<PAGE>
[WELLS FARGO FUNDS LOGO]
SEMI-ANNUAL REPORT
OVERLAND EXPRESS SWEEP FUND
September 30, 2000
<PAGE>
OVERLAND EXPRESS SWEEP FUND
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TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS.........................................................2
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PORTFOLIO OF INVESTMENTS.......................................................4
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FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES..........................................7
STATEMENT OF OPERATIONS......................................................8
STATEMENTS OF CHANGES IN NET ASSETS..........................................9
FINANCIAL HIGHLIGHTS........................................................10
NOTES TO FINANCIAL STATEMENTS.................................................12
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LIST OF ABBREVIATIONS.........................................................15
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
For investors, the six-month period ended September 30, 2000, was a time
characterized by market volatility. The market included a significant downturn
in technology stocks and attractive gains posted by bonds. In all, rapidly
changing markets reinforced the importance of diversified portfolios of
stocks, bonds and cash to help investors earn more balanced returns in
difficult times.
For stocks, April was the cruelest month. Against a backdrop of ongoing
interest rate hikes and their potential impact on corporate earnings, both the
Dow Jones Industrial Average (the Dow) and the Nasdaq Composite Index (Nasdaq)
went into a tailspin, with the Nasdaq plummeting 25% over five days. Although
the Nasdaq would flounder throughout the remainder of the period, the Dow
staged an impressive August rally -- only to surrender its gains one month
later due to concerns over corporate earnings.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Rising interest rates reflected the Federal Reserve Board's (the Fed) desire
to engineer an economic slowdown and to gradually drain speculative excess out
of the stock market. The interest rate increases, including an aggressive
half-point increase on May 16, 2000, which ultimately achieved the desired
affect. The rising interest rates benefited investors by boosting yields on
shorter-term securities within money market portfolios. U.S. Government
Treasury securities performed well during the second quarter and asset-and
mortgage-backed securities, plus U.S. Government agency securities, assumed a
leadership role in recent months.
Wells Fargo Money Market Funds, which maintained their $1.00 per share price
throughout this volatile period, continue to meet the investor demand for
safety, stability and liquidity.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
--------------------------------------------------------------------------------
Regardless of how financial markets have performed over recent months, Wells
Fargo Funds continue to encourage investors to think long-term. Wells Fargo
Funds continue to stress the importance of a diversified portfolio, a
portfolio that can capitalize on market opportunities while shielding investor
holdings against a downturn in any one sector. Wells Fargo Funds offers an
array of 65 mutual funds designed to meet an investor's risk tolerance and
long-term goals. Thank you for investing in Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
1
<PAGE>
OVERLAND EXPRESS SWEEP FUND PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Overland Express Sweep Fund (the Fund) seeks to provide
investors with current income while preserving capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGER
Michael Neitzke
INCEPTION DATE
10/01/91
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund returned 2.68%(1) for the six-month period ended September 30, 2000.
The Fund underperformed its benchmark, the 90-Day Treasury Bill(2), which
returned 3.05%. It also underperformed the iMoneyNet All First Tier Retail
Money Fund Average(3), which returned 2.91%.
The Fund seeks to ensure safety and liquidity for shareholders. Only after
these primary objectives are realized does the Fund seek increased yields.
These goals, as well as the value criteria it utilizes in investment
decisions, allow the Fund to focus on long-term trends. Short-term volatility
in interest rates does not heavily influence the management of the Overland
Express Sweep Fund.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Looking ahead, the Fund expects that interest rates may decline in the coming
year. The Fund is positioned to meet the challenge of this new economic
paradigm. The Fund manager will continue his policy of extending the maturity
structure of the portfolio and seeking value investments in both short- and
long-term securities. With the economic climate clouded by uncertainty over
the direction of interest rates, the Fund remains committed to its core
objectives of stability and liquidity for investors. However, there is by no
means a consensus on the direction of the economy. While the majority
consensus leans toward a soft landing and stable interest rates, some believe
that energy price hikes may trigger inflation. In view of this uncertainty and
its concomitant risks, the Fund is well positioned to maintain a stable asset
value of $1.00 per share at any level of market volatility.
2
<PAGE>
PERFORMANCE HIGHLIGHTS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
FUND 2.68 5.05 4.47 3.84
BENCHMARK
90-DAY TREASURY BILL 3.05 5.95 5.23 4.73(4)
IMONEYNET FIRST-TIER RETAIL
MONEY FUND AVERAGE 2.91 5.52 5.00 4.44(4)
</TABLE>
YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.47%
7-DAY COMPOUND YIELD 5.62%
30-DAY SIMPLE YIELD 5.45%
30-DAY COMPOUND YIELD 5.58%
</TABLE>
CHARACTERISTICS (AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 75 DAYS
NUMBER OF HOLDINGS 81
</TABLE>
PORTFOLIO COMPOSITION(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 52%
Certificate of Deposits 16%
Time Deposits 13%
Floating/Variable Rate Notes/Bonds 11%
Corporate Bonds 5%
Repurchase Agreements 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) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's Advisor has committed through July 31, 2001, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Wells Fargo Overland Express Sweep Fund for periods
prior to November 8, 1999, reflects performance of the Stagecoach Overland
Express Sweep Fund, its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach Fund was reorganized into the Wells Fargo Fund.
Performance shown for periods prior to December 15, 1997, reflects performance
of the Overland Express Funds, Inc. Overland Express Sweep Fund, a predecessor
fund of the Stagecoach Fund.
(2) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(3) The iMoneyNet First Tier Retail Money Fund Average is an average of
non-government retail funds that do not hold any second tier securities.
Portfolio holdings of First Tier funds include U.S. Treasury securities, U.S.
other securities, repos, time deposits, domestic bank obligations, foreign bank
obligations, first tier commercial paper, floating rate notes and asset-backed
commercial paper.
(4) The published return closest to Fund's inception date of 10/01/91.
(5) Portfolio holdings are subject to change.
3
<PAGE>
OVERLAND EXPRESS SWEEP FUND PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
BANK NOTES - 0.80%
$ 35,000,000 BANK OF AMERICA CORPORATION 7.23% 2/16/01 $ 35,000,000
--------------
35,000,000
TOTAL BANK NOTES (COST $35,000,000)
--------------
VARIABLE & FLOATING RATE BONDS - 1.64%
72,500,000 J.P. MORGAN & COMPANY,
INCORPORATED++ 6.61 3/16/01 72,500,000
--------------
72,500,000
TOTAL VARIABLE & FLOATING RATE BONDS (COST
$72,500,000)
--------------
VARIABLE & FLOATING RATE NOTES - 8.67%
45,000,000 ASSOCIATES CORPORATION OF
NORTH AMERICA++ 6.66 6/26/01 45,000,000
53,500,000 BEAR STEARNS COMPANIES,
INCORPORATED++ 6.68 3/29/01 53,500,000
36,500,000 COMERICA BANK 6.57 1/12/01 36,495,994
25,000,000 KEYCORP 6.66 5/15/01 24,996,920
98,500,000 MORGAN STANLEY, DEAN WITTER,
DISCOVER & COMPANY 6.60 3/16/01 98,500,000
123,300,000 UNILEVER CAPITAL CORPORATION 6.65 9/7/01 123,300,000
381,792,914
TOTAL VARIABLE & FLOATING RATE NOTES (COST
$381,792,914)
--------------
COMMERCIAL PAPER - 51.70%
44,580,000 ACE OVERSEAS CORPORATION 6.99{::} 12/4/00 44,053,399
43,972,000 ALPINE SECURITIZATION
CORPORATION 6.59{::} 10/26/00 43,779,989
50,000,000 ATLANTIS ONE FUNDING
CORPORATION 6.63{::} 10/6/00 49,963,611
80,000,000 BANK OF AMERICA CORPORATION 6.47{::} 10/12/00 79,860,889
20,000,000 BANK OF AMERICA CORPORATION 6.82{::} 2/9/01 19,524,056
61,200,000 BAVARIA TRR CORPORATION 6.68{::} 4/17/01 59,043,244
40,400,000 BAVARIA TRR CORPORATION 6.69{::} 4/17/01 38,975,154
42,600,000 BEAR STEARNS COMPANIES,
INCORPORATED 6.75{::} 5/30/01 40,773,881
25,000,000 BETA FINANCE, INCORPORATED 6.15{::} 10/6/00 25,000,000
61,000,000 BETA FINANCE, INCORPORATED 6.47{::} 10/13/00 60,883,321
32,000,000 CC (USA), INCORPORATED 6.77{::} 3/15/01 32,000,000
30,000,000 CC (USA), INCORPORATED 6.79{::} 3/15/01 30,000,000
51,700,000 COMPASS SECURITIZATION, LLC 6.46{::} 10/16/00 51,574,340
45,000,000 COMPASS SECURITIZATION, LLC 6.81{::} 1/10/01 44,172,500
34,500,000 CREDIT SUISSE FIRST BOSTON 6.71{::} 2/1/01 33,737,704
99,362,000 CROWN POINT CAPITAL COMPANY
LLC 6.59{::} 10/20/00 99,036,590
31,392,000 CXC INCORPORATED 6.56{::} 10/6/00 31,369,223
18,500,000 DORADA FINANCE, INCORPORATED 6.77{::} 3/15/01 18,500,000
12,000,000 GAP INCORPORATED 6.76{::} 9/21/01 12,000,000
106,200,000 GE CAPITAL SERVICE 6.75{::} 1/30/01 103,877,760
75,500,000 GENERAL ELECTRIC CAPITAL
INTERNATIONAL FUNDING 6.75{::} 2/2/01 73,815,532
69,550,000 GOLDMAN SACHS GROUP,
INCORPORATED LP 6.74{::} 2/7/01 67,937,677
80,000,000 GOVCO, INCORPORATED 6.65{::} 10/23/00 79,694,800
82,000,000 GOVCO, INCORPORATED 6.68{::} 11/2/00 81,536,085
25,300,000 GREYHAWK FUNDING 6.76{::} 2/2/01 24,734,672
50,000,000 HALOGEN CAPITAL COMPANY LLC 6.57{::} 10/16/00 49,872,833
15,000,000 HALOGEN CAPITAL COMPANY LLC 6.58{::} 10/16/00 14,961,850
75,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.57{::} 10/11/00 74,877,563
28,550,000 J.P. MORGAN & COMPANY,
INCORPORATED 6.45{::} 10/11/00 28,505,426
9,700,000 K2 (USA) LLC 6.78{::} 2/16/01 9,458,214
107,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 6.74{::} 3/2/01 104,073,789
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED) OVERLAND EXPRESS
SWEEP FUND
--------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 35,600,000 MOAT FUNDING, LLC 6.95%{::} 12/4/00 $ 35,181,344
18,750,000 MOAT FUNDING, LLC 6.93{::} 12/13/00 18,498,750
14,700,000 MOAT FUNDING, LLC 6.93{::} 12/14/00 14,500,284
22,500,000 MOAT FUNDING, LLC 6.73{::} 1/26/01 22,025,125
61,000,000 MOAT FUNDING, LLC 6.91{::} 2/7/01 59,553,352
25,000,000 MOAT FUNDING, LLC 7.26{::} 2/13/01 24,358,848
69,639,000 PERRY GLOBAL FUNDING LTD. 6.62{::} 10/18/00 69,436,583
18,600,000 SIGMA FINANCE INCORPORATED 6.74{::} 5/3/01 17,889,078
24,100,000 SIGMA FINANCE INCORPORATED 6.77{::} 5/22/01 23,096,690
70,000,000 SIGMA FINANCE INCORPORATED 6.85{::} 2/2/01 68,417,913
50,000,000 SIGMA FINANCE INCORPORATED 6.47{::} 10/12/00 49,913,056
23,100,000 SIGMA FINANCE INCORPORATED 6.73{::} 6/15/01 22,047,052
65,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.15{::} 1/19/01 65,000,000
41,300,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.85{::} 2/6/01 40,335,485
61,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLE COOPERATIVE
CORPORATION 6.61{::} 2/23/01 61,000,000
4,776,000 SYDNEY CAPITAL CORPORATION 6.93{::} 12/21/00 4,704,891
26,978,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.56{::} 10/10/00 26,938,852
59,343,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.70{::} 1/16/01 58,196,757
67,000,000 VENTURES BUSINESS TRUST 6.69{::} 10/16/00 66,828,554
2,275,516,716
TOTAL COMMERCIAL PAPER (COST $2,275,516,716)
--------------
CORPORATE BONDS & NOTES - 5.62%
45,770,000 BANK OF AMERICA CORPORATION 6.83 1/22/01 45,770,000
20,000,000 BETA FINANCE INCORPORATED 6.77 3/15/01 20,000,000
40,000,000 BETA FINANCE INCORPORATED 6.82 2/15/01 40,000,000
48,000,000 CC (USA) INCORPORATED 7.12 5/5/01 48,000,000
10,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.50 12/22/00 10,000,000
33,500,000 MARSHALL & ISLEY CORPORATION 6.81 3/21/01 33,500,000
50,000,000 U.S. BANK N.A. 5.92 10/2/00 50,000,000
247,270,000
TOTAL CORPORATE BONDS & NOTES (COST
$247,270,000)
--------------
CERTIFICATES OF DEPOSIT - 15.88%
35,000,000 ABN AMRO BANK 6.72 2/12/01 34,996,372
35,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 1/29/01 34,995,664
47,000,000 COMMERZBANK NY 6.77 2/28/01 46,994,541
35,000,000 DEUTSCHE BANK NY 6.07 10/10/00 34,999,672
70,000,000 DRESDNER BANK AG 7.10 5/15/01 70,000,000
67,000,000 DRESDNER BANK AG 6.81 5/11/01 67,000,000
66,800,000 NATEXIS BANK 6.77 2/26/01 66,865,165
172,700,000 SOUTHTRUST BANK 6.88 1/8/01 172,700,000
15,500,000 SOUTHTRUST BANK 6.87 1/10/01 15,500,000
50,000,000 U.S. BANK 6.59 1/16/01 50,000,000
55,000,000 UNION BANK OF SWITZERLAND 6.22 12/11/00 54,992,462
50,000,000 UNION BANK OF SWITZERLAND 6.24 12/6/00 49,994,060
699,037,936
TOTAL CERTIFICATES OF DEPOSIT (COST
$699,037,936)
--------------
TIME DEPOSITS - 12.63%
100,000,000 BANCA COMMERCIALE ITALIANA,
LONDON 6.75 10/2/00 100,000,000
100,000,000 BANQUE BRUXELLES LAMBERT,
LONDON 6.75 10/2/00 100,000,000
</TABLE>
5
<PAGE>
OVERLAND EXPRESS SWEEP FUND PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
TIME DEPOSITS (continued)
$150,000,000 BARCLAY'S BANK, LONDON 6.73% 10/2/00 $ 150,000,000
100,000,000 CAISSE DES DEPOTS ET
CONSIGNATIONS, PARIS 6.73 10/2/00 100,000,000
105,790,247 MERITA BANK, GRAND CAYMAN 6.75 10/2/00 105,790,247
555,790,247
TOTAL TIME DEPOSITS (COST $555,790,247)
--------------
REPURCHASE AGREEMENTS - 2.73%
120,000,000 GOLDMAN SACHS & COMPANY
REPURCHASE AGREEMENT 6.75 10/2/00 120,000,000
--------------
120,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$120,000,000)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $4,386,907,813)* 99.67% $4,386,907,813
OTHER ASSETS AND LIABILITIES, NET 0.33 14,606,214
------- --------------
TOTAL NET ASSETS 100.00% $4,401,514,027
------- --------------
</TABLE>
++ VARIABLE RATE.
{::} 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.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000 (UNAUDITED) OVERLAND
EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS
SWEEP FUND
<S> <C>
--------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT AMORTIZED COST................ $ 4,386,907,813
RECEIVABLE FOR DIVIDENDS AND INTEREST AND OTHER
RECEIVABLES................................... 37,580,015
----------------
TOTAL ASSETS...................................... 4,424,487,828
----------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 3,422,616
PAYABLE TO OTHER RELATED PARTIES................ 1,286,461
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 767,072
DIVIDENDS PAYABLE............................... 17,497,652
----------------
TOTAL LIABILITIES................................. 22,973,801
----------------
TOTAL NET ASSETS.................................. $ 4,401,514,027
----------------
NET ASSETS CONSIST OF:
--------------------------------------------------------------------
PAID-IN CAPITAL................................. $ 4,401,936,873
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... (422,846)
----------------
TOTAL NET ASSETS.................................. $ 4,401,514,027
----------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
--------------------------------------------------------------------
NET ASSETS........................................ $ 4,401,514,027
SHARES OUTSTANDING................................ 4,401,947,506
NET ASSET VALUE AND OFFERING PRICE PER SHARE...... $ 1.00
----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
7
<PAGE>
OVERLAND EXPRESS SWEEP FUND STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS
SWEEP FUND
<S> <C>
--------------------------------------------------------------------
INVESTMENT INCOME
INTEREST........................................ $ 134,893,648
----------------
TOTAL INVESTMENT INCOME........................... 134,893,648
----------------
EXPENSES
ADVISORY FEES................................... 9,245,674
ADMINISTRATION FEES............................. 3,081,892
CUSTODY......................................... 410,919
SHAREHOLDER SERVICING FEES...................... 6,163,783
PORTFOLIO ACCOUNTING FEES....................... 102,730
TRANSFER AGENT.................................. 102,730
DISTRIBUTION FEES............................... 6,163,783
LEGAL AND AUDIT FEES............................ 126,277
REGISTRATION FEES............................... 190,717
DIRECTORS' FEES................................. 2,664
SHAREHOLDER REPORTS............................. 44,714
OTHER........................................... 46,530
----------------
TOTAL EXPENSES.................................... 25,682,413
----------------
----------------
NET INVESTMENT INCOME............................. 109,211,235
----------------
NET REALIZED GAIN FROM INVESTMENTS.............. 107,427
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $ 109,318,662
----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERLAND EXPRESS SWEEP FUND
------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31, 2000
<S> <C> <C>
------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.................... $ 3,863,612,175 $ 3,097,218,696
OPERATIONS:
NET INVESTMENT INCOME................. 109,211,235 146,044,226
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS......................... 107,427 (5,277)
------------------ ---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... 109,318,662 146,038,949
------------------ ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME................. (109,211,235) (146,044,226)
CAPITAL SHARE TRANSACTIONS(1):
PROCEEDS FROM SHARES SOLD............. 6,127,652,534 8,596,587,764
REINVESTMENT OF DIVIDENDS............. 5,694,334 5,540
COST OF SHARES REDEEMED............... (5,595,552,443) (7,830,194,548)
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS.......................... 537,794,425 766,398,756
------------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS... 537,901,852 766,393,479
------------------ ---------------
NET ASSETS:
------------------------------------------------------------------------------
ENDING NET ASSETS..................... $ 4,401,514,027 $ 3,863,612,175
------------------ ---------------
</TABLE>
(1) SHARES ISSUED AND REDEEMED AT CONSTANT $1.00 NAV
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
OVERLAND EXPRESS SWEEP FUND FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEGINNING DIVIDENDS
NET ASSET NET FROM NET
VALUE PER INVESTMENT INVESTMENT
SHARE INCOME INCOME
<S> <C> <C> <C>
------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 0.03 (0.03)
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 0.04 (0.04)
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 0.04 (0.04)
JANUARY 1, 1998 TO
MARCH 31, 1998......... $ 1.00 0.01 (0.01)
JANUARY 1 , 1997 TO
DECEMBER 31, 1997...... $ 1.00 0.04 (0.04)
JANUARY 1, 1996 TO
DECEMBER 31, 1996...... $ 1.00 0.04 (0.04)
</TABLE>
(1) RATIOS INCLUDE ACTIVITY OF THE CASH INVESTMENT TRUST MASTER PORTFOLIO PRIOR
TO DECEMBER 15, 1997.
(2) 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
NET ASSET ------------------------------------------- NET ASSETS AT
VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
SHARE INCOME(1) EXPENSES(1) EXPENSES(1)(2) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
OVERLAND EXPRESS SWEEP FUND
APRIL 1, 2000 TO
SEPTEMBER 30, 2000..... $ 1.00 5.32% 1.25% 1.25% 2.68% $ 4,401,514
APRIL 1, 1999 TO
MARCH 31, 2000......... $ 1.00 4.29% 1.25% 1.29% 4.32% $ 3,863,612
APRIL 1, 1998 TO
MARCH 31, 1999......... $ 1.00 4.16% 1.25% 1.28% 4.26% $ 3,097,219
JANUARY 1, 1998 TO
MARCH 31, 1998......... $ 1.00 4.49% 1.25% 1.26% 1.11% $ 2,594,910
JANUARY 1 , 1997 TO
DECEMBER 31, 1997...... $ 1.00 4.40% 1.24% 1.26% 4.47% $ 2,956,090
JANUARY 1, 1996 TO
DECEMBER 31, 1996...... $ 1.00 4.20% 1.24% 1.26% 4.29% $ 2,002,725
</TABLE>
(1) RATIOS INCLUDE ACTIVITY OF THE CASH INVESTMENT TRUST MASTER PORTFOLIO PRIOR
TO DECEMBER 15, 1997.
(2) 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
OVERLAND EXPRESS SWEEP FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 65 separate series. These financial
statements present the Overland Express Sweep Fund (the "Fund"), a diversified
series of the Trust.
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 Fund invests only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolio 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 Fund uses the amortized cost method to value its 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 Fund seeks to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that it will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
REPURCHASE AGREEMENTS
The 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 Fund's custodian's
responsibility to value collateral daily and to take action to obtain
additional collateral as necessary to maintain market value equal to or
greater than the resale price. The repurchase agreements held by the Fund are
collateralized by instruments such as U.S. Treasury, federal agency, or
high-grade corporate obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
The 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
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
applicable to regulated investment companies, as defined in the Code, and to
make distributions of substantially all of its investment company taxable
income and any net realized capital gains (after reduction for capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
federal income taxes. Accordingly, no provision for federal income taxes was
required at September 30, 2000.
The Overland Express Sweep Fund had estimated net capital loss carryforwards,
which are available to offset future net realized capital gains as follows:
<TABLE>
<CAPTION>
Capital Loss
Date Year Expires Carryforwards
<S> <C> <C>
MARCH 31, 2000 2003 $513,061
2005 8,595
2008 8,617
</TABLE>
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Overland
Express Sweep Fund with WFB. Pursuant to the contract, WFB has agreed to
provide the Fund with daily portfolio management, for which, WFB is entitled
to be paid a monthly advisory fee at the annual rate of 0.45% of the Fund's
average daily net assets.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Fund. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Fund, a monthly
fee at the annual rate of 0.05% of the Fund's average daily net assets up to
$1 billion and 0.04% of the Fund's average daily net assets in excess of
$1 billion.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") on behalf of the
Overland Express Sweep Fund pursuant to Rule 12b-1 under the 1940 Act. The
Plan provides that the Fund may pay to Stephens Inc. (Stephens), as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of up to 0.30%
of the Fund's average daily net assets. The distribution fees paid on behalf
of the Fund for the period ended September 30, 2000 are disclosed in the
Statement of Operations.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Fund
with WFB whereby WFB provides administrative services to the Trust and is
entitled to receive a monthly fee at the annual rate of 0.15% 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 Fund
with Boston Financial Data Services ("BFDS"). Under the transfer agency
contract, BFDS is entitled to receive, on a monthly basis, transfer agency
fees based on the number of accounts and transactions of the Fund. WFB will
continue to provide sub-transfer agency services to the Fund.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into a contract on behalf of the Fund with numerous
shareholder servicing agents, whereby the Fund is charged 0.30% of the average
daily net assets of the Fund for these services. The shareholder servicing
fees paid on behalf of the Fund for the period ended September 30, 2000 were
$6,163,783.
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Fund. In addition, the Trust has entered into a contract on
behalf of the Fund with Wells Fargo Bank Minnesota, N.A. ("WFB MN"), formerly
Norwest Bank Minnesota, N.A., whereby WFB MN is responsible for providing
custody services for the Fund. Pursuant to the contract, WFB MN is entitled to
certain transaction charges plus a monthly fee for custody services at the
annual rate of 0.02% of the average daily net assets of the Fund. Certain
officers of the Trust were also officers of Stephens for a portion of the
period. As of September 30, 2000, Stephens owned 140,490 shares of the
Overland Express Sweep Fund.
13
<PAGE>
OVERLAND EXPRESS SWEEP FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
9. REORGANIZATION
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective at the close of
business November 5, 1999, the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust through a tax-free exchange of
shares. The Stagecoach Overland Express Sweep Fund was reorganized into the
Trust's Overland Express Sweep Fund at this time.
14
<PAGE>
LIST OF ABBREVIATIONS OVERLAND EXPRESS SWEEP FUND
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
</TABLE>
15
<PAGE>
More information about Wells Fargo Funds is available free upon request. To
obtain literature, please write, fax or e-mail to:
Wells Fargo Funds
P.O. Box 8266
Boston, MA 02266-8266
Fax: 1-415-977-9301
E-mail: [email protected]
Or, call the WELLS FARGO FUNDS Sales & Service Desk at 1-800-552-9612.
Wells Fargo Bank, N.A. and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo
Funds. The Funds are distributed by STEPHENS INC., Member NYSE/SIPC. Wells
Fargo Bank, N.A. and its affiliates are not affiliated with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If
this report is used for promotional purposes, distribution of the report
must be accompanied or preceded by a current prospectus. For a prospectus
containing more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send
money.
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P.O. Box 8266
Boston, MA 02266-8266
DATED MATERIAL
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