<PAGE>
[LOGO]
Annual Report
MONEY MARKET FUNDS
MARCH 31, 2000
[GRAPHIC]
CALIFORNIA TAX-FREE MONEY MARKET FUND
GOVERNMENT 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
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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
MONEY MARKET FUND............................................................6
NATIONAL TAX-FREE MONEY MARKET FUND..........................................8
100% TREASURY MONEY MARKET FUND.............................................10
TREASURY PLUS MONEY MARKET FUND.............................................12
PORTFOLIO OF INVESTMENTS
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CALIFORNIA TAX-FREE MONEY MARKET FUND.......................................14
GOVERNMENT MONEY MARKET FUND................................................21
MONEY MARKET FUND...........................................................24
NATIONAL TAX-FREE MONEY MARKET FUND.........................................30
100% TREASURY MONEY MARKET FUND.............................................38
TREASURY PLUS MONEY MARKET FUND.............................................39
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................40
STATEMENT OF OPERATIONS.....................................................42
STATEMENTS OF CHANGES IN NET ASSETS.........................................44
FINANCIAL HIGHLIGHTS........................................................50
NOTES TO FINANCIAL HIGHLIGHTS.................................................52
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NOTES TO FINANCIAL STATEMENTS.................................................53
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INDEPENDENT AUDITORS' REPORT..................................................59
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TAX INFORMATION...............................................................60
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LIST OF ABBREVIATIONS.........................................................61
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
<PAGE>
MONEY MARKET FUNDS
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DEAR VALUED SHAREHOLDER,
For investors, the past year was unpredictable. It was a period characterized
by rapidly shifting markets and unprecedented volatility.
During the 12-month period ended March 31, 2000, blue chip stocks soared to a
record high, only to surrender their gains following a series of interest rate
hikes that sent the Dow Jones Industrial Average (the "Dow") into a tailspin.
After a March rally, the Dow recovered most of its losses, yet still remained
down for the year.
In contrast, the Nasdaq Composite Index shattered the 5,000 barrier led by
the turbocharged performance of technology stocks -- particularly genetics,
semiconductor and communications stocks. Technology reigned for several
months, while all other sectors scrambled for attention. That changed when the
technology bubble burst in late March, sparking a sell-off that pounded
speculative issues and left many investors concerned about the viability of
many "New Economy" stocks.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Concerned about the potential for a run-up in inflation, the Federal Reserve
Board (the "Fed") chose to raise interest rates five times over the fiscal
year, with each hike coming in 0.25% increments. Rising interest rates have
helped the Fund's investors capture additional yields on the short-term
securities within each portfolio. And, because we believe that the Fed may be
planning additional rate increases in coming months, our fund managers
presently intend to keep the average maturity of their portfolios relatively
short to take advantage of higher yields.
At the same time, our money market funds, which maintained their $1 per share
price throughout the period, continued to provide investors with a safe,
stable and convenient place to hold cash while evaluating other potential
investment opportunities.
INVESTING IN AN UPSIDE-DOWN MARKET
--------------------------------------------------------------------------------
With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
uncertainty? The first thing to remember is to think long term. Over time, the
market will regain its balance.
More importantly, investors should stick with a clearly defined strategy of
buying and holding a diversified portfolio of stocks, bonds and cash. If you
adhere to your long-term strategy, you won't be as vulnerable to a downturn in
one sector. Chances are that your overall returns will be more steady over
time as well. The fact is, diversification is an effective strategy that
investors can use to their advantage in virtually any market environment.
In closing, thank you for investing with Wells Fargo Funds. With 61 mutual
funds and more than $61 billion in mutual fund assets (as of February 29,
2000), we offer a complete array of mutual funds designed to meet most any
investor need -- in any market environment.
Sincerely,
<TABLE>
<S> <C>
/s/ Michael J. Hogan /s/ W. Rodney Hughes
MICHAEL J. HOGAN W. RODNEY HUGHES
EXECUTIVE VICE PRESIDENT, PRESIDENT,
WELLS FARGO BANK, N.A. WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
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
FUND MANAGER
Kevin Shaughnessy
INCEPTION DATE
01/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund Class A shares underperformed the Fund's benchmark, the 90-Day
Treasury Bill(1), for the fiscal year ended March 31, 2000, with a return of
2.51%(2) versus 5.27% for the benchmark.
During the period, the Federal Reserve Board (the "Fed") maintained its
monetary tightening policy by raising interest rates five times in increments
of 0.25%. Given the short-term nature of the Fund, as items matured within the
Fund they were reinvested at higher yields. In addition to shorter maturing
items, the Fund held roughly 55% of its position in floating rate notes late
in the period. These positions also helped performance, while longer-dated,
fixed-rate notes hurt performance.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fed is expected to continue to tighten monetary policy in an effort to
cool economic growth. Given its large position in floating rate notes, the
Fund has the potential to benefit from interest rate increases. The volatility
in the stock and bond markets may also affect the Fund by creating cash
inflows during market sell-offs causing the Fund's yields to fall, and
outflows during market rallies causing the Fund's yield to rise.
The early part of the second quarter of each year is usually characterized by
higher interest rates driven by large cash outflows from money market funds
used to pay income taxes. This presents an opportunity to increase exposure to
longer-maturity, fixed-rate notes for the Fund at attractive yields. With the
Fund's large position in floating rate notes, it is positioned to potentially
do well in a rising interest rate environment.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 1.29 2.51 2.75 2.61
LIPPER CALIFORNIA TAX-EXEMPT
MONEY MARKET FUNDS AVERAGE(3) 1.30 2.54 2.85
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 2.68%
7-DAY COMPOUND YIELD 2.71%
30-DAY SIMPLE YIELD 2.65%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 44 DAYS
NUMBER OF HOLDINGS 271
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Bonds 23%
Floating/Variable Rate Bonds AMT 6%
Floating/Variable Rate Bonds 71%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 60%
90-179 days 22%
1-2 days 7%
180+ days 5%
30-59 days 4%
15-29 days 1%
60-89 days 1%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment 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 California
Tax-Free Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Class A shares of the Stagecoach California Tax-Free Money
Market Fund, its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach Funds were reorganized into the Wells Fargo
Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper California Tax-Exempt
Money Market Funds Average is an average of funds that invest in municipal
obligations with dollar-weighted average maturities of less than 90 days. You
cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
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
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/16/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares underperformed the Fund's benchmark, the 90-Day
Treasury Bill(1), for the fiscal year ending March 31, 2000, with a return of
4.69%(2) versus 5.27% for the benchmark. The performance of the Fund's
Class A shares currently ranks 55(th) percentile out of 125 similar funds
within the Lipper U.S. Government Money Market Funds Average(3).
Over the past year, rising interest rates had a significant effect on the
Fund's performance. During the period, the Federal Reserve Board initiated a
series of five separate 0.25% increases designed to cool the nation's
fast-growing economy and offset inflationary pressures. Since the Fund invests
approximately 30% of its assets in short-term repurchase agreements, it was
able to capture incremental increases in interest rates over time to boost
investor returns. At the same time, the Fund's management team maintained its
exposure to floating rate securities to benefit from higher yields on these
securities.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With more interest rate hikes forecast throughout the year, the Fund's
management team will continue to employ a "barbell portfolio strategy,"
investing in short-term securities to mitigate against further rate hikes, and
purchasing longer-term, higher-yielding securities when attractive
opportunities arise. And in a financial marketplace characterized by rising
interest rates, the Fund should continue to perform well against its peer
group due to its current asset allocation strategy.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 2.48 4.69 4.84 4.61
LIPPER U.S. GOVERNMENT MONEY MARKET FUNDS AVERAGE 2.48 4.70 4.90 4.64
90-DAY TREASURY BILL INDEX 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.28%
7-DAY COMPOUND YIELD 5.42%
30-DAY SIMPLE YIELD 5.16%
30-DAY COMPOUND YIELD 5.28%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 53 DAYS
NUMBER OF HOLDINGS 59
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
FHLMC 29%
Repurchase Agreements 29%
FNMA 24%
FHLB 15%
Commercial Paper 2%
SLMA 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 45%
30-59 days 23%
90-179 days 9%
180+ days 8%
60-89 days 8%
15-29 days 7%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment 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 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), its predecessor fund. Effective at the close of business November 5,
1999, the Stagecoach Funds and the Norwest Advantage Funds were reorganized into
the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper U.S. Government Money
Market Funds average is an average of funds which invest principally in
financial instruments issued or guaranteed by the U.S. Government, its agencies,
or its instrumentalities, with dollar weighted average maturities of less than
90 days. The total return of the Lipper average does not include the effect of
sales charges. Past performance is no guarantee of future results. You cannot
invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
MONEY MARKET FUND
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
FUND MANAGER
Michael Neitzke
INCEPTION DATE
10/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares underperformed against the Fund's benchmark, the
90-Day Treasury Bill(1), for the year ending March 31, 2000, with a return of
4.84%(2) versus 5.27% for the benchmark.
Rising interest rates fueled the Fund's performance. During the past year the
Federal Reserve Board raised short-term interest rates five times -- with each
rate increase coming in 0.25% increments -- to offset inflationary pressures
and curb the nation's fast-growing economy. Over the year, the Federal Funds
Rate, the most sensitive indicator of the direction of interest rates,
increased from 4.75% to 6%.
The series of rate hikes also sent yields on short-term securities higher,
which created opportunities to add yields to the portfolio. And as rates rose,
the Fund's management team also selectively invested in longer-term securities
to capture increasingly higher yields. They achieved these favorable results
while maintaining a core position among securities that mature within a one-
to three-month range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the Fund's
management team will continue to take advantage of higher-yielding, short-term
securities and purchase longer-term securities that offer attractive values.
However, the Fund is consistently managed to maintain a stable asset value of
$1 per share given any level of volatility.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 2.55 4.84 4.92 4.38
LIPPER MONEY MARKET FUNDS AVERAGE(3) 2.50 4.72 4.93
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.82%
7-DAY COMPOUND YIELD 5.99%
30-DAY SIMPLE YIELD 5.38%
30-DAY COMPOUND YIELD 5.51%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 70 DAYS
NUMBER OF HOLDINGS 216
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 62%
Fixed-Rate Notes 12%
Floating/Variable Rate Bonds 11%
Certificates of Deposits 8%
Repurchase Agreements 6%
Time Deposits 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 32%
15-29 days 19%
30-59 days 24%
60-89 days 3%
90-179 days 8%
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.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment 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 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 fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Money Market Funds
average is an average of funds that invest in high quality financial instruments
rated in the top two grades with dollar-weighted average maturities of less than
90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
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
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
01/07/88
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares slightly outperformed the Fund's peer group, the
Lipper Tax-Exempt Money Market Funds Average(1), for the fiscal year ended
March 31, 2000, with a return of 2.84%(2) compared to 2.83% for the Lipper
average.
Fixed-income securities of shorter maturities experienced rising yields
throughout most of the 12-month period as the Federal Reserve Board raised
interest rates five times -- with each rate increase coming in 0.25%
increments -- in an attempt to slow the booming economy. The Fund's managers
looked for opportunities to increase average yield in the Fund by buying nine-
to 12-month securities when those securities were attractive relative to other
maturity sectors. Because of this strategy, the Fund had a longer average
maturity than most its peers during the quarter, and the Fund benefited from
that strategy.
Cash flow was volatile, especially late in the period, as shareholders
prepared to pay taxes. The Fund increased liquidity in anticipation of such
cash outflows, which translated into lower yields. More than 70% of the Fund
was positioned in variable rate demand notes during the quarter. A dramatic
rise in these short rates would likely enhance the yield in the Fund. If the
short rates were to precipitously fall, the Fund's yield would decline.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Additional rate increases are forecast for the remainder of the year. The
Fund is consistently managed to maintain a stable asset value of $1 per share
given any level of volatility.
8
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 1.48 2.84 3.07 3.14
LIPPER TAX-EXEMPT MONEY MARKET FUNDS AVERAGE 1.50 2.83 3.00 3.10
90-DAY TREASURY BILL(3) 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.24%
7-DAY COMPOUND YIELD 3.29%
30-DAY SIMPLE YIELD 3.16%
30-DAY COMPOUND YIELD 3.21%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 42 DAYS
NUMBER OF HOLDINGS 165
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 74%
Municipal Commercial Paper 9%
Municipal "PUT" Bonds 9%
Municipal Notes 7%
Bond Anticipatory Notes 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 79%
30-59 days 4%
90-179 days 7%
180+ 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) Source: Lipper Analytical Services, Inc. The Lipper Tax-Exempt Money Market
Funds average is an average of funds that invest in municipal obligations with
dollar-weighted average maturies of less than 90 days. You cannot invest
directly in a Lipper average.
(2) 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 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 Funds and the Norwest Advantage Funds were
reorganized into the Wells Fargo Funds.
(3) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(4) Portfolio holdings are subject to change.
9
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
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
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
12/03/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares underperformed the Fund's benchmark, the 90-Day
Treasury Bill(1), for the year ending March 31, 2000, with a return of
4.47%(2) versus 5.27% for the benchmark. However, the Fund's Class A shares
slightly outperformed the Lipper U.S. Treasury Money Market Funds Average(3)
for the period. The Lipper average returned 4.45%.
Changing interest rates created attractive opportunities for the Fund's
management team to capture higher yields on Treasury securities. During the
past year, the Federal Reserve Board implemented a series of interest rate
hikes designed to cool the nation's economy and offset mounting inflationary
pressures. During this period, the Federal Funds Rate, the most sensitive
indicator of the direction of interest rates, increased from 4.75% to 6%.
Since the Fund invests approximately 25% of its assets in daily investments,
the management team capitalized on incremental increases in interest rates to
secure higher yields -- and to outperform funds with similar investment
objectives.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the management team
will continue to implement its "barbell" investment strategy. This strategy
entails purchasing short-term securities to mitigate against further rate
hikes, while investing in certain longer-term -- and higher yielding --
securities when opportunities arise.
Also, the Fund's flexible investment policy enables it to increase its
interest rate sensitivity through short-term daily investments and
simultaneous buy/sell transactions. All in all, the Fund is well positioned to
outperform its peers amid an environment characterized by rising interest
rates.
10
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS A 2.36 4.47 4.66 4.28
LIPPER U.S. TREASURY MONEY MARKET FUNDS AVERAGE 2.34 4.45 4.74
90-DAY U.S. TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.15%
7-DAY COMPOUND YIELD 5.29%
30-DAY SIMPLE YIELD 5.05%
30-DAY COMPOUND YIELD 5.17%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 51 DAYS
NUMBER OF HOLDINGS 14
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Bills 62%
U.S. Treasury Notes 38%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
15-29 days 53%
30-59 days 32%
90-179 days 13%
180+ 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) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment 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 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 Funds were reorganized into the
Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper U.S. Treasury Money
Market Funds average is an average of funds that invest principally in U.S.
Treasury obligations with dollar weighted average maturities of less than 90
days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
11
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND
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 397days (13
months).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
10/01/85
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares underperformed the Fund's benchmark, the 90-Day
Treasury Bill(1), for the year ending March 31, 2000, with a return of
4.20%(2) versus 5.27% for the benchmark.
The impact of rising interest rates fueled Fund performance. During the past
year, the Federal Reserve Board raised short-term interest rates five
times -- with each rate increase coming in 0.25% increments -- to offset
inflationary pressures and curb the nation's fast-growing economy. As a
result, the Fund was able to capture additional yields on short-term Treasury
securities, particularly among the repurchase agreements that comprise nearly
35% of the entire portfolio.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With economists anticipating several additional rate increases throughout the
year, the Fund's management team will increase the Fund's exposure to
repurchase agreements, thereby shortening the average maturity of the overall
portfolio.
In addition, the management team will continue to implement its "barbell"
investment strategy. This strategy entails purchasing short-term securities to
mitigate against further rate hikes, while investing in certain
longer-term -- and higher yielding -- securities when opportunities arise. All
in all, the Fund is well positioned to perform well in the current interest
rate environment.
12
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS A 2.39 4.20 4.80 4.57
LIPPER U.S. TREASURY MONEY MARKET FUNDS AVERAGE(3) 2.34 4.45 4.74 4.56
90-DAY TREASURY BILL 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.23%
7-DAY COMPOUND YIELD 5.37%
30-DAY SIMPLE YIELD 5.13%
30-DAY COMPOUND YIELD 5.25%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 49 DAYS
NUMBER OF HOLDINGS 19
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Repurchase Agreements 38%
U.S. Treasury Notes 38%
U.S. Treasury Bills 24%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 38%
15-29 days 17%
30-59 days 9%
60-89 days 11%
90-179 days 22%
180+ days 3%
</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) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment 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. Performance shown for periods prior to October 1,
1995, reflects performance of the Service Class shares of the predecessor
portfolio.
(3) Source: Lipper Analytical Services, Inc. The Lipper U.S. Treasury Money
Market Funds average is an average of funds that invest principally in U.S.
Treasury obligations with dollar weighted average maturities of less than 90
days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
13
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 86.54%
$ 9,775,000 ABAG FINANCE AUTHORITY FOR
NONPROFIT CORPORATION
CALIFORNIA LUCILE SALTER
PACKARD PROJECT AMBAC INSURED 3.30% 08/01/23 $ 9,775,000
5,480,000 ALAMEDA CA SCHOOL FINANCE
AUTHORITY REVENUE SERIES A 3.30 07/01/18 5,480,000
1,300,000 ALAMEDA-CONTRA COSTA COUNTY CA
SCHOOL FINANCE AUTHORITY
REVENUE SERIES C 3.30 07/01/25 1,300,000
1,700,000 ALHAMBRA CA IDA SUNCLIPSE LOC
-BANK OF AMERICA 3.40 05/01/07 1,700,000
2,705,000 ANAHEIM CA COP POLICE
FACILITIES 3.15 08/01/08 2,705,000
11,850,000 ANAHEIM CA GO 3.35 05/02/00 11,850,000
1,600,000 ANAHEIM CA HFA AMT 3.25 07/15/20 1,600,000
15,000,000 ANAHEIM CA HOUSING REVENUE LOC
-CITIBANK AMT 3.30 12/15/23 15,000,000
4,445,000 ANAHEIM CA MFHR MONTEREY
APARTMENTS SERIES B 3.20 05/15/27 4,445,000
12,400,000 ANAHEIM CA PUBLIC IMPROVEMENT
COP LOC - INDUSTRIAL BANK OF
JAPAN LIMITED 3.15 08/01/19 12,400,000
3,000,000 BARSTOW CA MFHR DESERT VISTA
APARTMENTS LOC - FEDERAL HOME
LOAN BANK OF SAN FRANCISCO 3.30 12/01/20 3,000,000
16,000,000 BUTTE COUNTY CA OFFICE OF
EDUCATIONAL TAX & REVENUE 4.25 11/16/00 16,057,358
5,505,000 CA EDFA COP 3.36 06/01/27 5,505,000
2,895,000 CA EDFA COP SERIES 147 3.41 10/01/27 2,895,000
5,000,000 CALIFORNIA COMMUNITY COLLEGE
FINANCING AUTHORITY SERIES A 4.00 06/30/00 5,010,608
4,390,000 CALIFORNIA EDUCATIONAL
FACILITIES AUTHORITY REVENUE 3.20 10/01/15 4,390,000
6,365,000 CALIFORNIA HEALTH FACILITIES
FINANCING AUTHORITY REVENUE 3.86 12/01/34 6,365,000
5,495,000 CALIFORNIA HEALTH FACILITIES
FINANCING AUTHORITY REVENUE
COP SERIES 202 3.41 07/01/10 5,495,000
5,700,000 CALIFORNIA HFA 3.10 08/01/16 5,700,000
21,000,000 CALIFORNIA HFA REVENUE SERIES
C 3.35 08/01/31 21,000,000
21,475,000 CALIFORNIA HFA REVENUE SERIES
J 3.20 08/01/20 21,475,000
5,000,000 CALIFORNIA HFA REVENUE SERIES
Q 3.20 08/01/20 5,000,000
3,580,000 CALIFORNIA HFA SERIES J-1 3.51 02/01/29 3,580,000
1,500,000 CALIFORNIA HFFA 3.45 09/01/28 1,500,000
4,900,000 CALIFORNIA HFFA 3.15 10/01/22 4,900,000
4,000,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES D 3.20 04/30/00 4,000,000
45,580,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES E 3.40 08/01/00 45,580,000
4,300,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT FISH
HOUSE PONDS 3.40 09/01/24 4,300,000
3,100,000 CALIFORNIA MFHR DELTA SQUARE
APARTMENTS PROJECT 3.25 10/15/29 3,100,000
7,700,000 CALIFORNIA PCR 3.05 05/15/00 7,700,000
24,160,000 CALIFORNIA PCR 3.36 06/01/14 24,160,000
4,200,000 CALIFORNIA PCR 3.40 05/02/00 4,200,000
5,000,000 CALIFORNIA PCR 3.41 12/01/18 5,000,000
4,785,000 CALIFORNIA PCR 3.45 02/01/18 4,785,000
3,800,000 CALIFORNIA PCR AMT 3.25 12/01/16 3,800,000
5,000,000 CALIFORNIA PCR AMT PACIFIC GAS
& ELECTRIC SERIES D 3.35 01/01/10 5,000,000
1,500,000 CALIFORNIA PCR DAILY REFUNDED 3.35 11/01/26 1,500,000
2,800,000 CALIFORNIA POLLUTION CONTROL
AMT 3.40 11/01/26 2,800,000
2,740,000 CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY 3.35 10/01/31 2,740,000
55,000,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY REVENUE 4.00 03/01/18 55,000,000
36,900,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 4.00 07/03/00 36,968,062
3,100,000 CALIFORNIA SCHOOL FACILITIES
COP SERIES A 3.30 07/01/22 3,100,000
2,695,000 CALIFORNIA SCHOOL FACILITIES
FINANCING CORPORATION SERIES B
BAYERISCHE 3.30 07/01/24 2,695,000
15,565,000 CALIFORNIA STATE 3.36 02/01/15 15,565,000
24,995,000 CALIFORNIA STATE COP SERIES 55
FGIC INSURED 3.41 02/01/13 24,995,000
20,200,000 CALIFORNIA STATE COP SERIES L 3.36 11/01/07 20,200,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 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)
$ 45,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152 3.46% 11/01/24 $ 45,000
4,955,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152D 3.46 11/01/24 4,955,000
265,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153 3.46 11/01/24 265,000
11,675,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153D 3.46 11/01/24 11,675,000
7,000,000 CALIFORNIA STATE DEPARTMENT OF
WATER RESERVE PROJECT REVENUE 3.40 12/01/13 7,000,000
4,600,000 CALIFORNIA STATE DEVELOPMENT
AUTHORITY REVENUE SERIES A 3.25 10/01/26 4,600,000
4,600,000 CALIFORNIA STATE DW&P 3.35 05/02/00 4,600,000
49,200,000 CALIFORNIA STATE DW&P 3.60 08/10/00 49,200,000
11,000,000 CALIFORNIA STATE DWR SERIES
127 3.40 12/01/22 11,000,000
4,950,000 CALIFORNIA STATE EAGLE TRUST
PRIVATE PLACEMENT 3.46 09/01/03 4,950,000
5,000,000 CALIFORNIA STATE ECONOMIC
DEVELOPMENT FINANCING
AUTHORITY REVENUE 3.20 04/01/08 5,000,000
1,800,000 CALIFORNIA STATE ECONOMIC
FINANCING AUTHORITY REVENUE 3.20 04/01/08 1,800,000
5,100,000 CALIFORNIA STATE ECONOMIC
FINANCING AUTHORITY REVENUE 3.30 04/01/08 5,100,000
6,000,000 CALIFORNIA STATE GO 3.00 03/01/21 6,000,000
12,085,000 CALIFORNIA STATE GO 3.36 12/01/18 12,085,000
10,935,000 CALIFORNIA STATE GO 3.36 03/01/20 10,935,000
10,000,000 CALIFORNIA STATE GO 5.00 10/01/00 10,060,086
23,000,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP 3.65 12/05/07 23,000,000
8,176,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP - 1998-25 3.20 07/05/06 8,176,000
17,995,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP 1998-20 3.50 07/05/06 17,995,000
14,380,000 CALIFORNIA STATE GO SERIES A-9 3.85 03/01/02 14,380,000
11,000,000 CALIFORNIA STATE GO SERIES A39 4.00 06/30/00 11,000,000
10,390,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLES TRUST COP 3.46 02/01/06 10,390,000
26,100,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLES TRUST SERIES 94
MBIA INSURED 3.46 09/01/03 26,100,000
2,000,000 CALIFORNIA STATE HFA HOME
MORTGAGE REVENUE MBIA INSURED 3.83 08/01/10 2,000,000
2,600,000 CALIFORNIA STATE HFFA
ADVENTIST HEALTH SYSTEM LOC
TORONTO DOMINION BANK 3.25 08/01/21 2,600,000
5,100,000 CALIFORNIA STATE HFFA
CHILDRENS HOSPITAL MBIA
INSURED 3.15 11/01/21 5,100,000
4,800,000 CALIFORNIA STATE HFFA MEMORIAL
HEALTH SERVICES 3.25 10/01/24 4,800,000
11,970,000 CALIFORNIA STATE HFFA REVENUE
SCRIPPS MEMORIAL HOSPITAL
SERIES B 3.15 12/01/15 11,970,000
6,000,000 CALIFORNIA STATE HFFA SANTA
BARBARA COTTAGE LOC CREDIT
SUISSE 3.25 09/01/15 6,000,000
2,000,000 CALIFORNIA STATE PCFA PACIFIC
GAS & ELECTRIC SERIES A AMT 3.25 12/01/16 2,000,000
17,500,000 CALIFORNIA STATE PCFA SANGER
PROJECT SERIES 90-A LOC -
CREDIT SUISSE 3.25 09/01/20 17,500,000
19,700,000 CALIFORNIA STATE PCR PACIFIC
GAS & ELECTRIC 3.35 11/01/26 19,700,000
4,500,000 CALIFORNIA STATE PUBLIC WORKS 3.46 09/01/17 4,500,000
3,815,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REGENTS OF THE
UNIVERSITY OF CALIFORNIA
SERIES A 7.00 09/01/15 3,944,043
3,000,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REVENUE DEPARTMENT
OF CORRECTIONS 7.00 09/01/09 3,101,475
27,000,000 CALIFORNIA STATE REVENUE
ANTICIPATION NOTES SERIES A 4.00 06/30/00 27,044,387
2,500,000 CALIFORNIA STATEWIDE CDA
BARTON HOSPITAL LOC - BANQUE
NATIONALE DE PARIS 3.30 12/01/09 2,500,000
11,100,000 CALIFORNIA STATEWIDE CDA ST
JOSEPH HEALTH SYSTEM 3.20 07/01/08 11,100,000
1,500,000 CALIFORNIA STATEWIDE CDA
SUTTER HEALTH GROUP AMBAC
INSURED 3.40 07/01/15 1,500,000
15,900,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY COP 3.45 04/01/28 15,900,000
10,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY COP
SERIES 176 3.41 08/15/27 10,000,000
12,325,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY MFHR 3.61 08/01/36 12,325,000
9,455,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY MFHR 3.76 05/06/30 9,455,000
56,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES A-1 4.00 06/30/00 56,093,602
</TABLE>
15
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
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)
$65,515,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES C-2 4.00% 09/29/00 $ 65,646,779
21,530,000 CALIFORNIA STATEWIDE COMMUNITY
IDA 3.65 10/01/33 21,530,000
2,500,000 CALIFORNIA STATEWIDE COMMUNITY
IDA DEL MESA FARMS PROJECT
SERIES A 3.35 05/01/19 2,500,000
20,395,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR 3.61 05/01/36 20,395,000
9,500,000 CALIFORNIA TRAN FINANCING
AUTHORITY 3.25 10/01/27 9,500,000
5,000,000 CAMARILLO CA MFHR HERITAGE
PARK 3.25 07/15/19 5,000,000
16,420,000 CAMARILLO CA REVENUE AMT 3.25 10/15/26 16,420,000
10,700,000 CHULA VISTA CA IDR SAN DIEGO
GAS & ELECTRIC 3.30 12/01/27 10,700,000
8,000,000 CITY OF CHULA VISTA GO 3.45 06/07/00 8,000,000
5,100,000 COLTON CA RDFA LAS PALOMAS
ASSOCIATES PROJECT LOC - BANK
OF AMERICA 3.25 11/01/15 5,100,000
500,000 COLTON CA RDFA MFHR LOC -
FEDERAL HOME LOAN BANK OF SAN
FRANCISCO 2.85 05/01/10 500,000
1,100,000 CONCORD CA MFHR BEL AIR
APARTMENTS LOC - BANK OF
AMERICA AMT 3.35 12/01/16 1,100,000
3,400,000 CONTRA COSTA COUNTY CA MFHR 3.15 11/15/22 3,400,000
745,000 CONTRA COSTA COUNTY CA MFHR EL
CERRITO ROYALE LOC - BANK OF
AMERICA 3.35 12/01/17 745,000
3,000,000 CONTRA COSTA COUNTY CA MFHR
LAKESHORE SERIES C 3.10 11/15/17 3,000,000
1,900,000 DUARTE CA RDFA COP JOHNSON
DUARTE PARTNERS PROJECT SERIES
B LOC - BANK OF AMERICA 3.20 12/01/14 1,900,000
2,200,000 DUBLIN CA MFHR PARK SIERRA
SERIES A 3.30 06/01/28 2,200,000
15,495,000 EBMUD CA SERIES 179 3.41 06/01/08 15,495,000
4,400,000 ESCONDIDO CA CDA LOC - BANK OF
AMERICA AMT 3.35 10/01/16 4,400,000
150,000 FAIRFIELD CA IDA HERMAN G
ROWLAND PROJECT LOC - BANK OF
AMERICA 3.00 04/01/05 150,000
900,000 FOWLER CA IDA BEE SWEET CITRUS
INCORPORATED LOC - BANK OF
AMERICA AMT 3.40 12/01/05 900,000
1,900,000 FREMONT CA COP FAMILY RESOURCE
CENTER FINANCING PROJECT 3.30 08/01/28 1,900,000
6,800,000 FULLERTON CA IDA SUNCLIPSE
INCORPORATED LOC - BANK OF
AMERICA 3.40 07/01/15 6,800,000
900,000 GOLDEN EMPIRE SCHOOLS
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A 3.15 12/01/24 900,000
7,050,000 HAYWARD CA HOUSING AUTHORITY 3.15 06/15/25 7,050,000
3,605,000 HUNTINGTON BEACH CA MFHR
SEABRIDGE VILLAS LOC - BANK OF
AMERICA 4.00 02/01/10 3,605,000
2,500,000 IRVINE CA IDA IMPROVEMENT BOND
LOC - NATIONAL WESTMINSTER
BANK PLC 3.40 09/02/15 2,500,000
1,500,000 IRVINE CA IDA IRVINE EAST
INVESTMENT COMPANY LOC - BANK
OF AMERICA 3.25 12/01/05 1,500,000
3,405,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
REVENUE 3.20 11/01/10 3,405,000
10,200,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
REVENUE CAPITAL IMPROVEMENT
PROJECT 3.20 11/01/10 10,200,000
600,000 IRVINE RANCH CA WATER DISTRICT 3.40 09/01/06 600,000
1,700,000 IRVINE RANCH CA WATER DISTRICT
LOC - BANK OF AMERICA 3.60 05/01/09 1,700,000
11,000,000 IRVINE RANCH CA WATER DISTRICT
LOC - MORGAN GUARANTY TRUST 3.45 08/01/16 11,000,000
4,655,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES B 3.15 08/01/06 4,655,000
1,600,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES D 3.15 08/01/06 1,600,000
41,735,000 KERN COUNTY CA TAX REVENUE
ANTICIPATION NOTES 4.00 06/30/00 41,782,136
100,000 LANCASTER CA HFA MFHR WESTWOOD
PARK APARTMENTS LOC - BANK OF
AMERICA 3.25 12/01/07 100,000
6,950,000 LONG BEACH CA HEALTH
FACILITIES MEMORIAL HEALTH
SERVICES 3.25 10/01/16 6,950,000
2,700,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE 4.00 08/15/18 2,700,000
20,100,000 LOS ANGELES CA DW&P 3.20 02/01/10 20,100,000
15,360,000 LOS ANGELES CA DW&P SERIES 144 3.41 06/15/29 15,360,000
2,000,000 LOS ANGELES CA DW&P SERIES D 3.20 02/01/10 2,000,000
4,300,000 LOS ANGELES CA DW&P SERIES F 3.20 02/01/10 4,300,000
11,100,000 LOS ANGELES CA MFHR FOUNTAIN
PARK PROJECT 3.30 04/15/33 11,100,000
2,800,000 LOS ANGELES CA MFHR MASSELIN
MANOR LOC - BANK OF AMERICA 3.20 07/01/15 2,800,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 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)
$ 3,000,000 LOS ANGELES CA MFHR RENTAL
ACADEMY APARTMENTS SERIES A 3.25% 10/01/19 $ 3,000,000
4,700,000 LOS ANGELES CA PENSION
OBLIGATION SERIES B AMBAC
INSURED 3.15 06/30/07 4,700,000
35,000,000 LOS ANGELES CA TAX REVENUE
ANTICIPATION NOTES 4.00 06/30/00 35,052,908
10,000,000 LOS ANGELES CA USD 4.00 06/30/00 10,002,521
9,630,000 LOS ANGELES CA USD 3.20 12/01/17 9,630,000
22,875,000 LOS ANGELES CA WASTE WATER 3.10 07/06/00 22,875,000
14,200,000 LOS ANGELES COUNTY CA COP
CORRECTIONAL FACILITIES
PROJECT MBIA INSURED 6.50 09/01/13 14,650,725
6,900,000 LOS ANGELES COUNTY CA HFA MFHR
SAND CANYON RANCH PROJECT LOC
-CITIBANK 3.10 11/01/06 6,900,000
5,490,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES A 3.15 07/01/20 5,490,000
5,200,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES 106 FSA INSURED 3.41 07/01/28 5,200,000
19,500,000 LOS ANGELES COUNTY CA PENSION
OBLIGATION SERIES A AMBAC
INSURED 3.15 06/30/07 19,500,000
10,000,000 LOS ANGELES COUNTY CA SCHOOL
FINANCING AUTHORITY COP SERIES
A 4.00 06/30/00 10,020,276
67,200,000 LOS ANGELES COUNTY CA TAX
REVENUE ANTICIPATION NOTES 4.00 06/30/00 67,303,879
1,750,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX REVENUE FGIC INSURED 3.15 07/01/12 1,750,000
4,000,000 LOS ANGELES COUNTY CAPITAL
ASSET 3.30 04/07/00 4,000,000
5,000,000 LOS ANGELES USD 3.50 07/01/19 5,000,000
4,750,000 METROPOLITAN WATER DISTRICT 3.36 07/01/27 4,750,000
9,995,000 METROPOLITAN WATER DISTRICT
COP SERIES 154 3.41 07/01/27 9,995,000
9,700,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES A 3.10 07/01/28 9,700,000
7,200,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES
SG-128 3.36 07/01/30 7,200,000
5,200,000 MODESTO CA MFHR WESTDALE
COMMONS APARTMENTS LOC -
FEDERAL HOME LOAN BANK OF SAN
FRANCISCO 3.25 12/01/15 5,200,000
7,450,000 MODESTO-SAN JUAN-REDDING
PUBLIC POWER AGENCY SERIES
A22-REGULATION D 4.00 07/01/17 7,450,000
4,000,000 MODESTO-SAN JUAN-REDDING
PUBLIC POWER AGENCY SERIES F 3.50 07/01/22 4,000,000
2,900,000 MONTEBELLO CA LOC - BANK OF
AMERICA 3.40 04/01/15 2,900,000
3,500,000 MONTEREY COUNTY CA FINANCING
AUTHORITY REVENUE 3.20 09/01/36 3,500,000
9,200,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL 3.50 10/01/22 9,200,000
9,300,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL SERIES A 3.15 12/01/29 9,300,000
2,800,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL SERIES B 3.50 10/01/26 2,800,000
40,505,000 NORTHERN CALIFORNIA PUBLIC
POWER REVENUE SERIES SSP 35A 3.40 07/01/28 40,505,000
1,200,000 OAK CA JOINT POWERS FINANCING
AUTHORITY LEASE REVENUE SERIES
A-1 3.30 08/01/21 1,200,000
9,000,000 ONTARIO CA MFHR PARK CENTRE
APARTMENTS LOC - BANK OF NEW
YORK 3.25 08/01/07 9,000,000
900,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE SERIES U 3.15 11/01/09 900,000
5,000,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE VILLAS
ALIENTO 3.15 08/15/28 5,000,000
3,900,000 ORANGE COUNTY CA DEVELOPMENT
REVENUE PARK RIDGE VILLAS 3.15 11/15/28 3,900,000
7,249,000 ORANGE COUNTY CA HFA HARBOR
POINTE APARTMENT ISSUE D LOC -
CITIBANK 3.15 12/01/06 7,249,000
2,700,000 ORANGE COUNTY CA HFA NIGUEL
SUMMIT APARTMENT LOC - BANK OF
AMERICA 3.10 11/01/09 2,700,000
11,000,000 ORANGE COUNTY CA HFA SEASIDE
MEADOW APARTMENTS SERIES C LOC
-BANK OF AMERICA 3.20 08/01/08 11,000,000
9,900,000 ORANGE COUNTY CA HIDDEN HILLS
SERIES C 3.15 11/01/09 9,900,000
6,700,000 ORANGE COUNTY CA HOUSING
AUTHORITY OASIS MARTINIQUE
SERIES I 3.30 06/15/28 6,700,000
19,500,000 ORANGE COUNTY CA SANITATION
DISTRICT FGIC INSURED 3.45 08/01/17 19,500,000
3,400,000 PORT OAK CA REVENUE SERIES A-1
REGULATION D 4.10 11/01/22 3,400,000
2,245,000 RIVERSIDE COUNTY CA ASSET
LEASING CORPORATION COP SERIES
148 3.41 06/01/16 2,245,000
1,700,000 RIVERSIDE COUNTY CA COP SERIES
C 3.30 12/01/15 1,700,000
</TABLE>
17
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
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)
$10,110,000 SACRAMENTO CA FINANCING
AUTHORITY LEASE REVENUE 3.36% 11/01/20 $ 10,110,000
3,800,000 SACRAMENTO COUNTY CA
ADMINISTRATION CENTER &
COURTHOUSE PROJECT LOC - UNION
BANK OF SWITZERLAND 3.30 06/01/20 3,800,000
6,300,000 SACRAMENTO COUNTY CA MFHR
HIDDEN OAKS APARTMENTS 3.25 05/15/19 6,300,000
5,000,000 SACRAMENTO COUNTY CA MFHR
STONECREEK APARTMENTS 3.15 11/15/27 5,000,000
15,600,000 SACRAMENTO COUNTY CA OFFICE OF
EDUCATION TAX & REVENUE 4.50 01/19/01 15,683,559
5,000,000 SAN BERNARDINO CA ALTA LOMA
APARTMENTS LOC - FEDERAL HOME
LOAN BANK OF ATLANTA 3.00 02/01/23 5,000,000
15,000,000 SAN BERNARDINO COUNTY CA COP 3.36 08/01/28 15,000,000
1,600,000 SAN BERNARDINO COUNTY CA COP
HOUSING AUTHORITY REVENUE 3.20 07/01/15 1,600,000
10,800,000 SAN BERNARDINO COUNTY CA COP
MEDICAL CENTER FINANCING
PROJECT 3.15 08/01/26 10,800,000
6,115,000 SAN BERNARDINO COUNTY CA MFHR
GREEN VALLEY APARTMENTS 3.15 05/15/29 6,115,000
2,085,000 SAN BERNARDINO COUNTY CA MFHR
LOC - FEDERAL HOME LOAN BANK
OF SAN FRANCISCO 3.35 05/01/17 2,085,000
4,725,000 SAN BERNARDINO COUNTY CA MFHR
SERIES A LOC - FEDERAL HOME
LOAN BANK OF SAN FRANCISCO 3.35 05/01/17 4,725,000
13,000,000 SAN DIEGO CA COP TAX REVENUE
ANTICIPATION NOTES SERIES B 4.00 07/28/00 13,021,872
9,275,000 SAN DIEGO CA LOCAL AREA
GOVERNMENT COP SERIES C 4.50 09/29/00 9,319,738
1,900,000 SAN DIEGO CA MFHR CARMEL DEL
MAR 1993-E 3.15 12/01/15 1,900,000
3,500,000 SAN DIEGO CA MULTI FAMILY
APARTMENTS LOC - BANK OF
AMERICA 3.00 10/01/15 3,500,000
7,000,000 SAN DIEGO CA PORT AUTHORITY
REVENUE 3.50 07/07/00 7,000,000
15,000,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY REVENUE
SERIES SG 130 3.66 05/15/29 15,000,000
9,700,000 SAN DIEGO COUNTY CA MFHR 3.20 04/15/05 9,700,000
30,000,000 SAN FRANCISCO BAY GO 2.75 04/06/00 30,000,000
14,000,000 SAN FRANCISCO BAY GO 3.10 05/04/00 14,000,000
10,245,000 SAN FRANCISCO CA CITY & COUNTY
AIRPORT 3.35 05/09/00 10,245,000
4,175,000 SAN FRANCISCO CA CITY & COUNTY
FINANCE AUTHORITY REVENUE 3.30 09/01/06 4,175,000
11,410,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT REVENUE 3.43 01/01/27 11,410,000
5,750,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC - BANK
OF NOVA SCOTIA 3.20 12/01/17 5,750,000
2,200,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC -
CITIBANK 3.15 12/01/17 2,200,000
3,000,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC -
CITIBANK 3.20 12/01/17 3,000,000
31,950,000 SAN FRANCISCO COUNTY CA
INTERNATIONAL AIRPORT COP
SERIES 31 FGIC INSURED 3.41 05/01/29 31,950,000
3,055,000 SAN JACINTO CA USD SERIES A 3.25 09/01/14 3,055,000
5,000,000 SAN JOSE CA MFHR 3.61 05/01/30 5,000,000
5,000,000 SAN JOSE CA MFHR 3.61 05/01/30 5,000,000
2,200,000 SAN JOSE CA MFHR FAIRWAY GLEN
SERIES A 3.20 11/01/07 2,200,000
1,000,000 SAN JOSE CA MULTIFAMILY
HOUSING REVENUE AMT 3.35 03/01/32 1,000,000
6,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT A 3.30 07/01/26 6,000,000
6,800,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT B 3.00 07/01/26 6,800,000
7,300,000 SAN JOSE/SANTA CLARA CLEAN
WATER FINANCING AUTHORITY 3.15 11/15/11 7,300,000
2,000,000 SAN JUAN CA PUBLIC POWER
AGENCY REVENUE SERIES B 3.20 07/01/18 2,000,000
2,200,000 SAN LEANDRO CA MFHR HAAS
AVENUE APARTMENTS LOC - BANK
OF AMERICA 3.25 10/01/07 2,200,000
14,645,000 SAN MATEO COUNTY CA JT POWERS
AUTHORITY LEASE REVENUE SERIES
123 FSA INSURED 3.41 07/15/29 14,645,000
13,885,000 SANTA CLARA CA ELECTRIC
REVENUE SERIES 85B LOC -
NATIONAL WESTMINSTER BANK PLC 3.30 07/01/10 13,885,000
3,490,000 SANTA CLARA CA REDEVELOPMENT
AGENCY TAX ALLOCATION SERIES
164 3.41 06/01/23 3,490,000
1,000,000 SANTA CLARA CA TRANSIT SYSTEM
LOC - SUMITOMO BANK LIMITED 3.25 06/01/15 1,000,000
7,300,000 SANTA CLARA COUNTY CA HOSPITAL
DISTRICT FACILITY REVENUE
SERIES A 3.30 08/01/15 7,300,000
4,600,000 SANTA CLARA COUNTY CA MFHR
FOXCHASE APARTMENTS SERIES E
FGIC INSURED 3.15 11/01/07 4,600,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 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)
$12,000,000 SANTA CRUZ COUNTY CA TAX &
REVENUE 4.50% 10/06/00 $ 12,059,244
4,475,000 SIMI VALLEY CA MFHR CREEKSIDE
VILLAGE APARTMENTS LOC - BANK
OF AMERICA 3.15 07/01/23 4,475,000
3,000,000 SIMI VALLEY CA MFHR LINCOLN
WOOD RANCH LOC - SUMITOMO BANK 3.30 06/01/10 3,000,000
5,800,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE REVENUE SERIES
B AMT 3.25 12/01/18 5,800,000
4,200,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY REVENUE
PALOVERDE PROJECT AMBAC
INSURED 3.15 07/01/17 4,200,000
3,990,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY REVENUE
SPECIAL OBLIGATION SERIES B 5.40 07/01/00 4,010,079
10,000,000 SOUTHERN CALIFORNIA STATE
PUBLIC POWER AUTHORITY PALO
VERDE PROJECT SERIES B AMBAC
INSURED 3.15 07/01/09 10,000,000
1,000,000 SOUTHERN CALIFORNIA STATE
PUBLIC POWER AUTHORITY
SOUTHERN TRANSMISSION PROJECT
LOC - SWISS BANK 3.15 07/01/19 1,000,000
8,000,000 STANISLAUS CA WASTE TO ENERGY
FINANCE AGENCY SOLID WASTE
FACILITY OGDEN MARTIN SYSTEM
PROJECT 3.25 01/01/10 8,000,000
6,300,000 TRACY CA MFHR SYCAMORE VILLAGE
APARTMENTS LOC - BANK OF
AMERICA 2.95 05/01/15 6,300,000
900,000 TURLOCK CA COP IRRIGATION
PROJECT SERIES A 3.20 01/01/26 900,000
4,320,000 TURLOCK CA IRRIGATION DISTRICT
REVENUE SERIES A LOC -
CANADIAN IMPERIAL BANK OF
COMMERCE 3.20 01/01/14 4,320,000
800,000 UNIVERSITY OF CALIFORNIA COP
SERIES 159 3.41 09/01/28 800,000
25,000,000 UNIVERSITY OF CALIFORNIA
REVENUE 3.20 07/06/00 25,000,000
2,700,000 VALLECITOS CA WATER DISTRICT
COP TWIN OAKS RESERVOIR
PROJECT 3.15 07/01/30 2,700,000
4,800,000 VALLEJO CA MFHR HIGHLANDS 3.20 06/01/07 4,800,000
7,300,000 VALLEJO CA MFHR REVENUE SERIES
C 3.25 01/01/08 7,300,000
2,900,000 WALNUT CREEK CA MFHR CREEKSIDE
DRIVE APARTMENTS LOC - BANK OF
AMERICA 2.95 04/01/07 2,900,000
11,900,000 WEST COVINA CA RDA COP
BARRANCA LOC - CITIBANK 3.20 09/01/05 11,900,000
1,500,000 WEST COVINA CA REDEVELOPMENT
AGENCY LEASE REVENUE 3.10 08/01/18 1,500,000
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$2,274,083,337) 2,198,748,337
--------------
PUERTO RICO MUNICIPAL SECURITIES - 12.84%
55,000,000 PUERTO RICO COMMONWEALTH TAX &
REVENUE 4.50 07/30/00 55,131,098
4,850,000 PUERTO RICO COMMONWEALTH 3.36 07/01/09 4,850,000
9,720,000 PUERTO RICO COMMONWEALTH COP
SERIES 125 3.41 07/01/27 9,720,000
30,800,000 PUERTO RICO COMMONWEALTH
GOVERNMENT DEVELOPMENT 3.15 12/01/15 30,800,000
6,090,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE 3.36 07/01/15 6,090,000
3,210,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE 3.36 07/01/26 3,210,000
9,700,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE PA-331 3.36 07/01/14 9,700,000
5,000,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY SERIES A AMBAC
INSURED 3.25 07/01/28 5,000,000
12,000,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 3.41 07/01/28 12,000,000
30,965,000 PUERTO RICO COMMONWEALTH
SERIES 120 MBIA INSURED 3.41 07/01/23 30,965,000
50,500,000 PUERTO RICO COMMONWEALTH
SERIES A-1 3.85 07/30/00 50,500,000
9,500,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 07/01/07 9,500,000
4,850,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 07/01/12 4,850,000
8,535,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.00 05/04/00 8,535,000
5,200,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.00 05/22/00 5,200,000
11,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.10 05/15/00 11,000,000
14,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.45 04/28/00 14,000,000
16,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50 04/26/00 16,000,000
14,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.60 08/29/00 14,000,000
6,600,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.65 10/18/00 6,600,000
</TABLE>
19
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
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)
$ 8,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50% 04/05/00 $ 8,000,000
4,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.70 08/09/00 4,000,000
3,820,000 PUERTO RICO PUBLIC BUILDINGS
AUTHORITY REVENUE 3.36 07/01/27 3,820,000
2,715,000 PUERTO RICO PUBLIC FINANCING
CORPORATION 3.36 06/01/19 2,715,000
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $250,851,098) 326,186,098
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,524,934,435)* (NOTE 1) 99.38% $2,524,934,435
OTHER ASSETS AND LIABILITIES, NET 0.62 15,652,973
------- --------------
TOTAL NET ASSETS 100.00% $2,540,587,408
------- --------------
</TABLE>
+ 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 11%
Airport 1%
Development 9%
Education 4%
Facilities 6%
General 14%
General Obligation 18%
Higher Education 2%
Medical 4%
Multifamily Housing 9%
Pollution 4%
Power 4%
School District 1%
Single Family Hsg 4%
Transportation 1%
Utilities 5%
Water 3%
</TABLE>
Investment Categories Reflect Percentages of Investments in Securities.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER - 1.88%
$ 65,804,000 USA GROUP 5.97%{::} 04/20/00 $ 65,618,488
--------------
TOTAL COMMERCIAL PAPER (COST $65,618,488) 65,618,488
--------------
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 43.94%
FEDERAL HOME LOAN BANK - 7.97%
31,329,000 FEDERAL HOME LOAN BANK 6.15{::} 07/25/00 30,752,965
30,000,000 FEDERAL HOME LOAN BANK 5.87{::} 09/15/00 29,238,954
50,000,000 FEDERAL HOME LOAN BANK 5.76{::} 05/17/00 49,656,861
47,400,000 FEDERAL HOME LOAN BANK 5.75{::} 05/17/00 47,075,573
50,000,000 FEDERAL HOME LOAN BANK 5.75{::} 05/10/00 49,711,709
47,725,000 FEDERAL HOME LOAN BANK 5.74{::} 05/05/00 47,487,012
25,000,000 FEDERAL HOME LOAN BANK 5.93{::} 09/15/00 24,359,654
278,282,728
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 22.87%
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.79{::} 05/11/00 49,695,736
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.85{::} 04/04/00 74,988,073
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.98{::} 06/08/00 49,460,084
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.13{::} 08/17/00 48,876,112
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.44{::} 01/16/01 23,789,274
1,500,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.76{::} 08/10/00 1,470,761
400,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.87{::} 08/04/00 392,418
700,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.83{::} 08/01/00 687,145
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.13{::} 06/29/00 73,906,157
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.06{::} 06/22/00 49,337,222
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.97{::} 06/08/00 49,461,000
18,637,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.89{::} 05/11/00 18,522,310
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.92{::} 05/04/00 49,748,771
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.98{::} 05/02/00 74,648,073
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.79{::} 04/27/00 49,809,667
57,607,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.77{::} 04/13/00 57,515,949
77,021,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.73{::} 04/04/00 77,008,891
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.95{::} 06/01/00 49,519,396
798,837,039
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.10%
59,868,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.89{::} 05/25/00 59,381,140
44,242,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.76{::} 06/01/00 43,835,957
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.80{::} 04/13/00 49,920,625
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.86{::} 05/04/00 49,751,139
41,391,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.74{::} 05/05/00 41,184,597
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.76{::} 05/05/00 49,750,222
25,650,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.80{::} 05/19/00 25,465,925
32,952,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.02{::} 07/07/00 32,441,565
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.08{::} 08/03/00 39,200,223
26,694,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.23{::} 08/03/00 26,142,176
</TABLE>
21
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 40,778,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.77%{::} 05/25/00 $ 40,446,974
457,520,543
--------------
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $1,534,640,310) 1,534,640,310
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE NOTES - 9.86%
FEDERAL HOME LOAN BANK - 5.21%
1,000,000 FEDERAL HOME LOAN BANK 5.15 05/19/00 999,914
50,000,000 FEDERAL HOME LOAN BANK 6.05 11/03/00 49,981,174
30,000,000 FEDERAL HOME LOAN BANK 6.67 04/06/01 29,999,700
40,000,000 FEDERAL HOME LOAN BANK 6.35 02/01/01 39,977,308
1,000,000 FEDERAL HOME LOAN BANK 5.26 05/26/00 999,959
20,000,000 FEDERAL HOME LOAN BANK 5.01 04/28/00 19,999,221
40,000,000 FEDERAL HOME LOAN BANK 6.75 03/01/01 39,997,158
181,954,434
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.00%
35,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.50 01/19/01 34,991,304
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.65%
29,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.55 03/20/01 28,986,823
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.04 04/06/00 24,999,872
16,500,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 9.05 04/10/00 16,511,127
22,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.98 04/20/00 21,999,666
92,497,488
--------------
STUDENT LOAN MORTGAGE ASSOCIATION - 1.00%
35,000,000 STUDENT LOAN MORTGAGE
ASSOCIATION 5.90 12/01/00 34,971,536
--------------
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE NOTES (COST $344,414,762) 344,414,762
--------------
VARIABLE AND FLOATING RATE NOTES - AGENCY - 15.74%
FEDERAL HOME LOAN BANK - 1.43%
50,000,000 FEDERAL HOME LOAN BANK 5.84 05/12/00 49,995,475
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 5.72%
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.82 01/10/01 74,945,103
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.94 12/20/00 49,955,431
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.88 05/18/00 74,992,625
199,893,159
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.59%
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.17 07/17/00 49,992,847
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.88 11/13/00 49,974,061
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.74 08/02/00 49,985,397
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.84 07/14/00 49,990,943
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.89 05/10/00 49,996,968
</TABLE>
22
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.24% 09/18/00 $ 49,995,423
299,935,639
--------------
TOTAL VARIABLE AND FLOATING RATE NOTES -
AGENCY (COST $549,824,273) 549,824,273
--------------
REPURCHASE AGREEMENTS - 29.57%
50,000,000 BEAR STEARNS REPURCHASE
AGREEMENT 5.82 04/06/00 50,000,000
368,641,152 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.22 04/03/00 368,641,152
2,102,038 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 2,102,038
62,342,874 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.20 04/03/00 62,342,874
550,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.50 04/06/00 550,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$1,033,086,064) 1,033,086,064
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $3,527,583,897)* 100.99% $3,527,583,897
OTHER ASSETS AND LIABILITIES, NET (0.99) (34,668,192)
------- --------------
TOTAL NET ASSETS 100.00% $3,492,915,705
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $3,527,661,958.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES - 0.84%
$ 15,000,000 LIBERTY LIGHTHOUSE US
CAPITAL++ 6.04% 08/11/00 $ 14,999,983
9,750,000 MOAT FUNDING LLC++ 6.04 05/02/00 9,750,000
75,000,000 SIGMA FINANCE INCORPORATED++ 6.09 10/05/00 75,000,000
3,929,957 STEERS 1998 SERIES A39++ 6.19 04/25/00 3,929,957
6,500,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-3++ 6.14 06/15/00 6,500,000
17,054,483 WFP TOWER B FINANCE
CORPORATION SHORT-TERM STEERS
TRUST++ 6.12 07/07/00 17,054,483
TOTAL ASSET BACKED SECURITIES (COST
$127,234,423) 127,234,423
---------------
BANK NOTES - 0.66%
100,000,000 BANK OF AMERICA SECURITIES 5.93 04/26/00 100,000,000
---------------
TOTAL BANK NOTES (COST $100,000,000) 100,000,000
---------------
CERTIFICATES OF DEPOSIT - 8.41%
43,800,000 ABN AMRO BANK CHICAGO 6.72 02/12/01 43,789,216
139,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 5.10 04/12/00 138,998,349
46,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 01/29/01 45,985,607
75,000,000 COMMERZ BANK 5.22 05/12/00 74,996,507
85,000,000 COMMERZ BANK 5.15 04/20/00 84,998,094
9,550,000 COMMERZ BANK 5.16 05/05/00 9,549,194
100,000,000 COMMERZ BANK 6.77 02/28/01 99,974,199
56,700,000 NATIONAL WEST SECURITIES 5.14 04/14/00 56,699,179
45,000,000 NATIONAL WESTMINSTER BANK 6.47 01/18/01 44,983,002
100,000,000 PARIBAS 5.95 04/28/00 100,000,000
60,000,000 PARIBAS 5.93 04/28/00 60,000,000
85,000,000 SOUTH TRUST BANK 5.95 04/27/00 85,000,000
100,000,000 SOUTH TRUST BANK 6.00 05/18/00 100,000,000
35,500,000 U.S. BANK 6.59 01/16/01 35,500,000
145,800,000 UNION BANK OF SWITZERLAND 6.22 12/11/00 145,728,072
150,000,000 UNION BANK OF SWITZERLAND 6.24 12/06/00 149,932,298
TOTAL CERTIFICATES OF DEPOSIT (COST
$1,276,133,717) 1,276,133,717
---------------
COMMERCIAL PAPER - 61.35%
124,300,000 ACE OVERSEAS CORPORATION 5.92{::} 04/03/00 124,300,000
100,000,000 ACE OVERSEAS CORPORATION 6.08{::} 04/24/00 99,645,334
34,000,000 ACE OVERSEAS CORPORATION 6.12{::} 06/12/00 33,595,400
62,000,000 ACE OVERSEAS CORPORATION 6.12{::} 06/20/00 61,177,880
63,000,000 AEGON FUNDING 6.30{::} 09/25/00 61,070,625
50,000,000 ANZ DELAWARE INCORPORATED 6.08{::} 09/11/00 48,640,445
48,500,000 APRECO INCORPORATED 5.90{::} 04/10/00 48,444,360
50,000,000 APRECO INCORPORATED 5.91{::} 04/11/00 49,934,333
35,000,000 APRECO INCORPORATED 6.07{::} 05/01/00 34,834,761
25,000,000 APRECO INCORPORATED 6.09{::} 05/23/00 24,788,542
101,625,000 AQUINAS FUNDING LLC 6.35{::} 04/03/00 101,625,000
6,500,000 ASSET BACKED CAPITAL FINANCE 5.90{::} 05/22/00 6,447,802
50,000,000 ASSET BACKED CAPITAL FINANCE 5.75{::} 06/01/00 49,528,820
150,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/11/00 149,064,250
96,978,000 ATLANTIS ONE FUNDING
CORPORATION 5.95{::} 05/17/00 96,272,755
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$100,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.90%{::} 05/09/00 $ 99,410,000
50,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/05/00 49,734,243
180,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/10/00 178,906,650
84,000,000 AUSTRALIA & NEW ZEALAND
INCORPORATED 6.08{::} 09/07/00 81,772,694
100,000,000 BANK OF AMERICA CORPORATION 5.89{::} 05/01/00 99,541,889
75,000,000 BANK OF AMERICA CORPORATION 5.95{::} 05/23/00 74,380,209
40,639,000 BARTON CAPITAL CORPORATION 5.90{::} 05/16/00 40,352,608
22,500,000 BAVARIA GLB CORPORATION 6.10{::} 06/15/00 22,221,688
29,000,000 BAVARIA UNIVERSAL FUNDING 6.11{::} 06/20/00 28,616,089
45,000,000 BEETHOVEN FUNDING CORPORATION 6.10{::} 04/25/00 44,832,250
4,000,000 BETA FINANCE INCORPORATED 6.15{::} 09/15/00 4,000,000
109,000,000 BETA FINANCE INCORPORATED 6.15{::} 10/06/00 109,000,000
80,000,000 BRITISH AEROSPACE 6.07{::} 05/22/00 79,339,045
30,000,000 CC USA INCORPORATED 6.10{::} 09/15/00 29,161,251
75,000,000 CITICORP 5.92{::} 04/07/00 74,950,667
100,000,000 CITIGROUP INCORPORATED 6.02{::} 04/07/00 99,933,111
145,000,000 COMMERZBANK 5.90{::} 05/17/00 143,954,389
50,000,000 COMPASS SECURITIZATION 5.88{::} 04/04/00 49,991,833
112,930,000 COMPASS SECURITIZATION 5.91{::} 04/10/00 112,800,225
100,000,000 COMPASS SECURITIZATION 5.95{::} 04/13/00 99,834,722
50,000,000 COMPASS SECURITIZATION 5.91{::} 04/17/00 49,885,083
128,000,000 COMPASS SECURITIZATION 6.08{::} 04/20/00 127,632,498
98,500,000 CORPORATE ASSET FUNDING
COMPANY INCORPORATED 6.06{::} 05/24/00 97,654,378
63,100,000 CORPORATE ASSET SECURITIZATION
LIMITED INCORPORATED 6.09{::} 04/26/00 62,854,489
75,000,000 CORPORATE ASSET SECURITIZATION
LIMITED INCORPORATED 6.06{::} 04/18/00 74,810,625
100,000,000 CORPORATE RECEIVABLES
CORPORATION 6.06{::} 05/25/00 99,124,667
130,000,000 CREDIT SUISSE FIRST BOSTON 6.08{::} 08/09/00 127,189,690
40,000,000 CREDIT SUISSE FIRST BOSTON 6.05{::} 08/14/00 39,105,945
28,500,000 CXC INCORPORATED 6.07{::} 05/25/00 28,250,119
65,000,000 DEUTSCHE BANK NY 6.07{::} 10/10/00 64,985,473
12,300,000 DORADA CORPORATION 6.10{::} 09/14/00 11,958,198
53,000,000 DORADA CORPORATION 6.10{::} 09/15/00 51,518,209
50,000,000 EUREKA SECURITIZATION
INCORPORATED 6.09{::} 05/24/00 49,568,625
16,600,000 FIRST USA BANK 5.99{::} 09/21/00 16,597,772
19,485,000 FOUNTAIN SQUARE FUNDING
CORPORATION 6.08{::} 04/17/00 19,438,929
10,000,000 GENERAL ELECTRIC CAPITAL
CORPORATION 5.83{::} 04/10/00 9,988,663
250,000,000 GENERAL ELECTRIC CAPITAL
CORPORATION 6.05{::} 04/27/00 248,991,667
50,000,000 GENERAL ELECTRIC CAPITAL
SERVICES 5.90{::} 05/11/00 49,688,611
39,227,000 GIRO FUNDING CORPORATION 6.07{::} 05/03/00 39,028,577
50,161,000 GIRO FUNDING CORPORATION 6.02{::} 04/05/00 50,144,224
47,153,000 GIRO FUNDING CORPORATION 5.90{::} 04/10/00 47,098,905
25,134,000 GIRO FUNDING CORPORATION 5.92{::} 04/11/00 25,100,935
162,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.10{::} 08/25/00 158,047,200
1,500,000 GOLDMAN SACHS GROUP
INCORPORATED 6.07{::} 08/31/00 1,500,000
57,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.50{::} 12/22/00 57,000,000
50,000,000 GOLDMAN SACHS GROUP
INCORPORATED 5.92{::} 05/10/00 49,695,778
35,000,000 GRAND FUNDING CORPORATION 6.06{::} 05/23/00 34,705,417
</TABLE>
25
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$105,341,000 GREENWICH FUNDING CORPORATION 5.91%{::} 04/10/00 $ 105,220,048
64,200,000 GREYHAWK CAPITAL CORPORATION 5.91{::} 05/11/00 63,799,499
25,000,000 GREYHAWK FUNDING CORPORATION 5.91{::} 05/16/00 24,823,521
10,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.95{::} 04/28/00 9,958,681
32,329,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 04/24/00 32,214,151
75,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 04/20/00 74,784,313
150,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.89{::} 04/03/00 150,000,000
55,616,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.03{::} 04/04/00 55,606,684
65,940,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 05/02/00 65,616,509
23,500,000 IRISH PERMANENT TREASURY 5.88{::} 04/25/00 23,415,557
86,100,000 IRISH PERMANENT TREASURY 6.15{::} 10/26/00 83,069,998
100,000,000 IRISH PERMANENT TREASURY 5.93{::} 05/12/00 99,357,583
50,000,000 IRISH PERMANENT TREASURY 5.93{::} 05/11/00 49,687,028
50,000,000 IRISH PERMANENT TREASURY 5.88{::} 04/26/00 49,812,167
100,000,000 IRISH PERMANENT TREASURY 5.94{::} 05/08/00 99,422,500
119,000,000 J.P. MORGAN & COMPANY
INCORPORATED 5.90{::} 05/18/00 118,122,375
11,000,000 K2 USA LLC 5.91{::} 05/30/00 10,897,068
50,000,000 K2 USA LLC 6.14{::} 07/17/00 49,104,584
175,000,000 KBC COMMERCIAL PAPER TRUST 5.90{::} 04/07/00 174,885,278
75,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.90{::} 04/04/00 74,987,708
60,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 6.03{::} 04/05/00 59,979,900
50,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.95{::} 05/26/00 49,562,014
50,000,000 LINKS FINANCE 5.93{::} 05/04/00 49,744,681
12,678,000 LINKS FINANCE 5.89{::} 04/26/00 12,630,292
80,000,000 MOAT FUNDING LLC 5.90{::} 04/06/00 79,960,667
7,250,000 MOAT FUNDING LLC 5.73{::} 05/09/00 7,208,458
131,000,000 MOAT FUNDING LLC 5.99{::} 05/09/00 130,249,369
150,000,000 MOAT FUNDING LLC 5.90{::} 04/25/00 149,459,167
175,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.10{::} 06/20/00 172,687,084
49,000,000 MORIARTY LIMITED 5.93{::} 05/04/00 48,749,787
80,000,000 MORIARTY LIMITED 5.92{::} 05/10/00 79,513,245
60,000,000 MORIARTY LIMITED 5.91{::} 05/17/00 59,566,600
100,000,000 MORIARTY LIMITED 5.94{::} 05/22/00 99,191,500
126,386,000 NEPTUNE FUNDING CORPORATION 6.08{::} 04/20/00 126,023,132
101,179,000 OLD LINE FUNDING CORPORATION 5.90{::} 04/10/00 101,062,925
22,613,000 OLD LINE FUNDING CORPORATION 5.93{::} 05/04/00 22,497,529
150,000,000 PARK AVENUE RECEIVABLES
CORPORATION 5.91{::} 04/12/00 149,778,375
54,834,000 PERRY II FUNDING ACE
CORPORATION 5.95{::} 05/01/00 54,580,240
80,000,000 PERRY IV FUNDING CORPORATION 5.96{::} 04/17/00 79,814,578
39,525,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 5.94{::} 05/22/00 39,205,441
55,206,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 6.10{::} 05/30/00 54,672,802
60,000,000 RECEIVABLES CAPITAL
CORPORATION 5.94{::} 04/14/00 59,891,100
95,000,000 REGIONS BANK 6.09{::} 10/10/00 94,971,701
85,000,000 SALOMON SMITH BARNEY HOLDINGS 5.91{::} 05/05/00 84,553,467
100,000,000 SALOMON SMITH BARNEY HOLDINGS 6.01{::} 04/07/00 99,933,222
100,000,000 SALOMON SMITH BARNEY HOLDINGS 5.90{::} 04/10/00 99,885,278
60,000,000 SHEFFIELD RECEIVABLES
CORPORATION 6.03{::} 04/03/00 60,000,000
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 34,800,000 SHEFFIELD RECEIVABLES
CORPORATION 6.10%{::} 05/26/00 $ 34,487,477
13,000,000 SIGMA FINANCE CORPORATION 5.92{::} 05/12/00 12,916,627
40,500,000 SIGMA FINANCE CORPORATION 5.73{::} 05/23/00 40,177,688
47,000,000 SIGMA FINANCE CORPORATION 5.95{::} 05/23/00 46,611,598
34,000,000 SIGMA FINANCE CORPORATION 6.30{::} 09/22/00 32,976,600
138,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.91{::} 04/06/00 137,932,035
48,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 05/18/00 47,643,000
30,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 05/08/00 29,826,458
80,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.92{::} 04/07/00 79,947,378
60,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 6.04{::} 04/07/00 59,959,733
27,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 04/11/00 26,964,300
72,000,000 SURREY FUNDING 5.92{::} 04/03/00 72,000,000
249,000,000 SURREY FUNDING 5.93{::} 04/03/00 249,000,000
50,000,000 SYDNEY CAPITAL CORPORATION 5.95{::} 04/13/00 49,917,361
24,425,000 SYDNEY CAPITAL CORPORATION 5.95{::} 05/01/00 24,311,967
37,165,000 SYDNEY CAPITAL CORPORATION 5.90{::} 04/10/00 37,122,363
3,340,000 SYDNEY CAPITAL CORPORATION 5.97{::} 04/18/00 3,331,691
74,781,000 SYDNEY CAPITAL CORPORATION 6.07{::} 04/28/00 74,465,778
33,136,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/04/00 32,966,795
45,567,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/10/00 45,289,282
80,792,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.89{::} 04/25/00 80,501,194
34,376,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.01{::} 04/14/00 34,312,872
23,472,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/15/00 23,309,613
178,800,000 TRIDENT CAPITAL FINANCE 5.90{::} 04/03/00 178,800,000
95,000,000 TRIDENT CAPITAL FINANCE 5.91{::} 05/11/00 94,407,358
21,000,000 WINDMILL FUNDING CORPORATION 6.06{::} 05/23/00 20,823,250
TOTAL COMMERCIAL PAPER (COST $9,313,828,771) 9,313,828,771
---------------
CORPORATE BONDS & NOTES - 12.11%
66,750,000 ABBEY NATIONAL TREASURY
SERVICE 5.13 05/04/00 66,746,180
94,000,000 ABBEY NATIONAL TREASURY
SERVICE 5.65 07/24/00 93,986,183
80,000,000 BETA FINANCE INCORPORATED 6.77 03/15/01 80,000,000
87,000,000 BETA FINANCE INCORPORATED 6.82 02/15/01 87,000,000
150,000,000 BETA FINANCE INCORPORATED 6.83 02/20/01 150,000,000
85,000,000 BETA FINANCE INCORPORATED 6.65 02/05/01 85,000,000
7,800,000 CC USA INCORPORATED 5.61 06/07/00 7,800,000
65,250,000 CC USA INCORPORATED 6.17 10/16/00 65,250,000
113,000,000 CC USA INCORPORATED 6.79 03/15/01 113,000,000
140,000,000 CC USA INCORPORATED 6.77 03/15/01 140,000,000
95,000,000 CENTAURI CORPORATION 6.66 02/04/01 95,000,000
75,000,000 CREDIT SUISSE FIRST BOSTON 5.75 07/14/00 75,000,000
110,000,000 DORADA FINANCE INCORPORATED 6.79 03/15/01 110,000,000
80,000,000 DORADA FINANCE INCORPORATED 6.77 03/15/01 80,000,000
80,000,000 FIRST UNION CORPORATION 5.80 07/03/00 80,000,000
142,750,000 GOLDMAN SACHS GROUP
INCORPORATED 6.00 08/07/00 142,750,000
63,250,000 GOLDMAN SACHS GROUP
INCORPORATED 6.10 09/25/00 63,250,000
6,750,000 IBM CREDIT CORPORATION 5.27 04/07/00 6,749,948
2,000,000 JOHN DEERE CAPITAL 5.73 07/13/00 1,999,680
</TABLE>
27
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES (continued)
$ 21,445,000 SALOMON SMITH BARNEY 6.70% 07/05/00 $ 21,478,883
75,000,000 SIGMA FINANCE INCORPORATED 6.10 10/23/00 75,000,000
103,250,000 SIGMA FINANCE INCORPORATED 5.44 05/24/00 103,250,000
24,750,000 TEXACO CAPITAL 5.11 05/03/00 24,748,628
70,000,000 U.S. BANK 5.92 9/20/00 69,973,324
TOTAL CORPORATE BONDS & NOTES (COST
$1,837,982,826) 1,837,982,826
---------------
FLOATING RATE FUNDING AGREEMENTS - 1.13%
7,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.10 06/29/00 7,250,000
7,250,000 GE LIFE & ANNUITY 5.91 07/01/00 7,250,000
7,250,000 GE LIFE & ANNUITY 5.91 07/01/00 7,250,000
150,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.15 02/09/01 150,000,000
TOTAL FLOATING RATE FUNDING AGREEMENTS (COST
$171,750,000) 171,750,000
---------------
MASTER NOTES - 0.02%
2,424,547 GENERAL ELECTRIC COMPANY++ 6.00 04/06/00 2,424,547
---------------
TOTAL MASTER NOTES (COST $2,424,547) 2,424,547
---------------
MUNICIPAL DEMAND NOTES - 0.02%
1,200,000 DURHAM NC COP SERIES B++ 6.15 07/01/03 1,200,000
190,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 190,000
120,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 120,000
360,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 360,000
255,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 255,000
155,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 155,000
235,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 235,000
200,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES SERIES A
WACHOVIA BANK OF NORTH
CAROLINA LOC++ 6.15 03/01/17 200,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$2,715,000) 2,715,000
---------------
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 0.03%
4,300,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.83{::} 08/01/00 4,221,021
---------------
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $4,221,021) 4,221,021
---------------
SHORT-TERM FEDERAL AGENCIES - 0.09%
10,000,000 FEDERAL HOME LOAN BANK 5.26 05/26/00 9,999,584
3,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.98 04/20/00 2,999,943
TOTAL SHORT-TERM FEDERAL AGENCIES (COST
$12,999,527) 12,999,527
---------------
TIME DEPOSITS - 0.73%
10,348,090 MARSHALL & ILSLEY CORPORATION 6.19 04/03/00 10,348,090
100,000,000 BARCLAYS BANK 6.34 04/03/00 100,000,000
TOTAL TIME DEPOSITS (COST $110,348,090) 110,348,090
---------------
VARIABLE & FLOATING RATE BONDS - 0.49%
75,000,000 AMERICAN EXPRESS CREDIT
CORPORATION 6.20 04/24/00 75,000,000
---------------
TOTAL VARIABLE & FLOATING RATE BONDS (COST
$75,000,000) 75,000,000
---------------
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE CERTIFICATES OF DEPOSIT - 0.06%
$ 8,500,000 SOUTH TRUST BANK 6.16% 09/29/00 $ 8,496,653
---------------
TOTAL VARIABLE & FLOATING RATE CERTIFICATES
OF DEPOSIT (COST $8,496,653) 8,496,653
---------------
VARIABLE & FLOATING RATE NOTES - 7.95%
70,000,000 BANK OF AMERICA 6.16 04/05/00 69,999,851
7,500,000 BEAR STEARNS & COMPANY
INCORPORATED 6.15 11/15/00 7,500,000
3,750,000 BEAR STEARNS & COMPANY
INCORPORATED 6.11 9/15/00 3,749,667
300,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.19 03/29/01 300,000,000
7,250,000 BEAR STEARNS & COMPANY
INCORPORATED 6.12 06/16/00 7,250,427
56,700,000 COMERICA BANK 6.18 09/25/00 56,681,340
100,000,000 DEUTSCHE BANK FINANCIAL
INCORPORATED 6.14 04/17/00 99,997,758
23,000,000 FIRST UNION NATIONAL BANK 6.16 08/25/00 23,000,000
4,750,000 GOLDMAN SACHS GROUP
INCORPORATED 6.16 07/14/00 4,750,489
144,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.09 09/15/00 143,993,510
300,000,000 J.P. MORGAN & COMPANY
INCORPORATED 5.99 03/16/01 300,000,000
155,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.00 03/16/01 155,000,000
10,250,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.25 03/15/01 10,250,000
16,750,000 NATIONAL CITY BANK 6.15 09/29/00 16,743,555
8,500,000 SIGMA FINANCE INCORPORATED 6.09 10/05/00 8,500,000
TOTAL VARIABLE & FLOATING RATE NOTES (COST
$1,207,416,597) 1,207,416,597
---------------
REPURCHASE AGREEMENTS -- 5.64%
175,000,000 DEUTSCHE BANK REPURCHASE
AGREEMENT 6.50 04/06/00 175,000,000
1,211,991 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 1,211,991
510,012,095 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.35 04/03/00 510,012,095
20,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.42 04/03/00 20,000,000
150,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.50 04/06/00 150,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$856,224,086) 856,224,086
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $15,106,775,258)* 99.53% $15,106,775,258
OTHER ASSETS AND LIABILITIES NET 0.47 71,822,028
------- ---------------
TOTAL NET ASSETS 100.00% $15,178,597,286
------- ---------------
</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.
29
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 99.21%
ALABAMA - 4.07%
$ 9,500,000 ALABAMA SPECIAL CARE FACILITIES FINANCING
AUTHORITY RV ASCENSION HEALTH CREDIT PROJECT
SERIES B SALOMON SMITH BARNEY LOC++ 3.85% 11/15/39 $ 9,500,000
700,000 ALABAMA STATE PUBLIC SCHOOL & COLLEGE AUTHORITY
PUTTERS SERIES 101 BANK OF NY INSURED++ 3.98 11/01/13 700,000
3,000,000 JEFFERSON COUNTY AL SEWER RV PA 487 R++ 3.96 02/01/38 3,000,000
13,200,000
------------
ALASKA - 0.06%
200,000 ALASKA HOUSING FINANCE CORPORATION HOUSING RV
SERIES 2-REG D MBIA INSURED++ 4.00 06/01/35 200,000
------------
ARIZONA - 0.10%
200,000 COCHISE COUNTY AZ UNIVERSITY SD NO. 68 SIERRA
VISTA SERIES B FGIC INSURED P/R 7/1/01 @ 101 7.63 07/01/10 203,894
100,000 Sedona AZ Sewer RV Series A 7.50 07/01/20 102,835
306,729
------------
ARKANSAS - 1.79%
5,800,000 FAYETTEVILLE AR PUBLIC FACILITIES BOARD RV
BUTTERFIELD TRAIL VILLAGE DRESDNER BANK AG LOC++ 4.00 09/01/27 5,800,000
------------
CALIFORNIA - 3.11%
10,100,000 CALIFORNIA HIGHER EDUCATIONAL LOAN AUTHORITY
STUDENT LOAN RV SERIES E-1 STUDENT LOAN MARKETING
LOC++ 3.95 12/01/22 10,100,000
------------
COLORADO - 2.53%
300,000 DENVER CO CITY & COUNTY SD #1 FRN PT 1135++ 3.90 12/01/19 300,000
700,000 DENVER CO CITY & COUNTY GO SERIES A 5.60 08/01/00 703,893
100,000 JEFFERSON COUNTY CO SD #R-001 TAX ANTICIPATION 4.50 06/30/00 100,179
100,000 MOFFAT COUNTY CO PCR AMBAC INSURED++ 3.95 07/01/10 100,000
7,000,000 PITKIN COUNTY CO IDR ASPEN SKIING PROJECT
SERIES A FIRST NATIONAL BANK CHICAGO LOC++ 4.00 04/01/16 7,000,000
8,204,072
------------
FLORIDA - 1.18%
100,000 DADE COUNTY FL IDA RV GUARANTEED BY ADP
INCORPORATED++ 4.30 11/15/17 100,000
3,000,000 DADE COUNTY FL WATER & SEWER RV FGIC INSURED 5.00 10/01/00 3,012,923
700,000 LAUREL CLUB CERTIFICATE TRUST COP SERIES A SWISS
BANK LOC++ 4.05 06/01/25 700,000
3,812,923
------------
GEORGIA - 0.89%
1,350,000 COBB COUNTY GA SD GO 6.00 02/01/01 1,370,652
500,000 COBB COUNTY GA SD GO BANC OF AMERICA LOC 4.38 12/29/00 501,447
800,000 FULTON COUNTY GA RESIDENTIAL CARE FACILITIES
HEALTH CARE RV LENBROOK SQUARE FOUNDATION RABOBANK
NEDERLAND LOC++ 4.00 01/01/18 800,000
200,000 GEORGIA LOCAL GOVERNMENT COP SERIES PT 1060 MBIA
INSURED++ 3.96 06/01/28 200,000
2,872,099
------------
</TABLE>
30
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
HAWAII - 0.66%
$ 100,000 HAWAII STATE DEPARTMENT OF BUDGET & FINANCE
SPECIAL PURPOSE MORTGAGE RV KUAKINI MEDICAL CENTER
PROJECT BANK OF HAWAII LOC++ 4.10% 07/01/04 $ 100,000
100,000 HAWAII STATE GO SERIES CQ FGIC INSURED 5.00 10/01/00 100,479
1,650,000 HAWAII STATE SERIES PA 483++ 3.96 03/01/14 1,650,000
300,000 HONOLULU HI CITY & COUNTY FRN PT 1150 FGIC
INSURED++ 3.96 07/01/15 300,000
2,150,479
------------
ILLINOIS - 5.95%
300,000 CHICAGO IL GO EQUIPMENT NOTES HARRIS TRUST &
SAVINGS LOC MANDATORY PUT DATE 10/05/00 3.90 01/01/06 300,000
1,900,000 CHICAGO IL GO SERIES A LANDESBANK HESSEN LOC 3.90 01/03/02 1,900,000
100,000 COOK COUNTY IL MUNICIPAL TRUST RECEIPTS
SERIES SG-7 MBIA INSURED++ 3.96 11/15/23 100,000
2,200,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY RV
RESIDENTIAL RENTAL FNMA INSURED++ 3.95 04/01/24 2,200,000
100,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY RV AMERICAN
COLLEGE OCCUPATIONAL LOC AMERICAN NATIONAL++ 4.00 10/01/18 100,000
1,000,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY RV REVCOR
INCORPORATED PROJECT LASALLE NATIONAL BANK LOC++ 4.00 06/01/08 1,000,000
4,500,000 ILLINOIS HEALTH FACILITIES AUTHORITY RV MEMORIAL
MEDICAL CENTER SERIES C KREDIETBANK N.V. LOC++ 3.90 01/01/16 4,500,000
800,000 ILLINOIS HEALTH FACILITIES AUTHORITY HEALTH CARE
RV EVANSTON HOSPITAL CORPORATION 3.45 08/15/30 800,000
5,200,000 ILLINOIS HEALTH FACILITIES AUTHORITY HEALTH CARE
RV CONDELL MEMORIAL HOSPITAL FIRST NATIONAL BANK
OF CHICAGO LOC++ 3.90 11/01/05 5,200,000
2,100,000 ILLINOIS HEALTH FACILITIES AUTHORITY HEALTH CARE
RV SERIES 166 AMBAC INSURED++ 3.98 02/15/24 2,100,000
1,000,000 ILLINOIS STATE TOLL HIGHWAY AUTHORITY RV SERIES B
FSA INSURED++ 3.95 01/01/17 1,000,000
100,000 SPRINGFIELD IL TRANSPORTATION RV GUARANTEED BY
ALLIED SIGNAL++ 4.00 10/15/16 100,000
19,300,000
------------
INDIANA - 5.28%
6,670,000 INDIANA BOND BANK RV SERIES 277 MORGAN STANLEY
DEAN WITTER LOC++ 4.11 02/01/17 6,670,000
7,600,000 INDIANA HFFA HOSPITAL RV SERIES 271, MBIA
INSURED++ 4.11 11/01/19 7,600,000
100,000 INDIANA STATE DEVELOPMENT FINANCE AUTHORITY
EDUCATIONAL FACILITIES RV LUTHERAN PROJECT FIRST
OF AMERICA LOC++ 4.00 10/01/17 100,000
1,075,000 INDIANA STATE HFA MFHR PEDCOR INVESTMENTS M-A++ 4.00 01/01/29 1,075,000
100,000 INDIANA STATE EDUCATIONAL FACILITIES AUTHORITY RV
BETHEL COLLEGE SERIES B BANK ONE INDIANA, LOC++ 3.95 09/01/17 100,000
90,000 INDIANAPOLIS IN ECONOMIC DEVELOPMENT RV VISITING
NURSE SERVICE FOUNDATION FIRST OF AMERICA BANK
LOC++ 4.00 03/01/13 90,000
1,355,000 INDIANAPOLIS IN LOCAL PUBLIC IMPROVEMENT BOND BANK
RV SERIES A 7.40 01/01/20 1,392,957
105,000 PORTAGE IN ECONOMIC DEVELOPMENT RV PEDCOR
INVESTMENTS PROJECT SERIES A FHLB INSURED++ 4.00 08/01/30 105,000
17,132,957
------------
IOWA - 0.22%
200,000 DES MOINES IA IDR GRAND OFFICE PARK, GUARANTEED BY
PRINCIPAL MUTUAL LIFE++ 4.15 04/01/15 200,000
100,000 IOWA HEFA RV ANTICIPATION NOTE, MORNINGSIDE
PROJECT SERIES G 3.50 05/24/00 100,020
200,000 MASON CITY IA IDR SUPERVALU INCORPORATED PROJECT
WACHOVIA BANK LOC++ 4.10 09/01/14 200,000
200,000 URBANDALE IA IDR INTERSTATE ACRES L.P. PROJECT
GUARANTEED BY PRINCIPAL MUTUAL LIFE INSURANCE++ 4.05 12/01/14 200,000
700,020
------------
</TABLE>
31
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
KENTUCKY - 2.99%
$ 100,000 KENTUCKY ASSET/LIABILITY RV TAX & REVENUE 4.50% 06/28/00 $ 100,154
9,300,000 KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY
HOSPITAL FACILITIES RV HEALTH ALLIANCE PROJECT
SERIES C MBIA INSURED++ 3.85 01/01/22 9,300,000
100,000 KENTUCKY STATE TURNPIKE AUTHORITY ECONOMIC
DEVELOPMENT RV REVITALIZATION PROJECT P/R 5/15/00
@ 101.5 7.38 05/15/07 101,583
200,000 KENTUCKY STATE TURNPIKE AUTHORITY RESOURCE
RECOVERY ROAD RV SERIES 17 FSA INSURED++ 4.00 07/01/03 200,000
9,701,737
------------
LOUISIANA - 8.48%
100,000 CALCASIEU PARISH LA SALES TAX DISTRICT NO. 4 TAX
RV ROAD IMPROVEMENT CREDIT DE FRANCE LOC++ 3.90 09/01/01 100,000
4,600,000 JEFFERSON PARISH LA HOSPITAL SERVICES DISTRICT #2
HEALTH CARE RV WEST JEFFERSON MEDICAL CENTER
PROJECT++ 3.96 12/01/15 4,600,000
100,000 LOUISIANA PUBLIC FACILITIES AUTHORITY HOSPITAL RV
WILLIS KNIGHTON MEDICAL CENTER PROJECT++ 4.00 09/01/25 100,000
5,300,000 LOUISIANA PUBLIC FACILITIES AUTHORITY HOSPITAL RV
WILLIS KNIGHTON MEDICAL PROJECT AMBAC INSURED++ 4.00 09/01/23 5,300,000
500,000 LOUISIANA PUBLIC FACILITIES AUTHORITY HOSPITAL RV
WILLIS KNIGHTON MEDICAL CENTER AMBAC INSURED++ 4.00 09/01/27 500,000
3,125,000 LOUISIANA STATE HEALTH EDUCATION AUTHORITY RV++ 3.96 10/01/17 3,125,000
300,000 NATCHITOCHES PARISH LA TRUST JOIST CORPORATION
PROJECT WACHOVIA BANK LOC++ 4.20 10/01/00 300,000
5,975,000 PLAQUEMINES LA PORT HARBOR & TERM DISTRICT PORT
FACILITIES RV INTERNATIONAL MARINE TERMINAL
PROJECT SERIES B KREDIETBANK NV LOC OPTIONAL PUT
3/15/01 @ 100 4.20 03/15/06 5,975,000
5,000,000 PLAQUEMINES LA PORT HARBOR & TERM DISTRICT PORT
FACILITIES RV INTERNATIONAL MARINE TERMINAL
PROJECT SERIES A KREDIETBANK NV LOC OPTIONAL PUT
3/15/01 @ 100 4.20 03/15/06 5,000,000
2,500,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT NO.
3 IDR DOW CHEMICAL CO. PROJECT++ 4.10 12/01/23 2,500,000
27,500,000
------------
MAINE - 1.48%
2,400,000 MAINE HEHFA RV PIPER SHORES SERIES B PARIBAS LOC++ 4.00 01/01/29 2,400,000
2,400,000 REGIONAL WASTE SYSTEMS INCORPORATED ME SOLID WASTE
RECOVERY RV SERIES K++ 4.00 07/01/12 2,400,000
4,800,000
------------
MARYLAND - 5.08%
500,000 HOWARD COUNTY MD CONSERVATIVE PUBLIC IMPROVEMENT
GO SERIES A 3.07 04/14/00 499,971
300,000 HOWARD COUNTY MD MFHR SHERWOOD CROSSING LIMITED
PROJECT GUARDIAN SAVINGS & LOAN LOC MANDATORY PUT
6/1/00 @ 100 3.30 06/01/15 300,000
9,090,000 MARYLAND STATE COMMUNITY DEVELOPMENT
ADMINISTRATION DEPARTMENT HOUSING & COMMUNITY
DEVELOPMENT RV BAYERISHCE HYPO-UNDE LOC++ 3.96 04/01/18 9,090,000
6,600,000 MARYLAND STATE HEHFA RV CATHOLIC HEALTH SERIES B
MORGAN GUARANTY TRUST LOC++ 3.95 12/01/15 6,600,000
16,489,971
------------
MICHIGAN - 2.22%
975,000 MICHIGAN STATE BUILDING AUTHORITY RV FACILITIES
PROJECT SERIES II 5.00 10/15/00 980,805
4,500,000 MICHIGAN STATE HIGHER EDUCATION LOAN RV
SERIES XII-B AMBAC INSURED++ 3.90 10/01/13 4,500,000
90,000 MICHIGAN STATE HOSPITAL FINANCIAL AUTHORITY RV,
HOSPITAL EQUIPMENT LOAN PROGRAM SERIES A FIRST OF
AMERICA LOC++ 3.85 12/01/23 90,000
</TABLE>
32
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MICHIGAN (continued)
$ 1,600,000 MICHIGAN STATE STRATEGIC FUND LIMITED OBLIGATION
RV MERCY SERVICES FOR AGING PROJECT GOLDMAN
SACHS & CO. LOC COLL USG P/R 5/15/00 @ 102 9.40% 05/15/20 $ 1,641,551
7,212,356
------------
MINNESOTA - 5.59%
1,500,000 CITY OF ROCHESTER SERIES B 3.60 04/10/00 1,500,000
4,950,000 COHASSET MN IDR MINNESOTA POWER & LIGHT CO.
PROJECT SERIES A AMN AMRO BANK N.V. LOC++ 4.00 06/01/20 4,950,000
2,100,000 CRYSTAL MN MFHR CRYSTAL APARTMENTS L.P. PROJECT
FHLB LOC++ 3.85 05/01/27 2,100,000
2,000,000 EDINA MN MFHR EDINA PARK PLAZA FHLMC LOC++ 3.85 12/01/29 2,000,000
100,000 MINNEAPOLIS & ST. PAUL MN HOUSING & REDEVELOPMENT
AUTHORITY HEALTH CARE SYSTEM HEALTHONE OBLIGATED
GROUP PROJECT SERIES B 8.00 08/15/14 103,487
200,000 MINNESOTA SD TAX & AID ANTICIPATION BORROWING
PROGRAM COP TAX ANTICIPATION CERTIFICATES
INDEBENTURE SERIES A 3.45 08/15/00 200,000
3,500,000 MINNESOTA SD TAX & AID ANTICIPATION COP TAX
ANTICIPATION CERTIFICATES INDEBENTURE SERIES A 4.25 02/28/01 3,501,430
200,000 MINNESOTA STATE HEFA RV UNIVERSITY OF ST. THOMAS
SERIES C++ 3.85 04/01/25 200,000
400,000 MINNESOTA STATE HFA SFHR SERIES G 3.45 01/01/17 400,000
300,000 MINNESOTA STATE GO 4.50 06/01/00 300,586
1,000,000 OLMSTED COUNTY MN HOUSING & REDEVELOPMENT
AUTHORITY RV COLL BY USG P/R 2/1/01 @ 100 7.00 02/01/13 1,022,253
100,000 ST. LOUIS PARK MN HOSPITAL RV METHODIST HOSPITAL
SERIES C AMBAC INSURED 7.25 07/01/18 102,775
1,765,000 ST. PAUL MN HOUSING & REDEVELOPMENT AUTHORITY
UTILITIES RV CREDIT LOCAL DE FRANCE LOC++ 3.85 12/01/12 1,765,000
18,145,531
------------
MISSOURI - 7.18%
100,000 CALLAWAY COUNTY MO IDA HEALTH SYSTEM RV BANK OF
AMERICA N.A. INSURED++ 4.05 04/01/15 100,000
100,000 KANSAS CITY MO IDA MFHR J.C. NICHOLS CO. PROJECT
GUARANTEED BY PRINCIPAL MUTUAL LIFE INSURANCE++ 4.20 05/01/15 100,000
500,000 KANSAS CITY MO IDA MFHR COACH HOUSE II PROJECT
GUARANTEED BY PRINCIPAL MUTUAL LIFE INSURANCE++ 4.20 12/01/15 500,000
5,100,000 MISSOURI HIGHER EDUCATION LOAN AUTHORITY STUDENT
LOAN RV SERIES A GUARANTEED BY STUDENT LOANS++ 3.95 12/01/05 5,100,000
5,000,000 MISSOURI HIGHER EDUCATION LOAN AUTHORITY STUDENT
LOAN RV SERIES A STATE STREET B&T CO. LOC++ 3.95 06/01/17 5,000,000
100,000 MISSOURI STATE DEVELOPMENT FINANCIAL BOARD
RECREATIONAL FACILITIES RV YMCA GREATER ST. LOUIS
PROJECT SERIES B BANK OF AMERICA N.A. INSURED++ 4.00 09/01/02 100,000
6,300,000 MISSOURI STATE DEVELOPMENT FINANCIAL BOARD LEASE
RV MISSOURI ASSOCIATION MUNICIPAL UTILITIES LEASE
PROJECT SPA -TRANSAMERICA LIFE INSURANCE++ 4.00 12/01/22 6,300,000
100,000 MISSOURI STATE HEALTH & EDUCATIONAL FACILITIES
AUTHORITY RV SERIES G 3.50 04/29/00 100,019
100,000 MISSOURI STATE HEALTH & EDUCATIONAL FACILITIES
AUTHORITY RV SERIES H 3.50 04/29/00 100,019
900,000 MISSOURI STATE HEALTH & EDUCATIONAL FACILITIES
AUTHORITY RV SERIES A 3.50 04/29/00 900,172
5,000,000 MISSOURI STATE HEALTH & EDUCATIONAL FACILITIES RV
ROCKHURST COLLEGE AIB GROUP LOC++ 3.75 11/01/25 5,000,000
23,300,210
------------
MONTANA - 0.13%
415,000 MONTANA STATE BOARD OF INVESTMENTS MUNICIPAL
FINANCE CONSTRUCTION INTERCAP PROGRAM RV++ 4.35 03/01/10 415,000
------------
</TABLE>
33
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
NEBRASKA - 0.03%
$ 100,000 NORFOLK NE IDR SUPERVALU INCORPORATED PROJECT
WACHOVIA BANK OF GEORGIA LOC++ 4.10% 11/01/14 $ 100,000
------------
NEVADA - 2.87%
4,300,000 ABN AMRO LEASETOPS 2000-1 LEASETOPS CERTIFICATES
ABN-AMRO BANK N.V. LOC++ 4.28 08/07/02 4,300,000
5,000,000 NEVADA STATE GO SERIES 36 D FGIC INSURED++ 4.00 11/01/25 5,000,000
9,300,000
------------
NEW HAMPSHIRE - 0.06%
200,000 NEW HAMPSHIRE HIGHER EDUCATION & HEALTH FACILITIES
AUTHORITY RV MUNICIPAL TRUST RECEIPTS
SERIES SG-19++ 3.99 06/01/23 200,000
------------
NEW MEXICO - 0.46%
95,000 ESPANOLA NM HEALTH CARE RV SERIES A LA SALLE
NATIONAL BANK LOC++ 4.10 11/15/10 95,000
1,300,000 NEW MEXICO STATE TRAN SERIES A 4.00 06/30/00 1,302,328
100,000 SILVER CITY NM GO SERIES A LA SALLE NATIONAL BANK
LOC++ 4.10 11/15/10 100,000
1,497,328
------------
NEW YORK - 1.26%
2,495,000 IBM TAX EXEMPT GRANTOR TRUST OTHER RV IBM PROJECT
SERIES 1999-C++ 4.11 03/14/06 2,495,000
800,000 LONG ISLAND POWER AUTHORITY NY ELECTRIC SYSTEM RV
FRN PA 586++ 4.06 12/01/29 800,000
285,000 NEW YORK STATE MEDICAL CARE FACILITIES FINANCE
AGENCY HEALTH CARE RV CREDIT SUISSE LOC++ 3.75 02/15/13 285,000
500,000 NEW YORK NY FRN SERIES PT 1038 MBIA INSURED++ 3.96 08/01/16 500,000
4,080,000
------------
NORTH CAROLINA - 0.03%
100,000 NORTH CAROLINA MEDICAL CARE COMMUNITY HOSPITAL
REVENUE VAR-MOSES H. CONE MEMORIAL HOSPITAL
PROJECT++ 3.95 09/01/02 100,000
------------
OHIO - 0.09%
200,000 HAMILTON COUNTY OH IDR COMMUNITY URBAN
REDEVELOPMENT PROJECT NATIONAL WESTMINSTER LOC++ 4.15 10/15/12 200,000
100,000 WOOSTER OH IDR ALLEN GROUP INCORPORATED NATIONAL
BANK OF DETROIT LOC++ 4.10 12/01/10 100,000
300,000
------------
OKLAHOMA - 0.50%
100,000 OKLAHOMA COUNTY OK FINANCE AUTHORITY IDR PERRINE
OFFICE PROJECT FGIC INSURED++ 4.25 12/01/14 100,000
1,220,000 OKLAHOMA STATE WATER RESERVE BOARD STATE LOAN
PROGRAM RV UNION BANK OF SWITZERLAND LOC MANDATORY
PUT 9/1/00 @ 100 4.05 09/01/26 1,220,000
300,000 TULSA OK TULSA IDA IDR YMCA OF GREATER TULSA
PROJECT BANK OF AMERICA N.A. LOC++ 4.00 05/01/19 300,000
1,620,000
------------
OREGON - 1.14%
700,000 OREGON STATE HOUSING & COMMUNITY SERVICES
DEPARTMENT SFHR SERIES D 3.20 04/13/00 700,000
3,000,000 TRI-COUNTY METROPOLITAN TRANSPORTATION DISTRICT RV
SERIES 142 MORGAN STANLEY DEAN WITTER LOC++ 3.98 08/01/19 3,000,000
3,700,000
------------
OTHER - 0.80%
1,100,000 KOCH++ 4.12 10/06/03 1,100,000
</TABLE>
34
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
OTHER (continued)
$ 1,500,000 PITNEY BOWES CREDIT CORPORATION LEASETOPS TRUST
SERIES 1999-2 AMBAC INSURED++ 4.33% 03/16/05 $ 1,500,000
2,600,000
------------
PENNSYLVANIA - 2.71%
5,000,000 ALLEGHENY COUNTY PA GO SERIES C-34 MBIA-IBC
INSURED 8.50 02/15/01 5,181,002
100,000 CHARTIERS VALLEY PA INDUSTRIAL & COMMERCIAL
DEVELOPMENT AUTHORITY IDR GUARANTEED BY ADP
INCORPORATED++ 4.30 11/15/17 100,000
100,000 PENNSYLVANIA INTERGOVERNMENTAL COOPERATIVE
AUTHORITY SPECIAL TAX RV MBIA INSURED++ 3.96 06/15/23 100,000
2,200,000 QUAKERTOWN PA GENERAL AUTHORITY RV POOLED
FINANCING PROGRAM SERIES A PNC BANK LOC++ 4.00 06/01/28 2,200,000
100,000 QUAKERTOWN PA HEALTH CARE RV HOSPITAL GROUP POOLED
FINANCING SERIES A PNC BANK LOC++ 4.00 07/01/26 100,000
1,100,000 QUAKERTOWN PA HEALTH CARE RV HOSPITAL GROUP POOLED
FINANCING PNC BANK LOC++ 4.00 07/01/05 1,100,000
8,781,002
------------
PUERTO RICO - 0.49%
1,600,000 PUERTO RICO COMMONWEALTH OTHER RV SERIES D BANK OF
NEW YORK LOC++ 3.85 07/30/00 1,600,000
------------
RHODE ISLAND - 0.77%
2,445,000 RHODE ISLAND MANDATORY PUT 5/15/00 @ 100 6.00 05/15/02 2,501,390
------------
SOUTH CAROLINA - 4.96%
800,000 PIEDMONT MUNICIPAL POWER AGENCY SC ELECTRIC RV
SERIES B MBIA INSURED++ 3.90 01/01/19 800,000
15,000,000 SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTHORITY
ECONOMIC DEVELOPMENT RV SERIES 338++ 4.06 12/01/00 15,000,000
300,000 SOUTH CAROLINA STATE PUBLIC SERVICE AUTHORITY RV
SERIES SG-2 MBIA INSURED++ 3.96 07/01/21 300,000
16,100,000
------------
SOUTH DAKOTA - 1.11%
3,600,000 WATERTOWN SD IDA RV SUPERVALU INCORPORATED PROJECT
WACHOVIA BANK & TRUST LOC++ 4.00 09/01/14 3,600,000
------------
TENNESSEE - 1.41%
2,467,500 METROPOLITAN GOVERNMENT NASHVILLE & DAVIDSON
COUNTY TN SERIES 251++ 4.11 05/15/18 2,467,500
100,000 METROPOLITAN GOVERNMENTS OF NASHVILLE & DAVIDSON
COUNTIES TN HEALTH & EDUCATION FACILITIES RV
ALIVE HOSPICE INC PROJECT++ 4.00 08/01/19 100,000
2,000,000 TENNESSEE HOUSING DEVELOPMENT AGENCY HOUSING RV
SERIES 281 MORGAN STANLEY DEAN WITTER LOC++ 4.21 01/01/19 2,000,000
4,567,500
------------
TEXAS - 12.27%
600,000 AUSTIN TX UTILITIES SYSTEM RV SERIES G AMBAC
INSURED++ 3.96 11/15/11 600,000
4,000,000 BEXAR COUNTY TX 3.95 05/03/00 4,000,000
200,000 BEXAR COUNTY TX HOUSING FINANCE CORPORATION MFHR
BONDS PARK HILL DEVELOPMENT PROJECT SERIES B
GUARANTEED BY NEW ENGLAND MUTUAL LIFE INSURANCE
CO.++ 3.90 06/01/05 200,000
2,500,000 BRAZOS TX HIGHER EDUCATION AUTHORITY INCORPORATED
EDUCATIONAL FACILITIES RV SERIES B STUDENT LOAN
MARKETING LOC++ 3.90 06/01/23 2,500,000
</TABLE>
35
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
TEXAS (continued)
$ 14,800,000 HARRIS COUNTY TX HEALTH FACILITIES DEVELOPMENT
CORPORATION HOSPITAL RV MEMORIAL HOSPITAL SYSTEM
PROJECT SERIES B MBIA INSURED 3.85% 06/01/24 $ 14,800,000
200,000 HARRIS COUNTY TX HOUSING FINANCE CORPORATION ARBOR
II LIMITED PROJECT 4.00 10/01/05 200,000
100,000 HOUSTON TX WATER & SEWER SYSTEMS RV MUNICIPAL
TRUST RECEIPTS SERIES SG 120 FGIC INSURED++ 3.96 12/01/23 100,000
2,000,000 LUBBOCK TX HEALTH FACILITIES DEVELOPMENT CORPORATE
RV ST. JOSEPH HEALTH SYSTEM++ 5.00 07/01/00 2,004,143
2,200,000 NORTH TEXAS HIGHER EDUCATION AUTHORITY
INCORPORATED STUDENT LOAN RV SERIES A AMBAC
INSURED++ 3.95 04/01/36 2,200,000
5,000,000 SOUTH TEXAS HIGHER EDUCATION AUTHORITY
INCORPORATED EDUCATIONAL FACILITIES RV SERIES Z
MBIA INSURED++ 3.90 12/01/03 5,000,000
100,000 TEXAS STATE DEPARTMENT OF HOUSING AND COMMUNITY
AFFAIRS SFHR SERIES PT 136 MBIA INSURED++ 3.99 03/01/17 100,000
3,000,000 TEXAS STATE DEPARTMENT OF HOUSING AND COMMUNITY
AFFAIRS MFHR SERIES 1215++ 4.14 12/01/39 3,000,000
300,000 TEXAS STATE FRN PA 560++ 3.96 08/01/24 300,000
1,795,000 TEXAS STATE GO PUBLIC FINANCE AUTHORITY SERIES B 5.25 10/01/00 1,806,631
3,000,000 TEXAS STATE TRAN SERIES A 4.50 08/31/00 3,009,364
39,820,138
------------
UTAH - 1.54%
5,000,000 INTERMOUNTAIN POWER AGENCY POWER SUPPLY RV
SERIES E AMBAC INSURED OPTIONAL PUT 9/15/00 @ 100 3.63 07/01/14 5,000,000
------------
VERMONT - 0.68%
2,200,000 VERMONT HFA SFHR SERIES 11B 3.70 09/07/00 2,200,000
------------
VIRGINIA - 0.92%
2,995,000 VIRGINIA STATE PUBLIC SCHOOL AUTHORITY PUTTERS
SERIES 109++ 3.98 08/01/17 2,995,000
------------
WASHINGTON - 5.58%
1,000,000 LAKE TAPPS PARKWAY WA++ 4.00 12/01/19 1,000,000
4,000,000 PORT ANACORTES WA IDA 3.90 07/11/00 4,000,000
3,000,000 PORT LONGVIEW WA INDUSTRIAL DEVELOPMENT++ 3.90 12/01/14 3,000,000
2,500,000 SEATTLE WA IDR LONGVIEW FIBRE CO.++ 4.10 01/01/03 2,500,000
3,000,000 SEATTLE WA MUNICIPAL LIGHT & POWER 3.95 05/04/00 3,000,000
300,000 WASHINGTON PUBLIC POWER SUPPLY SYSTEM POWER RV
NUCLEAR PROJECT #1 MUNICIPAL SECURITIES TRUST
RECEIPTS SERIES CMC2++ 3.95 07/01/07 300,000
700,000 WASHINGTON STATE EDA RV PACIFIC COAST SCHREDDING
SERIES D++ 4.15 08/01/14 700,000
3,315,000 WASHINGTON STATE HOUSING FINANCE COMMISSION
NONPROFIT HOUSING RV U.S. BANK N.A. LOC++ 3.90 07/01/11 3,315,000
300,000 WASHINGTON STATE PUBLIC POWER SUPPLY SYSTEM
NUCLEAR PROJECT #2 POWER RV AMBAC INSURED++ 3.95 07/01/07 300,000
18,115,000
------------
WASHINGTON D.C. - 0.39%
1,265,000 DISTRICT OF COLUMBIA++ 3.96 06/01/10 1,265,000
------------
WISCONSIN - 0.09%
100,000 PORTAGE COUNTY WI BOND ANTICIPATION NOTES 4.50 06/01/00 100,000
100,000 WISCONSIN STATE HEHFA RV SERIES PA 183 MBIA
INSURED++ 3.96 08/15/17 100,000
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
WISCONSIN (continued)
$ 100,000 WISCONSIN STATE SCHOOL DISTRICTS CASH FLOW
MANAGEMENT PROGRAM COP RV SERIES A-2 3.80% 09/28/00 $ 100,000
300,000
------------
WYOMING - 0.06%
200,000 UNITA COUNTY WY PCR CHEVRON U.S.A. INCORPORATED
PROJECT 3.85 08/15/20 200,000
------------
TOTAL MUNICIPAL SECURITIES (COST $321,886,442) 321,886,442
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $321,886,442)* 99.21% $321,886,442
OTHER ASSETS AND LIABILITIES NET 0.79 2,565,508
------- ------------
TOTAL NET ASSETS 100.00% $324,451,950
------- ------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING 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.
37
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 77.78%
U. S. TREASURY BILLS - 48.45%
$ 50,000,000 U.S. TREASURY BILLS 5.79{::}% 06/29/00 $ 49,330,584
34,500,000 U.S. TREASURY BILLS 6.11{::} 04/18/00 34,413,659
75,000,000 U.S. TREASURY BILLS 5.50{::} 04/20/00 74,810,875
100,000,000 U.S. TREASURY BILLS 6.09{::} 04/20/00 99,717,476
120,000,000 U.S. TREASURY BILLS 5.71{::} 04/27/00 119,557,000
1,265,000 U.S. TREASURY BILLS 5.73{::} 04/27/00 1,260,210
75,000,000 U.S. TREASURY BILLS 5.84{::} 04/27/00 74,714,750
125,000,000 U.S. TREASURY BILLS 5.73{::} 05/04/00 124,396,952
75,000,000 U.S. TREASURY BILLS 6.06{::} 04/18/00 74,813,750
50,000,000 U.S. TREASURY BILLS 5.70{::} 05/25/00 49,601,334
50,000,000 U.S. TREASURY BILLS 6.01{::} 08/31/00 48,800,000
75,000,000 U.S. TREASURY BILLS 5.58{::} 05/25/00 74,420,959
825,837,549
--------------
TREASURY NOTES - 29.33%
50,000,000 U.S. TREASURY NOTES 5.50 04/15/00 49,992,937
50,000,000 U.S. TREASURY NOTES 5.63 04/30/00 49,997,856
150,000,000 U.S. TREASURY NOTES 6.75 04/30/00 150,095,167
100,000,000 U.S. TREASURY NOTES 6.38 05/15/00 100,068,510
75,000,000 U.S. TREASURY NOTES 6.00 08/15/00 74,951,601
35,000,000 U.S. TREASURY NOTES 4.50 09/30/00 34,692,717
40,000,000 U.S. TREASURY NOTES 6.25 08/31/00 39,995,464
499,794,252
--------------
TOTAL U.S. TREASURY SECURITIES (COST
$1,325,631,801) 1,325,631,801
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,325,631,801)* 77.78% $1,325,631,801
OTHER ASSETS AND LIABILITIES, NET 22.22 378,664,845
------- --------------
TOTAL NET ASSETS 100.00% $1,704,296,646
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $1,325,646,092.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 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- 61.76%
U. S. TREASURY BILLS - 24.18%
$ 30,000,000 U.S. TREASURY BILLS 5.94{::}% 08/31/00 $ 29,279,376
50,000,000 U.S. TREASURY BILLS 6.00{::} 04/20/00 49,858,738
25,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 24,905,167
50,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 49,810,334
50,000,000 U.S. TREASURY BILLS 5.60{::} 06/08/00 49,498,583
75,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 74,715,250
278,067,448
--------------
U.S. TREASURY NOTES - 37.58%
95,730,000 U.S. TREASURY NOTES 5.38 07/31/00 95,588,495
50,000,000 U.S. TREASURY NOTES 5.50 05/31/00 49,984,482
36,690,000 U.S. TREASURY NOTES 5.75 10/31/00 36,708,079
50,000,000 U.S. TREASURY NOTES 5.63 04/30/00 50,005,584
55,000,000 U.S. TREASURY NOTES 6.75 04/30/00 55,043,475
25,000,000 U.S. TREASURY NOTES 6.25 05/31/00 25,022,958
40,000,000 U.S. TREASURY NOTES 5.38 06/30/00 39,953,250
50,000,000 U.S. TREASURY NOTES 6.00 08/15/00 49,976,053
30,000,000 U.S. TREASURY NOTES 5.13 08/31/00 29,945,181
432,227,557
--------------
TOTAL U. S. TREASURY SECURITIES (COST
$710,295,005) 710,295,005
--------------
REPURCHASE AGREEMENTS - 38.08%
230,000,000 BEAR STEARNS REPURCHASE
AGREEMENT 6.10 04/03/00 230,000,000
115,000,000 DEUTSCHE BANK REPURCHASE
AGREEMENT 6.10 04/03/00 115,000,000
35,587,805 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 35,587,805
30,000,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.10 04/03/00 30,000,000
2,450,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.15 04/03/00 2,450,000
25,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.20 04/03/00 25,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$438,037,805) 438,037,805
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,148,332,810)* 99.84% $1,148,332,810
OTHER ASSETS AND LIABILITIES, NET 0.16 1,848,629
------- --------------
TOTAL NET ASSETS 100.00% $1,150,181,439
------- --------------
</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 -- MARCH 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE
MONEY MARKET FUND
<S> <C>
-----------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED
COST........................ $2,524,934,435
CASH.......................... 1,522,306
RECEIVABLE FOR INTEREST AND
OTHER RECEIVABLES........... 22,448,772
RECEIVABLE FOR INVESTMENTS
SOLD........................ 0
RECEIVABLE FOR FUND SHARES
ISSUED...................... 0
PREPAID EXPENSES AND OTHER
ASSETS...................... 0
--------------
TOTAL ASSETS.................. 2,548,905,513
--------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 1,305,465
PAYABLE TO OTHER RELATED
PARTIES................... 921,117
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 286,080
DIVIDENDS PAYABLE........... 5,805,443
--------------
TOTAL LIABILITIES............. 8,318,105
--------------
TOTAL NET ASSETS.............. $2,540,587,408
--------------
NET ASSETS CONSIST OF:
-----------------------------------------------------
PAID-IN CAPITAL............. $2,541,251,553
UNDISTRIBUTED NET INVESTMENT
INCOME.................... 0
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON
INVESTMENTS............... (664,145)
--------------
TOTAL NET ASSETS.............. $2,540,587,408
--------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER
SHARE
-----------------------------------------------------
NET ASSETS - CLASS A.......... $2,464,890,444
SHARES OUTSTANDING -
CLASS A..................... 2,465,559,308
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS A..................... $ 1.00
NET ASSETS - CLASS B.......... N/A
SHARES OUTSTANDING -
CLASS B..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A
NET ASSETS - SERVICE CLASS.... $ 75,696,964(1)
SHARES OUTSTANDING - SERVICE
CLASS....................... 75,697,214(1)
NET ASSET VALUE AND OFFERING
PRICE PER SHARE - SERVICE
CLASS....................... $ 1.00(1)
--------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT NATIONAL TAX-FREE 100% TREASURY TREASURY PLUS
MONEY MARKET FUND 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........................ $ 3,527,583,897 $15,106,775,258 $321,886,442 $1,325,631,801 $1,148,332,810
CASH.......................... 0 0 143,358 1,133 1,994
RECEIVABLE FOR INTEREST AND
OTHER RECEIVABLES........... 12,056,298 92,698,379 2,023,332 10,083,156 7,368,769
RECEIVABLE FOR INVESTMENTS
SOLD........................ 0 0 800,021 0 0
RECEIVABLE FOR FUND SHARES
ISSUED...................... 0 0 0 376,046,414 0
PREPAID EXPENSES AND OTHER
ASSETS...................... 206,396 0 0 20 0
--------------- --------------- ------------ -------------- --------------
TOTAL ASSETS.................. 3,539,846,591 15,199,473,637 324,853,153 1,711,762,524 1,155,703,573
--------------- --------------- ------------ -------------- --------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 29,999,700 0 0 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 1,428,706 8,216,348 132,777 667,658 595,506
PAYABLE TO OTHER RELATED
PARTIES................... 310,943 3,754,685 42,654 23,665 15,748
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 346,987 1,390,348 155,035 185,221 141,973
DIVIDENDS PAYABLE........... 14,844,550 7,514,970 70,737 6,589,334 4,768,907
--------------- --------------- ------------ -------------- --------------
TOTAL LIABILITIES............. 46,930,886 20,876,351 401,203 7,465,878 5,522,134
--------------- --------------- ------------ -------------- --------------
TOTAL NET ASSETS.............. $ 3,492,915,705 $15,178,597,286 $324,451,950 $1,704,296,646 $1,150,181,439
--------------- --------------- ------------ -------------- --------------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $ 3,493,101,342 $15,178,588,476 $324,451,954 $1,705,308,048 $1,150,226,123
UNDISTRIBUTED NET INVESTMENT
INCOME.................... 0 0 0 168,885 0
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON
INVESTMENTS............... (185,637) 8,810 (4) (1,180,287) (44,684)
--------------- --------------- ------------ -------------- --------------
TOTAL NET ASSETS.............. $ 3,492,915,705 $15,178,597,286 $324,451,950 $1,704,296,646 $1,150,181,439
--------------- --------------- ------------ -------------- --------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
--------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $ 58,960,115(1) $13,441,754,489 $324,451,950 $ 2,046,604(1) $1,150,181,439
SHARES OUTSTANDING -
CLASS A..................... 58,964,516(1) 13,441,511,986 324,459,086 2,046,604(1) 1,150,263,397
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS A..................... $ 1.00(1) $ 1.00 $ 1.00 $ 1.00(1) $ 1.00
NET ASSETS - CLASS B.......... N/A $ 1,736,842,797 N/A N/A N/A
SHARES OUTSTANDING -
CLASS B..................... N/A 1,736,794,497 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.... $ 3,433,955,590 N/A N/A $1,702,250,042 N/A
SHARES OUTSTANDING - SERVICE
CLASS....................... 3,434,315,433 N/A N/A 1,703,260,160 N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE - SERVICE
CLASS....................... $ 1.00 N/A N/A $ 1.00 N/A
--------------- --------------- ------------ -------------- --------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
41
<PAGE>
MONEY MARKET FUNDS STATEMENT OF OPERATIONS -- MARCH 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
------------------- ------------------------------
FOR THE FOR THE TEN FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 2000 MAY 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 75,215,719 $ 155,646,185 $148,270,463
----------------- -------------- ------------
TOTAL INVESTMENT
INCOME................. 75,215,719 155,646,185 148,270,463
----------------- -------------- ------------
EXPENSES
ADVISORY FEES........ 10,018,980 6,926,086 3,827,097
ADMINISTRATION
FEES............... 3,611,053 3,580,993 2,855,914
CUSTODY.............. 446,613 436,835 300,591
SHAREHOLDER SERVICING
FEES............... 6,663,703 59,314 0
PORTFOLIO ACCOUNTING
FEES............... 384,177 112,780 64,750
TRANSFER AGENT
A SHARES........... 1,238,432 2,373(1) N/A
B SHARES/E
SHARES........... N/A N/A N/A
I SHARES/
ADMINISTRATIVE
SHARES........... N/A N/A N/A
S SHARES/SERVICE
CLASS............ 1,878(1) 3,823,142 7,139,786
DISTRIBUTION FEES
B SHARES/E
SHARES........... N/A N/A N/A
S SHARES/SERVICE
CLASS............ N/A N/A N/A
LEGAL AND AUDIT
FEES............... 177,819 56,005 56,163
REGISTRATION FEES.... 99,277 165,842 301,672
DIRECTORS' FEES...... 2,731 18,396 32,082
SHAREHOLDER
REPORTS............ 147,397 149,407 164,904
OTHER................ 89,481 59,288 69,402
----------------- -------------- ------------
TOTAL EXPENSES........... 22,881,541 15,390,461 14,812,361
----------------- -------------- ------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES........... (7,309,075) (1,030,495) (532,406)
NET EXPENSES......... 15,572,466 14,359,966 14,279,955
----------------- -------------- ------------
NET INVESTMENT INCOME.... 59,643,253 141,286,219 133,990,508
----------------- -------------- ------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS........ (372,792) (184,488) 204,634
----------------- -------------- ------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 59,270,461 $ 141,101,731 $134,195,142
----------------- -------------- ------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
<PAGE>
STATEMENT OF OPERATIONS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET 100% TREASURY MONEY MARKET TREASURY PLUS
MONEY MARKET FUND FUND FUND MONEY MARKET FUND
----------------- ------------------------------ ------------------------------ -----------------
FOR THE FOR THE TEN FOR THE FOR THE TEN FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 2000 MAY 31, 1999 MARCH 31, 2000 MAY 31, 1999 MARCH 31, 2000
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 692,439,976 $ 18,715,551 $ 39,625,210 $ 73,431,480 $ 77,059,458 $ 93,323,239
----------------- -------------- ------------ -------------- ------------ -----------------
TOTAL INVESTMENT
INCOME................. 692,439,976 18,715,551 39,625,210 73,431,480 77,059,458 93,323,239
----------------- -------------- ------------ -------------- ------------ -----------------
EXPENSES
ADVISORY FEES........ 50,035,349 1,792,697 3,911,866 3,550,434 2,328,016 5,088,643
ADMINISTRATION
FEES............... 18,763,256 613,117 1,221,486 1,791,913 1,606,680 2,782,739
CUSTODY.............. 2,282,590 69,939 132,896 221,786 175,668 325,018
SHAREHOLDER SERVICING
FEES............... 34,245,518 194,779 0 951 0 3,776,994
PORTFOLIO ACCOUNTING
FEES............... 1,616,411 83,939 97,750 82,385 61,750 356,566
TRANSFER AGENT
A SHARES........... 13,016,151 87,711 106,325 114(1) N/A 195,815
B SHARES/E
SHARES........... 125,552 N/A N/A N/A N/A 177,972
I SHARES/
ADMINISTRATIVE
SHARES........... N/A N/A N/A N/A N/A 49,052
S SHARES/SERVICE
CLASS............ 434,288 459,739 1,136,425 1,812,990 4,016,700 162,627
DISTRIBUTION FEES
B SHARES/E
SHARES........... 4,708,200 N/A N/A N/A N/A N/A
S SHARES/SERVICE
CLASS............ 5,968,383 N/A N/A N/A N/A N/A
LEGAL AND AUDIT
FEES............... 775,776 22,937 32,150 19,730 36,345 150,577
REGISTRATION FEES.... 1,384,579 75,226 64,062 28,663 61,086 169,234
DIRECTORS' FEES...... 3,790 7,487 13,813 8,002 19,040 4,082
SHAREHOLDER
REPORTS............ 990,017 16,591 67,636 32,077 90,650 148,484
OTHER................ 405,497 31,968 75,772 154,276 45,529 101,405
----------------- -------------- ------------ -------------- ------------ -----------------
TOTAL EXPENSES........... 134,755,357 3,456,130 6,860,181 7,703,321 8,441,464 13,489,208
----------------- -------------- ------------ -------------- ------------ -----------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES........... (30,308,728) (760,591) (1,469,730) (1,115,606) (1,050,582) (3,697,134)
NET EXPENSES......... 104,446,629 2,695,539 5,390,451 6,587,715 7,390,882 9,792,074
----------------- -------------- ------------ -------------- ------------ -----------------
NET INVESTMENT INCOME.... 587,993,347 16,020,012 34,234,759 66,843,765 69,668,576 83,531,165
----------------- -------------- ------------ -------------- ------------ -----------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS........ (9,727) 116,407 6,112 (856,341) 101,345 (61,221)
----------------- -------------- ------------ -------------- ------------ -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 587,983,620 $ 16,136,419 $ 34,240,871 $ 65,987,424 $ 69,769,921 $ 83,469,944
----------------- -------------- ------------ -------------- ------------ -----------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
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
------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
---------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 2,246,122,877 $ 2,118,881,359
OPERATIONS:
NET INVESTMENT INCOME.... 59,643,253 52,641,127
NET REALIZED GAIN (LOSS)
ON SALE OF
INVESTMENTS............ (372,792) (121,194)
---------------- ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 59,270,461 52,519,933
---------------- ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............. (59,135,379) (52,641,127)
ADMINISTRATIVE
SHARES.............. N/A N/A
B SHARES/E SHARES.... N/A N/A
I SHARES............. N/A N/A
S SHARES/SERVICE
CLASS............... (507,874)(1) N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 3,663,360,428 3,191,791,394
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 50,547,941 45,918,774
COST OF SHARES REDEEMED
- CLASS A............ (3,494,768,260) (3,110,347,456)
---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 219,140,109 127,362,712
---------------- ----------------
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
- CLASS S/SERVICE
CLASS.................. 102,151,332(1) N/A
REINVESTMENT OF DIVIDENDS
- CLASS S/SERVICE
CLASS.................. 310,610(1) N/A
COST OF SHARES REDEEMED -
CLASS S/SERVICE
CLASS.................. (26,764,728)(1) N/A
---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS S/SERVICE
CLASS.................. 75,697,214(1) N/A
---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 294,464,531 127,241,518
---------------- ----------------
NET ASSETS:
---------------------------------------------------------------
ENDING NET ASSETS...... $ 2,540,587,408 $ 2,246,122,877
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 3,663,360,394 3,191,791,394
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 50,547,946 45,918,774
SHARES REDEEMED -
CLASS A.............. (3,494,768,069) (3,110,347,456)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 219,140,271 127,362,712
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 -
CLASS S/SERVICE
CLASS................ 102,151,332(1) N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS................ 310,610(1) N/A
SHARES REDEEMED -
CLASS S/SERVICE
CLASS................ (26,764,728)(1) N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS.................. 75,697,214(1) N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0
---------------- ----------------
</TABLE>
44
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND MONEY MARKET FUND
---------------------------------------------------------- --------------------------------------
FOR THE TEN FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 (2) MAY 31, 1999 MAY 31, 1998 MARCH 31, 2000 (3) MARCH 31, 1999
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 3,368,533,822 $ 2,260,207,846 $ 1,912,574,006 $ 10,296,401,223 $ 7,662,756,836
OPERATIONS:
NET INVESTMENT INCOME.... 141,286,219 133,990,508 114,966,133 587,993,347 403,472,313
NET REALIZED GAIN (LOSS)
ON SALE OF
INVESTMENTS............ (184,488) 204,634 (48,377) (9,727) 166,441
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 141,101,731 134,195,142 114,917,756 587,983,620 403,638,754
---------------- ---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............. (1,181,705)(1) N/A N/A (530,116,391) (359,769,107)
ADMINISTRATIVE
SHARES.............. N/A N/A N/A N/A N/A
B SHARES/E SHARES.... N/A N/A N/A (27,568,972) N/A
I SHARES............. N/A N/A N/A N/A N/A
S SHARES/SERVICE
CLASS............... (140,104,514) (133,990,508) (114,966,133) (30,307,984)(4) (43,703,206)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 139,610,265(1) N/A N/A 9,011,593,439 5,518,795,093
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 494,841(1) N/A N/A 545,615,046 351,157,967
COST OF SHARES REDEEMED
- CLASS A............ (81,141,804)(1) N/A N/A (5,253,257,204) (3,443,871,290)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 58,963,302(1) N/A N/A 4,303,951,281 2,426,081,770
---------------- ---------------- ---------------- ---------------- ----------------
PROCEEDS FROM SHARES SOLD
- CLASS B/CLASS E...... N/A N/A N/A 2,897,154,498 N/A
REINVESTMENT OF DIVIDENDS
- CLASS B/CLASS E...... N/A N/A N/A 28,165,021 N/A
COST OF SHARES REDEEMED -
CLASS B/CLASS E........ N/A N/A N/A (1,188,609,048) N/A
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ N/A N/A N/A 1,736,710,471 N/A
---------------- ---------------- ---------------- ---------------- ----------------
PROCEEDS FROM SHARES SOLD
- CLASS S/SERVICE
CLASS.................. 31,097,729,447 26,091,666,224 8,855,872,101 1,737,202,703(4) 2,191,020,851
REINVESTMENT OF DIVIDENDS
- CLASS S/SERVICE
CLASS.................. 5,327,578 29,201,156 18,495,730 32,669,252(4) 43,441,848
COST OF SHARES REDEEMED -
CLASS S/SERVICE
CLASS.................. (31,037,453,956) (25,012,746,038) (8,526,685,614) (2,928,327,917)(4) (2,027,066,523)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS S/SERVICE
CLASS.................. 65,603,069 1,108,121,342 347,682,217 (1,158,455,962)(4) 207,396,176
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... $ 124,381,883 $ 1,108,325,976 $ 347,633,840 4,882,196,063 2,633,644,387
---------------- ---------------- ---------------- ---------------- ----------------
NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 3,492,915,705 $ 3,368,533,822 $ 2,260,207,846 $ 15,178,597,286 $ 10,296,401,223
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 139,611,479(1) N/A N/A 9,011,738,160 5,518,795,093
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 494,841(1) N/A N/A 545,615,046 351,157,967
SHARES REDEEMED -
CLASS A.............. (81,141,804)(1) N/A N/A (5,253,257,204) (3,443,871,290)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 58,964,516(1) N/A N/A 4,304,096,002 2,426,081,770
SHARES SOLD -
CLASS B/CLASS E...... N/A N/A N/A 2,897,238,524 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A 28,165,021 N/A
SHARES REDEEMED -
CLASS B/CLASS E...... N/A N/A N/A (1,188,609,048) N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B/CLASS E........ N/A N/A N/A 1,736,794,497 N/A
SHARES SOLD -
CLASS S/SERVICE
CLASS................ 31,097,729,447 26,091,666,224 8,855,872,101 1,737,202,703(4) 2,191,020,851
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS................ 5,327,578 29,201,156 18,495,730 32,669,252(4) 43,441,848
SHARES REDEEMED -
CLASS S/SERVICE
CLASS................ (31,037,453,956) (25,012,746,038) (8,526,685,614) (2,928,411,900)(4) (2,027,066,523)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS.................. 65,603,069 1,108,121,342 347,682,217 (1,158,539,945)(4) 207,396,176
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ (56,270) $ (56,270) $ 0 $ 0
---------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
45
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
-------------------------------------------------------
FOR THE TEN FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 (5) MAY 31, 1999 MAY 31, 1998
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $1,060,762,128 $ 1,021,763,286 $ 690,270,611
OPERATIONS:
NET INVESTMENT INCOME.... 16,020,012 34,234,759 28,902,887
NET REALIZED GAIN (LOSS)
ON SALE OF
INVESTMENTS............ 116,407 6,112 172,328
-------------- ---------------- -----------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 16,136,419 34,240,871 29,075,215
-------------- ---------------- -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............. (2,853,582) (1,157,118) (1,571,100)
ADMINISTRATIVE
SHARES............. N/A N/A N/A
B SHARES/E SHARES.... N/A N/A N/A
I SHARES............. (13,166,430)(8) (33,067,705) (27,331,787)
S SHARES/SERVICE
CLASS.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
A SHARES............. 0 (628) (3,249)
ADMINISTRATIVE
SHARES............. N/A N/A N/A
B SHARES/E SHARES.... N/A N/A N/A
I SHARES............. 0(8) (16,474) (58,183)
S SHARES/SERVICE
CLASS.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A..... 399,047,425 51,468,576 81,294,057
REINVESTMENT OF
DIVIDENDS -
CLASS A............ 2,808,698 1,155,538 1,574,299
COST OF SHARES
REDEEMED -
CLASS A............ (118,582,175) (55,521,236) (93,421,410)
-------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 283,273,948 (2,897,122) (10,553,054)
-------------- ---------------- -----------------
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 - CLASS I....... 1,122,030,145(8) 4,895,924,473 2,529,846,649
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 1,817,382(8) 8,171,310 4,917,786
COST OF SHARES REDEEMED
- CLASS I............ (2,143,548,060)(8) (4,862,198,765) (2,192,829,602)
-------------- ---------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ (1,019,700,533)(8) 41,897,018 341,934,833
-------------- ---------------- -----------------
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.......... (736,310,178) 38,998,842 331,492,675
-------------- ---------------- -----------------
NET ASSETS:
----------------------------------------------------------------------------------
ENDING NET ASSETS.... $ 324,451,950 $ 1,060,762,128 $ 1,021,763,286
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A............ 397,894,582 51,468,576 81,294,057
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A............ 2,808,698 1,155,538 1,574,299
SHARES REDEEMED -
CLASS A............ (117,425,136) (55,521,236) (93,421,410)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- CLASS A............ 283,278,144 (2,897,122) (10,553,054)
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 -
CLASS I............ 1,123,182,803(8) 4,895,924,473 2,529,846,649
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I............ 1,817,382(8) 8,171,310 4,917,786
SHARES REDEEMED -
CLASS I.............. (2,144,579,032)(8) (4,862,198,765) (2,192,829,602)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- CLASS I............ (1,019,578,847)(8) 41,897,018 341,934,833
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 NET
INVESTMENT INCOME...... $ 0 $ (126,904) $ (198,272)
-------------- ---------------- -----------------
</TABLE>
46
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
100% TREASURY MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
---------------------------------------------------- ------------------------------------
FOR THE TEN FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 MAY 31, 1999 MAY 31, 1998 MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $1,548,548,589 $ 1,440,515,062 $ 1,003,696,510 $ 2,170,334,965 $2,142,695,178
OPERATIONS:
NET INVESTMENT INCOME.... 66,843,765 69,668,576 58,492,565 83,531,165 102,461,486
NET REALIZED GAIN (LOSS)
ON SALE OF
INVESTMENTS............ (856,341) 101,345 358,352 (61,221) 94,206
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 65,987,424 69,769,921 58,850,917 83,469,944 102,555,692
-------------- ----------------- ----------------- ----------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............. (18,741)(1) N/A N/A (36,085,306) (21,822,781)
ADMINISTRATIVE
SHARES............. N/A N/A N/A (2,208,198)(7) (6,110,905)
B SHARES/E SHARES.... N/A N/A N/A (13,974,099)(6) (28,595,708)
I SHARES............. N/A N/A N/A (18,902,234)(7) (24,663,853)
S SHARES/SERVICE
CLASS.............. (66,825,024) (69,668,576) (58,492,565) (12,361,328)(7) (21,268,239)
NET REALIZED GAIN ON
SALE OF INVESTMENTS
A SHARES............. 0(1) N/A N/A 0 (28,818)
ADMINISTRATIVE
SHARES............. N/A N/A N/A N/A(7) (6,270)
B SHARES/E SHARES.... N/A N/A N/A N/A (34,041)
I SHARES............. N/A N/A N/A N/A(7) (29,922)
S SHARES/SERVICE
CLASS.............. 0 (536,906) 0 N/A(7) (27,945)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A..... 2,321,689(1) N/A N/A 3,231,239,832 1,880,148,228
REINVESTMENT OF
DIVIDENDS -
CLASS A............ 18,157(1) N/A N/A 5,214,454 4,574,374
COST OF SHARES
REDEEMED -
CLASS A............ (293,242)(1) N/A N/A (2,630,129,980) (1,722,403,471)
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 2,046,604(1) N/A N/A 606,324,306 162,319,131
-------------- ----------------- ----------------- ----------------- --------------
PROCEEDS FROM SHARES
SOLD - ADMINISTRATIVE
CLASS................ N/A N/A N/A 85,867,402(7) 211,237,826
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS................ N/A N/A N/A 2,358,799(7) 6,183,801
COST OF SHARES REDEEMED
- ADMINISTRATIVE
CLASS................ N/A N/A N/A (188,319,974)(7) (294,254,788)
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
ADMINISTRATIVE CLASS... N/A N/A N/A (100,093,773)(7) (76,833,161)
-------------- ----------------- ----------------- ----------------- --------------
PROCEEDS FROM SHARES
SOLD -
CLASS B/CLASS E...... N/A N/A N/A 841,125,549(6) 1,690,444,889
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E...... N/A N/A N/A 0(6) 0
COST OF SHARES REDEEMED
- CLASS B/
CLASS E.............. N/A N/A N/A (1,425,568,024)(6) (1,821,543,593)
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B/CLASS E........ N/A N/A N/A (584,442,475)(6) (131,098,704)
-------------- ----------------- ----------------- ----------------- --------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... N/A N/A N/A 30,435,823,746(7) 5,020,036,817
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. N/A N/A N/A 8,073,323(7) 5,523,692
COST OF SHARES REDEEMED
- CLASS I............ N/A N/A N/A (30,937,890,268)(7) (5,033,058,755)
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ N/A N/A N/A (493,993,199)(7) (7,498,246)
-------------- ----------------- ----------------- ----------------- --------------
PROCEEDS FROM SHARES
SOLD -
CLASS S/SERVICE
CLASS................ 18,415,108,001 19,545,459,290 4,446,530,993 1,962,443,790(7) 3,847,684,188
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS................ 9,266,578 20,981,138 18,522,775 4,541,738(7) 5,368,260
COST OF SHARES REDEEMED
- CLASS S/SERVICE
CLASS................ (18,269,816,785) (19,457,971,340) (4,028,593,568) (2,414,872,692)(7) (3,772,268,891)
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS S/SERVICE
CLASS.................. 154,557,794 108,469,088 436,460,200 (447,887,164)(7) 80,783,557
-------------- ----------------- ----------------- ----------------- --------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 155,748,057 108,033,527 436,818,552 (1,020,153,526) 27,639,787
-------------- ----------------- ----------------- ----------------- --------------
NET ASSETS:
---------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS.... $1,704,296,646 $ 1,548,548,589 $ 1,440,515,062 $ 1,150,181,439 $2,170,334,965
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A............ 2,321,689(1) N/A N/A 3,231,234,356 1,880,148,228
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A............ 18,157(1) N/A N/A 5,214,454 4,574,374
SHARES REDEEMED -
CLASS A............ (293,242)(1) N/A N/A (2,630,130,030) (1,722,403,471)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- CLASS A............ 2,046,604(1) N/A N/A 606,318,780 162,319,131
SHARES SOLD -
ADMINISTRATIVE
CLASS.............. N/A N/A N/A 85,867,402(7) 211,237,826
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
ADMINISTRATIVE
CLASS.............. N/A N/A N/A 2,358,799(7) 6,183,801
SHARES REDEEMED -
ADMINISTRATIVE
CLASS.............. N/A N/A N/A (188,320,696)(7) (294,254,788)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- ADMINISTRATIVE
CLASS................ N/A N/A N/A (100,094,495)(7) (76,833,161)
SHARES SOLD -
CLASS B/CLASS E..... N/A N/A N/A 841,125,549(6) 1,732,685,998
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E..... N/A N/A N/A 0(6) 0
SHARES REDEEMED -
CLASS B/CLASS E..... N/A N/A N/A (1,425,570,489)(6) (1,837,799,382)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- CLASS B/
CLASS E.............. N/A N/A N/A (584,444,940)(6) (105,113,384)
SHARES SOLD -
CLASS I............ N/A N/A N/A 30,435,823,746(7) 1,810,109,209
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I............ N/A N/A N/A 8,073,323(7) 3,525,822
SHARES REDEEMED -
CLASS I.............. N/A N/A N/A (30,938,020,810)(7) (1,761,788,362)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING
- CLASS I............ N/A N/A N/A (494,123,741)(7) 51,846,669
SHARES SOLD -
CLASS S/SERVICE
CLASS................ 18,415,108,001 19,545,459,290 4,446,530,993 1,962,443,790(7) 2,944,938,308
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S/SERVICE
CLASS................ 9,266,578 20,981,138 18,522,775 4,541,738(7) 1,738,759
SHARES REDEEMED -
CLASS S/SERVICE
CLASS................ (18,269,816,785) (19,457,971,340) (4,028,593,568) (2,414,888,553)(7) (3,062,972,733)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S/SERVICE
CLASS.................. 154,557,794 108,469,088 436,460,200 (447,903,025)(7) (116,295,666)
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 168,885 $ 0 $ 0 $ 0 $ 0
-------------- ----------------- ----------------- ----------------- --------------
</TABLE>
47
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
(1) This class of shares commenced operations on November 8, 1999.
(2) "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.
(3) "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.
(4) Class S became Class B on November 8, 1999.
(5) "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.
(6) Class E became Class A on November 8, 1999.
(7) 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.
(8) 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
--------------------------------------------------------------------------------
<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
A SHARES
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)
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 1.00 0.03 0.00 (0.03)
GOVERNMENT MONEY MARKET FUND
----------------------------------------------------------------------------
A SHARES
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... 1.00 0.02 0.00 (0.02)
MONEY MARKET FUND
----------------------------------------------------------------------------
A SHARES
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)
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 1.00 0.05 0.00 (0.05)
B SHARES
APRIL 1, 1999 TO MARCH
31, 2000(5)............ 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)
MAY 25, 1995 TO DECEMBER
31, 1995............... 1.00 0.03 0.00 (0.03)
NATIONAL TAX-FREE MONEY MARKET FUND
----------------------------------------------------------------------------
A SHARES
JUNE 1, 1999 TO MARCH 31,
2000(6)................ 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)
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.03 0.00 (0.03)
100% TREASURY MONEY MARKET FUND
----------------------------------------------------------------------------
A SHARES
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... 1.00 0.02 0.00 (0.02)
TREASURY PLUS MONEY MARKET FUND(7)
----------------------------------------------------------------------------
A SHARES
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>
50
<PAGE>
FINANCIAL HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSETS ---------------------------------------- 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
A SHARES
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
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 0.00 1.00 3.18% 0.65% 1.01% 3.23% 1,031,004
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------------------
A SHARES
NOVEMBER 8, 1999(4) TO
MARCH 31, 2000......... 0.00 1.00 4.99% 0.75% 0.81% 1.99% 58,960
MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------------------
A SHARES
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
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... 0.00 1.00 5.13% 0.75% 0.83% 5.34% 2,892,621
B SHARES
APRIL 1, 1999 TO MARCH
31, 2000(5)............ 0.00 1.00 4.07% 1.46% 1.64% 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
MAY 25, 1995 TO DECEMBER
31, 1995............... 0.00 1.00 4.40% 1.43% 1.53% 2.73% 618,899
NATIONAL TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------------------
A SHARES
JUNE 1, 1999 TO MARCH 31,
2000(6)................ 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
JUNE 1, 1994 TO MAY 31,
1995................... 0.00 1.00 3.10% 0.65% 0.93% 3.13% 47,424
100% TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------------------
A SHARES
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(7)
--------------------------------------------------------------------------------------------------------------------------
A SHARES
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 FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 9).
(2) 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) This class of shares was redesignated from Class S to Class B on
November 8, 1999
(6) The Fund changed its fiscal year-end from May 31 to March 31
(7) 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
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 61 separate series. These financial
statements represent the California Tax-Free Money Market, Government 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, a diversified series of the Trust. The California Tax-Free Money Market
Fund is a non-diversified series of the Trust.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective on the close of
business November 5, 1999 the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust through an exchange of shares as
follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND CALIFORNIA TAX-FREE MONEY MARKET 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 a 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 a consolidation, the Wells Fargo Money Market Fund acquired all of the net
assets of the Stagecoach Money Market Fund, the net assets of the A share
class of the Stagecoach Prime Money Market, and the net assets of the A and B
share classes of the Norwest Advantage Ready Cash Investment Fund. The
A share class of 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 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 a 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 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.
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 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 also 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
53
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MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
share classes. Dividends are determined separately for each class based on
income and expenses allocable to each class. Realized gains and losses are
allocated to each class pro rata based on the net assets of each class on the
date incurred. No class has preferential dividend rights. Differences in per
share dividend rates generally result 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' custodians' responsibility to value
collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements held by the Funds are collateralized by instruments
such as U.S. Treasury, federal agency, or high-grade corporate obligations.
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax and merger-related differences, reclassification adjustments were
made as follows:
<TABLE>
<CAPTION>
Undistributed
Undistributed Net Net Realized
Investment Income Gain/Loss Paid-in Capital
<S> <C> <C> <C>
GOVERNMENT MONEY MARKET FUND 56,270 77,612 (133,882)
MONEY MARKET FUND 0 364,264 (364,264)
NATIONAL TAX-FREE MONEY MARKET FUND 126,904 (122,523) (4,381)
100% TREASURY MONEY MARKET FUND 66,880 (66,880) 0
TREASURY PLUS MONEY MARKET FUND 0 16,535 (16,535)
</TABLE>
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at March 31,
2000.
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Fund Year Expires Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 3/31/02 $ 92,680
3/31/03 31,569
3/31/05 144,877
3/31/06 25,929
3/31/07 358,280
3/31/08 10,810
100% TREASURY MONEY MARKET FUND 3/31/08 $780,757
GOVERNMENT MONEY MARKET FUND 3/31/08 $107,576
NATIONAL TAX-FREE MONEY MARKET FUND 3/31/08 $ 4
TREASURY PLUS MONEY MARKET FUND 3/31/08 $ 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.
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
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-
55
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
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.
Prior to November 8, 1999, the Trust had entered into separate advisory
contracts on behalf of the California Tax-Free Money Market, Money Market, and
Treasury Plus Money Market Funds with WFB. Pursuant to the contracts, WFB had
agreed to provide the Funds with daily portfolio management. Under the old
contracts with the Funds, WFB was entitled to be paid monthly advisory fees at
the annual rates of 0.50% of the California Tax-Free Money Market Fund's
average daily net assets, 0.40% of the Money Market Fund's average daily net
assets, and 0.25% of the Treasury Plus Money Market Fund's average daily net
assets.
Prior to November 8, 1999, the investment adviser to the Government Money
Market, National Tax-Free Money Market, and 100% Treasury Money Market Funds
was Norwest Investment Management, Inc. ("Adviser"), a wholly-owned subsidiary
of Norwest Bank Minnesota, N.A. ("Norwest"), which is a subsidiary of Wells
Fargo & Company. For the Government Money Market and 100% Treasury Money
Market Funds, the Adviser was entitled to be paid an advisory fee at the
annual rate of 0.20% of each Fund's average daily net assets up to $300
million, declining to 0.12% of the average daily net assets of each Fund in
excess of $700 million. The Adviser received an advisory fee from the National
Tax-Free Money Market Fund at an annual rate of 0.35% of the average daily net
assets up to $500 million, declining to 0.30% of the average daily net assets
in excess of $1 billion.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B shares of
the Money Market Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution
fees are charged to the Money Market Fund's Class B shares and paid to
Stephens, Inc. ("Stephens") at a rate of 0.75% of average daily net assets.
There are no distribution fees for Class A and Service Class shares. The
distribution fees paid on behalf of the Fund for the period ended March 31,
2000 is disclosed in the Statement of Operations.
Prior to November 8, 1999, the Plan for the Class A shares of the California
Tax-Free Money Market and Money Market Funds provided that the Funds may
defray all or part of the cost of preparing, printing and distributing
prospectuses and other promotional materials by paying for costs incurred on
an annual basis of up to 0.05% of the average daily net assets attributable to
each Fund's Class A shares. These Plans for the Class A shares provided only
for the reimbursement of actual expenses. The Plan for the Class A shares of
the Treasury Plus Money Market Fund provided that the Fund may pay to
Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, up to 0.05% of the average
daily net assets attributable to the Fund's Class A shares.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB is entitled to receive monthly fees at the annual rate of
0.15% of each Fund's average daily net assets.
Prior to November 8, 1999, the Administrator for the Government Money Market,
National Tax-Free Money Market, and 100% Treasury Money Market Funds was Forum
Administrative Services, LLC ("FAdS"). The Funds were charged monthly fees at
the annual rate of 0.05% of each Fund's average daily net assets, with
exception to the National Tax-Free Money Market Fund which was charged 0.10%
of the Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds. Prior to November 8, 1999,
for the Government Money Market, National Tax-Free Money Market, and 100%
Treasury Money Market Funds, Norwest served as the transfer agent. For these
services, Norwest received a fee at an annual rate of 0.25% of the average
daily net assets attributable to each class of each Fund's shares.
Prior to July 17, 1999, the Trust had entered into a contract on behalf of
the Funds with WFB, whereby WFB provided transfer agency services for the
California Tax-Free Money Market, Money Market, and Treasury Plus Money Market
Funds, which were charged at an annual rate of 0.10% of the average daily net
assets of each Fund's Class A shares.
56
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
7. 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 and Class B shares for these
services. No fee is charged for Service Class shares of the California
Tax-Free Money Market, Government Money Market, and 100% Treasury Money Market
Funds. Prior to November 8, 1999, shareholder servicing fees were charged at
an annual rate of 0.30% of the average daily net assets of the Class A shares
of the California Tax-Free Money Market, Money Market, and Treasury Plus Money
Market Funds.
The shareholder servicing fees paid on behalf of the Funds for the period
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Class S/
Fund Class A Administrative Class B Institutional Class Class E Service Class
<S> <C> <C> <C> <C> <C> <C>
CALIFORNIA TAX-FREE MONEY
MARKET FUND $ 6,663,703 N/A N/A N/A N/A $ 0
GOVERNMENT MONEY MARKET
FUND 59,314 N/A N/A N/A N/A 0
MONEY MARKET FUND 30,686,657 N/A $1,569,400 N/A N/A 1,989,461
NATIONAL TAX-FREE MONEY
MARKET FUND 194,779 N/A N/A N/A N/A N/A
100% TREASURY MONEY
MARKET FUND 951 N/A N/A N/A N/A 0
TREASURY PLUS MONEY
MARKET FUND 2,151,430 74,716 N/A N/A 990,599 560,249
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. WFB provided sub-portfolio accounting services to the
California Tax-Free Money Market Fund. For these services, WFB was entitled to
a fixed monthly fee from the Fund plus an annual fee of 0.0025% of the Fund's
average daily net assets. Prior to November 8, 1999, the Trust entered into
contracts on behalf of the California Tax-Free Money Market, Money Market, and
Treasury Plus Money Market Funds with WFB, whereby WFB was responsible for
providing portfolio accounting services for the Funds. Pursuant to the
contract, WFB was entitled to a monthly base fee from each Fund of $2,000 plus
an annual fee of 0.07% of the first $50 million of each Fund's average daily
net assets, 0.045% of the next $50 million, and 0.02% of each Fund's average
daily net assets in excess of $100 million.
The Trust has entered into contracts on behalf of each Fund with Norwest Bank
Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest is
responsible for providing custody services for the Funds. Pursuant to the
contracts, Norwest is entitled to certain transaction charges plus a monthly
fee for custody services at the annual rate of 0.02% of the average daily net
assets of each Fund. Prior to November 8, 1999, the Government Money Market,
National Tax-Free Money Market, and 100% Treasury Money Market Funds had
Norwest serve as the custodian. For its custody services, Norwest was entitled
to receive a fee at an annual rate of 0.02% for the first $100 million of
average daily net assets of each Fund, 0.015% of the next $100 million of each
Fund's average daily net assets, and 0.01% of each Fund's average daily net
assets in excess of $200 million. Prior to November 8, 1999 the California
Tax-Free Money Market, Money Market, and Treasury Plus Money Market Funds had
the above service performed for a fee at an annual rate of 0.0167% of the
average daily net assets of each Fund. Prior to June 4, 1999 WFB performed the
above services for the California Tax-Free Money Market, Money Market, and
Treasury Plus Money Market Funds for the same fees.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 113,246 shares of the California Tax-Free Money Market
Fund, 27 shares of the Government Money Market Fund, 1,662,939 shares of the
Money Market Fund, 107 shares of the National Tax-Free Money Market Fund,
57
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
10,144 shares of the 100% Treasury Money Market Fund, and 150,760 shares of
the Treasury Plus Money Market Fund.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended March 31, 2000, were waived by WFB or FAdS.
Fee waivers are contractual and apply for one year from the November 5, 1999
closing date of the reorganization. After this time, the Advisor, with Board
approval, may reduce or eliminate such waivers.
<TABLE>
<CAPTION>
Fund Fees Waived by FAdS Fees Waived by WFB Total Fees Waived
<S> <C> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET
FUND $ 0 $ 7,309,075 $ 7,309,075
GOVERNMENT MONEY MARKET FUND 80,126 950,369 1,030,495
MONEY MARKET FUND 0 30,308,728 30,308,728
NATIONAL TAX-FREE MONEY MARKET FUND 590,744 169,847 760,591
100% TREASURY MONEY MARKET FUND 446,427 669,179 1,115,606
TREASURY PLUS MONEY MARKET FUND 0 3,697,134 3,697,134
</TABLE>
58
<PAGE>
INDEPENDENT AUDITORS' REPORT MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TO THE CLASS A AND CLASS B SHAREHOLDERS AND BOARD OF TRUSTEES
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities of
California Tax-Free Money Market Fund, Government Money Market Fund, Money
Market Fund, National Tax-Free Money Market Fund, 100% Treasury Money Market
Fund and Treasury Plus Money Market Fund (six of the funds comprising Wells
Fargo Funds Trust), including the Portfolios of Investments as of March 31,
2000, and the related statements of operations, statements of changes in net
assets and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian. As to securities purchased but not yet
received, we performed other appropriate auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Wells Fargo Funds Trust as of March 31, 2000,
the results of their operations, changes in their net assets and their
financial highlights for the periods indicated above in conformity with
accounting principles generally accepted in the United States of America.
/s/ KPMG LLP
San Francisco, California
May 12, 2000
59
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
For federal and California income tax purposes, the California Tax-Free Money
Market Fund designates 100% of the distributions paid from net investment
income as exempt-interest dividends under Section 852(b)(5) of the Internal
Revenue Code and under Section 17145 of the California Revenue and Taxation
Code for the period January 1, 2000 to March 31, 2000 (its first tax year
after the reorganization).
For federal income tax purposes, the National Tax-Free Money Market Fund
designates 100% of the distributions paid from net investment income as
exempt-interest dividends under Section 852(b)(5) of the Internal Revenue Code
for the period November 6, 1999 to March 31, 2000 (its first tax year after
the reorganization).
For California income tax purposes, the 100% Treasury Money Market Fund
designates 100% of the distributions paid from net investment income as
California exempt-interest dividends under Section 17145 of the California
Revenue and Taxation Code for the period June 1, 1999 to March 31, 2000 (its
first tax year after the reorganization).
For California income tax purposes, the Treasury Plus Money Market Fund
designates 55% of the distributions paid from net investment income as
California exempt-interest dividends under Section 17145 of the California
Revenue and Taxation Code for the period November 6, 1999 to March 31, 2000
(its first tax year after the reorganization).
60
<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
61
<PAGE>
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are sponsored and distributed by STEPHENS INC., Member NYSE/SIPC.
Wells Fargo Bank, N.A., and its affiliates are not affiliated with Stephens
Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
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P.O. Box 8266
Boston, MA 02266-8266
AR004 (5/00)
