURCE
CENTER FINANCING PROJECT++ 2.55 08/01/28 1,900,000
9,000,000 FRESNO COUNTY CA TAX & REVENUE
ANTICIPATION NOTES 5.00 07/02/01 9,049,072
6,800,000 FULLERTON CA IDR SUNCLIPSE
SERIES A LOC - BANK OF
AMERICA++ 4.10 07/01/15 6,800,000
7,150,000 GARDEN GROVE CA MFHR MALABAR
APARTMENTS PROJECT SERIES A
FNMA INSURED++ 4.40 12/15/29 7,150,000
2,500,000 GLENDALE CA COP JAIL
FACILITIES RV POLICE BUILDING
PROJECT MORGAN GUARANTY TRUST
INSURED++ 4.40 06/01/30 2,500,000
900,000 GOLDEN EMPIRE CA SCHOOL
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A++ 4.50 12/01/24 900,000
7,050,000 HAYWARD CA HOUSING AUTHORITY++ 4.85 06/15/25 7,050,000
3,605,000 HUNTINGTON BEACH CA SEABRIDGE
VILLAS SERIES A LOC - BANK OF
AMERICA++ 4.00 02/01/10 3,605,000
1,515,000 IRVINE RANCH CA WATER DISTRICT
LOC - TORONTO DOMINION BANK++ 4.50 06/01/15 1,515,000
100,000 IRVINE CA IMPROVEMENT BOND ACT
1915 ASSESSMENT DISTRICT NO
94-15++ 4.75 09/02/20 100,000
10,200,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
RV CAPITAL IMPROVEMENT
PROJECT++ 4.40 11/01/10 10,200,000
3,405,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
RV CAPITAL IMPROVEMENT
PROJECT++ 4.40 11/01/10 3,405,000
1,500,000 IRVINE CA IDA IRVINE EAST
INVESTMENT COMPANY LOC - BANK
OF AMERICA++ 4.30 12/01/05 1,500,000
4,155,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES B++ 4.50 08/01/06 4,155,000
1,500,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES D++ 4.50 08/01/06 1,500,000
100,000 LANCASTER CA HFA MFHR WESTWOOD
PARK APARTMENTS SERIES K LOC -
BANK OF AMERICA++ 4.30 12/01/07 100,000
8,400,000 LIVERMORE CA MFHR MORTGAGE
PARK-A FNMA INSURED++ 4.50 07/15/18 8,400,000
11,100,000 LOS ANGELES CA MFHR FOUNTAIN
PARK PROJECT SERIES P++ 4.45 04/15/33 11,100,000
2,800,000 LOS ANGELES CA MFHR MASSELIN
MANOR PROJECT LOC - BANK OF
AMERICA++ 4.45 07/01/15 2,800,000
5,000,000 LOS ANGELES CA CDA++ 4.20 04/01/30 5,000,000
25,615,000 LOS ANGELES CA MFHR++ 4.45 03/15/34 25,615,000
8,790,000 LOS ANGELES COUNTY CA HFA++ 4.40 08/01/30 8,790,000
10,000,000 LOS ANGELES COUNTY CA PENSION
OBLIGATION SERIES B AMBAC
INSURED++ 4.25 06/30/07 10,000,000
55,000,000 LOS ANGELES COUNTY CA GO
TAX & REVENUE ANTICIPATION
NOTES SERIES A 5.00 06/29/01 55,333,164
6,900,000 LOS ANGELES COUNTY CA MFHR
SAND CANYON RANCH PROJECT
SERIES F LOC - CITIBANK NA++ 4.00 11/01/06 6,900,000
5,000,000 LOS ANGELES COUNTY CA SCHOOLS
POOL FINANCING PROGRAM COP
SERIES A 5.00 07/02/01 5,026,173
1,750,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 4.25 07/01/12 1,750,000
10,000,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 6.75 07/01/18 10,373,913
11,000,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 6.75 07/01/20 11,411,305
3,000,000 LOS ANGELES CA MFHR RENTAL
ACADEMY APARTMENTS SERIES A++ 4.50 10/01/19 3,000,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 900,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE++ 4.52% 08/15/18 $ 900,000
4,300,000 LOS ANGELES CA DW&P
SERIES F++ 4.45 02/01/10 4,300,000
2,000,000 LOS ANGELES CA DW&P
SERIES D++ 4.45 02/01/10 2,000,000
13,160,000 LOS ANGELES CA DW&P
SERIES 144++ 4.82 06/15/29 13,160,000
3,210,000 LOS ANGELES CA SERIES 709++ 4.52 09/01/09 3,210,000
5,000,000 LOS ANGELES CA SERIES N8++ 5.50 06/29/01 5,000,000
19,655,000 LOS ANGELES CA USD GO BONDS
TAX REVENUE ANTICIPATION NOTES
SERIES II-R-35++ 4.82 07/01/21 19,655,000
5,000,000 LOS ANGELES CA USD
SERIES 1179++ 3.95 07/01/19 5,000,000
9,630,000 LOS ANGELES CA USD COP
BELMONT++ 4.35 12/01/17 9,630,000
9,000,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES A++ 4.40 06/01/23 9,000,000
4,750,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA FRN PA
546++ 4.52 07/01/27 4,750,000
9,995,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA COP
SERIES 154++ 4.82 07/01/27 9,995,000
9,700,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES C
LOC - BANK OF AMERICA++ 4.15 07/01/28 9,700,000
7,200,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES SG-128++ 4.52 07/01/30 7,200,000
3,170,000 METROPOLITAN WATER DISTRICT++ 4.67 08/05/22 3,170,000
8,000,000 MILPITAS CA MFHR CROSSING AT
MONTAGUE PROJECT SERIES A LOC
-U.S. BANK TRUST++ 4.45 08/15/33 8,000,000
5,100,000 MODESTO CA MFHR WESTDALE
COMMONS APARTMENT SERIES A LOC
-FHLB OF SAN FRANCISCO++ 4.50 12/01/15 5,100,000
2,900,000 MONTEBELLO CA IDA LOC - BANK
OF AMERICA++ 4.10 04/01/15 2,900,000
3,500,000 MONTEREY COUNTY CA FINANCE
AUTHORITY++ 4.45 09/01/36 3,500,000
5,890,000 MORGAN HILL CA USD SERIES SG
145++ 4.52 08/01/25 5,890,000
7,450,000 MODESTO - SAN JUAN - REDDING
PUBLIC POWER AGENCY SERIES A
22 - REGULATION D++ 5.50 07/01/17 7,450,000
5,200,000 MODESTO - SAN JUAN - REDDING
PUBLIC POWER AGENCY
SERIES B++ 4.40 07/01/22 5,200,000
9,300,000 NEWPORT BEACH CA HEALTH HOAG
MEMORIAL PRESBYTERIAN HOSPITAL
SERIES A++ 4.25 12/01/29 9,300,000
10,505,000 NORTHERN CALIFORNIA PUBLIC
POWER SERIES SSP 35A++ 5.00 07/01/28 10,505,000
1,100,000 OAKLAND CA JOINT POWERS
FINANCING AUTHORITY LEASE
SERIES A-1++ 4.35 08/01/21 1,100,000
9,000,000 ONTARIO CA MFHR PARK CENTER
APARTMENTS LOC - ROYAL BANK OF
CANADA SERIES A++ 4.30 08/01/07 9,000,000
5,100,000 ORANGE COUNTY CA TRANSPORTAION
AUTHORITY SALES TAX RV 4.30 02/15/01 5,110,007
6,700,000 ORANGE COUNTY CA HOUSING
AUTORITY OASIS MARTINIQUE
SERIES I++ 4.35 06/15/28 6,700,000
4,200,000 ORANGE COUNTY CA SERIES B++ 4.35 11/01/22 4,200,000
7,249,000 ORANGE COUNTY CA HARBOR POINTE
ISSUE D++ 4.30 12/01/22 7,249,000
9,900,000 ORANGE COUNTY CA HIDDEN HILLS
SERIES C++ 4.65 11/01/09 9,900,000
900,000 ORANGE COUNTY CA NIGUEL SUMMIT
1 SERIES A++ 4.65 11/01/09 900,000
2,700,000 ORANGE COUNTY CA NIGUEL SUMMIT
SERIES B LOC - BANK OF
AMERICA++ 4.30 11/01/09 2,700,000
3,900,000 ORANGE COUNTY CA PARK RIDGE
VILLAS++ 4.30 11/15/28 3,900,000
5,000,000 ORANGE COUNTY CA VILLAS
ALIENTO SERIES E++ 4.20 08/15/28 5,000,000
3,000,000 ORANGE COUNTY CA MFHR POINTE
NIGUEL SERIES C LOC - U.S.
BANK TRUST++ 4.35 11/01/22 3,000,000
28,100,000 ORANGE COUNTY CA MFHR
SERIES A++ 4.30 12/01/06 28,100,000
3,400,000 PORT OAKLAND CA RV SERIES A1
REGULATION D++ 5.55 11/01/22 3,400,000
4,995,000 PORT OAKLAND CA++ 4.60 11/01/17 4,995,000
4,000,000 PORT OAKLAND CA TRANSPORTATION
RV SERIES 5++ 5.12 11/01/12 4,000,000
16,500,000 RIVERSIDE COUNTY CA SFA
SERIES N10++ 5.50 10/19/01 16,500,000
2,245,000 RIVERSIDE COUNTY CA ASSET
LEASING CORPORATION COP
SERIES 148++ 4.82 06/01/16 2,245,000
1,300,000 RIVERSIDE COUNTY CA COP
RIVERSIDE COUNTY PUBLIC
FACILITIES PROJECT SERIES A++ 4.80 12/01/15 1,300,000
1,700,000 RIVERSIDE COUNTY CA COP
SERIES D++ 4.80 12/01/15 1,700,000
10,600,000 SACRAMENTO COUNTY CA
SANITATION DISTRICT FINANCING
AUTHORITY SERIES A LOC - BANK
OF NEW YORK++ 5.07 12/01/19 10,600,000
3,600,000 SACRAMENTO COUNTY CA COP
ADMINISTRATION CENTER &
COURTHOUSE PROJECT LOC - BANK
OF SWITZERLAND++ 2.50 06/01/20 3,600,000
</TABLE>
19
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 6,300,000 SACRAMENTO COUNTY CA MFHR
HIDDEN OAKS APARTMENTS
SERIES C++ 4.45% 05/15/29 $ 6,300,000
5,000,000 SACRAMENTO COUNTY CA MFHR
STONE CREEK APARTMENTS++ 4.30 11/15/27 5,000,000
10,000,000 SACRAMENTO COUNTY CA OFFICE OF
EDUCATION TAX & REVENUE 4.50 01/19/01 10,020,064
3,000,000 SACRAMENTO COUNTY CA TAX &
REVENUE GO 5.00 10/04/01 3,033,618
1,000,000 SACRAMENTO COUNTY CA TAX &
REVENUE 5.25 10/04/01 1,013,397
1,200,000 SACRAMENTO CA MFHR SMOKETREE
PROJECT SERIES A++ 4.40 04/15/10 1,200,000
3,000,000 SALINAS CA MFHR BRENTWOOD
GARDEN SERIES A++ 4.30 05/15/27 3,000,000
1,655,000 SAN BERNARDINO COUNTY CA++ 4.52 03/01/10 1,655,000
1,500,000 SAN BERNARDINO COUNTY CA COP
COUNTY CENTER REFINANCING
PROJECT++ 4.30 07/01/15 1,500,000
5,000,000 SAN BERNARDINO COUNTY CA MFHR
ALTA LOMA APARTMENTS SERIES A
LOC - CALIFORNIA FEDERAL
BANK++ 3.25 02/01/23 5,000,000
2,085,000 SAN BERNARDINO COUNTY CA MFHR
SERIES B++ 5.75 05/01/17 2,085,000
6,115,000 SAN BERNARDINO COUNTY CA MFHR
GREEN VALLEY APARTMENTS
SERIES A++ 4.30 05/15/29 6,115,000
4,725,000 SAN BERNARDINO COUNTY CA MFHR
RIVERSIDE DRIVE APARTMENT
SERIES A LOC - REDLANDS
FEDERAL BANK++ 5.75 05/01/17 4,725,000
3,020,000 SAN DIEGO CA TAX REVENUE
ANTICIPATION NOTES 5.25 10/02/01 3,062,265
4,900,000 SAN DIEGO COUNTY CA COP SAN
PASQUAL ACADEMY++ 4.70 08/01/20 4,900,000
2,600,000 SAN DIEGO COUNTY CA MFHR
COUNTRY HILLS SERIES A++ 4.40 08/15/13 2,600,000
9,700,000 SAN DIEGO COUNTY CA MFHR
SERIES C++ 4.40 04/15/05 9,700,000
2,000,000 SAN DIEGO CA COP++ 4.52 08/01/28 2,000,000
10,915,000 SAN DIEGO CA MFHR LOC -
PAINEWEBBER INCORPORATED++ 4.35 12/01/22 10,915,000
3,500,000 SAN DIEGO CA MFHR LOC - BANK
OF AMERICA++ 3.70 10/01/15 3,500,000
15,000,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY
SERIES SG++ 4.52 05/15/29 15,000,000
30,000,000 SAN FRANCISCO BAY GO 4.00 10/02/00 30,000,000
10,465,000 SAN FRANCISCO CA AIRPORT 3.90 12/05/00 10,465,000
5,750,000 SAN FRANCISCO CA CITY & COUNTY
MFHR++ 4.45 12/01/17 5,750,000
17,410,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT++ 5.05 01/01/27 17,410,000
4,000,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT
SERIES 38A++ 5.05 05/01/24 4,000,000
19,240,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT
SERIES 31++ 4.92 05/01/29 19,240,000
3,000,000 SAN FRANCISCO CA CITY & COUNTY
MFHR FILLMORE CENTER
SERIES A-2 LOC - CREDIT SUISSE
FIRST BOSTON++ 4.45 12/01/17 3,000,000
2,200,000 SAN FRANCISCO CA CITY & COUNTY
MFHR FILLMORE CENTER
SERIES A-1 LOC - CREDIT SUISSE
FIRST BOSTON++ 4.15 12/01/17 2,200,000
4,175,000 SAN FRANCISCO CA CITY & COUNTY
MFHR YERBA BUENA GARDEN LOC -
BANK OF TOKYO MITSUBISHI++ 2.55 09/01/06 4,175,000
2,935,000 SAN JACINTO CA USD SERIES A++ 4.50 09/01/14 2,935,000
3,000,000 SAN JOAQUIN TRANSPORTATION RV 3.65 12/12/00 3,000,000
5,000,000 SAN JOSE CA MFHR++ 4.77 05/01/30 5,000,000
5,000,000 SAN JOSE CA MFHR++ 4.77 05/01/30 5,000,000
1,000,000 SAN JOSE CA MFHR ALMADEN LAKE
VILLAGE APARTMENTS SERIES A
LOC - BANK OF AMERICA++ 4.38 03/01/32 1,000,000
2,200,000 SAN JOSE CA MFHR FAIRWAY GLEN
APARTMENTS SERIES A++ 4.45 11/01/07 2,200,000
6,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY SERIES A++ 2.55 07/01/26 6,000,000
2,200,000 SAN LEANDRO CA MFHR HAAS
AVENUE APARTMENTS SERIES B LOC
-SECURITY PACIFIC NATIONAL++ 4.30 10/01/07 2,200,000
14,645,000 SAN MATEO COUNTY CA JT POWERS
AUTHORITY LEASE SERIES 123 FSA
INSURED++ 4.82 07/15/29 14,645,000
500,000 SANTA CLARA COUNTY CA FINANCE
AUTHORITY LEASE VMC SERIES B
LOC - UNION BANK OF
SWITZERLAND++ 4.45 11/15/25 500,000
14,600,000 SANTA CLARA COUNTY CA MFHR++ 4.40 11/01/07 14,600,000
1,000,000 SANTA CLARA COUNTY CA
TRANSPORTATION++ 2.50 06/01/15 1,000,000
7,100,000 SANTA CLARA COUNTY CA HOSPITAL
DISTRICT FACILITY RV
SERIES A++ 4.90 08/01/15 7,100,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$13,465,000 SANTA CLARA CA ELECTRIC RV
SERIES B++ 4.40% 07/01/10 $ 13,465,000
12,000,000 SANTA CRUZ COUNTY CA TAX RV 4.50 10/06/00 12,001,275
3,000,000 SIMI VALLEY CA MFHR LINCOLN
WOOD RANCH LOC - CREDIT SUISSE
FIRST BOSTON++ 2.55 06/01/10 3,000,000
4,475,000 SIMI VALLEY CA MFHR
SERIES A++ 4.30 07/01/23 4,475,000
2,421,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE REVENUE
SERIES A++ 4.50 12/01/18 2,421,000
5,800,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE RV SERIES B++ 4.55 12/01/18 5,800,000
500,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORTIY SOUTHERN
TRANSMISSION PROJECT
SERIES A++ 4.50 07/01/23 500,000
4,200,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY PALO VERDE
PROJECT SERIES C AMBAC
INSURED++ 4.25 07/01/17 4,200,000
1,000,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY SOUTHERN
TRANSMISSION PROJECT LOC -
SWISS BANK++ 4.25 07/01/19 1,000,000
8,000,000 STANISLAUS CA WASTE-TO-ENERGY
FINANCE AGENCY SOLID WASTE
FACILITY OGDEN MARTIN SYSTEMS
PROJECT++ 2.50 01/01/10 8,000,000
22,875,000 STATE OF CA GO 3.90 10/11/00 22,875,000
7,000,000 STATE OF CA GO 3.55 11/06/00 7,000,000
8,500,000 STATE OF CA GO 3.95 10/06/00 8,500,000
6,300,000 TRACY CA MFHR SYCAMORE VILLAGE
APARTMENTS SERIES A LOC - BANK
OF AMERICA++ 3.45 05/01/15 6,300,000
4,320,000 TURLOCK CA IRRIGATION DISTRICT
SERIES A LOC - CANADIEN
IMPERIAL BANK OF COMMERCE++ 4.40 01/01/14 4,320,000
2,900,000 TURLOCK CA IRRIGATION DISTRICT
COP IRRIGATION PROJECT
SERIES A++ 4.40 01/01/26 2,900,000
3,500,000 UNIVERSITY OF CALIFORNIA
REGENTS 3.95 12/04/00 3,500,000
25,000,000 UNIVERSITY OF CALIFORNIA
REGENTS 3.90 12/08/00 25,000,000
6,150,000 VACAVILLE CA MFHR QUAIL RUN
PROJECT SERIES A++ 4.50 07/15/18 6,150,000
2,700,000 VALLECITOS CA WATER DISTRICT
COP TWIN OAKS RESERVOIR
PROJECT++ 4.50 07/01/30 2,700,000
4,800,000 VALLEJO CA MFHR HIGHLANDS++ 4.75 06/01/07 4,800,000
7,300,000 VALLEJO MFHR SERIES C++ 4.90 01/01/08 7,300,000
2,900,000 WALNUT CREEK CA MFHR CREEKSIDE
DRIVE APARTMENTS LOC - BANK OF
AMERICA++ 3.45 04/01/07 2,900,000
1,470,000 WEST COVINA CA REDEVELOPMENT
AGENCY LEASE++ 4.30 08/01/18 1,470,000
2,015,674,900
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$2,015,674,900)
--------------
PUERTO RICO MUNICIPAL SECURITIES - 14.83%
3,400,000 PUERTO RICO COMMONWEALTH
GOVERNMENT DEVELOPMENT++ 4.35 12/01/15 3,400,000
9,700,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 331++ 4.57 07/01/14 9,700,000
1,000,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES 472++ 4.57 07/01/18 1,000,000
3,750,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES PA 494++ 4.57 07/01/28 3,750,000
2,390,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 605++ 4.57 07/01/26 2,390,000
2,675,000 PUERTO RICO COMMONWEALTH GO++ 4.57 07/01/10 2,675,000
9,720,000 PUERTO RICO COMMONWEALTH GO
SERIES 125 AMBAC INSURED++ 4.82 07/01/27 9,720,000
6,090,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 548R++ 4.57 07/01/15 6,090,000
6,400,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES A AMBAC
INSURED++ 4.50 07/01/28 6,400,000
2,500,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES B MBIA
INSURED++ 3.89 07/01/35 2,500,000
2,000,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY PA 498++ 4.57 07/01/28 2,000,000
8,700,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 AMBAC
INSURED++ 4.82 07/01/28 8,700,000
9,200,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE RV++ 4.05 07/01/28 9,200,000
17,000,000 PUERTO RICO COMMONWEALTH P
FLOATS PT 1025++ 4.05 07/01/23 17,000,000
4,425,000 PUERTO RICO COMMONWEALTH
SERIES 20 MBIA INSURED++ 4.97 07/01/23 4,425,000
5,820,000 PUERTO RICO COMMONWEALTH
SERIES 642 MBIA INSURED++ 4.57 07/01/12 5,820,000
24,507,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.75 02/12/00 24,507,000
</TABLE>
21
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (continued)
$16,659,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.80% 10/17/00 $ 16,659,000
6,600,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.65 10/18/00 6,600,000
18,554,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.90 10/25/00 18,554,000
24,290,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.40 10/26/00 24,290,000
20,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.80 10/31/00 20,000,000
11,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.35 11/09/00 11,000,000
25,084,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.35 11/09/00 25,084,000
13,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.00 11/13/00 13,000,000
5,200,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.20 11/16/00 5,200,000
19,100,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.45 11/16/00 19,100,000
17,446,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.25 11/22/00 17,446,000
2,000,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV++ 4.57 06/01/16 2,000,000
6,315,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV++ 4.57 06/01/19 6,315,000
1,195,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV SERIES 111++ 4.82 06/01/26 1,195,000
9,795,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV++ 4.57 07/01/07 9,795,000
3,700,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV++ 4.57 01/01/12 3,700,000
8,030,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV SERIES P 7.00 07/01/21 8,361,653
18,400,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV SERIES 16 HH++ 5.07 07/01/13 18,400,000
3,820,000 PUERTO RICO PUBLIC BUILDINGS
AUTHORITY RV FRN PA 577++ 4.57 07/01/27 3,820,000
354,636,653
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $354,636,653)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,370,311,553)* 99.15% $2,370,311,553
OTHER ASSETS AND LIABILITIES, NET 0.85 20,303,666
------- --------------
TOTAL NET ASSETS 100.00% $2,390,615,219
------- --------------
</TABLE>
++ VARIABLE RATE.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 25%
Multi-Family Housing 20%
Educational Facilities 10%
Industrial Development 9%
Water & Sewer 7%
General Obligation 3%
Health Care 3%
Leasing 3%
Transportation 3%
Foreign Depository Institutions 3%
Airport Revenue 2%
Electric 2%
Housing 2%
Power 2%
Utilities 2%
Economic Development 1%
Pollution Control 1%
Sales Tax 1%
Single Family Housing 1%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES - 2.74%
$200,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 2000-6 6.81% 3/15/01 $ 200,000,000
137,090,345 WFP TOWER FINANCE CORPORATION 6.74 4/6/01 137,090,345
337,090,345
TOTAL ASSET BACKED SECURITIES (COST
$337,090,345)
---------------
CERTIFICATES OF DEPOSIT - 5.32%
153,000,000 COMMERZBANK, NY 6.99 7/17/01 153,061,937
100,000,000 NATEXIS BANQUE POPULAIRE, NEW
YORK 6.87 1/16/01 100,000,000
100,000,000 NATEXIS BANQUE SA, NEW YORK 6.75 2/1/01 99,984,152
200,000,000 NATEXIS BANQUE SA, NEW YORK 6.58 1/22/01 199,971,043
100,000,000 UNION BANK OF SWITZERLAND,
STAMFORD 6.24 12/6/00 99,988,125
653,005,257
TOTAL CERTIFICATES OF DEPOSIT (COST
$653,005,257)
---------------
COMMERCIAL PAPER - 77.23%
305,959,000 ATLANTIS ONE-FUNDING
CORPORATION 6.73{::} 1/17/01 300,011,667
25,565,000 ATLANTIS ONE-FUNDING
CORPORATION 6.73{::} 1/26/01 25,026,260
200,000,000 ATLANTIS ONE-FUNDING
CORPORATION 6.68{::} 2/22/01 194,844,057
150,000,000 BAVARIA UNIVERSAL FUNDING
CORPORATION 6.56{::} 10/12/00 149,728,333
50,000,000 BAVARIA UNIVERSAL FUNDING
CORPORATION 6.58{::} 10/16/00 49,872,833
26,000,000 BETA FINANCE INCORPORATED 6.15{::} 10/6/00 26,000,000
51,500,000 BETA FINANCE INCORPORATED 6.66{::} 10/19/00 51,340,708
225,000,000 BETA FINANCE INCORPORATED 6.64{::} 1/25/01 225,000,000
102,500,000 BETA FINANCE INCORPORATED 6.75{::} 2/15/01 102,500,000
49,001,000 BILLS SECURITIZATION LIMITED 6.68{::} 11/10/00 48,652,766
65,000,000 BILLS SECURITIZATION LIMITED 6.73{::} 1/8/01 63,835,706
100,000,000 BILLS SECURITIZATION LIMITED 6.76{::} 1/9/01 98,193,250
210,000,000 BILLS SECURITIZATION LIMITED 6.76{::} 2/14/01 204,849,750
150,000,000 BILLS SECURITIZATION LIMITED 6.72{::} 2/20/01 146,170,284
34,750,000 CC (USA), INCORPORATED 6.17{::} 10/16/00 34,750,000
50,000,000 CC (USA), INCORPORATED 6.82{::} 10/16/00 49,872,639
50,000,000 CC (USA), INCORPORATED 7.27{::} 5/21/01 50,042,428
100,000,000 CHRISTIANA CAPITAL CORPORATION 6.72{::} 3/7/01 97,183,334
47,000,000 CHRISTIANIA CAPITAL CORP 6.50{::} 11/1/00 46,756,750
68,500,000 CHRISTIANIA CAPITAL CORP 6.83{::} 1/25/01 67,055,792
100,000,000 CHRISTIANIA CAPITAL CORP 6.83{::} 1/29/01 97,818,334
150,000,000 COMPASS SECURITIZATION LLC 6.79{::} 1/4/01 147,415,000
150,000,000 COMPASS SECURITIZATION LLC 6.89{::} 1/22/01 146,896,667
15,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.58{::} 10/12/00 14,972,708
124,150,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.58{::} 10/16/00 123,833,762
76,800,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.59{::} 10/20/00 76,548,480
124,206,000 CPI FUNDING CORPORATION 6.61{::} 10/25/00 123,684,645
210,000,000 CREDIT SUISSE FIRST BOSTON 6.69{::} 1/24/01 205,614,801
30,875,000 CREGEM NORTH AMERICA 6.72{::} 1/12/01 30,301,574
95,000,000 CROWN POINT CAPITAL COMPANY,
LLC 6.59{::} 10/23/00 94,637,021
25,000,000 DORADA FINANCE INCORPORATED 6.66{::} 10/20/00 24,918,125
150,000,000 DORADA FINANCE INCORPORATED 6.57{::} 1/16/01 149,995,865
69,027,000 FALCON ASSET SECURITIZATION
CORPORATION 6.56{::} 10/12/00 68,901,985
43,500,000 GAP INCORPORATED 6.76{::} 9/21/01 43,500,000
</TABLE>
23
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 94,000,000 GENERAL ELECTRIC CAPITAL
INTERNATIONAL FUNDING 6.75%{::} 2/2/01 $ 91,902,782
100,000,000 GIRO FUNDING CORPORATION 6.69{::} 2/22/01 97,418,056
200,000,000 GOLDMAN SACHS GROUP,
INCORPORATED 7.02{::} 11/6/00 198,679,723
50,000,000 GOVCO INCORPORATED 6.66{::} 10/20/00 49,836,250
162,000,000 GOVCO INCORPORATED 6.66{::} 10/25/00 161,322,075
17,975,000 GOVCO INCORPORATED 6.62{::} 11/6/00 17,861,059
52,000,000 GOVCO INCORPORATED 6.63{::} 11/8/00 51,651,543
87,014,000 GOVCO INCORPORATED 6.63{::} 11/9/00 86,415,150
50,000,000 GRAND FUNDING CORPORATION 6.56{::} 10/6/00 49,963,778
50,000,000 GRAND FUNDING CORPORATION 6.56{::} 10/12/00 49,909,445
55,000,000 GREYHAWK CAPITAL CORPORATION 6.73{::} 1/8/01 54,020,817
90,000,000 GREYHAWK CAPITAL CORPORATION 6.79{::} 1/10/01 88,355,000
27,872,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.82{::} 10/2/00 27,872,000
66,911,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.57{::} 10/11/00 66,801,768
59,005,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.56{::} 10/17/00 58,844,703
50,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.66{::} 10/30/00 49,745,278
75,000,000 IRISH PERMANENT TREASURY PLC 6.98{::} 2/28/01 72,932,625
38,000,000 K2 (USA) LLC 6.71{::} 11/13/00 37,709,174
24,000,000 K2 (USA) LLC 6.84{::} 1/16/01 23,533,600
41,000,000 K2 (USA) LLC 6.90{::} 1/22/01 40,150,480
53,000,000 K2 (USA) LLC 6.78{::} 2/9/01 51,746,404
22,500,000 K2 (USA) LLC 6.78{::} 2/12/01 21,955,531
35,500,000 K2 (USA) LLC 6.71{::} 3/1/01 34,538,542
51,000,000 K2 (USA) LLC 6.72{::} 3/5/01 49,581,917
26,500,000 K2 (USA) LLC 6.71{::} 3/15/01 25,716,513
25,320,000 K2 (USA) LLC 6.74{::} 5/9/01 24,326,507
160,318,000 KBC COMMERCIAL PAPER TRUST 6.57{::} 10/11/00 160,055,880
159,343,000 KBC COMMERCIAL PAPER TRUST 6.58{::} 10/13/00 159,025,067
45,879,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.57{::} 10/5/00 45,853,667
175,702,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.46{::} 10/12/00 175,396,962
50,000,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.71{::} 2/28/01 48,654,862
100,000,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.71{::} 3/2/01 97,273,612
68,883,000 LONE STAR FUNDING 6.56{::} 10/12/00 68,758,245
94,126,000 LONE STAR FUNDING 6.59{::} 10/23/00 93,766,360
92,106,000 LONE STAR FUNDING 6.59{::} 11/27/00 91,171,840
50,000,000 MOAT FUNDING, LLC 6.50{::} 10/16/00 49,877,500
70,000,000 MOAT FUNDING, LLC 6.84{::} 1/30/01 68,457,668
100,000,000 MOAT FUNDING, LLC 7.26{::} 2/13/01 97,435,390
50,000,000 MOAT FUNDING, LLC 6.69{::} 2/16/01 48,763,196
100,000,000 MOAT FUNDING, LLC 6.79{::} 2/20/01 97,434,584
93,262,000 MOAT FUNDING, LLC 6.83{::} 5/15/01 89,467,404
115,000,000 MORIARTY LIMITED 6.67{::} 10/13/00 114,769,489
200,000,000 MORIARTY LIMITED 6.66{::} 10/31/00 198,944,723
150,000,000 MORIARTY LIMITED 6.51{::} 11/2/00 149,197,875
181,734,000 NEPTUNE FUNDING CORPORATION 6.57{::} 10/2/00 181,734,000
25,000,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/4/00 24,990,903
110,409,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/6/00 110,328,647
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 92,217,000 NEPTUNE FUNDING CORPORATION 6.63%{::} 10/16/00 $ 91,981,902
63,591,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/17/00 63,417,450
90,000,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/19/00 89,721,625
94,818,000 OLD LINE FUNDING CORPORATION 6.56{::} 10/11/00 94,663,447
133,650,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.62{::} 10/4/00 133,601,441
100,718,000 REPEAT OFFERING SECURITIZATION
ENTITY 6.62{::} 10/25/00 100,298,453
168,150,000 SHEFFIELD RECEIVABLES
CORPORATION 6.56{::} 10/2/00 168,150,000
60,000,000 SIGMA FINANCE INCORPORATED 6.46{::} 10/10/00 59,916,667
100,000,000 SIGMA FINANCE INCORPORATED 6.48{::} 10/16/00 99,756,167
72,835,000 SIGMA FINANCE INCORPORATED 6.67{::} 10/19/00 72,609,373
50,000,000 SIGMA FINANCE INCORPORATED 7.05{::} 11/15/00 49,583,833
43,400,000 SIGMA FINANCE INCORPORATED 6.88{::} 1/12/01 42,582,272
76,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.58{::} 10/6/00 75,944,689
100,000,000 SPINTAB (SWEDMORTGAGE) AB 6.74{::} 1/9/01 98,198,750
119,000,000 SURREY FUNDING CORP. 6.57{::} 10/20/00 118,611,465
90,000,000 SWEDBANK (FORENINGS
SPARBANKER) 6.80{::} 10/26/00 89,601,000
158,000,000 SWEDBANK (FORENINGS
SPARBANKER) 6.82{::} 1/22/01 154,760,650
100,000,000 SYNDICATED LOAN FUNDING TRUST,
SERIES 1999-8 6.45 10/16/00 100,000,000
118,940,000 TRIPLE A ONE FUNDING 6.55{::} 10/5/00 118,875,376
30,000,000 VARIABLE FUNDING CAPITAL
CORPORATION 6.54 1/4/01 29,432,767
430,000,000 VENTURES BUSINESS TRUST 6.64{::} 10/10/00 429,371,833
75,000,000 WCP FUNDING, INCORPORATED 6.70{::} 2/1/01 73,337,750
9,489,291,028
TOTAL COMMERCIAL PAPER (COST $9,489,291,028)
---------------
MASTER NOTES - 0.14%
17,438,788 GENERAL ELECTRIC COMPANY++ 6.58 10/5/00 17,438,788
---------------
17,438,788
TOTAL MASTER NOTES (COST $17,438,788)
---------------
MUNICIPAL DEMAND NOTES - 0.14%
7,100,000 DURHAM, NC, COP, SERIES B++ 6.65 7/1/03 7,100,000
8,810,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.72 12/15/26 8,810,000
1,500,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES
SERIES A WACHOVIA BANK OF
NORTH CAROLINA LOC++ 6.65 3/1/17 1,500,000
17,410,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$17,410,000)
---------------
TIME DEPOSITS - 2.03%
150,000,000 BANCA COMMERCIALE ITALIANA,
LONDON 6.75 10/2/00 150,000,000
100,000,000 BANK OF IRELAND, DUBLIN 6.75 10/2/00 100,000,000
250,000,000
TOTAL TIME DEPOSITS (COST $250,000,000)
---------------
VARIABLE & FLOATING RATE FUNDING AGREEMENTS - 3.60%
42,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.88 12/28/00 42,250,000
50,000,000 GE LIFE & ANNUITY 6.63 7/2/01 50,000,000
50,000,000 GE LIFE & ANNUITY 6.67 7/2/01 50,000,000
250,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.90 2/9/01 250,000,000
50,000,000 UNITED OF OMAHA INSURANCE
COMPANY 6.72 6/27/01 50,000,000
442,250,000
TOTAL VARIABLE & FLOATING RATE FUNDING
AGREEMENTS (COST $442,250,000)
---------------
</TABLE>
25
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE NOTES - CORPORATE - 6.31%
$ 90,000,000 ASSOCIATES CORPORATION OF
NORTH AMERICA 6.66% 6/26/01 $ 90,000,000
85,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.68 3/1/01 85,000,000
42,500,000 BEAR STEARNS & COMPANY
INCORPORATED 6.77 3/15/01 42,500,000
21,250,000 BEAR STEARNS & COMPANY
INCORPORATED 6.77 4/9/01 21,248,715
50,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.67 6/15/01 50,000,000
100,100,000 BEAR STEARNS & COMPANY
INCORPORATED 6.96 8/1/01 100,254,037
22,000,000 CHRISTIANIA BANK 6.75 9/19/01 21,953,209
59,750,000 MORGAN STANLEY GROUP
INCORPORATED 6.76 3/15/01 59,750,000
54,500,000 SIGMA FINANCE INCORPORATED 6.78 10/5/00 54,500,000
60,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-7 6.91 10/16/00 60,000,000
65,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 2000-6 6.78 8/15/01 65,000,000
125,000,000 UNILEVER CAPITAL CORPORATION 6.65 9/7/01 125,000,000
775,205,961
TOTAL VARIABLE & FLOATING RATE NOTES -
CORPORATE (COST $775,205,961)
---------------
REPURCHASE AGREEMENTS - 2.20%
9,773,468 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.67 10/2/00 9,773,468
65,000,000 GOLDMAN SACHS CORPORATION
REPURCHASE AGREEMENT 6.75 10/2/00 65,000,000
195,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/2/00 195,000,000
269,773,468
TOTAL REPURCHASE AGREEMENTS (COST
$269,773,468)
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $12,251,464,847)* 99.71% $12,251,464,847
OTHER ASSETS AND LIABILITIES, NET 0.29 35,847,372
------- ---------------
TOTAL NET ASSETS 100.00% $12,287,312,219
------- ---------------
</TABLE>
++ VARIABLE RATE.
{::} YIELD TO MATURITY.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING 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.
26
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 12.45%
FEDERAL HOME LOAN BANK - 4.40%
$ 50,000,000 FEDERAL HOME LOAN BANK 6.51%{::} 1/30/01 $ 48,940,000
30,000,000 FEDERAL HOME LOAN BANK 6.71{::} 2/9/01 29,306,667
50,000,000 FEDERAL HOME LOAN BANK 6.66{::} 3/1/01 48,666,668
126,913,335
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.39%
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.44{::} 1/16/01 24,554,386
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.49{::} 1/31/01 48,929,486
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.57{::} 2/23/01 24,363,501
97,847,373
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.66%
21,375,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.44{::} 10/24/00 21,291,400
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.45{::} 10/25/00 39,835,933
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.60{::} 2/8/01 24,428,011
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.52{::} 2/22/01 48,740,806
134,296,150
--------------
359,056,858
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $359,056,858)
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE BONDS - 2.07%
FEDERAL HOME LOAN BANK - 1.21%
35,000,000 FEDERAL HOME LOAN BANK 6.68 5/8/01 34,947,322
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.86%
24,875,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.84 7/25/01 24,899,686
--------------
59,847,008
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE BONDS (COST $59,847,008)
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE NOTES - 19.36%
FEDERAL HOME LOAN BANK - 7.66%
50,000,000 FEDERAL HOME LOAN BANK 6.05 11/3/00 49,997,185
40,000,000 FEDERAL HOME LOAN BANK 6.35 2/1/01 39,990,895
40,000,000 FEDERAL HOME LOAN BANK 6.75 3/1/01 39,998,716
20,000,000 FEDERAL HOME LOAN BANK 6.66 4/6/01 19,992,698
30,000,000 FEDERAL HOME LOAN BANK 6.67 4/6/01 29,999,847
10,970,000 FEDERAL HOME LOAN BANK 7.08 6/29/01 10,996,619
30,000,000 FEDERAL HOME LOAN BANK 6.55 9/28/01 29,996,856
220,972,816
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.21%
35,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.50 1/19/01 34,996,744
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 9.28%
30,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.85 11/20/00 29,925,507
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 8.25 12/18/00 50,115,501
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.63 3/15/01 39,807,887
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.52 3/16/01 39,975,448
29,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.55 3/20/01 28,993,656
</TABLE>
27
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 19,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 7.25% 5/25/01 $ 19,059,953
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.64 9/18/01 24,997,599
35,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.64 9/18/01 34,987,413
267,862,964
--------------
STUDENT LOAN MORTGAGE ASSOCIATION - 1.21%
35,000,000 STUDENT LOAN MORTGAGE
ASSOCIATION 5.90 12/1/00 34,992,945
--------------
558,825,469
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE NOTES (COST $558,825,469)
--------------
VARIABLE & FLOATING RATE NOTES - AGENCY - 11.22%
FEDERAL HOME LOAN MORTGAGE COMPANY - 9.49%
199,000,000 FEDERAL HOME LOAN MORTGAGE
COMPANY++ 6.41 12/20/00 198,951,402
75,000,000 FEDERAL HOME LOAN MORTGAGE
COMPANY++ 6.53 1/10/01 74,980,535
273,931,937
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.73%
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION++ 6.46 11/13/00 49,995,138
--------------
323,927,075
TOTAL VARIABLE & FLOATING RATE NOTES -
AGENCY (COST $323,927,075)
--------------
REPURCHASE AGREEMENTS - 54.91%
112,744,129 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT 6.65 10/2/00 112,744,129
307,084,240 BEAR STEARNS REPURCHASE
AGREEMENT 6.65 10/2/00 307,084,240
250,000,000 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.67 10/2/00 250,000,000
65,100,000 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.68 10/2/00 65,100,000
300,000,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.65 10/2/00 300,000,000
550,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/2/00 550,000,000
1,584,928,369
TOTAL REPURCHASE AGREEMENTS (COST
$1,584,928,369)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,886,584,779)* 100.01% $2,886,584,779
OTHER ASSETS AND LIABILITIES, NET (0.01) (411,576)
------- --------------
TOTAL NET ASSETS 100.00% $2,886,173,203
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
++ VARIABLE RATE.
* 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.
28
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
ALABAMA - 0.96%
$ 6,655,000 BIRMINGHAM BAPTIST MEDICAL
CENTER AL SPECIAL CARE
FACILITIES FINANCE AUTHORITY
RV P FLOATS PA 354 5.72% 11/15/16 $ 6,655,000
3,225,000 JEFFERSON COUNTY AL SEWER RV
PA 487 R 5.62 2/1/38 3,225,000
9,880,000
TOTAL ALABAMA (COST $9,880,000)
--------------
ARIZONA - 1.68%
10,500,000 ABN AMRO LEASETOPS OT 2000-2
LEASETOPS CERTIFICATES AZ
NON-AMOUNT VARIABLE RATE ABN
AMRO BANK LOC 5.92 4/1/05 10,500,000
3,500,000 MARICOPA COUNTY AZ IDA MFHR
BONDS FLOATS PROJECT 5.82 11/1/32 3,500,000
3,260,000 PHOENIX AZ IDA MFH RV DEL MAR
TERRACE PROJECT SERIES A U.S.
BANK TRUST N.A. LOC 5.85 10/1/29 3,260,000
17,260,000
TOTAL ARIZONA (COST $17,260,000)
--------------
ARKANSAS - 0.01%
100,000 FAYETTEVILLE AR PUBLIC
FACILITIES BOARD HEALTH CARE
RV BUTTERFIELD TRAIL VILLAGE
PROJECT ARVEST TRUST COMPANY
N.A. LOC 5.65 9/1/27 100,000
--------------
100,000
TOTAL ARKANSAS (COST $100,000)
--------------
CALIFORNIA - 1.53%
5,000,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN RV
SERIES A STATE STREET B&T CA
LOC 4.70 6/1/01 5,000,000
5,850,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN RV
SERIES E-1 STUDENT LOAN
MARKETING LOC 5.50 12/1/22 5,850,000
100,000 NEWPORT BEACH CA HEALTH CARE
RV HOAG MEMORIAL HOSPITAL
SERIES A BANK OF AMERICA LOC 5.40 10/1/26 100,000
4,200,000 NEWPORT BEACH CA HEALTH CARE
RV HOAG MEMORIAL PRESBYTERIAN
HOSPITAL PROJECT BANK OF
AMERICA NT & SA LOC 5.40 10/1/22 4,200,000
600,000 ORANGE COUNTY CA IMPROVEMENT
BONDS IDA RV SOCIETE GENERALE
LOC 4.75 9/2/18 600,000
15,750,000
TOTAL CALIFORNIA (COST $15,750,000)
--------------
COLORADO - 3.51%
1,500,000 COLORADO HFA MFHR MULTI-FAMILY
DIAMOND 1 SERIES FNMA INSURED 5.55 10/15/16 1,500,000
2,500,000 DENVER CO CITY & COUNTY
AIRPORT REVENUE BONDS
SERIES A 8.50 11/15/00 2,560,850
8,700,000 DENVER CO CITY & COUNTY SD #1
FLOATS PT 1135 3.90 10/26/00 8,700,000
3,000,000 JEFFERSON COUNTY CO SD 5.00 6/30/01 3,014,520
11,150,000 ROARING FORKS CO 5.72 12/1/05 11,150,000
9,000,000 ROARING FORKS CO 5.72 6/1/05 9,000,000
35,925,370
TOTAL COLORADO (COST $35,925,370)
--------------
FLORIDA - 0.82%
3,205,000 ESCAMBIA COUNTY FL HFA SMR 5.67 10/1/31 3,205,000
1,175,000 FLORIDA STATE FRN SERIES 117 5.62 7/1/27 1,175,000
3,970,000 HILLSBOROUGH COUNTY FL HFA
SFHR GNMA & FNMA INSURED 4.50 1/1/30 3,970,000
8,350,000
TOTAL FLORIDA (COST $8,350,000)
--------------
GEORGIA - 2.19%
1,500,000 BUFORD GA HOUSING AUTHORITY
MFHR SERIES 1172 5.77 9/1/25 1,500,000
500,000 CLAYTON COUNTY GA HOUSING
AUTHORITY MFHR RIVERS EDGE
DEVELOPMENT BANKERS TRUST
COMPANY LOC 5.60 8/1/06 500,000
</TABLE>
29
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
GEORGIA (continued)
$ 3,500,000 COBB COUNTY GA SD GO BANC OF
AMERICA LOC 4.38% 12/29/00 $ 3,503,307
2,695,000 FULTON COUNTY GA IDR
GUARANTEED BY ADP 4.30 9/1/12 2,695,000
6,000,000 LEE COUNTY GA DEVELOPMENT
AUTHORITY RV WOODGRAIN
MILLWORK INCORPORATED PROJECT
WEST ONE BANK IDAHO INSURED 6.20 10/1/10 6,000,000
3,200,000 MARIETTA GA MFHR SUMMIT
PROJECT SERIES A FNMA INSURED 5.75 5/15/07 3,200,000
5,000,000 RICHMOND COUNTY GA DEVELOPMENT
AUTHORITY SOLID WASTER
DISPOSAL IDR EVERGREEN NYLON
BANQUE NATIONALE PARIS LOC 5.60 7/1/32 5,000,000
22,398,307
TOTAL GEORGIA (COST $22,398,307)
--------------
HAWAII - 0.51%
3,350,000 HAWAII STATE DEPARTMENT OF
BUDGET & FINANCE SPECIAL
PURPOSE MORTGAGE RV KUAKINI
MEDICAL CENTER PROJECT BANK OF
HAWAII LOC 4.35 7/1/04 3,350,000
1,900,000 HAWAII STATE GO SERIES CQ FGIC
INSURED 5.00 10/2/00 1,900,000
5,250,000
TOTAL HAWAII (COST $5,250,000)
--------------
IDAHO - 0.83%
6,980,000 IDAHO HEALTH FACILITIES
AUTHORITY HEALTH CARE RV ST.
LUKES REGIONAL MEDICAL CENTER
PROJECT, WEST ONE BANK IDAHO
LOC 5.65 5/1/22 6,980,000
1,500,000 NEZ PERCE COUNTY IDAHO PCR
BONDS RATE-DATES-POTLATCH 84
BANK ONE CHICAGO LOC 5.55 12/1/14 1,500,000
8,480,000
TOTAL IDAHO (COST $8,480,000)
--------------
ILLINOIS - 6.16%
9,700,000 CHICAGO IL GO BONDS EQUIPMENT
NOTES HARRIS TRUST & SAVINGS
LOC 3.90 10/5/00 9,700,000
14,800,000 CHICAGO IL GO BONDS SERIES A
LANDESBANK HESSEN LOC 3.90 12/7/00 14,800,000
1,300,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY DEVELOPMENT RV
REVCOR INCORPORATED PROJECT
LASALLE NATIONAL BANK LOC 5.67 6/1/08 1,300,000
6,800,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY RV ART
INSTITUTE OF CHICAGO GO OF
INSTITUTIONAL 5.55 3/1/27 6,800,000
10,000,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY EDUCATION
RV SERIES A3 HARRIS TRUST &
SAVINGS LOC 4.75 2/5/01 10,000,000
2,700,000 ILLINOIS HFFA RV ELMHURST
MEMORIAL HOSPITAL PROJECT
SERIES B NORTHERN TRUST
COMPANY LOC 5.70 1/1/20 2,700,000
1,425,000 ILLINOIS HFFA RV SERIES 166
AMBAC INSURED 5.62 2/15/24 1,425,000
6,800,000 LOMBARD IL IDR BONDS 2500
HIGHLAND AVENUE MID-AMERICAN
FEDERAL SAVINGS & LOAN LOC 5.90 12/1/06 6,800,000
4,400,000 MADISON COUNTY IL
ENVIRONMENTAL IMPROVEMENT RV
SERIES A 5.70 3/1/33 4,400,000
1,200,000 SCHAUMBERG IL MFHR WINDSONG
APARTMENTS PROJECT LASALLE
NATIONAL BANK LOC 5.67 2/1/24 1,200,000
4,000,000 SPRINGFIELD IL TRANSPORTATION
RV GUARANTEED BY ALLIED SIGNAL 5.60 10/15/16 4,000,000
63,125,000
TOTAL ILLINOIS (COST $63,125,000)
--------------
INDIANA - 2.56%
5,200,000 INDIANA HFFA RV ASCENSION
HEALTH CREDIT SERIES B 5.75 11/15/39 5,200,000
5,375,000 INDIANA STATE HFA MFHR PEDCOR
INVESTMENTS M-A 5.80 1/1/29 5,375,000
2,000,000 INDIANA STATE EDUCATIONAL
FACILITIES AUTHORITY EDUCATION
RV ST. MARY PROJECT BANK ONE
INDIANA N.A. LOC 5.55 2/15/26 2,000,000
5,000,000 INDIANAPOLIS IN AIRPORT
AUTHORITY RV SERIES PA 632 5.87 11/15/31 5,000,000
8,700,000 INDIANAPOLIS IN MFHR HOUSING
CROSSING PARTNERS PROJECT
NATIONAL CITY BANK LOC 5.85 3/1/31 8,700,000
26,275,000
TOTAL INDIANA (COST $26,275,000)
--------------
</TABLE>
30
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
IOWA - 4.30%
$10,640,000 IOWA FINANCE AUTHORITY SFMR
SERIES N 4.40% 1/1/08 $ 10,640,000
2,200,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION RV CLARKE
COLLEGE PROJECT SERIES A US
BANCORP LOC 5.50 5/24/01 2,206,713
3,500,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION RV
MORNINGSIDE PROJECT SERIES G
US BANCORP LOC 5.50 5/24/01 3,510,680
2,750,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION RV PALMER
UNIVERSITY PROJECT SERIES H US
BANCORP LOC 5.50 5/24/01 2,758,391
1,000,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION FACILITIES
RV WARTBURG PROJECT ALLIED
IRISH BANK PLC LOC 5.70 3/1/30 1,000,000
13,390,000 IOWA SCHOOL CORPORATION
EDUCATIONAL FACILITIES RV
BONDS WARRANTS CERTIFICATES
FSA INSURED 4.75 2/1/01 13,419,993
4,700,000 MASON CITY IA IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK LOC 6.05 9/1/14 4,700,000
5,800,000 URBANDALE IA IDR INTERSTATE
ACRES L.P. PROJECT GUARANTEED
BY PRINCIPAL MUTUAL LIFE
INSURANCE 5.80 12/1/14 5,800,000
44,035,777
TOTAL IOWA (COST $44,035,777)
--------------
KANSAS - 0.58%
1,200,000 PRAIRIE VILLAGE KS MFHR J.C.
NICHOLS COMPANY PROJECT
GUARANTEED BY PRINCIPAL MUTUAL
LIFE INSURANCE 4.50 12/1/15 1,200,000
4,790,000 SEDGWICK & SHAWNEE COUNTIES KS
SFMR SERIES 1188 5.70 12/1/13 4,790,000
5,990,000
TOTAL KANSAS (COST $5,990,000)
--------------
KENTUCKY - 3.15%
3,600,000 KENTUCKY ASSET/LIABILITY
COMMISSION GENERAL FUND RV 5.25 6/27/01 3,617,951
5,600,000 LEXINGTON-FAYETTE URBAN COUNTY
AIRPORT CORPORATION KY
APARTMENT RV MBIA INSURED 5.70 7/1/13 5,600,000
1,100,000 MAYFIELD KY MULTI-CITY LEASE
RV PNC BANK LOC 5.60 7/1/26 1,100,000
21,995,000 RUSSELL KY RV 5.72 12/1/00 21,995,000
32,312,951
TOTAL KENTUCKY (COST $32,312,951)
--------------
LOUISIANA - 5.90%
1,105,000 CALCASIEU PARISH LA SALES TAX
DISTRICT NO. 4 TAX RV ROAD
IMPROVEMENT CREDIT DE FRANCE
LOC 5.65 9/1/01 1,105,000
9,265,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY FLOATS-PT
229 4.45 12/1/24 9,265,000
3,955,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY FLOATS-PT
345 5.67 6/1/20 3,955,000
6,205,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY MORTGAGE RV 4.45 6/1/23 6,205,000
5,000,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY SFHR
SERIES B 4.25 10/2/00 5,000,000
2,200,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV WILLIS
KNIGHTON MEDICAL PROJECT AMBAC
INSURED 5.40 9/1/23 2,200,000
2,900,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV WILLIS
KNIGHTON MEDICAL CENTER
PROJECT 5.40 9/1/25 2,900,000
15,100,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV
WILLIS-KNIGHTON MEDICAL CENTER
AMBAC INSURED 5.40 9/1/27 15,100,000
9,700,000 NATCHITOCHES PARISH LA TRUST
JOIST CORPORATION PROJECT
WACHOVIA BANK LOC 6.05 10/2/00 9,700,000
5,000,000 WEST BATON ROUGE PARISH LA
INDUSTRIAL DISTRICT NO. 3 IDR
DOW CHEMICAL CORPORATION
PROJECT 5.75 12/1/23 5,000,000
60,430,000
TOTAL LOUISIANA (COST $60,430,000)
--------------
MAINE - 1.29%
11,600,000 MAINE HEHFA RV PIPER SHORES
PROJECT SERIES B PARIBAS LOC 5.90 1/1/29 11,600,000
</TABLE>
31
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MAINE (continued)
$ 1,600,000 REGIONAL WASTE SYSTEMS
INCORPORATED ME SOLID WASTE
RES RECOVERY RV SERIES K 5.90% 7/1/12 $ 1,600,000
13,200,000
TOTAL MAINE (COST $13,200,000)
--------------
MARYLAND - 0.48%
4,900,000 HOWARD COUNTY MD MFHR SHERWOOD
CROSSING LIMITED PROJECT
GUARDIAN SAVINGS & LOAN LOC 4.85 6/1/01 4,900,000
--------------
4,900,000
TOTAL MARYLAND (COST $4,900,000)
--------------
MASSACHUSETTS - 2.35%
15,000,000 MASSACHUSETTS STATE HOUSING
FINANCE AGENCY SFH RV
SERIES C 4.90 6/1/01 15,000,000
9,000,000 MASSACHUSETTS STATE RV
ANTICIPATION NOTES SERIES A 5.00 9/6/01 9,056,074
24,056,074
TOTAL MASSACHUSETTS (COST $24,056,074)
--------------
MICHIGAN - 0.68%
1,400,000 JACKSON COUNTY MI ECONOMIC
DEVELOPMENT CORPORATION IDR
VISTA GRANDE VILLA PROJECT
MICHIGAN NATIONAL BANK LOC 5.65 6/1/27 1,400,000
5,600,000 MICHIGAN STATE BUILDING
AUTHORITY REVENUE FACILITIES
PROJECT SERIES II 5.00 10/15/00 5,602,223
7,002,223
TOTAL MICHIGAN (COST $7,002,223)
--------------
MINNESOTA - 7.78%
1,350,000 ARDEN HILLS MN HOUSING &
HEALTH CARE FACILITIES RV
PRESBYTERIAN HOMES SERIES B
U.S. BANK N.A. LOC 5.65 9/1/29 1,350,000
130,000 BLAINE MN IDR BONDS SUPERVALU
INCORPORATED PROJECT WACHOVIA
CORPORATION LOC 5.95 11/1/13 130,000
10,000,000 CITY OF ROCHESTER MN 4.25 11/14/00 10,000,000
750,000 COHASSET MN IDR RV MINNESOTA
POWER & LIGHT CORPORATION
PROJECT SERIES A ABN AMRO BANK
N.V. LOC 5.65 6/1/20 750,000
400,000 CRYSTAL MN MFHR CRYSTAL
APARTMENTS L.P. PROJECT FHLB
LOC 5.85 5/1/27 400,000
3,000,000 DAKOTA COUNTY MN DEVELOPMENT
AGENCY IDR FNMA & GNMA
MORTGAGE BACKED SERIES C
FNMA & GNMA INSURED 4.30 4/1/01 3,000,000
1,200,000 DULUTH MN EDA HEALTH CARE
FACILITIES RV MILLER DWAN
MEDICAL CENTER PROJECT CREDIT
LOCAL DE FRANCE LOC 5.65 6/1/19 1,200,000
595,000 DULUTH MN TAX INCREMENT
REVENUE LAKE SUPERIOR PAPER
PROJECT WACHOVIA BANK GEORGIA
LOC 5.40 9/1/10 595,000
7,520,000 EAGAN MN MFHR FLOATS-PT 1221
PROJECT 5.77 7/1/09 7,520,000
750,000 FULDA MN INDEPENDENT SCHOOL
DISTRICT NO 505 EDUCATION
FACILITIES RV SD CREDIT
PROGRAM LOC 4.55 9/1/01 751,067
1,500,000 GOLDEN VALLEY MN IDA RV
UNICARE HOMES PROJECT BANK OF
AMERICA N.A. LOC 5.55 9/1/14 1,500,000
1,800,000 MANKATO MN MANKATO AREA FAMILY
YMCA PROJECT U.S. BANK N.A.
LOC 5.80 5/1/06 1,800,000
1,410,000 MINNEAPOLIS & ST PAUL MN
METROPOLITAN COMMUNITY AIRPORT
RV SERIES SG136+ 5.62 1/1/25 1,410,000
2,249,000 MINNEAPOLIS MN 5.62 3/1/10 2,249,000
3,500,000 MINNEAPOLIS MN MULTIFAMILY RV 5.85 12/1/30 3,500,000
1,250,000 MINNEAPOLIS MN RV PEOPLE
SERVING PEOPLE PROJECT
SERIES A US BANK LOC 5.75 10/1/21 1,250,000
1,000,000 MINNEAPOLIS MN RV PEOPLE
SERVING PEOPLE PROJECT
SERIES A US BANK LOC+ 5.75 10/1/21 1,000,000
4,985,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATE
INDENTURE SERIES A 4.25 2/28/01 4,985,925
4,000,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATE
INDENTURE SERIES A 5.00 8/9/01 4,022,772
5,000,000 MINNESOTA STATE HFA SINGLE
FAMILY MORTGAGE SERIES H
LANDESBANK INSURED 4.40 8/30/01 5,000,000
5,000,000 MINNESOTA STATE HEFA RV
UNIVERSITY OF ST. THOMAS
SERIES C 5.45 4/1/25 5,000,000
</TABLE>
32
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MINNESOTA (continued)
$ 1,200,000 MINNESOTA STATE HOUSING
FINANCE AGENCY SFHR SERIES E
PAINEWEBBER LOC++ 4.35% 5/1/01 $ 1,200,000
2,090,000 MINNESOTA STATE RV SERIES A 5.00 6/30/01 2,100,061
900,000 NEW BRIGHTON MN IDR RV UNICARE
HOMES INCORPORATED PROJECT
U.S. BANK TRUST N.A. LOC++ 5.55 12/1/14 900,000
2,000,000 ROBBINSDALE MN IDR UNICARE
HOMES INCORPORATED PROJECT
BANK OF AMERICA N.A. LOC++ 5.55 10/1/14 2,000,000
3,500,000 SAINT CLOUD MN HOSPITAL
FACILITIES REVENUE BONDS ST.
CLOUD HOSPITAL PROJECT
SERIES B 7.00 7/1/01 3,636,920
1,700,000 SAINT CLOUD MN HOSPITAL
FACILITIES REVENUE BONDS ST.
CLOUD HOSPITAL PROJECT
SERIES C AMBAC INSURED 6.75 7/1/01 1,762,317
1,275,000 SOUTHERN MINNESOTA MUNICIPAL
POWER AGENCY POWER RV
SERIES A FGIC- TCRS INSURED 5.30 1/1/01 1,278,686
3,000,000 ST. LOUIS PARK MN CATHOLIC
FINANCIAL CORPORATION ALLIED
IRISH BANK PLC LOC++ 5.45 10/1/25 3,000,000
330,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
HOUSING RV IRIS PARK PLACE
PROJECT U.S. BANK TRUST N.A.
LOC 5.70 8/1/13 330,000
6,050,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
UTILITIES RV CREDIT LOCAL
DE FRANCE LOC 5.85 12/1/12 6,050,000
79,671,748
TOTAL MINNESOTA (COST $79,671,748)
--------------
MISSISSIPPI - 0.24%
2,500,000 MISSISSIPPI BUSINESS FINANCE
CORPORATION MISSISSIPPI RV
MISSISSIPPI COLLEGE PROJECT
SERIES B BANK OF AMERICA N.A.
LOC 5.70 2/1/09 2,500,000
--------------
2,500,000
TOTAL MISSISSIPPI (COST $2,500,000)
--------------
MISSOURI - 4.49%
14,570,000 KANSAS CITY MO IDA MFHR BONDS
COACH HOUSE II PROJECT
GUARANTEED BY PRINCIPAL MUTUAL
LIFE INSURANCE 4.50 12/1/15 14,570,000
2,825,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN RV
SERIES A STATE STREET B&T
CORPORATION LOC 5.50 6/1/17 2,825,000
1,225,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD RECREATIONAL
FACILITIES RV YMCA GREATER ST.
LOUIS PROJECT SERIES B BANK OF
AMERICA N.A. INSURED 5.70 9/1/02 1,225,000
21,600,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD LEASE RV
MISSOURI ASSOCIATION MUNICIPAL
UTILITIES LEASE PROJECT SPA
TRANSAMERICA LIFE INSURANCE 5.65 12/1/22 21,600,000
3,300,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY RV 5.65 7/1/35 3,300,000
2,500,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES RV ST.
LOUIS UNIVERSITY FGIC INSURED 5.70 12/1/05 2,500,000
46,020,000
TOTAL MISSOURI (COST $46,020,000)
--------------
MONTANA - 0.70%
7,140,000 MONTANA STATE BOARD OF
INVESTMENTS MUNICIPAL FINANCE
CONSTRUCTION INTERCAP PROGRAM
RV 4.35 3/1/09 7,140,000
--------------
7,140,000
TOTAL MONTANA (COST $7,140,000)
--------------
NEVADA - 0.54%
5,500,000 WASHOE COUNTY NV 5.70 12/1/20 5,500,000
--------------
5,500,000
TOTAL NEVADA (COST $5,500,000)
--------------
</TABLE>
33
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
NEW HAMPSHIRE - 0.14%
$ 1,400,000 NEW HAMPSHIRE HIGHER
EDUCATION & HEALTH FACILITIES
AUTHORITY RV MUNICIPAL TRUST
RECEIPTS SERIES SG-19 5.67% 6/1/23 $ 1,400,000
--------------
1,400,000
TOTAL NEW HAMPSHIRE (COST $1,400,000)
--------------
NEW MEXICO - 0.54%
500,000 ALBUQUERQUE NM AIRPORT RV
BANKAMERICA NATIONAL TRUST LOC 5.40 7/1/14 500,000
2,400,000 BLOOMFIELD NM GO SERIES A LA
SALLE NATIONAL BANK LOC 5.70 11/15/10 2,400,000
1,000,000 ESPANOLA NM HEALTH CARE RV
SERIES A LA SALLE NATIONAL
BANK LOC 5.70 11/15/10 1,000,000
1,585,000 SILVER CITY NM GO SERIES A LA
SALLE NATIONAL BANK LOC 5.70 11/15/10 1,585,000
5,485,000
TOTAL NEW MEXICO (COST $5,485,000)
--------------
NEW YORK - 4.14%
12,735,000 IBM TAX EXEMPT GRANTOR TRUST
OTHER RV IBM PROJECT
SERIES 1999-C 5.77 3/14/06 12,735,000
22,945,000 LONG ISLAND POWER AUTHORITY NY
ELECTRIC SYSTEM RV FRN PA 586 5.72 12/1/29 22,945,000
6,570,000 NEW YORK STATE URBAN
DEVELOPMENT REVENUE BONDS 7.63 1/1/01 6,752,485
42,432,485
TOTAL NEW YORK (COST $42,432,485)
--------------
NORTH CAROLINA - 0.48%
4,900,000 NORTH CAROLINA EDUCATIONAL
FACILITIES FINANCE AGENCY
EDUCATION RV GASTON DAY SCHOOL
PROJECT BANK OF AMERICA LOC 5.70 7/1/20 4,900,000
--------------
4,900,000
TOTAL NORTH CAROLINA (COST $4,900,000)
--------------
OHIO - 3.18%
14,481,000 ABN AMRO LEASETOPS 2000-1
LEASETOPS CERTIFICATES 144A
ABN-AMRO BANK N.V. LOC 5.90 8/7/02 14,481,000
2,000,000 CLERMONT COUNTY OH HOSPITAL
FACILITIES RV MERCY HEALTH
SYSTEMS SERIES B 5.70 9/1/21 2,000,000
3,000,000 GROVE CITY OH MFHR REGENCY
ARMS APARTMENTS PROJECT 5.80 6/15/30 3,000,000
5,000,000 HAMILTON COUNTY OH IDR
COMMUNITY URBAN REDEVELOPMENT
PROJECT NATIONAL WESTMINSTER
LOC 4.30 10/15/12 5,000,000
1,000,000 OHIO ST PFC HIGHER EDUCATION
FACILITIES RV SERIES II A
AMBAC INSURED 6.30 5/1/01 1,030,440
2,800,000 WARREN COUNTY OH IDR
CINCINNATI ELECTRIC
CORPORATION PROJECT ROYAL BANK
OF CANADA LOC 5.90 9/1/15 2,800,000
4,300,000 WOOSTER OH IDR ALLEN GROUP
INCORPORATED NATIONAL BANK OF
DETROIT LOC 5.65 12/1/10 4,300,000
32,611,440
TOTAL OHIO (COST $32,611,440)
--------------
OKLAHOMA - 2.31%
2,515,000 OKLAHOMA COUNTY OK FINANCE
AUTHORITY IDR PERRINE OFFICE
PROJECT FGIC INSURED 4.30 12/1/14 2,515,000
2,625,000 OKLAHOMA COUNTY OK IDR CARBON
OFFICE FGIC INSURED 4.30 12/1/14 2,625,000
13,500,000 OKLAHOMA STATE WATER RESERVE
BOARD STATE LOAN PROGRAM RV
UNION BANK OF SWITZERLAND LOC 4.05 3/1/01 13,500,000
5,000,000 TULSA PORT CATOOSA OK IDA RV
ASPHALT PRODUCTIONS BANK OF
AMERICA LOC++ 5.75 10/1/09 5,000,000
23,640,000
TOTAL OKLAHOMA (COST $23,640,000)
--------------
OREGON - 1.27%
3,000,000 MULTNOMAH COUNTY OR HIGHER
EDUCATIONAL RV CONCORDIA
UNIVERSITY OF PORTLAND PROJECT
ALLIED IRISH BANK PLC LOC++ 5.70 12/1/29 3,000,000
10,000,000 OREGON STATE HOUSING &
COMMUNITY SERVICES DEPARTMENT
SFHR SINGLE FAMILY MORTGAGE
PROJECT SERIES G SALOMON SMITH
BARNEY LOC 4.40 2/1/01 10,000,000
13,000,000
TOTAL OREGON (COST $13,000,000)
--------------
</TABLE>
34
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
OTHER - 2.60%
$10,000,000 ABN AMRO MUNITOPS COP ABN AMRO
LOC 5.69% 12/6/06 $ 10,000,000
16,615,182 PITNEY BOWES CREDIT
CORPORATION LEASETOPS TRUST
SERIES 1999-2 AMBAC INSURED 5.95 3/16/05 16,615,183
26,615,183
TOTAL OTHER (COST $26,615,183)
--------------
PENNSYLVANIA - 3.23%
2,090,000 ALLEGHENY COUNTY PA GO
SERIES C-34 MBIA-IBC INSURED 8.50 2/15/01 2,122,355
1,100,000 ALLEGHENY COUNTY PA IDA RV
SERIES C REMARKETED 12/1/98
DRESDNER BANK LOC++ 5.65 7/1/27 1,100,000
1,100,000 BUTLER COUNTY PA IDA PCR BONDS
PENNZOIL CORPORATION PROJECT
MELLON BANK LOC 5.10 12/1/12 1,100,000
5,145,000 CHARTIERS VALLEY PA
INDUSTRIAL & COMMERCIAL
DEVELOPMENT AUTHORITY IDR
GUARANTEED BY ADP INCORPORATED 4.41 11/15/17 5,145,000
3,700,000 PHILADELPHIA PA IDR REGIONAL
PERFORMING ARTS CENTER PROJECT
FIRST UNION NATIONAL BANK 5.40 6/1/25 3,700,000
8,700,000 QUAKERTOWN PA GENERAL
AUTHORITY RV POOLED FINANCING
PROGRAM SERIES A PNC BANK LOC 4.35 6/1/28 8,700,000
3,000,000 QUAKERTOWN PA HEALTH CARE RV
HOSPITAL GROUP POOLED
FINANCING SERIES A PNC BANK
LOC 4.35 7/1/26 3,000,000
4,200,000 QUAKERTOWN PA HEALTH CARE RV
HOSPITAL GROUP POOLED
FINANCING PNC BANK LOC 4.35 7/1/05 4,200,000
4,000,000 SAYRE PA HCFR VHA PA FINANCING
PROJECT SERIES A MIC-PAC AMBAC
INSURED 5.65 12/1/20 4,000,000
33,067,355
TOTAL PENNSYLVANIA (COST $33,067,355)
--------------
SOUTH CAROLINA - 3.07%
15,995,000 SOUTH CAROLINA JOBS ECONOMIC
DEVELOPMENT AUTHORITY ECONOMIC
DEVELOPMENT RV SERIES 338 5.72 12/1/00 15,995,000
5,400,000 SOUTH CAROLINA JOBS ECONOMIC
DEVELOPMENT AUTHORITY ECONOMIC
DEVELOPMENT RV LATI INDUSTRIES
INCORPORATED PROJECT BANK OF
AMERICA N.A. LOC 5.75 8/1/14 5,400,000
2,005,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY UTILITIES RV
FGIC INSURED 5.62 1/1/23 2,005,000
8,055,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY RV
SERIES SG-2 MBIA INSURED 5.62 7/1/21 8,055,000
31,455,000
TOTAL SOUTH CAROLINA (COST $31,455,000)
--------------
TENNESSEE - 2.91%
20,000,000 CLARKSVILLE TN PUBLIC BUILDING
AUTHORITY RV POOLED FINANCING
TENNESSEE MUNICIPAL BOND
FUNDING BANK OF AMERICA LOC 5.70 6/1/29 20,000,000
1,800,000 METROPOLITAN GOVERNMENTS OF
NASHVILLE & DAVIDSON COUNTIES
TN HEALTH & EDUCATION
FACILITIES RV ALIVE HOSPICE
INCORPORATED PROJECT 5.70 8/1/19 1,800,000
5,000,000 MONTGOMERY COUNTY TN PUBLIC
BUILDING AUTHORITY RV POOLED
FINANCING TENNESSEE COUNTY
LOAN POOL 5.70 9/1/29 5,000,000
3,000,000 VOLUNTEER STATE TN STUDENT
FUNDING CORP STUDENT LOAN RV
SERIES A-3 BANK OF AMERICA
NT & SA LOC 5.50 12/1/17 3,000,000
29,800,000
TOTAL TENNESSEE (COST $29,800,000)
--------------
TEXAS - 11.65%
6,590,000 AUSTIN TX UTILITIES SYSTEM RV
SERIES G AMBAC INSURED 5.62 11/15/11 6,590,000
1,100,000 BEXAR COUNTY TX HOUSING
FINANCE CORPORATION MFHR
CREIGHTONS MILL DEVELOPMENT
PROJECT SERIES A GUARANTEED BY
NEW ENGLAND MUTUAL LIFE
INSURANCE COMPANY 5.60 8/1/06 1,100,000
10,000,000 BOARD OF REGENTS 4.50 10/11/00 10,000,000
9,000,000 CALHOUN COUNTY TX SOLID WASTE
DISPOSAL RV FORMOSA PLASTICS
CORPORATION PROJECT 5.75 5/1/25 9,000,000
7,000,000 CARROLL TX ISD SCHOOL BUILDING
PROJECT PSF INSURED 5.00 1/25/01 7,015,160
5,000,000 HARRIS COUNTY TX HOUSING
FINANCE CORPORATION ARBOR II
LIMITED PROJECT 4.00 10/2/00 5,000,000
</TABLE>
35
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
TEXAS (continued)
$ 1,660,000 HARRIS COUNTY TX HEALTH
FACILITIES AUTHORITY HEALTH
CARE RV ST. LUKES EPISCOPAL
HOSPITAL PROJECT SERIES B
MORGAN GUARANTY TRUST LOC 5.50% 2/15/27 $ 1,660,000
6,100,000 HARRIS COUNTY TX HFR FLOATER
CTFS PROJECT SERIES 357 MBIA
INSURED 5.67 7/1/09 6,100,000
1,500,000 NORTH CENT TX HEALTH
FACILITIES DEVELOPMENT
CORPORATION HEALTH CARE RV
PRESBYTERIAN MEDICAL CENTER
PROJECT SERIES C TEXAS
COMMERCE BANK N.A. LOC 5.50 12/1/15 1,500,000
1,000,000 PANHANDLE-PLAINS TX HIGHER
EDUCATIONAL AUTHORITY
INCORPORATED STUDENT LOAN RV
SERIES A STUDENT LOAN
MARKETING LOC 5.50 6/1/21 1,000,000
5,300,000 PASEDENA TX INDEPENDENT SC
SERIES A PSF-GDT INSURED 5.00 1/18/01 5,310,779
200,000 SABINE RIVER AUTHORITY TX PCR
TEXAS UTILITIES PROJECT
SERIES A AMBAC INSURED 5.55 3/1/26 200,000
16,800,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY INCORPORATED
EDUCATIONAL FACILITIES RV MBIA
INSURED 5.50 12/1/29 16,800,000
2,700,000 TARRANT COUNTY TX HOUSING
FINANCE CORPORATION MFHR
SIERRA PROJECT FNMA COLL
INSURED 5.85 2/15/27 2,700,000
920,000 TARRANT COUNTY TX MFHR BONDS
SINGLE FAMILY APARTMENTS
PROJECT SUNTRUST BANK
NASHVILLE LOC 5.55 11/1/17 920,000
2,900,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
SFHR SERIES PT 136 MBIA
INSURED 5.67 3/1/17 2,900,000
1,700,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
MFHR SERIES 1215 5.82 12/1/39 1,700,000
600,000 TEXAS STATE GO PUBLIC FINANCE
AUTHORITY SERIES B 5.25 10/2/00 600,000
10,000,000 TEXAS STATE SERIES D 5.65 8/31/01 10,000,000
20,000,000 TEXAS STATE TAX & REVENUE
ANTICIPATION NOTES 4.27 8/31/01 20,163,300
9,115,000 TRAVIS COUNTY TX HOUSING
FINANCE CORP MFHR SERIES 1144 5.92 1/1/2041 9,115,000
119,374,239
TOTAL TEXAS (COST $119,374,239)
--------------
UTAH - 0.21%
2,100,000 UTAH STATE BOARD REGENTS
STUDENT LOAN RV SERIES L AMBAC
INSURED 5.50 11/1/25 2,100,000
--------------
2,100,000
TOTAL UTAH (COST $2,100,000)
--------------
VIRGINIA - 0.96%
9,800,000 NORFOLK VA AIRPORT RV 4.35 1/16/01 9,800,000
--------------
9,800,000
TOTAL VIRGINIA (COST $9,800,000)
--------------
WASHINGTON - 7.41%
8,000,000 LAKE TAPPS PARKWAY WA 5.50 12/1/19 8,000,000
2,500,000 LAKE TAPPS PARKWAY WA WATER &
SEWER RV SERIES B US BANK N.A.
LOC 5.50 12/1/19 2,500,000
11,590,000 SEATTLE NORTHWEST SECURITIES
CORP 4.40 10/6/00 11,584,334
6,740,000 SEATTLE WA 4.30 2/15/01 6,740,000
7,600,000 WASHINGTON PUBLIC POWER SUPPLY
SYSTEM POWER RV NUCLEAR
PROJECT #1 MUNICIPAL
SECURITIES TRUST RECEIPTS
SERIES CMC2 5.65 7/1/07 7,600,000
1,000,000 WASHINGTON PUBLIC POWER SUPPLY
SYSTEM POWER RV NUCLEAR
PROJECT #3 SERIES 13 MBIA
INSURED 5.62 7/1/15 1,000,000
3,785,000 WASHINGTON STATE ECONOMIC
DEVELOPMENT FINANCE AUTHORITY
ECONOMIC DEVELOPMENT RV
PIONEER HUMAN SERVICES PROJECT
SERIES H U.S. BANK OF
WASHINGTON LOC 5.75 9/1/18 3,785,000
10,260,000 WASHINGTON STATE HOUSING
FINANCE COMMISSION MFHR
SERIES 1219++ 5.82 7/15/01 10,260,000
4,335,000 WASHINGTON STATE HOUSING
FINANCE COMMISSION MFHR CANYON
LAKES II PROJECT U.S. BANK OF
WASHINGTON LOC 5.55 10/1/19 4,335,000
9,600,000 WASHINGTON STATE PUBLIC POWER
SUPPLY SYSTEM NUCLEAR PROJECT
#2 POWER RV AMBAC INSURED 5.65 7/1/07 9,600,000
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
WASHINGTON (continued)
$10,525,000 WASHINGTON STATE GO
SERIES 1177 4.50% 7/1/16 $ 10,525,000
75,929,334
TOTAL WASHINGTON (COST $75,929,334)
--------------
WISCONSIN - 2.03%
1,000,000 BELOIT & ROCK COUNTY WI IDR
GUARANTEED BY CPC
INTERNATIONAL 6.08 4/1/19 1,000,000
1,750,000 EAU CLAIRE WI IDR INTEK
PLASTICS PROJECS U.S. BANK
TRUST N.A. LOC 6.00 5/1/25 1,750,000
1,405,000 JOHNSON CONTROLS INCORPORATED
TAX-EXEMPT BOND GRANTOR TRUST
WACHOVIA CORPORATION LOC 4.50 10/1/01 1,405,000
1,860,000 MILWAUKEE WI IDR BONDS
LONGVIEW FIBRE COMPANY PROJECT
ABN AMRO BANK N.V. LOC 6.05 1/1/03 1,860,000
2,000,000 OCONTO WI UNION SD GO TAX &
REVENUE ANTICIPATION
PROMISSARY NOTES 4.75 9/10/01 2,003,573
6,000,000 ST. FRANCIS WI HOUSING
AUTHORITY REVENUE HOWARD VLJ
PROJECT U.S. BANK N.A. LOC 5.55 7/1/30 6,000,000
3,000,000 WISCONSIN SCHOOL DISTRICTS 4.55 9/26/01 3,000,000
3,750,000 WISCONSIN SCHOOL DISTRICTS 4.75 9/26/01 3,766,044
20,784,617
TOTAL WISCONSIN (COST $20,784,617)
--------------
WYOMING - 0.10%
1,000,000 GREEN RIVER WY PCR BONDS
ALLIED CORPORATION PROJECT
GUARANTEED BY ALLIED SIGNAL
CORPORATION 4.91 12/1/12 1,000,000
--------------
1,000,000
TOTAL WYOMING (COST $1,000,000)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,018,947,103)* 99.47% $1,018,947,103
OTHER ASSETS AND LIABILITIES, NET 0.53 5,413,845
------- --------------
TOTAL NET ASSETS 100.00% $1,024,360,948
------- --------------
</TABLE>
++ VARIABLE RATE
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A FEATURE
WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
37
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 99.92%
U.S. TREASURY BILLS - 72.78%
$ 75,000,000 U.S. TREASURY BILLS 6.18%{::} 10/12/00 $ 74,875,208
135,000,000 U.S. TREASURY BILLS 6.30{::} 10/12/00 134,769,375
60,000,000 U.S. TREASURY BILLS 6.30{::} 10/12/00 59,897,417
75,000,000 U.S. TREASURY BILLS 6.16{::} 10/19/00 74,788,031
50,000,000 U.S. TREASURY BILLS 6.28{::} 11/9/00 49,678,583
20,000,000 U.S. TREASURY BILLS 6.29{::} 11/9/00 19,871,328
200,000,000 U.S. TREASURY BILLS 6.07{::} 11/9/00 198,748,112
26,000,000 U.S. TREASURY BILLS 6.29{::} 11/9/00 25,832,726
100,000,000 U.S. TREASURY BILLS 6.13{::} 11/16/00 99,250,000
75,000,000 U.S. TREASURY BILLS 6.31{::} 11/24/00 74,322,594
75,000,000 U.S. TREASURY BILLS 6.28{::} 11/24/00 74,327,011
142,880,000 U.S. TREASURY BILLS 6.08{::} 11/24/00 141,630,514
50,000,000 U.S. TREASURY BILLS 6.09{::} 11/30/00 49,514,070
50,000,000 U.S. TREASURY BILLS 6.15{::} 12/7/00 49,452,750
50,000,000 U.S. TREASURY BILLS 6.24{::} 12/7/00 49,450,917
200,000,000 U.S. TREASURY BILLS 6.14{::} 12/21/00 197,346,667
9,640,000 U.S. TREASURY BILLS 6.21{::} 12/28/00 9,501,502
75,000,000 U.S. TREASURY BILLS 6.20{::} 12/28/00 73,908,876
50,000,000 U.S. TREASURY BILLS 6.28{::} 1/11/01 49,157,632
50,000,000 U.S. TREASURY BILLS 6.35{::} 2/22/01 48,794,431
50,000,000 U.S. TREASURY BILLS 6.30{::} 3/1/01 48,743,750
1,603,861,494
--------------
U.S. TREASURY NOTES - 27.14%
35,000,000 U.S. TREASURY NOTES 4.50 9/30/00 35,000,000
135,000,000 U.S. TREASURY NOTES 4.00 10/31/00 134,763,323
75,000,000 U.S. TREASURY NOTES 4.00 10/31/00 74,869,019
14,500,000 U.S. TREASURY NOTES 5.75 10/31/00 14,493,840
15,500,000 U.S. TREASURY NOTES 5.75 10/31/00 15,492,338
25,000,000 U.S. TREASURY NOTES 5.75 11/15/00 24,978,802
50,000,000 U.S. TREASURY NOTES 5.75 11/15/00 49,967,774
25,000,000 U.S. TREASURY NOTES 4.63 11/30/00 24,932,780
100,000,000 U.S. TREASURY NOTES 5.63 11/30/00 99,918,221
25,000,000 U.S. TREASURY NOTES 4.63 12/31/00 24,882,813
50,000,000 U.S. TREASURY NOTES 4.50 1/31/01 49,710,038
34,500,000 U.S. TREASURY NOTES 4.50 1/31/01 34,297,573
15,000,000 U.S. TREASURY NOTES 5.00 2/28/01 14,926,208
598,232,729
--------------
2,202,094,223
TOTAL U.S. TREASURY SECURITIES (COST
$2,202,094,223)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,202,094,223)* 99.92% $2,202,094,223
OTHER ASSETS AND LIABILITIES, NET 0.08 1,689,518
------- --------------
TOTAL NET ASSETS 100.00% $2,203,783,741
------- --------------
</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.
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER - 75.30%
$ 7,000,000 AEGON FUNDING CORPORATION 6.50%{::} 10/2/00 $ 7,000,000
25,000,000 ALPINE SECURITIZATION
CORPORATION 6.54{::} 10/4/00 24,990,958
19,700,000 BANK ONE 6.86{::} 1/16/01 19,702,335
25,000,000 BAUS FUNDING LLC 6.61{::} 12/28/00 24,609,708
25,000,000 BAVARIA UNIVERSAL FUNDING
CORPORATION 6.56{::} 10/12/00 24,954,722
15,000,000 BILLS SECURITIZATION LIMITED
LTD 6.69{::} 10/6/00 14,989,033
10,000,000 BILLS SECURITIZATION LIMITED
LTD 6.73{::} 1/8/01 9,820,879
20,000,000 CC (USA) INCORPORATED 6.82{::} 10/16/00 19,949,056
3,000,000 CHRISTIANIA CAPITAL
CORPORATION 6.52{::} 11/1/00 2,984,450
35,000,000 CPI FUNDING CORPORATION 6.57{::} 10/25/00 34,853,089
20,000,000 GOVCO INCORPORATED 6.66{::} 10/6/00 19,985,444
30,000,000 GRAND FUNDING CORPORATION 6.57{::} 10/23/00 29,885,900
25,000,000 GREYHAWK CAPITAL CORPORATION 6.73{::} 1/8/01 24,554,917
20,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.66{::} 10/27/00 19,910,972
10,000,000 K2 (USA) LLC 6.48{::} 10/2/00 10,000,000
10,000,000 K2 (USA) LLC 6.68{::} 10/26/00 9,956,200
5,000,000 K2 (USA) LLC 6.78{::} 2/9/01 4,881,736
10,000,000 KBC COMMERCIAL PAPER TRUST 6.58{::} 10/11/00 9,983,650
15,993,000 KBC COMMERCIAL PAPER TRUST 6.70{::} 10/16/00 15,952,014
15,000,000 LINKS FINANCE, LLC 6.71{::} 10/6/00 14,989,000
20,000,000 MORIARTY LIMITED 6.71{::} 10/6/00 19,985,333
20,000,000 NESS LLC 6.61{::} 12/11/00 19,748,000
25,000,000 OLD LINE FUNDING CORPORATION 6.57{::} 10/23/00 24,905,063
27,845,000 REPEAT OFFERING SECURITIZATION
ENTITY 6.66{::} 10/30/00 27,703,145
10,000,000 SIGMA FINANCE INCORPORATED 6.67{::} 10/19/00 9,969,022
5,000,000 SIGMA FINANCE INCORPORATED 6.97{::} 1/5/01 4,911,466
30,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.56{::} 10/13/00 29,940,234
10,000,000 SWEDBANK (FORENINGS
SPARBANKER) 6.80{::} 10/26/00 9,955,667
20,000,000 TRIPLE A ONE FUNDING 6.55{::} 10/11/00 19,967,400
12,000,000 TRIPLE A ONE FUNDING 6.55{::} 10/12/00 11,978,300
20,000,000 VENTURES BUSINESS TRUST 6.68{::} 10/10/00 19,970,800
542,988,493
TOTAL COMMERCIAL PAPER (COST $542,988,493)
------------
MASTER NOTES - 0.02%
136,664 GENERAL ELECTRIC COMPANY++ 6.58 10/5/00 136,664
------------
136,664
TOTAL MASTER NOTES (COST $136,664)
------------
TIME DEPOSITS - 12.48%
30,000,000 BANQUE BRUXELLES LAMBERT,
LONDON 6.75 10/2/00 30,000,000
30,000,000 CAISSE DES DEPOTS ET
CONSIGNATIONS, PARIS 6.73 10/2/00 30,000,000
30,000,000 UNION BANK OF SWITZERLAND,
GRAND CAYMAN 6.66 10/2/00 30,000,000
90,000,000
TOTAL TIME DEPOSITS (COST $90,000,000)
------------
VARIABLE & FLOATING RATE FUNDING AGREEMENTS - 0.07%
500,000 ALLSTATE LIFE INSURANCE
COMPANY 6.88 12/28/00 500,000
------------
500,000
TOTAL VARIABLE & FLOATING RATE FUNDING
AGREEMENTS (COST $500,000)
------------
VARIABLE & FLOATING RATE NOTES - CORPORATE - 4.51%
7,500,000 ASSOCIATES CORPORATION OF
NORTH AMERICA++ 6.66 6/26/01 7,500,000
</TABLE>
39
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE NOTES (continued)
$25,000,000 UNILEVER CAPITAL CORPORATION++ 6.65% 9/7/01 $ 25,000,000
32,500,000
TOTAL VARIABLE & FLOATING RATE NOTES -
CORPORATE (COST $32,500,000)
------------
REPURCHASE AGREEMENTS - 8.07%
23,185,443 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.68 10/2/00 23,185,443
30,000,000 GOLDMAN SACHS CORPORATION
REPURCHASE AGREEMENT 6.75 10/2/00 30,000,000
5,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/5/00 5,000,000
58,185,443
TOTAL REPURCHASE AGREEMENTS (COST
$58,185,443)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $724,310,600)* 100.45% $724,310,600
OTHER ASSETS AND LIABILITIES, NET (0.45) (3,205,572)
------- ------------
TOTAL NET ASSETS 100.00% $721,105,028
------- ------------
</TABLE>
{::} YIELD TO MATURITY.
++ VARIABLE RATE.
* 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.
40
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 56.18%
U.S. TREASURY BILLS - 31.32%
$ 22,500,000 U.S. TREASURY BILLS 5.85%{::} 10/12/00 $ 22,464,125
20,000,000 U.S. TREASURY BILLS 6.07{::} 11/2/00 19,895,547
22,500,000 U.S. TREASURY BILLS 6.06{::} 11/9/00 22,359,400
45,000,000 U.S. TREASURY BILLS 6.09{::} 11/9/00 44,716,425
50,000,000 U.S. TREASURY BILLS 6.28{::} 11/9/00 49,678,848
45,000,000 U.S. TREASURY BILLS 6.10{::} 11/16/00 44,664,188
22,500,000 U.S. TREASURY BILLS 6.04{::} 11/24/00 22,304,563
27,120,000 U.S. TREASURY BILLS 6.08{::} 11/24/00 26,882,836
30,000,000 U.S. TREASURY BILLS 6.31{::} 11/24/00 29,729,259
45,000,000 U.S.TREASURY BILLS 6.17{::} 12/14/00 44,451,588
327,146,779
--------------
U.S. TREASURY NOTES - 24.86%
87,000,000 U.S. TREASURY NOTES 4.50 9/30/00 87,000,000
33,310,000 U.S. TREASURY NOTES 5.75 10/31/00 33,312,255
5,000,000 U.S. TREASURY NOTES 5.00 2/28/01 4,975,403
65,000,000 U.S. TREASURY NOTES 4.88 3/31/01 64,526,647
45,000,000 U.S. TREASURY NOTES 6.25 4/30/01 44,889,172
25,000,000 U.S. TREASURY NOTES 6.50 5/31/01 25,023,148
259,726,625
--------------
586,873,404
TOTAL U.S. TREASURY SECURITIES (COST
$586,873,404)
--------------
REPURCHASE AGREEMENTS - 43.77%
27,801,345 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.43 10/2/00 27,801,345
99,400,000 BEAR STEARNS & COMPANY
REPURCHASE AGREEMENT 6.45 10/2/00 99,400,000
25,000,000 SALOMON SMITH BARNEY
REPURCHASE AGREEMENT 6.45 10/2/00 25,000,000
130,000,000 GOLDMAN SACHS & COMPANY
REPURCHASE AGREEMENT 6.50 10/2/00 130,000,000
50,000,000 LEHMAN BROTHERS HOLDINGS
REPURCHASE AGREEMENT 6.50 10/2/00 50,000,000
125,000,000 BEAR STEARNS & COMPANY
REPURCHASE AGREEMENT 6.53 10/2/00 125,000,000
457,201,345
TOTAL REPURCHASE AGREEMENTS (COST
$457,201,345)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,044,074,749)* 99.95% $1,044,074,749
OTHER ASSETS AND LIABILITIES, NET 0.05 510,080
------- --------------
TOTAL NET ASSETS 100.00% $1,044,584,829
------- --------------
</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.
41
<PAGE>
MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE CASH INVESTMENT
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C>
-------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED COST............... $ 2,370,311,553 $ 12,251,464,847
CASH............................................ 966,430 $ 0
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES... 19,321,015 69,300,718
RECEIVABLE FOR INVESTMENTS SOLD................. 3,510,720 0
PREPAID EXPENSES AND OTHER ASSETS............... 0 213,615
------------------ ------------------
TOTAL ASSETS...................................... 2,394,109,718 12,320,979,180
------------------ ------------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 1,232,797 4,348,049
PAYABLE TO OTHER RELATED PARTIES................ 889,350 185,442
PAYABLE TO CUSTODIAN............................ 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 352,083 2,138,067
DIVIDENDS PAYABLE............................... 1,020,269 26,995,403
------------------ ------------------
TOTAL LIABILITIES................................. 3,494,499 33,666,961
------------------ ------------------
TOTAL NET ASSETS.................................. $ 2,390,615,219 $ 12,287,312,219
------------------ ------------------
NET ASSETS CONSIST OF:
-------------------------------------------------------------------------------------------
PAID-IN CAPITAL................................. $ 2,391,503,037 $ 12,287,273,652
UNDISTRIBUTED NET INVESTMENT INCOME............. 0 0
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (887,818) 38,567
------------------ ------------------
TOTAL NET ASSETS.................................. $ 2,390,615,219 $ 12,287,312,219
------------------ ------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.............................. $ 2,245,220,477 N/A
SHARES OUTSTANDING - CLASS A...................... 2,246,104,928 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS A......................................... $ 1.00 N/A
NET ASSETS - INSTITUTIONAL CLASS.................. N/A $ 2,607,077,592
SHARES OUTSTANDING - INSTITUTIONAL CLASS.......... N/A 2,607,149,603
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INSTITUTIONAL CLASS............................. N/A $ 1.00
NET ASSETS - SERVICE CLASS........................ $ 145,394,742 $ 9,680,234,627
SHARES OUTSTANDING - SERVICE CLASS................ 145,403,078 9,682,009,276
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
SERVICE CLASS................................... $ 1.00 $ 1.00
------------------ ------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED)
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE
GOVERNMENT INSTITUTIONAL 100% TREASURY PRIME INVESTMENT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED COST............... $ 2,886,584,779 $ 1,018,947,103 $ 2,202,094,223 $ 724,310,600
CASH............................................ 52,124 378,206 3,424 0
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES... 15,280,969 8,314,396 10,002,821 515,274
RECEIVABLE FOR INVESTMENTS SOLD................. 0 0 0 0
PREPAID EXPENSES AND OTHER ASSETS............... 540,946 25,005 0 0
------------------ ------------------ ------------------ ------------------
TOTAL ASSETS...................................... 2,902,458,818 1,027,664,710 2,212,100,468 724,825,874
------------------ ------------------ ------------------ ------------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 1,212,773 331,245 714,863 247,207
PAYABLE TO OTHER RELATED PARTIES................ 655,065 8,494 31,013 277,026
PAYABLE TO CUSTODIAN............................ 0 0 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 424,785 295,853 235,886 82,353
DIVIDENDS PAYABLE............................... 13,992,992 2,668,170 7,334,965 3,114,260
------------------ ------------------ ------------------ ------------------
TOTAL LIABILITIES................................. 16,285,615 3,303,762 8,316,727 3,720,846
------------------ ------------------ ------------------ ------------------
TOTAL NET ASSETS.................................. $ 2,886,173,203 $ 1,024,360,948 $ 2,203,783,741 $ 721,105,028
------------------ ------------------ ------------------ ------------------
NET ASSETS CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL................................. $ 2,886,361,439 $ 1,024,452,683 $ 2,204,581,786 $ 721,173,193
UNDISTRIBUTED NET INVESTMENT INCOME............. 0 0 168,885 4
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (188,236) (91,735) (966,930) (68,169)
------------------ ------------------ ------------------ ------------------
TOTAL NET ASSETS.................................. $ 2,886,173,203 $ 1,024,360,948 $ 2,203,783,741 $ 721,105,028
------------------ ------------------ ------------------ ------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.............................. $ 79,492,653 N/A $ 83,362,406 N/A
SHARES OUTSTANDING - CLASS A...................... 79,497,096 N/A 83,357,071 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS A......................................... $ 1.00 N/A $ 1.00 N/A
NET ASSETS - INSTITUTIONAL CLASS.................. N/A $ 89,346,461 N/A N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS.......... N/A 89,356,444 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INSTITUTIONAL CLASS............................. N/A $ 1.00 N/A N/A
NET ASSETS - SERVICE CLASS........................ $ 2,806,680,550 $ 935,014,487 $ 2,120,421,335 $ 721,105,028
SHARES OUTSTANDING - SERVICE CLASS................ 2,807,042,950 934,981,323 2,121,223,431 721,174,056
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
SERVICE CLASS................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------ ------------------ ------------------ ------------------
<CAPTION>
TREASURY PLUS
INSTITUTIONAL
MONEY MARKET FUND
<S> <C>
--------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED COST............... $ 1,044,074,749
CASH............................................ $ 0
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES... 6,383,058
RECEIVABLE FOR INVESTMENTS SOLD................. 0
PREPAID EXPENSES AND OTHER ASSETS............... 14,340
------------------
TOTAL ASSETS...................................... 1,050,472,147
------------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 296,850
PAYABLE TO OTHER RELATED PARTIES................ 4,041
PAYABLE TO CUSTODIAN............................ 1,506,679
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 620,790
DIVIDENDS PAYABLE............................... 3,458,958
------------------
TOTAL LIABILITIES................................. 5,887,318
------------------
TOTAL NET ASSETS.................................. $ 1,044,584,829
------------------
NET ASSETS CONSIST OF:
--------------------------------------------------
PAID-IN CAPITAL................................. $ 1,044,587,412
UNDISTRIBUTED NET INVESTMENT INCOME............. 0
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (2,583)
------------------
TOTAL NET ASSETS.................................. $ 1,044,584,829
------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
--------------------------------------------------
NET ASSETS - CLASS A.............................. N/A
SHARES OUTSTANDING - CLASS A...................... N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS A......................................... N/A
NET ASSETS - INSTITUTIONAL CLASS.................. $ 434,879,779
SHARES OUTSTANDING - INSTITUTIONAL CLASS.......... 435,018,030
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INSTITUTIONAL CLASS............................. $ 1.00
NET ASSETS - SERVICE CLASS........................ $ 609,705,050
SHARES OUTSTANDING - SERVICE CLASS................ 609,718,998
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
SERVICE CLASS................................... $ 1.00
------------------
</TABLE>
43
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE CASH INVESTMENT
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C>
-----------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 46,212,900 $ 371,826,159
----------------- -----------------
TOTAL INVESTMENT
INCOME................. 46,212,900 371,826,159
----------------- -----------------
EXPENSES
ADVISORY FEES.......... 3,616,624 5,670,616
ADMINISTRATION FEES.... 1,808,311 8,505,924
CUSTODY................ 241,108 1,134,123
SHAREHOLDER SERVICING
FEES................. 2,883,732 11,503,681
PORTFOLIO ACCOUNTING
FEES................. 78,360 243,836
TRANSFER AGENT
CLASS A.............. 369,118 N/A
INSTITUTIONAL CLASS.... N/A 21,383
SERVICE CLASS........ 5,205 230,074
DISTRIBUTION FEES
CLASS A.............. 0 N/A
INSTITUTIONAL CLASS.... N/A 0
SERVICE CLASS........ 0 0
LEGAL AND AUDIT FEES... 89,266 110,438
REGISTRATION FEES...... 40,929 523,113
DIRECTORS' FEES........ 2,664 2,664
SHAREHOLDER REPORTS.... 70,746 374,909
OTHER.................. 37,269 123,570
----------------- -----------------
TOTAL EXPENSES........... 9,243,332 28,444,331
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (1,511,646) (3,683,834)
----------------- -----------------
NET EXPENSES............. 7,731,686 24,760,497
----------------- -----------------
NET INVESTMENT INCOME.... 38,481,214 347,065,662
----------------- -----------------
----------------- -----------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (223,673) (285)
----------------- -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 38,257,541 $ 347,065,377
----------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
<PAGE>
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE TREASURY PLUS
GOVERNMENT INSTITUTIONAL MONEY 100% TREASURY PRIME INVESTMENT INTSITUTIONAL MONEY
MONEY MARKET FUND MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MARKET FUND
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 108,359,520 $ 21,410,821 $ 49,128,055 $ 18,608,778 $ 30,868,967
----------------- ------------------- ----------------- ----------------- -------------------
TOTAL INVESTMENT
INCOME................. 108,359,520 21,410,821 49,128,055 18,608,778 30,868,967
----------------- ------------------- ----------------- ----------------- -------------------
EXPENSES
ADVISORY FEES.......... 5,898,977 493,748 2,850,804 281,051 493,675
ADMINISTRATION FEES.... 2,528,134 740,622 1,221,773 421,577 740,512
CUSTODY................ 337,084 98,750 162,903 56,210 98,735
SHAREHOLDER SERVICING
FEES................. 71,460 1,166,874 32,674 702,628 704,667
PORTFOLIO ACCOUNTING
FEES................. 101,125 49,375 63,532 272,619 44,431
TRANSFER AGENT
CLASS A.............. 2,858 N/A 3,921 N/A N/A
INSTITUTIONAL CLASS.... N/A 810 N/A N/A 4,236
SERVICE CLASS........ 331,368 51,342 40,072 28,105 8,456
DISTRIBUTION FEES
CLASS A.............. 0 N/A 0 N/A N/A
INSTITUTIONAL CLASS.... N/A 0 N/A N/A 0
SERVICE CLASS........ 0 0 0 0 0
LEGAL AND AUDIT FEES... 33,136 14,649 15,622 6,893 41,776
REGISTRATION FEES...... 154,698 55,856 31,482 38,005 48,728
DIRECTORS' FEES........ 2,663 2,664 2,664 2,663 2,664
SHAREHOLDER REPORTS.... 104,004 33,056 43,049 26,121 31,993
OTHER.................. 42,484 41,889 69,991 12,601 22,947
----------------- ------------------- ----------------- ----------------- -------------------
TOTAL EXPENSES........... 9,607,991 2,749,635 4,538,487 1,846,473 2,242,820
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (1,109,520) (568,277) (766,980) (300,725) (416,707)
----------------- ------------------- ----------------- ----------------- -------------------
NET EXPENSES............. 8,498,471 2,181,358 3,771,507 1,545,748 1,826,113
----------------- ------------------- ----------------- ----------------- -------------------
NET INVESTMENT INCOME.... 99,861,049 19,229,463 45,356,548 17,063,030 29,042,854
----------------- ------------------- ----------------- ----------------- -------------------
----------------- ------------------- ----------------- ----------------- -------------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (2,599) (44,090) 213,357 (62,880) 16,625
----------------- ------------------- ----------------- ----------------- -------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 99,858,450 $ 19,185,373 $ 45,569,905 $ 17,000,150 $ 29,059,479
----------------- ------------------- ----------------- ----------------- -------------------
</TABLE>
45
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE
MONEY MARKET FUND
-------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C>
----------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 2,540,587,408 $ 2,246,122,877
OPERATIONS:
NET INVESTMENT
INCOME............... 38,481,214 59,643,253
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (223,673) (372,792)
------------------- ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 38,257,541 59,270,461
------------------- ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (36,719,111) (59,135,379)
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... N/A N/A
INSTITUTIONAL
CLASS .............. N/A N/A
SERVICE CLASS ....... (1,762,103) (507,874)(1)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... N/A N/A
INSTITUTIONAL
CLASS .............. N/A N/A
SERVICE CLASS ....... 0 0(1)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 2,060,651,751 3,663,360,428
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 31,009,536 50,547,941
COST OF SHARES
REDEEMED -
CLASS A.............. (2,311,115,667) (3,494,768,260)
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (219,454,380) 219,140,109
------------------- ----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A
------------------- ----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A N/A
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ N/A N/A
------------------- ----------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ N/A N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ N/A N/A
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A
------------------- ----------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 130,917,926 102,151,332(1)
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 1,735,753 310,610(1)
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (62,947,815) (26,764,728)(1)
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. 69,705,864 75,697,214(1)
------------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (149,972,189) 294,464,531
------------------- ----------------
NET ASSETS
----------------------------------------------------------------
ENDING NET ASSETS...... $ 2,390,615,219 $ 2,540,587,408
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. 2,060,651,751 3,663,360,394
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 31,009,536 50,547,946
SHARES REDEEMED -
CLASS A.............. (2,311,115,667) (3,494,768,069)
------------------- ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (219,454,380) 219,140,271
------------------- ----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A
------------------- ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A
------------------- ----------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A N/A
SHARES SOLD -
INSTITUTIONAL
CLASS ............... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... N/A N/A
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A
------------------- ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A
------------------- ----------------
SHARES SOLD - SERVICE
CLASS................ 130,917,926 102,151,332(1)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 1,735,753 310,610(1)
SHARES REDEEMED -
SERVICE CLASS........ (62,947,815) (26,764,728)(1)
------------------- ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... 69,705,864 75,697,214(1)
------------------- ----------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0
------------------- ----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH INVESTMENT GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
---------------------------------------------------------- -------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE FOR THE SIX
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (2) MAY 31, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 11,199,064,762 $ 5,481,802,324 $ 4,685,818,157 $ 3,492,915,705
OPERATIONS:
NET INVESTMENT
INCOME............... 347,065,662 362,121,049 272,227,954 99,861,049
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (285) 75,110 54,777 (2,599)
------------------- ------------------ ---------------- -------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 347,065,377 362,196,159 272,282,731 99,858,450
------------------- ------------------ ---------------- -------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A (1,626,849)
ADMINISTRATIVE
CLASS .............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A N/A
INSTITUTIONAL
CLASS .............. (67,452,834) (45,514,130)(1) N/A N/A
SERVICE CLASS ....... (279,612,828) (316,651,938) (272,182,936) (98,234,200)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A 0
ADMINISTRATIVE
CLASS .............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A N/A
INSTITUTIONAL
CLASS .............. 0 N/A N/A N/A
SERVICE CLASS ....... 0 0(1) 0 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A 158,388,507
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 352,980
COST OF SHARES
REDEEMED -
CLASS A.............. N/A N/A N/A (138,208,907)
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A 20,532,580
------------------- ------------------ ---------------- -------------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A N/A N/A
------------------- ------------------ ---------------- -------------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A N/A
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ N/A 0 N/A N/A
------------------- ------------------ ---------------- -------------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ 46,860,721,969 33,083,720,843(1) N/A N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ 27,490,378 14,071,650(1) N/A N/A
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ (46,397,410,418) (30,981,523,473)(1) N/A N/A
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 490,801,929 2,116,269,020(1) N/A N/A
------------------- ------------------ ---------------- -------------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 21,399,193,067 30,580,541,901 37,587,082,649 16,549,091,177
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 176,582,148 159,859,110 143,723,803 14,614,755
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (20,978,329,402) (27,139,437,684) (36,934,922,080) (17,190,978,415)
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. 597,445,813 3,600,963,327 795,884,372 (627,272,483)
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 1,088,247,457 5,717,262,438 795,984,167 (606,742,502)
------------------- ------------------ ---------------- -------------------
NET ASSETS
----------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 12,287,312,219 $ 11,199,064,762 $ 5,481,802,324 $ 2,886,173,203
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A 158,388,507
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 352,980
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A (138,208,907)
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A 20,532,580
------------------- ------------------ ---------------- -------------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A N/A N/A
------------------- ------------------ ---------------- -------------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A N/A
SHARES SOLD -
INSTITUTIONAL
CLASS ............... 46,860,721,969 33,083,799,497(1) N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... 27,490,378 14,071,650(1) N/A N/A
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ (46,397,410,418) (30,981,523,473)(1) N/A N/A
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 490,801,929 2,116,347,674(1) N/A N/A
------------------- ------------------ ---------------- -------------------
SHARES SOLD - SERVICE
CLASS................ 21,399,193,067 30,580,541,901 37,587,082,649 16,549,091,177
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 176,582,148 159,925,207 143,723,803 14,614,755
SHARES REDEEMED -
SERVICE CLASS........ (20,978,329,402) (27,139,437,684) (36,934,922,080) (17,190,978,415)
------------------- ------------------ ---------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... 597,445,813 3,601,029,424 795,884,372 (627,272,483)
------------------- ------------------ ---------------- -------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0 $ (102,315) $ 0
------------------- ------------------ ---------------- -------------------
<CAPTION>
GOVERNMENT
MONEY MARKET FUND
-------------------------------------
FOR THE TEN FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2000 (5) MAY 31, 1999
<S> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS... $ 3,368,533,822 $ 2,260,207,846
OPERATIONS:
NET INVESTMENT
INCOME............... 141,286,219 133,990,508
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (184,488) 204,634
------------------ ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 141,101,731 134,195,142
------------------ ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (1,181,705)(1) N/A
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... N/A N/A
INSTITUTIONAL
CLASS .............. N/A N/A
SERVICE CLASS ....... (140,104,514) (133,990,508)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0(1) N/A
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... N/A N/A
INSTITUTIONAL
CLASS .............. N/A N/A
SERVICE CLASS ....... 0 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 139,610,265(1) N/A
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 494,841(1) N/A
COST OF SHARES
REDEEMED -
CLASS A.............. (81,141,804)(1) N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 58,963,302(1) N/A
------------------ ----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A
------------------ ----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ N/A N/A
------------------ ----------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ N/A N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ N/A N/A
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A
------------------ ----------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 31,097,729,447 26,091,666,224
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 5,327,578 29,201,156
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (31,037,453,956) (25,012,746,038)
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. 65,603,069 1,108,121,342
------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 124,381,883 1,108,325,976
------------------ ----------------
NET ASSETS
-------------------------
ENDING NET ASSETS...... $ 3,492,915,705 $ 3,368,533,822
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. 139,611,479(1) N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 494,841(1) N/A
SHARES REDEEMED -
CLASS A.............. (81,141,804)(1) N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 58,964,516(1) N/A
------------------ ----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A
------------------ ----------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A N/A
SHARES SOLD -
INSTITUTIONAL
CLASS ............... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... N/A N/A
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A
------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A
------------------ ----------------
SHARES SOLD - SERVICE
CLASS................ 31,097,729,447 26,091,666,224
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 5,327,578 29,201,156
SHARES REDEEMED -
SERVICE CLASS........ (31,037,453,956) (25,012,746,038)
------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... 65,603,069 1,108,121,342
------------------ ----------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ (56,270)
------------------ ----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
47
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE INSTITUTIONAL
MONEY MARKET FUND
----------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (3) MAY 31, 1999
<S> <C> <C> <C>
-------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 1,147,214,579 $ 1,060,762,128 $ 1,021,763,286
OPERATIONS:
NET INVESTMENT
INCOME............... 19,229,463 28,350,613 34,234,759
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (44,090) 68,766 6,112
------------------- ------------------ ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 19,185,373 28,419,379 34,240,871
------------------- ------------------ ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A (485,964)(4) (1,157,118)
ADMINISTRATIVE
CLASS ............. N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A
INSTITUTIONAL
CLASS ............. (1,098,279) (299,922)(1) N/A
SERVICE CLASS ....... (18,131,184) (27,564,727) (33,067,705)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A 0(4) (628)
ADMINISTRATIVE
CLASS ............. N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A
INSTITUTIONAL
CLASS ............. 0 0(1) N/A
SERVICE CLASS ....... 0 0 (16,474)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A 16,850,329(4) 51,468,576
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A 471,208(4) 1,155,538
COST OF SHARES
REDEEMED -
CLASS A.............. N/A (58,499,543)(4) (55,521,236)
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A (41,178,006)(4) (2,897,122)
------------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A N/A
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A N/A
------------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ N/A N/A N/A
------------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ 214,915,380 385,671,594(1) N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ 512,050 70,018(1) N/A
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ (149,212,472) (362,606,896)(1) N/A
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 66,214,958 23,134,716(1) N/A
------------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 1,120,876,184 2,015,467,599 4,895,924,473
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 3,641,914 1,611,072 8,171,310
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (1,313,542,597) (1,912,651,696) (4,862,198,765)
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. (189,024,499) 104,426,975 41,897,018
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (122,853,631) 86,452,451 38,998,842
------------------- ------------------ ----------------
NET ASSETS
-------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 1,024,360,948 $ 1,147,214,579 $ 1,060,762,128
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. N/A 16,850,329(4) 51,468,576
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A 471,208(4) 1,155,538
SHARES REDEEMED -
CLASS A.............. N/A (58,502,479)(4) (55,521,236)
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A (41,180,942)(4) (2,897,122)
------------------- ------------------ ----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A N/A
------------------- ------------------ ----------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A
SHARES SOLD -
INSTITUTIONAL
CLASS ............... 214,915,380 385,678,364(1) N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... 512,050 70,018(1) N/A
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ (149,212,472) (362,606,896)(1) N/A
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 66,214,958 23,141,486(1) N/A
------------------- ------------------ ----------------
SHARES SOLD - SERVICE
CLASS................ 1,120,876,184 2,015,467,599 4,895,924,473
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 3,641,914 1,611,072 8,171,310
SHARES REDEEMED -
SERVICE CLASS........ (1,313,542,597) (1,912,651,696) (4,862,198,765)
------------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... (189,024,499) 104,426,975 41,897,018
------------------- ------------------ ----------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0 $ (126,904)
------------------- ------------------ ----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
100% TREASURY PRIME INVESTMENT
MONEY MARKET FUND MONEY MARKET FUND
--------------------------------------------------------- -------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE FOR THE SIX
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 MAY 31, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 1,704,296,646 $ 1,548,548,589 $ 1,440,515,062 $ 222,523,000
OPERATIONS:
NET INVESTMENT
INCOME............... 45,356,548 66,843,765 69,668,576 17,063,030
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... 213,357 (856,341) 101,345 (62,880)
------------------- ----------------- ----------------- -------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 45,569,905 65,987,424 69,769,921 17,000,150
------------------- ----------------- ----------------- -------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (730,812) (18,741)(1) N/A 0
ADMINISTRATIVE
CLASS ............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A 0
INSTITUTIONAL
CLASS ............. N/A N/A N/A N/A
SERVICE CLASS ....... (44,625,736) (66,825,024) (69,668,576) (17,063,030)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0(1) N/A 0
ADMINISTRATIVE
CLASS ............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A 0
INSTITUTIONAL
CLASS ............. N/A N/A N/A N/A
SERVICE CLASS ....... 0 0 (536,906) 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 115,049,417 2,321,689(1) N/A 0
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 718,882 18,157(1) N/A 0
COST OF SHARES
REDEEMED -
CLASS A.............. (34,457,832) (293,242)(1) N/A 0
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 81,310,467 2,046,604(1) N/A 0
------------------- ----------------- ----------------- -------------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A N/A N/A
------------------- ----------------- ----------------- -------------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A 0
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A 0
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ N/A N/A N/A 0
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ N/A N/A N/A 0
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 6,118,479,177 18,415,108,001 19,545,459,290 5,615,874,084
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 9,676,635 9,266,578 20,981,138 2,589,663
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (5,710,192,541) (18,269,816,785) (19,457,971,340) (5,119,818,839)
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. 417,963,271 154,557,794 108,469,088 498,644,908
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 499,487,095 155,748,057 108,033,527 498,582,028
------------------- ----------------- ----------------- -------------------
NET ASSETS
---------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 2,203,783,741 $ 1,704,296,646 $ 1,548,548,589 $ 721,105,028
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. 115,049,417 2,321,689(1) N/A 0
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 718,882 18,157(1) N/A 0
SHARES REDEEMED -
CLASS A.............. (34,457,832) (293,242)(1) N/A 0
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 81,310,467 2,046,604(1) N/A 0
------------------- ----------------- ----------------- -------------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A N/A N/A
------------------- ----------------- ----------------- -------------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A 0
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A 0
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A 0
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A 0
SHARES SOLD -
INSTITUTIONAL
CLASS ............... N/A N/A N/A 0
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... N/A N/A N/A 0
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A N/A 0
------------------- ----------------- ----------------- -------------------
SHARES SOLD - SERVICE
CLASS................ 6,118,479,177 18,415,108,001 4,446,530,993 5,615,874,084
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 9,676,635 9,266,578 18,522,775 2,589,663
SHARES REDEEMED -
SERVICE CLASS........ (5,710,192,541) (18,269,816,785) (4,028,593,568) (5,119,818,839)
------------------- ----------------- ----------------- -------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... 417,963,271 154,557,794 436,460,200 498,644,908
------------------- ----------------- ----------------- -------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 168,885 $ 168,885 $ 0 $ 0
------------------- ----------------- ----------------- -------------------
<CAPTION>
PRIME INVESTMENT
MONEY MARKET FUND
---------------------------------
FOR THE TEN FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2000 MAY 31, 1999
<S> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS... $ 1,023,150,843 $ 789,717,068
OPERATIONS:
NET INVESTMENT
INCOME............... 22,604,215 40,540,864
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (24,393) 8,287
---------------- ---------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 22,579,822 40,549,151
---------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (19,342,134)(6) (38,948,607)
ADMINISTRATIVE
CLASS ............. N/A N/A
CLASS B/CLASS E...... (25,721)(6) (41,042)
INSTITUTIONAL
CLASS ............. N/A N/A
SERVICE CLASS ....... (3,251,066) (1,536,507)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0(6) 0
ADMINISTRATIVE
CLASS ............. N/A N/A
CLASS B/CLASS E...... 0(6) 0
INSTITUTIONAL
CLASS ............. N/A N/A
SERVICE CLASS ....... 0 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 384,509,519(6) 487,586,321
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 18,391,336(6) 38,964,610
COST OF SHARES
REDEEMED -
CLASS A.............. (1,356,042,883)(6) (362,778,775)
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (953,142,028)(6) 163,772,156
---------------- ---------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A N/A
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A
---------------- ---------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... 1,725,982(6) 2,427,450
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... 20,514(6) 40,453
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... (2,951,181)(6) (1,600,458)
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ (1,204,685)(6) 867,445
---------------- ---------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ 731,376,920(7) N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ 1,406,629(7) N/A
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ (510,255,263)(7) N/A
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 222,528,286(7) N/A
---------------- ---------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 231,243,670 229,896,292
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 1,253,590 1,528,404
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (301,267,577) (162,653,517)
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. (68,770,317) 68,771,179
---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (800,627,843) 233,433,775
---------------- ---------------
NET ASSETS
-------------------------
ENDING NET ASSETS...... $ 222,523,000 $ 1,023,150,843
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. 384,509,519(6) 487,586,321
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 18,391,336(6) 38,964,610
SHARES REDEEMED -
CLASS A.............. (1,356,081,065)(6) (362,778,775)
---------------- ---------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (953,180,210)(6) 163,772,156
---------------- ---------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A
---------------- ---------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A N/A
---------------- ---------------
SHARES SOLD -
CLASS B/CLASS E...... 1,725,982(6) 2,427,450
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... 20,514(6) 40,453
SHARES REDEEMED -
CLASS B/CLASS E...... (2,951,222)(6) (1,600,458)
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ (1,204,726)(6) 867,445
SHARES SOLD -
INSTITUTIONAL
CLASS ............... 731,376,920(7) N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... 1,406,629(7) N/A
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ (510,255,263)(7) N/A
---------------- ---------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 222,528,286(7) N/A
---------------- ---------------
SHARES SOLD - SERVICE
CLASS................ 231,243,670 229,896,292
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 1,253,590 1,528,404
SHARES REDEEMED -
SERVICE CLASS........ (301,267,577) (162,653,517)
---------------- ---------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... (68,770,317) 68,771,179
---------------- ---------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 4 $ 11,637
---------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
49
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS INSTITUTIONAL
MONEY MARKET FUND
----------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (8)
<S> <C> <C>
-------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 858,742,483 $ 2,170,334,965
OPERATIONS:
NET INVESTMENT
INCOME............... 29,042,854 82,558,288
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... 16,625 (29,640)
------------------- ------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 29,059,479 82,528,648
------------------- ------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A (24,950,102)(9)
ADMINISTRATIVE
CLASS .............. N/A (2,208,198)
CLASS B/CLASS E...... N/A (13,974,099)(9)
INSTITUTIONAL
CLASS .............. (12,705,517) (29,064,561)
SERVICE CLASS ....... (16,337,337) (12,361,328)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A 0(9)
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... N/A 0(9)
INSTITUTIONAL
CLASS .............. 0 0
SERVICE CLASS ....... 0 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A 1,284,191,796(9)
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A 3,111,729(9)
COST OF SHARES
REDEEMED -
CLASS A.............. N/A (1,831,221,877)(9)
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A (543,918,352)(9)
------------------- ------------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A 85,867,401(10)
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A 2,358,799(10)
COST OF SHARES
REDEEMED -
ADMINISTRATIVE
CLASS................ N/A (188,319,973)(10)
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A (100,093,773)(10)
------------------- ------------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A 841,125,549(9)
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A 0(9)
COST OF SHARES
REDEEMED -
CLASS B/CLASS E...... N/A (1,425,568,024)(9)
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ N/A (584,442,475)(9)
------------------- ------------------
PROCEEDS FROM SHARES
SOLD - INSTITUTIONAL
CLASS................ 24,085,510,967 48,358,025,436
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS................ 2,472,792 10,680,288
COST OF SHARES
REDEEMED -
INSTITUTIONAL
CLASS................ (24,043,557,907) (48,472,242,565)
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... 44,425,852 (103,536,841)
------------------- ------------------
PROCEEDS FROM SHARES
SOLD - SERVICE
CLASS................ 3,693,931,377 4,609,832,463
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 4,131,939 8,789,197
COST OF SHARES
REDEEMED - SERVICE
CLASS................ (3,556,663,447) (4,598,193,061)
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - SERVICE
CLASS.................. 141,399,869 20,428,599
------------------- ------------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 185,842,346 (1,311,592,482)
------------------- ------------------
NET ASSETS
-------------------------------------------------------------------
ENDING NET ASSETS...... $ 1,044,584,829 $ 858,742,483
SHARE ISSUED AND
REDEEMED:
SHARES SOLD -
CLASS A.............. N/A 1,284,191,796(9)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A 3,111,729(9)
SHARES REDEEMED -
CLASS A.............. N/A (1,831,248,142)(9)
------------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A (543,944,617)(9)
------------------- ------------------
SHARES SOLD -
ADMINISTRATIVE
CLASS................ N/A 85,867,401(10)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A 2,358,799(10)
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A (188,320,695)(10)
------------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS... N/A (100,094,495)(10)
------------------- ------------------
SHARES SOLD -
CLASS B/CLASS E...... N/A 841,125,549(9)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A 0(9)
SHARES REDEEMED -
CLASS B/CLASS E...... N/A (1,425,570,489)(9)
NET INCREASE (DECREASE)
IN SHARES
OUTSTANDING -
CLASS B/CLASS E........ N/A (584,444,940)(9)
SHARES SOLD -
INSTITUTIONAL
CLASS ............... 24,085,510,967 48,358,025,436
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL
CLASS ............... 2,472,792 11,059,800
SHARES REDEEMED -
INSTITUTIONAL
CLASS................ (24,043,557,907) (48,472,616,799)
------------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... 44,425,852 (103,531,563)
------------------- ------------------
SHARES SOLD - SERVICE
CLASS................ 3,693,931,377 4,609,832,463
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS - SERVICE
CLASS................ 4,131,939 9,609,868
SHARES REDEEMED -
SERVICE CLASS........ (3,556,663,447) (4,599,026,227)
------------------- ------------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
SERVICE CLASS.......... 141,399,869 20,416,104
------------------- ------------------
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0
------------------- ------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
<PAGE>
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
(1) This class of shares commenced operations on November 8, 1999.
(2) "Proceeds from shares sold" includes $2,053,684,696 for Service Class, and
"Shares sold" includes 2,053,752,793 for Service Class, as a result of the
consolidation of the Service and Administrative Class shares of the
Stagecoach Prime Money Market Fund. "Proceeds from shares sold" includes
$1,698,113,998 for the Institutional Class, and "Shares sold" includes
1,698,194,434 for the Institutional Class as a result of the consolidation
of the Stagecoach Prime Money Market Fund.
(3) "Proceeds from shares sold" includes $35,535,275 for Institutional Class,
and "Shares sold" includes 35,542,045 for Institutional Class as a result
of the consolidation of the Stagecoach National Tax-Free Money Market
Fund.
(4) This class of shares merged into the Well Fargo National Tax-Free Money
Market Fund on November 8, 1999.
(5) "Proceeds from shares sold" includes $59,954,527 for Class A, and "Shares
sold" includes 59,955,742 for Class A as a result of the consolidation of
the Stagecoach Government Money Market Fund.
(6) This class of shares merged into the Well Fargo Money Market Fund on
November 8, 1999.
(7) The Institutional Class of shares became Service Class shares on
November 8, 1999.
(8) "Proceeds from shares sold" includes $106,952,490 for Service Class, and
"Shares sold" includes 106,961,046 for Service Class as a result of the
consolidation of the Norwest Treasury Plus Money Market Fund.
(9) This class of shares merged into the Wells Fargo Treasury Plus Money
Market Fund on November 8, 1999.
(10) The Administrative Class of shares became Service Class shares on
November 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
51
<PAGE>
/
MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS
NET ASSET NET UNREALIZED FROM NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT
SHARE INCOME INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.02 0.00 (0.02)
NOVEMBER 8, 1999(2) TO
MARCH 31, 2000......... 1.00 0.01 0.00 (0.01)
CASH INVESTMENT MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.03 0.00 (0.03)
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0.00 (0.04)
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0.00 (0.05)
GOVERNMENT MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.03 0.00 (0.03)
JUNE 1, 1999 TO
MARCH 31, 2000(3) ..... 1.00 0.04 0.00 (0.04)
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0.00 (0.05)
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.02 0.00 (0.02)
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.03 0.00 (0.03)
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.03 0.00 (0.03)
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.03 0.00 (0.03)
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.03 0.00 (0.03)
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.04 0.00 (0.04)
100% TREASURY MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.03 0.00 (0.03)
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0.00 (0.04)
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.04 0.00 (0.04)
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0.00 (0.05)
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0.00 (0.05)
PRIME INVESTMENT MONEY MARKET FUND
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.03 0.00 (0.03)
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0.00 (0.04)
SEPTEMBER 2, 1998(2) TO
MAY 31, 1999........... 1.00 0.04 0.00 (0.04)
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND(5)
----------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 1.00 0.03 0.00 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000......... 1.00 0.05 0.00 (0.05)
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.05 0.00 (0.05)
APRIL 1, 1997 TO
MARCH 31, 1998......... 1.00 0.05 0.00 (0.05)
OCTOBER 1, 1996 TO
MARCH 31, 1997(6)...... 1.00 0.02 0.00 (0.02)
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 1.00 0.05 0.00 (0.05)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<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>
------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 3.39% 0.45% 0.51% 1.70% $ 145,395
NOVEMBER 8, 1999(2) TO
MARCH 31, 2000......... 0.00 1.00 2.69% 0.45% 0.51% 1.10% 75,697
CASH INVESTMENT MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 6.08% 0.48% 0.55% 3.07% 9,680,235
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 0.00 1.00 5.23%(4) 0.48%(4) 0.54%(4) 4.37% 9,082,788
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 1.00 4.91%(4) 0.48%(4) 0.57%(4) 5.04% 5,481,802
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 1.00 5.29%(4) 0.48%(4) 0.57%(4) 5.42% 4,685,818
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 1.00 5.07% 0.48% 0.49% 5.21% 2,147,894
JUNE 1, 1995 TO MAY 31,
1996................... 0.00 1.00 5.36% 0.48% 0.49% 5.50% 1,739,549
GOVERNMENT MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 5.93% 0.50% 0.57% 3.00% 2,806,681
JUNE 1, 1999 TO
MARCH 31, 2000(3) ..... 0.00 1.00 4.94% 0.50% 0.54% 4.18% 3,433,956
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 1.00 4.69% 0.50% 0.52% 4.81% 3,368,534
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 1.00 5.08% 0.50% 0.51% 5.20% 2,260,208
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 1.00 4.91% 0.49% 0.49% 5.04% 1,912,574
JUNE 1, 1995 TO MAY 31,
1996................... 0.00 1.00 5.13% 0.50% 0.51% 5.27% 1,649,721
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 3.89% 0.45% 0.57% 1.96% 935,014
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 0.00 1.00 3.05% 0.45% 0.57% 2.58% 1,124,073
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 1.00 2.91% 0.45% 0.57% 2.97% 1,019,589
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 1.00 3.32% 0.45% 0.59% 3.39% 977,693
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 1.00 3.21% 0.45% 0.70% 3.28% 635,655
JUNE 1, 1995 TO MAY 31,
1996................... 0.00 1.00 3.41% 0.45% 0.72% 3.52% 592,436
100% TREASURY MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 5.57% 0.46% 0.55% 2.81% 2,120,421
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 0.00 1.00 4.67% 0.46% 0.54% 3.94% 1,702,250
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 1.00 4.34% 0.46% 0.53% 4.49% 1,548,549
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 1.00 4.89% 0.46% 0.54% 5.00% 1,440,515
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 1.00 4.74% 0.46% 0.53% 4.87% 1,003,697
JUNE 1, 1995 TO MAY 31,
1996................... 0.00 1.00 4.91% 0.46% 0.56% 5.04% 802,270
PRIME INVESTMENT MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 6.07% 0.55% 0.66% 3.05% 721,105
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 0.00 1.00 5.15%(4) 0.55%(4) 0.93%(4) 4.30% 222,523
SEPTEMBER 2, 1998(2) TO
MAY 31, 1999........... 0.00 1.00 4.69%(4) 0.54%(4) 0.74%(4) 3.59% 68,771
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND(5)
------------------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 1.00 5.80% 0.46% 0.56% 2.92% 609,705
APRIL 1, 1999 TO
MARCH 31, 2000......... 0.00 1.00 5.04% 0.45% 0.63% 4.76% 468,150
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 1.00 4.70% 0.45% 0.70% 4.83% 447,886
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 1.00 5.07% 0.45% 0.65% 5.20% 367,111
OCTOBER 1, 1996 TO
MARCH 31, 1997(6)...... 0.00 1.00 4.91% 0.45% 0.61% 2.47% 483,401
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 0.00 1.00 4.98% 0.45% 0.60% 5.03% 1,340,325
</TABLE>
53
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
(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) Commencement of operations
(3) The Fund changed its fiscal year-end from May 31 to March 31
(4) Includes expenses allocated from the affiliated Portfolio(s) in which the
Fund invests.
(5) The Fund operated as a portfolio of Pacific American Funds through October
1, 1994, when it was reorganized as the Pacific American U.S. Treasury
Portfolio, a portfolio of Pacifica Funds Trust. In July 1995, the Fund was
renamed the Pacifica Treasury Money Market Fund, and on September 6, 1996,
the Fund was reorganized as a series of Stagecoach Funds, Inc. In
conjunction with the September 6, 1996 reorganization, WFB assumed
investment advisory responsibilites. Prior to April 1, 1996, First
Interstate Capital Management, Inc. ("FICM") served as the Fund's adviser.
In connection with the merger of First Interstate Bancorp into Wells
Fargo & Co. on April 1, 1996, FICM was renamed Wells Fargo Investment
Management, Inc., subsequently renamed Wells Capital
Management, Incorporated.
(6) The Fund changed its fiscal year end from September 30 to March 31.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
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 California Tax-Free Money Market, Cash Investment Money
Market, Government Money Market, National Tax-Free Institutional Money Market,
100% Treasury Money Market, Prime Investment Money Market, and Treasury Plus
Institutional Money Market Funds (each, a "Fund", collectively, the "Funds"),
each with the exception of the California Tax-Free Money Market Fund, a
diversified series of the Trust. The California Tax-Free Money Market Fund is
a non-diversified series of the Trust.
The California Tax-Free Money Market, Government Money Market, and 100%
Treasury Money Market Funds offer Class A and Service Class shares. The Cash
Investment Money Market, National Tax-Free Institutional Money Market, and
Treasury Plus Institutional Money Market Funds offer Service Class and
Institutional Class shares. The Prime Investment Money Market Fund only offers
Service Class 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
the relative weightings of pro rata income and realized gain allocations and
from differences in separate class expenses, including distribution,
shareholder servicing and transfer agency fees.
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 Funds invest only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolios 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 Funds use the amortized cost method to value their 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 Funds seek to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that they 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
Each Fund, with exception to the 100% Treasury Money Market and National
Tax-Free Institutional Money Market Funds, may invest in repurchase agreements
and may participate in pooled repurchase agreement transactions with other
funds advised by Wells Fargo Bank, N.A. ("WFB"). The repurchase agreements
must be fully collateralized based on values that are marked to market daily.
The collateral may be held by an agent bank under a tri-party agreement. It is
the Funds' custodian's responsibility to value
55
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements held by the Funds are collateralized by instruments
such as U.S. Treasury, federal agency, or high-grade corporate obligations.
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 distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at
September 30, 2000.
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Fund Year Expires Capital Loss Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 2002 $ 92,680
2003 31,569
2005 144,877
2006 25,929
2007 358,280
2008 10,810
100% TREASURY MONEY MARKET FUND 2008 780,757
GOVERNMENT MONEY MARKET FUND 2008 107,576
NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND 2008 47,645
PRIME INVESTMENT MONEY MARKET FUND 2008 5,205
TREASURY PLUS INSTITUTIONAL MONEY MARKET
FUND 2008 12,004
</TABLE>
The 100% Treasury Money Market Fund has current post-October deferred capital
losses of $385,239. Such losses will be recognized for tax purposes on the
first day of the following tax year.
56
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
3. ADVISORY FEES
The Trust has entered into separate advisory contracts on behalf of the Funds
with WFB. Pursuant to the contracts, WFB has agreed to provide the following
Funds with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
Fund % of Average Daily Net Assets
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 0.30
CASH INVESTMENT MONEY MARKET FUND 0.10
GOVERNMENT MONEY MARKET FUND 0.35
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND 0.10
100% TREASURY MONEY MARKET FUND 0.35
PRIME INVESTMENT MONEY MARKET FUND 0.10
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND 0.10
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Funds. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Funds, a
monthly fee at the annual rate of 0.05% of each Fund's average daily net
assets up to $1 billion and 0.04% of each Fund's average daily net assets in
excess of $1 billion.
4. DISTRIBUTION FEES
There are no distribution fees for Service Class shares.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB provides administrative services to the Trust and is
entitled to receive monthly fees at the annual rate of 0.15% of each Fund's
average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Cash Investment Money Market,
National Tax-Free Institutional Money Market, Prime Investment Money Market,
and Treasury Plus Institutional Money Market Funds are charged 0.25% of the
average daily net assets of each Fund for Service Class shares for these
services. No fee is charged for Service Class shares of the California
Tax-Free Money Market, Government Money Market, and 100% Treasury Money Market
Funds.
The shareholder servicing fees paid on behalf of the Funds for the period
ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Service Class
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND $ 0
CASH INVESTMENT MONEY MARKET FUND 11,503,681
GOVERNMENT MONEY MARKET FUND 0
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND 1,166,874
100% TREASURY MONEY MARKET FUND 0
PRIME INVESTMENT MONEY MARKET FUND 702,628
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND 704,667
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. In addition, the Trust has entered into contracts on
behalf of each 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 Funds. Pursuant to the contracts, WFB MN is entitled
to certain
57
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
transaction charges plus a monthly fee for custody services at the annual rate
of 0.02% of the average daily net assets of each Fund.
Certain officers of the Trust were also officers of Stephens for a portion of
the period. As of September 30, 2000, Stephens owned 10 shares of the
California Tax-Free Money Market Fund Service Class, 86 shares of the Cash
Investment Money Market Fund Service Class and 13,612 shares of the Treasury
Plus Institutional Money Market Fund Service Class.
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>
CALIFORNIA TAX-FREE MONEY MARKET FUND CALIFORNIA TAX-FREE MONEY MARKET
(A)* FUND
PRIME MONEY MARKET FUND (AD, SVC, I) CASH INVESTMENT FUND (SVC)* CASH INVESTMENT MONEY MARKET
FUND
GOVERNMENT MONEY MARKET FUND (A) U.S. GOVERNMENT FUND (SVC)* GOVERNMENT MONEY MARKET FUND
NATIONAL TAX-FREE MONEY MARKET FUND (I) MUNICIPAL MONEY MARKET FUND (SVC)* NATIONAL TAX-FREE INSTITUTIONAL
MONEY MARKET FUND
TREASURY FUND (SVC)* 100% TREASURY MONEY MARKET FUND
READY CASH INVESTMENT FUND (I)* PRIME INVESTMENT MONEY MARKET
FUND
TREASURY PLUS MONEY MARKET FUND (AD, TREASURY PLUS FUND (SVC) TREASURY PLUS INSTITUTIONAL MONEY
SVC, I)* MARKET FUND
</TABLE>
* ACCOUNTING SURVIVOR
In the Consolidation, the Wells Fargo Cash Investment Money Market Fund
acquired all of the net assets attributable to Administrative, Service and
Institutional share classes of the Stagecoach Prime Money Market Fund and all
of the net assets of the Service class of the Norwest Advantage Cash
Investment Fund. The Administrative, Service and Institutional share classes
of the Stagecoach Prime Money Market Fund exchanged their 3,751,947,227 shares
for 3,751,947,227 shares of the Wells Fargo Cash Investment Money Market Fund.
Concurrent with the Consolidation, Administrative shares of the Stagecoach
Prime Money Market Fund became Service shares of the Wells Fargo Cash
Investment Money Market Fund.
In the Consolidation, the Wells Fargo Government Money Market Fund acquired
all of the net assets of the Stagecoach Government Money Market Fund and
Norwest Advantage U.S. Government Fund. The Stagecoach Government Money Market
Fund exchanged its 59,955,742 shares for 59,955,742 shares of the Wells Fargo
Government Money Market Fund.
In the Consolidation, the Wells Fargo National Tax-Free Institutional Money
Market Fund acquired all of the net assets of the Institutional share class of
the Stagecoach National Tax-Free Money Market Fund and all of the net assets
of the Service share class of the Norwest Advantage Municipal Money Market
Fund. The Institutional share class of the Stagecoach National Tax-Free Money
Market Fund exchanged its 35,542,045 shares for 35,542,045 shares of the Wells
Fargo National Tax-Free Institutional Money Market Fund.
In the Consolidation, the Wells Fargo Treasury Plus Institutional Money
Market Fund acquired all of the net assets of the Administrative, Service and
Institutional shares of the Stagecoach Treasury Plus Money Market Fund and the
Service shares of the Norwest Advantage Treasury Plus Fund. The Norwest
Advantage Treasury Plus Fund exchanged its 106,961,046 shares for 106,961,046
shares of the Wells Fargo Treasury Plus Institutional Money Market Fund.
Concurrent with the Consolidation, the Administrative
58
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NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
shares of the Stagecoach Treasury Plus Money Market Fund became Service shares
of the Wells Fargo Treasury Plus Institutional Money Market Fund.
At the time of the Consolidation, the Cash Investment Money Market and Prime
Investment Money Market Funds, structured as "Gateway" Funds in a
"Core-Gateway" structure, were restructured to invest directly in a portfolio
of securities, rather than to invest in portfolio securities through "Core"
portfolios (Prime Money Market Portfolio, Money Market Portfolio).
59
<PAGE>
MONEY MARKET FUNDS LIST OF ABBREVIATIONS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
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
60
<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.
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P.O. Box 8266
Boston, MA 02266-8266
DATED MATERIAL
PLEASE EXPEDITE
[RECYCLED LOGO] SAR 006 (11/00)
