<PAGE>
[WELLS FARGO]
FUNDS
Semi-Annual Report
MONEY MARKET TRUSTS
September 30, 2000
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
---------------------------------------------------------------------
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 STATEMENTS.................................................24
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LIST OF ABBREVIATIONS.........................................................26
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
For investors, the six-month period ended September 30, 2000, was a time
characterized by market volatility. The market included a significant downturn
in technology stocks and attractive gains posted by bonds. In all, rapidly
changing markets reinforced the importance of diversified portfolios of
stocks, bonds and cash to help investors earn more balanced returns in
difficult times.
For stocks, April was the cruelest month. Against a backdrop of ongoing
interest rate hikes and their potential impact on corporate earnings, both the
Dow Jones Industrial Average (the Dow) and the Nasdaq Composite Index (Nasdaq)
went into a tailspin, with the Nasdaq plummeting 25% over five days. Although
the Nasdaq would flounder throughout the remainder of the period, the Dow
staged an impressive August rally -- only to surrender its gains one month
later due to concerns over corporate earnings.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Rising interest rates reflected the Federal Reserve Board's (the Fed) desire
to engineer an economic slowdown and to gradually drain speculative excess out
of the stock market. The interest rate increases, including an aggressive
half-point increase on May 16, 2000, which ultimately achieved the desired
affect. The rising interest rates benefited investors by boosting yields on
shorter-term securities within money market portfolios. U.S. Government
Treasury securities performed well during the second quarter and asset-and
mortgage-backed securities, plus U.S. Government agency securities, assumed a
leadership role in recent months.
Wells Fargo Money Market Funds, which maintained their $1.00 per share price
throughout this volatile period, continue to meet the investor demand for
safety, stability and liquidity.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
--------------------------------------------------------------------------------
Regardless of how financial markets have performed over recent months, Wells
Fargo Funds continue to encourage investors to think long-term. Wells Fargo
Funds continue to stress the importance of a diversified portfolio, a
portfolio that can capitalize on market opportunities while shielding investor
holdings against a downturn in any one sector. Wells Fargo Funds offers an
array of 65 mutual funds designed to meet an investor's risk tolerance and
long-term goals. Thank you for investing in Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
1
<PAGE>
MONEY MARKET TRUSTS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo California Tax-Free Money Market Trust (the Fund) seeks to
obtain a high level of income exempt from federal income tax and California
personal income tax, while preserving capital and liquidity by investing in
high-quality, short-term, U.S. dollar denominated money market instruments,
primarily municipal obligations.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Kevin Shaughnessy
Mary Gail Walton
INCEPTION DATE
05/02/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund returned 1.79%(1) for the six-month period ended September 30, 2000.
The Fund underperformed its benchmark, the 90-Day Treasury Bill(2), which
returned 3.05%. However, the Fund outperformed the iMoneyNet California State
Specific Institutional Money Fund Average(3), which returned 1.68%. The Fund
distributed $0.02 per share in dividend income and no capital gains during the
period. Please keep in mind that past performance is no guarantee of future
results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
The second quarter was a period of rising interest rates, fueled by
investors' perceptions of stronger economic growth and higher inflation. The
Federal Reserve Open Market Committee upheld that view when it raised the
Federal Funds' target level to 6.5% at its May meeting. Higher interest rates
are also fairly characteristic of second quarters, a reflection of large cash
outflows from money market funds to pay income taxes. This scenario presented
the Fund with the opportunity to increase exposure to longer maturity notes at
attractive yields.
However, as the third quarter got underway, investors' expectations for
additional rate increases were diminished, as economic reports indicated that
the economy was slowing. Although rises in oil prices raised the specter of
inflation, the overall direction of the money markets was stable, to downward.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The State of California has received higher than anticipated tax payments
this year, resulting in fewer note issuances and significant supply and demand
imbalances. For most of the period, this lack of new issues has kept the
long-term yield curve steep as far out as nine months. These events will
propel the Fund to take advantage of investment opportunities in the nine to
12-month maturity range, while continuing to provide ample liquidity reserves
for shareholders.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
FUND 1.79 3.33 3.12
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23(4)
IMONEYNET CALIFORNIA STATE
SPECIFIC INSTITUTIONAL MONEY
FUND AVERAGE 1.68 3.12 3.02(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.92%
7-DAY COMPOUND YIELD 4.00%
30-DAY SIMPLE YIELD 3.46%
30-DAY COMPOUND YIELD 3.51%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 44 DAYS
NUMBER OF HOLDINGS 136
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 72%
Municipal Commercial Paper 16%
Municipal Notes 8%
Municipal Bonds 2%
Municipal Put Bonds 2%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 78%
15-29 days 1%
30-59 days 3%
60-89 days 5%
90-179 days 3%
180-269 days 2%
270+ days 8%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the 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.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet California State Specific Institutional Money Fund Average is
an average of California institutional state tax- free and municipal money
funds.
(4) The published return closest to Trust's inception date of 05/02/97.
(5) 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 Fund) seeks to provide investors with
a high level of current income, while preserving capital and liquidity, by
investing in high-quality, short-term instruments.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Michael Neitzke
Laurie White
INCEPTION DATE
9/17/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund returned 3.23%(1) for the six-month period ended September 30, 2000.
The Fund outperformed its benchmark, the 90-Day Treasury Bill(2), which
returned 3.05%. The Fund also outperformed its peer group, the iMoneyNet First
Tier Institutional Money Fund Average (iMoneyNet)(3) that returned 3.10%. The
Fund distributed $0.03 per share in dividend income and no capital gains
during the period.
Please keep in mind that past performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
These objectives were closely followed in the period, as the Fund did not
seek to increase yields. It aimed only to fulfill its tactical goals of
liquidity and stability. Liquidity was kept high in anticipation of possible
shareholder redemptions. This was accomplished by investing funds in
shorter-term securities.
In view of the Fund's conservative strategy, its performance, which nearly
matched its benchmarks, was remarkable. Generally, portfolios with shorter
maturity structures would be expected to perform best in a rising interest
rate market. Its relatively favorable return in a period of declining interest
rates may be attributed to the value criteria of its investment strategy.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking ahead, the Fund will continue to seek investment opportunities along
the yield curve, but will only reinvest when superior quality issues emerge.
The Fund is committed to a value orientation in investment selection, which
will allow the Fund to perform well under any interest rate scenario. The Fund
is consistently managed to maintain a stable asset value of $1.00 per share in
both rising and falling interest rate markets.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
FUND 3.23 6.17 5.58 5.00
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET FIRST TIER
INSTITUTIONAL MONEY FUND
AVERAGE 3.10 5.89 5.37 5.04
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 6.55%
7-DAY COMPOUND YIELD 6.77%
30-DAY SIMPLE YIELD 6.53%
30-DAY COMPOUND YIELD 6.73%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 75 DAYS
NUMBER OF HOLDINGS 57
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 55%
Time Deposits 4%
Repurchase Agreements 6%
Corporate Bonds 10%
Floating/Variable Rate Bonds/Notes 11%
Certificates of Deposits 12%
Bankers' Acceptance Notes 2%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 17%
15-29 days 28%
30-59 days 4%
60-89 days 11%
90-179 days 32%
180-269 days 8%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the 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.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet First Tier Institutional Money Fund Average is an average of
non-governmental institutional funds that do not hold any second tier
securities. Portfolio holdings of First Tier funds include U.S. Treasury
securities, U.S. other securities, repos, time deposits, domestic bank
obligations, foreign bank obligations, first tier commercial paper, floating
rate notes and asset- backed commercial paper.
(4) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET TRUSTS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Money Market Trust (the Fund) seeks to
provide current income exempt from federal income taxes.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/10/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund returned 2.10%(1) for the six-month period ended September 30, 2000.
The Fund underperformed its benchmark, the 90-Day Treasury Bill(2) , which
returned 3.05%. However, the Fund outperformed the iMoneyNet Tax-Free
Institutional Money Fund Average (iMoneyNet)(3) which returned 1.91%. The Fund
distributed $0.02 per share in dividend income and no capital gains during the
period. Please keep in mind that past performance is no guarantee of future
results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria utilized in investment decisions,
allow the Fund to focus on long-term trends. Short-term volatility in interest
rates does not heavily influence the management of the Fund.
During the second quarter, maturing securities were reinvested at higher
yields, thereby boosting the Fund's overall yield. As longer-term securities
had higher yields than shorter-term ones, Fund managers reinvested in the
former, thereby extending the maturity structure of the portfolio.
The municipal market yield curve flattened considerably during the third
quarter, with three-month notes rising 30 basis points but one-year notes
rising only 10 basis points. The Fund took advantage of this yield advantage
in long-term securities. This left it with a longer average maturity structure
than that of its peer group, iMoneyNet.
In coming months, the objective of the Fund will be to weather the impact of
heavy tax payments on tax-free securities, an event which may cause investors
to seek shelter in non-government investments. Therefore, it will seek to
maintain liquidity for possible shareholder redemptions. Although the Fund
generally strives to hold securities to maturity, it is prepared to sell
holdings if market opportunities emerge or to fund shareholder redemptions.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the economy is headed for a soft landing,
with stable to declining interest rates over the coming months. The outlook
for improvements in short-term yields is dim, in view of the decision by the
Federal Reserve Board in August to keep interest rates unchanged. However,
long-term yields increased slightly in reaction to market fears over energy
price hikes and inflationary pressures. These events suggest continued
volatility in interest rates. However, the Fund is consistently managed to
maintain a stable asset value of $1.00 per share regardless of market
volatility.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
FUND 2.10 3.87 3.43
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.24(4)
IMONEYNET TAX-FREE INSTITUTIONAL
MONEY FUND AVERAGE 1.91 3.54 3.21(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 4.83%
7-DAY COMPOUND YIELD 4.95%
30-DAY SIMPLE YIELD 4.28%
30-DAY COMPOUND YIELD 4.37%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 58 DAYS
NUMBER OF HOLDINGS 102
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 71%
Municipal Bonds 21%
Municipal Put Bonds 8%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
OVERNIGHT 1%
2-14 DAYS 70%
<S> <C>
15-29 days 1%
30-59 days 2%
60-89 days 2%
90-179 days 13%
180-269 days 4%
270+ days 7%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Wells Fargo National Tax-Free Money Market Trust for
the 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.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet Tax-Free Institutional Money Fund Average is an average of
all national and state tax-free and institutional municipal money funds.
Portfolio holdings of tax-free funds includes rated and unrated demand notes,
rated and unrated general market notes, commercial paper, put bonds under six
months, put bonds over six months, AMT paper and other tax-free holdings. It is
made up of funds in the National Tax-Free Institutional and State Specific
Institutional categories.
(4) The published return closest to Fund's inception date of 11/10/97.
(5) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 93.42%
$ 3,165,000 ABAG FINANCE AUTHORITY
NONPROFIT CORPS MFHR
HOUSING-GAIA BUILDING PROJECT
SERIES A++ 4.60% 7/1/30 $ 3,165,000
5,000,000 AMB AMRO MUNITOPS COP 1998-20
MUNITOPS CERTIFICATES AMN AMRO
LOC++ 5.13 7/5/06 5,000,000
2,680,000 AMB AMRO MUNITOPS COP FGIC
INSURED++ 4.00 5/7/08 2,680,000
7,995,000 ANAHEIM CA HOUSING AUTHORITY
MFHR SERIES L++ 4.72 2/15/33 7,995,000
3,288,000 BUENA PARK CA MFHR WALDEN GLEN
APARTMENTS PROJECT SERIES A++ 4.45 2/15/33 3,288,000
4,130,000 BUTTE COUNTY CA OFFICE OF
EDUCATION GO BONDS TAX &
REVENUE ANTICIPATION NOTES 4.25 11/16/00 4,132,934
4,700,000 CALIFORNIA COMMUNITY COLLEGE
FINANCING AUTHORITY++ 4.00 10/4/01 4,700,000
3,000,000 CALIFORNIA COMMUNITY COLLEGE
TAX & REVENUE ANTICIPATION
NOTES SERIES A 5.00 6/29/01 3,016,176
6,500,000 CALIFORNIA EDUCATIONAL
FACILITIES AUTHORITY
EDUCATIONAL REVENUE UNIVERSITY
SAN FRANCISCO PROJECT ALLIED
IRISH BANK PLC LOC++ 4.10 5/1/30 6,500,000
3,000,000 CALIFORNIA HFA SFMR HOME
MORTGAGE PROJECT SERIES I
NATIONSBANK LOC++ 4.05 6/1/01 3,000,000
1,330,000 CALIFORNIA HFFA HEALTH CARE RV
POOLED LOAN PROGRAM PROJECT
SERIES B FGIC INSURED++ 2.50 10/1/10 1,330,000
4,000,000 CALIFORNIA HOUSING FINANCE
AGENCY MFHR SERIES B
LANDESBANK HESSEN LOC++ 4.50 2/1/31 4,000,000
3,690,000 CALIFORNIA HOUSING FINANCE
AGENCY HOUSING REVENUE
SERIES A++ 4.72 8/1/24 3,690,000
4,200,000 CALIFORNIA HOUSING FINANCE
AGENCY HOUSING RV SERIES M US
BANK TRUST NA LOC++ 4.45 8/1/19 4,200,000
3,045,000 CALIFORNIA HOUSING FINANCE
AGENCY SFHR SERIES 83 FHA
LOC++ 4.92 8/1/25 3,045,000
8,000,000 CALIFORNIA HOUSING RV++ 4.25 8/1/01 8,000,000
1,000,000 CALIFORNIA INFRASTRUTURE &
ECONOMIC DEVELOPMENT BANK IDA
RV INDEPENDENT SYSTEM
OPERATING CORPORATION
SERIES A MBIA INSURED++ 4.40 4/1/08 1,000,000
4,099,000 CALIFORNIA PCFA PCR SERIES E
MORGAN GUARANTY TRUST LOC++ 5.00 11/1/26 4,099,000
7,400,000 CALIFORNIA PCFA PCR SIERRA
PACIFIC INDS PROJECT BANK OF
AMERICA LOC++ 4.40 2/1/13 7,400,000
400,000 CALIFORNIA PCFA SOLID WASTE
DISPOSAL REVENUE COLMAC ENERGY
PROJECT SERIES A++ 4.35 12/1/16 400,000
8,500,000 CALIFORNIA PCFA SOLID WASTE
DISPOSAL RV SHELL OIL COMPANY
MARTINEZ PROJECT AMT AMBAC
INSURED++ 4.65 10/1/24 8,500,000
5,100,000 CALIFORNIA PCFA US BORAX
INCORPORATED PROJECT
SERIES A++ 5.50 6/1/10 5,100,000
7,225,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY IDA RV SERIES D MBIA
INSURED++ 5.50 3/1/18 7,225,000
16,000,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 5.25 7/3/01 16,112,781
1,500,000 CALIFORNIA SCHOOL FACILITIES
COP SERIES A++ 4.65 7/1/22 1,500,000
7,000,000 CALIFORNIA STATE DEPARTMENT OF
WATER & POWER 3.60 12/7/00 7,000,000
9,995,000 CALIFORNIA STATE DEPARTMENT OF
WATER RESERVE CENTRAL VALLEY
PROJECT REVENUE SERIES 351++ 3.75 7/1/12 9,995,000
1,525,000 CALIFORNIA STATE DEPARTMENT OF
WATER RESERVE PROJECT
REVENUE++ 3.95 3/22/01 1,525,000
5,505,000 CALIFORNIA STATE GO 5.00 10/2/00 5,505,000
2,000,000 CALIFORNIA STATE GO 3.95 10/6/00 2,000,000
2,500,000 CALIFORNIA STATE GO 3.90 10/11/00 2,500,000
5,400,000 CALIFORNIA STATE GO 4.00 11/8/00 5,400,000
4,600,000 CALIFORNIA STATE GO 3.65 12/6/00 4,600,000
7,000,000 CALIFORNIA STATE GO 3.70 12/11/00 7,000,000
7,250,000 CALIFORNIA STATE GO 11.00 3/1/01 7,461,585
5,000,000 CALIFORNIA STATE GO++ 4.52 3/1/15 5,000,000
2,935,000 CALIFORNIA STATE GO++ 4.52 3/1/20 2,935,000
1,580,000 CALIFORNIA STATE GO++ 4.82 3/1/21 1,580,000
17,660,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLE TRUST SERIES
SERIES 94 MBIA INSURED++ 4.82 9/1/03 17,660,000
3,050,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE RV SERIES 210
AMBAC INSURED++ 4.87 1/1/11 3,050,000
10,460,000 CALIFORNIA STATEWIDE CDA++ 5.52 1/25/31 10,460,000
3,515,000 CALIFORNIA STATEWIDE CDA RV
FLOATER CERTIFICATES
SERIES 151 AMBAC INSURED++ 4.82 8/1/11 3,515,000
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) 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)
$ 3,900,000 CALIFORNIA STATEWIDE CDA RV
TAX & ANTICIPATION SERIES A
FSA INSURED 5.25% 6/29/01 $ 3,927,247
3,130,000 CALIFORNIA STATEWIDE CDA
MFHR++ 4.77 12/1/41 3,130,000
3,100,000 CALIFORNIA STATEWIDE CDA MFHR
AEGIS PLEASANT HILL PROJECT
SERIES H THE CHASE MANHATTAN
BANK LOC++ 4.60 7/1/27 3,100,000
400,000 CALIFORNIA STATEWIDE CDA MFHR
SUNRISE DANVILLE PROJECT
SERIES A++ 4.45 5/1/27 400,000
600,000 CALIFORNIA STATEWIDE CDA MFHR
SUNRISE FRESNO PROJECT
SERIES B++ 4.45 12/1/26 600,000
5,000,000 CAMARILLO CA MFHR HERITAGE
PARK PROJECT SERIES A FNMA
INSURED++ 4.45 7/15/19 5,000,000
3,000,000 CENTRAL VALLEY CA SCHOOLS
FINANCING AUTHORITY++ 5.50 1/26/01 3,000,000
1,500,000 CONTRA COSTA COUNTY CA MFHR
DELTA SQUARE APARTMENTS
PROJECT SERIES H FNMA
INSURED++ 4.30 10/15/29 1,500,000
3,000,000 CONTRA COSTA WATER DISTRICT
RV++ 3.90 12/8/00 3,000,000
200,000 EASTERN MUNICIPAL WATER
DISTRICT CA WATER & SEWER
REVENUE COP SERIES B FGIC
INSURED++ 4.40 7/1/20 200,000
400,000 FREMONT CA MFHR CREEKSIDE
VILLAGE APARTMENTS SERIES D
KBC BANK LOC++ 4.30 9/1/07 400,000
2,000,000 FRESNO COUNTY CA TAX & REVENUE
ANTICIPATION NOTES 5.00 7/2/01 2,010,904
1,000,000 GOLDEN EMPIRE CA SCHOOL
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A
CANADIAN IMPERIAL BANK LOC++ 4.50 12/1/24 1,000,000
1,485,000 GOVERNMENT DEVELOPMENT BANK 3.65 10/18/00 1,485,000
3,159,000 GOVERNMENT DEVELOPMENT BANK 4.35 11/9/00 3,159,000
3,000,000 GOVERNMENT DEVELOPMENT BANK 4.00 11/13/00 3,000,000
1,300,000 IRVINE CA IMPROVEMENT BOND ACT
1915 ASSESSMENT DISTRICT NO
85-7-1 CANADIAN IMPERIAL BANK
LOC++ 4.40 9/2/11 1,300,000
2,800,000 LONG BEACH CA HARBOR RV
P-FLOATS-PA 651++ 4.60 5/15/19 2,800,000
3,000,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER SERIES 88
MBIA INSURED++ 4.52 8/15/18 3,000,000
5,240,000 LOS ANGELES CA
DEPARTMENTWATER & ELECTRIC
PLANT REVENUE SERIES 276
MORGAN STANLEY INSURED++ 5.02 11/15/10 5,240,000
2,200,000 LOS ANGELES CA DEPARTMENT
WATER & POWER ELECTRIC REVENUE
SERIES 144 FSA INSURED++ 4.82 6/15/29 2,200,000
325,000 LOS ANGELES CA MFHR HOUSING
LOANS TO LENDERS PROJECT
SERIES B FHLB INSURED++ 5.10 12/1/26 325,000
7,000,000 LOS ANGELES CA SERIES N8 BANK
OF NY LOC++ 5.50 6/29/01 7,000,000
2,810,000 LOS ANGELES CA USD
SERIES 1179++ 3.95 7/1/19 2,810,000
8,745,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES 106 FSA INSURED++ 4.82 7/1/10 8,745,000
1,800,000 LOS ANGELES COUNTY CA TAXABLE
PENSION OBLIGATION SERIES A++ 4.25 6/30/07 1,800,000
5,000,000 LOS ANGELES COUNTY CA TAX & RV
ANTICIPATION NOTES SERIES A 5.00 6/29/01 5,030,178
2,335,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMUNITY SALES
TAX RV SERIES A 6.75 7/1/01 2,425,862
200,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMUNITY SALES
TAX RV SERIES A++ 4.25 7/1/12 200,000
2,480,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMUNITY SALES
TAX RV SERIES A FGIC INSURED 6.75 7/1/01 2,576,505
20,000,000 METROPOLITAN WATER DISTRICT
CA++ 4.67 8/5/22 20,000,000
1,000,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA 3.90 10/18/00 1,000,000
2,800,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES A
AMBAC INSURED++ 4.40 6/1/23 2,800,000
3,500,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES C
BANK OF AMERICA NT & SA LOC++ 4.15 7/1/28 3,500,000
6,000,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES 116++ 4.77 7/1/21 6,000,000
1,855,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES SG-128++ 4.52 7/1/30 1,855,000
12,000,000 MILPITAS CA MFHR CROSSING AT
MONTAGUE PROJECT SERIES A US
BANK TRUST NA LOC++ 4.45 8/15/33 12,000,000
2,000,000 MSR PUBLIC POWER AGENCY CA
POWER RV SAN JUAN PROJECT
SERIES D MBIA INSURED++ 4.40 7/1/18 2,000,000
1,800,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE
SERIES A++ 4.65 11/1/09 1,800,000
</TABLE>
9
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
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)
$ 1,500,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE SERIES B
BANK OF AMERICA NT & SA LOC++ 4.30% 11/1/09 $ 1,500,000
3,000,000 OTAY CA WATER DISTRICT COP
CAPITAL PROJECTS++ 4.40 9/1/26 3,000,000
5,400,000 PAJARO VALLEY CA UNITED SCHOOL
DISTRICT SCHOOL FACILITIES
BRIDGE FUNDING PROJECT++ 4.50 9/1/31 5,400,000
4,100,000 PALMDALE CA SCHOOL DISTRICT
COP BUILDING PROJECT FSA
INSURED++ 4.50 9/1/13 4,100,000
4,200,000 PORT OAKLAND CA TRANSPORTATION
REVENUE SERIES K FGIC
INSURED++ 5.12 11/1/21 4,200,000
2,000,000 PORT OAKLAND CA TRANSPORTATION
REVENUE SERIES 5 FGIC
INSURED++ 5.12 11/1/12 2,000,000
3,250,000 RIVERSIDE COUNTY CA COP
SERIES A 3.65 10/4/00 3,250,000
3,300,000 RIVERSIDE COUNTY CA IDA RV
UNIVERSAL FOREST PRODUCTS
PROJECT BANK ONE MICHIGAN
LOC++ 4.90 8/1/29 3,300,000
500,000 SACRAMENTO CA MFHR SMOKETREE
PROJECT SERIES A US BANK TRUST
NA LOC++ 4.40 4/15/10 500,000
2,600,000 SACRAMENTO COUNTY CA
ADMINISTRATION CENTER & COURT
HOUSE PROJECT LOC - UNION BANK
OF SWITZERLAND++ 2.50 6/1/20 2,600,000
545,000 SACRAMENTO COUNTY CA
SANITATION DISTRICT FINANCING
AUTHORITY UTILITY RV SERIES A
BANK OF NEW YORK LOC++ 5.07 12/1/19 545,000
3,760,000 SACRAMENTO COUNTY CA TAX & RV
ANTICIPATION NOTES GO 5.00 10/4/01 3,802,195
2,000,000 SALINAS CA APARTMENT
DEVELOPMENT RV MARINER VILLAGE
PROJECT SERIES B BANK OF
AMERICA NT & SA LOC++ 4.30 4/1/05 2,000,000
2,290,000 SAN BERNARDINO COUNTY CA COP 6.75 8/1/01 2,389,921
2,100,000 SAN BERNARDINO COUNTY CA COP
COUNTY CENTER REFINANCING
PROJECT CANADIAN IMPERIAL BANK
LOC++ 4.30 7/1/15 2,100,000
2,725,000 SAN BERNARDINO COUNTY CA MFHR
HOUSING ROSEWOOD APARTMENTS
SERIES A++ 4.30 5/15/29 2,725,000
5,670,000 SAN DIEGO CA COP++ 4.52 8/1/28 5,670,000
4,000,000 SAN DIEGO CA COP SAN PASQUAL
ACADEMY PROJECT++ 4.70 8/1/20 4,000,000
12,308,000 SAN DIEGO CA HOUSING AUTHORITY
MHFR CARMEL DEL MAR PROJECT
SERIES E BANK OF AMERICA LOC++ 4.20 12/1/15 12,308,000
2,295,000 SAN DIEGO CA IDR++ 4.52 9/1/19 2,295,000
4,130,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY REVENUE
SERIES SG 130++ 4.52 5/15/29 4,130,000
10,000,000 SAN FRANCISCO BAY GO 4.00 10/2/00 10,000,000
25,000,000 SAN FRANCISCO CA CITY & COUNTY
AIRPORT COMMUNITY
INTERNATIONAL AIRPORT RV
SERIES 31 FGIC INSURED++ 4.92 5/1/29 25,000,000
2,000,000 SAN FRANCISCO CA CITY & COUNTY
REDEVELOPMENT AGENCY MFHR
FILLMORE CENTER PROJECT
SERIES A-1 CREDIT SUISSE FIRST
BOSTON LOC++ 4.15 12/1/17 2,000,000
23,800,000 SAN FRANCISCO CA CITY & COUNTY
REDEVELOPMENT AGENCY MFHR
FILLMORE CENTER PROJECT
SERIES B-1 CREDIT SUISSE FIRST
BOSTON LOC++ 4.15 12/1/17 23,800,000
685,000 SAN FRANCISCO CA CITY & COUNTY
REDEVELOPMENT AGENCY MFHR
YERBA BUENA GARDEN PROJECT
BANK OF TOKYO MITSUBISHI LOC++ 2.55 9/1/06 685,000
1,200,000 SAN FRANCISCO CA CITY & COUNTY
REDEVELOPMENT AGENCY SOUTH
HARBOR PROJECT BT SECURITITES
CORPORATION LOC++ 5.20 12/1/16 1,200,000
32,000,000 SAN JOAQUIN TRANSPORTATION 4.50 10/2/00 32,000,000
2,835,000 SAN JOSE CA MFHR++ 4.77 5/1/30 2,835,000
2,880,000 SAN JOSE CA MFHR++ 4.77 5/1/30 2,880,000
500,000 SAN JOSE CA MFHR ALMADEN LAKE
VILLAGE APARTMENTS SERIES A 4.38 3/1/32 500,000
2,000,000 SAN JOSE CA MFHR ALMADEN LAKE
VILLAGE APARTMENTS PROJECT
SERIES A++ 4.38 3/1/32 2,000,000
1,300,000 SAN JOSE CA MFHR FAIRWAY GLEN
SERIES A FGIC INSURED++ 4.45 11/1/07 1,300,000
2,600,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT SERIES A 2.55 7/1/26 2,600,000
1,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT SERIES B 4.20 7/1/26 1,000,000
10,525,000 SAN LEANDRO CA MFHR PARKSIDE
PROJECT FNMA INSURED++ 4.50 7/15/18 10,525,000
845,000 SANTA CLARA CA ELECTRIC RV
SERIES B++ 4.40 7/1/10 845,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) 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)
$ 2,800,000 SANTA CLARA CA TRANSPORTATION
DISTRICT TRANSPORTATION RV++ 2.50% 6/1/15 $ 2,800,000
5,000,000 SANTA CRUZ COUNTY CA TAX
ALLOCATION RV 4.50 10/6/00 5,000,450
3,781,000 SOUTHEAST RESOURCE RECOVERY
FACILITIES AUTHORITY CA LEASE
RV SERIES B STATE STREET B&T
INSURED++ 4.55 12/1/18 3,781,000
1,080,000 TURLOCK CA IRRIGATION PROJECT
SERIES A++ 4.40 1/1/14 1,080,000
5,600,000 UNIVERSITY OF CALIFORNIA RV 3.80 12/11/00 5,600,000
6,000,000 UNIVERSITY OF CALIFORNIA RV 3.90 12/8/00 6,000,000
650,000 VACAVILLE CA MFHR QUAIL RUN
PROJECT SERIES A US BANK TRUST
NA LOC++ 4.50 7/15/18 650,000
1,245,000 VALLEJO CA MFHR HIGHLANDS++ 4.75 6/1/07 1,245,000
900,000 VALLEJO CA MFHR RV SERIES A++ 4.50 5/15/22 900,000
2,100,000 VALLEJO CA MFHR RV SERIES C 4.90 1/1/08 2,100,000
567,726,738
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$567,726,738)
------------
PUERTO RICO MUNICIPAL SECURITIES - 6.19%
6,535,000 PUERTO RICO COMMONWEALTH++ 4.57 7/1/16 6,535,000
4,725,000 PUERTO RICO COMMONWEALTH++ 4.05 7/1/23 4,725,000
4,700,000 PUERTO RICO COMMONWEALTH
SERIES 20 MBIA IBC INSURED++ 4.97 7/1/23 4,700,000
1,385,000 PUERTO RICO COMMONWEALTH
SERIES 125 AMBAC INSURED++ 4.82 7/1/10 1,385,000
7,020,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 AMBAC
INSURED++ 4.82 1/1/10 7,020,000
2,000,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV++ 4.57 7/1/07 2,000,000
1,354,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.20 11/16/00 1,354,000
9,915,000 PUERTO RICO MUNICIPAL FINANCE
AGENCY++ 4.57 8/1/19 9,915,000
37,634,000
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $37,634,000)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $605,360,738)* 99.61% $605,360,738
OTHER ASSETS AND LIABILITIES, NET .39 2,398,430
------- ------------
TOTAL NET ASSETS 100.00% $607,759,168
------- ------------
</TABLE>
++ VARIABLE RATE.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A FEATURE
WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
OTHER 31%
<S> <C>
Multi-Family Housing 18%
Education Facilities 10%
Transportation 9%
Water & Sewer 7%
Airport 4%
General Obligation 4%
Housing 3%
Industrial
Development 3%
Pollution Control 3%
Economic Development 1%
Electric 1%
Health Care 1%
Leasing 1%
Local Agency Housing 1%
Sales Tax 1%
Single Family Housing 1%
Utilities 1%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
BANK NOTES - 2.03%
$ 5,000,000 BANK OF AMERICA CORPORATION 7.23% 2/16/01 $ 5,000,000
10,000,000 BRANCH BANKING & TRUST 7.05 5/7/01 9,977,981
14,977,981
TOTAL BANK NOTES (COST $14,977,981)
------------
CERTIFICATES OF DEPOSIT - 11.50%
20,000,000 ABN-AMRO BANK, CHICAGO 6.72 2/12/01 19,997,928
5,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 1/29/01 4,999,382
5,000,000 DRESDNER BANK AG 7.10 5/15/01 5,000,000
8,000,000 NATEXIS BANK SA NEW YORK 6.77 2/26/01 8,000,391
20,000,000 SOUTHTRUST BANK 6.88 1/8/01 20,000,000
7,000,000 SOUTHTRUST BANK 6.87 1/10/01 7,000,000
10,000,000 U.S. BANK N.A. 6.59 1/16/01 10,000,000
10,000,000 UNION BANK OF SWITZERLAND
STAMFORD 6.22 12/11/00 9,998,630
84,996,331
TOTAL CERTIFICATES OF DEPOSIT (COST
$84,996,331)
------------
COMMERCIAL PAPER - 54.35%
10,000,000 ACE OVERSEAS CORPORATION 6.98{::} 12/4/00 9,882,050
6,000,000 ACE OVERSEAS CORPORATION 6.99{::} 12/4/00 5,929,125
15,000,000 ALPINE SECURITIZATION
CORPORATION 6.58{::} 10/23/00 14,942,688
24,600,000 APRECO INCORPORATED 6.68{::} 10/16/00 24,537,099
8,000,000 ATLANTIS ONE FUNDING
CORPORATION 6.74{::} 2/16/01 7,801,503
3,000,000 BANK OF AMERICA CORPORATION 6.82{::} 2/9/01 2,928,609
7,000,000 BAVARIA TRR CORPORATION 6.69{::} 4/17/01 6,753,122
17,000,000 BEAR STEARNS
COMPANIES, INCORPORATED 6.75{::} 5/30/01 16,271,269
2,000,000 COMPASS SECURITIZATION, LLC 6.81{::} 1/10/01 1,963,223
28,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.59{::} 10/16/00 27,928,678
10,000,000 CROWN POINT CAPITAL COMPANY,
LLC 6.58{::} 10/12/00 9,981,806
5,000,000 GAP INCORPORATED 6.76++ 9/21/01 5,000,000
10,000,000 GENERAL ELECTRIC CAPITAL
INTERNATIONAL FUNDING 6.75{::} 2/2/01 9,776,893
18,000,000 GENERAL ELECTRIC CAPITAL
SERVICE 6.75{::} 1/30/01 17,606,400
10,000,000 GOVCO INCORPORATED LLC 6.68{::} 11/2/00 9,943,425
17,000,000 GREYHAWK FUNDING, LLC 6.76{::} 2/2/01 16,620,135
20,000,000 HALOGEN CAPITAL COMPANY, LLC 6.58{::} 10/16/00 19,949,133
10,000,000 HALOGEN CAPITAL COMPANY, LLC 6.57{::} 10/17/00 9,972,792
28,000,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.74{::} 3/2/01 27,234,263
5,000,000 MOAT FUNDING, LLC 6.95{::} 12/4/00 4,941,200
3,000,000 MOAT FUNDING, LLC 6.93{::} 12/13/00 2,959,800
12,000,000 MOAT FUNDING, LLC 6.73{::} 1/26/01 11,746,734
9,000,000 MOAT FUNDING, LLC 6.67{::} 2/7/01 8,786,560
10,000,000 NEPTUNE FUNDING CORPORATION 6.58{::} 10/17/00 9,972,708
18,000,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/19/00 17,944,325
25,000,000 SALOMON SMITH BARNEY
HOLDINGS, INCORPORATED 6.63{::} 10/6/00 24,981,833
20,000,000 SHEFFIELD RECEIVABLES
CORPORATION 6.57{::} 10/18/00 19,941,956
7,000,000 SIGMA FINANCE INCORPORATED 6.85{::} 2/2/01 6,841,791
4,000,000 SIGMA FINANCE INCORPORATED 6.73{::} 6/15/01 3,817,672
15,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.62++ 2/23/01 15,000,000
15,000,000 SYDNEY CAPITAL CORPORATION 6.93{::} 12/21/00 14,776,667
5,000,000 VARIABLE FUNDING CAPITAL
CORPORATION 6.84{::} 1/10/01 4,908,195
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$10,000,000 VENTURES BUSINESS TRUST 6.69%{::} 10/16/00 $ 9,974,411
401,616,065
TOTAL COMMERCIAL PAPER (COST $401,616,065)
------------
CORPORATE BONDS & NOTES - 10.69%
22,000,000 BANK OF AMERICA CORPORATION 6.83 1/22/01 22,000,000
10,000,000 BETA FINANCE INCORPORATED 6.15 10/6/00 10,000,000
10,000,000 CC (USA), INCORPORATED 6.77 3/15/01 10,000,000
15,000,000 CC (USA), INCORPORATED 7.12 5/7/01 15,000,000
15,000,000 DORADA FINANCE, INCORPORATED 6.79 3/15/01 15,000,000
7,000,000 U.S. BANK N.A. 5.92 10/2/00 7,000,000
79,000,000
TOTAL CORPORATE BONDS & NOTES (COST
$79,000,000)
------------
TIME DEPOSITS - 4.06%
10,000,000 BANQUE BRUXELLES LAMBERT,
LONDON BRANCH 6.75 10/2/00 10,000,000
10,000,000 BARCLAY'S BANK, LONDON BRANCH 6.73 10/2/00 10,000,000
10,000,000 CAISSE DES DEPOTS ET
CONSIGNATIONS, PARIS 6.73 10/2/00 10,000,000
30,000,000
TOTAL TIME DEPOSITS (COST $30,000,000)
------------
VARIABLE & FLOATING RATE BONDS & NOTES - 11.50%
20,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.68 3/29/01 20,000,000
20,000,000 J.P. MORGAN & COMPANY 6.61 3/16/01 20,000,000
20,000,000 MORGAN STANLEY DEAN WITTER 6.60 3/16/01 20,000,000
25,000,000 UNILEVER CAPITAL CORPORATION 6.68 9/7/01 25,000,000
85,000,000
TOTAL VARIABLE & FLOATING RATE BONDS &
NOTES (COST $85,000,000)
------------
REPURCHASE AGREEMENTS - 5.68%
6,992,140 BEAR STEARNS COMPANIES
REPURCHASE AGREEMENT 6.65 10/2/00 6,992,140
35,000,000 GOLDMAN SACHS & COMPANY
REPURCHASE AGREEMENT 6.75 10/2/00 35,000,000
41,992,140
TOTAL REPURCHASE AGREEMENTS (COST
$41,992,140)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $737,582,517)* 99.81% $737,582,517
OTHER ASSETS AND LIABILITIES, NET 0.19 1,395,668
------- ------------
TOTAL NET ASSETS 100.00% $738,978,185
------- ------------
</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 -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.33%
ALABAMA - 0.25%
$ 745,000 JEFFERSON COUNTY AL SEWER RV
PA 487 R++ 5.62% 2/1/38 $ 745,000
------------
ALASKA - 0.40%
1,180,000 ALASKA IDA PROVIDENCE MEDICAL
OFFICE BUILDING++ 4.10 6/1/10 1,180,000
------------
ARIZONA - 2.72%
600,000 APACHE COUNTY AZ IDA TUCSON
ELECTRIC POWER SERIES 83-A++ 5.60 12/15/18 600,000
4,500,000 MARICOPA COUNTY AZ IDA MFHR
FRN++ 5.82 11/1/32 4,500,000
3,000,000 MARICOPA COUNTY AZ IDA MFHR
LAS GARDENIAS APARTMENTS
PROJECT SERIES A FNMA
INSURED++ 5.80 4/15/33 3,000,000
8,100,000
------------
CALIFORNIA - 0.67%
2,000,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN RV
SERIES A STATE STREET B&T CA
LOC 4.70 6/1/01 2,000,000
------------
COLORADO - 5.44%
1,000,000 JEFFERSON COUNTY CO SCHOOL
DISTRICT++ 5.00 6/27/01 1,004,835
3,000,000 JEFFERSON COUNTY CO SCHOOL
DISTRICT NO. R-001 GO++ 5.00 12/15/00 3,006,479
3,400,000 ROARING FORKS CO
SERIES 2000-10++ 5.72 12/1/05 3,400,000
3,000,000 ROARING FORKS CO
SERIES 2000-14++ 5.72 6/1/05 3,000,000
5,810,000 ROARING FORKS CO
SERIES 2000-17++ 5.82 2/1/05 5,810,000
16,221,314
------------
DISTRICT OF COLUMBIA - 0.70%
2,100,000 DISTRICT OF COLUMBIA FRN PA
568++ 5.62 6/1/10 2,100,000
------------
FLORIDA - 0.67%
2,000,000 HILLSBOROUGH COUNTY FL HFA
SFHR GNMA/FNMA INSURED++ 4.50 8/16/01 2,000,000
------------
GEORGIA - 0.50%
500,000 CLAYTON COUNTY GA MFHR++ 5.60 8/1/06 500,000
1,000,000 COBB COUNTY GA SCHOOL DISTRICT 4.38 12/29/00 1,000,945
1,500,945
------------
IDAHO - 0.60%
1,800,000 IDAHO HEALTH FACILITIES
AUTHORITY RV ST. LUKES
REGIONAL MEDICAL CENTER
PROJECT WEST ONE BANK IDAHO
LOC++ 5.65 5/1/22 1,800,000
------------
ILLINOIS - 7.83%
3,300,000 CHICAGO IL GO SERIES A
LANDESBANK HESSEN LOC 3.90 12/7/00 3,300,000
1,690,000 CHICAGO IL OHARE INTERNATIONAL
AIRPORT PASSENGER FACILITIES
CHARGE PROJECT SERIES B AMBAC
INSURED 5.00 1/1/01 1,692,263
3,200,000 ELGIN IL IDR NELSON GRAPHIC
INCORPORATED PROJECT LASALLE
BANK NA INSURED++ 5.67 5/1/20 3,200,000
500,000 ELMHURST IL IDR JOHN SAKASH
COMPANY INCORPORATED PROJECT
LASALLE BANK N.A. LOC++ 5.67 2/1/25 500,000
2,500,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY RV 5.00 7/11/01 2,509,230
3,000,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY RV
SERIES A3 HARRIS TRUST &
SAVINGS LOC 4.75 2/5/01 3,000,000
3,500,000 ILLINOIS HFFA SERIES B++ 5.70 1/1/20 3,500,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
ILLINOIS (continued)
$ 2,100,000 ILLINOIS HFA RV ADVOCATE
HEALTH CARE++ 5.60% 8/15/22 $ 2,100,000
1,935,000 ILLINOIS STATE GO 4.75 10/2/00 1,935,001
1,600,000 NORTH AURORA IL IDA OBERWEIS
DAIRY INCORPORATED PROJECT++ 5.67 2/1/10 1,600,000
23,336,494
------------
INDIANA - 7.90%
7,600,000 INDIANA HFFA RV SERIES 271
MBIA INSURED++ 5.77 11/1/19 7,600,000
2,750,000 INDIANA SECONDARY MARKET
EDUCATIONAL LOANS INCORPORATED
EDUCATIONAL LOAN RV SERIES B
AMBAC INSURED++ 5.50 12/1/14 2,750,000
13,200,000 INDIANA HFFA RV ASCENSION
HEALTH CREDIT SERIES B++ 5.75 11/15/39 13,200,000
23,550,000
------------
IOWA - 3.37%
3,500,000 IOWA FINANCE AUTHORITY SFMR
SERIES N++ 4.40 3/15/01 3,500,000
3,000,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION RV LORAS
COLLEGE PROJECT SERIES F US
BANCORP LOC 5.50 5/24/01 3,009,154
1,000,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION RV TAX &
REVENUE ANTICIPATION NOTES
MERCY COLLEGE PROJECT
SERIES J 5.25 5/24/01 1,004,001
2,500,000 IOWA SCHOOL CORPORATION
EDUCATIONAL FACILITIES RV
WARRANTS CERTIFICATES IOWA
SCHOOL CASH ANTICIPATION
PROGRAM SERIES A 5.50 6/22/01 2,517,400
10,030,555
------------
KENTUCKY - 0.40%
1,200,000 KENTUCKY ASSET/LIABILITY
COMMISSION GENERAL FUND RV 5.25 6/27/01 1,205,982
------------
LOUISIANA - 2.33%
2,065,000 CALCASIEU PARISH LA SALES TAX
DISTRICT NO. 4 TAX RV ROAD
IMPROVEMENT CREDIT DE FRANCE
LOC++ 5.65 9/1/01 2,065,000
2,400,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV
WILLIS-KNIGHTON MEDICAL CENTER
AMBAC INSURED++ 5.40 9/1/27 2,400,000
1,385,000 LOUISIANA STATE HEALTH &
EDUCATIONAL AUTHORITY REVENUE
SERIES B++ 5.66 10/1/17 1,385,000
1,100,000 ST. CHARLES PARISH LA PCR
SHELL OIL COMPANY NORCO
PROJECT++ 5.70 9/1/23 1,100,000
6,950,000
------------
MAINE - 0.68%
2,025,000 MAINE HEALTH & HIGHER
EDUCATIONAL FACILITIES
AUTHORITY REVENUE VHA NEW
ENGLAND INCORPORATED SERIES E
AMBAC INSURED++ 5.70 12/1/25 2,025,000
------------
MARYLAND - 0.50%
1,500,000 HOWARD COUNTY MD MFHR SHERWOOD
CROSSING LIMITED PROJECT
GUARDIAN SAVINGS & LOAN LOC 4.85 6/1/01 1,500,000
------------
MASSACHUSETTS - 1.18%
3,500,000 MASSACHUSETTS STATE RV BOND
ANTICIPATION NOTES SERIES A 5.00 9/6/01 3,521,804
------------
MICHIGAN - 0.84%
1,500,000 MICHIGAN STATE BUILDING
AUTHORITY RV FACILITIES
PROJECT SERIES II 5.00 10/15/00 1,500,597
1,000,000 MICHIGAN STATE BUILDING
AUTHORITY RV FACILITIES
PROJECT SERIES I AMBAC INSURED 4.00 10/2/00 1,000,000
2,500,597
------------
</TABLE>
15
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
MINNESOTA - 8.62%
$ 1,195,000 BURNSVILLE MN MFHR BERKSHIRE
PROJECT SERIES A U.S. BANK
TRUST N.A. LOC++ 5.65% 7/15/30 $ 1,195,000
2,100,000 DULUTH MN ECONOMIC DEVELOPMENT
AGENCY HEALTH CARE FACILITIES
RV MILLER DWAN MEDICAL CENTER
PROJECT CREDIT LOCAL DE FRANCE
LOC++ 5.65 6/1/19 2,100,000
2,680,000 DULUTH MN TAX INCREMENT RV
LAKE SUPERIOR PAPER PROJECT
WACHOVIA BANK GEORGIA LOC++ 5.40 9/1/10 2,680,000
6,200,000 MANKATO MN MFHR HIGHLAND HILLS
PROJECT++ 5.95 5/1/27 6,200,000
1,885,000 MANKATO MN MFHR HIGHLAND HILLS
PROJECT++ 5.95 5/3/27 1,885,000
950,000 MINNEAPOLIS MN PA 711++ 5.62 3/1/10 950,000
6,500,000 MINNESOTA SCHOOL DISTRICTS TAX
ANTICIPATION CERTIFICATE
INDEBENTURE SERIES A 4.25 2/28/01 6,501,194
1,500,000 MINNESOTA STATE RV SERIES A 5.00 6/30/01 1,507,219
1,000,000 ST PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
REVENUE++ 5.95 3/1/18 1,000,000
1,670,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
UTILITIES RV++ 5.85 12/1/12 1,670,000
25,688,413
------------
MISSISSIPPI - 1.09%
3,250,000 MISSISSIPPI HOME CORPORATION
SFMR++ 5.67 11/1/29 3,250,000
------------
MISSOURI - 4.61%
7,600,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN RV
SERIES A GUARANTEED BY STUDENT
LOANS++ 5.50 12/1/05 7,600,000
2,200,000 MISSOURI ST HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY REVENUE++ 5.65 7/1/35 2,200,000
1,000,000 MISSOURI STATE DEVELOPMENT
LEASE REVENUE++ 5.65 12/1/22 1,000,000
1,625,000 MISSOURI STATE HEALTH &
EDUCATION FACILITIES AUTHORITY
REVENUE SERIES A++ 5.50 11/1/19 1,625,000
1,300,000 MISSOURI STATE HEFA.
EDUCATIONAL FACILITIES RV
SAINT LOUIS UNIVERSITY PROJECT
SERIES B AMERICA N.A. LOC++ 5.70 10/1/24 1,300,000
13,725,000
------------
MONTANA - 1.77%
5,260,000 MONTANA STATE BOARD OF
INVESTMENTS MUNICIPAL FINANCE
CONSTRUCTION INTERCAP PROGRAM
RV 4.35 3/1/01 5,260,000
------------
NEW HAMPSHIRE - 1.46%
4,345,000 NEW HAMPSHIRE HIGHER
EDUCATION & HEALTH FACILITIES
AUTHORITY REVENUE
SERIES SG-19++ 5.67 6/1/23 4,345,000
------------
NEW YORK - 2.33%
5,110,000 IBM TAX EXEMPT GRANTOR++ 5.77 3/14/06 5,110,000
800,000 LONG ISLAND POWER AUTHORITY NY
ELECTRIC SYSTEM RV FRN PA
586++ 5.72 12/1/29 800,000
1,000,000 NEW YORK STATE URBAN
DEVELOPMENT RV 7.63 1/1/01 1,027,776
6,937,776
------------
OKLAHOMA - 0.40%
1,200,000 MUSKOGEE OK INDUSTRIAL
POLLUTION OKLAHOMA GAS &
ELECTRIC COMPANY SERIES A++ 5.70 1/1/25 1,200,000
------------
OTHER - 3.53%
3,800,000 ABN AMRO LEASETOPS++ 5.90 8/7/02 3,800,000
6,720,755 PITNEY BOWES CREDIT
CORPORATION LEASETOPS COP
SERIES 1999-2++ 5.95 3/16/05 6,720,755
10,520,755
------------
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
PENNSYLVANIA - 4.17%
$ 8,000,000 ALLEGHENY COUNTY PA GO 8.50% 2/15/01 $ 8,123,856
1,000,000 QUAKERTOWN PA GENERAL
AUTHORITY RV POOLED FINANCING
PROGRAM SERIES A PNC BANK
LOC++ 4.35 6/1/28 1,000,000
3,300,000 QUAKERTOWN PA HOSPITAL
AUTHORITY REVENUE++ 4.35 7/1/05 3,300,000
12,423,856
------------
SOUTH CAROLINA - 5.42%
5,000,000 FLORENCE COUNTY SC HOSPITAL RV
MCLEOD REGIONAL MEDICAL CENTER
PROJECT FGIC INSURED 6.75 11/1/00 5,109,482
7,200,000 SOUTH CAROLINA JOBS ECONOMIC
DEVELOPMENT AUTHORITY ECONOMIC
DEVELOPMENT RV SERIES 338++ 5.72 12/1/00 7,200,000
3,850,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY REVENUE++ 5.62 1/1/23 3,850,000
16,159,482
------------
TENNESSEE - 3.67%
900,000 CLARKSVILLE TN PUBLIC BUILDING
AUTHORITY REVENUE++ 5.70 7/1/11 900,000
4,000,000 MEMPHIS CITY CENTER TN MFHR PT
1220++ 6.02 11/1/29 4,000,000
6,040,000 PORTLAND TN HEALTH &
EDUCATIONAL FACILITIES BOARD
HOSPITAL RV SERIES 322 FSA
INSURED++ 5.74 11/15/14 6,040,000
10,940,000
------------
TEXAS - 11.36%
1,000,000 AUSTIN TX UTILITIES SYSTEM RV
SERIES G AMBAC INSURED++ 5.62 11/15/11 1,000,000
3,000,000 CALHOUN COUNTY TX SOLID WASTE
DISPOSAL RV FORMOSA PLASTICS
CORPORATION PROJECT++ 5.75 5/1/25 3,000,000
5,000,000 CARROLL TX ISD SCHOOL BUILDING
PSF INSURED 5.00 1/25/01 5,010,829
1,500,000 GULF COAST WASTE DISPOSAL
AUTHORITY TX 5.70 6/1/24 1,500,000
1,500,000 GULF COAST TX WASTE DISPOSAL
AUTHORITY IDR AMOCO OIL
COMPANY PROJECT++ 5.70 8/1/23 1,500,000
2,200,000 HARRIS COUNTY TX HOUSING
FINANCE CORPORATION ARBOR II
LIMITED PROJECT 4.40 10/1/01 2,200,000
645,000 HARRIS COUNTY TX HFR FLOATER
CTFS PROJECT SERIES 357 MBIA
INSURED++ 5.67 7/1/21 645,000
1,500,000 PANHANDLE-PLAINS TX HIGHER
EDUCATION AUTHORITY
INCORPORATED STUDENT LOAN
REVENUE SERIES B++ 5.50 6/1/21 1,500,000
1,000,000 PANHANDLE-PLAINS TX HIGHER
EDUCATIONAL AUTHORITY
INCORPORATED STUDENT LOAN
REVENUE SERIES B++ 5.50 6/1/23 1,000,000
1,000,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY INCORPORATED
REVENUE++ 5.50 12/1/03 1,000,000
5,950,000 TEXAS STATE DEPARTMENT OF
HOUSING & COMMUNITY AFFAIRS
MFHR 5.82 12/1/39 5,950,000
2,500,000 TEXAS STATE SERIES D++ 5.65 8/31/01 2,500,000
5,000,000 TEXAS STATE TRAN SERIES A 5.25 8/31/01 5,040,823
2,000,000 TRAVIS COUNTY TX HEALTH
FACILITIES DEVELOPMENT
CORPORATION RV SERIES 4 AMBAC
INSURED++ 5.65 11/15/24 2,000,000
33,846,652
------------
UTAH - 2.69%
1,100,000 SALT LAKE CITY UT GO++ 5.55 1/1/20 1,100,000
6,900,000 UTAH STATE BOARD REGENTS
STUDENT LOAN RV SERIES L AMBAC
INSURED++ 5.50 11/1/25 6,900,000
8,000,000
------------
WASHINGTON - 8.30%
2,500,000 LAKE TAPPS PARKWAY WA++ 5.50 12/1/19 2,500,000
7,000,000 WASHINGTON STATE EDA RV
INDUSTRIAL DEVELOPMENT CANAM
STEEL PROJECT SERIES D++ 5.75 9/30/30 7,000,000
</TABLE>
17
<PAGE>
MONEY MARKET TRUSTS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
WASHINGTON (continued)
$ 2,300,000 WASHINGTON STATE HOUSING
FINANCE COMMISSION MFHR CANYON
LAKES II PROJECT U.S. BANK OF
WASHINGTON LOC++ 5.55% 10/1/19 $ 2,300,000
3,425,000 WASHINGTON STATE HEFA RV MILL
POINTE APARTMENTS PROJECT
SERIES A U.S. BANK TRUST N.A.
LOC++ 5.80 1/1/30 3,425,000
5,000,000 WASHINGTON STATE HOUSING
FINANCE COMMUNITY, SFHR
SERIES 1A-S GNMA/FNMA INSURED 4.20 2/1/01 5,000,000
4,500,000 YAKIMA COUNTY WA PUBLIC
CORPORATION REVENUE VALLEY
PROCESSING PROJECT++ 5.70 2/1/15 4,500,000
24,725,000
------------
WEST VIRGINIA - 1.34%
4,000,000 WEST VIRGINIA HFA RV VHA
MID-ATLANTIC REVENUE PROJECT
SERIES C++ 5.70 12/1/25 4,000,000
------------
WISCONSIN - 2.59%
1,700,000 CARLTON WI PCR WISCONSIN
POWER & LIGHT COMPANY
PROJECT++ 5.65 8/1/15 1,700,000
3,000,000 OCONTO FALLS WI PUBLIC SCHOOL
DISTRICT BOND ANTICIPATION
NOTES STIFEL NICHOLAS &
COMPANY INCORPORATED LOC++ 4.80 4/1/01 3,001,596
3,000,000 WISCONSIN SCHOOL DISTRICTS
SERIES A-1 4.55 9/26/01 3,000,000
7,701,596
------------
298,991,221
TOTAL MUNICIPAL SECURITIES (COST
$298,991,221)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $298,991,221)* 100.33% $298,991,221
OTHER ASSETS AND LIABILITIES, NET (0.33) (979,019)
------- ------------
TOTAL NET ASSETS 100.00% $298,012,202
------- ------------
</TABLE>
++ VARIABLE RATE.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED) 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......................... $ 605,360,738 $ 737,582,517 $ 298,991,221
CASH............................. 374,043 0 160,200
RECEIVABLE FOR DIVIDEND AND
INTEREST AND OTHER
RECEIVABLES.................... 4,115,417 6,210,220 2,479,283
PREPAID EXPENSES AND OTHER
ASSETS......................... 2 1 62
------------------ -------------- ------------------
TOTAL ASSETS....................... 609,850,200 743,792,738 301,630,766
------------------ -------------- ------------------
LIABILITIES
PAYABLE FOR INVESTMENT
PURCHASED...................... 0 0 2,200,269
PAYABLE TO INVESTMENT ADVISOR AND
AFFILIATES..................... 68,584 105,044 27,599
PAYABLE TO OTHER RELATED
PARTIES........................ 47,725 51,202 30,835
ACCRUED EXPENSES AND OTHER
LIABILITIES.................... 326,284 357,602 215,266
DIVIDENDS PAYABLE................ 1,648,439 4,300,705 1,144,595
------------------ -------------- ------------------
TOTAL LIABILITIES.................. 2,091,032 4,814,553 3,618,564
------------------ -------------- ------------------
TOTAL NET ASSETS................... $ 607,759,168 $ 738,978,185 $ 298,012,202
------------------ -------------- ------------------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------------------
PAID-IN CAPITAL.................. $ 607,874,788 $ 738,992,273 $ 298,028,706
UNDISTRIBUTED NET REALIZED GAIN
(LOSS) ON INVESTMENTS.......... (115,620) (14,088) (16,504)
------------------ -------------- ------------------
TOTAL NET ASSETS................... $ 607,759,168 $ 738,978,185 $ 298,012,202
------------------ -------------- ------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
--------------------------------------------------------------------------------------------
NET ASSETS......................... $ 607,759,168 $ 738,978,185 $ 298,012,202
SHARES OUTSTANDING................. 607,874,788 739,069,033 298,028,706
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 SIX MONTHS ENDED
SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET NATIONAL TAX-FREE
MONEY MARKET TRUST TRUST MONEY MARKET TRUST
<S> <C> <C> <C>
------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST......................... $ 10,135,108 $ 23,345,794 $ 6,759,361
------------------ ------------ ------------------
TOTAL INVESTMENT INCOME............ 10,135,108 23,345,794 6,759,361
------------------ ------------ ------------------
EXPENSES
ADMINISTRATION FEES.............. 404,602 531,192 232,146
CUSTODY.......................... 53,947 70,826 30,953
PORTFOLIO ACCOUNTING FEES........ 37,493 60,202 49,525
TRANSFER AGENT................... 21,579 10,624 7,738
LEGAL AND AUDIT FEES............. 20,581 33,463 18,245
REGISTRATION FEES................ 63,796 19,182 56,826
DIRECTORS' FEES.................. 2,664 2,664 2,664
SHAREHOLDER REPORTS.............. 11,916 6,650 7,254
OTHER............................ 8,889 8,804 7,842
------------------ ------------ ------------------
TOTAL EXPENSES..................... 625,467 743,607 413,193
------------------ ------------ ------------------
LESS:
WAIVED FEES AND REIMBURSED
EXPENSES....................... (86,045) (35,413) (103,692)
NET EXPENSES....................... 539,422 708,194 309,501
------------------ ------------ ------------------
NET INVESTMENT INCOME (LOSS)....... 9,595,686 22,637,600 6,449,860
------------------ ------------ ------------------
NET REALIZED GAIN (LOSS) FROM
INVESTMENTS.................... (41,665) 612 (16,688)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... $ 9,554,021 $ 22,638,212 $ 6,433,172
------------------ ------------ ------------------
</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 MARKET TRUST MONEY MARKET TRUST
----------------------------------- -----------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE)
IN NET ASSETS
BEGINNING NET ASSETS............................ $ 540,703,685 $ 549,288,919 $ 713,277,955 $ 471,922,763
OPERATIONS:
NET INVESTMENT INCOME........................... 9,595,686 16,024,660 22,637,600 25,985,483
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS................................... (41,665) (69,906) 612 (14,700)
--------------- --------------- --------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 9,554,021 15,954,754 22,638,212 25,970,783
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME........................... (9,595,686) (16,024,660) (22,637,600) (25,985,483)
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS................................... 0 0 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD....................... 1,869,815,790 1,382,382,308 2,449,120,868 1,811,206,569
REINVESTMENT OF DIVIDENDS....................... 558,489 759,935 82 65,774
COST OF SHARES REDEEMED......................... (1,803,277,131) (1,391,657,571) (2,423,421,332) (1,569,902,451)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS................. 67,097,148 (8,515,328) 25,699,618 241,369,892
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS............. 67,055,483 (8,585,234) 25,700,230 241,355,192
--------------- --------------- --------------- ---------------
NET ASSETS:
----------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS................................. $ 607,759,168 $ 540,703,685 $ 738,978,185 $ 713,277,955
--------------- --------------- --------------- ---------------
<CAPTION>
NATIONAL TAX-FREE
MONEY MARKET TRUST
----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C>
--------------------------------------------------
INCREASE (DECREASE)
IN NET ASSETS
BEGINNING NET ASSETS............................ $ 269,943,349 $ 233,545,538
OPERATIONS:
NET INVESTMENT INCOME........................... 6,449,860 8,067,460
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS................................... (16,688) 360
--------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 6,433,172 8,067,820
--------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME........................... (6,449,860) (8,067,460)
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS................................... 0 (176)
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD....................... 1,615,465,814 575,094,701
REINVESTMENT OF DIVIDENDS....................... 271 348
COST OF SHARES REDEEMED......................... (1,587,380,544) (538,697,422)
--------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS................. 28,085,541 36,397,627
--------------- -------------
--------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS............. 28,068,853 36,397,811
--------------- -------------
NET ASSETS:
--------------------------------------------------
ENDING NET ASSETS................................. $ 298,012,202 $ 269,943,349
--------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21
<PAGE>
MONEY MARKET TRUSTS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING DIVIDENDS
NET ASSET NET FROM NET
VALUE PER INVESTMENT INVESTMENT
SHARE INCOME INCOME
<S> <C> <C> <C>
------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.02 (0.02)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.03 (0.03)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.03 (0.03)
MAY 5, 1997(2) TO
MARCH 31, 1998......... $ 1.00 0.03 (0.03)
MONEY MARKET TRUST(3)
------------------------------------------------------------
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.05 (0.05)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.05 (0.05)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.05 (0.05)
OCTOBER 1, 1996 TO
MARCH 31, 1997(4)...... $ 1.00 0.03 (0.03)
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... $ 1.00 0.05 (0.05)
NATIONAL TAX-FREE MONEY MARKET TRUST
------------------------------------------------------------
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.02 (0.02)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.03 (0.03)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.03 (0.03)
NOVEMBER 10, 1997(2) TO
MARCH 31, 1998......... $ 1.00 0.01 (0.01)
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(2) 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
NET ASSET ---------------------------------------- NET ASSETS AT
VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
SHARE INCOME EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET TRUST
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 3.56% 0.20% 0.23% 1.79% $ 607,759
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 2.89% 0.20% 0.67% 2.93% $ 540,704
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 2.91% 0.20% 0.91% 2.93% $ 549,289
MAY 5, 1997(2) TO
MARCH 31, 1998......... $ 1.00 3.18% 0.20% 0.85% 2.94% $ 636,441
MONEY MARKET TRUST(3)
----------------------------------------------------------------------------------------------------------
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 6.39% 0.20% 0.21% 3.23% $ 738,978
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 5.35% 0.20% 0.48% 5.43% $ 713,278
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 5.20% 0.20% 0.61% 5.35% $ 471,923
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 5.46% 0.20% 0.61% 5.62% $ 630,770
OCTOBER 1, 1996 TO
MARCH 31, 1997(4)...... $ 1.00 5.28% 0.20% 0.61% 2.66% $ 807,003
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... $ 1.00 5.33% 0.18% 0.55% 5.43% $ 1,143,767
NATIONAL TAX-FREE MONEY MARKET TRUST
----------------------------------------------------------------------------------------------------------
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 4.17% 0.20% 0.27% 2.10% $ 298,012
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 3.27% 0.20% 0.52% 3.30% $ 269,943
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 3.09% 0.20% 0.68% 3.16% $ 233,546
NOVEMBER 10, 1997(2) TO
MARCH 31, 1998......... $ 1.00 3.32% 0.20% 0.63% 1.30% $ 229,447
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(2) 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>
MONEY MARKET TRUSTS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 65 separate series. These financial
statements present the Money Market 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").
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.
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.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET TRUSTS
--------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at
September 30, 2000.
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Fund Year Expires Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET TRUST 2005 $ 6,489
2006 8,418
2007 51,335
2008 7,713
MONEY MARKET TRUST 2008 14,700
</TABLE>
3. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB provides administrative services to the Trust and is
entitled to receive monthly fees at the annual rate of 0.15% of each Fund's
average daily net assets.
4. 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.
5. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. In addition, the Trust has entered into a contract on
behalf of the Funds with Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly
Norwest Bank Minnesota, N.A., whereby WFB MN is responsible for providing
custody services for the Funds. Pursuant to the contract, WFB MN is entitled
to certain transaction charges plus a monthly fee for custody services at the
annual rate of 0.02% of the average daily net assets of each Fund. Certain
officers of the Trust were also officers of Stephens for a portion of the
period. As of September 30, 2000, Stephens owned 10 shares of the California
Tax-Free Money Market Trust and 27 shares of the Money Market Trust.
6. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended September 30, 2000, were waived by WFB.
7. REORGANIZATION
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective at the close of
business November 5, 1999, the three Stagecoach Funds below were consolidated
into the Wells Fargo Funds Trust through a tax-free exchange of shares as
follows:
<TABLE>
<CAPTION>
Stagecoach Fund Wells Fargo Fund
<S> <C>
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
25
<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>
26
<PAGE>
More information about Wells Fargo Funds is available free upon request. To
obtain literature, please write, fax or e-mail to:
Wells Fargo Funds
P.O. Box 8266
Boston, MA 02266-8266
Fax: 1-415-977-9301
E-mail: [email protected]
Or, call the WELLS FARGO FUNDS Sales & Service Desk at 1-800-552-9612.
Wells Fargo Bank, N.A. and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo
Funds. The Funds are distributed by STEPHENS INC., Member NYSE/SIPC. Wells
Fargo Bank, N.A. and its affiliates are not affiliated with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If
this report is used for promotional purposes, distribution of the report
must be accompanied or preceded by a current prospectus. For a prospectus
containing more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send
money.
[LOGO]
P.O. Box 8266
Boston, MA 02266-8266
DATED MATERIAL
PLEASE EXPEDITE
[RECYCLED LOGO] SAR 010 (11/00)
