<PAGE>
WELLS
FARGO
FUNDS
Annual Report
M O N E Y M A R K E T T R U S T S
March 31, 2000
[GRAPHIC]
CALIFORNIA TAX-FREE MONEY MARKET TRUST
MONEY MARKET TRUST
NATIONAL TAX-FREE MONEY MARKET TRUST
<PAGE>
MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS
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CALIFORNIA TAX-FREE MONEY MARKET TRUST.......................................2
MONEY MARKET TRUST...........................................................4
NATIONAL TAX-FREE MONEY MARKET TRUST.........................................6
PORTFOLIO OF INVESTMENTS
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CALIFORNIA TAX-FREE MONEY MARKET TRUST.......................................8
MONEY MARKET TRUST..........................................................12
NATIONAL TAX-FREE MONEY MARKET TRUST........................................14
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................19
STATEMENTS OF OPERATIONS....................................................20
STATEMENTS OF CHANGES IN NET ASSETS.........................................21
FINANCIAL HIGHLIGHTS........................................................22
NOTES TO FINANCIAL HIGHLIGHTS.................................................24
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NOTES TO FINANCIAL STATEMENTS.................................................25
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INDEPENDENT AUDITORS' REPORT..................................................28
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TAX INFORMATION...............................................................29
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LIST OF ABBREVIATIONS.........................................................30
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
For investors, the past year was unpredictable. It was a period characterized
by rapidly shifting markets and unprecedented volatility.
During the 12-month period ended March 31, 2000, blue chip stocks soared to a
record high, only to surrender their gains following a series of interest rate
hikes that sent the Dow Jones Industrial Average (the "Dow") into a tailspin.
After a March rally, the Dow recovered most of its losses, yet still remained
down for the year.
In contrast, the Nasdaq Composite Index shattered the 5,000 barrier led by
the turbocharged performance of technology stocks -- particularly genetics,
semiconductor and communications stocks. Technology reigned for several
months, while all other sectors scrambled for attention. That changed when the
technology bubble burst in late March, sparking a sell-off that pounded
speculative issues and left many investors concerned about the viability of
many "New Economy" stocks.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Concerned about the potential for a run-up in inflation, the Federal Reserve
Board (the "Fed") chose to raise interest rates five times over the fiscal
year, with each hike coming in 0.25% increments. Rising interest rates have
helped the Fund's investors capture additional yields on the short-term
securities within each portfolio. And, because we believe that the Fed may be
planning additional rate increases in coming months, our fund managers
presently intend to keep the average maturity of their portfolios relatively
short to take advantage of higher yields.
At the same time, our money market funds, which maintained their $1 per share
price throughout the period, continued to provide investors with a safe,
stable and convenient place to hold cash while evaluating other potential
investment opportunities.
INVESTING IN AN UPSIDE-DOWN MARKET
--------------------------------------------------------------------------------
With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
uncertainty? The first thing to remember is to think long term. Over time, the
market will regain its balance.
More importantly, investors should stick with a clearly defined strategy of
buying and holding a diversified portfolio of stocks, bonds and cash. If you
adhere to your long-term strategy, you won't be as vulnerable to a downturn in
one sector. Chances are that your overall returns will be more steady over
time as well. The fact is, diversification is an effective strategy that
investors can use to their advantage in virtually any market environment.
In closing, thank you for investing with Wells Fargo Funds. With 61 mutual
funds and more than $61 billion in mutual fund assets (as of February 29,
2000), we offer a complete array of mutual funds designed to meet most any
investor need -- in any market environment.
Sincerely,
<TABLE>
<S> <C>
/s/ Michael J. Hogan /s/ W. Rodney Hughes
MICHAEL J. HOGAN W. RODNEY HUGHES
EXECUTIVE VICE PRESIDENT, PRESIDENT,
WELLS FARGO BANK, N.A. WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
MONEY MARKET TRUSTS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo California Tax-Free Money Market Trust (the "Trust") 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
FUND MANAGER
Kevin Shaughnessy
INCEPTION DATE
05/02/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Trust underperformed its benchmark, the 90-Day Treasury Bill(1), for the
fiscal year ended March 31, 2000, with a return of 2.93%(2) versus 5.27% for
the benchmark. However, the Trust outperformed the Lipper California
Tax-Exempt Money Market Funds Average(3), which returned 2.54% for the period.
During the period, the Federal Reserve Board (the "Fed") maintained its
monetary tightening policy by raising interest rates five times, each coming
in 0.25% increments. Given the short-term nature of the Trust's investments,
as items matured within the Trust they were reinvested at higher yields. In
addition to shorter maturing items, the Trust held roughly 55% of its position
in floating rate notes late in the period. These positions also helped
performance, while longer-maturity, fixed-rate notes hurt performance.
The early part of the second quarter of each year is usually characterized by
higher interest rates driven by large cash outflows from money market funds
used to pay income taxes. This presents an opportunity to increase exposure to
longer-maturity, fixed-rate notes for the Trust at attractive yields. With the
Trust's large position in floating rate notes, it is positioned to potentially
do well in a rising interest rate environment.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fed is expected to continue to tighten monetary policy in an effort to
slow economic growth. Given its large position in floating rate notes, the
Trust has the potential to benefit from these anticipated interest rate
increases. The volatility in the stock and bond markets may also affect the
Trust by creating cash inflows during market sell-offs causing the Trust's
yields to fall, and outflows during market rallies causing the Trust's yield
to rise.
--------------------------------------------------------------------------------
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 Trust and are described in the Trust Statement of Additional Information.
An investment in a Wells Fargo money market Trust is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market Trusts seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Wells Fargo California Tax-Free Money Market Trust
for periods prior to November 8, 1999, reflects performance of the Stagecoach
California Tax-Free Money Market Trust, its predecessor fund. Effective at the
close of business November 5, 1999, the Stagecoach Funds were reorganized into
the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper California Tax-Exempt
Money Market Funds Average is an average of funds that invest in municipal
obligations with dollar-weighted average maturities of less than 90 days. You
cannot invest directly in a Lipper average.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
TRUST 1.50 2.93 3.04
LIPPER CALIFORNIA TAX-EXEMPT MONEY
MARKET FUNDS AVERAGE 1.30 2.54
90-DAY TREASURY BILL 2.82 5.27
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.19%
7-DAY COMPOUND YIELD 3.23%
30-DAY SIMPLE YIELD 3.13%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 45 DAYS
NUMBER OF HOLDINGS 136
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Bonds 26%
Floating/Variable Rate Bonds 74%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
1-2 DAYS 9%
3-14 DAYS 59%
<S> <C>
15-29 days 1%
30-59 days 2%
60-89 days 1%
90-179 days 21%
180+ days 7%
</TABLE>
--------------------------------------------------------------------------------
(4) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET TRUSTS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
MONEY MARKET TRUST
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Money Market Trust (the "Trust") seeks to provide investors
with current income, and stability of principal.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGER
Michael Neitzke
INCEPTION DATE
09/17/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Trust outperformed against its benchmark, the 90-Day Treasury Bill(1),
for the fiscal year ended March 31, 2000, with a return of 5.43%(2) versus
5.27% for the benchmark. During the period, the Trust also outperformed its
peer group, the Lipper Money Market Funds Average(3), which returned 4.72%.
Rising interest rates fueled the Trust's strong performance. During the past
year the Federal Reserve Board raised short-term interest rates five times --
with each rate increase coming in 0.25% increments -- to offset inflationary
pressures and curb the nation's fast-growing economy. Over the year, the
Federal Funds Rate, the most sensitive indicator of the direction of interest
rates, increased from 4.75% to 6%.
The series of rate hikes also sent yields on short-term securities higher,
which created opportunities to add yields to the portfolio. And as rates rose,
the Trust's management team also selectively invested in longer-term
securities to capture increasingly higher yields. They achieved these
favorable results while maintaining a core position among securities that
mature within a one- to three-month range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the Trust's
management team will continue to take advantage of higher-yielding, short-term
securities and purchase longer-term securities that offer attractive values.
However, the Trust is consistently managed to maintain a stable asset value of
$1 per share given any level of volatility.
--------------------------------------------------------------------------------
Money market Trusts are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Trust and are described in the Trust's Statement of Additional
Information. An investment in a Wells Fargo money market Trust is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Wells Fargo money market Trusts seek to preserve the value
of your investment at $1.00 per share, it is possible to lose money by investing
in money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Wells Fargo Money Market Trust for periods prior to
November 8, 1999, reflects performance of the Stagecoach Money Market Trust, its
predecessor fund. Effective at the close of business November 5, 1999, the
Stagecoach Funds were reorganized into the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Institutional Money
Market Funds average is an average of funds that invest in high quality
financial instruments rated in the top two grades with dollar-weighted average
maturities of less than 90 days. You cannot invest directly in a Lipper average.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
TRUST 2.85 5.43 5.51 4.93
LIPPER MONEY MARKET FUNDS
AVERAGE(3) 2.50 4.72 4.93
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 6.02%
7-DAY COMPOUND YIELD 6.18%
30-DAY SIMPLE YIELD 5.89%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 63 DAYS
NUMBER OF HOLDINGS 40
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 53%
Certificates of Deposits 20%
Corporate Bonds 10%
Repurchase Agreements 9%
Floating/Variable Rate Bonds 8%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 37%
30-59 days 27%
15-29 days 13%
180+ days 12%
90-179 days 7%
60-89 days 3%
1-2 days 1%
</TABLE>
--------------------------------------------------------------------------------
(4) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET TRUSTS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Money Market Trust (the "Trust") seeks to
provide investors with a high level of 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
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/10/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Trust underperformed its benchmark, the 90-Day Treasury Bill(1), for the
fiscal year ended March 31, 2000, with a return of 3.30%(2) compared to 5.27%
for the benchmark. During the period, the Trust outperformed its peer group,
the Lipper Tax-Exempt Money Market Funds Average(3), which returned 2.83%.
Fixed-income securities of shorter maturities experienced rising yields
throughout most of the 12-month period as the Federal Reserve Board raised
interest rates five times -- with each rate increase coming in 0.25%
increments -- in an attempt to slow the booming economy. The Trust's managers
looked for opportunities to increase average yield in the Trust by buying 9 to
12-month securities when those securities were attractive relative to other
maturity sectors. Because of this strategy, the Trust had a longer average
maturity than most within its peer group, the Lipper Tax-Exempt Money Market
Funds Average(3),during the quarter, and it benefited from that strategy.
Cash flow was volatile, especially late in the period, as shareholders
prepared to pay taxes. The Trust increased liquidity in anticipation of such
cash outflows, which translated into lower yields. More than 70% of the Trust
was positioned in Variable Rate Demand Notes during the quarter. A dramatic
rise in these short rates would likely enhance the yield in the Trust. If the
short rates were to precipitously fall, the Trust's yield would decline.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Additional rate increases are forecast for the remainder of the year. The
Trust is consistently managed to maintain a stable asset value of $1 per share
given any level of volatility.
--------------------------------------------------------------------------------
Money market Trusts are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Trust and are described in the Trust's Statement of Additional
Information. An investment in a Wells Fargo money market Trust is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Wells Fargo money market Trusts seek to preserve the value
of your investment at $1.00 per share, it is possible to lose money by investing
in money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Wells Fargo National Tax-Free Money Market Trust for
periods prior to November 8, 1999, reflects performance of the Stagecoach
National Tax-Free Money Market Trust, its predecessor fund. Effective at the
close of business November 5, 1999, the Stagecoach Funds were reorganized into
the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Tax-Exempt Money
Market Funds average is an average of funds that invest in municipal obligations
with dollar-weighted average maturities of less than 90 days. You cannot invest
directly in a Lipper average.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
TRUST 1.73 3.30 3.26
LIPPER TAX-EXEMPT MONEY MARKET
FUNDS AVERAGE 1.50 2.83
90-DAY TREASURY BILL 2.82 5.27
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.73%
7-DAY COMPOUND YIELD 3.78%
30-DAY SIMPLE YIELD 3.66%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 48 DAYS
NUMBER OF HOLDINGS 98
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Floating/Variable Rate Notes/Bonds 65%
Municipal Bonds 23%
Floating/Variable Rate Notes/Bonds AMT 12%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 61%
1-2 days 15%
180+ days 12%
90-179 days 8%
30-59 days 3%
15-29 days 1%
</TABLE>
--------------------------------------------------------------------------------
(4) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 83.53%
$ 4,500,000 BIG BEAR LAKE CA INDUSTRIAL
REVENUE SOUTHWEST GAS
CORPORATION AMT SERIES A
LOC - UNION BANK OF
SWITZERLAND 3.30% 12/01/28 $ 4,500,000
4,130,000 BUTTE COUNTY CA OFFICE OF
EDUCATIONAL TAX & REVENUE 4.25 11/16/00 4,144,805
12,000,000 CALIFORNIA COMMUNITY COLLEGE
FINANCING AUTHORITY SERIES A 4.00 06/30/00 12,025,460
2,790,000 CALIFORNIA HEALTH FACILITIES
FINANCING AUTHORITY REVENUE
HOSPITAL ADVENTIST SERIES C 3.45 09/01/15 2,790,000
3,240,000 CALIFORNIA HFA REVENUE AMT
SERIES 83 3.51 08/01/25 3,240,000
5,000,000 CALIFORNIA HOUSING FINANCE
AGENCY REVENUE SERIES C 3.35 08/01/31 5,000,000
1,000,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES D 3.20 04/30/00 1,000,000
11,260,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES E 3.40 08/01/00 11,260,000
2,120,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES J 3.20 08/01/20 2,120,000
1,950,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY REVENUE 4.00 03/01/18 1,950,000
19,840,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 4.00 07/03/00 19,881,109
1,500,000 CALIFORNIA SCHOOL FACILITIES
COP SERIES A 3.30 07/01/22 1,500,000
1,195,000 CALIFORNIA SCHOOL FACILITIES
FINANCING CORPORATION SERIES B
BAYERISCHE 3.30 07/01/24 1,195,000
3,560,000 CALIFORNIA STATE COP SERIES L 3.36 11/01/07 3,560,000
1,525,000 CALIFORNIA STATE DEPARTMENT OF
WATER RESERVE PROJECT REVENUE 3.40 12/01/13 1,525,000
1,580,000 CALIFORNIA STATE GO 3.00 03/01/21 1,580,000
4,720,000 CALIFORNIA STATE GO 3.36 12/01/17 4,720,000
4,000,000 CALIFORNIA STATE GO 3.36 12/01/18 4,000,000
5,505,000 CALIFORNIA STATE GO 5.00 10/01/00 5,546,062
7,250,000 CALIFORNIA STATE GO 11.00 03/01/01 7,718,307
1,345,000 CALIFORNIA STATE GO SERIES 9 3.46 12/01/23 1,345,000
3,595,000 CALIFORNIA STATE GO SERIES A-9 3.85 03/01/02 3,595,000
30,000,000 CALIFORNIA STATE GO SERIES A39 4.00 06/30/00 30,000,000
2,660,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLES TRUST SERIES 94
MBIA INSURED 3.46 09/01/03 2,660,000
5,000,000 CALIFORNIA STATE PCFA SHELL
OIL CO PROJECT SERIES A 3.40 10/01/10 5,000,000
700,000 CALIFORNIA STATE PCFA SOLID
WASTE DISPOSAL REVENUE COLMAC
ENERGY PROJECT SERIES A LOC -
SWISS BANK AMT 3.25 12/01/16 700,000
1,000,000 CALIFORNIA STATE PCFA SOLID
WASTE DISPOSAL REVENUE SHELL
OIL COMPANY MARTINEZ PROJECT
AMT AMBAC INSURED 3.35 12/01/24 1,000,000
5,100,000 CALIFORNIA STATE PCR MBIA
INSURED 3.85 06/01/10 5,100,000
7,400,000 CALIFORNIA STATE PCR SIERRA
PACIFIC INDUSTRIES 3.25 02/01/13 7,400,000
10,400,000 CALIFORNIA STATE PUBLIC WORKS 3.46 09/01/17 10,400,000
3,050,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REVENUE SERIES 210 3.96 01/01/11 3,050,000
11,500,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REVENUE SERIES D 3.36 12/01/15 11,500,000
6,000,000 CALIFORNIA STATE REVENUE
ANTICIPATION NOTES SERIES A 4.00 06/30/00 6,009,865
3,130,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY 3.61 12/01/41 3,130,000
3,515,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY SERIES
151 3.41 08/01/11 3,515,000
5,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES A-1 4.00 06/30/00 5,009,547
12,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES C-2 4.00 09/29/00 12,026,053
2,835,000 CALIFORNIA STATEWIDE MFHR 3.61 05/01/30 2,835,000
3,000,000 CENTRAL VALLEY CA SCHOOLS
FINANCING AUTHORITY REVENUE 4.00 01/26/01 3,000,000
2,000,000 CHULA VISTA CA CHARTER CITY
REVENUE HOME DEPOT
INCORPORATED 3.25 12/01/10 2,000,000
2,000,000 CITY OF CHULA VISTA GO 3.45 06/07/00 2,000,000
3,000,000 CONTRA COSTA WATER SYSTEM
REVENUE 3.10 07/06/00 3,000,000
2,500,000 ELSINORE VALLEY CA WATER
SYSTEM REVENUE 3.20 07/01/29 2,500,000
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 400,000 FREMONT CA MFHR CREEKSIDE
VILLAGE APARTMENTS LOC -
NATIONAL WESTMINSTER BANK PLC 3.20% 09/01/07 $ 400,000
1,000,000 GOLDEN EMPIRE SCHOOLS
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A 3.15 12/01/24 1,000,000
1,300,000 IRVINE CA DEVELOPMENT REVENUE 3.20 09/02/11 1,300,000
5,000,000 IRVINE CA IMPROVEMENT BOND ACT
1915 3.40 09/02/23 5,000,000
1,500,000 IRVINE CALIFORNIA IMPROVEMENT
BOND 3.40 09/02/22 1,500,000
1,700,000 IRVINE RANCH CA WATER DISTRICT 3.45 11/15/13 1,700,000
10,000,000 IRVINE RANCH CA WATER DISTRICT
LOC - BANK OF AMERICA 3.60 05/01/09 10,000,000
3,200,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE 4.00 08/15/18 3,200,000
3,900,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE PA-88 3.36 08/15/18 3,900,000
900,000 LOS ANGELES CA DW&P 3.20 02/01/10 900,000
6,160,000 LOS ANGELES CA USD SERIES E-19 4.00 09/29/00 6,160,000
2,500,000 LOS ANGELES CA WASTE 3.10 07/06/00 2,500,000
2,500,000 LOS ANGELES CA WASTEWATER
SYSTEM REVENUE SERIES B
PREREFUNDED 7.15 06/01/20 2,563,980
3,545,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES 106 FSA INSURED 3.41 07/01/28 3,545,000
3,500,000 LOS ANGELES COUNTY CA PUBLIC
WORKS FINANCING AUTHORITY
REVENUE SERIES A62 4.00 10/01/16 3,500,000
2,000,000 LOS ANGELES COUNTY CA SCHOOL
FINANCING AUTHORITY COP SERIES
A 4.00 06/30/00 2,004,055
12,000,000 LOS ANGELES COUNTY CA TAX
REVENUE ANTICIPATION NOTES 4.00 06/30/00 12,018,311
200,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX REVENUE FGIC INSURED 3.15 07/01/12 200,000
1,000,000 LOS ANGELES COUNTY CAPITAL
ASSET 3.30 04/07/00 1,000,000
2,810,000 LOS ANGELES USD 3.50 07/01/19 2,810,000
5,000,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES 116 3.40 07/01/21 5,000,000
3,500,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES A 3.10 07/01/28 3,500,000
1,855,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES
SG-128 3.36 07/01/30 1,855,000
3,200,000 ORANGE COUNTY CA ALISO CREEK
PROJECT SERIES B 3.20 11/01/22 3,200,000
1,800,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE SERIES U 3.15 11/01/09 1,800,000
3,300,000 ORANGE COUNTY CA HFA NIGUEL
SUMMIT APARTMENT LOC - BANK OF
AMERICA 3.10 11/01/09 3,300,000
3,000,000 OTAY CA WATER DISTRICT COP
CAPITAL PROJECTS 3.20 09/01/26 3,000,000
5,600,000 REGENTS OF UNIVERSITY OF
CALIFORNIA 3.25 04/04/00 5,600,000
3,500,000 REGENTS OF UNIVERSITY OF
CALIFORNIA 3.40 05/02/00 3,500,000
1,300,000 RIVERSIDE COUNTY CA COP SERIES
A 3.30 12/01/15 1,300,000
3,300,000 RIVERSIDE COUNTY CA IDA
UNIVERSAL FOREST PROJECT 3.35 08/01/29 3,300,000
500,000 SACRAMENTO CA MFHR SMOKETREE 3.20 04/15/10 500,000
2,600,000 SACRAMENTO COUNTY CA
ADMINISTRATION CENTER &
COURTHOUSE PROJECT LOC - UNION
BANK OF SWITZERLAND 3.30 06/01/20 2,600,000
2,000,000 SALINAS CA MFHR MARINER
VILLAGE 3.25 04/01/05 2,000,000
1,000,000 SAN BERNARDINO COUNTY CA COP 3.36 08/01/28 1,000,000
2,200,000 SAN BERNARDINO COUNTY CA COP
HOUSING AUTHORITY REVENUE 3.20 07/01/15 2,200,000
2,725,000 SAN BERNARDINO COUNTY CA MFHR
ROSEWOOD APARTMENTS SERIES A 3.15 05/15/29 2,725,000
5,670,000 SAN DIEGO CA COP 3.36 08/01/28 5,670,000
3,550,000 SAN DIEGO CA COP TAX REVENUE
ANTICIPATION NOTES SERIES B 4.00 07/28/00 3,555,973
2,000,000 SAN DIEGO CA LOCAL AREA
GOVERNMENT COP SERIES C 4.50 09/29/00 2,009,908
4,130,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY REVENUE
SERIES SG 130 3.66 05/15/29 4,130,000
1,965,000 SAN DIEGO UNFUNDED 3.50 07/07/00 1,965,000
10,000,000 SAN FRANCISCO BAY GO 2.75 04/06/00 10,000,000
3,000,000 SAN FRANCISCO BAY GO 3.10 05/04/00 3,000,000
</TABLE>
9
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 5,965,000 SAN FRANCISCO CA BART ABN AMRO
MUNITOPS COP 3.65% 12/05/07 $ 5,965,000
5,000,000 SAN FRANCISCO CA BART ABN AMRO
MUNITOPS COP 1998-20 3.05 07/05/06 5,000,000
685,000 SAN FRANCISCO CA CITY & COUNTY
FINANCE AUTHORITY REVENUE 3.30 09/01/06 685,000
1,200,000 SAN FRANCISCO CA CITY & COUNTY
REDEVELOPMENT AGENCY SOUTH
HARBOR PROJECT 3.60 12/01/16 1,200,000
2,000,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC -
CITIBANK 3.15 12/01/17 2,000,000
2,880,000 SAN JOSE CA MFHR 3.61 05/01/30 2,880,000
2,000,000 SAN JOSE CA MFHR ALMADEN LAKE
VILLAGE APARTMENT SERIES A 3.35 03/01/32 2,000,000
1,300,000 SAN JOSE CA MFHR FAIRWAY GLEN
SERIES A 3.20 11/01/07 1,300,000
500,000 SAN JOSE CA MULTIFAMILY
HOUSING REVENUE AMT 3.35 03/01/32 500,000
2,600,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT A 3.30 07/01/26 2,600,000
1,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT B 3.00 07/01/26 1,000,000
3,500,000 SAN JOSE/SANTA CLARA CLEAN
WATER FINANCING AUTHORITY 3.15 11/15/11 3,500,000
5,200,000 SAN JUAN PROJECT REVENUE
SERIES A 3.30 07/01/22 5,200,000
1,400,000 SANTA ANA CA INDUSTRIAL
DEVELOPMENT AUTHORITY 3.35 11/01/18 1,400,000
870,000 SANTA CLARA CA ELECTRIC
REVENUE SERIES 85B LOC -
NATIONAL WESTMINSTER BANK PLC 3.30 07/01/10 870,000
2,800,000 SANTA CLARA CA TRANSIT SYSTEM
LOC - SUMITOMO BANK LIMITED 3.25 06/01/15 2,800,000
15,860,000 SANTA CLARA COUNTY CA SERIES
A18 REGULATION D 4.00 09/29/00 15,860,000
5,000,000 SANTA CRUZ COUNTY CA TAX &
REVENUE 4.50 10/06/00 5,020,898
2,421,000 SOUTHEAST CA REVENUE RECOVERY
FACILITY SERIES A 3.20 12/01/18 2,421,000
1,781,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE REVENUE SERIES
B AMT 3.25 12/01/18 1,781,000
1,000,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY REVENUE
SPECIAL OBLIGATION SERIES B 5.40 07/01/00 1,005,032
3,000,000 SOUTHERN CALIFORNIA PUBLIC
POWER PALO VERDE PROJECT
SERIES A 4.00 07/01/00 3,004,612
2,400,000 SOUTHERN CALIFORNIA STATE
PUBLIC POWER AUTHORITY PALO
VERDE PROJECT SERIES B AMBAC
INSURED 3.15 07/01/09 2,400,000
2,000,000 TURLOCK CA COP IRRIGATION
PROJECT SERIES A 3.20 01/01/26 2,000,000
1,080,000 TURLOCK CA IRRIGATION DISTRICT
REVENUE SERIES A LOC -
CANADIAN IMPERIAL BANK OF
COMMERCE 3.20 01/01/14 1,080,000
6,000,000 UNIVERSITY OF CALIFORNIA
REVENUE 3.20 07/06/00 6,000,000
1,245,000 VALLEJO CA MFHR HIGHLANDS 3.20 06/01/07 1,245,000
900,000 VALLEJO CA MFHR REVENUE SERIES
A 3.20 05/15/22 900,000
2,100,000 VALLEJO CA MFHR REVENUE SERIES
C 3.25 01/01/08 2,100,000
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$451,660,977) 451,660,977
------------
PUERTO RICO MUNICIPAL SECURITIES - 15.70%
3,120,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY SERIES 88 3.41 07/01/28 3,120,000
14,400,000 PUERTO RICO COMMONWEALTH TAX &
REVENUE 4.50 07/30/00 14,434,324
3,750,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE 3.36 07/01/28 3,750,000
1,400,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY SERIES A AMBAC
INSURED 3.25 07/01/28 1,400,000
3,720,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 3.41 07/01/28 3,720,000
4,600,000 PUERTO RICO COMMONWEALTH
SERIES 120 MBIA INSURED 3.41 07/01/23 4,600,000
8,300,000 PUERTO RICO COMMONWEALTH
SERIES A-1 3.85 07/30/00 8,300,000
2,295,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 07/01/07 2,295,000
3,700,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 01/01/12 3,700,000
2,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50 04/05/00 2,000,000
1,300,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.00 05/22/00 1,300,000
3,159,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.10 05/15/00 3,159,000
3,814,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.45 04/28/00 3,814,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (continued)
$ 4,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50% 04/26/00 $ 4,000,000
3,904,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.60 08/29/00 3,904,000
1,485,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.65 10/18/00 1,485,000
6,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.70 08/09/00 6,000,000
2,000,000 PUERTO RICO INFRASTRUCTURE
FINANCING AUTHORITY REVENUE 3.36 07/01/28 2,000,000
9,915,000 PUERTO RICO MUNICIPAL
FINANCING AGENCY 3.36 08/01/19 9,915,000
2,000,000 PUERTO RICO PUBLIC FINANCING
CORPORATION 3.36 06/01/19 2,000,000
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $84,896,324) (NOTE 1) 84,896,324
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $536,557,301)* (NOTE 1) 99.23% $536,557,301
OTHER ASSETS AND LIABILITIES, NET 0.77 4,146,384
------- ------------
TOTAL NET ASSETS 100.00% $540,703,685
------- ------------
------- ------------
</TABLE>
+ 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.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
<S> <C>
General 28%
General Obligation 17%
Other 12%
Water 7%
Higher Education 5%
Multifamily Housing 5%
Development 5%
Facilities 4%
Single Family Housing 4%
Power 4%
Education 3%
Transportation 2%
Pollution 2%
Medical 1%
Utilities 1%
</TABLE>
Investment Categories Reflect Percentages of Investments in Securities.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 8.41%
$20,000,000 BEAR STEARNS 6.19% 03/29/01 $ 20,000,000
20,000,000 J.P. MORGAN & COMPANY 5.99 03/16/01 20,000,000
20,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.00 03/16/01 20,000,000
TOTAL VARIABLE AND FLOATING RATE BONDS
(COST $60,000,000) 60,000,000
------------
COMMERCIAL PAPER - 53.55%
15,000,000 ANZ DEL INCORPORATED 6.21{::} 09/07/00 14,602,267
30,000,000 AQUINAS FUNDING 4.23{::} 04/03/00 30,000,000
20,000,000 ATLANTIS ONE FUNDING 5.87{::} 05/17/00 19,854,556
20,000,000 BAVARIA CORPORATION 6.12{::} 06/20/00 19,735,233
20,000,000 COMMERZBANK USA 5.82{::} 05/17/00 19,855,778
19,000,000 CONCORD MINUTE "B" 4.84{::} 04/05/00 18,993,624
20,000,000 GE CAPITAL SERVICES 5.78{::} 05/08/00 19,885,278
10,000,000 GOLDMAN SACHS GROUP
INCORPORATED 5.81{::} 05/10/00 9,939,156
23,947,000 LEXINGTON PARKER CAPITAL 4.43{::} 04/04/00 23,943,075
20,000,000 MORIARITY LIMITED 5.81{::} 05/10/00 19,878,311
23,000,000 OLD LINE FUNDING 5.32{::} 04/10/00 22,973,614
20,000,000 PREFERRED RECEIVABLES FUNDING 5.88{::} 05/22/00 19,838,300
20,000,000 SALOMON SMITH BARNEY 5.77{::} 05/05/00 19,894,933
20,000,000 SHEFFIELD RECEIVABLES 6.05{::} 05/26/00 19,820,389
20,000,000 SIGMA FINANCE 6.46{::} 09/22/00 19,398,000
20,000,000 SPECIAL PURPOSE A/R
CORPORATION 6.02{::} 05/19/00 19,844,111
23,000,000 SURREY FUNDING 3.95{::} 04/03/00 23,000,000
15,595,000 SYDNEY CAPITAL 5.77{::} 05/02/00 15,520,504
25,000,000 THAMES ASSET CAPITAL 5.59{::} 04/14/00 24,954,090
TOTAL COMMERCIAL PAPER (COST $381,931,219) 381,931,219
------------
CORPORATE BONDS & NOTES - 10.24%
10,000,000 BANK OF AMERICA CORPORATION 6.16 04/05/00 9,999,978
10,000,000 BETA FINANCE INCORPORATED 6.15 10/06/00 10,000,000
10,000,000 CC USA 6.77 03/15/01 10,000,000
15,000,000 DORADA FINANCE 6.79 03/15/01 15,000,000
8,000,000 FIRST USA BANK 5.99 09/21/00 7,998,926
3,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.07 09/01/00 3,000,000
10,000,000 TEXACO CAPITAL CORPORATION 5.11 05/03/00 9,999,445
7,000,000 U.S. BANK N.A. 5.92 10/02/00 6,997,332
TOTAL CORPORATE BONDS & NOTES (COST
$72,995,681) 72,995,681
------------
CERTIFICATES OF DEPOSIT - 19.52%
20,000,000 ABN AMRO 6.72 02/12/01 19,995,089
5,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 01/29/01 4,998,434
29,254,746 MARSHALL & ILSLEY GRAND CAYMAN 6.19 04/03/00 29,254,746
30,000,000 NATEXIS BANQUE GRAND CAYMAN 6.44 04/03/00 30,000,000
20,000,000 REGIONS BANK N.A. 5.98 04/24/00 20,000,000
15,000,000 SOUTHTRUST BANK 5.95 04/27/00 15,000,000
10,000,000 U.S. BANK N.A. 6.59 01/16/01 10,000,000
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT (continued)
$10,000,000 UNION BANK OF SWITZERLAND 6.22% 12/11/00 $ 9,995,067
TOTAL CERTIFICATES OF DEPOSIT (COST
$139,243,336) 139,243,336
------------
REPURCHASE AGREEMENTS - 8.41%
30,000,000 GOLDMAN SACHS & COMPANY
TRIPARTY REPURCHASE AGREEMENT 6.35 04/03/00 30,000,000
30,000,000 LEHMAN BROTHERS TRIPARTY
REPURCHASE AGREEMENT 6.42 04/03/00 30,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$60,000,000) 60,000,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $714,170,236)* (NOTE 1) 100.13% $714,170,236
OTHER ASSETS AND LIABILITIES, NET (0.13) (892,281)
------- ------------
TOTAL NET ASSETS 100.00% $713,277,955
------- ------------
------- ------------
</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.
13
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 98.55%
ALABAMA - 0.99%
$1,675,000 ALABAMA STATE PUBLIC SCHOOL &
COLLEGE AUTHORITY REVENUE
SERIES 101 3.98% 11/01/13 $ 1,675,000
1,000,000 JEFFERSON COUNTY AL HOSPITAL
SERVICE DISTRICT NO.2 3.96 02/01/38 1,000,000
2,675,000
------------
ALASKA - 1.20%
3,245,000 ALASKA IDA 4.25 06/01/10 3,245,000
------------
ARIZONA - 1.63%
600,000 APACHE COUNTY AZ IDA TUCSON
ELECTRIC POWER SERIES 83-A 3.90 12/15/18 600,000
3,800,000 MARICOPA COUNTY AZ 3.50 04/11/00 3,800,000
4,400,000
------------
COLORADO - 2.88%
2,755,000 COLORADO HOUSING FINANCE
AGENCY MFHR CAMBRAY PARK 3.90 05/01/15 2,755,000
2,000,000 EAGLE RANCH CO METROPOLITAN
DISTRICT SERIES A 3.95 10/15/18 2,000,000
3,000,000 JEFFERSON COUNTY CO GO 5.00 12/15/00 3,022,418
7,777,418
------------
FLORIDA - 1.60%
4,325,000 ORANGE COUNTY FL HFFA COP
SERIES 171 4.08 11/15/14 4,325,000
------------
GEORGIA - 3.07%
500,000 CLAYTON COUNTY GA MFHR 3.95 08/01/06 500,000
1,000,000 COBB COUNTY GA SCHOOL DISTRICT 4.38 12/29/00 1,002,900
5,000,000 COBB COUNTY GA SCHOOL DISTRICT 6.00 02/01/01 5,076,490
1,700,000 RICHMOND COUNTY GA DEVELOPMENT
AUTHORITY REVENUE SOLIDWASTE
DISPOSAL 3.95 07/01/32 1,700,000
8,279,390
------------
HAWAII - 0.69%
1,875,000 HAWAII STATE GO 3.96 03/01/14 1,875,000
------------
ILLINOIS - 9.13%
3,300,000 CHICAGO IL TENDER NOTES SERIES
A 3.90 01/03/02 3,300,000
1,400,000 ILLINOIS DEVELOPMENT FINANCING
AUTHORITY REVENUE 4.00 06/01/08 1,400,000
5,000,000 ILLINOIS EDUCATIONAL
FACILITIES ART INSTITUTE OF
CHICAGO SERIES A 3.95 03/01/34 5,000,000
1,000,000 ILLINOIS HEALTH FACILITIES
AUTHORITY REVENUE 3.60 04/05/00 1,000,000
2,700,000 ILLINOIS HEALTH FACILITIES
AUTHORITY REVENUE CONDELL
MEMORIAL HOSPITAL 3.90 11/01/05 2,700,000
3,500,000 ILLINOIS HEALTH FACILITY
AUTHORITY REVENUE COP SERIES
166 3.98 02/15/24 3,500,000
2,600,000 ILLINOIS HFFA REVENUE ADVOCATE
HEALTHCARE PROJECT SERIES B 4.00 08/15/22 2,600,000
1,600,000 ILLINOIS HFFA SERIES B 4.10 01/01/20 1,600,000
1,935,000 ILLINOIS STATE GO 4.75 10/01/00 1,942,604
1,600,000 NORTH AURORA IL IDA OBERWEIS
DAIRY INCORPORATED PROJECT 4.00 02/01/10 1,600,000
24,642,604
------------
INDIANA - 5.09%
2,750,000 INDIANA EDUCATIONAL LOAN
REVENUE SERIES B 3.95 12/01/14 2,750,000
4,050,000 INDIANA HEALTH FACILITIES
ASCENSION HEALTH 3.85 11/15/39 4,050,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
INDIANA (continued)
$1,020,000 INDIANA STATE DEVELOPMENT
FINANCING AUTHORITY REVENUE 4.00% 10/01/17 $ 1,020,000
3,900,000 INDIANA STATE EDUCATIONAL
FACILITIES AUTHORITY REVENUE
BETHEL COLLEGE 3.95 09/01/17 3,900,000
2,023,000 PORTAGE IN ECONOMIC
DEVELOPMENT REVENUE PEDCOR
INVESTMENTS SERIES A 4.00 08/01/30 2,023,000
13,743,000
------------
KENTUCKY - 0.56%
1,500,000 KENTUCKY STATE DEVELOPMENT
AUTHORITY POOLED LOAN PROGRAM
SERIES A 3.90 12/01/15 1,500,000
------------
LOUISIANA - 1.45%
2,000,000 JEFFERSON PARISH LA COP SERIES
C 3.96 12/01/15 2,000,000
1,900,000 LOUISIANA STATE HEALTH &
EDUCATIONAL AUTHORITY REVENUE
COP SERIES B 3.96 10/01/17 1,900,000
3,900,000
------------
MAINE - 3.39%
9,150,000 MAINE HEALTH & HIGHER
EDUCATION FACILITIES AUTHORITY
REVENUE PIPER SHORES SERIES B 4.00 01/01/29 9,150,000
------------
MARYLAND - 1.22%
3,300,000 MARYLAND STATE HEALTH & HIGHER
EDUCATION FACILITIES AUTHORITY
REVENUE CATHOLIC HEALTHCARE
SERIES B 3.95 12/01/15 3,300,000
------------
MASSACHUSETTS - 0.44%
1,200,000 CANTON MASSACHUSETTS HOUSING
AUTHORITY REVENUE 3.95 09/15/26 1,200,000
------------
MICHIGAN - 2.11%
1,000,000 MICHIGAN STATE BUILDING
AUTHORITY REVENUE 4.00 10/01/00 1,000,467
1,500,000 MICHIGAN STATE BUILDING
AUTHORITY REVENUE 5.00 10/15/00 1,508,934
3,100,000 MICHIGAN STATE STRATEGIC FUND
LIMITED 9.40 05/15/20 3,180,505
5,689,906
------------
MINNESOTA - 10.67%
1,500,000 ARDEN HILLS MINNESOTA HOUSING
& HEALTHCARE FACILITIES
REVENUE SERIES B 4.00 09/01/29 1,500,000
5,000,000 COHASSET MN POWER & LIGHT CO
SERIES A 4.00 06/01/20 5,000,000
1,520,000 DULUTH MN LAKE SUPERIOR TAX
INCREMENT REVENUE 3.90 09/01/10 1,520,000
3,000,000 EDINA MN MFHR EDINA PARK PLACE 3.85 12/01/29 3,000,000
3,185,000 MANKATO MN MFHR HIGHLAND HILLS
PROJECT 4.00 05/01/27 3,185,000
6,500,000 MINNESOTA SCHOOL DISTRICTS 4.25 02/28/01 6,502,656
3,500,000 ROCHESTER MN MAYO CLINIC
SERIES B 3.60 04/10/00 3,500,000
3,600,000 ST PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY MFHR
KENDRICK APARTMENTS PROJECT 4.05 01/01/27 3,600,000
1,000,000 ST PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
REVENUE 3.85 12/01/12 1,000,000
28,807,656
------------
MISSISSIPPI - 1.20%
3,250,000 MISSISSIPPI HOME CORPORATION
SFMR 4.01 11/01/29 3,250,000
------------
MISSOURI - 2.48%
2,000,000 MISSOURI HFFA 3.50 04/29/00 2,000,385
1,000,000 MISSOURI STATE DEVELOPMENT
LEASE REVENUE 4.00 12/01/22 1,000,000
1,625,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY REVENUE SERIES A 3.90 11/01/19 1,625,000
</TABLE>
15
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MISSOURI (continued)
$2,060,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES REVENUE
ST. FRANCIS MEDICAL CENTER LOC
-CREDIT LOCAL DE FRANCE SERIES
A 4.00% 06/01/26 $ 2,060,000
6,685,385
------------
MONTANA - 0.56%
1,510,000 MONTANA STATE BOARD INVESTMENT 4.35 03/01/01 1,510,000
------------
NEBRASKA - 1.85%
5,000,000 OMAHA PUBLIC POWER DISTIRCT
REVENUE SERIES 122 3.98 02/01/14 5,000,000
------------
NEVADA - 3.44%
2,150,000 CLARK COUNTY NV REGIONAL
TRANSPORTATION 4.25 07/01/00 2,151,795
7,125,000 NEVADA HOUSING DIVISION 4.05 10/01/30 7,125,000
9,276,795
------------
NEW HAMPSHIRE - 2.13%
5,745,000 NEW HAMPSHIRE HIGHER EDUCATION
& HEALTH FACILITIES AUTHORITY
REVENUE SERIES SG-19 3.99 06/01/23 5,745,000
------------
NEW MEXICO - 1.08%
2,900,000 NEW MEXICO STATE GO 4.00 06/30/00 2,905,195
------------
NEW YORK - 4.15%
6,670,000 IBM TAX-EXEMPT GRANTOR 4.11 03/14/06 6,670,000
3,485,000 NEW YORK NY GO 3.96 08/01/16 3,485,000
1,000,000 NEW YORK STATE URBAN
DEVELOPMENT CORPORATION
CORRECTIONAL FACILITIES SERIES
2 7.63 01/01/06 1,043,326
11,198,326
------------
NORTH CAROLINA - 0.59%
1,600,000 NORTH CAROLINA COMMUNITY
MEDICAL CARE REVENUE BAPTIST
HOSPITALS PROJECT SERIES A 3.95 06/01/12 1,600,000
------------
NORTH DAKOTA - 1.26%
3,400,000 FARGO ND COMMERCIAL
DEVELOPMENT CASS OIL COMPANY
PROJECT 4.30 12/01/14 3,400,000
------------
OHIO - 0.74%
2,000,000 CLERMONT COUNTY OH HOSPITAL
FACILITIES REVENUE MERCY
HEALTH SYSTEM SERIES B 4.05 09/01/21 2,000,000
------------
OKLAHOMA - 2.37%
1,200,000 MUSKOGEE OK INDUSTRIAL
POLLUTION OKLAHOMA GAS &
ELECTRIC COMPANY SERIES A 3.95 01/01/25 1,200,000
2,500,000 OKLAHOMA STATE REVENUE WATER
RESERVE BOARD 4.05 09/01/26 2,500,000
2,700,000 TULSA OK IDA REVENUE YMCA OF
GREATER TULSA PROJECT 4.00 05/01/19 2,700,000
6,400,000
------------
OREGON - 1.60%
1,000,000 MULTNOMAH COUNTY OR HIGHER
EDUCATION REVENUE CONCORDIA
UNIVERSITY 4.05 12/01/29 1,000,000
1,000,000 OREGON GO 3.20 04/13/00 1,000,000
1,360,000 OREGON STATE HEALTH, HOUSING,
EDUCATIONAL & CULTURAL
FACILITIES AUTHORITY REVENUE 3.90 01/01/31 1,360,000
975,000 OREGON STATE HEALTH, HOUSING,
EDUCATIONAL & CULTURAL
FACILITIES AUTHORITY REVENUE 3.95 07/01/25 975,000
4,335,000
------------
OTHER - 4.82%
3,800,000 ABN AMRO LEASETOPS 4.28 08/07/02 3,800,000
7,800,000 KOCH FIXED RATE 4.12 10/06/03 7,800,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
OTHER (continued)
$1,400,000 PITNEY BOWES CREDIT
CORPORATION LEASETOPS COP
SERIES 1999-2 4.33% 03/16/05 $ 1,400,000
13,000,000
------------
PENNSYLVANIA - 5.18%
8,000,000 ALLEGHENY COUNTY PA GO 8.50 02/15/01 8,289,603
3,700,000 QUAKERTOWN PA HOSPITAL
AUTHORITY REVENUE 4.00 07/01/05 3,700,000
2,000,000 SOUTH FORK MUNICIPAL AUTHORITY
HOSPITAL REVENUE 4.00 07/01/28 2,000,000
13,989,603
------------
SOUTH CAROLINA - 0.44%
1,200,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY REVENUE 3.96 01/01/23 1,200,000
------------
TENNESSEE - 0.37%
1,000,000 CLARKSVILLE TN PUBLIC BUILDING
AUTHORITY REVENUE 4.00 07/01/11 1,000,000
------------
TEXAS - 7.69%
1,800,000 HARRIS COUNTY TX TOLL ROAD
SERIES D 3.90 08/01/15 1,800,000
1,500,000 PANHANDLE-PLAINS TX HIGHER
EDUCATION AUTHORITY STUDENT
LOAN REVENUE SERIES B 3.90 06/01/21 1,500,000
1,000,000 PANHANDLE-PLAINS TX HIGHER
EDUCATION STUDENT LOAN REVENUE
SERIES B 3.90 06/01/23 1,000,000
1,000,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY REVENUE 3.90 12/01/03 1,000,000
1,100,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY REVENUE 3.90 12/01/29 1,100,000
5,950,000 TEXAS STATE DEPARTMENT OF
HOUSING & COMMUNITY AFFAIRS
MFHR 4.14 12/01/39 5,950,000
2,500,000 TEXAS STATE GO 3.96 08/01/24 2,500,000
5,900,000 TEXAS STATE GO 4.50 08/31/00 5,916,835
20,766,835
------------
UTAH - 0.41%
1,100,000 SALT LAKE CITY UT GO 3.90 01/01/20 1,100,000
------------
VERMONT - 0.74%
2,000,000 VERMONT HFA 3.70 09/07/00 2,000,000
------------
WASHINGTON - 7.54%
2,350,000 KING COUNTY WA ECONOMIC
ENTERPRISE CORPORATION REVENUE
PUGET SOUND BLOOD CENTER
PROJECT 3.90 04/01/23 2,350,000
2,500,000 LAKE TAPPS PARKWAY WA SERIES A 3.85 12/01/19 2,500,000
1,500,000 SEATTLE POWER & LIGHT 3.95 05/04/00 1,500,000
2,370,000 SEATTLE WA GO 3.60 12/01/18 2,370,000
2,145,000 WASHINGTON STATE MFHR SUMMER
GLEN APARTMENT PROJECT 4.15 11/01/25 2,145,000
5,000,000 WASHINGTON STATE SFMR SERIES
1A-S 4.20 02/01/01 5,000,000
4,500,000 YAKIMA COUNTY WA PUBLIC
CORPORATION REVENUE VALLEY
PROCESSING PROJECT 4.15 02/01/15 4,500,000
20,365,000
------------
</TABLE>
17
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
WYOMING - 1.78%
$4,800,000 CARBON COUNTY WYOMING PCR 3.85% 11/01/14 $ 4,800,000
------------
TOTAL MUNICIPAL SECURITIES (COST
$266,037,113) 266,037,113
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $266,037,113)* (NOTES 1 AND 3) 98.55% $266,037,113
OTHER ASSETS AND LIABILITIES, NET 1.45 3,906,236
------- ------------
TOTAL NET ASSETS 100.00% $269,943,349
------- ------------
</TABLE>
+ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2000 MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET NATIONAL TAX-FREE
MONEY MARKET TRUST TRUST MONEY MARKET TRUST
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS
IN SECURITIES, AT AMORTIZED COST................ $536,557,301 $714,170,236 $266,037,113
CASH.............................................. 580,950 0 3,191,835
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES..... 5,464,713 2,863,024 1,860,302
------------ ------------ ------------
TOTAL ASSETS...................................... 542,602,964 717,033,260 271,089,250
------------ ------------ ------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 72,249 93,479 28,573
PAYABLE TO OTHER RELATED PARTIES................ 35,403 27,416 17,072
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 250,248 327,849 154,727
DIVIDENDS PAYABLE............................... 1,541,379 3,306,561 945,529
------------ ------------ ------------
TOTAL LIABILITIES................................. 1,899,279 3,755,305 1,145,901
------------ ------------ ------------
TOTAL NET ASSETS.................................. $540,703,685 $713,277,955 $269,943,349
------------ ------------ ------------
------------ ------------ ------------
NET ASSETS CONSIST OF
---------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL................................. $540,777,640 $713,292,655 $269,943,165
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (73,955) (14,700) 184
------------ ------------ ------------
TOTAL NET ASSETS.................................. $540,703,685 $713,277,955 $269,943,349
------------ ------------ ------------
------------ ------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
---------------------------------------------------------------------------------------------------------
NET ASSETS........................................ $540,703,685 $713,277,955 $269,943,349
SHARES OUTSTANDING................................ 540,777,640 713,369,415 269,943,165
NET ASSET VALUE AND OFFERING PRICE PER SHARE...... $ 1.00 $ 1.00 $ 1.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19
<PAGE>
MONEY MARKET TRUSTS STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED MARCH 31,
2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET NATIONAL TAX-FREE
MONEY MARKET TRUST TRUST MONEY MARKET TRUST
<S> <C> <C> <C>
------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST......................... $ 17,131,783 $ 26,961,040 $ 8,560,754
------------------ ------------ ------------------
TOTAL INVESTMENT INCOME............ 17,131,783 26,961,040 8,560,754
------------------ ------------ ------------------
EXPENSES
ADVISORY FEES.................... 1,656,725 681,177 333,989
ADMINISTRATION FEES.............. 834,333 731,987 370,984
CUSTODY.......................... 99,855 88,589 44,883
SHAREHOLDER SERVICING FEES....... 665,767 544,941 268,836
PORTFOLIO ACCOUNTING FEES........ 134,575 128,352 100,015
TRANSFER AGENT................... 64,312 38,300 22,608
LEGAL AND AUDIT FEES............. 47,303 47,179 27,038
REGISTRATION FEES................ 130,781 17,597 86,640
DIRECTORS' FEES.................. 4,239 2,710 2,606
SHAREHOLDER REPORTS.............. 34,372 7,489 8,062
OTHER............................ 23,757 13,713 16,048
------------------ ------------ ------------------
TOTAL EXPENSES..................... 3,696,019 2,302,034 1,281,709
------------------ ------------ ------------------
LESS
WAIVED FEES AND REIMBURSED
EXPENSES....................... (2,588,896) (1,326,477) (788,415)
NET EXPENSES..................... 1,107,123 975,557 493,294
------------------ ------------ ------------------
NET INVESTMENT INCOME (LOSS)....... 16,024,660 25,985,483 8,067,460
------------------ ------------ ------------------
NET REALIZED GAIN (LOSS) FROM
INVESTMENTS.................... (69,906) (14,700) 360
------------------ ------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... $ 15,954,754 $ 25,970,783 $ 8,067,820
------------------ ------------ ------------------
------------------ ------------ ------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY NATIONAL TAX-FREE MONEY
MARKET TRUST MONEY MARKET TRUST MARKET TRUST
-------------------------------- -------------------------------- --------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS... $ 549,288,919 $ 636,440,572 $ 471,922,763 $ 630,770,073 $ 233,545,538 $ 229,446,604
OPERATIONS
NET INVESTMENT
INCOME............... 16,024,660 16,202,137 25,985,483 27,272,039 8,067,460 7,036,095
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (69,906) (1,896) (14,700) 11,709 360 4,735
--------------- --------------- --------------- --------------- ------------- -------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 15,954,754 16,200,241 25,970,783 27,283,748 8,067,820 7,040,830
--------------- --------------- --------------- --------------- ------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT
INCOME............... (16,024,660) (16,202,137) (25,985,483) (27,272,039) (8,067,460) (7,036,095)
NET REALIZED GAIN ON
SALE OF
INVESTMENTS.......... 0 0 0 (52,582) (176) (12,103)
CAPITAL SHARE
TRANSACTIONS(1)
PROCEEDS FROM SHARES
SOLD................. 1,382,382,308 1,227,641,270 1,811,206,569 1,712,425,682 575,094,701 649,353,822
REINVESTMENT OF
DIVIDENDS............ 759,935 502,038 65,774 5 348 206
COST OF SHARES
REDEEMED............. (1,391,657,571) (1,315,293,065) (1,569,902,451) (1,871,232,124) (538,697,422) (645,247,726)
--------------- --------------- --------------- --------------- ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS........... (8,515,328) (87,149,757) 241,369,892 (158,806,437) 36,397,627 4,106,302
--------------- --------------- --------------- --------------- ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (8,585,234) (87,151,653) 241,355,192 (158,847,310) 36,397,811 4,098,934
--------------- --------------- --------------- --------------- ------------- -------------
--------------- --------------- --------------- --------------- ------------- -------------
NET ASSETS
-------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 540,703,685 $ 549,288,919 $ 713,277,955 $ 471,922,763 $ 269,943,349 $ 233,545,538
--------------- --------------- --------------- --------------- ------------- -------------
--------------- --------------- --------------- --------------- ------------- -------------
</TABLE>
(1) SHARES ISSUED AND REDEEMED AT CONSTANT $1.00 NAV
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21
<PAGE>
MONEY MARKET TRUSTS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING DIVIDENDS ENDING
NET ASSET NET FROM NET NET ASSET
VALUE PER INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INCOME SHARE
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 $ 0.03 $ (0.03) $ 1.00
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.03 (0.03) 1.00
MAY 5, 1997(2) TO
MARCH 31, 1998......... 1.00 0.03 (0.03) 1.00
MONEY MARKET TRUST (3)
----------------------------------------------------------------------------
APRIL 1, 1999 TO
MARCH 31, 2000......... 1.00 0.05 (0.05) 1.00
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.05 (0.05) 1.00
APRIL 1, 1997 TO
MARCH 31, 1998......... 1.00 0.05 (0.05) 1.00
OCTOBER 1, 1996 TO
MARCH 31, 1997(4)...... 1.00 0.03 (0.03) 1.00
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 1.00 0.05 (0.05) 1.00
JUNE 1, 1995 TO
SEPTEMBER 30,
1995(5)................ 1.00 0.02 (0.02) 1.00
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.05 (0.05) 1.00
NATIONAL TAX-FREE MONEY MARKET TRUST
----------------------------------------------------------------------------
APRIL 1, 1999 TO
MARCH 31, 2000......... 1.00 0.03 (0.03) 1.00
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.03 (0.03) 1.00
NOVEMBER 10, 1997(2) TO
MARCH 31, 1998......... 1.00 0.01 (0.01) 1.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
FINANCIAL HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
------------------------------------------ NET ASSETS AT
NET INVESTMENT NET GROSS TOTAL END OF PERIOD
INCOME (LOSS) EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
APRIL 1, 1999 TO
MARCH 31, 2000......... 2.89% 0.20% 0.67% 2.93% $540,704
APRIL 1, 1998 TO
MARCH 31, 1999......... 2.91% 0.20% 0.91% 2.93% 549,289
MAY 5, 1997(2) TO
MARCH 31, 1998......... 3.18% 0.20% 0.85% 2.94% 636,441
MONEY MARKET TRUST (3)
---------------------------------------------------------------------------------------------------
APRIL 1, 1999 TO
MARCH 31, 2000......... 5.35% 0.20% 0.48% 5.43% 713,278
APRIL 1, 1998 TO
MARCH 31, 1999......... 5.20% 0.20% 0.61% 5.35% 471,923
APRIL 1, 1997 TO
MARCH 31, 1998......... 5.46% 0.20% 0.61% 5.62% 630,770
OCTOBER 1, 1996 TO
MARCH 31, 1997(4)...... 5.28% 0.20% 0.61% 2.66% 807,003
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 5.33% 0.18% 0.55% 5.43% 1,143,767
JUNE 1, 1995 TO
SEPTEMBER 30,
1995(5)................ 5.70% 0.19% 1.11% 1.91% 286,863
JUNE 1, 1994 TO MAY 31,
1995................... 5.06% 0.17% 1.07% 5.05% 290,483
NATIONAL TAX-FREE MONEY MARKET TRUST
---------------------------------------------------------------------------------------------------
APRIL 1, 1999 TO
MARCH 31, 2000......... 3.27% 0.20% 0.52% 3.30% 269,943
APRIL 1, 1998 TO
MARCH 31, 1999......... 3.09% 0.20% 0.68% 3.16% 233,546
NOVEMBER 10, 1997(2) TO
MARCH 31, 1998......... 3.32% 0.20% 0.63% 1.30% 229,447
</TABLE>
23
<PAGE>
MONEY MARKET TRUSTS NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(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 operated as the Money Market Fund of Westcore Trust and was
advised by First Interstate Bank of Oregon, N.A. from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995, when First Interstate Capital Management, Inc. ("FICM")
assumed investment advisory responsibilities. In connection with the
merger of First Interstate Bancorp into Wells Fargo & Co. on April 1,
1996, FICM was renamed as Wells Fargo Investment Management, Inc.,
subsequently renamed Wells Capital Management, Inc. The Fund operated as a
series of Pacifica Funds Trust until it was reorganized as a series of
Stagecoach Funds, Inc. on September 6, 1996. In conjunction with the
September 6, 1996 reorganization, WFB assumed investment advisory
responsibilities.
(4) The Fund changed its fiscal year-end from September 30 to March 31.
(5) The Fund changed its fiscal year-end from May 31 to September 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 61 separate series. These financial
statements represent the Money Market Trust and National Tax-Free Money Market
Trust, diversified series of the Trust, and the California Tax-Free Money
Market Trust, a non-diversified series of the Trust (each, a "Fund",
collectively, the "Funds").
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective on the close of
business November 5, 1999 the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust through an exchange of shares as
follows:
<TABLE>
<S> <C>
STAGECOACH FUND WELLS FARGO FUND
CALIFORNIA TAX-FREE MONEY MARKET TRUST* CALIFORNIA TAX-FREE MONEY MARKET TRUST
MONEY MARKET TRUST* MONEY MARKET TRUST
NATIONAL TAX-FREE MONEY MARKET TRUST* NATIONAL TAX-FREE MONEY MARKET TRUST
</TABLE>
*ACCOUNTING SURVIVOR
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
The Money Market Trust may invest in repurchase agreements and may
participate in pooled repurchase agreement transactions with other funds
advised by Wells Fargo Bank, N.A. ("WFB"). The repurchase agreements must be
fully collateralized based on values that are marked to market daily. The
collateral may be held by an agent bank under a tri-party agreement. It is the
Fund's custodian's responsibility to value collateral daily and to take action
to obtain additional collateral as necessary to maintain market value equal to
or greater than the resale price. The repurchase agreements held by the Fund
are collateralized by instruments such as U.S. Treasury, federal agency, or
high-grade corporate obligations.
25
<PAGE>
MONEY MARKET TRUSTS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
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 March 31,
2000.
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Fund Year Expires Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET TRUST 3/31/05 $ 6,489
3/31/06 8,418
3/31/07 51,335
3/31/08 7,713
MONEY MARKET TRUST 3/31/08 14,700
</TABLE>
3. ADVISORY FEES
Currently the Trust is not charging for advisory fees. Prior to November 8,
1999 the Trust had entered into separate advisory contracts on behalf of the
Funds with WFB. Pursuant to the contracts, WFB had agreed to provide the Funds
with daily portfolio management. Under the prior contract with the California
Tax-Free Money Market Trust, WFB was entitled to be paid a monthly advisory
fee at the annual rate of 0.50% of the Fund's average daily net assets. The
Money Market Trust and National Tax-Free Money Market Trust were charged at
the same annual rate of 0.25% of each Fund's average daily net assets listed
above.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-adviser 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
Currently the Trust is not charging for distribution fees. Prior to
November 8, 1999 the Trust had entered into a "defensive" Distribution Plan
(the "Plan") on behalf of the Funds. The Plan contemplated that, to the extent
any portion of the fees payable by a Fund pursuant to its servicing plan was
deemed to be "primarily intended to result in the sale of shares" of a Fund,
such fees were approved and payable pursuant to the Plan and in accordance
with Rule 12b-1 under the 1940 Act. The maximum authorized fee under the Plan
was 0.20% of each Fund's average daily net assets. The Plan would not result
in any separate payment of fees by the Funds.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB is entitled to receive monthly fees at the annual rate of
0.15% of each Fund's average daily net assets.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). Under the transfer agency
contract, BFDS is entitled to receive, on a monthly basis, transfer agency
fees based on the number of accounts and transactions of each Fund. WFB will
continue to provide sub-transfer agency services to the Funds.
Prior to July 17, 1999 the Trust had entered into a contract on behalf of the
Funds with WFB, whereby WFB provided transfer agency services for the Funds,
which were charged at an annual rate of 0.02% of the average daily net assets
of each Fund.
7. SHAREHOLDER SERVICING FEES
Currently the Trust is not charging Shareholder Servicing fees. Prior to
November 8, 1999 the Trust had entered into contracts on behalf of the Funds
with WFB, whereby WFB had agreed to provide shareholder services for the
Funds. Pursuant to the contracts, WFB was entitled to receive shareholder
servicing fees at an annual rate of 0.20% of the average daily net assets of
the Funds.
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. WFB provided sub-portfolio accounting services to the
Funds. For these services, WFB was entitled to a fixed monthly fee from each
Fund plus an annual fee of 0.0025% of each Fund's average daily net assets.
Prior to November 8, 1999, the Trust had entered into contracts on behalf of
the Funds with WFB, whereby WFB was responsible for providing portfolio
accounting services for the Funds. Pursuant to the contract, WFB was entitled
to a monthly base fee from each Fund of $2,000 plus an annual fee of 0.07% of
the first $50 million of each Fund's average daily net assets, 0.045% of the
next $50 million, and 0.02% of each Fund's average daily net assets in excess
of $100 million.
The Trust has entered into contracts on behalf of each Fund with Norwest Bank
Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest is
responsible for providing custody services for the Funds. Pursuant to the
contracts, Norwest is entitled to certain transaction charges plus a monthly
fee for custody services at the annual rate of 0.02% of the average daily net
assets of each Fund. Prior to November 8, 1999 the Funds had the above service
performed for a fee at an annual rate of 0.0167% of the average daily net
assets of each Fund. Prior to June 4, 1999 WFB performed the above services
for the same fees.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 113,245.68 shares of the California Tax-Free Money Market
Trust, 1,650,773.80 shares of the Money Market Trust, and 52.40 shares of the
National Tax-Free Money Market Trust.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended March 31, 2000, were waived by WFB. Fee
waivers are contractual and apply for one year from the closing date of the
reorganization. After this time, the Advisor, with Board approval, may reduce
or eliminate such waivers.
<TABLE>
<CAPTION>
Fund Fees Waived by WFB Total Fees Waived
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET TRUST $2,588,896 $2,588,896
MONEY MARKET TRUST 1,326,477 1,326,477
NATIONAL TAX-FREE MONEY MARKET TRUST 788,415 788,415
</TABLE>
27
<PAGE>
MONEY MARKET FUND INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities of
California Tax-Free Money Market Trust, Money Market Trust and National
Tax-Free Money Market Trust (three of the funds comprising Wells Fargo Funds
Trust), including the Portfolios of Investments as of March 31, 2000, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Wells Fargo Funds Trust as of March 31, 2000,
the results of their operations for the year then ended, and the changes in
their net assets and their financial highlights for the periods indicated
above in conformity with accounting principles generally accepted in the
United States of America.
[LOGO]
San Francisco, California
May 12, 2000
28
<PAGE>
TAX INFORMATION (UNAUDITED) MONEY MARKET FUND
--------------------------------------------------------------------------------
For federal income tax purposes, the National Tax-Free Money Market Trust
designates 100% of the distributions paid from net investment income as
exempt-interest dividends under Section 852(b)(5) of the Internal Revenue Code
for the period January 1, 2000 to March 31, 2000 (its first tax year after the
reorganization).
For federal and California income tax purposes, the California Tax-Free Money
Market Trust designates 100% of the distributions paid from net investment
income as exempt-interest dividends under Section 852(b)(5) of the Internal
Revenue Code and under Section 17145 of the California Revenue and Taxation
Code for the period January 1, 2000 to March 31, 2000 (its first tax year
after the reorganization).
29
<PAGE>
MONEY MARKET TRUSTS LIST OF ABBREVIATIONS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
</TABLE>
30
<PAGE>
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are sponsored and distributed by STEPHENS INC., Member NYSE/SIPC.
Wells Fargo Bank, N.A., and its affiliates are not affiliated with Stephens
Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
WELLS
FARGO
FUNDS
P.O. BOX 8266
BOSTON, MA 02266-8266
AR010 (5/00)
