<PAGE>
[WELLS FARGO FUNDS LOGO]
SEMI-ANNUAL REPORT
MONEY MARKET FUNDS
September 30, 2000
CALIFORNIA TAX-FREE MONEY MARKET FUND
GOVERNMENT MONEY MARKET FUND
MINNESOTA MONEY MARKET FUND
MONEY MARKET FUND
NATIONAL TAX-FREE MONEY MARKET FUND
100% TREASURY MONEY MARKET FUND
TREASURY PLUS MONEY MARKET FUND
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS
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CALIFORNIA TAX-FREE MONEY MARKET FUND........................................2
GOVERNMENT MONEY MARKET FUND.................................................4
MINNESOTA MONEY MARKET FUND..................................................6
MONEY MARKET FUND............................................................8
NATIONAL TAX-FREE MONEY MARKET FUND.........................................10
100% TREASURY MONEY MARKET FUND.............................................12
TREASURY PLUS MONEY MARKET FUND.............................................14
PORTFOLIO OF INVESTMENTS
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CALIFORNIA TAX-FREE MONEY MARKET FUND.......................................16
GOVERNMENT MONEY MARKET FUND................................................23
MINNESOTA MONEY MARKET FUND.................................................25
MONEY MARKET FUND...........................................................27
NATIONAL TAX-FREE MONEY MARKET FUND.........................................31
100% TREASURY MONEY MARKET FUND.............................................38
TREASURY PLUS MONEY MARKET FUND.............................................39
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................40
STATEMENTS OF OPERATIONS....................................................42
STATEMENTS OF CHANGES IN NET ASSETS.........................................44
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS................................48
FINANCIAL HIGHLIGHTS........................................................50
NOTES TO FINANCIAL HIGHLIGHTS.................................................52
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NOTES TO FINANCIAL STATEMENTS.................................................53
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LIST OF ABBREVIATIONS.........................................................57
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
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MONEY MARKET FUNDS
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DEAR VALUED SHAREHOLDER,
For investors, the six-month period ended September 30, 2000, was a time
characterized by market volatility. The market included a significant downturn
in technology stocks and attractive gains posted by bonds. In all, rapidly
changing markets reinforced the importance of diversified portfolios of
stocks, bonds and cash to help investors earn more balanced returns in
difficult times.
For stocks, April was the cruelest month. Against a backdrop of ongoing
interest rate hikes and their potential impact on corporate earnings, both the
Dow Jones Industrial Average (the Dow) and the Nasdaq Composite Index (Nasdaq)
went into a tailspin, with the Nasdaq plummeting 25% over five days. Although
the Nasdaq would flounder throughout the remainder of the period, the Dow
staged an impressive August rally -- only to surrender its gains one month
later due to concerns over corporate earnings.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Rising interest rates reflected the Federal Reserve Board's (the Fed) desire
to engineer an economic slowdown and to gradually drain speculative excess out
of the stock market. The interest rate increases, including an aggressive
half-point increase on May 16, 2000, which ultimately achieved the desired
affect. The rising interest rates benefited investors by boosting yields on
shorter-term securities within money market portfolios. U.S. Government
Treasury securities performed well during the second quarter and asset-and
mortgage-backed securities, plus U.S. Government agency securities, assumed a
leadership role in recent months.
Wells Fargo Money Market Funds, which maintained their $1.00 per share price
throughout this volatile period, continue to meet the investor demand for
safety, stability and liquidity.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
--------------------------------------------------------------------------------
Regardless of how financial markets have performed over recent months, Wells
Fargo Funds continue to encourage investors to think long-term. Wells Fargo
Funds continue to stress the importance of a diversified portfolio, a
portfolio that can capitalize on market opportunities while shielding investor
holdings against a downturn in any one sector. Wells Fargo Funds offers an
array of 65 mutual funds designed to meet an investor's risk tolerance and
long-term goals. Thank you for investing in Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
1
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo California Tax-Free Money Market Fund (the Fund) seeks to
obtain a high level of income exempt from federal income tax and California
personal income tax, while preserving capital and liquidity, by investing in
high quality, short-term, U.S. dollar denominated money market instruments,
primarily municipal obligations.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Kevin Shaughnessy
Dave Sylvester
Mary Gail Walton
INCEPTION DATE
01/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 1.60%(1) for the six-month period ended
September 30, 2000. The Fund underperformed its benchmark, the 90-Day Treasury
Bill(2), which returned 3.05%. The Fund also slightly underperformed the
iMoneyNet All State Specific California Money Fund Average(3) which returned
1.61%. The Fund's Class A shares distributed $0.02 per share in dividend
income and no capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
The second quarter was a period of rising interest rates, fueled by
investors' perceptions of stronger economic growth and higher inflation. The
Federal Reserve Open Market Committee upheld that view when it raised the
Federal Funds' target level to 6.5% at its May meeting. Higher interest rates
are also fairly characteristic of second quarters, a reflection of large cash
outflows from money market funds to pay income taxes. This scenario presented
the Fund with the opportunity to increase exposure to longer maturity notes at
attractive yields.
However, as the third quarter got underway, investors' expectations for
additional rate increases were diminished, as economic reports indicated that
the economy was slowing. Although rises in oil prices raised the expectation
of inflation, the overall direction of the money markets was stable to
downward.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The State of California received higher than anticipated tax payments this
year, resulting in fewer note issuances and significant supply & demand
imbalances. For most of the period, this lack of new issues has kept the
long-term yield curve steep as far out as nine months. These events will
propel the Fund to take advantage of investment opportunities in the nine to
12-month maturity range, while continuing to provide ample liquidity reserves
for shareholders.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 1.60 2.92 2.75 2.65
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.73(4)
IMONEYNET ALL STATE SPECIFIC
CALIFORNIA MONEY FUND
AVERAGE 1.61 2.95 3.04 2.72(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.53%
7-DAY COMPOUND YIELD 3.59%
30-DAY SIMPLE YIELD 3.11%
30-DAY COMPOUND YIELD 3.16%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 44 DAYS
NUMBER OF HOLDINGS 290
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 71%
Municipal Commercial Paper 16%
Municipal Notes 9%
Municipal Bonds 3%
Municipal Put Bonds 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 72%
15-29 days 4%
30-59 days 8%
60-89 days 2%
90-179 days 3%
180-269 days 1%
270+ days 10%
</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 Class A shares of the Wells Fargo California
Tax-Free Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Class A shares of the Stagecoach California Tax-Free Money
Market Fund, its predecessor fund. Effective at the close of business November
5, 1999, the Stagecoach and Norwest Advantage Funds were reorganized into the
Wells Fargo Funds.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet All State Specific California Money Fund Average is an
average of California retail state tax-free and municipal money funds.
(4) The published return closest to Fund's inception date of 01/01/92.
(5) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Government Money Market Fund (the Fund) seeks to provide high
current income consistent with preservation of capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/16/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 2.87%(1) for the six-month period ended
September 30, 2000. The Fund underperformed its benchmark, the 90-Day Treasury
Bill(2), which returned 3.05%. However, the Fund only slightly outperformed
its peer group, the iMoneyNet Government Retail Money Fund Average
(iMoneyNet)(3) which returned 2.84%. The Fund's Class A shares distributed
$0.03 per share in dividend income and no capital gains during the period.
Please keep in mind that past performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
To take advantage of higher returns in repurchase agreements, maturing
securities were reinvested in repurchase agreements, thereby boosting the
Fund's overall yield. Once the Fund's overnight limit in repurchase agreements
was reached, longer-term securities in the six-month to one-year maturity
range were purchased. By the end of the period, the average maturity of the
Fund was 60 days, compared to 45 days on June 30, 2000.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The second and third quarters were characterized by contrasting money market
climates. While interest rates rose and economic growth was strong in the
second quarter, the third quarter saw a slowdown in economic expansion, a
stronger rate of money growth and accelerated pay-downs of U.S. Treasury debt.
In light of these events, the Fund is preparing for a probable soft landing of
the U.S. economy, and will manage holdings in anticipation of a stable to
declining interest rate market. However, if unexpected economic events alter
this scenario, the Fund remains positioned to perform well in any interest
rate market.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 2.87 5.43 4.88 4.52
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET GOVERNMENT RETAIL
MONEY FUND AVERAGE 2.84 5.34 4.87 4.52
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.89%
7-DAY COMPOUND YIELD 6.07%
30-DAY SIMPLE YIELD 5.83%
30-DAY COMPOUND YIELD 5.99%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 60 DAYS
NUMBER OF HOLDINGS 37
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Repurchase Agreements 55%
FNMA 16%
FHLMC 15%
FHLB 13%
SLMA 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 57%
15-29 days 2%
30-59 days 5%
60-89 days 10%
90-179 days 18%
180-269 days 4%
270+ days 4%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns fluctuate. The Fund's yield figures more closely
reflect the current earnings of the fund than the total return figures. The
Fund's manager has voluntarily waived all or a portion of its management fees or
assumed responsibility for other expenses, which reduces operating expenses and
increases total return to shareholders. Without these reductions the Fund's
returns would have been lower. These reductions may be discontinued at any time
after November 2000.
Performance shown for the Class A shares of the Wells Fargo Government Money
Market Fund for periods prior to November 8, 1999, reflects performance of the
Service Class (formerly single class) shares, adjusted for expenses, of the
Norwest Advantage U. S. Government Fund (the accounting survivor of a merger of
the Norwest Advantage U.S. Government Fund and the Stagecoach Government Money
Market Fund), its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach and Norwest Advantage Funds were reorganized
into the Wells Fargo Funds.
(2) Treasury Bills are guaranteed by the U. S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet Government Retail Money Fund Average is an average of all
government retail funds.
(4) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
MINNESOTA MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Minnesota Money Market Fund (the Fund) seeks to provide
investors with high current income exempt from federal income taxes and
Minnesota state income tax, while preserving capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGER
Mary Gail Walton
INCEPTION DATE
8/14/00
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund was opened on August 14, 2000. The Fund returned 0.47%(1) for the
period ended September 30, 2000. The Fund underperformed its benchmark, the
90-Day Treasury Bill(2), which returned 0.50% for the one-month period. The
Fund outperformed its peer group, the iMoneyNet All State Specific Minnesota
Retail Money Fund Average(3) which returned 0.30% for the one-month period.
The Fund distributed $0.01 per share in dividend income and no capital gains
during the period.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
The Fund is well positioned in state tax exempt funds, with only one other
competitive Minnesota fund also offering the double exemption feature. The
current performance reflects the Fund's initial investments only. At the close
of the period, the Fund had not yet had the opportunity to shift portfolio mix
in response to rapidly changing events in U.S. money markets.
The Fund has, however, laid out its core strategy for the future. It expects
interest rates to be stable in the near term, but the Fund is positioning its
holdings in anticipation of a probable falling interest rate market. The Fund
anticipates making investments in the nine to 12-month range as market
opportunities emerge.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund expects to at least match the performance of its benchmark, as well
as that of its sole competitor in the Minnesota tax exempt market. However,
the Fund believes it will likely exceed its peer group's performance in any
interest rate climate because of the value criteria it uses in the selection
of individual investments.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1-Month
<S> <C>
CLASS A 0.30
BENCHMARK
90-DAY TREASURY BILL 0.50
IMONEYNET ALL STATE SPECIFIC MINNESOTA RETAIL
MONEY FUND AVERAGE 0.30
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 4.24%
7-DAY COMPOUND YIELD 4.33%
30-DAY SIMPLE YIELD 3.63%
30-DAY COMPOUND YIELD 3.69%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 60 DAYS
NUMBER OF HOLDINGS 33
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 69%
Municipal Notes 15%
Municipal Commercial Paper 8%
Municipal Put Bonds 5%
Municipal Bonds 3%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 77%
90-179 days 7%
180-269 days 4%
270+ days 12%
</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.
(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 All State Specific Minnesota Retail Money Fund Average
consists of only Minnesota retail state tax-free and municipal money funds.
(4) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Money Market Fund (the Fund) seeks to provide investors with a
high level of current income, while preserving capital and liquidity, by
investing in high quality, short-term instruments.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Michael Neitzke
Dave Sylvester
Laurie White
INCEPTION DATE
7/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 2.91%(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 matched its peer group, the
iMoneyNet First Tier Retail Money Fund Average (iMoneyNet)(3) that returned
2.91%. The Fund's Class A shares distributed $0.03 per share in dividend
income and no capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
These objectives were closely followed during the period, as the Fund did not
seek to increase yields. It aimed only to fulfill its tactical goals of
liquidity and stability. Liquidity was kept high in anticipation of possible
shareholder redemptions. This was accomplished by investing funds in shorter
term securities, thereby progressively shortening the average maturity of the
portfolio from 70 days on March 31, 2000, to 55 days on June 30, 2000, to 29
days on September 30, 2000.
In view of the Fund's conservative strategy, its performance, which nearly
matched its benchmarks, was remarkable. Generally, portfolios with shorter
maturity structures would be expected to perform best in a rising interest
rate market. Its relatively favorable return 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 opportunistically seek investments
along the yield curve, but will only reinvest when superior quality issues
emerge. The Fund is committed to a value orientation in investment selection,
which will allow it to perform well in 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.
8
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 2.91 5.54 4.98 4.47
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.78(4)
IMONEYNET FIRST TIER RETAIL
MONEY FUND AVERAGE 2.91 5.52 5.00 4.47(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.90%
7-DAY COMPOUND YIELD 6.07%
30-DAY SIMPLE YIELD 5.86%
30-DAY COMPOUND YIELD 6.02%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AVERAGE MATURITY 29 DAYS
NUMBER OF HOLDINGS 127
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 43%
Time Deposits 23%
Repurchase Agreements 12%
Corporate Bonds 10%
Floating/Variable Rate Bonds/Notes 7%
Certificates of Deposits 5%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 64%
15-29 days 14%
30-59 days 7%
60-89 days 4%
90-179 days 9%
180-269 days 2%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Class A shares of the Wells Fargo Money Market Fund
for the periods prior to November 8, 1999, reflects performance of the Class A
shares of the Stagecoach Money Market Fund (the accounting survivor of a merger
of the Norwest Advantage Ready Cash Investment Fund, the Stagecoach Prime Money
Market Fund and the Stagecoach Money Market Fund), its predecessor funds.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet First Tier Retail Money Fund Average is an average of
non-government retail funds that do not hold any second tier securities.
Portfolio holdings of First Tier funds include U.S. Treasury Securities, U.S.
other securities, repos, time deposits, domestic bank obligations, foreign bank
obligations, first tier commercial paper, floating rate notes and asset-backed
commercial paper.
(4) The published return closest to Fund's inception date of 7/01/92.
(5) Portfolio holdings are subject to change.
9
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Money Market Fund (the Fund) seeks to
provide investors with high current income exempt from federal income taxes
consistent with preservation of capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Kevin Shaughnessy
Mary Gail Walton
INCEPTION DATE
01/07/88
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 1.87%(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
All Tax-Free Average (iMoneyNet)(3) which returned 1.82%. The Fund's Class A
shares distributed $0.02 per share in dividend income and no capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria utilized in investment decisions,
allow the Fund to focus on long-term trends. Short-term volatility in interest
rates does not heavily influence the management of the Fund.
During the second quarter, maturing securities were reinvested at higher
yields, thereby boosting the Fund's overall yield. As longer-term securities
had higher yields than shorter-term securities, the Fund 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. The Fund maintained a longer average maturity
structure than 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-governmental 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.
10
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 1.87 3.38 3.10 3.06
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET ALL TAX-FREE MONEY
FUND AVERAGE 1.82 3.35 3.04 3.02
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 4.29%
7-DAY COMPOUND YIELD 4.38%
30-DAY SIMPLE YIELD 3.74%
30-DAY COMPOUND YIELD 3.80%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 57 DAYS
NUMBER OF HOLDINGS 135
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 67%
Municipal Notes 16%
Municipal Put Bonds 11%
Municipal Commercial Paper 5%
Municipal Bonds 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 72%
15-29 days 3%
60-89 days 1%
90-179 days 12%
180-269 days 4%
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 Class A shares of the Wells Fargo National Tax-Free
Money Market Fund for the periods prior to November 8, 1999, reflects
performance of the Class A (formerly Investor Class) shares of the Norwest
Advantage Municipal Money Market Fund (the accounting survivor of a merger of
the Norwest Municipal Money Market Fund and the Stagecoach National Tax-Free
Money Market Fund), its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach and Norwest Advantage Funds were reorganized
into the Wells Fargo Funds.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and a fixed principal value.
(3) The iMoneyNet All Tax-Free Fund Average includes all tax-free and municipal
retail and institutional money funds. It is made up of funds in the National
Tax-Free Retail, National Tax-Free Institutional, State-Specific Retail and
State-Specific Institutional categories.
(4) Portfolio holdings are subject to change.
11
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo 100% Treasury Money Market Fund (the Fund) seeks stability of
principal and current income that is exempt from most state and local personal
income taxes.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
12/03/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 2.72%(1) for the six-month period ended
September 30, 2000. The Fund underperformed its benchmark, the 90-Day Treasury
Bill(2), which returned 3.05%. The Fund slightly outperformed its peer group,
the iMoneyNet Treasury Retail Fund Average (iMoneyNet)(3) which returned
2.70%. The Fund's Class A shares distributed $0.03 per share in dividend
income and no capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
Throughout the period, repurchase agreements offered investors a higher
return than any U.S. Treasury security available to money market funds. Two
cash management bills issued by the U.S. Treasury in August managed to push
yields out to six months. The U. S. Government agency securities curve
flattened substantially over the period, with one-year agency yields declining
by more than 15 basis points in September, while short-term yields rose
slightly. The U. S. Treasury curve also flattened, with the short end rising
and the long end falling.
The Fund was able to take advantage of these market events by reinvesting
maturing securities in repurchase agreements, thereby boosting its overall
yield. Once the Fund's overnight limit was reached in repurchase agreements,
the Fund then purchased term securities in the six-month to one-year range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
On a valuation basis, current yields look attractive. The annual inflation
rate is 2.4%. With an historical premium above core inflation of 2.5% to 3%,
long-term U. S. Treasury yields should be 5% to 5.5%. Yet U. S. Treasury
yields are currently above those levels. If the projected economic slowdown
lowers inflation to 1.5%, then prospects appear strong for declining U. S.
Treasury yields. The Fund expects interest rates to remain stable or fall in
the coming months, as the economy enters a new era of slower economic growth.
The Fund is well positioned to maintain a stable $1.00 per share valuation in
any interest rate market.
12
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 2.72 5.14 4.69 4.34
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.83(4)
IMONEYNET TREASURY RETAIL
MONEY FUND AVERAGE(3) 2.70 5.09 4.71 N/A
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.55%
7-DAY COMPOUND YIELD 5.70%
30-DAY SIMPLE YIELD 5.62%
30-DAY COMPOUND YIELD 5.76%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE COUPON 57 DAYS
NUMBER OF HOLDINGS 21
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Bills 73%
U.S. Treasury Notes 27%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 14%
15-29 days 4%
30-59 days 45%
60-89 days 21%
90-179 days 16%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Class A shares of the Wells Fargo 100% Treasury
Money Market Fund for periods prior to November 8, 1999 reflects performance of
the Service Class (formerly Single Class) shares, adjusted for expenses, of the
Norwest Advantage Treasury Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Norwest Advantage Fund was reorganized into the
Wells Fargo Fund.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet Treasury Retail Money Fund Average includes only retail funds
that hold 100% in U.S. Treasury Securities.
(4) The published return closest to Fund's inception date of 12/03/90.
(5) Portfolio holdings are subject to change.
13
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND -- CLASS A
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Treasury Plus Money Market Fund (the Fund) seeks to provide
investors with current income and stability of principal by investing only in
obligations issued or guaranteed by the U.S. Treasury and in notes and other
instruments, including repurchase agreements, collateralized or secured by
such obligations, which have remaining maturities not exceeding 397 days (13
months).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
10/01/85
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 2.82%(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 slightly outperformed its
peer group, the iMoneyNet Treasury & Repo Retail Money Fund Average
(iMoneyNet)(3) which returned 2.81%. The Fund's Class A shares distributed
$0.03 per share in dividend income and no capital gains during the period.
Please keep in mind that past performance is no guarantee of future results.
The Fund seeks to insure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Fund.
Rising interest rates and strong economic growth were seen in the second
quarter. However, the economic climate shifted dramatically in the third
quarter, as the impact of the April and May stock market correction
reverberated in the money markets. Throughout the third quarter, signs of an
economic slowdown were evident. When the Federal Reserve Board failed to raise
interest rates at its August meeting, investors' perception of a
stable-to-declining interest rate market was solidified.
The Fund pursued a strategy of reinvesting funds in longer-term securities,
thereby lengthening the average maturity of the portfolio from 39 days on June
30, 2000, to 45 days by the end of the period. Late in the third quarter, the
Fund reinvested maturing securities in higher yielding repurchase agreements.
Although this did not succeed in bolstering overall yield for the period, an
improved performance from these eleventh hour investments may be seen at a
future date.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund expects stable interest rates to help the economy successfully
navigate a soft landing. The only economic factor which might abort a soft
landing, would be continued spikes in oil prices which could trigger a
recession. Barring this, the outlook looks strong for declines in interest
rates. Overall, the Fund is positioned to perform well in any interest rate
environment and can shift its portfolio mix, if market opportunities warrant
it.
14
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 2.82 5.28 4.92 4.52
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.87
IMONEYNET TREASURY & REPO
RETAIL MONEY FUND AVERAGE 2.81 5.25 4.84 N/A
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.77%
7-DAY COMPOUND YIELD 5.93%
30-DAY SIMPLE YIELD 5.80%
30-DAY COMPOUND YIELD 5.96%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 45 DAYS
NUMBER OF HOLDINGS 18
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Repurchase Agreements 45%
U.S. Treasury Bills 30%
U.S. Treasury Notes 25%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
2-14 days 55%
30-59 days 27%
60-89 days 4%
180+ days 14%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. These reductions may be discontinued
at any time after November 2000.
Performance shown for the Class A shares of the Wells Fargo Treasury Plus
Money Market Fund for the periods prior to November 8, 1999, reflects
performance of the Class A shares of the Stagecoach Treasury Plus Money Market
Fund, its predecessor fund. Effective at the close of business November 5, 1999,
the Stagecoach Funds were reorganized into the Wells Fargo Funds. Performance
shown for the period October 1, 1995, through September 6, 1996, reflects
performance of the Investor shares of the Pacifica Treasury Money Market Fund,
the predecessor portfolio to the Stagecoach Fund. Performance shown for periods
prior to October 1,1995, reflects performance of the Service Class shares of the
predecessor portfolio to the Pacifica Fund.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet Treasury & Repo Retail Money Fund Average is an average of
retail government funds holding U.S. Treasuries and repurchase agreements backed
by the U.S. Treasury.
(4) Portfolio holdings are subject to change.
15
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 84.32%
$ 5,000,000 ABAG FINANCE AUTHORITY
NONPROFIT CORPORATION CA MFHR
HOUSING-GAIA BUILDING PROJECT
SERIES A++ 4.60% 09/15/32 $ 5,000,000
8,176,000 ABN AMRO MUNITOPS 1998-25
MUNITOPS CERTIFICATES ABN AMRO
BANK N.V. LOC++ 5.13 07/05/06 8,176,000
17,995,000 ABN AMRO MUNITOPS COP 1998-20
MUNITOPS CERTIFICATES LOC++ 5.13 07/05/06 17,995,000
17,000,000 ABN AMRO MUNITOPS COP FGIC
INSURED++ 4.00 05/07/08 17,000,000
4,600,000 ABN AMRO MUNITOPS COP
SERIES 199-7++ 5.13 07/04/07 4,600,000
4,895,000 ALAMEDA-CONTRA COSTA CA
SCHOOLS FINANCING AUTHORITY
REVENUE SERIES D++ 2.55 07/01/18 4,895,000
3,520,000 ALAMEDA-CONTRA COSTA CA
SCHOOLS FINANCING AUTHORITY
REVENUE SERIES I++ 2.50 08/01/29 3,520,000
1,700,000 ALHAMBRA CA IDA RV SUNCLIPSE
LOC - BANK OF AMERICA++ 4.10 05/01/07 1,700,000
2,455,000 ANAHEIM CA COP POLICE
FACILITIES++ 4.25 08/01/08 2,455,000
7,600,000 ANAHEIM CA HFA AMT++ 4.45 07/15/20 7,600,000
4,445,000 ANAHEIM CA MFHR MONTEREY
APARTMENTS SERIES B++ 4.45 05/15/27 4,445,000
1,200,000 ANAHEIM CA HOUSING AUTHORITY
MFHR SERIES L++ 4.72 02/15/33 1,200,000
3,000,000 BARSTOW CA MFHR DESERT VISTA
APARTMENTS LOC - FHLB OF SAN
FRANCISCO++ 4.35 12/01/20 3,000,000
11,000,000 BUENA PARK CA MFHR WALDEN GLEN
APARTMENTS SERIES A++ 4.45 02/15/33 11,000,000
16,000,000 BUTTE COUNTY CA OFFICE OF
EDUCATIONAL TAX & REVENUE 4.25 11/16/00 16,011,372
18,000,000 CALIFORNIA COLLEGE FINANCING
AUTHORITY++ 4.00 10/04/01 18,000,000
17,000,000 CALIFORNIA COMMUNITY COLLEGE
CA TAX & REVENUE ANTICIPATION
NOTES SERIES A 5.00 06/29/01 17,091,670
5,495,000 CALIFORNIA HFFA RV COP
SERIES 202++ 4.82 07/01/10 5,495,000
6,365,000 CALIFORNIA HFFA RV PA 587++ 5.02 12/01/34 6,365,000
5,300,000 CALIFORNIA HFFA RV SERIES A++ 4.75 09/01/28 5,300,000
2,300,000 CALIFORNIA HFFA RV SERIES B++ 4.75 09/01/28 2,300,000
6,000,000 CALIFORNIA HFFA RV SERIES C++ 4.60 09/01/15 6,000,000
7,165,000 CALIFORNIA HFFA RV SERIES C++ 4.75 09/01/15 7,165,000
4,800,000 CALIFORNIA HFFA RV MEMORIAL
HEALTH SERVICES++ 4.65 10/01/24 4,800,000
3,000,000 CALIFORNIA HFFA RV SCRIPPS
HEALTH SERIES B++ 4.25 10/01/22 3,000,000
4,900,000 CALIFORNIA HFFA RV SCRIPPS
MEMORIAL HOSPITAL SERIES A++ 4.25 10/01/22 4,900,000
3,800,000 CALIFORNIA HFFA RV SERIES B++ 4.75 07/01/12 3,800,000
2,600,000 CALIFORNIA HFFA RV SERIES B++ 4.60 08/01/21 2,600,000
5,050,000 CALIFORNIA HFA RV FRN PT 215++ 4.60 08/01/16 5,050,000
4,080,000 CALIFORNIA HFA RV FRN PA
112-A++ 4.60 08/01/26 4,080,000
9,800,000 CALIFORNIA HFA RV SERIES M++ 4.45 08/01/19 9,800,000
27,500,000 CALIFORNIA HFA MFHR
SERIES A++ 4.55 02/01/26 27,500,000
950,000 CALIFORNIA HFA MFHR
SERIES B++ 4.50 02/01/31 950,000
3,580,000 CALIFORNIA HFA RV
SERIES 150++ 4.92 02/01/29 3,580,000
6,900,000 CALIFORNIA HFA RV SERIES Q++ 4.45 08/01/20 6,900,000
6,600,000 CALIFORNIA HFA SFHR
SERIES G++ 4.30 02/01/17 6,600,000
15,000,000 CALIFORNIA HFA SFHR SERIES I 4.05 06/01/01 15,000,000
17,000,000 CALIFORNIA HOUSING RV++ 4.25 08/01/01 17,000,000
20,200,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT IDA RV
SERIES A++ 4.40 04/01/08 20,200,000
4,700,000 CALIFORNIA PCR++ 4.70 11/01/26 4,700,000
7,700,000 CALIFORNIA PCR++ 3.70 10/11/00 7,700,000
24,160,000 CALIFORNIA PCR++ 4.52 06/01/14 24,160,000
5,000,000 CALIFORNIA PCR AMT PACIFIC
GAS & ELECTRIC SERIES D++ 4.70 01/01/10 5,000,000
3,800,000 CALIFORNIA PCR AMT PACIFIC
GAS & ELECTRIC SERIES B++ 4.45 12/01/16 3,800,000
7,901,000 CALIFORNIA PCR SERIES E++ 5.00 11/01/26 7,901,000
74,000,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 5.25 07/03/01 74,521,619
2,900,000 CALIFORNIA SCHOOL FACILITIES
FINANCING SERIES A++ 4.65 07/01/22 2,900,000
3,800,000 CALIFORNIA SCHOOL FACILITIES
FINANCING SERIES B++ 4.60 07/01/24 3,800,000
45,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152++ 5.50 11/01/24 45,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 4,955,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152D++ 5.50% 11/01/24 $ 4,955,000
265,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153++ 4.82 11/01/24 265,000
11,675,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153D++ 4.82 11/01/24 11,675,000
7,000,000 CALIFORNIA STATE DEPARTMENT
WATER RESERVE PROJECT
REVENUE++ 3.95 12/01/13 7,000,000
12,000,000 CALIFORNIA STATE DEPARTMENT
WATER RESERVE PROJECT REVENUE
SERIES 127++ 4.77 12/01/22 12,000,000
4,950,000 CALIFORNIA STATE EAGLE TRUST
PRIVATE PLACEMENT++ 4.82 09/01/03 4,950,000
4,720,000 CALIFORNIA STATE FRN
SERIES 607R++ 4.52 12/01/17 4,720,000
5,000,000 CALIFORNIA STATE GO++ 4.60 12/01/18 5,000,000
16,085,000 CALIFORNIA STATE GO++ 4.52 12/01/18 16,085,000
1,345,000 CALIFORNIA STATE GO++ 4.82 12/01/23 1,345,000
4,785,000 CALIFORNIA STATE GO++ 4.15 02/01/18 4,785,000
6,000,000 CALIFORNIA STATE GO++ 4.82 03/01/21 6,000,000
10,000,000 CALIFORNIA STATE GO++ 5.00 10/01/00 10,000,000
2,995,000 CALIFORNIA STATE GO
SERIES 387++ 4.92 01/01/27 2,995,000
14,380,000 CALIFORNIA STATE GO
SERIES A-9++ 5.55 03/01/02 14,380,000
4,000,000 CALIFORNIA STATE PUBLIC WORKS
BOARD++ 4.82 09/01/17 4,000,000
32,000,000 CALIFORNIA STATEWIDE CDA++ 5.52 01/25/31 32,000,000
21,530,000 CALIFORNIA STATEWIDE CDA++ 5.42 10/01/33 21,530,000
4,600,000 CALIFORNIA STATEWIDE CDA++ 4.60 10/01/26 4,600,000
55,580,000 CALIFORNIA STATEWIDE CDA COP++ 4.20 01/25/31 55,580,000
10,000,000 CALIFORNIA STATEWIDE CDA COP
SERIES 176++ 4.82 08/15/27 10,000,000
63,000,000 CALIFORNIA STATEWIDE CDA IDR
SERIES N-6++ 5.50 10/04/01 63,000,000
20,000,000 CALIFORNIA STATEWIDE CDA
SERIES N-7++ 5.50 10/04/01 20,000,000
20,000,000 CALIFORNIA STATEWIDE CDA
SERIES A 5.25 06/29/01 20,138,986
2,500,000 CALIFORNIA STATEWIDE CDA
BARTON HOSPITAL LOC - BANQUE
NATIONALE DE PARIS++ 4.35 12/01/09 2,500,000
100,000 CALIFORNIA STATEWIDE CDA
CONTINUING CARE UNIVERSITY LOC
-BANK OF SCOTLAND++ 4.70 11/15/28 100,000
4,365,000 CALIFORNIA STATEWIDE CDA
MFHR++ 5.42 05/06/30 4,365,000
5,090,000 CALIFORNIA STATEWIDE CDA
MFHR++ 5.42 05/06/30 5,090,000
6,060,000 CALIFORNIA STATEWIDE CDA
MFHR++ 4.77 08/01/36 6,060,000
2,300,000 CALIFORNIA STATEWIDE COMMUNITY
IDA DEL MESA FARMS PROJECT
SERIES A++ 4.40 05/01/19 2,300,000
6,265,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR 4.77 08/01/36 6,265,000
9,405,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR++ 4.77 05/01/36 9,405,000
11,625,000 CALIFORNIA TRAN FINANCING
AUTHORITY++ 2.50 10/01/27 11,625,000
2,895,000 CALIFORNIA EDFA COP
SERIES 147++ 4.62 10/01/27 2,895,000
5,505,000 CALIFORNIA EDFA COP SERIES PA
542++ 4.52 06/01/27 5,505,000
12,080,000 CALIFORNIA EDFA COP
SERIES 11++ 5.12 04/01/28 12,080,000
4,390,000 CALIFORNIA EDFA COP
SERIES L-3++ 4.45 10/01/15 4,390,000
4,300,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT FISH
HOUSE FOODS++ 4.65 09/01/24 4,300,000
1,000,000 CALIFORNIA STATE GO++ 4.52 12/01/13 1,000,000
39,725,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY RV SERIES D++ 5.50 03/01/18 39,725,000
16,420,000 CAMARILLO CA MFHR CALIFORNIA++ 4.45 10/15/26 16,420,000
10,700,000 CHULA VISTA CA IDR SAN DIEGO
GAS & ELECTRIC++ 4.60 12/01/27 10,700,000
500,000 COLTON CA RDFA MFHR LOC - FHLB
OF SAN FRANCISCO++ 3.35 05/01/10 500,000
5,100,000 COLTON CA RDFA LOC - BANK OF
AMERICA 4.30 11/01/15 5,100,000
1,100,000 CONCORD CA MFHR BEL AIR
APARTMENTS LOC - BANK OF
AMERICA++ 4.40 12/01/16 1,100,000
11,395,000 CONTRA COSTA COUNTY CA MFHR
LAKESHORE SERIES C++ 4.30 11/15/17 11,395,000
3,100,000 CONTRA COSTA COUNTY CA MFHR
DELTA SQUARE APARTMENTS
SERIES H++ 4.30 10/15/29 3,100,000
745,000 CONTRA COSTA COUNTY CA MFHR EL
CERRITO ROYALE SERIES A LOC -
BANK OF AMERICA++ 4.40 12/01/17 745,000
6,400,000 CONTRA COSTA COUNTY CA MFHR
SERIES B++ 4.90 11/15/22 6,400,000
</TABLE>
17
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$11,000,000 CALIFORNIA STATE DW&P 3.70% 11/07/00 $ 11,000,000
49,200,000 CALIFORNIA STATE DW&P 4.00 11/08/00 49,200,000
1,900,000 DUARTE CA RDFA COP JOHNSON
DUARTE PARTNERS PROJECT
SERIES B LOC - BANK OF
AMERICA++ 4.30 12/01/14 1,900,000
2,200,000 DUBLIN CA MFHR PARK SIERRA
SERIES A 4.40 06/01/28 2,200,000
11,100,000 EAGLE TAX EXEMPT++ 4.82 09/01/03 11,100,000
10,390,000 EAGLE TRUST PRIVATE
PLACEMENT++ 4.82 02/01/06 10,390,000
4,500,000 EAST BAY CA MUNICIPAL
UTILITIES DISTRICT WATER
SERIES 179++ 4.82 06/01/08 4,500,000
9,800,000 EASTERN MUNICIPAL WATER
DISTRICT CA SERIES B++ 4.40 07/01/20 9,800,000
2,500,000 ELSINORE VALLEY CA MUNICIPAL
WATER DISTRICT SERIES A++ 4.50 07/01/29 2,500,000
4,400,000 ESCONDIDO CA CDA LOC - BANK OF
AMERICA++ 4.40 10/01/16 4,400,000
150,000 FAIRFIELD CA IDA HERMAN G
ROWLAND PROJECT LOC - BANK OF
AMERICA++ 3.40 04/01/05 150,000
900,000 FOWLER CA IDA BEE SWEET CITRUS
LOC - BANK OF AMERICA++ 4.45 12/01/05 900,000
1,900,000 FREMONT CA COP FAMILY RESOURCE
CENTER FINANCING PROJECT++ 2.55 08/01/28 1,900,000
9,000,000 FRESNO COUNTY CA TAX & REVENUE
ANTICIPATION NOTES 5.00 07/02/01 9,049,072
6,800,000 FULLERTON CA IDR SUNCLIPSE
SERIES A LOC - BANK OF
AMERICA++ 4.10 07/01/15 6,800,000
7,150,000 GARDEN GROVE CA MFHR MALABAR
APARTMENTS PROJECT SERIES A
FNMA INSURED++ 4.40 12/15/29 7,150,000
2,500,000 GLENDALE CA COP JAIL
FACILITIES RV POLICE BUILDING
PROJECT MORGAN GUARANTY TRUST
INSURED++ 4.40 06/01/30 2,500,000
900,000 GOLDEN EMPIRE CA SCHOOL
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A++ 4.50 12/01/24 900,000
7,050,000 HAYWARD CA HOUSING AUTHORITY++ 4.85 06/15/25 7,050,000
3,605,000 HUNTINGTON BEACH CA SEABRIDGE
VILLAS SERIES A LOC - BANK OF
AMERICA++ 4.00 02/01/10 3,605,000
1,515,000 IRVINE RANCH CA WATER DISTRICT
LOC - TORONTO DOMINION BANK++ 4.50 06/01/15 1,515,000
100,000 IRVINE CA IMPROVEMENT BOND ACT
1915 ASSESSMENT DISTRICT NO
94-15++ 4.75 09/02/20 100,000
10,200,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
RV CAPITAL IMPROVEMENT
PROJECT++ 4.40 11/01/10 10,200,000
3,405,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
RV CAPITAL IMPROVEMENT
PROJECT++ 4.40 11/01/10 3,405,000
1,500,000 IRVINE CA IDA IRVINE EAST
INVESTMENT COMPANY LOC - BANK
OF AMERICA++ 4.30 12/01/05 1,500,000
4,155,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES B++ 4.50 08/01/06 4,155,000
1,500,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES D++ 4.50 08/01/06 1,500,000
100,000 LANCASTER CA HFA MFHR WESTWOOD
PARK APARTMENTS SERIES K LOC -
BANK OF AMERICA++ 4.30 12/01/07 100,000
8,400,000 LIVERMORE CA MFHR MORTGAGE
PARK-A FNMA INSURED++ 4.50 07/15/18 8,400,000
11,100,000 LOS ANGELES CA MFHR FOUNTAIN
PARK PROJECT SERIES P++ 4.45 04/15/33 11,100,000
2,800,000 LOS ANGELES CA MFHR MASSELIN
MANOR PROJECT LOC - BANK OF
AMERICA++ 4.45 07/01/15 2,800,000
5,000,000 LOS ANGELES CA CDA++ 4.20 04/01/30 5,000,000
25,615,000 LOS ANGELES CA MFHR++ 4.45 03/15/34 25,615,000
8,790,000 LOS ANGELES COUNTY CA HFA++ 4.40 08/01/30 8,790,000
10,000,000 LOS ANGELES COUNTY CA PENSION
OBLIGATION SERIES B AMBAC
INSURED++ 4.25 06/30/07 10,000,000
55,000,000 LOS ANGELES COUNTY CA GO
TAX & REVENUE ANTICIPATION
NOTES SERIES A 5.00 06/29/01 55,333,164
6,900,000 LOS ANGELES COUNTY CA MFHR
SAND CANYON RANCH PROJECT
SERIES F LOC - CITIBANK NA++ 4.00 11/01/06 6,900,000
5,000,000 LOS ANGELES COUNTY CA SCHOOLS
POOL FINANCING PROGRAM COP
SERIES A 5.00 07/02/01 5,026,173
1,750,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 4.25 07/01/12 1,750,000
10,000,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 6.75 07/01/18 10,373,913
11,000,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX SERIES A FGIC
INSURED++ 6.75 07/01/20 11,411,305
3,000,000 LOS ANGELES CA MFHR RENTAL
ACADEMY APARTMENTS SERIES A++ 4.50 10/01/19 3,000,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 900,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE++ 4.52% 08/15/18 $ 900,000
4,300,000 LOS ANGELES CA DW&P
SERIES F++ 4.45 02/01/10 4,300,000
2,000,000 LOS ANGELES CA DW&P
SERIES D++ 4.45 02/01/10 2,000,000
13,160,000 LOS ANGELES CA DW&P
SERIES 144++ 4.82 06/15/29 13,160,000
3,210,000 LOS ANGELES CA SERIES 709++ 4.52 09/01/09 3,210,000
5,000,000 LOS ANGELES CA SERIES N8++ 5.50 06/29/01 5,000,000
19,655,000 LOS ANGELES CA USD GO BONDS
TAX REVENUE ANTICIPATION NOTES
SERIES II-R-35++ 4.82 07/01/21 19,655,000
5,000,000 LOS ANGELES CA USD
SERIES 1179++ 3.95 07/01/19 5,000,000
9,630,000 LOS ANGELES CA USD COP
BELMONT++ 4.35 12/01/17 9,630,000
9,000,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES A++ 4.40 06/01/23 9,000,000
4,750,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA FRN PA
546++ 4.52 07/01/27 4,750,000
9,995,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA COP
SERIES 154++ 4.82 07/01/27 9,995,000
9,700,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES C
LOC - BANK OF AMERICA++ 4.15 07/01/28 9,700,000
7,200,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA
SERIES SG-128++ 4.52 07/01/30 7,200,000
3,170,000 METROPOLITAN WATER DISTRICT++ 4.67 08/05/22 3,170,000
8,000,000 MILPITAS CA MFHR CROSSING AT
MONTAGUE PROJECT SERIES A LOC
-U.S. BANK TRUST++ 4.45 08/15/33 8,000,000
5,100,000 MODESTO CA MFHR WESTDALE
COMMONS APARTMENT SERIES A LOC
-FHLB OF SAN FRANCISCO++ 4.50 12/01/15 5,100,000
2,900,000 MONTEBELLO CA IDA LOC - BANK
OF AMERICA++ 4.10 04/01/15 2,900,000
3,500,000 MONTEREY COUNTY CA FINANCE
AUTHORITY++ 4.45 09/01/36 3,500,000
5,890,000 MORGAN HILL CA USD SERIES SG
145++ 4.52 08/01/25 5,890,000
7,450,000 MODESTO - SAN JUAN - REDDING
PUBLIC POWER AGENCY SERIES A
22 - REGULATION D++ 5.50 07/01/17 7,450,000
5,200,000 MODESTO - SAN JUAN - REDDING
PUBLIC POWER AGENCY
SERIES B++ 4.40 07/01/22 5,200,000
9,300,000 NEWPORT BEACH CA HEALTH HOAG
MEMORIAL PRESBYTERIAN HOSPITAL
SERIES A++ 4.25 12/01/29 9,300,000
10,505,000 NORTHERN CALIFORNIA PUBLIC
POWER SERIES SSP 35A++ 5.00 07/01/28 10,505,000
1,100,000 OAKLAND CA JOINT POWERS
FINANCING AUTHORITY LEASE
SERIES A-1++ 4.35 08/01/21 1,100,000
9,000,000 ONTARIO CA MFHR PARK CENTER
APARTMENTS LOC - ROYAL BANK OF
CANADA SERIES A++ 4.30 08/01/07 9,000,000
5,100,000 ORANGE COUNTY CA TRANSPORTAION
AUTHORITY SALES TAX RV 4.30 02/15/01 5,110,007
6,700,000 ORANGE COUNTY CA HOUSING
AUTORITY OASIS MARTINIQUE
SERIES I++ 4.35 06/15/28 6,700,000
4,200,000 ORANGE COUNTY CA SERIES B++ 4.35 11/01/22 4,200,000
7,249,000 ORANGE COUNTY CA HARBOR POINTE
ISSUE D++ 4.30 12/01/22 7,249,000
9,900,000 ORANGE COUNTY CA HIDDEN HILLS
SERIES C++ 4.65 11/01/09 9,900,000
900,000 ORANGE COUNTY CA NIGUEL SUMMIT
1 SERIES A++ 4.65 11/01/09 900,000
2,700,000 ORANGE COUNTY CA NIGUEL SUMMIT
SERIES B LOC - BANK OF
AMERICA++ 4.30 11/01/09 2,700,000
3,900,000 ORANGE COUNTY CA PARK RIDGE
VILLAS++ 4.30 11/15/28 3,900,000
5,000,000 ORANGE COUNTY CA VILLAS
ALIENTO SERIES E++ 4.20 08/15/28 5,000,000
3,000,000 ORANGE COUNTY CA MFHR POINTE
NIGUEL SERIES C LOC - U.S.
BANK TRUST++ 4.35 11/01/22 3,000,000
28,100,000 ORANGE COUNTY CA MFHR
SERIES A++ 4.30 12/01/06 28,100,000
3,400,000 PORT OAKLAND CA RV SERIES A1
REGULATION D++ 5.55 11/01/22 3,400,000
4,995,000 PORT OAKLAND CA++ 4.60 11/01/17 4,995,000
4,000,000 PORT OAKLAND CA TRANSPORTATION
RV SERIES 5++ 5.12 11/01/12 4,000,000
16,500,000 RIVERSIDE COUNTY CA SFA
SERIES N10++ 5.50 10/19/01 16,500,000
2,245,000 RIVERSIDE COUNTY CA ASSET
LEASING CORPORATION COP
SERIES 148++ 4.82 06/01/16 2,245,000
1,300,000 RIVERSIDE COUNTY CA COP
RIVERSIDE COUNTY PUBLIC
FACILITIES PROJECT SERIES A++ 4.80 12/01/15 1,300,000
1,700,000 RIVERSIDE COUNTY CA COP
SERIES D++ 4.80 12/01/15 1,700,000
10,600,000 SACRAMENTO COUNTY CA
SANITATION DISTRICT FINANCING
AUTHORITY SERIES A LOC - BANK
OF NEW YORK++ 5.07 12/01/19 10,600,000
3,600,000 SACRAMENTO COUNTY CA COP
ADMINISTRATION CENTER &
COURTHOUSE PROJECT LOC - BANK
OF SWITZERLAND++ 2.50 06/01/20 3,600,000
</TABLE>
19
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 6,300,000 SACRAMENTO COUNTY CA MFHR
HIDDEN OAKS APARTMENTS
SERIES C++ 4.45% 05/15/29 $ 6,300,000
5,000,000 SACRAMENTO COUNTY CA MFHR
STONE CREEK APARTMENTS++ 4.30 11/15/27 5,000,000
10,000,000 SACRAMENTO COUNTY CA OFFICE OF
EDUCATION TAX & REVENUE 4.50 01/19/01 10,020,064
3,000,000 SACRAMENTO COUNTY CA TAX &
REVENUE GO 5.00 10/04/01 3,033,618
1,000,000 SACRAMENTO COUNTY CA TAX &
REVENUE 5.25 10/04/01 1,013,397
1,200,000 SACRAMENTO CA MFHR SMOKETREE
PROJECT SERIES A++ 4.40 04/15/10 1,200,000
3,000,000 SALINAS CA MFHR BRENTWOOD
GARDEN SERIES A++ 4.30 05/15/27 3,000,000
1,655,000 SAN BERNARDINO COUNTY CA++ 4.52 03/01/10 1,655,000
1,500,000 SAN BERNARDINO COUNTY CA COP
COUNTY CENTER REFINANCING
PROJECT++ 4.30 07/01/15 1,500,000
5,000,000 SAN BERNARDINO COUNTY CA MFHR
ALTA LOMA APARTMENTS SERIES A
LOC - CALIFORNIA FEDERAL
BANK++ 3.25 02/01/23 5,000,000
2,085,000 SAN BERNARDINO COUNTY CA MFHR
SERIES B++ 5.75 05/01/17 2,085,000
6,115,000 SAN BERNARDINO COUNTY CA MFHR
GREEN VALLEY APARTMENTS
SERIES A++ 4.30 05/15/29 6,115,000
4,725,000 SAN BERNARDINO COUNTY CA MFHR
RIVERSIDE DRIVE APARTMENT
SERIES A LOC - REDLANDS
FEDERAL BANK++ 5.75 05/01/17 4,725,000
3,020,000 SAN DIEGO CA TAX REVENUE
ANTICIPATION NOTES 5.25 10/02/01 3,062,265
4,900,000 SAN DIEGO COUNTY CA COP SAN
PASQUAL ACADEMY++ 4.70 08/01/20 4,900,000
2,600,000 SAN DIEGO COUNTY CA MFHR
COUNTRY HILLS SERIES A++ 4.40 08/15/13 2,600,000
9,700,000 SAN DIEGO COUNTY CA MFHR
SERIES C++ 4.40 04/15/05 9,700,000
2,000,000 SAN DIEGO CA COP++ 4.52 08/01/28 2,000,000
10,915,000 SAN DIEGO CA MFHR LOC -
PAINEWEBBER INCORPORATED++ 4.35 12/01/22 10,915,000
3,500,000 SAN DIEGO CA MFHR LOC - BANK
OF AMERICA++ 3.70 10/01/15 3,500,000
15,000,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY
SERIES SG++ 4.52 05/15/29 15,000,000
30,000,000 SAN FRANCISCO BAY GO 4.00 10/02/00 30,000,000
10,465,000 SAN FRANCISCO CA AIRPORT 3.90 12/05/00 10,465,000
5,750,000 SAN FRANCISCO CA CITY & COUNTY
MFHR++ 4.45 12/01/17 5,750,000
17,410,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT++ 5.05 01/01/27 17,410,000
4,000,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT
SERIES 38A++ 5.05 05/01/24 4,000,000
19,240,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT
SERIES 31++ 4.92 05/01/29 19,240,000
3,000,000 SAN FRANCISCO CA CITY & COUNTY
MFHR FILLMORE CENTER
SERIES A-2 LOC - CREDIT SUISSE
FIRST BOSTON++ 4.45 12/01/17 3,000,000
2,200,000 SAN FRANCISCO CA CITY & COUNTY
MFHR FILLMORE CENTER
SERIES A-1 LOC - CREDIT SUISSE
FIRST BOSTON++ 4.15 12/01/17 2,200,000
4,175,000 SAN FRANCISCO CA CITY & COUNTY
MFHR YERBA BUENA GARDEN LOC -
BANK OF TOKYO MITSUBISHI++ 2.55 09/01/06 4,175,000
2,935,000 SAN JACINTO CA USD SERIES A++ 4.50 09/01/14 2,935,000
3,000,000 SAN JOAQUIN TRANSPORTATION RV 3.65 12/12/00 3,000,000
5,000,000 SAN JOSE CA MFHR++ 4.77 05/01/30 5,000,000
5,000,000 SAN JOSE CA MFHR++ 4.77 05/01/30 5,000,000
1,000,000 SAN JOSE CA MFHR ALMADEN LAKE
VILLAGE APARTMENTS SERIES A
LOC - BANK OF AMERICA++ 4.38 03/01/32 1,000,000
2,200,000 SAN JOSE CA MFHR FAIRWAY GLEN
APARTMENTS SERIES A++ 4.45 11/01/07 2,200,000
6,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY SERIES A++ 2.55 07/01/26 6,000,000
2,200,000 SAN LEANDRO CA MFHR HAAS
AVENUE APARTMENTS SERIES B LOC
-SECURITY PACIFIC NATIONAL++ 4.30 10/01/07 2,200,000
14,645,000 SAN MATEO COUNTY CA JT POWERS
AUTHORITY LEASE SERIES 123 FSA
INSURED++ 4.82 07/15/29 14,645,000
500,000 SANTA CLARA COUNTY CA FINANCE
AUTHORITY LEASE VMC SERIES B
LOC - UNION BANK OF
SWITZERLAND++ 4.45 11/15/25 500,000
14,600,000 SANTA CLARA COUNTY CA MFHR++ 4.40 11/01/07 14,600,000
1,000,000 SANTA CLARA COUNTY CA
TRANSPORTATION++ 2.50 06/01/15 1,000,000
7,100,000 SANTA CLARA COUNTY CA HOSPITAL
DISTRICT FACILITY RV
SERIES A++ 4.90 08/01/15 7,100,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$13,465,000 SANTA CLARA CA ELECTRIC RV
SERIES B++ 4.40% 07/01/10 $ 13,465,000
12,000,000 SANTA CRUZ COUNTY CA TAX RV 4.50 10/06/00 12,001,275
3,000,000 SIMI VALLEY CA MFHR LINCOLN
WOOD RANCH LOC - CREDIT SUISSE
FIRST BOSTON++ 2.55 06/01/10 3,000,000
4,475,000 SIMI VALLEY CA MFHR
SERIES A++ 4.30 07/01/23 4,475,000
2,421,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE REVENUE
SERIES A++ 4.50 12/01/18 2,421,000
5,800,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE RV SERIES B++ 4.55 12/01/18 5,800,000
500,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORTIY SOUTHERN
TRANSMISSION PROJECT
SERIES A++ 4.50 07/01/23 500,000
4,200,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY PALO VERDE
PROJECT SERIES C AMBAC
INSURED++ 4.25 07/01/17 4,200,000
1,000,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY SOUTHERN
TRANSMISSION PROJECT LOC -
SWISS BANK++ 4.25 07/01/19 1,000,000
8,000,000 STANISLAUS CA WASTE-TO-ENERGY
FINANCE AGENCY SOLID WASTE
FACILITY OGDEN MARTIN SYSTEMS
PROJECT++ 2.50 01/01/10 8,000,000
22,875,000 STATE OF CA GO 3.90 10/11/00 22,875,000
7,000,000 STATE OF CA GO 3.55 11/06/00 7,000,000
8,500,000 STATE OF CA GO 3.95 10/06/00 8,500,000
6,300,000 TRACY CA MFHR SYCAMORE VILLAGE
APARTMENTS SERIES A LOC - BANK
OF AMERICA++ 3.45 05/01/15 6,300,000
4,320,000 TURLOCK CA IRRIGATION DISTRICT
SERIES A LOC - CANADIEN
IMPERIAL BANK OF COMMERCE++ 4.40 01/01/14 4,320,000
2,900,000 TURLOCK CA IRRIGATION DISTRICT
COP IRRIGATION PROJECT
SERIES A++ 4.40 01/01/26 2,900,000
3,500,000 UNIVERSITY OF CALIFORNIA
REGENTS 3.95 12/04/00 3,500,000
25,000,000 UNIVERSITY OF CALIFORNIA
REGENTS 3.90 12/08/00 25,000,000
6,150,000 VACAVILLE CA MFHR QUAIL RUN
PROJECT SERIES A++ 4.50 07/15/18 6,150,000
2,700,000 VALLECITOS CA WATER DISTRICT
COP TWIN OAKS RESERVOIR
PROJECT++ 4.50 07/01/30 2,700,000
4,800,000 VALLEJO CA MFHR HIGHLANDS++ 4.75 06/01/07 4,800,000
7,300,000 VALLEJO MFHR SERIES C++ 4.90 01/01/08 7,300,000
2,900,000 WALNUT CREEK CA MFHR CREEKSIDE
DRIVE APARTMENTS LOC - BANK OF
AMERICA++ 3.45 04/01/07 2,900,000
1,470,000 WEST COVINA CA REDEVELOPMENT
AGENCY LEASE++ 4.30 08/01/18 1,470,000
2,015,674,900
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$2,015,674,900)
--------------
PUERTO RICO MUNICIPAL SECURITIES - 14.83%
3,400,000 PUERTO RICO COMMONWEALTH
GOVERNMENT DEVELOPMENT++ 4.35 12/01/15 3,400,000
9,700,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 331++ 4.57 07/01/14 9,700,000
1,000,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES 472++ 4.57 07/01/18 1,000,000
3,750,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES PA 494++ 4.57 07/01/28 3,750,000
2,390,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 605++ 4.57 07/01/26 2,390,000
2,675,000 PUERTO RICO COMMONWEALTH GO++ 4.57 07/01/10 2,675,000
9,720,000 PUERTO RICO COMMONWEALTH GO
SERIES 125 AMBAC INSURED++ 4.82 07/01/27 9,720,000
6,090,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV PA 548R++ 4.57 07/01/15 6,090,000
6,400,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES A AMBAC
INSURED++ 4.50 07/01/28 6,400,000
2,500,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY RV SERIES B MBIA
INSURED++ 3.89 07/01/35 2,500,000
2,000,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY PA 498++ 4.57 07/01/28 2,000,000
8,700,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 AMBAC
INSURED++ 4.82 07/01/28 8,700,000
9,200,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE RV++ 4.05 07/01/28 9,200,000
17,000,000 PUERTO RICO COMMONWEALTH P
FLOATS PT 1025++ 4.05 07/01/23 17,000,000
4,425,000 PUERTO RICO COMMONWEALTH
SERIES 20 MBIA INSURED++ 4.97 07/01/23 4,425,000
5,820,000 PUERTO RICO COMMONWEALTH
SERIES 642 MBIA INSURED++ 4.57 07/01/12 5,820,000
24,507,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.75 02/12/00 24,507,000
</TABLE>
21
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (continued)
$16,659,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.80% 10/17/00 $ 16,659,000
6,600,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.65 10/18/00 6,600,000
18,554,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.90 10/25/00 18,554,000
24,290,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.40 10/26/00 24,290,000
20,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.80 10/31/00 20,000,000
11,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.35 11/09/00 11,000,000
25,084,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.35 11/09/00 25,084,000
13,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.00 11/13/00 13,000,000
5,200,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.20 11/16/00 5,200,000
19,100,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.45 11/16/00 19,100,000
17,446,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 4.25 11/22/00 17,446,000
2,000,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV++ 4.57 06/01/16 2,000,000
6,315,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV++ 4.57 06/01/19 6,315,000
1,195,000 PUERTO RICO PUBLIC FINANCE
CORPORATION RV SERIES 111++ 4.82 06/01/26 1,195,000
9,795,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV++ 4.57 07/01/07 9,795,000
3,700,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV++ 4.57 01/01/12 3,700,000
8,030,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV SERIES P 7.00 07/01/21 8,361,653
18,400,000 PUERTO RICO ELECTRIC POWER
AUTHORITY RV SERIES 16 HH++ 5.07 07/01/13 18,400,000
3,820,000 PUERTO RICO PUBLIC BUILDINGS
AUTHORITY RV FRN PA 577++ 4.57 07/01/27 3,820,000
354,636,653
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $354,636,653)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,370,311,553)* 99.15% $2,370,311,553
OTHER ASSETS AND LIABILITIES, NET 0.85 20,303,666
------- --------------
TOTAL NET ASSETS 100.00% $2,390,615,219
------- --------------
</TABLE>
++ VARIABLE RATE.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Other 25%
Multi-Family Housing 20%
Educational Facilities 10%
Industrial Development 9%
Water & Sewer 7%
General Obligation 3%
Health Care 3%
Leasing 3%
Transportation 3%
Foreign Depository Institutions 3%
Airport Revenue 2%
Electric 2%
Housing 2%
Power 2%
Utilities 2%
Economic Development 1%
Pollution Control 1%
Sales Tax 1%
Single Family Housing 1%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 12.45%
FEDERAL HOME LOAN BANK - 4.40%
$ 50,000,000 FEDERAL HOME LOAN BANK 6.51%{::} 1/30/01 $ 48,940,000
30,000,000 FEDERAL HOME LOAN BANK 6.71{::} 2/9/01 29,306,667
50,000,000 FEDERAL HOME LOAN BANK 6.66{::} 3/1/01 48,666,668
126,913,335
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.39%
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.44{::} 1/16/01 24,554,386
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.49{::} 1/31/01 48,929,486
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.57{::} 2/23/01 24,363,501
97,847,373
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.66%
21,375,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.44{::} 10/24/00 21,291,400
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.45{::} 10/25/00 39,835,933
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.60{::} 2/8/01 24,428,011
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.52{::} 2/22/01 48,740,806
134,296,150
--------------
359,056,858
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $359,056,858)
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE BONDS - 2.07%
FEDERAL HOME LOAN BANK - 1.21%
35,000,000 FEDERAL HOME LOAN BANK 6.68 5/8/01 34,947,322
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.86%
24,875,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.84 7/25/01 24,899,686
--------------
59,847,008
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE BONDS (COST $59,847,008)
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE NOTES - 19.36%
FEDERAL HOME LOAN BANK - 7.66%
50,000,000 FEDERAL HOME LOAN BANK 6.05 11/3/00 49,997,185
40,000,000 FEDERAL HOME LOAN BANK 6.35 2/1/01 39,990,895
40,000,000 FEDERAL HOME LOAN BANK 6.75 3/1/01 39,998,716
20,000,000 FEDERAL HOME LOAN BANK 6.66 4/6/01 19,992,698
30,000,000 FEDERAL HOME LOAN BANK 6.67 4/6/01 29,999,847
10,970,000 FEDERAL HOME LOAN BANK 7.08 6/29/01 10,996,619
30,000,000 FEDERAL HOME LOAN BANK 6.55 9/28/01 29,996,856
220,972,816
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.21%
35,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.50 1/19/01 34,996,744
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 9.28%
30,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.85 11/20/00 29,925,507
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 8.25 12/18/00 50,115,501
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.63 3/15/01 39,807,887
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.52 3/16/01 39,975,448
29,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.55 3/20/01 28,993,656
</TABLE>
23
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 19,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 7.25% 5/25/01 $ 19,059,953
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.64 9/18/01 24,997,599
35,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.64 9/18/01 34,987,413
267,862,964
--------------
STUDENT LOAN MORTGAGE ASSOCIATION - 1.21%
35,000,000 STUDENT LOAN MORTGAGE
ASSOCIATION 5.90 12/1/00 34,992,945
--------------
558,825,469
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE NOTES (COST $558,825,469)
--------------
VARIABLE & FLOATING RATE NOTES - AGENCY - 11.22%
FEDERAL HOME LOAN MORTGAGE COMPANY - 9.49%
199,000,000 FEDERAL HOME LOAN MORTGAGE
COMPANY++ 6.41 12/20/00 198,951,402
75,000,000 FEDERAL HOME LOAN MORTGAGE
COMPANY++ 6.53 1/10/01 74,980,535
273,931,937
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.73%
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION++ 6.46 11/13/00 49,995,138
--------------
323,927,075
TOTAL VARIABLE & FLOATING RATE NOTES -
AGENCY (COST $323,927,075)
--------------
REPURCHASE AGREEMENTS - 54.91%
112,744,129 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT 6.65 10/2/00 112,744,129
307,084,240 BEAR STEARNS REPURCHASE
AGREEMENT 6.65 10/2/00 307,084,240
250,000,000 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.67 10/2/00 250,000,000
65,100,000 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.68 10/2/00 65,100,000
300,000,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.65 10/2/00 300,000,000
550,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/2/00 550,000,000
1,584,928,369
TOTAL REPURCHASE AGREEMENTS (COST
$1,584,928,369)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,886,584,779)* 100.01% $2,886,584,779
OTHER ASSETS AND LIABILITIES, NET (0.01) (411,576)
------- --------------
TOTAL NET ASSETS 100.00% $2,886,173,203
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
++ VARIABLE RATE.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MINNESOTA MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 101.37%
$2,135,000 ALBERTA LEA MN ISD # 241 GO
BONDS SCHOOL DISTRICT CREDIT
PROGRAM 4.50% 9/2/01 $ 2,136,715
1,371,000 ARDEN HILLS MN HOUSING &
HEALTH CARE FACILITIES RV
PRESBYTERIAN HOMES PROJECT
SERIES B US BANK NA LOC++ 5.65 9/1/29 1,371,000
4,550,000 BLAINE MN IDR BONDS SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK OF GEORGIA LOC++ 5.95 11/1/13 4,550,000
100,000 BURNSVILLE MN MFHR BERKSHIRE
PROJECT SERIES A US BANK TRUST
NA LOC++ 5.65 7/15/30 100,000
1,500,000 CITY OF ROCHESTER MN 4.25 10/12/00 1,500,000
1,300,000 CLOQUET MN INDUSTRIAL
FACILITIES RV POTLATCH
CORPORATION PROJECT SERIES C
WACHOVIA BANK LOC++ 5.65 4/1/28 1,300,000
2,680,000 COHASSET MN IDR MINNESOTA
POWER & LIGHT COMPANY PROJECT
SERIES A ABN AMRO BANK NV
LOC++ 5.65 6/1/20 2,680,000
2,500,000 CRYSTAL MN MFHR BONDS CRYSTAL
APARTMENTS L.P. PROJECT FHLB
LOC++ 5.85 5/1/27 2,500,000
3,100,000 DULUTH MN EDA HEALTH CARE
FACILITIES RV MILLER DWAN
MEDICAL CENTER PROJECT CREDIT
LOCAL DE FRANCE LOC++ 5.65 6/1/19 3,100,000
2,500,000 EAGAN MN MFHR FRN POINT 1221
PROJECT++ 5.77 12/1/29 2,500,000
750,000 EDINA MN MFH RV EDINA PARK
PLAZA US BANK TRUST NA LOC++ 5.85 12/1/29 750,000
100,000 FRIDLEY MN IDR LONGVIEW FIBRE
COMPANY PROJECT ABN AMRO LOC++ 6.05 1/1/03 100,000
500,000 FULDA MN INDEPENDENT SD NO 505
EDUCATION FACILITIES RV SD
CREDIT PROGRAM LOC 4.55 9/30/01 500,711
1,400,000 GOLDEN VALLEY MN IDA RV
UNICARE HOMES PROJECT BANK OF
AMERICA NA LOC++ 5.55 9/1/14 1,400,000
6,955,000 MINNEAPOLIS & ST PAUL MN
METROPOLITAN COMMUNITY AIRPORT
RV SERIES SG136++ 5.62 1/1/25 6,955,000
2,436,000 MINNEAPOLIS MN P FLOATS PA
711++ 5.62 3/1/10 2,436,000
1,250,000 MINNEAPOLIS MN RV PEOPLE
SERVING PEOPLE PROJECT
SERIES A US BANK LOC++ 5.70 10/1/21 1,250,000
1,500,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATE
INDENTURE SERIES A 4.25 2/28/01 1,499,917
1,500,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATE
INDENTURE SERIES A 5.00 8/9/01 1,508,195
3,500,000 MINNESOTA STATE RV SERIES A 5.00 6/30/01 3,517,271
250,000 MINNESOTA STATE FIRST CHICAGO
CAPITAL MARKET LOC 4.88 8/1/01 251,043
500,000 MINNESOTA STATE GO BONDS 5.00 4/1/01 501,570
2,000,000 MINNESOTA STATE HFA SINGLE
FAMILY HOUSING RV SERIES E
PAINEWEBBER LOC 4.35 5/1/01 1,998,605
100,000 NEW BRIGHTON MN IDR RV UNICARE
HOMES INCORPORATED PROJECT US
BANK TRUST NA LOC++ 5.55 12/1/14 100,000
4,585,000 NORTHERN MN MUNICIPAL POWER++ 5.62 1/1/13 4,585,000
3,000,000 OLMSTEAD COUNTY MN HOUSING &
REDEVELOPMENT AUTHORITY RV
COLLATERALIZED BY USG P/R
2/1/01 @ 100 7.00 2/1/01 3,024,956
245,000 PLYMOUTH MN IDR TURCK
MULTIPROX INCORPORATED PROJECT
DEUTSCHE BANK LOC++ 5.60 11/1/06 245,000
1,565,000 ROCHESTER MN GO 4.25 10/12/00 1,565,000
1,200,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
HOUSING RV GOODWILL/EASTER
SEALS PROJECT FIRSTAR BANK
LOC++ 5.75 8/1/25 1,200,000
3,600,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY MFHR
KENDRICK APARTMENTS PROJECT US
BANK TRUST NA LOC++ 6.00 1/1/27 3,600,000
2,750,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
UTILITIES RV CREDIT LOCAL DE
FRANCE LOC++ 5.85 12/1/12 2,750,000
945,000 ST. PAUL MN PORT AUTHORITY IDR
TEXAS PROJECT SERIES A US BANK
NA LOC++ 5.95 6/1/10 945,000
</TABLE>
25
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MINNESOTA MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES (continued)
$2,100,000 SOUTHERN MINNESOTA MUNICIPAL
POWER AGENCY POWER SUPPLY
SYSTEM RV 4.20% 10/11/00 $ 2,100,000
64,520,983
TOTAL MUNICIPAL SECURITIES (COST
$64,520,983)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $64,520,983)* 101.37% $64,520,983
OTHER ASSETS AND LIABILITIES, NET (1.37) (873,726)
------- -----------
TOTAL NET ASSETS 100.00% $63,647,257
------- -----------
</TABLE>
++ VARIABLE RATE.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Health Care 17%
Multi-Family Housing 15%
Industrial Development 13%
Airport 11%
Power 10%
Other 9%
Housing 7%
Water & Sewer 6%
Education Facilities 5%
General Obligation 4%
Single Family Housing 3%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
BANK NOTES - 1.05%
$ 55,000,000 BANK OF AMERICA CORPORATION 7.23% 2/16/01 $ 55,000,000
15,600,000 BRANCH BANKING & TRUST 7.05 5/7/01 15,565,649
95,000,000 REGIONS BANK 6.09 10/10/00 94,998,808
165,564,457
TOTAL BANK NOTES (COST $165,564,457)
---------------
CERTIFICATES OF DEPOSIT - 4.60%
43,800,000 ABN AMRO BANK CHICAGO 6.72 2/12/01 43,795,447
100,000,000 BANK OF AMERICA NT/SA 6.62 11/27/00 100,000,000
46,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 1/29/01 45,994,368
100,000,000 COMMERZ BANK NY 6.77 2/28/01 99,988,385
65,000,000 DEUTSCHE BANK NY 6.07 10/10/00 64,999,388
45,000,000 NATIONAL WESTMINSTER BANK 6.47 1/18/01 44,993,671
35,500,000 U.S. BANK 6.59 1/16/01 35,500,000
150,000,000 UNION BANK OF SWITZERLAND
STAMFORD 6.24 12/6/00 149,982,185
145,800,000 UNION BANK OF SWITZERLAND
STAMFORD 6.22 12/11/00 145,780,020
731,033,464
TOTAL CERTIFICATES OF DEPOSIT (COST
$731,033,464)
---------------
COMMERCIAL PAPER - 39.62%
119,377,000 ALPINE SECURITIZATION
CORPORATION 6.58{::} 10/23/00 118,920,880
396,367,000 AQUINAS FUNDING, LLC 6.75{::} 10/2/00 396,367,000
92,632,000 ATLANTIS ONE FUNDING
CORPORATION 6.63{::} 10/6/00 92,564,585
229,000,000 BANK OF AMERICA CORPORATION 6.47{::} 10/12/00 228,601,795
300,000,000 BAUS FUNDING LLC 6.63{::} 10/6/00 299,782,332
175,000,000 BAUS FUNDING LLC 6.61{::} 12/28/00 172,267,959
45,466,000 COMPASS SECURITIZATION, LLC 6.57{::} 10/12/00 45,383,530
55,000,000 COMPASS SECURITIZATION, LLC 6.47{::} 10/16/00 54,866,106
20,275,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.66{::} 11/20/00 20,093,967
45,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.65{::} 11/22/00 44,583,075
65,000,000 CONDUIT ASSET BACKED
SECURITIES, LIMITED 6.69{::} 12/11/00 64,170,889
63,629,000 CROWN POINT CAPITAL COMPANY,
LLC 6.58{::} 10/12/00 63,513,231
30,183,000 CROWN POINT CAPITAL COMPANY,
LLC 6.59{::} 10/23/00 30,067,676
100,000,000 CXC INCORPORATED 6.63{::} 10/6/00 99,927,444
137,000,000 FALCON ASSET SECURITIZATION
CORPORATION 6.57{::} 10/3/00 136,975,207
90,440,000 FALCON ASSET SECURITIZATION
CORPORATION 6.60{::} 11/9/00 89,814,708
200,000,000 GENERAL ELECTRIC CAPITAL
INTERNATIONAL FUNDING 6.53{::} 10/5/00 199,891,500
50,000,000 GENERAL ELECTRIC FINANCIAL
ASSURANCE HOLDINGS,
INCORPORATED 6.53{::} 10/5/00 49,972,875
57,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.50{::} 12/22/00 57,000,000
88,000,000 GOVCO INCORPORATED 6.62{::} 12/8/00 86,933,807
125,000,000 GRAND FUNDING CORPORATION 6.54{::} 10/3/00 124,977,292
21,850,000 GRAND FUNDING CORPORATION 6.59{::} 10/4/00 21,842,061
10,391,000 GRAND FUNDING CORPORATION 6.61{::} 10/30/00 10,337,902
172,000,000 GREYHAWK FUNDING, LLC 6.49{::} 10/13/00 171,669,426
46,492,000 HALOGEN CAPITAL COMPANY, LLC 6.75{::} 10/3/00 46,483,283
217,563,000 HALOGEN CAPITAL COMPANY, LLC 6.57{::} 10/17/00 216,970,224
48,176,000 HALOGEN CAPITAL COMPANY, LLC 6.54{::} 10/16/00 48,053,473
75,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.57{::} 10/11/00 74,877,563
34,521,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.51{::} 10/23/00 34,394,135
86,100,000 IRISH PERMANENT TREASURY PLC 6.36{::} 10/26/00 85,746,990
</TABLE>
27
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$165,000,000 J.P. MORGAN & COMPANY
INCORPORATED 6.45%{::} 10/11/00 $ 164,742,393
28,000,000 K2 (USA) LLC 6.48{::} 10/16/00 27,931,727
66,277,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.60{::} 10/11/00 66,168,140
50,795,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.62{::} 11/17/00 50,371,822
100,000,000 LEXINGTON PARKER CAPITAL
COMPANY, LLC 6.61{::} 12/1/00 98,915,000
20,337,000 LINKS FINANCE, LLC 6.63{::} 11/13/00 20,182,066
124,500,000 LONE STAR FUNDING 6.58{::} 10/19/00 124,115,503
95,084,000 LONE STAR FUNDING 6.60{::} 10/30/00 94,598,861
104,000,000 MOAT FUNDING, LLC 6.67{::} 10/6/00 103,924,196
80,500,000 MOAT FUNDING, LLC 6.49{::} 10/11/00 80,373,414
25,828,000 MOAT FUNDING, LLC 6.46{::} 10/12/00 25,783,160
123,500,000 NEPTUNE FUNDING CORPORATION 6.58{::} 10/4/00 123,455,060
17,755,000 NEPTUNE FUNDING CORPORATION 6.58{::} 10/17/00 17,706,544
148,364,000 NEPTUNE FUNDING CORPORATION 6.59{::} 10/19/00 147,905,102
50,000,000 NESS LLC 6.63{::} 11/16/00 49,591,875
50,000,000 NESS LLC 6.63{::} 11/17/00 49,582,806
128,335,000 PARK AVENUE RECEIVABLES
CORPORATION 6.57{::} 10/26/00 127,776,315
178,566,000 PERRY GLOBAL FUNDING LIMITED 6.61{::} 10/18/00 178,046,968
51,413,000 PERRY II FUNDING CORPORATION
(ACE) 6.58{::} 10/25/00 51,198,180
56,382,000 PERRY III FUNDING CORPORATION 6.59{::} 11/1/00 56,074,248
120,036,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.63{::} 10/5/00 119,970,480
127,757,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.64{::} 11/16/00 126,712,587
73,802,000 PERRY IV FUNDING CORPORATION -
SERIES IRVINE (FNMA) 6.64{::} 11/16/00 73,198,669
35,583,000 POOLED ACCOUNT RECEIVABLES
CAPITAL CORPORATION 6.62{::} 12/6/00 35,164,752
38,365,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 6.56{::} 10/10/00 38,309,328
75,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.61{::} 10/3/00 74,986,396
150,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.63{::} 10/5/00 149,918,250
125,000,000 SALOMON SMITH BARNEY HOLDINGS,
INCORPORATED 6.63{::} 10/6/00 124,909,167
28,400,000 SHEFFIELD RECEIVABLES
CORPORATION 6.57{::} 10/18/00 28,317,577
39,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.63{::} 12/6/00 38,540,884
200,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 5.00{::} 1/19/01 200,000,000
120,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.61{::} 2/23/01 120,000,000
54,256,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.62{::} 10/2/00 54,256,000
22,079,000 TRIPLE A ONE FUNDING 6.57{::} 10/11/00 22,042,956
235,000,000 VENTURES BUSINESS TRUST 6.56{::} 10/4/00 234,914,353
6,286,735,694
TOTAL COMMERCIAL PAPER (COST $6,286,735,694)
---------------
CORPORATE BONDS & NOTES - 9.54%
80,000,000 BETA FINANCE INCORPORATED 6.77 3/15/01 80,000,000
113,000,000 BETA FINANCE INCORPORATED 6.15 10/6/00 113,000,000
85,000,000 BETA FINANCE INCORPORATED 6.65 2/5/01 85,000,000
87,000,000 BETA FINANCE INCORPORATED 6.82 2/15/01 87,000,000
150,000,000 BETA FINANCE INCORPORATED 6.83 2/20/01 150,000,000
65,250,000 CC (USA), INCORPORATED 6.17 10/16/00 65,250,000
140,000,000 CC (USA), INCORPORATED 6.77 3/15/01 140,000,000
113,000,000 CC (USA), INCORPORATED 6.79 3/15/01 113,000,000
95,000,000 CC (USA), INCORPORATED 6.66 2/4/01 95,000,000
80,000,000 DORADA FINANCE INCORPORATED 6.77 3/15/01 80,000,000
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES (continued)
$110,000,000 DORADA FINANCE INCORPORATED 6.79% 3/15/01 $ 110,000,000
108,000,000 DORADA FINANCE INCORPORATED 7.30 5/17/01 108,000,000
20,000,000 NORTHERN ROCK PLC 6.87 4/20/01 20,000,000
75,000,000 SIGMA FINANCE INCORPORATED 6.10 10/23/00 75,000,000
122,000,000 SIGMA FINANCE INCORPORATED 6.89 4/30/01 122,000,000
70,000,000 U.S. BANCORP 5.92 10/2/00 70,000,000
1,513,250,000
TOTAL CORPORATE BONDS & NOTES (COST
$1,513,250,000)
---------------
FLOATING RATE FUNDING AGREEMENTS - 1.00%
7,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.88 12/17/00 7,250,000
150,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.90 2/9/01 150,000,000
157,250,000
TOTAL FLOATING RATE FUNDING AGREEMENTS (COST
$157,250,000)
---------------
MASTER NOTES - 0.01%
2,424,547 GENERAL ELECTRIC COMPANY++ 6.58 10/5/00 2,424,547
---------------
2,424,547
TOTAL MASTER NOTES (COST $2,424,547)
---------------
MUNICIPAL DEMAND NOTES - 0.02%
1,200,000 DURHAM, NC COP SERIES B++ 6.65 7/1/03 1,200,000
1,265,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.72 12/15/26 1,265,000
200,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES SERIES A
WACHOVIA BANK OF NORTH
CAROLINA LOC++ 6.65 3/1/17 200,000
2,665,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$2,665,000)
---------------
TIME DEPOSITS - 25.98%
500,000,000 ABN AMRO BANK CHICAGO, GRAND
CAYMAN 6.55 10/2/00 500,000,000
475,000,000 BANCA COMMERCIALE ITALIANA,
LONDON 6.75 10/2/00 475,000,000
200,000,000 BANK OF IRELAND, DUBLIN 6.75 10/2/00 200,000,000
348,500,000 BANQUE BRUXELLES LAMBERT,
LONDON 6.75 10/2/00 348,500,000
330,000,000 BARCLAYS BANK, LONDON 6.73 10/2/00 330,000,000
550,018,876 CAISSE DES DEPOTS ET
CONSIGNATIONS, PARIS 6.73 10/2/00 550,018,876
169,600,000 KEYBANK, GRAND CAYMAN 6.63 10/2/00 169,600,000
343,459,842 MERITA BANK, GRAND CAYMAN 6.75 10/2/00 343,459,842
775,000,000 RABOBANK, LONDON 6.56 10/3/00 775,000,000
430,000,000 UNION BANK OF SWITZERLAND,
GRAND CAYMAN 6.66 10/2/00 430,000,000
4,121,578,718
TOTAL TIME DEPOSITS (COST $4,121,578,718)
---------------
VARIABLE & FLOATING RATE NOTES - 5.89%
7,500,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.77 3/15/01 7,500,000
300,000,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.68 3/29/01 300,000,000
3,750,000 BEAR STEARNS & COMPANIES,
INCORPORATED 6.77 4/9/01 3,749,873
300,000,000 J.P. MORGAN & COMPANY
INCORPORATED 6.61 3/16/01 300,000,000
75,000,000 KEYCORP 6.66 5/15/01 74,990,754
10,250,000 MORGAN STANLEY, DEAN WITTER,
DISCOVER & COMPANY 6.76 3/15/01 10,250,000
155,000,000 MORGAN STANLEY, DEAN WITTER,
DISCOVER & COMPANY 6.60 3/16/01 155,000,000
83,500,000 SIGMA FINANCE INCORPORATED 6.78 10/5/00 83,500,000
934,990,627
TOTAL VARIABLE & FLOATING RATE NOTES (COST
$934,990,627)
---------------
REPURCHASE AGREEMENTS - 11.68%
400,000,000 BANK OF AMERICA NT & SA
REPURCHASE AGREEMENT 6.65 10/2/00 400,000,000
</TABLE>
29
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS (continued)
$343,007,860 BEAR STEARNS COMPANIES
REPURCHASE AGREEMENT 6.65% 10/2/00 $ 343,007,860
199,245,765 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.67 10/2/00 199,245,765
11,714,557 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.68 10/2/00 11,714,557
750,000,000 GOLDMAN SACHS CORPORATION
REPURCHASE AGREEMENT 6.75 10/2/00 750,000,000
150,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.84 10/2/00 150,000,000
1,853,968,182
TOTAL REPURCHASE AGREEMENTS (COST
$1,853,968,182)
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $15,769,460,689)* 99.39% $15,769,460,689
OTHER ASSETS AND LIABILITIES, NET 0.61 96,994,552
------- ---------------
TOTAL NET ASSETS 100.00% $15,866,455,241
------- ---------------
</TABLE>
++ VARIABLE RATE.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
30
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.18%
ALABAMA - 0.65%
$2,250,000 JEFFERSON COUNTY AL SEWER
REVENUE PA 487 R++ 5.62% 2/1/38 $ 2,250,000
------------
ALASKA - 0.57%
100,000 ALASKA HOUSING FINANCE
CORPORATION HOUSING REVENUE
SERIES 2-REG D MBIA INSURED++ 5.65 6/1/35 100,000
1,890,000 ALASKA IDA REVENUE PROVIDENCE
MEDICAL OFFICE BUILDING++ 4.10 6/1/10 1,890,000
1,990,000
------------
ARIZONA - 0.37%
1,300,000 MARICOPA COUNTY AZ IDA MFHR
FRN PROJECT++ 5.82 11/1/32 1,300,000
------------
ARKANSAS - 0.52%
1,795,000 FAYETTEVILLE AR PUBLIC
FACILITIES BOARD REVENUE
BUTTERFIELD TRAIL VILLAGE
ARVEST TRUST COMPANY N.A.
LOC++ 5.65 9/1/27 1,795,000
------------
CALIFORNIA - 1.71%
2,950,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN
REVENUE SERIES E-1 STUDENT
LOAN MARKETING LOC++ 5.50 12/1/22 2,950,000
3,000,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN
REVENUE SERIES A STATE STREET
B&T CA LOC 4.70 6/1/01 3,000,000
5,950,000
------------
COLORADO - 2.52%
300,000 DENVER CO CITY & COUNTY SD #1
FRN PT 1135++ 3.90 10/26/00 300,000
1,000,000 JEFFERSON COUNTY CO SD 5.00 6/27/01 1,004,835
3,700,000 ROARING FORKS CO++ 5.72 12/1/05 3,700,000
3,770,000 ROARING FORKS CO++ 5.72 6/1/05 3,770,000
8,774,835
------------
DISTRICT OF COLUMBIA - 0.60%
2,065,000 DISTRICT OF COLUMBIA FRN
SERIES PA 568++ 5.62 6/1/10 2,065,000
------------
FLORIDA - 1.44%
2,000,000 DADE COUNTY FL IDA REVENUE
GUARANTEED BY ADP
INCORPORATED++ 4.41 11/15/17 2,000,000
3,000,000 DADE COUNTY FL WATER & SEWER
REVENUE FGIC INSURED 5.00 10/2/00 3,000,000
5,000,000
------------
GEORGIA - 1.61%
500,000 COBB COUNTY GA SD GO BANC OF
AMERICA LOC 4.38 12/29/00 500,472
5,095,000 GEORGIA LOCAL GOVERNMENT COP
SERIES PT 1060 MBIA INSURED++ 5.62 6/1/28 5,095,000
5,595,472
------------
HAWAII - 0.06%
100,000 HAWAII STATE DEPARTMENT OF
BUDGET & FINANCE SPECIAL
PURPOSE MORTGAGE REVENUE
KUAKINI MEDICAL CENTER PROJECT
BANK OF HAWAII LOC++ 4.35 7/1/04 100,000
100,000 HAWAII STATE GO SERIES CQ FGIC
INSURED 5.00 10/2/00 100,000
200,000
------------
IDAHO - 0.86%
3,000,000 NEZ PERCE COUNTY ID PCR
POTLATCH CORPORATION PROJECT
BANK ONE CHICAGO LOC++ 5.55 12/1/07 3,000,000
------------
</TABLE>
31
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
ILLINOIS - 5.45%
$ 300,000 CHICAGO IL GO EQUIPMENT NOTES
HARRIS TRUST & SAVINGS LOC
MANDATORY PUT 10/5/00 @ 100 3.90% 10/5/00 $ 300,000
1,900,000 CHICAGO IL GO SERIES A
LANDESBANK HESSEN LOC 3.90 12/7/00 1,900,000
500,000 ELMHURST IL IDR JOHN SAKASH
COMPANY INCORPORATED PROJECT
LASALLE BANK N.A. LOC++ 5.67 2/1/25 500,000
2,200,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY REVENUE RESIDENTIAL
RENTAL FNMA INSURED++ 5.55 4/1/24 2,200,000
930,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY REVENUE REVCOR
INCORPORATED PROJECT LASALLE
NATIONAL BANK LOC++ 5.67 6/1/08 930,000
2,000,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY LAKE FOREST ACADEMY
NORTHERN TRUST COMPANY LOC++ 5.55 12/1/24 2,000,000
4,000,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY REVENUE
ANTICIPATION NOTES LEWIS
UNIVERSITY PROJECT SERIES C 5.00 7/11/01 4,014,771
3,000,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY EDUCATION
REVENUE SERIES A3 HARRIS
TRUST & SAVINGS LOC 4.75 2/5/01 3,000,000
1,900,000 ILLINOIS HEALTH FACILITIES
AUTHORITY REVENUE ELMHURST
MEMORIAL HEALTH PROJECT
SERIES A BANK ONE N.A. LOC++ 5.55 10/1/28 1,900,000
2,100,000 ILLINOIS HEALTH FACILITIES
AUTHORITY REVENUE SERIES 166
AMBAC INSURED++ 5.62 2/15/24 2,100,000
100,000 SPRINGFIELD IL TRANSPORTATION
REVENUE GUARANTEED BY ALLIED
SIGNAL++ 5.60 10/15/16 100,000
18,944,771
------------
INDIANA - 3.51%
6,670,000 INDIANA BOND BANK REVENUE
SERIES 277 MORGAN STANLEY DEAN
WITTER LOC++ 5.77 2/1/17 6,670,000
1,600,000 INDIANA HFFA REVENUE ASCENSION
HEALTH CREDIT SERIES B++ 5.75 11/15/39 1,600,000
2,400,000 INDIANA SECONDARY MARKET
EDUCATIONAL LOANS INCORPORATED
EDUCATIONAL LOAN REVENUE
SERIES B AMBAC INSURED++ 5.50 12/1/14 2,400,000
1,500,000 INDIANAPOLIS IN ECONOMIC
DEVELOPMENT REVENUE VISITING
NURSE SERVICE FOUNDATION FIRST
OF AMERICA BANK LOC++ 5.95 3/1/13 1,500,000
12,170,000
------------
IOWA - 3.14%
4,000,000 IOWA FINANCE AUTHORITY SFMR
SERIES N++ 4.40 3/15/01 4,000,000
2,190,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION REVENUE
BRIAR COLLEGE PROJECT
SERIES A US BANCORP LOC 5.50 5/24/01 2,196,683
1,775,000 IOWA HIGHER EDUCATIONAL LOAN
AUTHORITY EDUCATION REVENUE
GRACELAND COLLEGE PROJECT
SERIES D US BANCORP LOC 5.50 5/24/01 1,780,415
2,500,000 IOWA SCHOOL CORPORATION
EDUCATIONAL FACILITIES REVENUE
WARRANTS CERTIFICATES IOWA
SCHOOL CASH ANTICIPATION
PROGRAM SERIES A 5.50 6/22/01 2,517,400
200,000 MASON CITY IA IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK LOC++ 6.05 9/1/14 200,000
200,000 URBANDALE IA IDR INTERSTATE
ACRES L.P. PROJECT GUARANTEED
BY PRINCIPAL MUTUAL LIFE
INSURANCE++ 5.80 12/1/14 200,000
10,894,498
------------
KENTUCKY - 0.35%
1,200,000 KENTUCKY ASSET/LIABILITY
COMMISSION GENERAL FUND
REVENUE 5.25 6/27/01 1,205,982
------------
LOUISIANA - 7.70%
600,000 CALCASIEU PARISH LA SALES TAX
DISTRICT NO. 4 TAX REVENUE
ROAD IMPROVEMENT CREDIT
DE FRANCE LOC++ 5.65 9/1/01 600,000
2,000,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY SFHR
SERIES C-2 GNMA/FNMA INSURED 4.65 6/29/01 2,000,000
100,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL REVENUE
WILLIS KNIGHTON MEDICAL
PROJECT++ 5.40 9/1/25 100,000
10,255,000 LOUISIANA STATE HEALTH
EDUCATION AUTHORITY REVENUE++ 5.66 10/1/17 10,255,000
</TABLE>
32
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
LOUISIANA (continued)
$ 300,000 NATCHITOCHES PARISH LA TRUST
JOIST CORPORATION PROJECT
WACHOVIA BANK LOC++ 6.05% 10/2/00 $ 300,000
5,975,000 PLAQUEMINES LA PORT HARBOR &
TERM DISTRICT PORT FACILITIES
REVENUE INTERNATIONAL MARINE
TERMINAL PROJECT SERIES B
KREDIETBANK NV LOC OPTIONAL
PUT 3/15/01 @ 100 4.20 3/15/01 5,975,000
5,000,000 PLAQUEMINES LA PORT HARBOR &
TERM DISTRICT PORT FACILITIES
REVENUE INTERNATIONAL MARINE
TERMINAL PROJECT SERIES A
KREDIETBANK NV LOC OPTIONAL
PUT 3/15/01 @ 100 4.20 3/15/01 5,000,000
2,500,000 WEST BATON ROUGE PARISH LA
INDUSTRAL DISTRICT NO. 3 IDR
DOW CHEMICAL COMPANY PROJECT++ 5.75 12/1/23 2,500,000
26,730,000
------------
MAINE - 0.63%
2,200,000 REGIONAL WASTE SYSTEMS
INCORPORATED SOLID WASTE
RECOVERY REVENUE SERIES K++ 5.90 7/1/12 2,200,000
------------
MARYLAND - 0.46%
1,600,000 HOWARD COUNTY MD MFHR SHERWOOD
CROSSING LIMITED PROJECT
GUARDIAN SAVINGS & LOAN LOC 4.85 6/1/01 1,600,000
------------
MASSACHUSETTS - 0.72%
2,500,000 MASSACHUSETTS STATE REVENUE
BOND ANTICIPATION NOTES
SERIES A 5.00 9/6/01 2,515,574
------------
MICHIGAN - 3.16%
975,000 MICHIGAN STATE BUILDING
AUTHORITY REVENUE FACILITIES
PROJECT SERIES II 5.00 10/15/00 975,385
10,000,000 STATE BUILDING AUTHORITY 4.35 10/26/00 10,000,000
10,975,385
------------
MINNESOTA - 10.97%
1,370,000 ARDEN HILLS MN HOUSING &
HEALTH CARE FACILITIES REVENUE
PRESBYTERIAN HOMES PROJECT
SERIES B U.S. BANK N.A. LOC++ 5.65 9/1/29 1,370,000
720,000 BLAINE MN IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK OF GEORGIA LOC++ 5.95 11/1/13 720,000
2,100,000 CRYSTAL MN MFHR CRYSTAL
APARTMENTS L.P. PROJECT FHLB
LOC++ 5.85 5/1/27 2,100,000
1,800,000 DULUTH MN EDA HEALTH CARE
FACILITIES REVENUE MILLER DWAN
MEDICAL CENTER PROJECT CREDIT
LOCAL DE FRANCE LOC++ 5.65 6/1/19 1,800,000
1,800,000 DULUTH MN TAX INCREMENT
REVENUE LAKE SUPERIOR PAPER
PROJECT WACHOVIA BANK GEORGIA
LOC++ 5.40 9/1/10 1,800,000
810,000 EDEN PRAIRIE MN MFHR LAKE
PLACE APARTMENTS PROJECT U.S.
BANK N.A. LOC++ 5.70 4/1/18 810,000
10,550,000 EDINA MN MFHR EDINA PARK PLAZA
U.S. BANK TRUST N.A. LOC++ 5.85 12/1/29 10,550,000
3,000,000 GOLDEN VALLEY MN IDA REVENUE
UNICARE HOMES PROJECT BANK OF
AMERICA N.A. LOC++ 5.55 9/1/14 3,000,000
1,045,000 MINNEAPOLIS & ST PAUL MN
METROPOLITAN COMMUNITY AIRPORT
REVENUE SERIES SG136++ 5.62 1/1/25 1,045,000
3,500,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATES
INDENTURE SERIES A 4.25 2/28/01 3,500,644
2,000,000 MINNESOTA STATE FRN SERIES PT
399++ 4.50 6/14/01 2,000,000
1,700,000 MINNESOTA STATE REVENUE
SERIES A 5.00 6/30/01 1,708,181
1,000,000 OLMSTEAD COUNTY MN HOUSING &
REDEVELOPMENT AUTHORITY
REVENUE COLLATERALIZED BY USG
P/R 2/1/01 @ 100 7.00 2/1/01 1,008,930
4,800,000 ROBBINSDALE MN IDR UNICARE
HOMES INCORPORATED PROJECT
BANK OF AMERICA N.A. LOC++ 5.55 10/1/14 4,800,000
1,845,000 ST. PAUL MN HOUSING & RDA
UTILITIES REVENUE CREDIT LOCAL
DE FRANCE LOC++ 5.85 12/1/12 1,845,000
38,057,755
------------
</TABLE>
33
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
MISSISSIPPI - 0.72%
$2,500,000 MISSISSIPPI BUSINESS FINANCE
CORPORATION REVENUE
MISSISSIPPI COLLEGE PROJECT
SERIES B BANK OF AMERICA N.A.
LOC++ 5.70% 2/1/09 $ 2,500,000
------------
MISSOURI - 7.02%
500,000 KANSAS CITY MO IDA MFHR COACH
HOUSE II PROJECT GUARANTEED BY
PRINCIPAL MUTUAL LIFE
INSURANCE++ 4.50 12/1/15 500,000
5,100,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN REVENUE
SERIES A GUARANTEED BY STUDENT
LOANS++ 5.50 12/1/05 5,100,000
7,875,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN REVENUE
SERIES A STATE STREET B&T
COMPANY LOC++ 5.50 6/1/17 7,875,000
100,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD RECREATIONAL
FACILITIES REVENUE YMCA
GREATER ST. LOUIS PROJECT
SERIES B BANK OF AMERICA N.A.
INSURED++ 5.70 9/1/02 100,000
4,500,000 MISSOURI STATE HEFA REVENUE++ 5.65 7/1/35 4,500,000
6,300,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD LEASE REVENUE
MISSOURI ASSOCIATION MUNICIPAL
UTILITIES LEASE PROJECT SPA -
TRANSAMERICA LIFE INSURANCE++ 5.65 12/1/22 6,300,000
24,375,000
------------
MONTANA - 0.12%
415,000 MONTANA STATE BOARD OF
INVESTMENTS MUNICIPAL FINANCE
CONSTRUCTION INTERCAP
PROGRAM REVENUE++ 4.35 3/1/01 415,000
------------
NEBRASKA - 1.99%
1,900,000 NORFOLK NE IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK OF GEORGIA LOC++ 6.05 11/1/14 1,900,000
5,000,000 OMAHA NB PUBLIC POWER DISTRICT
ELECTRIC REVENUE SERIES 122
MORGAN STANLEY DEAN WITTER
LOC++ 5.62 2/1/14 5,000,000
6,900,000
------------
NEVADA - 1.82%
4,300,000 ABN AMRO LEASETOPS 2000-1
LEASETOPS CERTIFICATES
ABN-AMRO BANK N.V. LOC++ 5.90 8/7/02 4,300,000
2,000,000 RENO NV HOSPITAL REVENUE ST.
MARY'S REGIONAL MEDICAL
PROJECT SERIES B++ 5.50 5/15/23 2,000,000
6,300,000
------------
NEW HAMPSHIRE - 0.35%
1,000,000 NEW HAMPSHIRE HEFA REVENUE
SERIES B U.S. BANCORP LOC 5.50 5/17/01 1,003,550
200,000 NEW HAMPSHIRE HIGHER
EDUCATION & HEALTH FACILITES
AUTHORITY REVENUE MUNICIPAL
TRUST RECEIPTS SERIES SG-19++ 5.67 6/1/23 200,000
1,203,550
------------
NEW MEXICO - 0.51%
1,660,000 ESPANOLA NM HEALTH CARE
REVENUE SERIES A LA SALLE
NATIONAL BANK LOC++ 5.70 11/15/10 1,660,000
100,000 SILVER CITY NM GO SERIES A LA
SALLE NATIONAL BANK LOC++ 5.70 11/15/10 100,000
1,760,000
------------
NEW YORK - 0.55%
1,895,000 IBM TAX EXEMPT GRANTOR TRUST
OTHER REVENUE IBM PROJECT
SERIES 1999-C++ 5.77 3/14/06 1,895,000
------------
NORTH CAROLINA - 0.72%
2,500,000 NORTH CAROLINA EDUCATIONAL
FACILITIES FINANCE AGENCY
EDUCATION REVENUE GASTON DAY
SCHOOL PROJECT BANK OF AMERICA
LOC++ 5.70 7/1/20 2,500,000
------------
</TABLE>
34
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
NORTH DAKOTA - 2.02%
$7,000,000 DEVILS LAKE ND IDR NOODLES BY
LEONARDO++ 6.00% 8/1/17 $ 7,000,000
------------
OHIO - 0.09%
200,000 HAMILTON COUNTY OH IDR
COMMUNITY URBAN REDEVELOPMENT
PROJECT NATIONAL WESTMINSTER
LOC++ 4.30 10/15/12 200,000
100,000 WOOSTER OH IDR ALLEN GROUP
INCORPORATED NATIONAL BANK OF
DETROIT LOC++ 5.65 12/1/10 100,000
300,000
------------
OKLAHOMA - 1.23%
100,000 OKLAHOMA COUNTY OK FINANCE
AUTHORITY IDR PERRINE OFFICE
PROJECT FGIC INSURED++ 4.30 12/1/14 100,000
3,870,000 TULSA COUNTY OK HOME FINANCE
AUTHORITY SFMR GNMA MORTGAGE
BACKED SECURITIES CLASS A
SERIES E++ 5.72 8/1/30 3,870,000
290,000 TULSA OK TULSA IDA IDR YMCA OF
GREATER TULSA PROJECT BANK OF
AMERICA N.A. LOC++ 5.70 5/1/19 290,000
4,260,000
------------
OREGON - 0.86%
3,000,000 TRI-COUNTY METROPOLITAN
TRANSPORTATION DISTRICT
REVENUE SERIES 142 MORGAN
STANLEY DEAN WITTER LOC++ 5.62 8/1/19 3,000,000
------------
OTHER - 1.50%
5,204,067 PITNEY BOWES CREDIT
CORPORATION LEASETOPS TRUST
SERIES 1999-2 AMBAC INSURED++ 5.95 3/16/05 5,204,067
------------
PENNSYLVANIA - 3.85%
5,000,000 ALLEGHENY COUNTY PA GO
SERIES C-34 MBIA-IBC INSURED 8.50 2/15/01 5,077,410
100,000 CHARTIERS VALLEY PA
INDUSTRIAL & COMMERCIAL
DEVELOPMENT AUTHORITY IDR
GUARANTEED BY ADP
INCORPORATED++ 4.41 11/15/17 100,000
4,000,000 HARRISBURG PA WATER REVENUE
FGIC INSURED 7.00 7/15/01 4,082,481
2,000,000 QUAKERTOWN PA GENERAL
AUTHORITY REVENUE POOLED
FINANCING PROGRAM SERIES A PNC
BANK LOC++ 4.35 6/1/28 2,000,000
100,000 QUAKERTOWN PA HEALTH CARE
REVENUE HOSPITAL GROUP POOLED
FINANCING SERIES A PNC BANK
LOC++ 4.35 7/1/26 100,000
2,000,000 QUAKERTOWN PA HEALTH CARE
REVENUE HOSPITAL GROUP POOLED
FINANCING PNC BANK LOC++ 4.35 7/1/05 2,000,000
13,359,891
------------
SOUTH CAROLINA - 2.33%
7,800,000 SOUTH CAROLINA JOBS ECONOMIC
DEVELOPMENT AUTHORITY ECONOMIC
DEVELOPMENT REVENUE
SERIES 338++ 5.72 12/1/00 7,800,000
300,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY REVENUE
SERIES SG-2 MBIA INSURED++ 5.62 7/1/21 300,000
8,100,000
------------
SOUTH DAKOTA - 1.04%
3,600,000 WATERTOWN SD IDA REVENUE
SUPERVALU INCORPORATED PROJECT
WACHOVIA BANK & TRUST LOC++ 5.95 9/1/14 3,600,000
------------
TENNESSEE - 1.32%
2,467,500 METROPOLITAN GOVERNMENT
NASHVILLE & DAVIDSON COUNTY TN
SERIES 251++ 5.77 5/15/18 2,467,500
100,000 METROPOLITAN GOVERNMENTS OF
NASHVILLE & DAVIDSON COUNTIES
TN HEFA REVENUE ALIVE HOSPICE
INCORPORATED PROJECT BANK OF
AMERICA N.A. LOC++ 5.70 8/1/19 100,000
</TABLE>
35
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
TENNESSEE (continued)
$2,000,000 TENNESSEE HOUSING DEVELOPMENT
AGENCY HOUSING REVENUE
SERIES 281 MORGAN STANLEY DEAN
WITTER LOC++ 4.82% 1/1/19 $ 2,000,000
4,567,500
------------
TEXAS - 16.87%
3,600,000 AUSTIN TX UTILITIES SYSTEM
REVENUE SERIES G AMBAC
INSURED++ 5.62 11/15/11 3,600,000
3,000,000 CALHOUN COUNTY TX SOLID WASTE
DISPOSAL REVENUE FORMOSA
PLASTICS CORPORATION PROJECT++ 5.75 5/1/25 3,000,000
3,200,000 HARRIS COUNTY TX HOUSING
FINANCE CORPORATION ARBOR II
LIMITED PROJECT 4.00 10/2/00 3,200,000
3,770,000 HOUSTON TX WATER & SEWER
SYSTEMS REVENUE MUNICIPAL
TRUST RECIEPTS SERIES SG 120
FGIC INSURED++ 5.62 12/1/23 3,770,000
2,200,000 NORTH TEXAS HIGHER EDUCATION
AUTHORITY INCORPORATED STUDENT
LOAN REVENUE SERIES A AMBAC
INSURED++ 5.50 4/1/36 2,200,000
5,000,000 PASADENA TX INDEPENDENT SD
SERIES A PSFG 4.30 1/18/01 5,010,169
5,000,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY INCORPORATED
EDUCATIONAL FACILITIES REVENUE
SERIES Z MBIA INSURED++ 5.50 12/1/03 5,000,000
2,120,000 SOUTHWEST TEXAS HFA REVENUE
SERIES 165++ 5.67 9/15/31 2,120,000
5,000,000 TARRANT COUNTY TX HOUSING
FINANCE CORPORATION MFHR
SIERRA PROJECT FNMA INSURED++ 5.85 2/15/27 5,000,000
100,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
SFHR SERIES PT 136 MBIA
INSURED++ 5.67 3/1/17 100,000
3,000,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
MFHR SERIES 1215++ 5.82 12/1/39 3,000,000
1,795,000 TEXAS STATE GO PFA SERIES B 5.25 10/2/00 1,795,000
2,500,000 TEXAS STATE SERIES D++ 5.65 8/31/01 2,500,000
5,000,000 TEXAS STATE TAX & REVENUE
ANTICIPATION NOTES 5.25 8/31/01 5,040,822
13,195,000 TRAVIS COUNTY TX HEALTH
FACILITIES DEVELOPMENT
CORPORATION HEALTH REVENUE
SERIES 4 AMBAC INSURED++ 5.65 11/15/24 13,195,000
58,530,991
------------
UTAH - 2.25%
1,500,000 SALT LAKE CITY UT TRAN 5.00 12/29/00 1,502,185
6,300,000 SALT LAKE CITY UT AIRPORT
REVENUE SERIES A WESTDEUTSCHE
LANDESBANK LOC++ 5.55 7/1/20 6,300,000
7,802,185
------------
VIRGINIA - 1.84%
6,371,000 NORFOLK VA AIRPORT REVENUE 4.35 1/16/01 6,371,000
------------
WASHINGTON - 3.31%
1,000,000 LAKE TAPPS PARKWAY WA++ 5.50 12/1/19 1,000,000
2,500,000 SEATTLE WA IDR LONGVIEW FIBRE
COMPANY++ 6.05 1/1/03 2,500,000
300,000 WASHINGTON PUBLIC POWER SUPPLY
SYSTEM POWER REVENUE NUCLEAR
PROJECT #1 MUNICIPAL
SECURITIES TRUST RECEIPTS
SERIES CMC2++ 5.65 7/1/07 300,000
1,975,000 WASHINGTON STATE PUBLIC POWER
SUPPLY SYSTEM NUCLEAR PROJECT
#2 POWER REVENUE 6.00 7/1/01 1,998,474
300,000 WASHINGTON STATE HOUSING
FINANCE COMMISSION MFHR CANYON
LAKES II PROJECT U.S. BANK OF
WASHINGTON LOC++ 5.55 10/1/19 300,000
300,000 WASHINGTON STATE PUBLIC POWER
SUPPLY SYSTEM NUCLEAR PROJECT
#2 POWER REVENUE AMBAC
INSURED++ 5.65 7/1/07 300,000
1,000,000 WASHINGTON STATE HEFA REVENUE
MILL POINTE APARTMENTS PROJECT
SERIES A U.S. BANK TRUST N.A.
LOC++ 5.80 1/1/30 1,000,000
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PRINCIPAL SECURITY NAME INTEREST RATE DATE+ VALUE
<C> <S> <C> <C> <C>
WASHINGTON (continued)
$4,090,000 WASHINGTON STATE PUBLIC POWER
SUPPLY SYSTEM POWER REVENUE++ 5.62% 6/1/13 $ 4,090,000
11,488,474
------------
WISCONSIN - 0.87%
1,700,000 OCONTO FALLS WI PUBLIC SD BOND
ANTICIPATION NOTES STIFEL
NICHOLAS & COMPANY
INCORPORATED LOC 4.80 4/1/01 1,700,905
1,325,000 WISCONSIN SD CASH FLOW
MANAGEMENT PROGRAM COP
SERIES A-2 4.75 9/26/01 1,330,668
3,031,573
------------
347,678,503
TOTAL MUNICIPAL SECURITIES (COST
$347,678,503)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $347,678,503)* 100.18% $347,678,503
OTHER ASSETS AND LIABILITIES, NET (0.18) (627,265)
------- ------------
TOTAL NET ASSETS 100.00% $347,051,238
------- ------------
</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.
37
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 99.92%
U.S. TREASURY BILLS - 72.78%
$ 75,000,000 U.S. TREASURY BILLS 6.18%{::} 10/12/00 $ 74,875,208
135,000,000 U.S. TREASURY BILLS 6.30{::} 10/12/00 134,769,375
60,000,000 U.S. TREASURY BILLS 6.30{::} 10/12/00 59,897,417
75,000,000 U.S. TREASURY BILLS 6.16{::} 10/19/00 74,788,031
50,000,000 U.S. TREASURY BILLS 6.28{::} 11/9/00 49,678,583
20,000,000 U.S. TREASURY BILLS 6.29{::} 11/9/00 19,871,328
200,000,000 U.S. TREASURY BILLS 6.07{::} 11/9/00 198,748,112
26,000,000 U.S. TREASURY BILLS 6.29{::} 11/9/00 25,832,726
100,000,000 U.S. TREASURY BILLS 6.13{::} 11/16/00 99,250,000
75,000,000 U.S. TREASURY BILLS 6.31{::} 11/24/00 74,322,594
75,000,000 U.S. TREASURY BILLS 6.28{::} 11/24/00 74,327,011
142,880,000 U.S. TREASURY BILLS 6.08{::} 11/24/00 141,630,514
50,000,000 U.S. TREASURY BILLS 6.09{::} 11/30/00 49,514,070
50,000,000 U.S. TREASURY BILLS 6.15{::} 12/7/00 49,452,750
50,000,000 U.S. TREASURY BILLS 6.24{::} 12/7/00 49,450,917
200,000,000 U.S. TREASURY BILLS 6.14{::} 12/21/00 197,346,667
9,640,000 U.S. TREASURY BILLS 6.21{::} 12/28/00 9,501,502
75,000,000 U.S. TREASURY BILLS 6.20{::} 12/28/00 73,908,876
50,000,000 U.S. TREASURY BILLS 6.28{::} 1/11/01 49,157,632
50,000,000 U.S. TREASURY BILLS 6.35{::} 2/22/01 48,794,431
50,000,000 U.S. TREASURY BILLS 6.30{::} 3/1/01 48,743,750
1,603,861,494
--------------
U.S. TREASURY NOTES - 27.14%
35,000,000 U.S. TREASURY NOTES 4.50 9/30/00 35,000,000
135,000,000 U.S. TREASURY NOTES 4.00 10/31/00 134,763,323
75,000,000 U.S. TREASURY NOTES 4.00 10/31/00 74,869,019
14,500,000 U.S. TREASURY NOTES 5.75 10/31/00 14,493,840
15,500,000 U.S. TREASURY NOTES 5.75 10/31/00 15,492,338
25,000,000 U.S. TREASURY NOTES 5.75 11/15/00 24,978,802
50,000,000 U.S. TREASURY NOTES 5.75 11/15/00 49,967,774
25,000,000 U.S. TREASURY NOTES 4.63 11/30/00 24,932,780
100,000,000 U.S. TREASURY NOTES 5.63 11/30/00 99,918,221
25,000,000 U.S. TREASURY NOTES 4.63 12/31/00 24,882,813
50,000,000 U.S. TREASURY NOTES 4.50 1/31/01 49,710,038
34,500,000 U.S. TREASURY NOTES 4.50 1/31/01 34,297,573
15,000,000 U.S. TREASURY NOTES 5.00 2/28/01 14,926,208
598,232,729
--------------
2,202,094,223
TOTAL U.S. TREASURY SECURITIES (COST
$2,202,094,223)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,202,094,223)* 99.92% $2,202,094,223
OTHER ASSETS AND LIABILITIES, NET 0.08 1,689,518
------- --------------
TOTAL NET ASSETS 100.00% $2,203,783,741
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 54.88%
U.S. TREASURY BILLS - 30.17%
$ 27,500,000 U.S. TREASURY BILLS 5.85%{::} 10/12/00 $ 27,456,153
27,500,000 U.S. TREASURY BILLS 6.06{::} 11/9/00 27,328,156
55,000,000 U.S. TREASURY BILLS 6.11{::} 11/9/00 54,653,408
75,000,000 U.S. TREASURY BILLS 6.18{::} 11/9/00 74,518,271
55,000,000 U.S. TREASURY BILLS 6.10{::} 11/16/00 54,589,563
27,500,000 U.S. TREASURY BILLS 6.04{::} 11/24/00 27,261,132
30,000,000 U.S. TREASURY BILLS 6.08{::} 11/24/00 29,737,650
30,000,000 U.S. TREASURY BILLS 6.31{::} 11/24/00 29,729,259
55,000,000 U.S. TREASURY BILLS 6.17{::} 12/14/00 54,329,718
379,603,310
--------------
U.S. TREASURY NOTES - 24.71%
100,000,000 U.S. TREASURY NOTES 4.50 9/30/00 100,000,000
36,690,000 U.S. TREASURY NOTES 5.75 10/31/00 36,692,485
5,000,000 U.S. TREASURY NOTES 5.00 2/28/01 4,975,403
80,000,000 U.S. TREASURY NOTES 4.88 3/31/01 79,422,250
65,000,000 U.S. TREASURY NOTES 6.25 4/30/01 64,843,010
25,000,000 U.S. TREASURY NOTES 6.50 5/31/01 25,023,148
310,956,296
--------------
690,559,606
TOTAL U.S. TREASURY SECURITIES (COST
$690,559,606)
--------------
REPURCHASE AGREEMENTS - 44.85%
120,000,000 BEAR STEARNS & COMPANY
REPURCHASE AGREEMENT 6.45 10/2/00 120,000,000
150,000,000 BEAR STEARNS & COMPANY
REPURCHASE AGREEMENT 6.53 10/2/00 150,000,000
24,358,655 DEUTSCHE BANK SECURITIES
REPURCHASE AGREEMENT 6.43 10/2/00 24,358,655
145,000,000 GOLDMAN SACHS & COMPANY
REPURCHASE AGREEMENT 6.50 10/2/00 145,000,000
50,000,000 LEHMAN BROTHERS HOLDINGS
REPURCHASE AGREEMENT 6.50 10/2/00 50,000,000
75,000,000 SALOMON SMITH BARNEY
REPURCHASE AGREEMENT 6.45 10/2/00 75,000,000
564,358,655
TOTAL REPURCHASE AGREEMENTS (COST
$564,358,655)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,254,918,261)* 99.73% $1,254,918,261
OTHER ASSETS AND LIABILITIES, NET 0.27 3,353,678
------- --------------
TOTAL NET ASSETS 100.00% $1,258,271,939
------- --------------
</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.
39
<PAGE>
MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C>
-----------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT
AMORTIZED COST...... $ 2,370,311,553 $ 2,886,584,779
CASH................... 966,430 52,124
RECEIVABLE FOR INTEREST
AND OTHER
RECEIVABLES.......... 19,321,015 15,280,969
RECEIVABLE FOR
INVESTMENTS SOLD..... 3,510,720 0
PREPAID EXPENSES AND
OTHER ASSETS......... 0 540,946
----------------- -----------------
TOTAL ASSETS............. 2,394,109,718 2,902,458,818
----------------- -----------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED............ 0 0
PAYABLE TO INVESTMENT
ADVISOR AND
AFFILIATES........... 1,232,797 1,212,773
PAYABLE TO OTHER
RELATED PARTIES...... 889,350 655,065
ACCRUED EXPENSES AND
OTHER LIABILITIES.... 352,083 424,785
DIVIDENDS PAYABLE...... 1,020,269 13,992,992
----------------- -----------------
TOTAL LIABILITIES........ 3,494,499 16,285,615
----------------- -----------------
TOTAL NET ASSETS......... $ 2,390,615,219 $ 2,886,173,203
----------------- -----------------
NET ASSETS CONSIST OF:
-----------------------------------------------------------------
PAID-IN CAPITAL........ $ 2,391,503,037 $ 2,886,361,439
UNDISTRIBUTED NET
INVESTMENT INCOME.... 0 0
UNDISTRIBUTED NET
REALIZED GAIN (LOSS)
ON INVESTMENTS....... (887,818) (188,236)
----------------- -----------------
TOTAL NET ASSETS......... $ 2,390,615,219 $ 2,886,173,203
----------------- -----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-----------------------------------------------------------------
NET ASSETS - CLASS A..... $ 2,245,220,477 $ 79,492,653
SHARES OUTSTANDING -
CLASS A................ 2,246,104,928 79,497,096
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - CLASS A........ $ 1.00 $ 1.00
NET ASSETS - CLASS B..... N/A N/A
SHARES OUTSTANDING -
CLASS B................ N/A N/A
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - CLASS B........ N/A N/A
NET ASSETS - SERVICE
CLASS.................. $ 145,394,742 $ 2,806,680,550
SHARES OUTSTANDING -
SERVICE CLASS.......... 145,403,078 2,807,042,950
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - SERVICE
CLASS.................. $ 1.00 $ 1.00
----------------- -----------------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 14, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED)
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA NATIONAL TAX-FREE 100% TREASURY TREASURY PLUS
MONEY MARKET FUND(1) MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT
AMORTIZED COST...... $ 64,520,983 $ 15,769,460,689 $ 347,678,503 $ 2,202,094,223 $ 1,254,918,261
CASH................... 69,268 31,078 192,614 3,424 1,506,404
RECEIVABLE FOR INTEREST
AND OTHER
RECEIVABLES.......... 370,393 118,145,107 2,781,499 10,002,821 7,717,268
RECEIVABLE FOR
INVESTMENTS SOLD..... 0 0 0 0 0
PREPAID EXPENSES AND
OTHER ASSETS......... 0 0 0 0 0
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL ASSETS............. 64,960,644 15,887,636,874 350,652,616 2,212,100,468 1,264,141,933
-------------------- ----------------- ----------------- ----------------- -----------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED............ 1,263,525 0 3,000,367 0 0
PAYABLE TO INVESTMENT
ADVISOR AND
AFFILIATES........... 29,630 8,237,636 139,534 714,863 615,176
PAYABLE TO OTHER
RELATED PARTIES...... 5,080 5,574,946 174,571 31,013 15,390
ACCRUED EXPENSES AND
OTHER LIABILITIES.... 6,700 2,669,073 231,788 235,886 214,962
DIVIDENDS PAYABLE...... 8,452 4,699,978 55,118 7,334,965 5,024,466
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL LIABILITIES........ 1,313,387 21,181,633 3,601,378 8,316,727 5,869,994
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL NET ASSETS......... $ 63,647,257 $ 15,866,455,241 $ 347,051,238 $ 2,203,783,741 $ 1,258,271,939
-------------------- ----------------- ----------------- ----------------- -----------------
NET ASSETS CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL........ $ 63,647,257 $ 15,866,085,746 $ 347,059,240 $ 2,204,581,786 $ 1,258,297,609
UNDISTRIBUTED NET
INVESTMENT INCOME.... 0 0 0 168,885 0
UNDISTRIBUTED NET
REALIZED GAIN (LOSS)
ON INVESTMENTS....... 0 369,495 (8,002) (966,930) (25,670)
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL NET ASSETS......... $ 63,647,257 $ 15,866,455,241 $ 347,051,238 $ 2,203,783,741 $ 1,258,271,939
-------------------- ----------------- ----------------- ----------------- -----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
---------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A..... $ 63,647,257 $ 13,600,572,076 $ 347,051,238 $ 83,362,406 $ 1,258,271,939
SHARES OUTSTANDING -
CLASS A................ 63,647,257 13,600,011,617 347,066,372 83,357,071 1,258,334,883
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - CLASS A........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
NET ASSETS - CLASS B..... N/A $ 2,265,883,165 N/A N/A N/A
SHARES OUTSTANDING -
CLASS B................ N/A 2,265,792,136 N/A N/A N/A
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - CLASS B........ N/A $ 1.00 N/A N/A N/A
NET ASSETS - SERVICE
CLASS.................. N/A N/A N/A $ 2,120,421,335 N/A
SHARES OUTSTANDING -
SERVICE CLASS.......... N/A N/A N/A 2,121,223,431 N/A
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE - SERVICE
CLASS.................. N/A N/A N/A $ 1.00 N/A
-------------------- ----------------- ----------------- ----------------- -----------------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 14, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
41
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C>
-----------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 46,212,900 $ 108,359,520
----------------- -----------------
TOTAL INVESTMENT
INCOME................. 46,212,900 108,359,520
----------------- -----------------
EXPENSES
ADVISORY FEES.......... 3,616,624 5,898,977
ADMINISTRATION FEES.... 1,808,311 2,528,134
CUSTODY................ 241,108 337,084
SHAREHOLDER SERVICING
FEES................. 2,883,732 71,460
PORTFOLIO ACCOUNTING
FEES................. 78,360 101,125
TRANSFER AGENT
CLASS A.............. 369,118 2,858
CLASS B.............. N/A N/A
SERVICE CLASS ....... 5,205 331,368
DISTRIBUTION FEES
CLASS A.............. 0 0
CLASS B.............. N/A N/A
SERVICE CLASS ....... 0 0
LEGAL AND AUDIT FEES... 89,266 33,136
REGISTRATION FEES...... 40,929 154,698
DIRECTORS' FEES........ 2,664 2,663
SHAREHOLDER REPORTS.... 70,746 104,004
OTHER.................. 37,269 42,484
----------------- -----------------
TOTAL EXPENSES........... 9,243,332 9,607,991
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (1,511,646) (1,109,520)
----------------- -----------------
NET EXPENSES............. 7,731,686 8,498,471
----------------- -----------------
NET INVESTMENT INCOME.... 38,481,214 99,861,049
----------------- -----------------
----------------- -----------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (223,673) (2,599)
----------------- -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 38,257,541 $ 99,858,450
----------------- -----------------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 14, 2000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
<PAGE>
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA NATIONAL TAX-FREE 100% TREASURY TREASURY PLUS
MONEY MARKET FUND(1) MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 366,951 $ 496,220,578 $ 7,478,674 $ 49,128,055 $ 36,160,767
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL INVESTMENT
INCOME................. 366,951 496,220,578 7,478,674 49,128,055 36,160,767
-------------------- ----------------- ----------------- ----------------- -----------------
EXPENSES
ADVISORY FEES.......... 25,188 30,479,969 428,292 2,850,804 2,031,575
ADMINISTRATION FEES.... 12,594 11,429,988 256,975 1,221,773 870,674
CUSTODY................ 1,679 1,523,998 34,263 162,903 116,090
SHAREHOLDER SERVICING
FEES................. 20,990 19,049,980 428,292 32,674 1,451,125
PORTFOLIO ACCOUNTING
FEES................. 9,236 304,800 92,511 63,532 46,436
TRANSFER AGENT
CLASS A.............. 2,519 8,639,078 92,511 3,921 15,092
CLASS B.............. N/A 194,910 N/A N/A N/A
SERVICE CLASS ....... N/A N/A N/A 40,072 N/A
DISTRIBUTION FEES
CLASS A.............. 0 0 0 0 0
CLASS B.............. N/A 7,309,107 N/A N/A N/A
SERVICE CLASS ....... N/A N/A 0 0 N/A
LEGAL AND AUDIT FEES... 1,954 477,909 15,647 15,622 48,336
REGISTRATION FEES...... 2,879 928,396 57,133 31,482 57,246
DIRECTORS' FEES........ 684 2,664 2,664 2,664 2,664
SHAREHOLDER REPORTS.... 1,799 620,412 34,548 43,049 37,542
OTHER.................. 1,080 256,610 44,222 69,991 28,440
-------------------- ----------------- ----------------- ----------------- -----------------
TOTAL EXPENSES........... 80,602 81,217,821 1,487,058 4,538,487 4,705,220
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (13,434) (15,996,780) (373,471) (766,980) (932,203)
-------------------- ----------------- ----------------- ----------------- -----------------
NET EXPENSES............. 67,168 65,221,041 1,113,587 3,771,507 3,773,017
-------------------- ----------------- ----------------- ----------------- -----------------
NET INVESTMENT INCOME.... 299,783 430,999,537 6,365,087 45,356,548 32,387,750
-------------------- ----------------- ----------------- ----------------- -----------------
-------------------- ----------------- ----------------- ----------------- -----------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 0 360,685 (7,998) 213,357 19,014
-------------------- ----------------- ----------------- ----------------- -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 299,783 $ 431,360,222 $ 6,357,089 $ 45,569,905 $ 32,406,764
-------------------- ----------------- ----------------- ----------------- -----------------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 14, 2000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
43
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE
MONEY MARKET FUND
------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C>
-----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS....................................................... $ 2,540,587,408 $ 2,246,122,877
OPERATIONS:
NET INVESTMENT INCOME.................................................... 38,481,214 59,643,253
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS.......................... (223,673) (372,792)
------------------ ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... 38,257,541 59,270,461
------------------ ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A................................................................ (36,719,111) (59,135,379)
ADMINISTRATIVE CLASS .................................................. N/A N/A
CLASS B/CLASS E........................................................ N/A N/A
INSTITUTIONAL CLASS.................................................... N/A N/A
S SHARES/SERVICE CLASS................................................. (1,762,103) (507,874)(1)
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A................................................................ 0 0
ADMINISTRATIVE CLASS .................................................. N/A N/A
CLASS B/CLASS E........................................................ N/A N/A
INSTITUTIONAL CLASS.................................................... N/A N/A
S SHARES/SERVICE CLASS ................................................ 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A...................................... 2,060,651,751 3,663,360,428
REINVESTMENT OF DIVIDENDS - CLASS A...................................... 31,009,536 50,547,941
COST OF SHARES REDEEMED - CLASS A........................................ (2,311,115,667) (3,494,768,260)
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A................................................... (219,454,380) 219,140,109
------------------ ---------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATIVE CLASS ........................ N/A N/A
REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS ........................ N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE CLASS .......................... N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS ..................................... N/A N/A
------------------ ---------------
PROCEEDS FROM SHARES SOLD - CLASS B/CLASS E.............................. N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E.............................. N/A N/A
COST OF SHARES REDEEMED - CLASS B/CLASS E................................ N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/ CLASS E.......................................... N/A N/A
------------------ ---------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS.......................... N/A N/A
REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS.......................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS............................ N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS....................................... N/A N/A
------------------ ---------------
PROCEEDS FROM SHARES SOLD - CLASS S/SERVICE CLASS ....................... 130,917,926 102,151,332(1)
REINVESTMENT OF DIVIDENDS - CLASS S/SERVICE CLASS ....................... 1,735,753 310,610(1)
COST OF SHARES REDEEMED - CLASS S/SERVICE CLASS ......................... (62,947,815) (26,764,728)(1)
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/ SERVICE CLASS ................................... 69,705,864 75,697,214(1)
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS...................................... (149,972,189) 294,464,531
------------------ ---------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS.......................................................... $ 2,390,615,219 $ 2,540,587,408
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A.................................................... 2,060,651,751 3,663,360,394
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A..................... 31,009,536 50,547,946
SHARES REDEEMED - CLASS A................................................ (2,311,115,667) (3,494,768,069)
------------------ ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A.................... (219,454,380) 219,140,271
------------------ ---------------
SHARES SOLD - ADMINISTRATIVE CLASS ...................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS ....... N/A N/A
SHARES REDEEMED - ADMINISTRATIVE CLASS .................................. N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATIVE CLASS ...... N/A N/A
------------------ ---------------
SHARES SOLD - CLASS B/CLASS E............................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E............. N/A N/A
SHARES REDEEMED - CLASS B/CLASS E........................................ N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B/CLASS E............ N/A N/A
------------------ ---------------
SHARES SOLD - INSTITUTIONAL CLASS........................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS......... N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS.................................... N/A N/A
------------------ ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS........ N/A N/A
------------------ ---------------
SHARES SOLD - CLASS S/SERVICE CLASS ..................................... 130,917,926 102,151,332(1)
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS S/SERVICE CLASS ...... 1,735,753 310,610(1)
SHARES REDEEMED - CLASS S/SERVICE CLASS ................................. (62,947,815) (26,764,728)(1)
------------------ ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS S/SERVICE CLASS ..... 69,705,864 75,697,214(1)
------------------ ---------------
ENDING BALANCE OF UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME.... $ 0 $ 0
------------------ ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
GOVERNMENT MONEY MARKET FUND MONEY MARKET FUND
------------------------------------------------------------ -----------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (3) MAY 31, 1999 SEPTEMBER 30, 2000 (2)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 3,492,915,705 $ 3,368,533,822 $ 2,260,207,846 $ 0
OPERATIONS:
NET INVESTMENT
INCOME............... 99,861,049 141,286,219 133,990,508 299,783
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... (2,599) (184,488) 204,634 0
------------------ ----------------- ---------------- -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 99,858,450 141,101,731 134,195,142 299,783
------------------ ----------------- ---------------- -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (1,626,849) (1,181,705)(1) N/A (299,783)
ADMINISTRATIVE
CLASS .............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A N/A
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
S SHARES/SERVICE
CLASS............... (98,234,200) (140,104,514) (133,990,508) N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0 0 0
ADMINISTRATIVE
CLASS .............. N/A N/A N/A N/A
CLASS B/CLASS E...... N/A N/A N/A N/A
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
S SHARES/SERVICE
CLASS .............. 0 0 0 N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 158,388,507 139,610,265(1) N/A 76,515,173
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 352,980 494,841(1) N/A 291,194
COST OF SHARES REDEEMED
- CLASS A............ (138,208,907) (81,141,804)(1) N/A (13,159,110)
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 20,532,580 58,963,302(1) N/A 63,647,257
------------------ ----------------- ---------------- -----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
COST OF SHARES REDEEMED
- ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE
CLASS ................. N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A
COST OF SHARES REDEEMED
-
CLASS B/CLASS E...... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
PROCEEDS FROM SHARES
SOLD -
CLASS S/SERVICE
CLASS ............... 16,549,091,177 31,097,729,447 26,091,666,224 N/A
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 14,614,755 5,327,578 29,201,156 N/A
COST OF SHARES REDEEMED
- CLASS S/SERVICE
CLASS ............... (17,190,978,415) (31,037,453,956) (25,012,746,038) N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/
SERVICE CLASS ......... (627,272,483) 65,603,069 1,108,121,342 N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (606,742,502) 124,381,883 1,108,325,976 63,647,257
------------------ ----------------- ---------------- -----------------
NET ASSETS:
----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 2,886,173,203 $ 3,492,915,705 $ 3,368,533,822 $ 63,647,257
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 158,388,507 139,611,479(1) N/A 76,515,173
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 352,980 494,841(1) N/A 291,194
SHARES REDEEMED -
CLASS A.............. (138,208,907) (81,141,804)(1) N/A (13,159,110)
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 20,532,580 58,964,516(1) N/A 63,647,257
------------------ ----------------- ---------------- -----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE
CLASS ................. N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
SHARES SOLD -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A
------------------ ----------------- ---------------- -----------------
SHARES SOLD -
CLASS S/SERVICE
CLASS ............... 16,549,091,177 31,097,729,447 26,091,666,224 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 14,614,755 5,327,578 29,201,156 N/A
SHARES REDEEMED -
CLASS S/SERVICE
CLASS ............... (17,190,978,415) (31,037,453,956) (25,012,746,038) N/A
------------------ ----------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS ................. (627,272,483) 65,603,069 1,108,121,342 N/A
------------------ ----------------- ---------------- -----------------
ENDING BALANCE OF
UNDISTRIBUTED
(OVERDISTRIBUTED) NET
INVESTMENT INCOME...... $ 0 $ 0 $ (56,270) $ 0
------------------ ----------------- ---------------- -----------------
<CAPTION>
MONEY MARKET FUND
----------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (4)
<S> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 15,178,597,286 $ 10,296,401,223
OPERATIONS:
NET INVESTMENT
INCOME............... 430,999,537 587,993,347
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... 360,685 (9,727)
------------------ -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 431,360,222 587,983,620
------------------ -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (382,165,350) (530,116,391)
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... (48,834,187) (27,568,972)
INSTITUTIONAL CLASS.... N/A N/A
S SHARES/SERVICE
CLASS............... 0 (30,307,984)(5)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0
ADMINISTRATIVE
CLASS .............. N/A N/A
CLASS B/CLASS E...... 0 0
INSTITUTIONAL CLASS.... N/A N/A
S SHARES/SERVICE
CLASS .............. 0 0
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 4,810,576,233 9,011,593,439
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 371,429,841 545,615,046
COST OF SHARES REDEEMED
- CLASS A............ (5,023,506,443) (5,253,257,204)
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 158,499,631 4,303,951,281
------------------ -----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS ............... N/A N/A
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A
COST OF SHARES REDEEMED
- ADMINISTRATIVE
CLASS ............... N/A N/A
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE
CLASS ................. N/A N/A
------------------ -----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... 2,123,738,346 2,897,154,498
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... 49,017,749 28,165,021
COST OF SHARES REDEEMED
-
CLASS B/CLASS E...... (1,643,758,456) (1,188,609,048)
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/
CLASS E................ 528,997,639 1,736,710,471
------------------ -----------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... N/A N/A
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... N/A N/A
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A
------------------ -----------------
PROCEEDS FROM SHARES
SOLD -
CLASS S/SERVICE
CLASS ............... 0 1,737,202,703(5)
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 0 32,669,252(5)
COST OF SHARES REDEEMED
- CLASS S/SERVICE
CLASS ............... 0 (2,928,327,917)(5)
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/
SERVICE CLASS ......... 0 (1,158,455,962)(5)
------------------ -----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 687,857,955 4,882,196,063
------------------ -----------------
NET ASSETS:
-------------------------
ENDING NET ASSETS........ $ 15,866,455,241 $ 15,178,597,286
SHARE ISSUED AND REDEEMED
SHARES SOLD -
CLASS A.............. 4,810,576,233 9,011,738,160
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 371,429,841 545,615,046
SHARES REDEEMED -
CLASS A.............. (5,023,506,443) (5,253,257,204)
------------------ -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 158,499,631 4,304,096,002
------------------ -----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS ............... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A
------------------ -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE
CLASS ................. N/A N/A
------------------ -----------------
SHARES SOLD -
CLASS B/CLASS E...... 2,123,738,346 2,897,238,524
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... 49,017,749 28,165,021
SHARES REDEEMED -
CLASS B/CLASS E...... (1,643,758,456) (1,188,609,048)
------------------ -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B/CLASS E........ 528,997,639 1,736,794,497
------------------ -----------------
SHARES SOLD -
INSTITUTIONAL CLASS.... N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A
SHARES REDEEMED -
INSTITUTIONAL CLASS.... N/A N/A
------------------ -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A
------------------ -----------------
SHARES SOLD -
CLASS S/SERVICE
CLASS ............... 0 1,737,202,703(5)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 0 32,669,252(5)
SHARES REDEEMED -
CLASS S/SERVICE
CLASS ............... 0 (2,928,411,900)(5)
------------------ -----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS ................. 0 (1,158,539,945)(5)
------------------ -----------------
ENDING BALANCE OF
UNDISTRIBUTED
(OVERDISTRIBUTED) NET
INVESTMENT INCOME...... $ 0 $ 0
------------------ -----------------
</TABLE>
45
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
-----------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 (6) MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS................................................ $ 324,451,950 $ 1,060,762,128 $ 1,021,763,286
OPERATIONS:
NET INVESTMENT INCOME............................................. 6,365,087 16,020,012 34,234,759
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS................... (7,998) 116,407 6,112
------------------ ----------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ 6,357,089 16,136,419 34,240,871
------------------ ----------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A......................................................... (6,365,087) (2,853,582) (1,157,118)
ADMINISTRATIVE CLASS ........................................... N/A N/A N/A
CLASS B/CLASS E................................................. N/A N/A N/A
INSTITUTIONAL CLASS............................................. N/A (13,166,430)(9) (33,067,705)
S SHARES/SERVICE CLASS.......................................... N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A......................................................... 0 0 (628)
ADMINISTRATIVE CLASS ........................................... N/A N/A N/A
CLASS B/CLASS E................................................. N/A N/A N/A
INSTITUTIONAL CLASS............................................. N/A 0(9) (16,474)
S SHARES/SERVICE CLASS ......................................... N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............................... 394,773,138 399,047,425 51,468,576
REINVESTMENT OF DIVIDENDS - CLASS A............................... 6,379,249 2,808,698 1,155,538
COST OF SHARES REDEEMED - CLASS A................................. (378,545,101) (118,582,175) (55,521,236)
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A............................................ 22,607,286 283,273,948 (2,897,122)
------------------ ----------------- ---------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATIVE CLASS ................. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS ................. N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE CLASS ................... N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS .............................. N/A N/A N/A
------------------ ----------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS B/CLASS E....................... N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E....................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS B/CLASS E......................... N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/CLASS E.................................... N/A N/A N/A
------------------ ----------------- ---------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS................... N/A 1,122,030,145(9) 4,895,924,473
REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS................... N/A 1,817,382(9) 8,171,310
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS..................... N/A (2,143,548,060)(9) (4,862,198,765)
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS................................ N/A (1,019,700,533)(9) 41,897,018
------------------ ----------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS S/SERVICE CLASS ................ N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS S/SERVICE CLASS ................ N/A N/A N/A
COST OF SHARES REDEEMED - CLASS S/SERVICE CLASS .................. N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS ............................. N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS............................... 22,599,288 (736,310,178) 38,998,842
------------------ ----------------- ---------------
NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS................................................... $ 347,051,238 $ 324,451,950 $ 1,060,762,128
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A............................................. 394,773,138 397,894,582 51,468,576
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A.............. 6,379,249 2,808,698 1,155,538
SHARES REDEEMED - CLASS A......................................... (378,545,101) (117,425,136) (55,521,236)
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A............. 22,607,286 283,278,144 (2,897,122)
------------------ ----------------- ---------------
SHARES SOLD - ADMINISTRATIVE CLASS ............................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE
CLASS .......................................................... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATIVE CLASS ........................... N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATIVE
CLASS ............................................................ N/A N/A N/A
------------------ ----------------- ---------------
SHARES SOLD - CLASS B/CLASS E..................................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E...... N/A N/A N/A
SHARES REDEEMED - CLASS B/CLASS E................................. N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B/CLASS E..... N/A N/A N/A
------------------ ----------------- ---------------
SHARES SOLD - INSTITUTIONAL CLASS................................. N/A 1,123,182,803(9) 4,895,924,473
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
INSTITUTIONAL CLASS............................................. N/A 1,817,382(9) 8,171,310
SHARES REDEEMED - INSTITUTIONAL CLASS............................. N/A (2,144,579,032)(9) (4,862,198,765)
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS............................................... N/A (1,019,578,847)(9) 41,897,018
------------------ ----------------- ---------------
SHARES SOLD - CLASS S/SERVICE CLASS .............................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS S/SERVICE
CLASS .......................................................... N/A N/A N/A
SHARES REDEEMED - CLASS S/SERVICE CLASS .......................... N/A N/A N/A
------------------ ----------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS S/SERVICE
CLASS ............................................................ N/A N/A N/A
------------------ ----------------- ---------------
ENDING BALANCE OF UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT
INCOME............................................................ $ 0 $ 0 $ (126,904)
------------------ ----------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
100% TREASURY MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------- -------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE TEN FOR THE FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000 MAY 31, 1999 SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 1,704,296,646 $ 1,548,548,589 $ 1,440,515,062 $ 1,150,181,439 $ 2,170,334,965
OPERATIONS:
NET INVESTMENT
INCOME............... 45,356,548 66,843,765 69,668,576 32,387,750 83,531,165
NET REALIZED GAIN
(LOSS) ON SALE OF
INVESTMENTS.......... 213,357 (856,341) 101,345 19,014 (61,221)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 45,569,905 65,987,424 69,769,921 32,406,764 83,469,944
------------------ ---------------- ---------------- ------------------ ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (730,812) (18,741)(1) N/A (32,387,750) (36,085,306)
ADMINISTRATIVE
CLASS ............. N/A N/A N/A N/A (2,208,198)(8)
CLASS B/CLASS E...... N/A N/A N/A N/A (13,974,099)(7)
INSTITUTIONAL CLASS.... N/A N/A N/A N/A (18,902,234)(8)
S SHARES/SERVICE
CLASS.............. (44,625,736) (66,825,024) (69,668,576) N/A (12,361,328)(8)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0(1) N/A 0 0
ADMINISTRATIVE
CLASS ............. N/A N/A N/A N/A N/A(8)
CLASS B/CLASS E...... N/A N/A N/A N/A N/A
INSTITUTIONAL CLASS.... N/A N/A N/A N/A N/A(8)
S SHARES/SERVICE
CLASS ............. 0 0 (536,906) N/A N/A(8)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 115,049,417 2,321,689(1) N/A 2,010,582,134 3,231,239,832
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 718,882 18,157(1) N/A 3,449,773 5,214,454
COST OF SHARES REDEEMED
- CLASS A............ (34,457,832) (293,242)(1) N/A (1,905,960,421) (2,630,129,980)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 81,310,467 2,046,604(1) N/A 108,071,486 606,324,306
------------------ ---------------- ---------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A 85,867,402(8)
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A 2,358,799(8)
COST OF SHARES REDEEMED
- ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A (188,319,974)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE
CLASS ................. N/A N/A N/A N/A (100,093,773)(8)
------------------ ---------------- ---------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A 841,125,549(7)
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A 0(7)
COST OF SHARES REDEEMED
-
CLASS B/CLASS E...... N/A N/A N/A N/A (1,425,568,024)(7)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ N/A N/A N/A N/A (584,442,475)(7)
------------------ ---------------- ---------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A 30,435,823,746(8)
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A 8,073,323(8)
COST OF SHARES REDEEMED
-
INSTITUTIONAL CLASS.... N/A N/A N/A N/A (30,937,890,268)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A (493,993,199)(8)
------------------ ---------------- ---------------- ------------------ ----------------
PROCEEDS FROM SHARES
SOLD -
CLASS S/SERVICE
CLASS ............... 6,118,479,177 18,415,108,001 19,545,459,290 N/A 1,962,443,790(8)
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 9,676,635 9,266,578 20,981,138 N/A 4,541,738(8)
COST OF SHARES REDEEMED
- CLASS S/SERVICE
CLASS ............... (5,710,192,541) (18,269,816,785) (19,457,971,340) N/A (2,414,872,692)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS S/SERVICE
CLASS ................. 417,963,271 154,557,794 108,469,088 N/A (447,887,164)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 499,487,095 155,748,057 108,033,527 108,090,500 (1,020,153,526)
------------------ ---------------- ---------------- ------------------ ----------------
NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS........ $ 2,203,783,741 $ 1,704,296,646 $ 1,548,548,589 $ 1,258,271,939 $ 1,150,181,439
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 115,049,417 2,321,689(1) N/A 2,010,582,134 3,231,234,356
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 718,882 18,157(1) N/A 3,449,773 5,214,454
SHARES REDEEMED -
CLASS A.............. (34,457,832) (293,242)(1) N/A (1,905,960,421) (2,630,130,030)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 81,310,467 2,046,604(1) N/A 108,071,486 606,318,780
------------------ ---------------- ---------------- ------------------ ----------------
SHARES SOLD -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A 85,867,402(8)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A 2,358,799(8)
SHARES REDEEMED -
ADMINISTRATIVE
CLASS ............... N/A N/A N/A N/A (188,320,696)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
ADMINISTRATIVE
CLASS ................. N/A N/A N/A N/A (100,094,495)(8)
------------------ ---------------- ---------------- ------------------ ----------------
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A N/A 841,125,549(7)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A N/A 0(7)
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A N/A (1,425,570,489)(7)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A N/A (584,444,940)(7)
------------------ ---------------- ---------------- ------------------ ----------------
SHARES SOLD -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A 30,435,823,746(8)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A 8,073,323(8)
SHARES REDEEMED -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A (30,938,020,810)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS.... N/A N/A N/A N/A (494,123,741)(8)
------------------ ---------------- ---------------- ------------------ ----------------
SHARES SOLD -
CLASS S/SERVICE
CLASS ............... 6,118,479,177 18,415,108,001 19,545,459,290 N/A 1,962,443,790(8)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS ............... 9,676,635 9,266,578 20,981,138 N/A 4,541,738(8)
SHARES REDEEMED -
CLASS S/SERVICE
CLASS ............... (5,710,192,541) (18,269,816,785) (19,457,971,340) N/A (2,414,888,553)(8)
------------------ ---------------- ---------------- ------------------ ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS ................. 417,963,271 154,557,794 108,469,088 N/A (447,903,025)(8)
------------------ ---------------- ---------------- ------------------ ----------------
ENDING BALANCE OF
UNDISTRIBUTED
(OVERDISTRIBUTED) NET
INVESTMENT INCOME...... $ 168,885 $ 168,885 $ 0 $ 0 $ 0
------------------ ---------------- ---------------- ------------------ ----------------
</TABLE>
47
<PAGE>
MONEY MARKET FUNDS NOTES TO STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
(1) This class of shares commenced operations on November 8, 1999.
(2) This fund commenced operations on August 14, 2000.
(3) "Proceeds from shares sold" includes $59,954,527 for Class A, and "Shares
sold" includes 59,955,742 for Class A as a result of the consolidation of
the Stagecoach Government Money Market Fund.
(4) "Proceeds from shares sold" includes $993,575,038 for Class A, and "Shares
sold" includes 993,575,038 for Class A as a result of the consolidation of
the Norwest Advantage Ready Cash Investment Fund. "Proceeds from shares
sold" includes $578,292,460 for Class A, and "Shares sold" includes
578,398,886 for Class A as a result of the consolidation of the Stagecoach
Prime Money Market Fund. "Proceeds from shares sold" includes $2,137,068
for Class B, and "Shares sold" includes 2,137,109 for Class B as a result
of the consolidation of the Norwest Advantage Ready Cash Investment Fund.
(5) Class S became Class B on November 8, 1999.
(6) "Proceeds from shares sold" includes $95,768,949 for Class A, and "Shares
sold" includes 95,773,144 for Class A as a result of the consolidation of
the Stagecoach National Tax-Free Money Market Fund.
(7) Class E became Class A on November 8, 1999.
(8) Administrative, Institutional and Service class shares of the Stagecoach
Treasury Plus Money Market Fund merged into the Wells Fargo Treasury Plus
Institutional Money Market Fund on November 8, 1999.
(9) This Class of shares merged into the National Tax Free Institutional Money
Market Fund on November 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
49
<PAGE>
MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS
NET ASSET NET UNREALIZED FROM NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT
SHARE INCOME INVESTMENTS INCOME
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.02 0.00 (0.02)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.02 0.00 (0.02)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.02 0.00 (0.02)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.03 0.00 (0.03)
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... $ 1.00 0.01 0.00 (0.01)
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... $ 1.00 0.02 0.00 (0.02)
GOVERNMENT MONEY MARKET FUND
----------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... $ 1.00 0.02 0.00 (0.02)
MINNESOTA MONEY MARKET FUND(5)
----------------------------------------------------------------------------
CLASS A
AUGUST 14, 2000(4) TO
SEPTEMBER 30, 2000..... $ 1.00 0.01 0.00 (0.01)
MONEY MARKET FUND
----------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.05 0.00 (0.05)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.05 0.00 (0.05)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.05 0.00 (0.05)
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... $ 1.00 0.02 0.00 (0.02)
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... $ 1.00 0.03 0.00 (0.03)
CLASS B
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000(6)...... $ 1.00 0.04 0.00 (0.04)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.04 0.00 (0.04)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.04 0.00 (0.04)
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... $ 1.00 0.02 0.00 (0.02)
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... $ 1.00 0.03 0.00 (0.03)
NATIONAL TAX-FREE MONEY MARKET FUND
----------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.02 0.00 (0.02)
JUNE 1, 1999 TO
MARCH 31, 2000(7)...... $ 1.00 0.03 0.00 (0.03)
JUNE 1, 1998 TO MAY 31,
1999................... $ 1.00 0.03 0.00 (0.03)
JUNE 1, 1997 TO MAY 31,
1998................... $ 1.00 0.03 0.00 (0.03)
JUNE 1, 1996 TO MAY 31,
1997................... $ 1.00 0.03 0.00 (0.03)
JUNE 1, 1995 TO MAY 31,
1996................... $ 1.00 0.03 0.00 (0.03)
100% TREASURY MONEY MARKET FUND
----------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... $ 1.00 0.02 0.00 (0.02)
TREASURY PLUS MONEY MARKET FUND(8)
----------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 0.00 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.04 0.00 (0.04)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.05 0.00 (0.05)
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 1.00 0.05 0.00 (0.05)
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... $ 1.00 0.02 0.00 (0.02)
OCTOBER 1, 1995(4) TO
SEPTEMBER 30, 1996..... $ 1.00 0.05 0.00 (0.05)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------- NET ASSETS AT
REALIZED VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
GAINS SHARE INCOME EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 3.18% 0.65% 0.78% 1.60% $ 2,245,220
APRIL 1, 1999 TO
MARCH 31, 2000......... 0.00 $ 1.00 2.48% 0.65% 0.96% 2.51% $ 2,464,890
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 $ 1.00 2.46% 0.65% 1.03% 2.49% $ 2,246,123
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 $ 1.00 2.85% 0.65% 1.05% 2.91% $ 2,118,881
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... 0.00 $ 1.00 2.72% 0.65% 1.03% 1.36% $ 1,384,310
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... 0.00 $ 1.00 2.69% 0.65% 1.02% 2.04% $ 1,161,431
GOVERNMENT MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.69% 0.75% 0.81% 2.87% $ 79,493
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... 0.00 $ 1.00 4.99% 0.75% 0.81% 1.99% $ 58,960
MINNESOTA MONEY MARKET FUND(5)
-------------------------------------------------------------------------------------------------------------------------
CLASS A
AUGUST 14, 2000(4) TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 3.57% 0.80% 0.96% 0.47% $ 63,647
MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.75% 0.76% 0.98% 2.91% $ 13,600,572
APRIL 1, 1999 TO
MARCH 31, 2000......... 0.00 $ 1.00 4.78% 0.75% 1.01% 4.84% $ 13,441,754
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 $ 1.00 4.67% 0.75% 0.93% 4.79% $ 9,137,812
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 $ 1.00 4.95% 0.75% 0.93% 5.07% $ 6,711,584
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... 0.00 $ 1.00 4.71% 0.75% 0.90% 2.36% $ 4,640,148
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... 0.00 $ 1.00 4.66% 0.75% 0.88% 3.55% $ 3,799,908
CLASS B
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.01% 1.51% 1.62% 2.53% $ 2,265,883
APRIL 1, 1999 TO
MARCH 31, 2000(6)...... 0.00 $ 1.00 4.06% 1.46% 1.65% 4.10% $ 1,736,843
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 $ 1.00 4.01% 1.42% 1.62% 4.10% $ 1,158,589
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 $ 1.00 4.28% 1.42% 1.62% 4.37% $ 951,172
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... 0.00 $ 1.00 4.02% 1.43% 1.56% 2.02% $ 707,781
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(3) ............... 0.00 $ 1.00 3.98% 1.42% 1.55% 3.03% $ 699,231
NATIONAL TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 3.72% 0.65% 0.87% 1.87% $ 347,051
JUNE 1, 1999 TO
MARCH 31, 2000(7)...... 0.00 $ 1.00 2.96% 0.65% 0.87% 2.84% $ 324,452
JUNE 1, 1998 TO MAY 31,
1999................... 0.00 $ 1.00 2.72% 0.65% 0.86% 2.76% $ 41,174
JUNE 1, 1997 TO MAY 31,
1998................... 0.00 $ 1.00 3.13% 0.65% 0.83% 3.18% $ 44,070
JUNE 1, 1996 TO MAY 31,
1997................... 0.00 $ 1.00 3.01% 0.65% 0.87% 3.08% $ 54,616
JUNE 1, 1995 TO MAY 31,
1996................... 0.00 $ 1.00 3.25% 0.65% 0.88% 3.31% $ 57,021
100% TREASURY MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.59% 0.65% 0.83% 2.72% $ 83,362
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... 0.00 $ 1.00 4.89% 0.65% 0.82% 1.89% $ 2,047
TREASURY PLUS MONEY MARKET FUND(8)
-------------------------------------------------------------------------------------------------------------------------
CLASS A
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... 0.00 $ 1.00 5.58% 0.65% 0.81% 2.82% $ 1,258,272
APRIL 1, 1999 TO
MARCH 31, 2000......... 0.00 $ 1.00 4.56% 0.65% 0.82% 4.20% $ 1,150,181
APRIL 1, 1998 TO
MARCH 31, 1999......... 0.00 $ 1.00 4.50% 0.65% 0.79% 4.62% $ 543,903
APRIL 1, 1997 TO
MARCH 31, 1998......... 0.00 $ 1.00 4.93% 0.62% 0.85% 5.06% $ 381,594
OCTOBER 1 , 1996 TO
MARCH 31, 1997(2) ..... 0.00 $ 1.00 4.81% 0.55% 0.75% 2.42% $ 66,486
OCTOBER 1, 1995(4) TO
SEPTEMBER 30, 1996..... 0.00 $ 1.00 4.96% 0.55% 0.67% 4.95% $ 53,706
</TABLE>
51
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 9).
(2) The Fund changed its fiscal year-end from September 30 to March 31.
(3) The Fund changed its fiscal year-end from December 31 to September 30.
(4) Commencement of operations.
(5) The Fund commenced operations on August 14, 2000.
(6) This class of shares was redesignated from Class S to Class B on
November 8, 1999.
(7) The Fund changed its fiscal year-end from May 31 to March 31.
(8) The Fund operated as a portfolio of Pacific American Funds through October
1, 1994, when it was reorganized as the Pacific American U.S. Treasury
Portfolio, a portfolio of Pacifica Funds Trust. In July 1995, the Fund was
renamed the Pacifica Treasury Money Market Fund, and on September 6, 1996,
the Fund was reorganized as a series of Stagecoach Funds, Inc. In
conjunction with the September 6, 1996 reorganization, WFB assumed
investment advisory responsibilites. Prior to April 1, 1996, First
Interstate Capital Management, Inc. (FICM) served as the Fund's adviser. In
connection with the merger of First Interstate Bancorp into Wells Fargo &
Co. on April 1, 1996, FICM was renamed Wells Fargo Investment
Management, Inc., subsequently renamed Wells Capital Management, Inc.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 65 separate series. These financial
statements present the California Tax-Free Money Market, Government Money
Market, Minnesota Money Market, Money Market, National Tax-Free Money Market,
100% Treasury Money Market, and Treasury Plus Money Market Funds (each, a
"Fund", collectively, the "Funds"), each with the exception of the California
Tax-Free Money Market Fund and Minnesota Money Market Fund, a diversified
series of the Trust. The California Tax-Free Money Market Fund and Minnesota
Money Market Fund are non-diversified series of the Trust.
The California Tax-Free Money Market, Government Money Market, and 100%
Treasury Money Market Funds offer Class A and Service Class shares. The Money
Market Fund offers Class A and Class B shares. The Minnesota Money Market,
National Tax-Free Money Market and Treasury Plus Money Market Funds offer a
single class of shares. The separate classes of shares differ principally in
the applicable sales charges (if any), distribution fees, and transfer agency
fees. Shareholders of each class may bear certain expenses that pertain to
that particular class. All shareholders bear the common expenses of the Fund
and earn income from the portfolio pro rata based on the average daily net
assets of each class, without distinction between share classes. Dividends are
determined separately for each class based on income and expenses allocable to
each class. Realized gains are allocated to each class pro rata based on the
net assets of each class on the date realized. No class has preferential
dividend rights. Differences in per share dividend rates generally result from
the relative weightings of pro rata income and realized gain allocations and
from differences in separate class expenses, including distribution,
shareholder servicing and transfer agency fees.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Funds invest only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolios may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer
at par value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that they will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
REPURCHASE AGREEMENTS
Each Fund, with exception to the 100% Treasury Money Market Fund, may invest
in repurchase agreements and may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a
tri-party agreement. It is the Funds' custodian's responsibility to value
collateral daily and to take action to obtain additional
53
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
collateral as necessary to maintain market value equal to or greater than the
resale price. The repurchase agreements held by the Funds are collateralized
by instruments such as U.S. Treasury, federal agency, or high-grade corporate
obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at
September 30, 2000.
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Fund Year Expires Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 2002 $ 92,680
2003 31,569
2005 144,877
2006 25,929
2007 358,280
2008 10,810
100% TREASURY MONEY MARKET FUND 2008 780,757
GOVERNMENT MONEY MARKET FUND 2008 107,576
NATIONAL TAX-FREE MONEY MARKET FUND 2008 4
TREASURY PLUS MONEY MARKET FUND 2008 44,684
</TABLE>
The 100% Treasury Money Market Fund has current post-October deferred capital
losses of $385,239. Such losses will be recognized for tax purposes on the
first day of the following tax year.
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
3. ADVISORY FEES
The Trust has entered into separate advisory contracts on behalf of the Funds
with WFB. Pursuant to the contracts, WFB has agreed to provide the following
Funds with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
Fund % of Average Daily Net Assets
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 0.30
GOVERNMENT MONEY MARKET FUND 0.35
MINNESOTA MONEY MARKET FUND 0.30
MONEY MARKET FUND 0.40
NATIONAL TAX-FREE MONEY MARKET FUND 0.25
100% TREASURY MONEY MARKET FUND 0.35
TREASURY PLUS MONEY MARKET FUND 0.35
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Funds. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Funds, a
monthly fee at the annual rate of 0.05% of each Fund's average daily net
assets up to $1 billion and 0.04% of each Fund's average daily net assets in
excess of $1 billion.
4. 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.
5. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds.
6. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Funds are charged 0.25% of the
average daily net assets of each Fund for Class A shares for these services.
The shareholder servicing fees paid on behalf of the Funds for the period
ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Class A
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND $ 2,883,732
GOVERNMENT MONEY MARKET FUND 71,460
MINNESOTA MONEY MARKET FUND 20,990
MONEY MARKET FUND 16,613,611
NATIONAL TAX-FREE MONEY MARKET FUND 428,292
100% TREASURY MONEY MARKET FUND 32,674
TREASURY PLUS MONEY MARKET FUND 1,451,125
</TABLE>
7. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. In addition, the Trust has entered into contracts on
behalf of each Fund with Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly
Norwest Bank Minnesota, N.A., whereby WFB MN is responsible for providing
custody services for the Funds. Pursuant to the contracts, WFB MN is entitled
to certain 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 115,316 shares of the
California Tax-Free Money Market Fund Class A, 27 shares of the Government
Money Market Fund Class A, 1,706,495 shares of the Money Market Fund Class A,
55
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
110 shares of the National Tax-Free Money Market Fund Class A, 10,464 shares
of the 100% Treasury Money Market Fund Class A, and 142,056 shares of the
Treasury Plus Money Market Fund Class A.
8. 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.
9. REORGANIZATION
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust (the "Consolidation").
Effective at the close of business November 5, 1999, the Stagecoach and/or
Norwest Advantage Funds were consolidated into the Wells Fargo Funds Trust
through an exchange of shares as follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET CALIFORNIA TAX-FREE MONEY MARKET FUND
FUND (A)*
GOVERNMENT MONEY MARKET FUND (A) U.S. GOVERNMENT FUND* GOVERNMENT MONEY MARKET FUND
MONEY MARKET FUND (A,S)* READY CASH INVESTMENT FUND (A,B) MONEY MARKET FUND
PRIME MONEY MARKET FUND (A)
NATIONAL TAX-FREE MONEY MARKET FUND (A) MUNICIPAL MONEY MARKET FUND (A)* NATIONAL TAX-FREE MONEY MARKET FUND
TREASURY FUND (SVC)* 100% TREASURY MONEY MARKET FUND
TREASURY PLUS MONEY MARKET FUND (A, E)* TREASURY PLUS MONEY MARKET FUND
</TABLE>
* ACCOUNTING SURVIVOR
In the Consolidation, the Wells Fargo Government Money Market Fund acquired
all of the net assets of the Stagecoach Government Money Market Fund and
Norwest Advantage U.S. Government Fund. The Stagecoach Government Money Market
Fund exchanged its 59,955,742 shares for 59,955,742 shares of the Wells Fargo
Government Money Market Fund.
In the Consolidation, the Wells Fargo Money Market Fund acquired all of the A
and S share class net assets of the Stagecoach Money Market Fund, the net
assets of the A share class of the Stagecoach Prime Money Market Fund, and the
net assets of the A and B share classes of the Norwest Advantage Ready Cash
Investment Fund. Concurrent with this consolidation, Class S shares of the
Stagecoach Money Market Fund were converted into Class B shares of the Wells
Fargo Money Market Fund. The A share class of the Stagecoach Prime Money
Market Fund exchanged its 578,398,886 shares for 578,398,886 shares of the
Wells Fargo Money Market Fund. The A and B share classes of the Norwest
Advantage Ready Cash Investment Fund exchanged their 995,712,147 shares for
995,712,147 shares of the Wells Fargo Money Market Fund.
In the Consolidation, the Wells Fargo National Tax-Free Money Market Fund
acquired all of the assets of the A share class of the Stagecoach National
Tax-Free Money Market Fund and all of the assets of the A share class of the
Norwest Advantage Municipal Money Market Fund. The A share class of the
Stagecoach National Tax-Free Money Market Fund exchanged its 95,773,144 shares
for 95,773,144 shares of the Wells Fargo National Tax-Free Money Market Fund.
56
<PAGE>
LIST OF ABBREVIATIONS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
57
<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 004 (11/00)
