<PAGE>
WELLS
FARGO
FUNDS
Annual Report
M O N E Y M A R K E T F U N D
March 31, 2000
[GRAPHIC]
CLASS B
<PAGE>
MONEY MARKET FUND
--------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
---------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS.........................................................2
---------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS.......................................................4
---------------------------------------------------------------------
FINANCIAL STATEMENTS
---------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES.........................................10
STATEMENT OF OPERATIONS.....................................................11
STATEMENTS OF CHANGES IN NET ASSETS.........................................12
FINANCIAL HIGHLIGHTS........................................................14
NOTES TO FINANCIAL STATEMENTS.................................................16
---------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT..................................................19
---------------------------------------------------------------------
LIST OF ABBREVIATIONS.........................................................20
---------------------------------------------------------------------
NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
MONEY MARKET FUND
--------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
For investors, the past year was unpredictable. It was a period characterized
by rapidly shifting markets and unprecedented volatility.
During the 12-month period ended March 31, 2000, blue chip stocks soared to a
record high, only to surrender their gains following a series of interest rate
hikes that sent the Dow Jones Industrial Average (the "Dow") into a tailspin.
After a March rally, the Dow recovered most of its losses, yet still remained
down for the year.
In contrast, the Nasdaq Composite Index shattered the 5,000 barrier led by
the turbocharged performance of technology stocks -- particularly genetics,
semiconductor and communications stocks. Technology reigned for several
months, while all other sectors scrambled for attention. That changed when the
technology bubble burst in late March, sparking a sell-off that pounded
speculative issues and left many investors concerned about the viability of
many "New Economy" stocks.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Concerned about the potential for a run-up in inflation, the Federal Reserve
Board (the "Fed") chose to raise interest rates five times over the fiscal
year, with each hike coming in 0.25% increments. Rising interest rates have
helped the Fund's investors capture additional yields on the short-term
securities within each portfolio. And, because we believe that the Fed may be
planning additional rate increases in coming months, our fund managers
presently intend to keep the average maturity of their portfolios relatively
short to take advantage of higher yields.
At the same time, our money market funds, which maintained their $1 per share
price throughout the period, continued to provide investors with a safe,
stable and convenient place to hold cash while evaluating other potential
investment opportunities.
INVESTING IN AN UPSIDE-DOWN MARKET
--------------------------------------------------------------------------------
With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
uncertainty? The first thing to remember is to think long term. Over time, the
market will regain its balance.
More importantly, investors should stick with a clearly defined strategy of
buying and holding a diversified portfolio of stocks, bonds and cash. If you
adhere to your long-term strategy, you won't be as vulnerable to a downturn in
one sector. Chances are that your overall returns will be more steady over
time as well. The fact is, diversification is an effective strategy that
investors can use to their advantage in virtually any market environment.
In closing, thank you for investing with Wells Fargo Funds. With 61 mutual
funds and more than $61 billion in mutual fund assets (as of February 29,
2000), we offer a complete array of mutual funds designed to meet most any
investor need -- in any market environment.
Sincerely,
<TABLE>
<S> <C>
/s/ Michael J. Hogan /s/ W. Rodney Hughes
MICHAEL J. HOGAN W. RODNEY HUGHES
EXECUTIVE VICE PRESIDENT, PRESIDENT,
WELLS FARGO BANK, N.A. WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
MONEY MARKET FUND PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
MONEY MARKET FUND -- CLASS B
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Money Market Fund (the "Fund") seeks to provide investors with
a high level of current income, while preserving capital and liquidity, by
investing in high-quality, short-term instruments.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGER
Michael Neitzke
INCEPTION DATE
10/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class B shares underperformed against the Fund's benchmark, the
90-Day Treasury Bill(1), for the year ending March 31, 2000, with a return of
4.10%(2) versus 5.27% for the benchmark.
Rising interest rates fueled the Fund's performance. During the past year the
Federal Reserve Board raised short-term interest rates five times -- with each
rate increase coming in 0.25% increments -- to offset inflationary pressures
and curb the nation's fast-growing economy. Over the year, the Federal Funds
Rate, the most sensitive indicator of the direction of interest rates,
increased from 4.75% to 6%.
The series of rate hikes also sent yields on short-term securities higher,
which created opportunities to add yields to the portfolio. And as rates rose,
the Fund's management team also selectively invested in longer-term securities
to capture increasingly higher yields. They achieved these favorable results
while maintaining a core position among securities that mature within a one-
to three-month range.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the Fund's
management team will continue to take advantage of higher-yielding, short-term
securities and purchase longer-term securities that offer attractive values.
However, the Fund is consistently managed to maintain a stable asset value of
$1 per share given any level of volatility.
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has waived all or a portion of its management fees or assumed
responsibility for other expenses pursuant to a contract with the Fund, which
reduces operating expenses and increases total return to shareholders. Without
these reductions the Fund's returns would have been lower. The contract's
minimum period is through November 8, 2000, and continues thereafter unless the
Board of Trustees acts to alter or remove the waivers.
Performance shown for the Class B shares of the Wells Fargo Money Market Fund
for the periods prior to November 8, 1999, reflects performance of the Class S
shares of the Stagecoach Money Market Fund (the accounting survivor of a merger
of the Norwest Advantage Ready Cash Investment Fund, the Stagecoach Prime Money
Market Fund and the Stagecoach Money Market Fund), its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach Funds were
reorganized into the Wells Fargo Funds.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUND
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
CLASS B 2.18 4.10 4.15 3.63
BENCHMARK
LIPPER MONEY MARKET FUNDS
AVERAGE(3) 2.50 4.72 4.93
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.07%
7-DAY COMPOUND YIELD 5.20%
30-DAY SIMPLE YIELD 4.63%
30-DAY COMPOUND YIELD 4.73%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 70 DAYS
NUMBER OF HOLDINGS 216
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 62%
Fixed-Rate Notes 12%
Floating Variable Rate Bonds 11%
Certificates of Deposits 8%
Repurchase Agreements 6%
Time Deposits 1%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 32%
15-29 days 19%
30-59 days 24%
60-89 days 3%
90-179 days 8%
180+ days 14%
</TABLE>
--------------------------------------------------------------------------------
(3) Source: Lipper Analytical Services, Inc. The Lipper Money Market Funds
average is an average of funds that invest in high quality financial instruments
rated in the top two grades with dollar-weighted average maturities of less than
90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES - 0.84%
$ 15,000,000 LIBERTY LIGHTHOUSE US
CAPITAL++ 6.04% 08/11/00 $ 14,999,983
9,750,000 MOAT FUNDING LLC++ 6.04 05/02/00 9,750,000
75,000,000 SIGMA FINANCE INCORPORATED++ 6.09 10/05/00 75,000,000
3,929,957 STEERS 1998 SERIES A39++ 6.19 04/25/00 3,929,957
6,500,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-3++ 6.14 06/15/00 6,500,000
17,054,483 WFP TOWER B FINANCE
CORPORATION SHORT-TERM STEERS
TRUST++ 6.12 07/07/00 17,054,483
127,234,423
TOTAL ASSET BACKED SECURITIES (COST $127,234,423) ---------------
BANK NOTES - 0.66%
100,000,000 BANK OF AMERICA SECURITIES 5.93 04/26/00 100,000,000
---------------
100,000,000
TOTAL BANK NOTES (COST $100,000,000) ---------------
CERTIFICATES OF DEPOSIT - 8.41%
43,800,000 ABN AMRO BANK CHICAGO 6.72 02/12/01 43,789,216
139,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 5.10 04/12/00 138,998,349
46,000,000 CANADIAN IMPERIAL BANK OF
COMMERCE 6.57 01/29/01 45,985,607
75,000,000 COMMERZ BANK 5.22 05/12/00 74,996,507
85,000,000 COMMERZ BANK 5.15 04/20/00 84,998,094
9,550,000 COMMERZ BANK 5.16 05/05/00 9,549,194
100,000,000 COMMERZ BANK 6.77 02/28/01 99,974,199
56,700,000 NATIONAL WEST SECURITIES 5.14 04/14/00 56,699,179
45,000,000 NATIONAL WESTMINSTER BANK 6.47 01/18/01 44,983,002
100,000,000 PARIBAS 5.95 04/28/00 100,000,000
60,000,000 PARIBAS 5.93 04/28/00 60,000,000
85,000,000 SOUTH TRUST BANK 5.95 04/27/00 85,000,000
100,000,000 SOUTH TRUST BANK 6.00 05/18/00 100,000,000
35,500,000 U.S. BANK 6.59 01/16/01 35,500,000
145,800,000 UNION BANK OF SWITZERLAND 6.22 12/11/00 145,728,072
150,000,000 UNION BANK OF SWITZERLAND 6.24 12/06/00 149,932,298
TOTAL CERTIFICATES OF DEPOSIT (COST 1,276,133,717
$1,276,133,717) ---------------
COMMERCIAL PAPER - 61.35%
124,300,000 ACE OVERSEAS CORPORATION 5.92{::} 04/03/00 124,300,000
100,000,000 ACE OVERSEAS CORPORATION 6.08{::} 04/24/00 99,645,334
34,000,000 ACE OVERSEAS CORPORATION 6.12{::} 06/12/00 33,595,400
62,000,000 ACE OVERSEAS CORPORATION 6.12{::} 06/20/00 61,177,880
63,000,000 AEGON FUNDING 6.30{::} 09/25/00 61,070,625
50,000,000 ANZ DELAWARE INCORPORATED 6.08{::} 09/11/00 48,640,445
48,500,000 APRECO INCORPORATED 5.90{::} 04/10/00 48,444,360
50,000,000 APRECO INCORPORATED 5.91{::} 04/11/00 49,934,333
35,000,000 APRECO INCORPORATED 6.07{::} 05/01/00 34,834,761
25,000,000 APRECO INCORPORATED 6.09{::} 05/23/00 24,788,542
101,625,000 AQUINAS FUNDING LLC 6.35{::} 04/03/00 101,625,000
6,500,000 ASSET BACKED CAPITAL FINANCE 5.90{::} 05/22/00 6,447,802
50,000,000 ASSET BACKED CAPITAL FINANCE 5.75{::} 06/01/00 49,528,820
150,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/11/00 149,064,250
96,978,000 ATLANTIS ONE FUNDING
CORPORATION 5.95{::} 05/17/00 96,272,755
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$100,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.90%{::} 05/09/00 $ 99,410,000
50,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/05/00 49,734,243
180,000,000 ATLANTIS ONE FUNDING
CORPORATION 5.91{::} 05/10/00 178,906,650
84,000,000 AUSTRALIA & NEW ZEALAND
INCORPORATED 6.08{::} 09/07/00 81,772,694
100,000,000 BANK OF AMERICA CORPORATION 5.89{::} 05/01/00 99,541,889
75,000,000 BANK OF AMERICA CORPORATION 5.95{::} 05/23/00 74,380,209
40,639,000 BARTON CAPITAL CORPORATION 5.90{::} 05/16/00 40,352,608
22,500,000 BAVARIA GLB CORPORATION 6.10{::} 06/15/00 22,221,688
29,000,000 BAVARIA UNIVERSAL FUNDING 6.11{::} 06/20/00 28,616,089
45,000,000 BEETHOVEN FUNDING CORPORATION 6.10{::} 04/25/00 44,832,250
4,000,000 BETA FINANCE INCORPORATED 6.15{::} 09/15/00 4,000,000
109,000,000 BETA FINANCE INCORPORATED 6.15{::} 10/06/00 109,000,000
80,000,000 BRITISH AEROSPACE 6.07{::} 05/22/00 79,339,045
30,000,000 CC USA INCORPORATED 6.10{::} 09/15/00 29,161,251
75,000,000 CITICORP 5.92{::} 04/07/00 74,950,667
100,000,000 CITIGROUP INCORPORATED 6.02{::} 04/07/00 99,933,111
145,000,000 COMMERZBANK 5.90{::} 05/17/00 143,954,389
50,000,000 COMPASS SECURITIZATION 5.88{::} 04/04/00 49,991,833
112,930,000 COMPASS SECURITIZATION 5.91{::} 04/10/00 112,800,225
100,000,000 COMPASS SECURITIZATION 5.95{::} 04/13/00 99,834,722
50,000,000 COMPASS SECURITIZATION 5.91{::} 04/17/00 49,885,083
128,000,000 COMPASS SECURITIZATION 6.08{::} 04/20/00 127,632,498
98,500,000 CORPORATE ASSET FUNDING
COMPANY INCORPORATED 6.06{::} 05/24/00 97,654,378
63,100,000 CORPORATE ASSET SECURITIZATION
LIMITED INCORPORATED 6.09{::} 04/26/00 62,854,489
75,000,000 CORPORATE ASSET SECURITIZATION
LIMITED INCORPORATED 6.06{::} 04/18/00 74,810,625
100,000,000 CORPORATE RECEIVABLES
CORPORATION 6.06{::} 05/25/00 99,124,667
130,000,000 CREDIT SUISSE FIRST BOSTON 6.08{::} 08/09/00 127,189,690
40,000,000 CREDIT SUISSE FIRST BOSTON 6.05{::} 08/14/00 39,105,945
28,500,000 CXC INCORPORATED 6.07{::} 05/25/00 28,250,119
65,000,000 DEUTSCHE BANK NY 6.07{::} 10/10/00 64,985,473
12,300,000 DORADA CORPORATION 6.10{::} 09/14/00 11,958,198
53,000,000 DORADA CORPORATION 6.10{::} 09/15/00 51,518,209
50,000,000 EUREKA SECURITIZATION
INCORPORATED 6.09{::} 05/24/00 49,568,625
16,600,000 FIRST USA BANK 5.99{::} 09/21/00 16,597,772
19,485,000 FOUNTAIN SQUARE FUNDING
CORPORATION 6.08{::} 04/17/00 19,438,929
10,000,000 GENERAL ELECTRIC CAPITAL
CORPORATION 5.83{::} 04/10/00 9,988,663
250,000,000 GENERAL ELECTRIC CAPITAL
CORPORATION 6.05{::} 04/27/00 248,991,667
50,000,000 GENERAL ELECTRIC CAPITAL
SERVICES 5.90{::} 05/11/00 49,688,611
39,227,000 GIRO FUNDING CORPORATION 6.07{::} 05/03/00 39,028,577
50,161,000 GIRO FUNDING CORPORATION 6.02{::} 04/05/00 50,144,224
47,153,000 GIRO FUNDING CORPORATION 5.90{::} 04/10/00 47,098,905
25,134,000 GIRO FUNDING CORPORATION 5.92{::} 04/11/00 25,100,935
162,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.10{::} 08/25/00 158,047,200
1,500,000 GOLDMAN SACHS GROUP
INCORPORATED 6.07{::} 08/31/00 1,500,000
57,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.50{::} 12/22/00 57,000,000
50,000,000 GOLDMAN SACHS GROUP
INCORPORATED 5.92{::} 05/10/00 49,695,778
35,000,000 GRAND FUNDING CORPORATION 6.06{::} 05/23/00 34,705,417
</TABLE>
5
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$105,341,000 GREENWICH FUNDING CORPORATION 5.91%{::} 04/10/00 $ 105,220,048
64,200,000 GREYHAWK CAPITAL CORPORATION 5.91{::} 05/11/00 63,799,499
25,000,000 GREYHAWK FUNDING CORPORATION 5.91{::} 05/16/00 24,823,521
10,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.95{::} 04/28/00 9,958,681
32,329,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 04/24/00 32,214,151
75,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 04/20/00 74,784,313
150,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.89{::} 04/03/00 150,000,000
55,616,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.03{::} 04/04/00 55,606,684
65,940,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.09{::} 05/02/00 65,616,509
23,500,000 IRISH PERMANENT TREASURY 5.88{::} 04/25/00 23,415,557
86,100,000 IRISH PERMANENT TREASURY 6.15{::} 10/26/00 83,069,998
100,000,000 IRISH PERMANENT TREASURY 5.93{::} 05/12/00 99,357,583
50,000,000 IRISH PERMANENT TREASURY 5.93{::} 05/11/00 49,687,028
50,000,000 IRISH PERMANENT TREASURY 5.88{::} 04/26/00 49,812,167
100,000,000 IRISH PERMANENT TREASURY 5.94{::} 05/08/00 99,422,500
119,000,000 J.P. MORGAN & COMPANY
INCORPORATED 5.90{::} 05/18/00 118,122,375
11,000,000 K2 USA LLC 5.91{::} 05/30/00 10,897,068
50,000,000 K2 USA LLC 6.14{::} 07/17/00 49,104,584
175,000,000 KBC COMMERCIAL PAPER TRUST 5.90{::} 04/07/00 174,885,278
75,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.90{::} 04/04/00 74,987,708
60,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 6.03{::} 04/05/00 59,979,900
50,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.95{::} 05/26/00 49,562,014
50,000,000 LINKS FINANCE 5.93{::} 05/04/00 49,744,681
12,678,000 LINKS FINANCE 5.89{::} 04/26/00 12,630,292
80,000,000 MOAT FUNDING LLC 5.90{::} 04/06/00 79,960,667
7,250,000 MOAT FUNDING LLC 5.73{::} 05/09/00 7,208,458
131,000,000 MOAT FUNDING LLC 5.99{::} 05/09/00 130,249,369
150,000,000 MOAT FUNDING LLC 5.90{::} 04/25/00 149,459,167
175,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.10{::} 06/20/00 172,687,084
49,000,000 MORIARTY LIMITED 5.93{::} 05/04/00 48,749,787
80,000,000 MORIARTY LIMITED 5.92{::} 05/10/00 79,513,245
60,000,000 MORIARTY LIMITED 5.91{::} 05/17/00 59,566,600
100,000,000 MORIARTY LIMITED 5.94{::} 05/22/00 99,191,500
126,386,000 NEPTUNE FUNDING CORPORATION 6.08{::} 04/20/00 126,023,132
101,179,000 OLD LINE FUNDING CORPORATION 5.90{::} 04/10/00 101,062,925
22,613,000 OLD LINE FUNDING CORPORATION 5.93{::} 05/04/00 22,497,529
150,000,000 PARK AVENUE RECEIVABLES
CORPORATION 5.91{::} 04/12/00 149,778,375
54,834,000 PERRY II FUNDING ACE
CORPORATION 5.95{::} 05/01/00 54,580,240
80,000,000 PERRY IV FUNDING CORPORATION 5.96{::} 04/17/00 79,814,578
39,525,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 5.94{::} 05/22/00 39,205,441
55,206,000 PREFERRED RECEIVABLES FUNDING
CORPORATION 6.10{::} 05/30/00 54,672,802
60,000,000 RECEIVABLES CAPITAL
CORPORATION 5.94{::} 04/14/00 59,891,100
95,000,000 REGIONS BANK 6.09{::} 10/10/00 94,971,701
85,000,000 SALOMON SMITH BARNEY HOLDINGS 5.91{::} 05/05/00 84,553,467
100,000,000 SALOMON SMITH BARNEY HOLDINGS 6.01{::} 04/07/00 99,933,222
100,000,000 SALOMON SMITH BARNEY HOLDINGS 5.90{::} 04/10/00 99,885,278
60,000,000 SHEFFIELD RECEIVABLES
CORPORATION 6.03{::} 04/03/00 60,000,000
</TABLE>
6
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 34,800,000 SHEFFIELD RECEIVABLES
CORPORATION 6.10%{::} 05/26/00 $ 34,487,477
13,000,000 SIGMA FINANCE CORPORATION 5.92{::} 05/12/00 12,916,627
40,500,000 SIGMA FINANCE CORPORATION 5.73{::} 05/23/00 40,177,688
47,000,000 SIGMA FINANCE CORPORATION 5.95{::} 05/23/00 46,611,598
34,000,000 SIGMA FINANCE CORPORATION 6.30{::} 09/22/00 32,976,600
138,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.91{::} 04/06/00 137,932,035
48,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 05/18/00 47,643,000
30,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 05/08/00 29,826,458
80,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.92{::} 04/07/00 79,947,378
60,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 6.04{::} 04/07/00 59,959,733
27,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.95{::} 04/11/00 26,964,300
72,000,000 SURREY FUNDING 5.92{::} 04/03/00 72,000,000
249,000,000 SURREY FUNDING 5.93{::} 04/03/00 249,000,000
50,000,000 SYDNEY CAPITAL CORPORATION 5.95{::} 04/13/00 49,917,361
24,425,000 SYDNEY CAPITAL CORPORATION 5.95{::} 05/01/00 24,311,967
37,165,000 SYDNEY CAPITAL CORPORATION 5.90{::} 04/10/00 37,122,363
3,340,000 SYDNEY CAPITAL CORPORATION 5.97{::} 04/18/00 3,331,691
74,781,000 SYDNEY CAPITAL CORPORATION 6.07{::} 04/28/00 74,465,778
33,136,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/04/00 32,966,795
45,567,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/10/00 45,289,282
80,792,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.89{::} 04/25/00 80,501,194
34,376,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.01{::} 04/14/00 34,312,872
23,472,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 5.93{::} 05/15/00 23,309,613
178,800,000 TRIDENT CAPITAL FINANCE 5.90{::} 04/03/00 178,800,000
95,000,000 TRIDENT CAPITAL FINANCE 5.91{::} 05/11/00 94,407,358
21,000,000 WINDMILL FUNDING CORPORATION 6.06{::} 05/23/00 20,823,250
TOTAL COMMERCIAL PAPER (COST $9,313,828,771) 9,313,828,771
---------------
CORPORATE BONDS & NOTES - 12.11%
66,750,000 ABBEY NATIONAL TREASURY
SERVICE 5.13 05/04/00 66,746,180
94,000,000 ABBEY NATIONAL TREASURY
SERVICE 5.65 07/24/00 93,986,183
80,000,000 BETA FINANCE INCORPORATED 6.77 03/15/01 80,000,000
87,000,000 BETA FINANCE INCORPORATED 6.82 02/15/01 87,000,000
150,000,000 BETA FINANCE INCORPORATED 6.83 02/20/01 150,000,000
85,000,000 BETA FINANCE INCORPORATED 6.65 02/05/01 85,000,000
7,800,000 CC USA INCORPORATED 5.61 06/07/00 7,800,000
65,250,000 CC USA INCORPORATED 6.17 10/16/00 65,250,000
113,000,000 CC USA INCORPORATED 6.79 03/15/01 113,000,000
140,000,000 CC USA INCORPORATED 6.77 03/15/01 140,000,000
95,000,000 CENTAURI CORPORATION 6.66 02/04/01 95,000,000
75,000,000 CREDIT SUISSE FIRST BOSTON 5.75 07/14/00 75,000,000
110,000,000 DORADA FINANCE INCORPORATED 6.79 03/15/01 110,000,000
80,000,000 DORADA FINANCE INCORPORATED 6.77 03/15/01 80,000,000
80,000,000 FIRST UNION CORPORATION 5.80 07/03/00 80,000,000
142,750,000 GOLDMAN SACHS GROUP
INCORPORATED 6.00 08/07/00 142,750,000
63,250,000 GOLDMAN SACHS GROUP
INCORPORATED 6.10 09/25/00 63,250,000
6,750,000 IBM CREDIT CORPORATION 5.27 04/07/00 6,749,948
2,000,000 JOHN DEERE CAPITAL 5.73 07/13/00 1,999,680
</TABLE>
7
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
CORPORATE BONDS & NOTES (continued)
$ 21,445,000 SALOMON SMITH BARNEY 6.70% 07/05/00 $ 21,478,883
75,000,000 SIGMA FINANCE INCORPORATED 6.10 10/23/00 75,000,000
103,250,000 SIGMA FINANCE INCORPORATED 5.44 05/24/00 103,250,000
24,750,000 TEXACO CAPITAL 5.11 05/03/00 24,748,628
70,000,000 U.S. BANK 5.92 9/20/00 69,973,324
TOTAL CORPORATE BONDS & NOTES (COST
$1,837,982,826) 1,837,982,826
---------------
FLOATING RATE FUNDING AGREEMENTS - 1.13%
7,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.10 06/29/00 7,250,000
7,250,000 GE LIFE & ANNUITY 5.91 07/01/00 7,250,000
7,250,000 GE LIFE & ANNUITY 5.91 07/01/00 7,250,000
150,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.15 02/09/01 150,000,000
TOTAL FLOATING RATE FUNDING AGREEMENTS (COST
$171,750,000) 171,750,000
---------------
MASTER NOTES - 0.02%
2,424,547 GENERAL ELECTRIC COMPANY++ 6.00 04/06/00 2,424,547
---------------
TOTAL MASTER NOTES (COST $2,424,547) 2,424,547
---------------
MUNICIPAL DEMAND NOTES - 0.02%
1,200,000 DURHAM NC COP SERIES B++ 6.15 07/01/03 1,200,000
190,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 190,000
120,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 120,000
360,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 360,000
255,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 255,000
155,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 155,000
235,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC++ 6.20 12/15/26 235,000
200,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES SERIES A
WACHOVIA BANK OF NORTH
CAROLINA LOC++ 6.15 03/01/17 200,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$2,715,000) 2,715,000
---------------
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 0.03%
4,300,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.83{::} 08/01/00 4,221,021
---------------
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $4,221,021) 4,221,021
---------------
SHORT-TERM FEDERAL AGENCIES - 0.09%
10,000,000 FEDERAL HOME LOAN BANK 5.26 05/26/00 9,999,584
3,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.98 04/20/00 2,999,943
TOTAL SHORT-TERM FEDERAL AGENCIES (COST
$12,999,527) 12,999,527
---------------
TIME DEPOSITS - 0.73%
10,348,090 MARSHALL & ILSLEY CORPORATION 6.19 04/03/00 10,348,090
100,000,000 BARCLAYS BANK 6.34 04/03/00 100,000,000
TOTAL TIME DEPOSITS (COST $110,348,090) 110,348,090
---------------
VARIABLE & FLOATING RATE BONDS - 0.49%
75,000,000 AMERICAN EXPRESS CREDIT
CORPORATION 6.20 04/24/00 75,000,000
---------------
TOTAL VARIABLE & FLOATING RATE BONDS (COST
$75,000,000) 75,000,000
---------------
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE CERTIFICATES OF DEPOSIT - 0.06%
$ 8,500,000 SOUTH TRUST BANK 6.16% 09/29/00
$ 8,496,653
---------------
TOTAL VARIABLE & FLOATING RATE CERTIFICATES
OF DEPOSIT (COST $8,496,653) 8,496,653
---------------
VARIABLE & FLOATING RATE NOTES - 7.95%
70,000,000 BANK OF AMERICA 6.16 04/05/00 69,999,851
7,500,000 BEAR STEARNS & COMPANY
INCORPORATED 6.15 11/15/00 7,500,000
3,750,000 BEAR STEARNS & COMPANY
INCORPORATED 6.11 9/15/00 3,749,667
300,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.19 03/29/01 300,000,000
7,250,000 BEAR STEARNS & COMPANY
INCORPORATED 6.12 06/16/00 7,250,427
56,700,000 COMERICA BANK 6.18 09/25/00 56,681,340
100,000,000 DEUTSCHE BANK FINANCIAL
INCORPORATED 6.14 04/17/00 99,997,758
23,000,000 FIRST UNION NATIONAL BANK 6.16 08/25/00 23,000,000
4,750,000 GOLDMAN SACHS GROUP
INCORPORATED 6.16 07/14/00 4,750,489
144,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.09 09/15/00 143,993,510
300,000,000 J.P. MORGAN & COMPANY
INCORPORATED 5.99 03/16/01 300,000,000
155,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.00 03/16/01 155,000,000
10,250,000 MORGAN STANLEY DEAN WITTER &
COMPANY 6.25 03/15/01 10,250,000
16,750,000 NATIONAL CITY BANK 6.15 09/29/00 16,743,555
8,500,000 SIGMA FINANCE INCORPORATED 6.09 10/05/00 8,500,000
TOTAL VARIABLE & FLOATING RATE NOTES (COST
$1,207,416,597)
1,207,416,597
---------------
REPURCHASE AGREEMENTS -- 5.64%
175,000,000 DEUTSCHE BANK REPURCHASE
AGREEMENT 6.50 04/06/00 175,000,000
1,211,991 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 1,211,991
510,012,095 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.35 04/03/00 510,012,095
20,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.42 04/03/00 20,000,000
150,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.50 04/06/00 150,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$856,224,086) 856,224,086
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $15,106,775,258)* 99.53% $15,106,775,258
OTHER ASSETS AND LIABILITIES NET 0.47 71,822,028
------- ---------------
TOTAL NET ASSETS 100.00% $15,178,597,286
------- ---------------
------- ---------------
</TABLE>
{::} YIELD TO MATURITY.
++ VARIABLE RATE.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
---------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED COST................. $15,106,775,258
RECEIVABLE FOR INTEREST AND OTHER RECEIVABLES..... 92,698,379
-----------
TOTAL ASSETS...................................... 15,199,473,637
-----------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES.... 8,216,348
PAYABLE TO OTHER RELATED PARTIES................ 3,754,685
ACCRUED EXPENSES AND OTHER LIABILITIES.......... 1,390,348
DIVIDENDS PAYABLE............................... 7,514,970
-----------
TOTAL LIABILITIES................................. 20,876,351
-----------
TOTAL NET ASSETS.................................. $15,178,597,286
-----------
-----------
NET ASSETS CONSIST OF:
---------------------------------------------------------------
PAID-IN CAPITAL................................. $15,178,588,476
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON
INVESTMENTS................................... 8,810
-----------
TOTAL NET ASSETS.................................. $15,178,597,286
-----------
-----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
---------------------------------------------------------------
NET ASSETS - CLASS A.............................. $13,441,754,489
SHARES OUTSTANDING - CLASS A...................... 13,441,511,986
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS A......................................... $ 1.00
NET ASSETS - CLASS B.............................. $1,736,842,797
SHARES OUTSTANDING - CLASS B...................... 1,736,794,497
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
CLASS B......................................... $ 1.00
-----------
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
STATEMENT OF OPERATIONS MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MARCH 31, 2000
<S> <C>
------------------------------------------------------------------
INVESTMENT INCOME
INTEREST........................................ $ 692,439,976
--------------
TOTAL INVESTMENT INCOME........................... 692,439,976
--------------
EXPENSES
ADVISORY FEES................................... 50,035,349
ADMINISTRATION FEES............................. 18,763,256
CUSTODY......................................... 2,282,590
SHAREHOLDER SERVICING FEES...................... 34,245,518
PORTFOLIO ACCOUNTING FEES....................... 1,616,411
TRANSFER AGENT
A SHARES...................................... 13,016,151
B SHARES...................................... 125,552
S SHARES...................................... 434,288
DISTRIBUTION FEES
A SHARES...................................... 0
B SHARES...................................... 4,708,200
S SHARES...................................... 5,968,383
LEGAL AND AUDIT FEES............................ 775,776
REGISTRATION FEES............................... 1,384,579
DIRECTORS' FEES................................. 3,790
SHAREHOLDER REPORTS............................. 990,017
OTHER........................................... 405,497
--------------
TOTAL EXPENSES.................................... 134,755,357
--------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES............. (30,308,728)
NET EXPENSES.................................... 104,446,629
--------------
NET INVESTMENT INCOME............................. 587,993,347
--------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS......... (9,727)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $ 587,983,620
--------------
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
MONEY MARKET FUND STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2000(1) MARCH 31, 1999
<S> <C> <C>
-------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $10,296,401,223 $ 7,662,756,836
OPERATIONS:
NET INVESTMENT INCOME.... 587,993,347 403,472,313
NET REALIZED GAIN (LOSS)
ON SALE OF
INVESTMENTS............ (9,727) 166,441
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 587,983,620 403,638,754
--------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............. (530,116,391) (359,769,107)
B SHARES............. (27,568,972) N/A
S SHARES............. (30,307,984)(2) (43,703,206)
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 9,011,593,439 5,518,795,093
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 545,615,046 351,157,967
COST OF SHARES REDEEMED
- CLASS A............ (5,253,257,204) (3,443,871,290)
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 4,303,951,281 2,426,081,770
--------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 2,897,154,198 N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 28,165,021 N/A
COST OF SHARES REDEEMED
- CLASS B............ (1,188,609,048) N/A
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 1,736,710,471 N/A
--------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS S....... 1,737,202,703 2,191,020,851
REINVESTMENT OF
DIVIDENDS -
CLASS S.............. 32,669,252 43,441,848
COST OF SHARES REDEEMED
- CLASS S............ (2,928,327,917) (2,027,066,523)
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS S................ (1,158,455,962) 207,396,176
--------------- ---------------
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 4,882,196,063 2,633,644,387
--------------- ---------------
NET ASSETS:
-------------------------------------------------------------
ENDING NET ASSETS...... $15,178,597,286 $10,296,401,223
SHARE ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 9,011,738,160 5,518,795,093
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 545,615,046 351,157,967
SHARES REDEEMED -
CLASS A.............. (5,253,257,204) (3,443,871,290)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 4,304,096,002 2,426,081,770
SHARES SOLD -
CLASS B.............. 2,897,238,524 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 28,165,021 N/A
SHARES REDEEMED -
CLASS B.............. (1,188,608,048) N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 1,736,794,497 N/A
SHARES SOLD -
CLASS S.............. 1,737,202,703 2,191,020,851
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS S.............. 32,669,262 43,441,848
SHARES REDEEMED -
CLASS S.............. (2,928,411,900) (2,027,066,523)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS S................ (1,158,639,945) 207,396,176
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 0 $ 0
--------------- ---------------
--------------- ---------------
</TABLE>
12
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUND
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
(1) "Proceeds from shares sold" includes $993,536,856 for Class A, and "Shares
sold" includes 993,575,038 for Class A as a result of the consolidation of
the Norwest Advantage Ready Cash Investment Fund. "Proceeds from shares
sold" includes $578,292,460 for Class A, and "Shares sold" includes
578,398,886 for Class A as a result of the consolidation of the Stagecoach
Prime Money Market Fund. "Proceeds from shares" sold includes $2,137,068
for Class B, and "Shares sold" includes 2,137,109 for Class B as a result
of the consolidation of the Norwest Advantage Ready Cash Investment Fund.
(2) Class S shares of Stagecoach Money Market Fund became Class B shares of
Wells Fargo Money Market Fund on November 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
MONEY MARKET FUND FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS DISTRIBUTIONS
NET ASSET NET UNREALIZED FROM NET FROM NET
VALUE PER INVESTMENT GAIN ON INVESTMENT REALIZED
SHARE INCOME INVESTMENTS INCOME GAINS
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
B SHARES(2)
APRIL 1, 1999 TO MARCH
31, 2000............... $ 1.00 0.04 0.00 (0.04) $ 0.00
APRIL 1, 1998 TO MARCH
31, 1999............... 1.00 0.04 0.00 (0.04) 0.00
APRIL 1, 1997 TO MARCH
31, 1998............... 1.00 0.04 0.00 (0.04) 0.00
OCTOBER 1 , 1996 TO MARCH
31, 1997(3)............ 1.00 0.02 0.00 (0.02) 0.00
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(4)................ 1.00 0.03 0.00 (0.03) 0.00
MAY 25, 1995 TO DECEMBER
31, 1995............... 1.00 0.03 0.00 (0.03) 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 9).
(2) THIS CLASS OF SHARES WAS REDESIGNATED FROM CLASS S TO CLASS B ON NOVEMBER
8, 1999. FINANCIAL INFORMATION FOR PERIODS PRIOR TO NOVEMBER 8, 1999 IS
THAT OF CLASS S.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
<PAGE>
FINANCIAL HIGHLIGHTS MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
NET ASSET ------------------------------------------ NET ASSETS AT
VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
SHARE INCOME EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------
B SHARES(2)
APRIL 1, 1999 TO MARCH
31, 2000............... $ 1.00 4.06% 1.46% 1.65% 4.10% $1,736,843
APRIL 1, 1998 TO MARCH
31, 1999............... 1.00 4.01% 1.42% 1.62% 4.10% 1,158,589
APRIL 1, 1997 TO MARCH
31, 1998............... 1.00 4.28% 1.42% 1.62% 4.37% 951,172
OCTOBER 1 , 1996 TO MARCH
31, 1997(3)............ 1.00 4.02% 1.43% 1.56% 2.02% 707,781
JANUARY 1, 1996 TO
SEPTEMBER 30,
1996(4)................ 1.00 3.98% 1.42% 1.55% 3.03% 699,231
MAY 25, 1995 TO DECEMBER
31, 1995............... 1.00 4.40% 1.43% 1.53% 2.73% 618,899
</TABLE>
(1) DURING EACH PERIOD, VARIOUS FEES AND EXPENSES WERE WAIVED AND REIMBURSED.
THE RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE
RATIO IN THE ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS (NOTE 9).
(2) THIS CLASS OF SHARES WAS REDESIGNATED FROM CLASS S TO CLASS B ON NOVEMBER
8, 1999. FINANCIAL INFORMATION FOR PERIODS PRIOR TO NOVEMBER 8, 1999 IS
THAT OF CLASS S.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
15
<PAGE>
MONEY MARKET FUND 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 61 separate series. These financial
statements represent the Money Market Fund (the "Fund"), a diversified series
of the Trust.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust. Effective on the close of
business November 5, 1999, the Stagecoach and/or Norwest Advantage Funds were
consolidated into the Wells Fargo Funds Trust through an exchange of shares as
follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
MONEY MARKET FUND (A,S)* READY CASH INVESTMENT FUND (A,B) MONEY MARKET FUND
PRIME MONEY MARKET FUND (A)
</TABLE>
* ACCOUNTING SURVIVOR
In a reorganization, the Wells Fargo Money Market Fund acquired all of the A
and S share class net assets of the Stagecoach Money Market Fund, the net
assets of the A share class of the Stagecoach Prime Money Market, and the net
assets of the A and B share classes of the Norwest Advantage Ready Cash
Investment Funds. Concurrent with this reorganization, Class S shares of the
Stagecoach Money Market Fund were converted into Class B shares of the Wells
Fargo Money Market Fund. The A share class of Stagecoach Prime Money Market
Fund exchanged its 578,398,886 shares for 578,398,886 shares of the Wells
Fargo Money Market Fund. The Class A and Class B share classes of Norwest
Advantage Ready Cash Investment Fund exchanged their 995,712,147 shares for
995,712,147 shares of the Wells Fargo Money Market Fund.
The Money Market Fund offers Class A and Class B shares. The separate classes
of shares differ principally in the applicable sales charges (if any),
distribution fees, and transfer agency fees. Shareholders of each class may
also bear certain expenses that pertain to that particular class. All
shareholders bear the common expenses of the Fund and earn income from the
portfolio pro rata based on the average daily net assets of each class,
without distinction between share classes. Dividends are determined separately
for each class based on income and expenses allocable to each class. Realized
gains and losses are allocated to each class pro rata based on the net assets
of each class on the date realized. No class has preferential dividend rights.
Differences in per share dividend rates generally result from differences in
separate class expenses, including distribution, shareholder servicing and
transfer agency fees.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Fund invests only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolio may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer
at par value prior to maturity.
The Fund uses the amortized cost method to value its portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Fund seeks to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that it will be able to do so.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUND
--------------------------------------------------------------------------------
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
REPURCHASE AGREEMENTS
The Fund may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo
Bank, N.A. ("WFB"). The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the Fund's custodian's
responsibility to value collateral daily and to take action to obtain
additional collateral as necessary to maintain market value equal to or
greater than the resale price. The repurchase agreements held by the Fund are
collateralized by instruments such as U.S. Treasury or federal agency
obligations.
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax and merger-related differences, reclassification adjustments were
made as follows:
<TABLE>
<CAPTION>
Undistributed Net Net Realized
Investment Income Gain/Loss Paid in Capital
<S> <C> <C> <C>
MONEY MARKET FUND 0 364,264 (364,264)
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at March 31,
2000.
3. ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Money Market
Fund with WFB. Pursuant to the contract, WFB has agreed to provide the Fund
with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the annual rate of 0.40% of the Fund's average daily
net assets.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Fund. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Fund, a monthly
fee at the annual rate of 0.05% of the Fund's average daily net assets up to
$1 billion and 0.04% of the Fund's average daily net assets in excess of $1
billion.
Prior to November 8, 1999, the Money Market Fund was charged at the same
annual rate by WFB.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B shares of
the Money Market Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution
fees are charged to the Money Market Fund's Class B shares and paid to
Stephens, Inc. ("Stephens") at a rate of 0.75% of average daily net assets.
There
17
<PAGE>
MONEY MARKET FUND NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
are no distribution fees for Class A shares. The distribution fees paid on
behalf of the Fund for the period ended March 31, 2000 is disclosed in the
Statement of Operations.
Prior to November 8, 1999, the Plan for the Class A shares of the Money
Market Fund provided that the Fund may defray all or part of the cost of
preparing, printing and distributing prospectuses and other promotional
materials by paying for costs incurred on an annual basis of up to 0.05% of
the average daily net assets attributable to the Fund's Class A shares. This
Plan for the Class A shares provided only for the reimbursement of actual
expenses. During the year ended March 31, 2000, the Fund made no reimbursement
of such expenses.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Fund
with WFB whereby WFB is entitled to receive a monthly fee at the annual rate
of 0.15% of the Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Fund
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Fund.
Prior to July 17, 1999, the Trust had entered into a contract on behalf of
the Money Market Fund with WFB, whereby WFB provided transfer agency services
for the Fund, which was charged at an annual rate of 0.10% of the average
daily net assets of the Fund's Class A and B shares.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into a contract on behalf of the Fund with numerous
shareholder servicing agents, whereby the Fund is charged 0.25% of the average
daily net assets of the Fund for Class A and Class B shares for these
services. Prior to November 8, 1999, shareholder servicing fees were charged
at an annual rate of 0.30% and 0.25% of the average daily net assets of the
Class A and Class S shares, respectively, of the Money Market Fund.
The shareholder servicing fees paid on behalf of the Fund for the period
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Class A Class B Class S
<S> <C> <C> <C>
MONEY MARKET FUND $30,686,657 $1,569,400 $1,989,461
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Fund. Prior to November 8, 1999, the Trust had entered into a
contract on behalf of the Money Market 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 Fund with Norwest Bank
Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest is
responsible for providing custody services for the Fund. Pursuant to the
contract, Norwest is entitled to certain transaction charges plus a monthly
fee for custody services at the annual rate of 0.02% of the average daily net
assets of the Fund. Prior to November 8, 1999, the Money Market Fund had the
above service performed for a fee at an annual rate of 0.0167% of the average
daily net assets of the Fund. Prior to June 4, 1999, WFB performed the above
services for the same fees.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 12,165 shares of the Money Market Fund Class B.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended March 31, 2000, were waived by WFB or FAdS.
Fee waivers are contractual and apply for one year from the closing date of
the reorganization. After this time, the Advisor, with Board approval, may
reduce or eliminate such waivers.
<TABLE>
<CAPTION>
Fees Waived by WFB Total Fees Waived
<S> <C> <C>
MONEY MARKET FUND $30,308,728 $30,308,728
</TABLE>
18
<PAGE>
INDEPENDENT AUDITORS' REPORT MONEY MARKET FUND
--------------------------------------------------------------------------------
TO THE CLASS B SHAREHOLDERS AND BOARD OF TRUSTEES
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities of
Money Market Fund (one of the funds comprising Wells Fargo Funds Trust),
including the Portfolio of Investments as of March 31, 2000, and the related
statement of operations for the year 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 period presented. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian. 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
Money Market Fund of Wells Fargo Funds Trust as of March 31, 2000, the results
of its operations for the year then ended, and the changes in its net assets
and its financial highlights for the periods indicated above in conformity
with accounting principles generally accepted in the United States of America.
[LOGO]
San Francisco, California
May 12, 2000
19
<PAGE>
MONEY MARKET FUND 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
20
<PAGE>
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are sponsored and distributed by STEPHENS INC., Member NYSE/SIPC.
Wells Fargo Bank, N.A., and its affiliates are not affiliated with Stephens
Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
WELLS
FARGO
FUNDS
P.O. BOX 8266
BOSTON, MA 02266-8266
AR007 (5/00)
