February 4, 2000
Wells Fargo Stock Funds
Prospectus
Please read this Prospectus and keep it for future
reference. It is designed to provide you with
important information and to help you decide if the
Funds goals match your own.
Equity Index Fund These securities have not been approved
Class O or disapproved by the U.S. Securities and
Exchange Commission ("SEC"),
nor has the SEC passed upon the
accuracy or adequacy of this Prospectus.
Any representation to the contrary is a
criminal offense.
Fund shares are NOT deposits or other obligations of,
or issued, endorsed or guaranteed by Wells Fargo
Bank, N.A. ("Wells Fargo Bank") or any of its
affiliates. Fund shares are NOT insured or guaranteed
by the U.S. Government, the Federal Deposit Insurance
Corporation ("FDIC") or any other governmental
agency. AN INVESTMENT IN THE FUND INVOLVES CERTAIN
RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
TABLE OF CONTENTS
Overview Objective and Principal
Strategy
This section contains Summary of Important Risks
important summary Performance History
information about the Summary of Expenses
Fund. Key Information
The Fund
This section contains General Investment Risks
important information Organization and Management
about the Fund. of the Fund
Your Account
Turn to this section for How to Buy Shares information on how to How to Sell
Shares open an account and how to buy, sell and exchange Fund shares.
Reference Additional Services and
Other Information
Look here for Portfolio Managers
additional information
and term definitions Glossary
<PAGE>
Equity Index Fund Overview
See the individual Fund description in this Prospectus for further details.
Objective
Seeks to approximate the total rate of return of substantially all common stocks
comprising the S&P 500 Index.
Principal Strategy
The Fund invests in common stocks to replicate the S&P 500 Index. We invest in
each company comprising the S&P 500 Index in proportion to its weighting in the
S&P 500 Index. Regardless of market conditions, the Fund attempts to achieve a
95% correlation between the performance of the S&P 500 Index and the Fund's
investment results.
<PAGE>
Summary of Important Risks
This section summarizes important risks for the Fund described in this
Prospectus. Additional information about these and other risks is included
in:
o the individual Fund Description later in this Prospectus; o under the "General
Investment Risks" section beginning on page 11; and o in the Fund's Statement of
Additional Information.
An investment in the Fund is not a deposit of Wells Fargo Bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. It is possible to lose money by investing in the
Fund.
The Fund invest in equity securities, which are subject to equity market
risk. This is the risk that stock prices will fluctuate and can decline and
reduce the value of the Fund's portfolio. Certain types of stock and certain
individual stocks selected for the Fund's portfolio may underperform or
decline in value more than the overall market. As of the date of this
Prospectus, the equity markets, as measured by the S&P 500 Index and other
commonly used indexes, are trading at or close to record levels. There can be
no guarantee that these levels will continue.
We attempt to match as closely as possible the performance of the S&P 500
Index. Therefore, during periods when the S&P 500 Index loses value, your
investment will also lose value.
<PAGE>
Performance History
This Class of shares has been in operation for less than one calendar year,
therefore no performance information is shown.
<PAGE>
Summary of Expenses
These tables are intended to help you understand the various costs and
expenses you will pay as a shareholder in the Fund. These tables do not
reflect charges that may be imposed in connection with an account through
which you hold Fund shares.
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Shareholder Fees Equity Index Fund
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Class O
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Maximum sales charge (load)
imposed on purchases (as a percentage of
offering price) None
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Maximum deferred sales charge (load)
(as a percentage of the lower of the Net None
Asset Value ("NAV") at purchase or the NAV
at redemption)
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Equity Index Fund
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Class O
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Management Fee 0.25%
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Distribution (12b-1) Fee 0.00%
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Other Expenses1 0.40%
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TOTAL ANNUAL FUND
OPERATING
EXPENSES 0.65%
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Fee Waivers2 0.15%
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NET EXPENSES 0.50%
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1 Other Expenses are based on estimated amounts for the current fiscal year.
2 Fee waivers are contractual and apply for one year from the closing date of
the reorganization (November 5, 1999). After this time, the Advisor, with Board
approval, may reduce or eliminate such waivers.
<PAGE>
Summary of Expenses (Cont'd)
Example of Expenses
These examples are intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The examples assume a
fixed rate of return and the fund operating expenses remain the same. Your
actual costs may be higher or lower than those shown.
You would pay the following expenses on a $10,000 investment assuming a 5%
annual return and that you redeem your shares at the end of each period:
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Equity Index Fund
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Class O
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1 YEAR $ 51
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3 YEARS $193
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5 YEARS $347
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10 YEARS $796
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<PAGE>
Key Information
Important information you should look for as you decide to invest in the Fund:
The summary information on the previous pages is designed to provide you with an
overview of the Fund. The sections that follow provide more detailed information
about the investments and management of the Fund.
Investment Objective and Investment Strategy
The investment objective of the Fund in this Prospectus is non-fundamental, that
is, it can be changed by a vote of the Board of Trustees alone. The objective
and strategy descriptions for the Fund tell you: o what the Fund is trying to
achieve; and o how we intend to invest your money.
Permitted Investments
A summary of the Fund's key permitted investments and practices.
Important Risk Factors
Describes the key risk factors for the Fund, and includes risks described in the
"Summary of Important Risks" and "General Investment Risks" sections.
Words appearing in italicized print and highlighted in color are defined in the
Glossary.
<PAGE>
Equity Index Fund
Portfolio Managers: David D. Sylvester; Laurie R. White
Investment Objective
The Equity Index Fund seeks to approximate to the extent practicable the total
rate of return of substantially all common stocks comprising the S&P 500 Index.
Investment Strategies
We invest in common stocks to replicate the S&P 500 Index. We do not
individually select common stocks on the basis of traditional investment
analysis. Instead, we invest in each company comprising the S&P 500 Index in
proportion to its weighting in the S&P 500 Index. The Fund attempts to achieve
at least a 95% correlation between the performance of the S&P 500 Index and our
investment results, before expenses. This correlation is sought regardless of
market conditions.
A precise duplication of the performance of the S&P 500 Index would mean that
the net asset value of Fund shares, including dividends and capital gains would
increase or decrease in exact proportion to changes in the S&P 500 Index. Such a
100% correlation is not feasible. Our ability to track the performance of the
S&P 500 Index may be affected by, among other things, transaction costs and
shareholder purchases and redemptions. We will regularly monitor the performance
and composition of the S&P 500 Index, and adjust the Fund's portfolio as
necessary in order to achieve at least 95% correlation.
Permitted Investments
Under normal market conditions, we invest:
o in a diversified portfolio of common stocks designed to replicate the holdings
and weightings of the stocks listed on the S&P 500 Index;
o in stock index futures and options on stock indexes as a substitute for
comparable position in the underlying securities; and o in interest-rate futures
contracts, options or interest rate swaps and index swaps.
We may temporarily hold assets in cash or in money market instruments, including
U.S. Government obligations, shares of other mutual funds and repurchase
agreements, or make other short-term investments, either to maintain liquidity
or for short-term defensive purposes when we believe it is in the best interests
of shareholders to do so. During such periods, the Fund may not achieve its
objective of approximating the total rate of return of the S&P 500 Index.
Important Risk Factors
We attempt to match as closely as possible the performance of the S&P 500 Index.
Therefore, during periods when the S&P 500 Index is losing value, your
investment will also lose value.
You should consider the "Summary of Important Risks" section on page 4, the
"General Investment Risks" section beginning on page 11, and the specific risks
listed here. They are all important to your investment choice.
<PAGE>
<TABLE>
Financial Highlights
Equity Index Fund
Class O
September 30, 1999
<S> <C>
Net Asset Value, beginning of period $78.00
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Income from investment operations:
Net investment income (loss) 0.44
Net realized and unrealized gain (loss) on investments 0.45
----
Total from investment operations Less Distributions: 0.89
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Dividends from net investment income (0.16)
Distributions form net realized gain 0.00
Tax return of capital 0.00
Total from distributions (0.16)
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Net asset value, end of period $78.73
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Total return (not annualized)1 27.22%
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Ratios/supplemental data:
Net assets, end of period (000s) $0
Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.00%
Ratio of net investment income (loss) to average net assets 0.00%
PORTFOLIO TURNOVER 6%
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.00%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 0.00%
1 This Class of shares commenced operations on February 1, 1999.
</TABLE>
<PAGE>
General Investment Risks
Understanding the risks involved in mutual fund investing will help you make an
informed decision that takes into account your risk tolerance and preferences.
You should carefully consider the risks common to investing in all mutual funds,
including the Wells Fargo Funds. Certain common risks are identified in the
"Summary of Important Risks" section on page 4. Other risks of mutual fund
investing include the following:
o Unlike bank deposits, such as CDs or savings accounts, mutual funds
are not insured by the FDIC. o We cannot guarantee that we will meet
our investment objectives.
o We do not guarantee the performance of the Fund, nor can we assure you
that the market value of your investment will not decline. We will not
"make good" any investment loss you may suffer, nor can anyone we
contract with to provide certain services, such as selling agents or
investment advisors, offer or promise to make good any such losses.
o Share prices -- and therefore the value of your investment -- will
increase and decrease with changes in the value of the underlying
securities and other investments. This is referred to as price
volatility.
o Investing in any mutual fund, including those deemed conservative,
involves risk, including the possible loss of any money you invest.
o An investment in a single Fund, by itself, does not constitute a
complete investment plan.
o The Fund may also use certain derivative instruments, such as options
or futures contracts. The term "derivatives" covers a wide number of
investments, but in general it refers to any financial instrument
whose value is derived, at least in part, from the price of another
security or a specified index, asset or rate. Some derivatives may be
more sensitive to interest rate changes or market moves, and some may
be susceptible to changes in yields or values due to their structure
or contract terms.
Investment practices and risk levels are carefully monitored. Every attempt is
made to ensure that the risk exposure for the Fund remains within the parameters
of its objective.
What follows is a general list of the types of risks (some of which are
described previously) that may apply to the Fund and a table showing some of the
additional investment practices that the Fund may use and the risks associated
with them. Additional information about these practices is available in the
Statement of Additional Information.
Counter-Party Risk -- The risk that the other party in a repurchase agreement or
other transaction will not fulfill its contract obligation.
Credit Risk -- The risk that the issuer of a debt security will be unable to
make interest payments or repay principal on schedule. If an issuer does
default, the affected security could lose all of its value, or be renegotiated
at a lower interest rate or principal amount. Affected securities might also
lose liquidity. Credit risk also includes the risk that a party in a transaction
may not be able to complete the transaction as agreed.
Currency Risk-- The risk that a change in the exchange rate between U.S. dollars
and a foreign currency may reduce the value of an investment made in a security
denominated in that foreign currency.
Diplomatic Risk--The risk that an adverse change in the diplomatic relations
between the United States and another country might reduce the value of
liquidity of investments in either country.
Emerging Market Risk--The risk that the emerging market, as defined in the
glossary, may be more sensitive to certain economic changes. For example,
emerging market countries are often dependent on international trade and are
therefore often vulnerable to recessions in other countries. They may have
obsolete financial systems, have volatile currencies and may be more sensitive
than more mature markets to a variety of economic factors. Emerging market
securities may also be less liquid than securities of more developed countries
and could be difficult to sell, particularly during a market downturn.
General Investment Risks (Cont'd)
Experience Risk--The risk presented by a new or innovative security. The risk is
that insufficient experience exists to forecast how the security's value might
be affected by various economic conditions.
Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.
Interest Rate Risk--The risk that changes in interest rates can reduce the value
of an existing security. Generally, when interest rates increase, the value of a
debt security decreases. The effect is usually more pronounced for securities
with longer dates to maturity.
Leverage Risk--The risk that an investment practice, such as lending portfolio
securities or engaging in forward commitment or when issued securities
transactions, may increase a Fund's exposure to market risk, interest rate risk
or other risks by, in effect, increasing assets available for investment.
Liquidity Risk--The risk that a security cannot be sold at the time desired, or
cannot be sold without adversely affecting the price.
Market Risk--The risk that the value of a stock, bond or other security will be
reduced by market activity. This is a basic risk associated with all securities.
Political Risk--The risk that political actions, events or instability may be
unfavorable for investments made in a particular nation's or region's industry,
government or markets.
Prepayment Risk--The risk that consumers will accelerate their prepayment of
mortgage loans or other receivables, which can shorten the maturity of a
mortgage-backed or other asset-backed security, and reduce a portfolio's return.
Regulatory Risk--The risk that changes in government regulations will adversely
affect the value of a security. Also the risk that an insufficiently regulated
market might permit inappropriate trading practices.
Year 2000 Risk--The Fund's principal service providers have advised the Fund
that they have made the necessary changes to their computer systems to avoid any
system failure based on an inability to distinguish the year 2000 from the year
1900. Year 2000 risks remain throughout the year, and may also adversely affect
the companies or entities in which the Funds invest, especially foreign
entities, which may be less technologically prepared. The extent of such impact
cannot be predicted.
In addition to the general risks discussed above, you should carefully consider
and evaluate any special risks that may apply to investing in the Fund. See the
"Important Risk Factors" section in the summary for the Fund. You should also
see the Statement of Additional Information for additional information about the
investment practices and risks particular to the Fund.
<PAGE>
General Investment Risks (Cont'd)
Investment Practice/Risk
The following table lists some of the additional investment practices of the
Fund, including some not disclosed in the Investment Objective and Investment
Strategies sections of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that practice,
but are among the more prominent. Market risk is assumed for each. See the
Investment Objective and Investment Strategies for the Fund or the Statement of
Additional Information for more information on these practices.
Investment practices and risk levels are carefully monitored. We attempt to
ensure that the risk exposure for the Fund remains within the parameters of its
objective.
---
EQUITY INDEX
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Investment Practice Risk
- --------------------------------------------------- ------------------
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- --------------------------------------------------- ------------------
- --------------------------------------------------- ------------------ ---
Borrowing Policies
The ability to borrow from banks for temporary Leverage Risk o
purposes to meet shareholder redemptions.
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Floating and Variable Rate Debt
Instruments with interest rates that are adjusted Interest Rate o
either on a schedule or when an index or and Credit Risk
benchmark changes.
- --------------------------------------------------- ------------------ ---
- --------------------------------------------------- ------------------ ---
Foreign Securities
Equity securities issued by a non-U.S. company or Information,
debt securities of a foreign government in the Political, o
form of an American Depository Receipt or similar Regulatory,
investment. Foreign securities may also be Diplomatic,
emerging market securities, which are subject to Liquidity and
the same risks, but to a higher degree. Currency Risk
- --------------------------------------------------- ------------------ ---
<PAGE>
- --------------------------------------------------- ------------------ ---
Forward Commitment, When-Issued and Delayed
Delivery Transactions
Securities bought or sold for delivery at a later Interest Rate, o
date or bought or sold for a fixed price at a Leverage, Credit
fixed date. and
Experience Risk
- --------------------------------------------------- ------------------ ---
<PAGE>
General Investment Risks (Cont'd)
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EQUITY INDEX
- --------------------------------------------------- ------------------ ---
Investment Practice Risk
- --------------------------------------------------- ------------------
- --------------------------------------------------- ------------------ ---
Illiquid Securities
A security that cannot be readily sold, or cannot Liquidity Risk o
be readily sold without negatively affecting its
fair price. Limited to 15% of total assets.
- --------------------------------------------------- ------------------ ---
Loans of Portfolio Securities
The practice of loaning securities to brokers, Credit,
dealers and financial institutions to increase Counter-Party o
return on those securities. Loans may be made up and Leverage Risk
to Investment Company Act of 1940 limits (currently
one-third of total assets including the value of
the collateral record).
- --------------------------------------------------- ------------------ ---
Options
The right or obligation to receive or deliver a Credit,
security or cash payment depending on the Information o
security's price or the performance of an index and Liquidity
or benchmark. Types of options used may Risk
include: options on securities, options on a
stock index, stock index futures and options on
stock index futures to protect liquidity and
portfolio value.
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- --------------------------------------------------- ------------------ ---
Other Mutual Funds
The temporary investment in shares of another Market Risk mutual fund. A pro
rata portion of the other o fund's expenses, in addition to the expenses paid by
the Fund, will be borne by Fund shareholders.
- --------------------------------------------------- ------------------ ---
- --------------------------------------------------- ------------------ ---
Privately Issued Securities
Securities that are not publicly traded but which Credit and o
may or may not be resold in accordance with Rule Counter-Party
144A of the Securities Act of 1933. Risk
- --------------------------------------------------- ------------------ ---
Repurchase Agreements
A transaction in which the seller of a security Liquidity Risk o
agrees to buy back a security at an agreed upon
time and price, usually with interest.
- --------------------------------------------------- ------------------ ---
<PAGE>
Organization and Management of the Funds
A number of different entities provide services to the Fund. This section shows
how the Fund is organized, lists the entities that perform different services,
and explains how these service providers are compensated. Further information is
available in the Statement of Additional Information for the Fund.
About Wells Fargo Funds Trust
Wells Fargo Funds Trust (the "Trust") was organized as a Delaware business trust
on March 10, 1999. The Board of Trustees of the Trust supervises the Fund's
activities, monitors its contractual arrangements with various service providers
and decides upon matters of general policy.
The Trust was created to succeed to the assets and operations of the various
mutual funds in the Stagecoach Family of Funds and the Norwest Advantage Family
of Funds. The holding company of Wells Fargo Bank, the investment advisor to the
Stagecoach Family of Funds, and the holding company of Norwest Investment
Management, Inc., the investment advisor to the Norwest Advantage Family of
Funds, merged in November 1998. The Fund described in this Prospectus has
succeeded to the assets and operations of a corresponding Fund of Stagecoach
Funds. The performance and financial statement history of the Fund's designated
predecessor Fund has been assumed by the Wells Fargo Funds Trust Fund. The
succession transactions were approved by the shareholders of the Stagecoach
Fund.
The Board of Trustees of the Trust supervises the Fund's activities and approves
the selection of various companies hired to manage the Fund's operation. The
major service providers are described in the diagram below. Except for the
advisors, which require shareholder vote to change, if the Board believes that
it is in the best interest of the shareholders it may make a change in one of
these companies.
<PAGE>
Organization and Management of the Funds (Cont'd)
<TABLE>
<S> <C>
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BOARD OF TRUSTEES
- ------------------------------------------------------------------------------------
Supervises the Fund's activities
- ------------------------------------------------------------------------------------
- ------------------------------------------ -----------------------------------------
INVESTMENT ADVISOR CUSTODIAN
- ------------------------------------------ -----------------------------------------
Wells Fargo Bank, N.A. Norwest Bank Minnesota, N.A.
525 Market St., San Francisco, CA 6th Street & Marquette, Minneapolis, MN
Manages the Fund's investment Provides safekeeping for the Fund's assets
activities
- ------------------------------------------ -----------------------------------------
- ------------------------------------------------------------------------------------
INVESTMENT SUB-ADVISOR
- ------------------------------------------------------------------------------------
Wells Capital Management Incorporated
525 Market St., San Francisco, CA
Manages the Fund's investment
activities
- ------------------------------------------------------------------------------------
- -------------------- ----------------------- ----------------------- ---------------
SHAREHOLDER
TRANSFER SERVICING
DISTRIBUTOR ADMINISTRATOR AGENT AGENTS
- -------------------- ----------------------- ----------------------- ---------------
Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data Various Agents
111 Center St. 525 Market Street Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Drive
Markets the Fund, Manages the Quincy, MA Provide
and distributes Fund's business Maintains records services to
Fund shares activities of shares and customers
supervises the
paying of dividends
-------------------- ----------------------- ----------------------- ---------------
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FINANCIAL SERVICES FIRMS AND SELLING AGENTS
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Advise current and prospective shareholders on their Fund investments
------------------------------------------------------------------------------------
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SHAREHOLDERS
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</TABLE>
<PAGE>
Organization and Management of the Funds (Cont'd)
In the following sections, the percentages shown are the percentages of the
average daily net assets of the Fund paid in an annual basis for the services
described.
The Investment Advisor
Wells Fargo Bank provides portfolio management and fundamental security analysis
services as the advisor for the Fund. Wells Fargo Bank, founded in 1852, is the
oldest bank in the western United States and is one of the largest banks in the
United States. Wells Fargo Bank is a wholly owned subsidiary of Wells Fargo &
Company, a national bank holding company. As of June 30, 1999, Wells Fargo Bank
and its affiliates provided advisory services for over $131 billion in assets.
For providing these services, Wells Fargo Bank is entitled to receive a fee of
0.25% of the average annual net assets of the Fund.
The Sub-Advisor
Wells Capital Management Incorporated ("WCM"), a wholly owned subsidiary of
Wells Fargo Bank, N.A., is the sub-advisor for the Fund. In this capacity, it is
responsible for the day-to-day investment management activities of the Funds. As
of June 30, 1999, WCM provided advisory services for over $42 billion in assets.
The Administrator
Wells Fargo Bank provides the Fund with administration services, including
general supervision of the Fund's operation, coordination of the other services
provided to the Fund, compilation of information for reports to the SEC and the
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trust's Trustees and officers. Wells Fargo
Bank also furnishes office space and certain facilities to conduct the Fund's
business. For providing these services, Wells Fargo Bank is entitled to receive
a fee of 0.15% of the average annual net assets of the Fund.
Shareholder Servicing Plan
We have a shareholder servicing plan for the Fund. Under this plan, we have
engaged various shareholder servicing agents to process purchase and redemption
requests, to service shareholder accounts, and to provide other related
services. For these services, the Fund pays 0.25% of its average net assets.
The Transfer Agent
Boston Financial Data Services, Inc. ("BFDS") provides transfer agency and
dividend disbursing services to the Fund. For providing these services, BFDS
receives an annual fee, certain transaction-related fees, and is reimbursed for
out-of-pocket expenses incurred on behalf of the Fund.
<PAGE>
Your Account
This section tells you how Fund shares are priced, how to open an account and
how to buy and sell Fund shares once your account is open.
Pricing Fund Shares
o As with all mutual fund investments, the price you pay to purchase shares
or the price you receive when you redeem shares is not determined until
after a request has been received in proper form.
o We determine the NAV each business day as of the close of regular trading
on the New York Stock Exchange ("NYSE"). We determine the NAV by
subtracting the Fund class's liabilities from its total assets, and then
dividing the result by the total number of outstanding shares of the class.
The Fund's assets are generally valued at current market prices. See the
Statement of Additional Information for further disclosure.
o We process requests to buy or sell shares of the Fund each business day as
of the close of regular trading on the NYSE, which is usually 1:00 p.m.
(Pacific time)/3:00 p.m. (Central time). If the markets close early, the
Funds may close early and may value its shares at earlier times under these
circumstances. Any request we receive in proper form before this time is
processed the same day. Requests we receive after the cutoff time are
processed the next business day.
o The Fund is open for business on each day the NYSE is open for business.
NYSE holidays include New Year's Day, Martin Luther King, Jr. Day,
President's Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day. When any holiday falls on a weekend,
the NYSE typically is closed on the weekday immediately before or after
such holiday.
How to Buy Shares
o You can buy Fund shares through an online account established with an approved
selling agent.
Minimum Investments
o $1,000 minimum initial investment; or o $100 if you use the Systematic
Purchase Program; and o $100 for all investments after your first.
<PAGE>
How to Sell Shares
You can sell Fund shares through your online account.
o We will process requests to sell shares at the first NAV calculated after a
request in proper form is received. Requests received before the cutoff
times are processed on the same business day.
o We reserve the right to delay payment of a redemption so that we may be
reasonably certain that investments made by check or Systematic Purchase
Plan have been collected. Payments of redemptions also may be delayed under
extraordinary circumstances or as permitted by the SEC in order to protect
remaining shareholders.
o Generally, we pay redemption requests in cash, unless the redemption
request is for more than $250,000 or 1% of the net assets of the Fund by a
single shareholder over any ninety-day period. If a request for a
redemption is over these limits, it may be to the detriment of existing
shareholders to pay such redemption in cash. Therefore, we may pay all or
part of the redemption in securities of equal value.
<PAGE>
Additional Services and Other Information
Automatic Programs
These programs help you conveniently purchase and/or redeem shares each month.
Once you select a Plan, tell us the day of the month you would like the
transaction to occur. If you do not specify a date, we will process the
transaction on or about the 25th day of the month. Systematic withdrawals may
only be processed on or about the 25th day of the month. Call Shareholder
Services at 1-800-222-8222 for more information.
o Systematic Purchase Plan - With this program, you can regularly purchase
shares of a Wells Fargo Fund with money automatically transferred from a
linked bank account. Simply select the Fund you would like to purchase and
specify an amount of at least $100.
o Systematic Withdrawal Plan - With this program, you can regularly redeem
shares and receive the proceeds by check or by transfer to a linked bank
account. Simply specify an amount of at least $100. To participate in this
program, you:
o must have a Fund account valued at $10,000 or more; o must have your
distributions reinvested; and o may not simultaneously participate in the
Systematic Purchase Plan.
It generally takes about ten days to establish a plan once we have received your
instructions. It generally takes about five days to change or cancel
participation in a plan. We automatically cancel your program if the linked bank
account you specified is closed.
Dividend and Capital Gain Distributions
The Fund in this Prospectus pays any dividends and capital gains distributions
at least annually.
We offer the following distribution options:
o Automatic Reinvestment Option - Lets you buy new shares of the same class
of the Fund that generated the distributions. The new shares are purchased
at NAV generally on the day the income is paid. This option is
automatically assigned to your account unless you specify another option.
o Check Payment Option - Allows you to receive checks for distributions
mailed to your address of record or to another name and address which you
have specified in written, signature guaranteed instructions. If checks
remain uncashed for six months or are undeliverable by the Post Office, we
will reinvest the distributions at the earliest date possible.
o Bank Account Payment Option - Allows you to receive distributions directly
in a checking or savings account through ACH. The bank account must be
linked to your Wells Fargo Fund account. In order to establish a new linked
bank account, you must send a written signature guaranteed instruction
along with a copy of a voided check or deposit slip. Any distribution
returned to us due to an invalid banking instruction will be sent to your
address of record by check at the earliest date possible, and future
distributions will be automatically re-invested.
Remember, distributions have the effect of reducing the NAV per share by the
amount distributed.
<PAGE>
Taxes
The following discussion regarding taxes is based on laws that were in effect
as of the date of this Prospectus. The discussion summarizes only some of the
important tax considerations that affect the Fund and you as a shareholder. It
is not intended as a substitute for careful tax planning. You should consult
your tax advisor about your specific tax situation. Federal income tax
considerations are discussed further in the Statement of Additional
Information.
Dividends distributed from the Fund attributable to its income from other
investments and net short-term capital gain (generally, the excess of net
short-term capital gains over net long-term capital losses) will be taxable to
you as ordinary income. Corporate shareholders may be able to deduct a portion
of their dividends when determining their taxable income.
We will pass on to you any net capital gain (generally the excess of net
long-term capital gains over net short-term capital losses) earned by the Fund
as a capital gain distribution. In general, these distributions will be
taxable to you as long-term capital gains which may qualify for taxation at
preferential rates in the hands of non-corporate shareholders. Any
distribution that is not from net investment income, short term capital gains,
or net capital gain may be characterized as a return of capital to
shareholders.
<PAGE>
PORTFOLIO MANAGERS
David D. Sylvester
Equity Index Fund since 1999
Mr. Sylvester has been with Wells Fargo & Company and its predecessors in an
investment management capacity for over 20 years. Mr. Sylvester joined WCM in
1998 as the Firm's Executive Vice President for Liquidity Investments. He
simultaneously held the position of Managing Director for Reserve Asset
Management at NIM (since 1997) until WCM and NIM combined investment advisory
services under the WCM name in 1999. Mr. Sylvester has nearly 25 years of
investment experience. He specializes in portfolio and securities analysis,
fixed-income trading and the ability to add stability and safety through
maximizing fund diversification. He also manages structured and derivative
securities, and institutional and personal trust assets. Mr. Sylvester attended
the University of Detroit-Mercy.
Laurie R. White
Equity Index Fund since 1999
Ms. White joined WCM in 1998 as a Principal for the Liquidity Investments Team
and simultaneously was a Director for Reserves Asset Management at NIM (since
1997) until WCM and NIM combined investment advisory services under the WCM name
in 1999. Ms. White specializes in managing short-term securities, along with
structured and derivative securities, and institutional and personal trust
assets. Ms. White received a BA in Political Science from Carleton College and a
MBA from the University of Minnesota.
<PAGE>
Glossary
We provide the following definitions to assist you in reading this Prospectus.
For a more complete understanding of these terms you should consult your
financial adviser.
ACH
Refers to the "Automated Clearing House" system maintained by the Federal
Reserve Bank which allows banks to process checks, transfer funds and perform
other tasks.
American Depositary Receipts ("ADRs")
Receipts for non-U.S. company stocks. The stocks underlying ADRs are typically
held in bank vaults. The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in foreign companies.
Annual and Semi-Annual Report
A document that provides certain financial and other important information for
the most recent reporting period and each Fund's portfolio of investments.
Business Day
Any day the New York Stock Exchange is open is a business day for the Funds.
Capital Appreciation, Capital Growth
The increase in the value of a security. See also "total return."
Capitalization
When referring to the size of a company, capitalization means the total number
of a company's outstanding shares of stock multiplied by the price per share.
This is an accepted method of determining a company's size and is sometimes
referred to as "market capitalization."
Capital Structure
Refers to how a company has raised money to operate. Can include, for example,
borrowing or selling stock.
Commercial Paper
Debt instruments issued by banks, corporations and other issuers to finance
short-term credit needs. Commercial paper typically is of high credit quality
and offers below market interest rates.
Convertible Debt Securities
Bonds or notes that are exchangeable for equity securities at a set price on a
set date or at the election of the holder.
Derivatives
Securities whose values are derived in part from the value of another security
or index. An example is a stock option.
Distributions
Dividends and/or capital gains paid by a Fund on its shares.
Diversified
A diversified fund, as defined by the Investment Company Act of 1940, is one
that invests in cash, Government securities, other investment companies and no
more than 5% of its total assets in a single issuer. These policies must apply
to 75% of the Funds' total assets.
Glossary (Cont'd)
Dollar-Denominated
Securities issued by foreign banks, companies or governments in U.S. dollars.
Illiquid Security
A security which cannot be readily sold, or cannot be readily sold without
negatively affecting its fair price.
Liquidity
The ability to readily sell a security at a fair price.
Nationally Recognized Rating Organization ("NRRO")
A company that examines the ability of a bond issuer to meet its obligations and
which rates the bonds accordingly.
Net Asset Value ("NAV")
The value of a single fund share. It is determined by adding together all of a
Fund's assets, subtracting accrued expenses and other liabilities, then dividing
by the total number of shares.
Options
An option is the right to buy or sell a security based on an agreed upon price
at a specified time. For example, an option may give the holder of a stock the
right to sell the stock to another party, allowing the seller to profit if the
price has fallen below the agreed price. Options may also be based on the
movement of an index such as the S&P 500.
Repurchase Agreement
An agreement between a buyer and seller of a security in which the seller agrees
to repurchase the security at an agreed upon price and time.
Selling Agent
A person who has an agreement with the Funds' distributors that allows them to
sell a Fund's shares.
Shareholder Servicing Agent
Anyone appointed by the Fund to maintain shareholder accounts and records,
assist and provide information to shareholders or perform similar functions.
Signature Guarantee
A guarantee given by a financial institution that has verified the identity of
the maker of the signature.
S&P, S&P 500 Index
Standard and Poors, a nationally recognized ratings organization. S&P's also
publishes various indexes or lists of companies representative of sectors of the
U.S. economy.
Statement of Additional Information
A document that supplements the disclosure made in the Prospectus.
Taxpayer Identification Number
Usually the social security number for an individual or the Employer
Identification Number for a corporation.
Glossary (Cont'd)
Total Return
The total value of capital growth and the value of all distributions, assuming
that distributions were used to purchase additional shares of the Funds.
Turnover Ratio
The percentage of the securities held in a Fund's portfolio, other than
short-term securities, that were bought or sold within a year.
<PAGE>
YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENT:
STATEMENT OF ADDITIONAL INFORMATION
supplements the disclosures made by this Prospectus. The Statement of Additional
Information has been filed with the SEC and is incorporated by reference into
this Prospectus and is legally part of this Prospectus.
THIS DOCUMENT IS AVAILABLE FREE OF CHARGE:
Call 1-800-222-8222
Write to:
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266; or
Visit the SEC's web site at
http://www.sec.gov
REQUEST COPIES FOR A FEE BY WRITING TO:
SEC Public Reference Room, Washington, DC 20549-6009
Call: 1-800-SEC-0330 for details
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ICA Reg. No. 811-09253 NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
WFFT E P (2/00)
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