<PAGE>
[WELLS FARGO LOGO]
FUNDS
Annual Report
STOCK FUNDS
September 30, 2000
CLASS O
EQUITY INDEX FUND
OTC GROWTH FUND
<PAGE>
STOCK FUNDS
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TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
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PERFORMANCE HIGHLIGHTS
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EQUITY INDEX FUND............................................................2
OTC GROWTH FUND..............................................................4
PORTFOLIO OF INVESTMENTS
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EQUITY INDEX FUND............................................................6
OTC GROWTH FUND.............................................................20
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES........................................23
STATEMENTS OF OPERATIONS....................................................24
STATEMENTS OF CHANGES IN NET ASSETS.........................................25
FINANCIAL HIGHLIGHTS........................................................26
NOTES TO FINANCIAL HIGHLIGHTS.................................................26
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NOTES TO FINANCIAL STATEMENTS.................................................28
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INDEPENDENT AUDITORS' REPORT..................................................32
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TAX INFORMATION...............................................................33
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LIST OF ABBREVIATIONS.........................................................34
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
STOCK FUNDS
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DEAR VALUED SHAREHOLDER,
Volatility once again dominated financial markets during the fiscal year
ended September 30, 2000. The Dow Jones Industrial Average (the Dow) soared to
a record high in January only to surrender most of its gains by fiscal
year-end. Along the way, the utility sector plus small cap and mid cap stocks
emerged as market leaders, underscoring the importance of diversification amid
changing markets.
The fiscal year began on an optimistic note, with the average international
stock fund climbing 25% during the fourth quarter of 1999, and an average of
18% returns posted by U.S. diversified stock funds. Technology funds far
outpaced the broader market, soaring 61% during the period. The market rally
capped an unprecedented fifth straight year of double-digit gains, with
consumer confidence at an all-time high and unemployment at its lowest level
in 30 years. For a while, it appeared as though nothing could impede the
upward momentum of the stock market.
ENGINEERING A SOFT LANDING
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In a comment that would set the stage for the market's performance during the
first half of 2000, Federal Reserve Board (the Fed) Chairman Alan Greenspan
said that he would continue to raise short-term interest rates until the
economy and the stock market slowed.
The threat of rising interest rates and their impact on corporate profits
sent shockwaves through the market, with the Dow losing nearly 13% by mid
March. In April's second week, the Nasdaq Composite Index took its
heaviest-ever decline, dropping 25% in five days and sending investors back to
the relative stability of the Dow's old economy -- blue chip stocks. The stock
market bubble had burst, with investor sentiment changing from bullish to
cautious.
The six interest rate hikes engineered by the Fed between June 1999 and May
2000 have worked their way through the economy -- and achieved their desired
affect. The U.S. economy has settled into a respectable, and sustainable,
3%-4% growth rate following a torrid 7% growth rate in 1999. The long-awaited
soft landing convinced many market watchers that the Fed would stop raising
interest rates.
As the fiscal year drew to a close, escalating oil prices replaced concerns
over the direction of interest rates. Indeed, higher energy prices combined
with slower growth and a weak euro made a big dent in corporate earnings,
clouding the investment outlook. At the same time, businesses lacked the
pricing power to offset declining profits. Suddenly, single-digit returns
became more attractive and more sustainable.
DIVERSIFICATION CAN HELP TAME MARKET VOLATILITY
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Finally, the year held several surprises for investors. The health care and
financial sectors returned to favor after a dismal 1999, while small cap and
mid cap growth stocks continued to lead the market. Rather than hunting for
the next new technology stock, investors were focused more on the fundamentals
that would sustain an investment during difficult times.
Regardless of how stocks perform in the future, Wells Fargo Funds continues
to stress the importance of appropriate diversification to help achieve
balanced returns. Wells Fargo Funds can help you weather market volatility and
reach your long-term investment goals through a spectrum of stock mutual funds
to help you reach your financial goals. To learn more about the Wells Fargo
Funds, or to review your investment portfolio, please meet with your
investment professional.
Wells Fargo Funds values your business and strives to develop each fund to
continue to meet your investment needs. In closing, thank you for investing in
Wells Fargo Funds.
Sincerely,
<TABLE>
<S> <C>
/s/ Michael J. Hogan
MICHAEL J. HOGAN
PRESIDENT,
WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
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EQUITY INDEX FUND -- CLASS O
INVESTMENT OBJECTIVE
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The Equity Index Fund (the Fund) seeks to approximate the total rate of return
of substantially all common stocks comprising the S&P 500 Index(1).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management Incorporated
FUND MANAGERS
Dave Sylvester
Laurie White
INCEPTION DATE
01/25/84
PERFORMANCE HIGHLIGHTS
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The Fund's Class O shares returned 12.87%(2) for the one-year period ended
September 30, 2000. The Fund underperformed its benchmark, the S&P 500 Index,
which returned 13.28% during the period. The Fund's Class O shares distributed
no dividend income and $3.21 per share in capital gains during the period.
Please keep in mind that past performance is no guarantee of future results.
The Fund's objective is to approximate the return of the S&P 500 Index. To
achieve this goal, the Fund invests in all 500 securities that make up the S&P
500 Index in the same weighting as the S&P 500 Index. Differences between the
Fund's performance and that of the S&P 500 Index are due to fund expenses and
the effects of cash positions held by the Fund. A small portion of the Fund's
assets are kept in cash so that the Fund can handle shareholder transactions
without being forced to trade stocks to provide liquidity. Holding cash
minimizes transaction costs, but it can hurt performance. The Fund's managers
strive to minimize the effect of holding cash by hedging the Fund's cash
position with S&P 500 Index futures contracts, which, in effect, give the Fund
a 100% equity position.
The S&P 500 Index experienced dramatic highs and lows over the reporting
period. In late 1999 and early 2000, its performance was driven by a powerful
rally in technology, media and telecommunications stocks. These stocks entered
a sharp correction in March 2000, however, and the volatility persisted
through September. Grappling with a number of factors--including higher
interest rates, higher crude oil prices and potentially slower growth in the
technology and telecommunications industries--investors began to favor sectors
that are traditionally considered defensive, such as utilities.
STRATEGIC OUTLOOK
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The Fund's managers believe that the U.S. economy is indeed slowing, a trend
that historically has led investors to favor defensive old-line and interest
rate sensitive areas of the stock market. As economic growth slows and
inflation fears dissipate, the Fund's managers expect the overall S&P 500
Index to move to new all-time highs during the next few months. The Fund's
managers will buy and sell securities only to reflect concurrent changes in
the underlying index.
2
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
CLASS O (3.73) 12.87 20.91 18.50
BENCHMARK
S&P 500 INDEX (3.60) 13.28 21.69 19.44
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.00
PRICE TO EARNINGS RATIO
(TRAILING 12 MONTHS) 28.5X
PRICE TO BOOK RATIO 5.2X
MEDIAN MARKET CAP ($B) 9.3
5 YEAR EARNINGS GROWTH
(HISTORIC) 10.4%
NUMBER OF HOLDINGS 503
PORTFOLIO TURNOVER 8%
</TABLE>
* A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
GENERAL ELECTRIC COMPANY 4.39%
CISCO SYSTEMS INCORPORATED 3.01%
MICROSOFT CORPORATION 2.44%
EXXON MOBIL CORPORATION 2.39%
PFIZER INCORPORATED 2.18%
INTEL CORPORATION 2.15%
CITIGROUP INCORPORATED 1.87%
ORACLE CORPORATION 1.70%
AMERICAN INTERATIONAL GROUP 1.70%
EMC CORPORATION 1.66%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF SEPTEMBER 30, 2000)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 30%
Financial 18%
Health Care 11%
Energy 6%
Consumer Non-Cyclical 6%
Consumer Cyclical 6%
Telecommunications 6%
Consumer Services 5%
Basic Materials 4%
Industrials 3%
Utilities 2%
Commercial Services 2%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Wells Fargo Equity
Index Fund Class O S&P 500 Index
9/30/90 $10,000 $10,000
10/31/90 $9,955 $9,957
11/30/90 $10,581 $10,601
12/31/90 $10,867 $10,896
1/31/91 $11,325 $11,371
2/28/91 $12,120 $12,184
3/31/91 $12,392 $12,479
4/30/91 $12,415 $12,509
5/31/91 $12,923 $13,048
6/30/91 $12,338 $12,451
7/31/91 $12,896 $13,031
8/31/91 $13,187 $13,340
9/30/91 $12,964 $13,117
10/31/91 $13,128 $13,293
11/30/91 $12,601 $12,757
12/31/91 $14,017 $14,216
1/31/92 $13,749 $13,952
2/29/92 $13,917 $14,132
3/31/92 $13,640 $13,857
4/30/92 $14,027 $14,264
5/31/92 $14,087 $14,334
6/30/92 $13,870 $14,121
7/31/92 $14,425 $14,698
8/31/92 $14,122 $14,397
9/30/92 $14,277 $14,566
10/31/92 $14,319 $14,616
11/30/92 $14,793 $15,114
12/31/92 $14,968 $15,299
1/31/93 $15,080 $15,427
2/28/93 $15,276 $15,637
3/31/93 $15,586 $15,967
4/30/93 $15,205 $15,581
5/31/93 $15,595 $15,998
6/30/93 $15,627 $16,045
7/31/93 $15,551 $15,981
8/31/93 $16,127 $16,587
9/30/93 $15,995 $16,460
10/31/93 $16,313 $16,800
11/30/93 $16,147 $16,640
12/31/93 $16,323 $16,841
1/31/94 $16,866 $17,414
2/28/94 $16,401 $16,941
3/31/94 $15,677 $16,203
4/30/94 $15,872 $16,410
5/31/94 $16,116 $16,680
6/30/94 $15,718 $16,271
7/31/94 $16,222 $16,805
8/31/94 $16,868 $17,494
9/30/94 $16,453 $17,067
10/31/94 $16,807 $17,450
11/30/94 $16,188 $16,814
12/31/94 $16,404 $17,064
1/31/95 $16,818 $17,506
2/28/95 $17,461 $18,188
3/31/95 $17,962 $18,723
4/30/95 $18,470 $19,274
5/31/95 $19,192 $20,043
6/30/95 $19,617 $20,508
7/31/95 $20,255 $21,188
8/31/95 $20,297 $21,241
9/30/95 $21,128 $22,137
10/31/95 $21,045 $22,058
11/30/95 $21,944 $23,025
12/31/95 $22,348 $23,469
1/31/96 $23,090 $24,267
2/29/96 $23,295 $24,493
3/31/96 $23,501 $24,728
4/30/96 $23,833 $25,091
5/31/96 $24,419 $25,736
6/30/96 $24,497 $25,834
7/31/96 $23,407 $24,692
8/31/96 $23,878 $25,213
9/30/96 $25,196 $26,630
10/31/96 $25,875 $27,365
11/30/96 $27,797 $29,431
12/31/96 $27,236 $28,848
1/31/97 $28,901 $30,648
2/28/97 $29,109 $30,891
3/31/97 $27,903 $29,624
4/30/97 $29,545 $31,390
5/31/97 $31,313 $33,308
6/30/97 $32,709 $34,790
7/31/97 $35,254 $37,556
8/31/97 $33,269 $35,452
9/30/97 $35,059 $37,392
10/31/97 $33,873 $36,143
11/30/97 $35,406 $37,816
12/31/97 $35,989 $38,467
1/31/98 $36,373 $38,890
2/28/98 $38,974 $41,694
3/31/98 $40,945 $43,828
4/30/98 $41,341 $44,276
5/31/98 $40,611 $43,514
6/30/98 $42,261 $45,281
7/31/98 $41,796 $44,801
8/31/98 $35,749 $38,327
9/30/98 $38,024 $40,784
10/31/98 $41,063 $44,099
11/30/98 $43,540 $46,772
12/31/98 $46,031 $49,466
1/31/99 $47,925 $51,548
2/28/99 $46,512 $49,940
3/31/99 $48,257 $51,938
4/30/99 $50,112 $53,948
5/31/99 $48,920 $52,675
6/30/99 $51,599 $55,540
7/31/99 $49,983 $53,806
8/31/99 $49,731 $53,540
9/30/99 $48,373 $52,072
10/31/99 $51,433 $55,368
11/30/99 $52,441 $56,492
12/31/99 $55,473 $59,820
1/31/00 $52,680 $56,817
2/29/00 $51,691 $55,743
3/31/00 $56,716 $61,195
4/30/00 $54,988 $59,353
5/31/00 $53,847 $58,136
6/30/00 $55,154 $59,572
7/31/00 $54,319 $58,643
8/31/00 $57,660 $62,284
9/30/00 $54,599 $58,996
</TABLE>
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(1) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
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 Class O shares of the Wells Fargo Equity Index Fund for
periods prior to November 8, 1999, reflects performance of the Class O shares of
the Stagecoach Equity Index 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) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio holdings are subject to change.
(5) The chart compares the performance of the Wells Fargo Equity Index Fund
Class O shares since inception with the S&P 500 Index. The chart assumes a
hypothetical investment of $10,000 in Class O shares and reflects all operating
expenses.
3
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
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OTC GROWTH FUND
INVESTMENT OBJECTIVE
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The OTC Growth Fund (the Fund) seeks long-term capital appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Golden Capital Management
FUND MANAGERS
Greg W. Golden, CFA
Jeff C. Moser, CFA
INCEPTION DATE
08/03/00
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class O shares returned 0.80%(1) from the Fund's inception on
August 3, 2000, through September 30, 2000, outperforming its benchmark, the
Nasdaq 100 Index(2), which returned (1.46)% for the same period. The Fund's
Class O shares distributed neither dividends nor capital gains during the
period. Please keep in mind that past performance is no guarantee of future
results.
The Fund's relatively flat return since inception masks the tremendous
volatility investors experienced in the market during August and September
2000. That volatility was sparked by high-profile pre-announcements from
several major corporations, the euro's declining value versus the U.S. dollar
(which makes U.S. goods less competitive overseas), higher crude oil prices
and the delayed impact of rising interest rates. In the past, the third
quarter has commonly been a volatile period, given that seasonal factors tend
to create more uncertainty about the earnings outlook for many companies.
During the reporting period, the Fund's top performers included Ciena
Corporation, a maker of optical networking equipment. Ciena Corporation stock
gained over 73% since the Fund's inception. Other strong performers were in
the technology (Mercury Interactive) and health care (Geltex Pharmaceuticals)
sectors.
STRATEGIC OUTLOOK
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Historically, the fourth calendar quarter tends to be the strongest
three-month period of the year. Provided that the U.S. Federal Reserve Board
begins to shift toward lowering interest rates and investors appreciate the
generally positive outlook for the market, the Fund managers look to the
fourth quarter to be strong. The Fund's managers are expecting 2001 earnings
growth rates of around 11% for the S&P 500 Index(3) and nearly 35% for the
technology sector. The Fund managers believe that, should these positive
trends prevail, stocks should propel through the fourth quarter and into the
new year.
4
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF SEPTEMBER 30, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
-------------------------
1-Month* Since Inception
<S> <C> <C>
CLASS O (12.73) 0.80
BENCHMARK
THE NASDAQ 100 INDEX (12.43) (1.46)(4)
</TABLE>
* RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CHARACTERISTICS
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PRICE TO EARNINGS RATIO
(TRAILING 12 MO.) 59.5X
PRICE TO BOOK RATIO 9.8X
MEDIAN MARKET CAP. ($B) 6.4
NUMBER OF HOLDINGS 79
PORTFOLIO TURNOVER 9%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(5)
(AS OF SEPTEMBER 30, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS INCORPORATED 6.15%
INTEL CORPORATION 4.71%
SUN MICROSYSTEMS INCORPORATED 4.50%
ORACLE CORPORATION 4.19%
NASDAQ-100 SHARES 3.76%
JDS UNIPHASE CORPORATION 3.31%
MICROSOFT CORPORATION 3.10%
VERITAS SOFTWARE CORPORATION 2.78%
NETWORK APPLIANCE INCORPORATED 2.54%
SIEBEL SYSTEMS INCORPORATED 2.42%
</TABLE>
SECTOR DISTRIBUTION(6) (AS OF SEPTEMBER 30, 2000)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 80%
Health Care 6%
Consumer Cyclical 5%
Commercial Services 4%
Basic Materials 1%
Industrials 1%
Transportation 1%
Financial 1%
Cash 1%
</TABLE>
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(1) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's Advisor has committed through January 30, 2002,
to waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund. Actual reductions of operating
expenses can increase total return to shareholders. Without these reductions,
the Fund's returns would have been lower.
(2) The Nasdaq 100 Index is an unmanaged group of the 100 largest companies
listed on the Nasdaq Composite Index. The list is updated quarterly, and
companies on this index are typically representative of technology-related
industries, such as computer hardware and software products, telecommunications,
biotechnology, services and retail/wholesale trade. You cannot invest directly
in an index.
(3) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(4) The published return since the Fund's inception date of 08/03/00.
(5) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(6) Portfolio holdings are subject to change.
5
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.12%
AGRICULTURAL PRODUCTION-CROPS - 0.07%
17,600 NABISCO GROUP HOLDINGS
CORPORATION $ 501,600
------------
AMUSEMENT & RECREATION SERVICES - 0.64%
6,300 HARRAH'S ENTERTAINMENT
INCORPORATED+ 173,250
112,600 WALT DISNEY COMPANY 4,306,950
4,480,200
------------
APPAREL & ACCESSORY STORES - 0.37%
45,900 GAP INCORPORATED 923,738
17,800 KOHL'S CORPORATION+ 1,026,838
23,300 LIMITED INCORPORATED 514,055
7,000 NORDSTROM INCORPORATED 108,938
2,573,569
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.04%
2,900 LIZ CLAIBORNE INCORPORATED 111,650
6,200 V F CORPORATION 153,063
264,713
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.02%
6,900 AUTOZONE INCORPORATED+ 156,543
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
3,200 RYDER SYSTEM INCORPORATED 59,000
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.03%
3,200 CENTEX CORPORATION 102,800
2,600 KAUFMAN & BROAD HOME
CORPORATION 70,038
2,200 PULTE CORPORATION 72,600
245,438
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.10%
125,100 HOME DEPOT INCORPORATED 6,638,118
20,700 LOWE'S COMPANIES INCORPORATED 928,913
8,800 SHERWIN-WILLIAMS COMPANY 188,100
7,755,131
------------
BUSINESS SERVICES - 9.62%
6,500 ADOBE SYSTEMS INCORPORATED 1,009,125
124,700 AMERICA ONLINE INCORPORATED+ 6,702,625
3,100 AUTODESK INCORPORATED 78,663
33,900 AUTOMATIC DATA PROCESSING
INCORPORATED 2,267,063
13,300 BMC SOFTWARE INCORPORATED+ 254,363
10,000 CABLETRON SYSTEMS
INCORPORATED+ 293,750
39,200 CENDANT CORPORATION+ 426,300
7,800 CERIDIAN CORPORATION+ 218,888
10,000 CITRIX SYSTEMS INCORPORATED+ 200,625
31,900 COMPUTER ASSOCIATES
INTERNATIONAL INCORPORATED 803,481
</TABLE>
6
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
9,100 COMPUTER SCIENCES CORPORATION+ $ 675,675
19,700 COMPUWARE CORPORATION+ 164,988
8,300 CONVERGYS CORPORATION+ 322,663
3,900 DELUXE CORPORATION 79,219
6,900 ECOLAB INCORPORATED 248,831
25,200 ELECTRONIC DATA SYSTEMS
CORPORATION 1,045,800
7,600 EQUIFAX INCORPORATED 204,725
21,900 FIRST DATA CORPORATION 855,469
16,100 IMS HEALTH INCORPORATED 334,075
16,600 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 565,438
15,300 MCKESSON HBOC INCORPORATED 467,606
4,300 MERCURY INTERACTIVE
CORPORATION+ 674,025
284,300 MICROSOFT CORPORATION+ 17,129,075
5,200 NCR CORPORATION+ 196,625
17,500 NOVELL INCORPORATED+ 173,906
9,600 OMNICOM GROUP INCORPORATED 700,200
152,100 ORACLE CORPORATION+ 11,977,875
14,700 PARAMETRIC TECHNOLOGY COMPANY+ 160,780
15,100 PEOPLESOFT INCORPORATED+ 421,857
6,400 SAPIENT CORPORATION+ 260,400
22,500 SIEBEL SYSTEMS INCORPORATED+ 2,504,530
85,700 SUN MICROSYSTEMS INCORPORATED+ 10,005,475
16,900 UNISYS CORPORATION+ 190,125
21,700 VERITAS SOFTWARE CORPORATION+ 3,081,400
29,700 YAHOO! INCORPORATED+ 2,702,700
4,000 YOUNG & RUBICAM INCORPORATED 198,000
67,596,345
------------
CHEMICALS & ALLIED PRODUCTS - 11.29%
83,700 ABBOTT LABORATORIES 3,980,981
12,400 AIR PRODUCTS AND CHEMICALS
INCORPORATED 446,400
3,000 ALBERTO CULVER COMPANY 86,438
6,200 ALZA CORPORATION+ 536,300
70,400 AMERICAN HOME PRODUCTS
CORPORATION 3,982,000
55,600 AMGEN INCORPORATED+ 3,882,444
12,800 AVON PRODUCTS INCORPORATED 523,200
8,000 BIOGEN INCORPORATED+ 488,000
106,200 BRISTOL-MYERS SQUIBB COMPANY 6,066,675
12,700 CLOROX COMPANY 502,444
31,000 COLGATE-PALMOLIVE COMPANY 1,463,200
36,600 DOW CHEMICAL COMPANY 912,713
56,300 E I DU PONT DE NEMOURS &
COMPANY 2,332,931
4,100 EASTMAN CHEMICAL COMPANY 151,444
61,000 ELI LILLY & COMPANY 4,948,625
1,600 FMC CORPORATION+ 107,300
56,900 GILLETTE COMPANY 1,756,788
2,800 GREAT LAKES CHEMICAL
CORPORATION 82,075
5,400 INTERNATIONAL FLAVORS &
FRAGRANCES INCORPORATED 98,550
</TABLE>
7
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
75,100 JOHNSON & JOHNSON $ 7,054,706
11,300 MEDIMMUNE INCORPORATED+ 872,925
124,300 MERCK & COMPANY INCORPORATED 9,252,580
341,100 PFIZER INCORPORATED 15,328,180
70,100 PHARMACIA CORPORATION 4,219,144
9,400 PPG INDUSTRIES INCORPORATED 373,063
8,500 PRAXAIR INCORPORATED 317,688
70,700 PROCTER & GAMBLE COMPANY 4,736,900
11,700 ROHM & HAAS COMPANY 340,031
79,100 SCHERING-PLOUGH CORPORATION 3,678,150
4,400 SIGMA ALDRICH 145,200
7,300 UNION CARBIDE CORPORATION 275,575
3,600 W R GRACE & COMPANY+ 24,750
5,500 WATSON PHARMACEUTICALS
INCORPORATED+ 356,813
79,324,213
------------
COMMUNICATIONS - 6.80%
38,100 ADC TELECOMMUNICATIONS
INCORPORATED+ 1,024,533
17,000 ALLTEL CORPORATION 887,188
202,900 AT&T CORPORATION 5,960,188
101,200 BELLSOUTH CORPORATION 4,073,300
7,600 CENTURYTEL INCORPORATED 207,100
31,600 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 1,785,400
48,900 COMCAST CORPORATION CLASS A+ 2,001,844
47,600 GLOBAL CROSSING LIMITED+ 1,475,600
41,100 NEXTEL COMMUNICATIONS
INCORPORATED+ 1,921,425
89,700 QWEST COMMUNICATIONS
INTERNATIONAL INCORPORATED+ 4,311,207
183,100 SBC COMMUNICATIONS
INCORPORATED 9,155,000
47,800 SPRINT CORPORATION (FON GROUP) 1,401,138
50,100 SPRINT CORPORATION (PCS
GROUP)+ 1,756,630
146,800 VERIZON COMMUNICATIONS 7,110,625
155,200 WORLDCOM INCORPORATED+ 4,714,200
47,785,378
------------
DOMESTIC DEPOSITORY INSTITUTIONS - 7.20%
20,400 AMSOUTH BANCORP 255,000
88,700 BANK OF AMERICA CORPORATION+ 4,645,663
39,900 BANK OF NEW YORK COMPANY
INCORPORATED 2,236,894
62,400 BANK ONE CORPORATION 2,410,200
21,600 BB&T CORPORATION 650,702
11,300 CHARTER ONE FINANCIAL
INCORPORATED 275,438
70,700 CHASE MANHATTAN CORPORATION 3,265,456
243,000 CITIGROUP INCORPORATED 13,137,188
8,500 COMERICA INCORPORATED 496,719
25,100 FIFTH THIRD BANCORP 1,352,263
53,200 FIRST UNION CORPORATION 1,712,375
51,800 FIRSTAR CORPORATION 1,159,025
48,800 FLEETBOSTON FINANCIAL
CORPORATION 1,903,200
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DOMESTIC DEPOSITORY INSTITUTIONS (continued)
8,500 GOLDEN WEST FINANCIAL
CORPORATION $ 455,813
13,600 HUNTINGTON BANCSHARES
INCORPORATED 199,750
8,600 J P MORGAN & COMPANY
INCORPORATED 1,405,025
23,300 KEYCORP 589,780
26,400 MELLON FINANCIAL CORPORATION 1,224,300
32,800 NATIONAL CITY CORPORATION 725,700
12,000 NORTHERN TRUST CORPORATION 1,066,500
7,400 OLD KENT FINANCIAL CORPORATION 214,138
15,600 PNC FINANCIAL SERVICES GROUP 1,014,000
11,800 REGIONS FINANCIAL CORPORATION 267,713
9,100 SOUTHTRUST CORPORATION 286,080
8,700 STATE STREET CORPORATION 1,131,000
9,400 SUMMIT BANCORP 324,300
16,100 SUNTRUST BANKS INCORPORATED 801,980
15,300 SYNOVUS FINANCIAL CORPORATION 324,169
40,300 US BANCORP 916,825
7,300 UNION PLANTERS CORPORATION 241,356
11,000 WACHOVIA CORPORATION 623,563
29,100 WASHINGTON MUTUAL INCORPORATED 1,158,544
88,900 WELLS FARGO & COMPANY** 4,083,844
50,554,503
------------
EATING & DRINKING PLACES - 0.43%
6,600 DARDEN RESTAURANTS
INCORPORATED 137,363
71,400 MCDONALD'S CORPORATION 2,155,388
10,100 STARBUCKS CORPORATION+ 404,630
7,900 TRICON GLOBAL RESTAURANTS
INCORPORATED+ 241,938
6,100 WENDY'S INTERNATIONAL
INCORPORATED 122,381
3,061,700
------------
ELECTRIC, GAS & SANITARY SERVICES - 2.65%
24,700 AES CORPORATION+ 1,691,950
10,600 ALLIED WASTE INDUSTRIES
INCORPORATED+ 97,388
7,400 AMEREN CORPORATION 309,875
17,400 AMERICAN ELECTRIC POWER
COMPANY INCORPORATED 680,775
8,600 CINERGY CORPORATION 284,337
5,900 CMS ENERGY CORPORATION 158,930
8,600 CP&L ENERGY INCORPORATED 358,513
4,300 COLUMBIA ENERGY GROUP 305,300
11,500 CONSOLIDATED EDISON
INCORPORATED 392,438
8,100 CONSTELLATION ENERGY GROUP 402,975
12,900 DOMINION RESOURCE INCORPORATED 749,006
7,700 DTE ENERGY COMPANY 294,525
19,900 DUKE ENERGY CORPORATION 1,706,425
1,500 EASTERN ENTERPRISES 95,719
17,600 EDISON INTERNATIONAL 339,900
12,500 EL PASO ENERGY CORPORATION 770,313
12,000 ENTERGY CORPORATION 447,000
</TABLE>
9
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
12,400 FIRSTENERGY CORPORATION $ 334,025
5,300 FLORIDA PROGRESS CORPORATION 280,569
9,600 FPL GROUP INCORPORATED 631,200
6,600 GPU INCORPORATED 214,088
7,300 KEYSPAN CORPORATION 292,913
8,700 NIAGARA MOHAWK HOLDINGS
INCORPORATED+ 137,025
2,500 NICOR INCORPORATED 90,469
1,600 ONEOK INCORPORATED 63,600
9,200 PECO ENERGY COMPANY 557,175
1,900 PEOPLE'S ENERGY CORPORATION 63,413
20,800 PG&E CORPORATION 503,100
4,600 PINNACLE WEST CAPITAL
CORPORATION 234,025
7,800 PPL CORPORATION 325,650
11,600 PUBLIC SERVICE ENTERPRISE
GROUP INCORPORATED 518,375
15,900 RELIANT ENERGY INCORPORATED 739,350
11,000 SEMPRA ENERGY 228,937
35,000 SOUTHERN COMPANY 1,135,313
14,300 TEXAS UTILITIES COMPANY 566,637
9,500 UNICOM CORPORATION 533,780
33,600 WASTE MANAGEMENT INCORPORATED 585,900
23,900 WILLIAMS COMPANIES
INCORPORATED 1,009,775
18,300 XCEL ENERGY INCORPORATED 503,250
18,633,938
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 13.92%
5,400 ADAPTEC INCORPORATED+ 108,000
16,800 ADVANCED MICRO DEVICES
INCORPORATED+ 396,900
21,600 ALTERA CORPORATION+ 1,031,400
10,500 AMERICAN POWER CONVERSION
CORPORATION+ 201,468
19,200 ANALOG DEVICES INCORPORATED+ 1,585,200
4,400 ANDREW CORPORATION+ 115,225
12,000 BROADCOM CORPORATION+ 2,925,000
12,300 CONEXANT SYSTEMS INCORPORATED+ 515,062
5,000 COOPER INDUSTRIES INCORPORATED 176,250
3,900 EATON CORPORATION 240,337
23,100 EMERSON ELECTRIC COMPANY 1,547,700
535,100 GENERAL ELECTRIC COMPANY 30,868,581
362,700 INTEL CORPORATION 15,097,387
50,600 JDS UNIPHASE CORPORATION+ 4,791,187
16,800 LINEAR TECHNOLOGY CORPORATION 1,087,800
16,800 LSI LOGIC CORPORATION+ 491,400
180,400 LUCENT TECHNOLOGIES
INCORPORATED 5,513,475
15,300 MAXIM INTEGRATED PRODUCTS
INCORPORATED+ 1,230,693
4,200 MAYTAG CORPORATION 130,463
30,500 MICRON TECHNOLOGY
INCORPORATED+ 1,403,000
10,600 MOLEX INCORPORATED 577,038
117,800 MOTOROLA INCORPORATED 3,327,850
9,600 NATIONAL SEMICONDUCTOR
CORPORATION+ 386,400
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
2,200 NATIONAL SERVICE INDUSTRIES $ 43,038
16,900 NETWORK APPLIANCE
INCORPORATED+ 2,152,638
161,400 NORTEL NETWORKS CORPORATION 9,613,388
7,100 NOVELLUS SYSTEMS INCORPORATED+ 330,594
40,300 QUALCOMM INCORPORATED+ 2,871,375
18,400 RAYTHEON COMPANY CLASS B 523,250
8,200 SANMINA CORPORATION+ 767,725
8,600 SCIENTIFIC-ATLANTA
INCORPORATED 547,175
22,200 TELLABS INCORPORATED+ 1,060,050
93,400 TEXAS INSTRUMENTS INCORPORATED 4,407,313
3,100 THOMAS & BETTS CORPORATION 54,056
3,900 WHIRLPOOL CORPORATION 151,613
17,800 XILINK INCORPORATED+ 1,524,125
97,794,156
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.43%
8,800 DUN & BRADSTREET CORPORATION 303,050
4,100 FLUOR CORPORATION 123,000
24,100 HALLIBURTON COMPANY 1,179,394
20,100 PAYCHEX INCORPORATED 1,055,250
2,700 PERKINELMER INCORPORATED 281,813
6,200 QUINTILES TRANSNATIONAL
CORPORATION+ 98,812
3,041,319
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
0.39%
1,600 BALL CORPORATION 50,700
3,300 CRANE COMPANY 75,487
6,800 CROWN CORK & SEAL COMPANY
INCORPORATED 72,675
8,500 FORTUNE BRANDS INCORPORATED 225,250
16,300 ILLINOIS TOOL WORKS
INCORPORATED 910,763
23,100 LOCKHEED MARTIN CORPORATION 761,375
24,700 MASCO CORPORATION 460,038
3,200 SNAP-ON INCORPORATED 75,400
4,700 STANLEY WORKS 108,394
2,740,082
------------
FOOD & KINDRED PRODUCTS - 3.38%
2,000 ADOLPH COORS COMPANY 126,375
49,000 ANHEUSER-BUSCH COMPANIES
INCORPORATED 2,073,313
34,200 ARCHER DANIELS MIDLAND COMPANY 294,975
15,000 BESTFOODS INCORPORATED 1,091,250
3,700 BROWN-FORMAN CORPORATION 202,575
22,800 CAMPBELL SOUP COMPANY 589,950
133,800 COCA-COLA COMPANY 7,375,725
22,600 COCA-COLA ENTERPRISES
INCORPORATED 360,187
28,800 CONAGRA FOODS INCORPORATED 577,800
15,400 GENERAL MILLS INCORPORATED 546,700
18,800 H J HEINZ COMPANY 696,775
</TABLE>
11
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FOOD & KINDRED PRODUCTS (continued)
5,800 HERCULES INCORPORATED $ 81,925
7,400 HERSHEY FOODS CORPORATION 400,525
21,900 KELLOGG COMPANY 529,706
78,000 PEPSICO INCORPORATED 3,588,000
7,200 QUAKER OATS COMPANY 569,700
16,600 RALSTON PURINA GROUP 393,213
47,000 SARA LEE CORPORATION 954,687
23,600 SEAGRAM COMPANY LIMITED 1,355,525
30,900 UNILEVER NV ADR 1,490,925
6,100 WM WRIGLEY JR COMPANY 456,738
23,756,569
------------
FOOD STORES - 0.23%
22,900 ALBERTSON'S INCORPORATED 480,900
44,600 KROGER COMPANY+ 1,006,288
7,600 WINN-DIXIE STORES INCORPORATED 109,250
1,596,438
------------
FURNITURE & FIXTURES - 0.02%
10,600 LEGGETT & PLATT 167,612
------------
GENERAL MERCHANDISE STORES - 2.17%
6,000 CONSOLIDATED STORES
CORPORATION+ 81,000
5,100 DILLARDS INCORPORATED 54,187
17,800 DOLLAR GENERAL CORPORATION 298,150
11,200 FEDERATED DEPARTMENT STORES
INCORPORATED+ 292,600
14,100 J C PENNEY COMPANY
INCORPORATED 166,556
25,900 KMART CORPORATION+ 155,400
17,200 MAY DEPARTMENT STORES COMPANY 352,600
18,500 SEARS ROEBUCK & COMPANY 599,770
49,200 TARGET CORPORATION 1,260,750
15,800 TJX COMPANIES INCORPORATED 355,500
241,300 WAL-MART STORES INCORPORATED 11,612,563
15,229,076
------------
HEALTH SERVICES - 0.28%
30,100 HCA - THE HEALTHCARE COMPANY 1,117,463
20,800 HEALTHSOUTH CORPORATION+ 169,000
5,500 MANOR CARE INCORPORATED+ 86,281
17,000 TENET HEALTHCARE CORPORATION 618,375
1,991,119
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS - 0.01%
3,300 MCDERMOTT INTERNATIONAL
INCORPORATED 36,300
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.23%
11,200 BEST BUY COMPANY INCORPORATED+ 712,600
11,100 CIRCUIT CITY STORES 255,300
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (continued)
10,000 RADIOSHACK CORPORATION $ 646,250
1,614,150
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.10%
19,900 HILTON HOTELS CORPORATION 230,094
13,000 MARRIOTT INTERNATIONAL
CLASS A 473,687
703,781
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.70%
17,600 APPLE COMPUTER INCORPORATED+ 453,200
43,800 APPLIED MATERIALS
INCORPORATED+ 2,597,888
17,900 BAKER HUGHES INCORPORATED 664,538
4,500 BLACK & DECKER CORPORATION 153,844
1,200 BRIGGS & STRATTON CORPORATION 45,375
18,700 CATERPILLAR INCORPORATED 631,125
383,400 CISCO SYSTEMS INCORPORATED+ 21,182,850
91,800 COMPAQ COMPUTER CORPORATION 2,531,844
8,400 COMVERSE TECHNOLOGY
INCORPORATED+ 907,200
2,200 CUMMINS ENGINE COMPANY
INCORPORATED 65,863
12,700 DEERE & COMPANY 422,275
139,800 DELL COMPUTER CORPORATION+ 4,307,588
11,000 DOVER CORPORATION 516,313
117,800 EMC CORPORATION+ 11,676,925
17,400 GATEWAY INCORPORATED+ 813,450
53,900 HEWLETT-PACKARD COMPANY 5,228,300
95,100 IBM CORPORATION 10,698,750
8,700 INGERSOLL-RAND COMPANY 294,712
6,900 LEXMARK INTERNATIONAL
INCORPORATED+ 258,750
6,700 PALL CORPORATION 133,580
30,500 PALM INCORPORATED+ 1,614,594
13,800 PITNEY BOWES INCORPORATED 544,238
12,400 SEAGATE TECHNOLOGY
INCORPORATED+ 855,600
32,500 SOLECTRON CORPORATION+ 1,499,062
3,300 TIMKEN COMPANY 45,168
68,143,032
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.37%
13,800 AON CORPORATION 541,650
9,000 HUMANA INCORPORATED+ 96,750
14,700 MARSH & MCLENNAN COMPANIES
INCORPORATED 1,951,425
2,589,825
------------
INSURANCE CARRIERS - 3.36%
7,600 AETNA INCORPORATED 441,275
14,300 AFLAC INCORPORATED 916,094
39,700 ALLSTATE CORPORATION 1,379,575
13,600 AMERICAN GENERAL CORPORATION 1,060,800
125,000 AMERICAN INTERNATIONAL GROUP
INCORPORATED 11,960,938
</TABLE>
13
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS (continued)
9,400 CHUBB CORPORATION $ 743,775
8,500 CIGNA CORPORATION 887,400
8,700 CINCINNATI FINANCIAL
CORPORATION 308,850
17,600 CONSECO INCORPORATED 134,200
12,100 HARTFORD FINANCIAL SERVICES
GROUP 882,544
5,600 JEFFERSON-PILOT CORPORATION 380,100
10,300 LINCOLN NATIONAL CORPORATION 495,688
5,300 LOEWS CORPORATION 441,888
5,300 MBIA INCORPORATED 376,963
5,700 MGIC INVESTMENT CORPORATION 348,413
4,000 PROGRESSIVE CORPORATION 327,500
6,900 SAFECO CORPORATION 188,025
12,100 ST PAUL COMPANIES INCORPORATED 596,680
6,900 TORCHMARK CORPORATION 191,905
8,700 UNITEDHEALTH GROUP
INCORPORATED 859,125
13,000 UNUMPROVIDENT CORP 354,250
3,400 WELLPOINT HEALTH NETWORKS
INCORPORATED+ 326,400
23,602,388
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
5,600 LOUISIANA-PACIFIC CORPORATION 51,450
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 1.99%
24,500 AGILENT TECHNOLOGIES
INCORPORATED+ 1,198,969
7,100 ALLERGAN INCORPORATED 599,506
2,900 BAUSCH & LOMB INCORPORATED 112,919
15,800 BAXTER INTERNATIONAL
INCORPORATED 1,261,038
13,700 BECTON DICKINSON & COMPANY 362,193
9,600 BIOMET INCORPORATED 336,000
22,000 BOSTON SCIENTIFIC CORPORATION+ 361,625
2,700 C R BARD INCORPORATED 114,075
7,700 DANAHER CORPORATION 383,075
16,600 EASTMAN KODAK COMPANY 678,525
16,600 GUIDANT CORPORATION+ 1,173,413
4,600 JOHNSON CONTROLS INCORPORATED 244,663
10,000 KLA-TENCOR CORPORATION+ 411,875
3,600 MALLINCKRODT INCORPORATED 164,250
64,700 MEDTRONIC INCORPORATED 3,352,269
2,500 MILLIPORE CORPORATION 121,093
6,000 PARKER-HANNIFIN CORPORATION 202,500
11,300 PE CORPORATION - PE BIOSYSTEMS
GROUP 1,316,450
2,400 POLAROID CORPORATION 32,250
4,500 ST JUDE MEDICAL INCORPORATED+ 229,500
2,600 TEKTRONIX INCORPORATED 199,712
9,400 TERADYNE INCORPORATED+ 329,000
9,400 THERMO ELECTRON CORPORATION+ 244,400
36,000 XEROX CORPORATION 542,250
13,971,550
------------
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
METAL MINING - 0.16%
21,400 BARRICK GOLD CORPORATION $ 326,350
8,300 FREEPORT MCMORAN INCORPORATED
CLASS B+ 73,144
14,200 HOMESTAKE MINING COMPANY+ 73,662
9,800 INCO LIMITED+ 158,025
9,100 NEWMONT MINING CORPORATION 154,700
4,300 PHELPS DODGE CORPORATION 179,525
17,700 PLACER DOME INCORPORATED 167,044
1,132,450
------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.03%
5,500 VULCAN MATERIALS COMPANY 221,030
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.77%
2,200 ARMSTRONG HOLDINGS
INCORPORATED 26,262
9,300 HASBRO INCORPORATED 106,369
23,000 MATTEL INCORPORATED 257,313
7,800 TIFFANY & COMPANY 300,787
91,000 TYCO INTERNATIONAL LIMITED 4,720,625
5,411,356
------------
MISCELLANEOUS RETAIL - 0.71%
15,300 BED BATH & BEYOND
INCORPORATED+ 373,177
24,100 COSTCO WHOLESALE CORPORATION+ 841,994
21,100 CVS CORPORATION 977,194
2,000 LONGS DRUG STORES INCORPORATED 38,250
16,500 OFFICE DEPOT INCORPORATED+ 128,906
24,500 STAPLES INCORPORATED+ 347,594
11,700 TOYS R US INCORPORATED+ 190,125
54,600 WALGREEN COMPANY 2,071,387
4,968,627
------------
MOTION PICTURES - 0.80%
71,500 TIME WARNER INCORPORATED 5,594,875
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.51%
72,000 AMERICAN EXPRESS COMPANY 4,374,000
39,400 ASSOCIATES FIRST CAPITAL
CORPORATION 1,497,200
10,600 CAPITAL ONE FINANCIAL
CORPORATION 742,662
14,200 CIT GROUP INCORPORATED 248,500
6,200 COUNTRYWIDE CREDIT INDUSTRIES
INCORPORATED 234,050
37,600 FEDERAL HOME LOAN MORTGAGE
CORPORATION 2,032,750
54,400 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 3,889,600
25,500 HOUSEHOLD INTERNATIONAL
INCORPORATED 1,443,938
46,000 MBNA CORPORATION 1,771,000
7,700 PROVIDIAN FINANCIAL
CORPORATION 977,900
8,400 USA EDUCATION INCORPORATED 404,775
17,616,375
------------
</TABLE>
15
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
OIL & GAS EXTRACTION - 1.45%
13,100 ANADARKO PETROLEUM CORPORATION $ 870,626
6,600 APACHE CORPORATION 390,225
11,600 BURLINGTON RESOURCES
INCORPORATED 427,025
6,900 DEVON ENERGY CORPORATION 415,035
39,900 ENRON CORPORATION 3,496,238
5,100 KERR-MCGEE CORPORATION 337,875
19,900 OCCIDENTAL PETROLEUM
CORPORATION 434,069
5,100 ROWAN COMPANIES INCORPORATED+ 147,900
30,800 SCHLUMBERGER LIMITED 2,535,225
11,400 TRANSOCEAN SEDCO FOREX
INCORPORATED+ 668,325
16,900 USX-MARATHON GROUP
INCORPORATED 479,537
10,202,080
------------
PAPER & ALLIED PRODUCTS - 0.93%
6,000 AVERY DENNISON CORPORATION 278,250
2,900 BEMIS COMPANY INCORPORATED 93,163
3,100 BOISE CASCADE CORPORATION 82,343
11,100 FORT JAMES CORPORATION 339,243
9,200 GEORGIA-PACIFIC GROUP 216,200
26,100 INTERNATIONAL PAPER COMPANY 748,743
29,100 KIMBERLY-CLARK CORPORATION 1,624,144
5,500 MEAD CORPORATION 128,563
21,400 MINNESOTA MINING AND
MANUFACTURING COMPANY 1,950,075
9,200 PACTIV CORPORATION+ 102,925
1,500 POTLATCH CORPORATION 47,438
2,800 TEMPLE-INLAND INCORPORATED 106,050
5,400 WESTVACO CORPORATION 144,113
11,900 WEYERHAEUSER COMPANY 480,463
5,900 WILLAMETTE INDUSTRIES
INCORPORATED 165,200
6,506,913
------------
PERSONAL SERVICES - 0.03%
5,300 H&R BLOCK INCORPORATED 196,431
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.59%
4,900 AMERADA HESS CORPORATION 327,994
3,800 ASHLAND INCORPORATED 128,013
35,300 CHEVRON CORPORATION 3,009,325
11,600 COASTAL CORPORATION 859,850
33,600 CONOCO INCORPORATED CLASS B 905,100
188,200 EXXON MOBIL CORPORATION 16,773,325
13,800 PHILLIPS PETROLEUM COMPANY 865,950
115,800 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES ADR 6,940,763
4,700 SUNOCO INCORPORATED 126,606
29,800 TEXACO INCORPORATED 1,564,500
7,800 TOSCO CORPORATION 243,263
13,100 UNOCAL CORPORATION 464,230
32,208,919
------------
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES - 0.28%
11,800 ALCAN ALUMINUM LIMITED $ 341,463
46,800 ALCOA INCORPORATED 1,184,625
4,400 ALLEGHENY TECHNOLOGIES
INCORPORATED 79,750
7,100 BETHLEHEM STEEL CORPORATION+ 21,300
6,900 ENGELHARD CORPORATION 112,125
4,400 NUCOR CORPORATION 132,550
4,800 USX-US STEEL GROUP
INCORPORATED 72,900
4,600 WORTHINGTON INDUSTRIES
INCORPORATED 43,125
1,987,838
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.19%
3,500 AMERICAN GREETINGS CORPORATION 61,250
4,700 DOW JONES & COMPANY
INCORPORATED 284,350
14,200 GANNETT COMPANY INCORPORATED 752,600
4,000 HARCOURT GENERAL INCORPORATED 236,000
4,100 KNIGHT-RIDDER INCORPORATED 208,330
10,500 MCGRAW-HILL COMPANIES
INCORPORATED 667,406
2,700 MEREDITH CORPORATION 79,650
9,000 NEW YORK TIMES COMPANY 353,813
6,600 R R DONNELLEY & SONS COMPANY 162,113
16,700 TRIBUNE COMPANY 728,538
81,900 VIACOM INCORPORATED CLASS B+ 4,791,150
8,325,200
------------
RAILROAD TRANSPORTATION - 0.22%
21,800 BURLINGTON NORTHERN SANTA FE
CORPORATION 470,063
11,800 CSX CORPORATION 257,387
20,700 NORFOLK SOUTHERN CORPORATION 302,738
13,400 UNION PACIFIC CORPORATION 520,925
1,551,113
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.20%
3,900 COOPER TIRE & RUBBER COMPANY 39,243
8,400 GOODYEAR TIRE & RUBBER COMPANY 151,200
14,400 NEWELL RUBBERMAID INCORPORATED 328,500
14,600 NIKE INCORPORATED CLASS B 584,913
3,100 REEBOK INTERNATIONAL LIMITED+ 58,319
4,500 SEALED AIR CORPORATION+ 203,625
3,100 TUPPERWARE CORPORATION 55,800
1,421,600
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.05%
5,800 BEAR STEARNS COMPANIES
INCORPORATED 365,400
74,600 CHARLES SCHWAB CORPORATION 2,648,300
13,200 FRANKLIN RESOURCES
INCORPORATED 586,476
6,600 LEHMAN BROTHERS HOLDING
INCORPORATED 975,150
43,400 MERRILL LYNCH & COMPANY
INCORPORATED 2,864,400
60,800 MORGAN STANLEY DEAN WITTER &
COMPANY 5,559,400
</TABLE>
17
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
8,000 PAINE WEBBER GROUP
INCORPORATED $ 545,000
12,100 STILWELL FINANCIAL
INCORPORATED+ 526,350
6,600 T ROWE PRICE ASSOCIATES 309,788
14,380,264
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.68%
15,901 CORNING INCORPORATED 4,722,463
7,900 OWENS-ILLINOIS INCORPORATED+ 73,075
4,795,538
------------
TEXTILE MILL PRODUCTS - 0.01%
1,800 RUSSELL CORPORATION 28,575
1,000 SPRINGS INDUSTRIES
INCORPORATED CLASS A 28,188
56,763
------------
TOBACCO PRODUCTS - 0.54%
121,700 PHILIP MORRIS COMPANIES
INCORPORATED 3,582,544
8,800 UST INCORPORATED 201,300
3,783,844
------------
TRANSPORTATION BY AIR - 0.29%
8,100 AMR CORPORATION+ 264,769
6,600 DELTA AIRLINES INCORPORATED 292,875
15,400 FEDEX CORPORATION+ 682,836
26,900 SOUTHWEST AIRLINES COMPANY 652,325
3,600 US AIRWAYS GROUP INCORPORATED+ 109,575
2,002,380
------------
TRANSPORTATION EQUIPMENT - 2.12%
5,500 B F GOODRICH COMPANY 215,531
48,500 BOEING COMPANY 3,055,500
4,700 BRUNSWICK CORPORATION 85,775
8,100 DANA CORPORATION 174,150
30,300 DELPHI AUTOMOTIVE SYSTEMS
CORPORATION 458,287
102,300 FORD MOTOR COMPANY 2,589,469
10,700 GENERAL DYNAMICS CORPORATION 672,094
29,000 GENERAL MOTORS CORPORATION 1,885,000
16,300 HARLEY-DAVIDSON INCORPORATED 780,362
43,300 HONEYWELL INTERNATIONAL
INCORPORATED 1,542,562
4,700 ITT INDUSTRIES INCORPORATED 152,456
3,200 NAVISTAR INTERNATIONAL
CORPORATION+ 95,800
3,900 NORTHROP GRUMMAN CORPORATION 354,413
4,100 PACCAR INCORPORATED 151,956
10,000 ROCKWELL INTERNATIONAL
CORPORATION 302,500
7,700 TEXTRON INCORPORATED 355,163
6,700 TRW INCORPORATED 272,188
25,300 UNITED TECHNOLOGIES
CORPORATION 1,752,025
14,895,231
------------
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TRANSPORTATION SERVICES - 0.03%
7,000 SABRE HOLDINGS CORPORATION $ 202,563
------------
WATER TRANSPORTATION - 0.11%
31,800 CARNIVAL CORPORATION 783,075
------------
WHOLESALE TRADE-DURABLE GOODS - 0.06%
9,500 GENUINE PARTS COMPANY 181,094
7,100 VISTEON CORPORATION 107,387
5,100 W W GRAINGER INCORPORATED 134,194
422,675
------------
WHOLESALE TRADE-NONDURABLE GOODS - 0.50%
15,000 CARDINAL HEALTH INCORPORATED 1,322,812
26,900 SAFEWAY INCORPORATED+ 1,255,894
7,100 SUPERVALU INCORPORATED 106,943
18,000 SYSCO CORPORATION 833,625
3,519,274
------------
682,207,532
TOTAL COMMON STOCK (COST $262,341,610)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITYDATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.93%
TIME DEPOSITS - 2.74%
$19,270,078 CAISSE DES DEPOTS ET
CONSIGNATIONS 6.73% 10/02/00 19,270,078
------------
U.S. TREASURY BILLS - 0.19%
1,385,000 U.S. TREASURY BILLS 5.80[::] 02/01/01 1,356,603
------------
20,626,681
TOTAL SHORT-TERM INSTRUMENTS (COST
$20,627,657)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $282,969,267)* 100.05% $702,834,213
OTHER ASSETS AND LIABILITIES, NET (0.05) (363,366)
------- ------------
TOTAL NET ASSETS 100.00% $702,470,847
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
** SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $1,028,084.
[::] YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $283,230,670 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $446,992,845
GROSS UNREALIZED DEPRECIATION (27,389,302)
-----------
NET UNREALIZED APPRECIATION $419,603,543
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
OTC GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 98.83%
APPAREL & ACCESSORY STORES - 0.37%
3,500 HOT TOPIC INCORPORATED+ $ 105,000
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.45%
5,700 K-SWISS INCORPORATED 128,250
-----------
BUSINESS SERVICES - 33.78%
1,700 ADOBE SYSTEMS INCORPORATED 263,925
5,100 BROADVISION INCORPORATED+ 130,369
2,700 BROOKTROUT INCORPORATED+ 88,930
4,900 CERNER CORPORATION+ 227,544
2,400 CHECK POINT SOFTWARE
TECHNOLOGIES LIMITED+ 378,000
5,700 EARTHWEB INCORPORATED+ 47,916
9,500 FISERV INCORPORATED+ 568,813
3,000 I2 TECHNOLOGIES INCORPORATED+ 561,187
900 INKTOMI CORPORATION+ 102,600
3,400 INTUIT INCORPORATED+ 193,800
1,200 LYCOS INCORPORATED+ 82,519
1,500 MACROMEDIA INCORPORATED+ 121,219
1,800 MERCURY INTERACTIVE
CORPORATION+ 282,150
14,700 MICROSOFT CORPORATION+ 885,675
10,500 NETWORK ASSOCIATES
INCORPORATED+ 237,563
15,200 ORACLE CORPORATION+ 1,197,000
3,600 RATIONAL SOFTWARE CORPORATION+ 249,750
6,200 SIEBEL SYSTEMS INCORPORATED+ 690,138
11,000 SUN MICROSYSTEMS INCORPORATED+ 1,284,250
5,200 SYMANTEC CORPORATION+ 228,800
2,900 VERISIGN INCORPORATED+ 587,430
5,600 VERITAS SOFTWARE CORPORATION+ 795,200
4,800 YAHOO! INCORPORATED+ 436,800
9,641,578
-----------
CHEMICALS & ALLIED PRODUCTS - 3.55%
6,700 GELTEX PHARMACEUTICALS
INCORPORATED+ 313,644
3,200 GENZYME CORPORATION+ 218,200
6,862 KING PHARMACEUTICALS
INCORPORATED+ 229,448
5,900 NOVEN PHARMACEUTICALS
INCORPORATED+ 252,225
1,013,517
-----------
COMMUNICATIONS - 4.32%
9,000 ADC TELECOMMUNICATIONS
INCORPORATED+ 242,015
6,800 ADTRAN INCORPORATED+ 289,319
4,400 CIENA CORPORATION+ 540,375
3,400 LIGHTBRIDGE INCORPORATED+ 39,525
5,000 METROMEDIA FIBER NETWORK
INCORPORATED+ 121,563
1,232,797
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 30.86%
2,700 ALPHA INDUSTRIES INCORPORATED+ 91,969
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 STOCK FUNDS
--------------------------------------------------------------------------------
OTC GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
11,400 ALTERA CORPORATION+ $ 544,350
2,800 APPLIED MICRO CIRCUITS
CORPORATION+ 579,775
9,200 ATMEL CORPORATION+ 139,725
2,800 DSP GROUP INCORPORATED+ 104,650
3,500 INTEGRATED DEVICE TECHNOLOGY
INCORPORATED+ 316,750
32,300 INTEL CORPORATION 1,344,488
10,000 JDS UNIPHASE CORPORATION+ 946,875
6,500 LINEAR TECHNOLOGY CORPORATION 420,875
7,400 MATTSON TECHNOLOGY
INCORPORATED+ 110,075
6,300 MAXIM INTEGRATED PRODUCTS
INCORPORATED+ 506,756
2,500 MICREL INCORPORATED+ 167,500
5,700 NETWORK APPLIANCE
INCORPORATED+ 726,038
3,400 NOVELLUS SYSTEMS INCORPORATED+ 158,312
2,800 PMC-SIERRA INCORPORATED+ 602,700
5,100 POWERWAVE TECHNOLOGIES
INCORPORATED+ 193,640
6,000 SANMINA CORPORATION+ 561,750
2,500 SAWTEK INCORPORATED+ 96,289
1,600 SDL INCORPORATED+ 492,800
6,200 SILICON VALLEY GROUP+ 163,137
6,300 XILINK INCORPORATED+ 539,438
8,807,892
-----------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 1.10%
6,000 PAYCHEX INCORPORATED 315,000
-----------
HEALTH SERVICES - 0.78%
3,100 EXPRESS SCRIPTS INCORPORATED+ 223,975
-----------
HOLDING & OTHER INVESTMENT OFFICES - 3.76%
12,100 NASDAQ 100 SHARES+ 1,073,119
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 12.27%
10,000 APPLE COMPUTER INCORPORATED+ 257,500
6,000 APPLIED MATERIALS
INCORPORATED+ 355,875
4,500 CDW COMPUTER CENTERS
INCORPORATED+ 310,500
31,800 CISCO SYSTEMS INCORPORATED+ 1,756,950
4,600 COGNEX CORPORATION+ 181,413
2,000 COMVERSE TECHNOLOGY
INCORPORATED+ 216,000
5,250 INSIGHT ENTERPRISES
INCORPORATED+ 143,063
1,900 SANDISK CORPORATION+ 126,825
5,700 SILICON STORAGE TECHNOLOGY
INCORPORATED+ 154,968
3,503,094
-----------
INSURANCE CARRIERS - 1.08%
10,000 OXFORD HEALTH PLANS
INCORPORATED+ 307,344
-----------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.18%
8,900 ADVANCED ENERGY INDUSTRIES
INCORPORATED+ 293,700
3,700 CYMER INCORPORATED+ 113,544
</TABLE>
21
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
OTC GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (continued)
6,800 DENTSPLY INTERNATIONAL
INCORPORATED $ 237,575
4,950 MICROCHIP TECHNOLOGY
INCORPORATED+ 163,658
2,300 POLYMEDICA CORPORATION+ 98,613
907,090
-----------
MISCELLANEOUS RETAIL - 2.36%
11,000 BED BATH & BEYOND
INCORPORATED+ 268,297
4,300 DOLLAR TREE STORES
INCORPORATED+ 174,419
5,800 MICHAELS STORES INCORPORATED+ 232,000
674,716
-----------
TRANSPORTATION BY AIR - 0.39%
4,500 NORTHWEST AIRLINES
CORPORATION+ 110,531
-----------
WHOLESALE TRADE-NONDURABLE GOODS - 0.58%
6,200 UNITED STATIONERS
INCORPORATED+ 166,625
-----------
28,210,528
TOTAL COMMON STOCK (COST $28,353,923)
-----------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.24%
REPURCHASE AGREEMENTS - 1.24%
$ 355,991 BANC OF AMERICA NT & SA
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.65% 10/02/00 355,991
-----------
355,991
TOTAL SHORT-TERM INSTRUMENTS (COST
$355,991)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $28,709,914)* 100.07% $28,566,519
OTHER ASSETS AND LIABILITIES, NET (0.07) (21,038)
------- -----------
TOTAL NET ASSETS 100.00% $28,545,481
------- -----------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED DEPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $2,695,979
GROSS UNREALIZED DEPRECIATION (2,839,374)
---------
NET UNREALIZED DEPRECIATION $(143,395)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY OTC
INDEX GROWTH
<S> <C> <C>
-------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE (SEE
COST BELOW)........................ $702,834,213 $28,566,519
CASH................................ 59,600 0
COLLATERAL FOR SECURITIES LOANED.... 78,163,828 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER RECEIVABLES..... 537,536 2,613
RECEIVABLE FOR INVESTMENTS SOLD..... 7,815 0
RECEIVABLE FOR FUND SHARES ISSUED... 590,076 12,569
PREPAID EXPENSES AND OTHER ASSETS... 1,622 0
------------ -----------
TOTAL ASSETS............................ 782,194,690 28,581,701
------------ -----------
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED.... 530,676 0
PAYABLE FOR SECURITIES LOANED....... 78,163,828 0
PAYABLE TO INVESTMENT ADVISOR AND
AFFILIATES......................... 314,033 18,536
PAYABLE TO OTHER RELATED PARTIES.... 178,569 5,989
PAYABLE FOR DAILY VARIATION MARGIN
ON FUTURES CONTRACTS............... 305,475 0
ACCRUED EXPENSES AND OTHER
LIABILITIES........................ 231,262 11,695
------------ -----------
TOTAL LIABILITIES....................... 79,723,843 36,220
------------ -----------
TOTAL NET ASSETS........................ $702,470,847 $28,545,481
------------ -----------
NET ASSETS CONSIST OF:
-------------------------------------------------------------------
PAID-IN CAPITAL..................... $205,645,663 $28,495,365
UNDISTRIBUTED NET INVESTMENT INCOME
(LOSS)............................. 2,463,601 0
UNDISTRIBUTED NET REALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS.............. 75,160,237 193,511
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND
TRANSLATION OF ASSETS AND
LIABILITIES IN FOREIGN
CURRENCIES......................... 419,864,946 (143,395)
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF FUTURES.......... (663,600) 0
------------ -----------
TOTAL NET ASSETS........................ $702,470,847 $28,545,481
------------ -----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
-------------------------------------------------------------------
NET ASSETS - CLASS A.................. $596,082,507 N/A
SHARES OUTSTANDING - CLASS A.......... 7,050,952 N/A
NET ASSET VALUE PER SHARE -
CLASS A............................. $ 84.54 N/A
MAXIMUM OFFERING PRICE PER SHARE -
CLASS A(1).......................... $ 89.70 N/A
NET ASSETS - CLASS B.................. $ 96,378,449 N/A
SHARES OUTSTANDING - CLASS B.......... 1,146,577 N/A
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS B..................... $ 84.06 N/A
NET ASSETS - CLASS O.................. $ 10,009,891 $28,545,481
SHARES OUTSTANDING - CLASS O.......... 116,912 2,832,321
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - CLASS O..................... $ 85.62 $ 10.08
------------ -----------
INVESTMENTS AT COST (NOTE 9)............ $282,969,267 $28,709,914
------------ -----------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>
STOCK FUNDS
STATEMENTS OF OPERATIONS -- FOR THE YEAR ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY OTC
INDEX GROWTH (1)
<S> <C> <C>
----------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS............................. $8,129,548 $ 553
INTEREST.............................. 840,574 26,534
SECURITIES LENDING INCOME............. 145,279 0
---------- ----------
TOTAL INVESTMENT INCOME (LOSS).......... 9,115,401 27,087
---------- ----------
EXPENSES
ADVISORY FEES......................... 1,824,012 30,583
ADMINISTRATION FEES................... 1,094,408 7,057
CUSTODY FEES.......................... 131,508 941
SHAREHOLDER SERVICING FEES............ 1,823,168 11,763
PORTFOLIO ACCOUNTING FEES............. 119,447 10,822
TRANSFER AGENT
CLASS A............................. 806,739 N/A
CLASS B............................. 212,747 N/A
CLASS O............................. 169 3,294
DISTRIBUTION FEES
CLASS A............................. 0 N/A
CLASS B............................. 666,918 N/A
CLASS O............................. 0 0
LEGAL AND AUDIT FEES.................. 75,923 3,230
REGISTRATION FEES..................... 40,536 3,830
DIRECTORS' FEES....................... 5,086 873
SHAREHOLDER REPORTS................... 126,834 2,394
OTHER................................. 47,254 1,585
---------- ----------
TOTAL EXPENSES.......................... 6,974,749 76,372
LESS:
WAIVED FEES AND REIMBURSED EXPENSES... (1,130,732) (15,056)
---------- ----------
NET EXPENSES.......................... 5,844,017 61,316
---------- ----------
NET INVESTMENT INCOME (LOSS)............ 3,271,384 (34,229)
---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
----------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES............................ 76,879,551 227,740
FINANCIAL FUTURES TRANSACTIONS........ (279,656) 0
---------- ----------
NET REALIZED GAIN (LOSS) FROM
INVESTMENTS........................... 76,599,895 227,740
---------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES............................ 3,819,957 (143,395)
FINANCIAL FUTURES TRANSACTIONS........ 139,975 0
---------- ----------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS......... 3,959,932 (143,395)
---------- ----------
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 80,559,827 84,345
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $83,831,211 $ 50,116
---------- ----------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 3, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX OTC GROWTH (1)
---------------------------------------- -------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 SEPTEMBER 30, 2000
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS............. $ 678,042,470 $ 536,277,099 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS)..... 3,271,384 4,142,194 (34,229)
NET REALIZED GAIN (LOSS) ON SALE
OF INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS.......... 76,599,895 30,876,204 227,740
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) OF
INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN
FOREIGN CURRENCIES............. 3,959,932 106,433,974 (143,395)
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... 83,831,211 141,452,372 50,116
------------------ ------------------ ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A........................ (800,898) (4,167,469) N/A
CLASS B........................ (3) 0 N/A
CLASS O........................ 0 0 0
NET REALIZED GAIN ON SALE OF
INVESTMENTS
CLASS A........................ (24,468,798) (26,108,859) N/A
CLASS B........................ (3,014,562) (1,095,863) N/A
CLASS O........................ (10) 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A........................ 48,788,411 69,401,290 N/A
REINVESTMENT OF DIVIDENDS -
CLASS A........................ 25,103,225 31,362,005 N/A
COST OF SHARES REDEEMED -
CLASS A........................ (139,374,689) (115,068,851) N/A
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A..... (65,483,053) (14,305,556) N/A
------------------ ------------------ ------------------
PROCEEDS FROM SHARES SOLD -
CLASS B........................ 40,397,622 49,781,286 N/A
REINVESTMENT OF DIVIDENDS -
CLASS B........................ 2,930,535 1,083,255 N/A
COST OF SHARES REDEEMED -
CLASS B........................ (18,976,214) (4,874,045) N/A
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS B..... 24,351,943 45,990,496 N/A
------------------ ------------------ ------------------
PROCEEDS FROM SHARES SOLD -
CLASS O........................ 10,031,924 250 28,495,365
REINVESTMENT OF DIVIDENDS -
CLASS O........................ 0 0 0
COST OF SHARES REDEEMED -
CLASS O........................ (19,377) 0 0
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS O..... 10,012,547 250 28,495,365
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN NET
ASSETS........................... 24,428,377 141,765,371 28,545,481
------------------ ------------------ ------------------
NET ASSETS:
ENDING NET ASSETS................ $ 702,470,847 $ 678,042,470 $ 28,545,481
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A............ 580,706 891,085 N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A............ 298,520 436,527 N/A
SHARES REDEEMED - CLASS A........ (1,649,480) (1,495,986) N/A
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A............ (770,254) (168,374) N/A
------------------ ------------------ ------------------
SHARES SOLD - CLASS B............ 480,807 634,985 N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS B............ 34,781 15,222 N/A
SHARES REDEEMED - CLASS B........ (224,994) (63,325) N/A
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B............ 290,594 586,882 N/A
------------------ ------------------ ------------------
SHARES SOLD - CLASS O............ 117,127 3 2,832,321
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS O............ 0 0 0
SHARES REDEEMED - CLASS O........ (218) 0 0
------------------ ------------------ ------------------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS O............ 116,909 3 2,832,321
------------------ ------------------ ------------------
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME................ $ 2,463,601 $ 0 $ 0
------------------ ------------------ ------------------
</TABLE>
(1) THIS FUND COMMENCED OPERATIONS ON AUGUST 3, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
25
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
EQUITY INDEX FUND
----------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.14 0.33 9.36 (0.10) (3.19)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 64.93 0.53 16.54 (0.53) (3.33)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 70.32 0.33 (5.39) (0.33) 0.00
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 49.60 0.48 22.31 (0.48) (1.59)
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 46.24 0.25 4.61 (0.25) (1.25)
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... $ 41.45 0.42 4.79 (0.42) 0.00
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... $ 31.42 0.59 10.65 (0.59) (0.62)
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.19 (0.16) 9.21 0.00 (3.18)
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 65.03 (0.03) 16.52 0.00 (3.33)
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 70.41 0.04 (5.38) (0.04) 0.00
FEBRUARY 17, 1998 (6) TO
MARCH 31, 1998......... $ 65.18 (0.01) 5.24 0.00 0.00
CLASS O
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 78.73 (0.35) 10.45 0.00 (3.21)
FEBRUARY 1, 1999 (6) TO
SEPTEMBER 30, 1999..... $ 78.00 0.44 0.45 (0.16) 0.00
OTC GROWTH FUND
----------------------------------------------------------------------------------------------------
CLASS O
AUGUST 3, 2000 (6) TO
SEPTEMBER 30, 2000..... $ 10.00 (0.01) 0.09 0.00 0.00
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 8).
(2) TOTAL RETURN CALCULATIONS DO NOT INCLUDE ANY SALES CHARGES, AND WOULD HAVE
BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED OR REIMBURSED DURING THE
PERIOD SHOWN.
(3) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15,
1997.
(4) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(5) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CORPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 26, 1999 TO
SEPTEMBER 30, 1999 WERE 3% AND $0.0285 RESPECTIVELY. THE INFORMATION SHOWN
REFLECTS THE STAND-ALONE PERIOD ONLY.
(6) COMMENCEMENT OF OPERATIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26
<PAGE>
FINANCIAL HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
NET ASSET ------------------------------------------ PORTFOLIO NET ASSETS AT
VALUE PER NET INVESTMENT NET GROSS TOTAL TURNOVER END OF PERIOD
SHARE INCOME (LOSS) EXPENSES EXPENSES(1) RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 84.54 0.54% 0.71% 0.85% 12.43% 8% $ 596,083
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 78.14 0.68% 0.71% 0.80% 26.82% 6% $ 611,111
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 64.93 0.94% 0.71% 0.77% (7.22)% 6% $ 518,778
APRIL 1, 1997 TO
MARCH 31, 1998......... $ 70.32 0.80%(3) 0.89%(3) 0.95%(3) 46.48% 4%(4) $ 578,882
OCTOBER 1, 1996 TO
MARCH 31, 1997......... $ 49.60 1.02%(3) 0.97%(3) 1.07%(3) 10.63% 2%(4) $ 406,739
JANUARY 1, 1996 TO
SEPTEMBER 30, 1996..... $ 46.24 1.28%(3) 1.01%(3) 1.08%(3) 12.60% 1%(5) $ 370,439
JANUARY 1, 1995 TO
DECEMBER 31, 1995...... $ 41.45 1.59% 0.96% 1.00% 35.99% 6% $ 327,208
CLASS B
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 84.06 (0.21)% 1.46% 1.72% 11.58% 8% $ 96,378
OCTOBER 1, 1998 TO
SEPTEMBER 30, 1999..... $ 78.19 (0.06)% 1.45% 1.61% 25.86% 6% $ 66,931
APRIL 1, 1998 TO
SEPTEMBER 30, 1998..... $ 65.03 0.14% 1.45% 1.58% (7.59)% 6% $ 17,499
FEBRUARY 17, 1998 (6) TO
MARCH 31, 1998......... $ 70.41 (0.19)% 1.45% 1.64% 8.02% 4% $ 3,811
CLASS O
OCTOBER 1, 1999 TO
SEPTEMBER 30, 2000..... $ 85.62 0.81% 0.50% 0.69% 12.87% 8% $ 10,010
FEBRUARY 1, 1999 (6) TO
SEPTEMBER 30, 1999..... $ 78.73 0.00% 0.00% 0.00% 27.22% 6% $ 0
OTC GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS O
AUGUST 3, 2000 (6) TO
SEPTEMBER 30, 2000..... $ 10.08 (0.73)% 1.30% 1.62% 0.80% 9% $ 28,545
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 8).
(2) TOTAL RETURN CALCULATIONS DO NOT INCLUDE ANY SALES CHARGES, AND WOULD HAVE
BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED OR REIMBURSED DURING THE
PERIOD SHOWN.
(3) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15,
1997.
(4) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(5) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CORPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 26, 1999 TO
SEPTEMBER 30, 1999 WERE 3% AND $0.0285 RESPECTIVELY. THE INFORMATION SHOWN
REFLECTS THE STAND-ALONE PERIOD ONLY.
(6) COMMENCEMENT OF OPERATIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
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 65 separate series. These financial
statements present the Equity Index and OTC Growth Funds (each, a "Fund",
collectively, the "Funds"), each a 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 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 Equity Index Fund was reorganized from a series of Stagecoach
Funds, Inc., the Stagecoach Equity Index Fund.
The OTC Growth Fund commenced operations on August 3, 2000 as a Fund of the
Trust.
The Equity Index Fund offers Class A, Class B, and Class O shares. The OTC
Growth Fund only offers Class O shares. Shareholders of each class may bear
certain expenses that pertain to that particular class. All shareholders bear
the common expenses of the Fund and earn income from the portfolio pro rata
based on the average daily net assets of each class, without distinction
between share classes. Dividends are determined separately for each class
based on income and expenses allocable to each class. Realized gains are
allocated to each class pro rata based on the net assets of each class on the
date realized. No class has preferential dividend rights. Differences in per
share dividend rates generally result from the relative weightings of pro rata
income and realized gain allocations and from differences in separate class
expenses, including distribution, shareholder servicing, and transfer agency
fees.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange which is usually 1:00 p.m.
(Pacific Time), and 3:00 p.m. (Central Time). Securities which are traded on a
national or foreign securities exchange or the National Association of
Securities Dealers Automated Quotation ("NASDAQ") National Market are valued
at the last reported sales price. In the absence of any sale of such
securities, and in the case of other securities, including U.S. Government
obligations, but excluding debt securities maturing in 60 days or less, the
valuations are based on the latest quoted bid prices. Securities denominated
in foreign currencies are translated into U.S. dollars using the closing rates
of exchange in effect on the day of valuation. Securities for which quotations
are not readily available are valued at fair value as determined by policies
set by the Trust's Board of Trustees.
Debt securities maturing in 60 days or less are valued at amortized cost. 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.
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"). Dividend income is recognized on the ex-dividend date.
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS
Each Fund may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo
Bank, N.A. ("WFB"). The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the Funds' custodian's
responsibility to value collateral daily and to take action to obtain
additional 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.
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market changes,
which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell
a security at a set price on a future date. Upon entering into such a
contract, a Fund is required to pledge to the broker an amount of cash, U.S.
Government obligations or other high-quality debt securities equal to the
minimum "initial margin" requirements of the exchange on which the futures
contract is traded. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily fluctuation in the
value of the contract. Such receipts or payments are known as "variation
margin" and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed. Pursuant to regulations and/or published
positions of the Securities and Exchange Commission (the "SEC") for long
futures positions, the Fund is required to segregate highly liquid securities
as permitted by the SEC in connection with futures transactions in an amount
generally equal to the entire value of the underlying contracts. Risks of
entering into futures contracts include the possibility that there may be an
illiquid market and that a change in the value of the contract may not
correlate with changes in the value of the underlying securities. On September
30, 2000, the Equity Index Fund held the following long futures contracts:
<TABLE>
<CAPTION>
Notional Net Unrealized
Fund Contracts Type Expiration Date Contract Value Depreciation
<S> <C> <C> <C> <C> <C>
EQUITY INDEX 53 LONG S&P 500 INDEX DECEMBER 2000 $19,261,525 $ (663,600)
</TABLE>
The Equity Index Fund has pledged to brokers cash for initial margin
requirements with a par value of $1,385,000.
SECURITY LOANS
The Funds may loan securities in return for securities and cash collateral,
which is invested in various short-term fixed income securities. The Funds may
receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received
as collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered in to. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the
loan are reflected in the value of the Fund. The risks to the Fund from
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due or when called for by the
Fund. The value of the securities on loan and the value of the related
collateral for the year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Securities Collateral
<S> <C> <C>
EQUITY INDEX FUND $71,618,971 $78,163,828
</TABLE>
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax differences, reclassification adjustments were made as follows:
<TABLE>
<CAPTION>
Undistributed Net Undistributed Net Paid-in
Investment Income Realized Gain/(Loss) Capital
<S> <C> <C> <C>
EQUITY INDEX FUND $ (6,882) $ 6,881 $ 1
OTC GROWTH FUND 34,229 (34,229) 0
</TABLE>
29
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income and distributions to
shareholders from net realized capital gains, if any, are declared and
distributed at least annually. For federal income tax purposes, the Funds may
designate as capital gains dividends the earnings and profits distributed to
shareholders on the redemption of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at
September 30, 2000.
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Funds with
WFB. Pursuant to the contract, 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>
EQUITY INDEX FUND 0.25
OTC GROWTH FUND 0.65
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Equity Index 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 0.02% of the Fund's average daily
net assets up to $200 million and 0.01% of the Fund's average daily net assets
in excess of $200 million.
Golden Capital Management, a division of Smith Asset Management Group, LP
("SAMG"), acts as sub-advisor to the OTC Growth Fund. SAMG is entitled to
receive from WFB, as compensation for its sub-advisory services, a monthly fee
at the annual rate of 0.25% of the Fund's average daily net assets up to $250
million, 0.23% for the next $250 million, and 0.20% of the Fund's average
daily net assets in excess of $500 million.
Prior to November 8, 1999, Stagecoach Funds, Inc. had entered into a separate
advisory contract on behalf of the predecessor Equity Index Fund with WFB.
Pursuant to the contract, WFB had agreed to provide the Fund with daily
portfolio management. Under the prior contract with the Fund, WFB was entitled
to be paid a monthly advisory fee at the annual rate of 0.25% of the
predecessor Equity Index Fund's average daily net assets.
4. 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, WFB
served as Administrator for the predecessor Equity Index Fund at the rate, and
pursuant to the substantially same terms, as apply under the existing
agreement.
5. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds.
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
Prior to November 8, 1999, BFDS provided transfer agency services at the same
rates pursuant to a substantially similar agreement.
6. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Funds are charged 0.20% of the
average daily net assets of the Equity Index Fund Class O shares and 0.25% of
the average daily net assets of the OTC Growth Fund Class O shares.
The shareholder servicing fees paid on behalf of the Funds for the year ended
September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Class O
<S> <C>
EQUITY INDEX FUND $ 3,377
OTC GROWTH FUND 11,763
</TABLE>
7. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. For these services, Forum is entitled to receive a
fixed monthly per fund fee, a basis point fee of 0.0025% of the average daily
net assets of each Fund, and will be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services. During the period, WFB
provided sub-portfolio accounting services to the Equity Index 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, Stagecoach Funds, Inc. entered into a contract on behalf of the
predecessor Equity Index Fund with WFB, whereby WFB was responsible for
providing portfolio accounting services for the Fund. Pursuant to the
contract, WFB was entitled to a monthly base fee from the Fund of $2,000 plus
an annual fee of 0.07% of the first $50 million of the Fund's average daily
net assets, 0.045% of the next $50 million, and 0.02% of the Fund's average
daily net assets in excess of $100 million.
The Trust has entered into a contract on behalf of the Funds with Wells Fargo
Bank Minnesota, N.A. ("WFB MN"), formerly Norwest Bank Minnesota, N.A.,
whereby WFB MN is responsible for providing custody services for the Funds.
Pursuant to the contract, WFB MN is entitled to certain transaction charges
plus a monthly fee for custody services at the annual rate of 0.02% of the
average daily net assets of each Fund.
8. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the year ended September 30, 2000, were waived by WFB.
9. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) for each
Fund for the year ended September 30, 2000, were as follows:
<TABLE>
<CAPTION>
AGGREGATE PURCHASES AND SALES
Fund Purchases at Cost Sales Proceeds
<S> <C> <C>
EQUITY INDEX FUND $55,295,098 $112,753,169
OTC GROWTH FUND 30,907,576 2,781,392
</TABLE>
31
<PAGE>
STOCK FUNDS INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities of
Equity Index Fund and OTC Growth Fund, two portfolios of Wells Fargo Funds
Trust (collectively the "Funds"), including the portfolios of investments as
of September 30, 2000, and the related statements of operations for the
periods then ended, the statements of changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for the
periods presented on pages 26 to 27. These financial statements and financial
highlights are the responsibility of the Funds' 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 includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of the securities owned as of September 30,
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 September 30,
2000, the results of their operations, changes in their net assets and the
financial highlights for the class and periods indicated in the paragraph
above in conformity with accounting principles generally accepted in the
United States of America.
/s/ KPMG LLP
San Francisco, California
November 3, 2000
32
<PAGE>
TAX INFORMATION STOCK FUNDS
--------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED)
Pursuant to Section 854(b)(2) of the Internal Revenue Code, the Equity Index
Fund designates 100% of its net investment income distributed during the year
as qualifying for the corporate dividends-received deduction.
Pursuant to Section 852(b)(3) of the Internal Revenue Code, the Equity Index
Fund designates $101,045,493 as capital gain dividends for the year.
33
<PAGE>
STOCK FUNDS LIST OF ABBREVIATIONS
--------------------------------------------------------------------------------
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
34
<PAGE>
More information about Wells Fargo 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 affiliate 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
Bulk Rate
[WELLS FARGO FUNDS LOGO] U.S. Postage
P.O. Box 8266 PAID
Boston, MA 02266-8266 Permit No. 2145
Newark, NJ
AR 017 (11/00)
