<PAGE>
[LOGO]
Semi-Annual Report
STOCK FUNDS
March 31, 2000
DISCIPLINED GROWTH FUND
DIVERSIFIED EQUITY FUND
DIVERSIFIED SMALL CAP FUND
EQUITY INCOME FUND
EQUITY INDEX FUND
EQUITY VALUE FUND
GROWTH FUND
GROWTH EQUITY FUND
INDEX FUND
INTERNATIONAL FUND
INTERNATIONAL EQUITY FUND
LARGE COMPANY GROWTH FUND
SMALL CAP GROWTH FUND
SMALL CAP OPPORTUNITIES FUND
SMALL CAP VALUE FUND
SMALL COMPANY 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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DISCIPLINED GROWTH FUND......................................................2
DIVERSIFIED EQUITY FUND......................................................4
DIVERSIFIED SMALL CAP FUND...................................................6
EQUITY INCOME FUND...........................................................8
EQUITY INDEX FUND...........................................................10
EQUITY VALUE FUND...........................................................12
GROWTH FUND.................................................................14
GROWTH EQUITY FUND..........................................................16
INDEX FUND..................................................................18
INTERNATIONAL FUND..........................................................20
INTERNATIONAL EQUITY FUND...................................................22
LARGE COMPANY GROWTH FUND...................................................24
SMALL CAP GROWTH FUND.......................................................26
SMALL CAP OPPORTUNITIES FUND................................................28
SMALL CAP VALUE FUND........................................................30
SMALL COMPANY GROWTH FUND...................................................32
PORTFOLIO OF INVESTMENTS
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DISCIPLINED GROWTH FUND.....................................................34
DIVERSIFIED EQUITY FUND.....................................................35
DIVERSIFIED SMALL CAP FUND..................................................36
EQUITY INCOME FUND..........................................................37
EQUITY INDEX FUND...........................................................38
EQUITY VALUE FUND...........................................................53
GROWTH FUND.................................................................56
GROWTH EQUITY FUND..........................................................60
INDEX FUND..................................................................61
INTERNATIONAL FUND..........................................................62
INTERNATIONAL EQUITY FUND...................................................63
LARGE COMPANY GROWTH FUND...................................................66
SMALL CAP GROWTH FUND.......................................................67
SMALL CAP OPPORTUNITIES FUND................................................72
SMALL CAP VALUE FUND........................................................77
SMALL COMPANY GROWTH FUND...................................................78
FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES.........................................80
STATEMENT OF OPERATIONS.....................................................84
STATEMENTS OF CHANGES IN NET ASSETS.........................................88
FINANCIAL HIGHLIGHTS.......................................................100
NOTES TO FINANCIAL HIGHLIGHTS................................................110
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NOTES TO FINANCIAL STATEMENTS................................................111
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CORE PORTFOLIOS
PORTFOLIO OF INVESTMENTS
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DISCIPLINED GROWTH PORTFOLIO...............................................121
INCOME EQUITY PORTFOLIO....................................................123
INDEX PORTFOLIO............................................................126
INTERNATIONAL PORTFOLIO....................................................140
INTERNATIONAL EQUITY PORTFOLIO.............................................144
LARGE COMPANY GROWTH PORTFOLIO.............................................147
SMALL CAP INDEX PORTFOLIO..................................................149
SMALL CAP VALUE PORTFOLIO..................................................166
SMALL COMPANY GROWTH PORTFOLIO.............................................169
SMALL COMPANY VALUE PORTFOLIO..............................................174
FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES........................................180
STATEMENT OF OPERATIONS....................................................182
STATEMENTS OF CHANGES IN NET ASSETS........................................184
FINANCIAL HIGHLIGHTS.......................................................191
NOTES TO FINANCIAL HIGHLIGHTS................................................192
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NOTES TO FINANCIAL STATEMENTS................................................193
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LIST OF ABBREVIATIONS........................................................198
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NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
STOCK FUNDS
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DEAR VALUED SHAREHOLDER,
For investors in the stock market, the six-month period ended March 31,
2000, was unpredictable and characterized by rapidly shifting markets and
unprecedented volatility. In short, it was a tale of two markets: blue chip,
"Old Economy" stocks versus high-flying, "New Economy" technology-related
stocks.
During this period, 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 remained low for the year.
In contrast, the NASDAQ exceeded the 5,000 barrier led by the performance of
technology-related stocks -- particularly genetics, semiconductor and
communications stocks. For several months, technology reigned, while other
sectors scrambled for attention. That changed when the technology bubble burst
in late March, with a sell-off pounding speculative issues and leaving many
investors concerned about the long-term viability of New Economy stocks.
The slump in blue chip stocks in early 2000 reflected the Federal Reserve
Board's (the Fed) decision to continue to raise interest rates until the
economy slows. The economy's 7.3% annual growth rate in the fourth quarter of
1999 was far above everyone's comfort level. Yet as Federal Reserve Chairman
Alan Greenspan noted, the economy won't slow until consumers spend less, and
that won't happen until the equity market cools.
For blue chip companies dependent upon debt to fund growth, rising rates
create a difficult environment in which to grow earnings. For technology
companies, rising rates have had little impact on their earnings or near-term
prospects. Against this backdrop, the split in the stock market kept widening
until the NASDAQ's downturn.
INVESTING IN AN UPSIDE-DOWN MARKET
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With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
this uncertainty? The first thing to remember is to think long term. Over
time, the market will likely 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 and a diversified portfolio, you won't be as
vulnerable to a downturn in one sector. Chances are that your overall returns
will be 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 more than
$62 billion in mutual fund assets under management (as of March 31, 2000),
Wells Fargo Funds offer a complete array of mutual funds designed to meet
almost any investor's 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
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STOCK FUNDS PERFORMANCE HIGHLIGHTS
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DISCIPLINED GROWTH FUND
INVESTMENT OBJECTIVE
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The Wells Fargo Disciplined Growth Fund (the Fund) seeks to provide capital
appreciation by investing primarily in common stocks of larger companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Smith Asset Management Group
FUND MANAGER
Steve Smith, CFA
INCEPTION DATE
10/15/97
PERFORMANCE HIGHLIGHTS
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The Fund's Institutional Class shares returned 16.07%(1) for the six-month
period ended March 31, 2000. This return trailed that of its benchmark, the
S&P 500 Index(2), which returned 17.51% for the same period. The Fund's
Institutional Class shares distributed no dividend income and $0.25 in capital
gains during the period. Please keep in mind that past performance is no
guarantee of future results.
As sometimes occurs over short-term periods, the Fund's active risk-reduction
measures caused it to underperform the benchmark and its more aggressive peers
during the six months ended March 31, 2000. The Fund avoids companies that are
overvalued, have poor credit quality and/or unacceptably high share-price
volatility. These criteria help reduce the Fund's long-term risk, but they put
the Fund at a disadvantage during a period in which aggressive strategies
excel. Funds that concentrated heavily in technology stocks performed
especially well.
At the same time, however, a majority of the Fund's holdings reported a
positive earnings surprise over the six months ended March 31, 2000. During
the fourth quarter 1999, investors largely ignored earnings trends such as
these and continued to invest in stocks based upon price momentum. This
situation reversed itself in the first quarter 2000 when investors returned
their focus to long-term earnings potential as a primary reason for making
stock selections. This trend has had a positive impact on the Fund's
performance.
STRATEGIC OUTLOOK
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The potential for higher interest rates is likely to play a major factor in
the market over the second quarter and beyond. Many investors expect the
Federal Reserve Board (the Fed) to continue raising interest rates. These
efforts should also slow the stock market's upward trend. If the Fed's actions
are timely and corporate earnings remain strong, the market may not be in for
a protracted contraction. Even if the market remains volatile, the Fund should
be well positioned for an environment in which investors appreciate companies
that can deliver consistent, above-average growth.
2
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PERFORMANCE HIGHLIGHTS STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
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<TABLE>
<CAPTION>
Excluding Sales Charge
---------------------------------------------
6-Months(*) 1-Year Since Inception
<S> <C> <C> <C>
INSTITUTIONAL CLASS 16.07 20.18 12.16
BENCHMARK
S&P 500 INDEX 17.51 17.94
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
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<TABLE>
<S> <C>
P/E (TRAILING 12 MONTHS) 26.1x
P/B 6.9x
MEDIAN MARKET CAP. ($B) 9.1
NUMBER OF HOLDINGS 40
PORTFOLIO TURNOVER 60%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF MARCH 31, 2000)
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<TABLE>
<S> <C>
AMERICAN POWER CONVERSION 3.77%
APPLE COMPUTER, INCORPORATED 3.19%
MORGAN STANLEY DEAN WITTER 3.03%
IVAX CORPORATION 3.01%
SUNGARD DATA SYSTEMS, INCORPORATED 3.00%
EMC CORPORATION 2.98%
APPLIED MATERIALS, INCORPORATED 2.96%
VISHAY INTERTECHNOLOGY 2.88%
ORACLE CORPORATION 2.86%
KNIGHT/TRIMARK GROUP 2.85%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 31%
Financial 16%
Health Care 10%
Consumer Cyclical 7%
Consumer Services 7%
Industrials 6%
Consumer Non-Cyclical 6%
Energy 4%
Basic Materials 3%
Utilities 3%
Commercial Services 3%
Transportation 2%
Telecommunications 2%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO
DISCIPLINED GROWTH FUND- CLASS I S&P 500 INDEX
<S> <C> <C>
10/15/97 $10,000 $10,000
10/31/97 $9,300 $9,666
11/30/97 $9,520 $10,114
12/31/97 $9,539 $10,287
1/31/98 $9,359 $10,401
2/28/98 $10,120 $11,151
3/31/98 $10,580 $11,721
4/30/98 $10,750 $11,841
5/31/98 $10,450 $11,637
6/30/98 $10,750 $12,110
7/31/98 $10,510 $11,981
8/31/98 $8,888 $10,250
9/30/98 $9,349 $10,907
10/31/98 $9,859 $11,794
11/30/98 $10,210 $12,509
12/31/98 $11,141 $13,229
1/31/99 $11,341 $13,786
2/28/99 $10,971 $13,356
3/31/99 $11,031 $13,890
4/30/99 $11,511 $14,428
5/31/99 $11,421 $14,087
6/30/99 $11,801 $14,854
7/31/99 $11,811 $14,390
8/31/99 $11,591 $14,319
9/30/99 $11,421 $13,926
10/31/99 $11,721 $14,808
11/30/99 $11,801 $15,108
12/31/99 $12,317 $15,998
1/31/00 $11,468 $15,195
2/29/00 $11,785 $14,908
3/31/00 $13,257 $16,366
</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 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 Institutional Class shares of the Wells Fargo
Disciplined Growth Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage Performa
Disciplined Growth Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Norwest Advantage Funds were reorganized into the
Wells Fargo Funds. Institutional Class shares are sold without sales charges.
(2) 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.
(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 Disciplined Growth
Fund Institutional Class shares since inception with the S&P 500 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
3
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STOCK FUNDS PERFORMANCE HIGHLIGHTS
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DIVERSIFIED EQUITY FUND
INVESTMENT OBJECTIVE
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The Wells Fargo Diversified Equity Fund (the Fund) seeks to provide long-term
capital appreciation with moderate annual return volatility by diversifying
its investments among different equity investment styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management
Peregrine Capital Management
Smith Asset Management Group
Schroder Investment Management North America
FUND MANAGER
Collectively Managed
INCEPTION DATE
12/31/88
PERFORMANCE HIGHLIGHTS
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The Fund's Class A shares returned 18.94%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the S&P 500 Index(2), which returned 17.51%. The Fund's Class A shares
distributed $0.15 per share in dividend income and $2.67 in capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results.
Driven by excitement over New Economy (high-technology) companies, small-cap
growth stocks outperformed most other segments of the U.S. market over the six
months ended March 31, 2000. Technology, telecommunications and media stocks
rose to new highs in the fourth quarter of 1999 and in the first two months of
2000. To a large extent, the dominance of these companies was a global
phenomenon. New Economy stocks in Europe, Japan and elsewhere led their
respective markets. Technology, biotechnology and some media stocks
subsequently declined in March, but their gains in late 1999 and early 2000
enabled them to stay ahead of other areas of the market for the reporting
period.
In this environment, the Fund's diversification helped it outperform the S&P
500 Index. The relative weakness of the Fund's large-cap value stocks was
offset in part by its small-cap growth positions and international component.
Besides New Economy stocks, many international markets were fueled by positive
economic trends.
STRATEGIC OUTLOOK
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The Fund's diversification across large cap and small cap stocks as well as
value- and growth-oriented stocks should be an advantage if the U.S. market
continues to broaden. Despite recent gains, its relatively narrow rally over
the past few quarters has left some areas of the market comparatively
undervalued. The Fund's international component may also help drive its
performance this year. Although many investors expect the U.S. economy to slow
as U.S. interest rates rise in 2000, the European and Asian economies appear
to be entering an expansion. International markets may also benefit from the
unfolding of shareholder-oriented reforms and increased domestic investment in
Europe and Japan.
--------------------------------------------------------------------------------
(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 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 A, Class B, Class C and Institutional Class
shares of the Wells Fargo Diversified Equity Fund for periods prior to November
8, 1999, reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Diversified Equity Fund, its predecessor
fund. Effective at the close of business November 5, 1999, the Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. Performance shown for the
Class A shares of the Fund prior to May 2, 1996, reflects the performance of the
Institutional Class shares of the Fund adjusted for Class A sales charges.
Performance shown for the Class B shares of the Fund prior to May 6, 1996,
reflects the performance of the Institutional Class shares of the Fund adjusted
for Class B sales charges and expenses. Performance shown for the Class C shares
of the Fund prior to October 1, 1998 reflects the performance of the
Institutional Class shares of the Fund adjusted for Class C sales charges and
expenses. Performance of the Institutional Class shares of the Fund, prior to
November 11, 1994, reflects the performance of a collective investment fund
adjusted to reflect Institutional Class expenses. Norwest Bank Minnesota, N.A.
managed the collective investment fund with an investment objective and
principal investment strategy that were substantially similar to those of the
Fund. The performance for the Fund includes performance of its predecessor
collective investment fund for periods before it became a mutual fund on
November 11, 1994. The collective investment fund's performance was adjusted to
reflect the Fund's 1994 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The collective investment
fund was not registered under the Investment Company Act of 1940 ("1940 Act")
nor subject to certain investment limitations, diversification requirements, and
other restrictions imposed by the 1940 Act or the Internal Revenue Code which,
if applicable, may have adversely affected the performance results. For Class A
shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
4
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 18.94 20.80 23.01 17.49 12.10 13.85 21.56 16.80
CLASS B 18.48 19.88 22.09 16.62 13.48 14.88 21.91 16.62
CLASS C 18.49 19.90 22.16 16.66 17.49 18.90 22.16 16.66
INSTITUTIONAL CLASS 18.94 20.78 23.01 17.49
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76 18.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.93
P/E (TRAILING 12 MONTHS) 31.9x
P/B 5.6x
MEDIAN MARKET CAP. ($B) 20.7
NUMBER OF HOLDINGS 1449
PORTFOLIO TURNOVER 19%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS, INCORPORATED 2.98%
MICROSOFT CORPORATION 2.65%
INTEL CORPORATION 2.40%
LUCENT TECHNOLOGIES, INCORPORATED 1.94%
GENERAL ELECTRIC COMPANY 1.87%
HEWLETT-PACKARD COMPANY 1.50%
PFIZER, INCORPORATED 1.41%
AT&T CORPORATION 1.40%
CHARLES SCHWAB CORPORATION 1.30%
HOME DEPOT, INCORPORATED 1.30%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 25%
International 15%
Financial 14%
Health Care 8%
Consumer Cyclical 7%
Consumer Non-Cyclical 5%
Telecommunications 4%
Commercial Services 4%
Consumer Services 4%
Basic Materials 4%
Energy 4%
Industrials 3%
Utilities 1%
Transportation 1%
Cash 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO DIVERSIFIED WELLS FARGO DIVERSIFIED
EQUITY FUND - CLASS A S&P 500 INDEX EQUITY FUND - CLASS I
<S> <C> <C> <C>
4/1/90 $9,425 $10,000 $10,000
4/30/90 $9,309 $9,751 $9,876
5/31/90 $10,328 $10,701 $10,958
6/30/90 $10,430 $10,629 $11,066
7/31/90 $10,329 $10,595 $10,958
8/31/90 $9,389 $9,637 $9,962
9/30/90 $8,775 $9,168 $9,310
10/31/90 $8,824 $9,129 $9,363
11/30/90 $9,292 $9,719 $9,859
12/31/90 $9,568 $9,990 $10,152
1/31/91 $10,169 $10,425 $10,790
2/28/91 $10,947 $11,171 $11,615
3/31/91 $11,212 $11,441 $11,896
4/30/91 $11,189 $11,468 $11,873
5/31/91 $11,724 $11,963 $12,440
6/30/91 $11,114 $11,415 $11,792
7/31/91 $11,719 $11,947 $12,434
8/31/91 $12,037 $12,230 $12,772
9/30/91 $11,973 $12,026 $12,704
10/31/91 $12,252 $12,187 $12,999
11/30/91 $11,850 $11,696 $12,574
12/31/91 $13,163 $13,034 $13,967
1/31/92 $13,051 $12,791 $13,848
2/29/92 $13,072 $12,957 $13,870
3/31/92 $12,741 $12,705 $13,518
4/30/92 $12,882 $13,078 $13,667
5/31/92 $13,055 $13,142 $13,851
6/30/92 $12,693 $12,946 $13,467
7/31/92 $13,131 $13,475 $13,932
8/31/92 $12,887 $13,199 $13,673
9/30/92 $13,002 $13,354 $13,795
10/31/92 $13,089 $13,400 $13,888
11/30/92 $13,637 $13,857 $14,469
12/31/92 $13,788 $14,027 $14,629
1/31/93 $13,801 $14,144 $14,643
2/28/93 $13,700 $14,337 $14,535
3/31/93 $14,194 $14,639 $15,061
4/30/93 $13,862 $14,285 $14,708
5/31/93 $14,330 $14,668 $15,205
6/30/93 $14,262 $14,711 $15,132
7/31/93 $14,351 $14,651 $15,227
8/31/93 $15,000 $15,207 $15,915
9/30/93 $15,052 $15,091 $15,971
10/31/93 $15,298 $15,403 $16,231
11/30/93 $14,973 $15,256 $15,887
12/31/93 $15,461 $15,440 $16,405
1/31/94 $15,982 $15,965 $16,957
2/28/94 $15,661 $15,532 $16,616
3/31/94 $14,946 $14,855 $15,859
4/30/94 $15,110 $15,045 $16,032
5/31/94 $15,246 $15,292 $16,176
6/30/94 $14,754 $14,917 $15,654
7/31/94 $15,237 $15,407 $16,167
8/31/94 $15,998 $16,039 $16,956
9/30/94 $15,695 $15,647 $16,653
10/31/94 $15,981 $15,999 $16,956
11/30/94 $15,383 $15,416 $16,322
12/31/94 $15,589 $15,644 $16,541
1/31/95 $15,760 $16,050 $16,722
2/28/95 $16,251 $16,675 $17,242
3/31/95 $16,777 $17,166 $17,801
4/30/95 $17,225 $17,671 $18,276
5/31/95 $17,759 $18,376 $18,842
6/30/95 $18,313 $18,803 $19,431
7/31/95 $19,117 $19,426 $20,283
8/31/95 $19,181 $19,474 $20,351
9/30/95 $19,921 $20,296 $21,136
10/31/95 $19,579 $20,223 $20,774
11/30/95 $20,241 $21,110 $21,476
12/31/95 $20,412 $21,517 $21,657
1/31/96 $20,995 $22,248 $22,276
2/29/96 $21,388 $22,455 $22,693
3/31/96 $21,672 $22,671 $22,994
4/30/96 $22,278 $23,004 $23,638
5/31/96 $22,793 $23,595 $24,176
6/30/96 $22,711 $23,685 $24,097
7/31/96 $21,607 $22,638 $22,925
8/31/96 $22,047 $23,116 $23,392
9/30/96 $23,225 $24,415 $24,643
10/31/96 $23,382 $25,089 $24,809
11/30/96 $24,851 $26,983 $26,368
12/31/96 $24,590 $26,449 $26,083
1/31/97 $25,781 $28,099 $27,354
2/28/97 $25,774 $28,321 $27,346
3/31/97 $24,726 $27,160 $26,235
4/30/97 $25,766 $28,779 $27,338
5/31/97 $27,523 $30,537 $29,194
6/30/97 $28,812 $31,896 $30,562
7/31/97 $30,802 $34,432 $32,681
8/31/97 $29,226 $32,503 $31,010
9/30/97 $30,953 $34,281 $32,841
10/31/97 $29,694 $33,136 $31,506
11/30/97 $30,478 $34,671 $32,329
12/31/97 $30,905 $35,267 $32,791
1/31/98 $31,260 $35,655 $33,167
2/28/98 $33,468 $38,226 $35,510
3/31/98 $34,935 $40,183 $37,058
4/30/98 $35,450 $40,593 $37,605
5/31/98 $34,701 $39,894 $36,818
6/30/98 $35,813 $41,514 $37,998
7/31/98 $35,192 $41,074 $37,340
8/31/98 $30,003 $35,139 $31,833
9/30/98 $31,542 $37,391 $33,467
10/31/98 $33,653 $40,431 $35,707
11/30/98 $35,652 $42,881 $37,827
12/31/98 $37,814 $45,351 $40,121
1/31/99 $38,906 $47,261 $41,272
2/28/99 $37,781 $45,786 $40,086
3/31/99 $39,121 $47,618 $41,509
4/30/99 $40,578 $49,460 $43,054
5/31/99 $39,932 $48,293 $42,369
6/30/99 $42,117 $50,920 $44,688
7/31/99 $41,248 $49,330 $43,766
8/31/99 $40,793 $49,086 $43,283
9/30/99 $39,734 $47,741 $42,150
10/31/99 $41,662 $50,763 $44,196
11/30/99 $42,862 $51,793 $45,478
12/31/99 $45,545 $54,844 $48,325
1/31/00 $43,604 $52,091 $46,257
2/29/00 $43,595 $51,106 $46,247
3/31/00 $47,258 $56,104 $50,133
</TABLE>
--------------------------------------------------------------------------------
(2) 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.
(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 Diversified Equity
Fund Class A and Institutional Class shares since inception with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
5
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Diversified Small Cap Fund (the Fund) seeks to provide
long-term capital appreciation with moderate annual return volatility by
diversifying its investments across different small capitalization equity
investment styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management
Peregrine Capital Management
Smith Asset Management Group
FUND MANAGER
Collectively Managed
INCEPTION DATE
12/31/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 19.18%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund underperformed its
benchmark, the Russell 2000 Index(2), which returned 26.84% during the period.
The Fund distributed no dividend income or capital gains during the period.
Please keep in mind past performance is no guarantee of future results.
Growth stocks, especially in the biotechnology, communications and technology
sectors, dominated the small-cap market for much of the fourth quarter 1999
and first quarter 2000. In fact, the more speculative and concept-oriented the
stock, the better it tended to perform. That trend abruptly reversed course in
March, when many highfliers plummeted and value stocks began to outperform. So
strong had growth stocks been in the five months prior, however, that they
still managed to outperform value shares for the reporting period as a whole.
The Fund's performance reflected these trends. As you may know, 50% of the
Fund is allocated to two value-oriented small-cap portfolios. An additional
25% is invested in the Small Cap Index portfolio, half of which consists of
value stocks. The Fund as a whole, therefore, has a slight value tilt, which
led it to underperform more aggressive peers over the reporting period.
In absolute returns, however, the Fund's returns were quite strong. Its
performance was fueled in part by semiconductor and cyclical stocks in its
Small Company Growth portfolio. The Fund's Small Cap Value component also
benefited from superior stock selection in the capital goods and health care
sectors. In addition, 96% of that portfolio's holdings reported a positive
earnings surprise during the first quarter, which drove up their share prices.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The overall outlook for small-cap stocks appears to be favorable. Despite
potentially higher interest rates, corporate earnings growth should remain
healthy. In addition, investors have revisited the long-term earnings
potential of individual companies in making their investment choices, rather
than focusing so intently on share-price momentum.
Although the Fund's dearth of very high-beta stocks led it to underperform
more aggressive peers over part of the reporting period, its diversified
portfolio was a distinct advantage when the market broadened in March. If this
trend continues, the Fund should benefit nicely.
--------------------------------------------------------------------------------
(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 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 Class A, Class B and Institutional Class shares of the
Wells Fargo Diversified Small Cap Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Diversified Small Cap Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Norwest Advantage Funds
were reorganized into the Wells Fargo Funds. Performance shown for the Class A
shares of the Fund prior to October 6, 1998, reflects the performance of the
Institutional Class shares of the Fund adjusted to reflect Class A sales
charges. Performance shown for the Class B shares of the Fund prior to October
1, 1998, reflects the performance of the Institutional Class shares of the Fund
adjusted to reflect Class B sales charges and expenses. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. Class B share performance including sales
charge assumes the maximum contingent-deferred sales charge for the
corresponding time period. Institutional Class shares are sold without sales
charges.
6
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
---------------------------------- ----------------------------------
6-Month* 1-Year Since Inception 6-Month* 1-Year Since Inception
<S> <C> <C> <C> <C> <C> <C>
CLASS A 19.18 31.75 3.23 12.33 24.17 0.55
CLASS B 18.64 30.75 2.55 13.64 25.75 1.25
INSTITUTIONAL CLASS 19.29 32.02 3.32
BENCHMARK
RUSSELL 2000 INDEX 26.84 37.29
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
P/E (TRAILING 12 MONTHS) 19.1x
P/B 2.6x
MEDIAN MARKET CAP. ($B) 0.8
NUMBER OF HOLDINGS 783
PORTFOLIO TURNOVER 40%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
MICHAELS STORES 0.88%
POLYMEDICA CORPORATION 0.86%
THE MONY GROUP, INCORPORATED 0.81%
TECHNITROL, INCORPORATED 0.77%
DOLLAR THRIFTY AUTOMOTIVE 0.75%
ORBOTECH LTD. 0.71%
QUANTA SERVICES, INCORPORATED 0.71%
ELECTROGLAS, INCORPORATED 0.67%
LITTELFUSE, INCORPORATED 0.62%
PINNACLE SYSTEMS, INCORPORATED 0.62%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 24%
Financial 15%
Consumer Cyclical 14%
Health Care 11%
Consumer Services 6%
Commercial Services 5%
Cash 5%
Basic Materials 5%
Industrials 4%
Energy 4%
Consumer Non-Cyclical 2%
Utilities 2%
Transportation 2%
Telecommunications 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO DIVERSIFIED WELLS FARGO DIVERSIFIED
SMALL CAP FUND - CLASS A RUSSELL 2000 INDEX SMALL CAP FUND - CLASS I
<S> <C> <C> <C>
12/31/97 $9,425 $10,000 $10,000
1/31/98 $9,312 $9,842 $9,880
2/28/98 $10,075 $10,569 $10,690
3/31/98 $10,527 $11,005 $11,170
4/30/98 $10,574 $11,065 $11,220
5/31/98 $9,915 $10,469 $10,520
6/30/98 $9,849 $10,491 $10,450
7/31/98 $9,104 $9,641 $9,660
8/31/98 $7,163 $7,769 $7,600
9/30/98 $7,512 $8,377 $7,970
10/31/98 $7,853 $8,719 $8,320
11/30/98 $8,253 $9,176 $8,750
12/31/98 $8,619 $9,744 $9,140
1/31/99 $8,530 $9,873 $9,040
2/28/99 $7,782 $9,074 $8,260
3/31/99 $7,684 $9,215 $8,150
4/30/99 $8,218 $10,041 $8,720
5/31/99 $8,476 $10,187 $8,990
6/30/99 $8,948 $10,648 $9,500
7/31/99 $8,895 $10,356 $9,450
8/31/99 $8,547 $9,973 $9,070
9/30/99 $8,494 $9,975 $9,020
10/31/99 $8,485 $10,016 $9,020
11/30/99 $8,823 $10,614 $9,370
12/31/99 $9,447 $11,815 $10,040
1/31/00 $9,010 $11,625 $9,570
2/29/00 $9,785 $13,544 $10,400
3/31/00 $10,123 $12,652 $10,760
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index, which
measures performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(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 Diversified Small Cap
Fund Class A and Institutional Class shares since inception with the Russell
2000 Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
7
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY INCOME FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Equity Income Fund (the Fund) seeks to provide long-term
capital appreciation and above-average dividend income.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Roberts, CFA
Gary Dunn, CFA
INCEPTION DATE
03/31/89
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 0.04%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund underperformed its
benchmark, the Russell 1000 Value Index(2), which returned 5.94% during the
period. The Fund's Class A shares distributed $0.22 per share in dividend
income and $1.06 in capital gains during the period. Please keep in mind that
past performance is no guarantee of future results.
The Fund's below-market weighting in technology and its emphasis on companies
with reasonable valuations proved to be a detriment during the six months
ended March 31, 2000, given the dominance of expensive technology stocks for
much of the period. In addition, the Fund's holdings in utilities and
consumer-driven companies generally underperformed. A specific example was
Proctor & Gamble, which was hit after the company announced that its earnings
would not meet analysts' expectations. Long-term forecasts for the company are
still positive, however. The weakness of these stocks was offset in part by
the Fund's communications, energy, basic materials and health care holdings.
During the period, the Fund added new positions in some of the
underperforming sectors, such as consumer and financial stocks. The managers
also took advantage of opportunities to diversify the Fund's technology
exposure. This rebalancing should be positive for the Fund if the market
continues to broaden as it did during March.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The U.S. economy is likely to slow in 2000 while economies in Europe and Asia
expand at a quicker pace. The latter trend should be positive for the Fund,
which has exposure to many U.S. companies that derive as much as 50 percent of
their revenue from non-U.S. sources. In addition, any slowdown in the U.S.
economy may obviate the need for more interest-rate hikes--and may in fact
drive rates lower, typically a positive trend for the equity market. Finally,
a continued broadening of the market to previously neglected areas would
benefit the Fund, which remains diversified across industries and individual
holdings that the managers believe offer attractive growth potential at
reasonable valuations.
--------------------------------------------------------------------------------
(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 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 Class A, Class B, Class C and Institutional Class shares
of the Wells Fargo Equity Income Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Income Equity Fund (the accounting
survivor of a merger of the Norwest Advantage Income Equity Fund and the
Stagecoach Diversified Equity Income 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. Performance shown for the
Class A and Class B shares of the Fund prior to May 2, 1996, reflects the
performance of the Institutional Class shares of the Fund adjusted to reflect
Class A and Class B sales charges and expenses, respectively. Performance shown
for the Class C shares of the Fund prior to October 1, 1998 reflects the
performance of the Institutional Class shares of the Fund adjusted to reflect
Class C sales charges and expenses. Performance of the Institutional Class
shares of the Fund, prior to November 11, 1994, reflects the performance of a
collective investment fund adjusted to reflect Institutional Class expenses.
Norwest Bank Minnesota, N.A. managed the collective investment fund with an
investment objective and principal investment strategy that were substantially
similar to those of the Fund. The performance for the Fund includes performance
of its predecessor collective investment fund for periods before it became a
mutual fund on November 11, 1994. The collective investment fund's performance
was adjusted to reflect the Fund's 1994 estimate of its expense ratio for the
first year of operations as a mutual fund, including any applicable sales load
(without giving effect to any fee waivers or expense reimbursements). The
collective investment fund was not registered under the Investment Company Act
of 1940 ("1940 Act") nor subject to certain investment limitations,
diversification requirements, and other restrictions imposed by the 1940 Act or
the Internal Revenue Code which, if applicable, may have adversely affected the
performance results. For Class A shares, the maximum front-end sales charge is
5.75%. The maximum contingent-deferred sales charge for Class B shares is 5.00%.
The maximum contingent-deferred sales charge for Class C shares is 1.00%.
Class B and Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
8
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 0.04 0.56 18.93 15.39 (5.71) (5.22) 17.53 14.70
CLASS B (0.34) (0.19) 18.04 14.53 (5.20) (5.05) 17.83 14.53
CLASS C (0.35) (0.21) 18.01 14.52 (1.32) (1.18) 18.01 14.52
INSTITUTIONAL CLASS 0.16 0.68 18.95 15.40
BENCHMARK
S&P 500 INDEX(3) 17.51 17.94 26.76 18.84
RUSSELL 1000 VALUE
INDEX 5.94 6.34 20.97 15.96
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.85
P/E (TRAILING 12 MO.) 20.1x
P/B 3.7x
MEDIAN MARKET CAP. ($B) 22.8
NUMBER OF HOLDINGS 70
PORTFOLIO TURNOVER 5%
</TABLE>
* A measure of the Fund's sensitivity to market movements. The benchmark beta
is 1.00 by definition.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
HEWLETT-PACKARD COMPANY 4.87%
AT&T CORPORATION 4.10%
LUCENT TECHNOLOGIES, INCORPORATED 3.66%
TYCO INTERNATIONAL LTD. 3.66%
GENERAL ELECTRIC COMPANY 3.44%
IBM CORPORATION 3.28%
PEPSICO 3.27%
ST. PAUL COMPANIES, INCORPORATED 3.06%
EXXON MOBIL CORPORATION 2.83%
TARGET CORPORATION 2.78%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financial 16%
Technology 16%
Basic Materials 9%
Consumer Non-Cyclical 9%
Health Care 9%
Energy 8%
Industrials 8%
Consumer Cyclical 7%
Telecommunications 6%
Consumer Services 5%
Commercial Services 4%
Utilities 3%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO EQUITY WELLS FARGO EQUITY
INCOME FUND - CLASS A S&P 500 INDEX RUSSELL 1000 VALUE INDEX INCOME FUND - CLASS I
<S> <C> <C> <C> <C>
4/1/90 $9,425 $10,000 $10,000 $10,000
4/30/90 $9,278 $9,751 $9,610 $9,844
5/31/90 $10,119 $10,701 $10,408 $10,736
6/30/90 $10,191 $10,629 $10,171 $10,813
7/31/90 $10,227 $10,595 $10,083 $10,851
8/31/90 $9,439 $9,637 $9,197 $10,015
9/30/90 $9,097 $9,168 $8,751 $9,652
10/31/90 $9,101 $9,129 $8,632 $9,656
11/30/90 $9,559 $9,719 $9,230 $10,142
12/31/90 $9,824 $9,990 $9,464 $10,423
1/31/91 $10,220 $10,425 $9,891 $10,843
2/28/91 $10,960 $11,171 $10,549 $11,629
3/31/91 $11,213 $11,441 $10,705 $11,897
4/30/91 $11,248 $11,468 $10,783 $11,934
5/31/91 $11,697 $11,963 $11,184 $12,411
6/30/91 $11,155 $11,415 $10,713 $11,835
7/31/91 $11,538 $11,947 $11,161 $12,242
8/31/91 $11,861 $12,230 $11,363 $12,585
9/30/91 $11,707 $12,026 $11,278 $12,421
10/31/91 $11,823 $12,187 $11,465 $12,544
11/30/91 $11,405 $11,696 $10,877 $12,101
12/31/91 $12,649 $13,034 $11,788 $13,421
1/31/92 $12,308 $12,791 $11,809 $13,059
2/29/92 $12,397 $12,957 $12,098 $13,153
3/31/92 $12,342 $12,705 $11,921 $13,095
4/30/92 $12,741 $13,078 $12,436 $13,519
5/31/92 $12,744 $13,142 $12,497 $13,521
6/30/92 $12,547 $12,946 $12,421 $13,312
7/31/92 $13,156 $13,475 $12,873 $13,958
8/31/92 $12,856 $13,199 $12,478 $13,640
9/30/92 $12,964 $13,354 $12,650 $13,755
10/31/92 $12,895 $13,400 $12,661 $13,682
11/30/92 $13,264 $13,857 $13,077 $14,073
12/31/92 $13,346 $14,027 $13,391 $14,160
1/31/93 $13,241 $14,144 $13,779 $14,049
2/28/93 $13,463 $14,337 $14,260 $14,284
3/31/93 $13,899 $14,639 $14,680 $14,747
4/30/93 $13,702 $14,285 $14,492 $14,538
5/31/93 $14,098 $14,668 $14,784 $14,958
6/30/93 $14,000 $14,711 $15,112 $14,854
7/31/93 $13,978 $14,651 $15,278 $14,831
8/31/93 $14,535 $15,207 $15,830 $15,422
9/30/93 $14,389 $15,091 $15,857 $15,267
10/31/93 $14,465 $15,403 $15,844 $15,347
11/30/93 $14,265 $15,256 $15,514 $15,136
12/31/93 $14,365 $15,440 $15,811 $15,241
1/31/94 $14,754 $15,965 $16,405 $15,654
2/28/94 $14,312 $15,532 $15,846 $15,185
3/31/94 $13,714 $14,855 $15,255 $14,550
4/30/94 $13,908 $15,045 $15,548 $14,757
5/31/94 $14,266 $15,292 $15,728 $15,136
6/30/94 $13,927 $14,917 $15,351 $14,777
7/31/94 $14,316 $15,407 $15,828 $15,190
8/31/94 $15,248 $16,039 $16,284 $16,178
9/30/94 $14,997 $15,647 $15,745 $15,912
10/31/94 $15,291 $15,999 $15,964 $16,224
11/30/94 $14,847 $15,416 $15,320 $15,753
12/31/94 $15,032 $15,644 $15,498 $15,949
1/31/95 $15,473 $16,050 $15,975 $16,417
2/28/95 $16,139 $16,675 $16,608 $17,123
3/31/95 $16,572 $17,166 $16,973 $17,583
4/30/95 $17,077 $17,671 $17,510 $18,119
5/31/95 $17,727 $18,376 $18,245 $18,808
6/30/95 $17,847 $18,803 $18,491 $18,936
7/31/95 $18,304 $19,426 $19,135 $19,421
8/31/95 $18,392 $19,474 $19,405 $19,515
9/30/95 $19,355 $20,296 $20,107 $20,536
10/31/95 $19,267 $20,223 $19,908 $20,442
11/30/95 $20,318 $21,110 $20,916 $21,557
12/31/95 $20,808 $21,517 $21,440 $22,077
1/31/96 $21,543 $22,248 $22,109 $22,857
2/29/96 $21,665 $22,455 $22,277 $22,987
3/31/96 $21,918 $22,671 $22,656 $23,255
4/30/96 $22,234 $23,004 $22,742 $23,590
5/31/96 $22,762 $23,595 $23,027 $24,151
6/30/96 $23,010 $23,685 $23,045 $24,405
7/31/96 $22,090 $22,638 $22,174 $23,438
8/31/96 $22,389 $23,116 $22,808 $23,754
9/30/96 $23,376 $24,415 $23,716 $24,802
10/31/96 $23,817 $25,089 $24,634 $25,270
11/30/96 $25,492 $26,983 $26,420 $27,056
12/31/96 $25,021 $26,449 $26,081 $26,547
1/31/97 $26,257 $28,099 $27,346 $27,851
2/28/97 $26,633 $28,321 $27,748 $28,258
3/31/97 $25,795 $27,160 $26,749 $27,369
4/30/97 $26,627 $28,779 $27,873 $28,251
5/31/97 $27,862 $30,537 $29,431 $29,562
6/30/97 $29,054 $31,896 $30,694 $30,817
7/31/97 $30,977 $34,432 $33,002 $32,858
8/31/97 $29,477 $32,503 $31,827 $31,266
9/30/97 $30,969 $34,281 $33,749 $32,858
10/31/97 $30,008 $33,136 $32,808 $31,840
11/30/97 $31,440 $34,671 $34,258 $33,359
12/31/97 $32,043 $35,267 $35,258 $33,990
1/31/98 $32,087 $35,655 $34,757 $34,045
2/28/98 $34,238 $38,226 $37,096 $36,327
3/31/98 $36,040 $40,183 $39,367 $38,240
4/30/98 $36,371 $40,593 $39,631 $38,581
5/31/98 $35,840 $39,894 $39,044 $38,018
6/30/98 $36,410 $41,514 $39,544 $38,623
7/31/98 $35,371 $41,074 $38,848 $37,530
8/31/98 $30,929 $35,139 $33,067 $32,807
9/30/98 $32,634 $37,391 $34,965 $34,626
10/31/98 $34,955 $40,431 $37,675 $37,079
11/30/98 $36,597 $42,881 $39,431 $38,822
12/31/98 $37,752 $45,351 $40,771 $40,056
1/31/99 $37,646 $47,261 $41,098 $39,944
2/28/99 $37,735 $45,786 $40,518 $40,028
3/31/99 $39,208 $47,618 $41,357 $41,591
4/30/99 $41,231 $49,460 $45,220 $43,747
5/31/99 $41,124 $48,293 $44,722 $43,624
6/30/99 $42,809 $50,920 $46,019 $45,422
7/31/99 $41,671 $49,330 $44,671 $44,214
8/31/99 $40,978 $49,086 $43,013 $43,469
9/30/99 $39,413 $47,741 $41,512 $41,809
10/31/99 $40,501 $50,763 $43,903 $42,963
11/30/99 $40,806 $51,793 $43,561 $43,296
12/31/99 $40,873 $54,844 $43,770 $43,374
1/31/00 $38,812 $52,091 $42,343 $41,197
2/29/00 $35,845 $51,106 $39,197 $38,057
3/31/00 $39,428 $56,104 $43,979 $41,875
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
The Fund is a professionally managed mutual fund. 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 ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Equity Income Fund
Class A and Institutional Class shares since inception with the S&P 500 Index
and the Russell 1000 Value Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
9
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Equity Index Fund (the Fund) seeks to approximate the total
return of the Standard & Poor's 500 Index(1) (the S&P 500 Index).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
INCEPTION DATE
1/25/84
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 16.96%(2) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund underperformed its
benchmark, the S&P 500 Index, which returned 17.51% during the period. The
Fund's Class A shares distributed $0.10 per share in dividend income and $3.19
in capital gains during the period. Please keep in mind that past performance
is no guarantee of future results.
The objective of the Fund 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 the performance 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, however it can hurt
performance. The Fund minimizes the effects of holding cash by hedging its
cash position through investing in S&P 500 Index futures contracts which, in
effect, give the Fund a 100% equity position.
The S&P 500 Index experienced an overall volatile six-month period, although
it was relatively stable during the fourth quarter 1999. In January, the S&P
500 Index dropped substantially as small cap and technology stocks soared in
value. However, the stock market broadened by March, with gains coming from
more than small cap and technology stocks, allowing the S&P 500 Index to end
the six-month period with a very favorable 17.51% return.
--------------------------------------------------------------------------------
(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 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 Class A, Class B and Class O shares of the Wells Fargo
Equity Index Fund for periods prior to November 8, 1999, reflects performance of
the Class A, Class B and Class O shares of the Stagecoach Equity Index Fund, its
predecessor fund. Effective at the close of business November 5, 1999, the
Stagecoach Funds were reorganized into the Wells Fargo Funds. Performance shown
for Class A shares for periods prior to December 12, 1997, reflects performance
of the Stagecoach Corporate Stock Fund, a predecessor portfolio with the same
investment objectives and policies as the Fund. Prior to January 1, 1992,
performance shown for the Class A shares of the Fund reflects performance of the
Corporate Stock Fund of the Wells Fargo Investment Trust for Retirement
Programs, a predecessor portfolio of the Stagecoach Corporate Stock Fund
adjusted for Class A sales charges and expenses. Performance shown for the
Class B shares prior to February 17, 1998, reflects performance of the Class A
shares adjusted for Class B sales charges and expenses. For Class A shares, the
maximum front-end sales charge is 5.75%. The maximum contingent-deferred sales
charge for Class B shares is 5.00%. Class B share performance including sales
charge assumes the maximum contingent-deferred sales charge for the
corresponding time period.
10
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 16.96 17.00 25.56 17.66 10.23 10.27 24.08 16.96
CLASS B 16.52 16.10 24.70 16.93 11.52 11.10 24.54 16.93
CLASS O 17.25 17.53 25.85 17.89
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76 18.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.00
P/E (TRAILING 12 MONTHS) 29.9x
P/B 5.7x
MEDIAN MARKET CAP. ($B) 8.8
5 YEAR EARNINGS GROWTH (HISTORIC) 10.3
NUMBER OF HOLDINGS 504
PORTFOLIO TURNOVER 3%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.30%
CISCO SYSTEMS, INCORPORATED 4.10%
GENERAL ELECTRIC COMPANY 4.00%
INTEL CORPORATION 3.40%
EXXON MOBIL CORPORATION 2.10%
WAL-MART STORES, INCORPORATED 1.90%
ORACLE CORPORATION 1.70%
IBM CORPORATION 1.70%
CITIGROUP, INCORPORATED 1.60%
LUCENT TECHNOLOGIES, INCORPORATED 1.50%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 34%
Financial 15%
Health Care 9%
Consumer Cyclical 7%
Telecommunications 7%
Consumer Non-Cyclical 6%
Consumer Services 5%
Energy 5%
Basic Materials 4%
Industrials 3%
Commercial Services 2%
Cash 1%
Transportation 1%
Utilities 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO EQUITY INDEX FUND CLASS A S&P 500 INDEX
<S> <C> <C>
3/90 $9,425 $10,000
4/90 $9,184 $9,751
5/90 $10,063 $10,701
6/90 $9,988 $10,629
7/90 $9,952 $10,595
8/90 $9,049 $9,637
9/90 $8,609 $9,168
10/90 $8,566 $9,129
11/90 $9,105 $9,719
12/90 $9,350 $9,990
1/91 $9,742 $10,425
2/91 $10,424 $11,171
3/91 $10,658 $11,441
4/91 $10,674 $11,468
5/91 $11,109 $11,963
6/91 $10,602 $11,415
7/91 $11,082 $11,947
8/91 $11,331 $12,230
9/91 $11,137 $12,026
10/91 $11,276 $12,187
11/91 $10,820 $11,696
12/91 $12,036 $13,034
1/92 $11,803 $12,791
2/92 $11,945 $12,957
3/92 $11,707 $12,705
4/92 $12,037 $13,078
5/92 $12,085 $13,142
6/92 $11,900 $12,946
7/92 $12,372 $13,475
8/92 $12,112 $13,199
9/92 $12,243 $13,354
10/92 $12,276 $13,400
11/92 $12,682 $13,857
12/92 $12,830 $14,027
1/93 $12,924 $14,144
2/93 $13,092 $14,337
3/93 $13,354 $14,639
4/93 $13,025 $14,285
5/93 $13,358 $14,668
6/93 $13,385 $14,711
7/93 $13,319 $14,651
8/93 $13,810 $15,207
9/93 $13,695 $15,091
10/93 $13,964 $15,403
11/93 $13,819 $15,256
12/93 $13,973 $15,440
1/94 $14,435 $15,965
2/94 $14,037 $15,532
3/94 $13,417 $14,855
4/94 $13,579 $15,045
5/94 $13,787 $15,292
6/94 $13,444 $14,917
7/94 $13,872 $15,407
8/94 $14,424 $16,039
9/94 $14,065 $15,647
10/94 $14,366 $15,999
11/94 $13,838 $15,416
12/94 $14,031 $15,644
1/95 $14,380 $16,050
2/95 $14,929 $16,675
3/95 $15,354 $17,166
4/95 $15,789 $17,671
5/95 $16,403 $18,376
6/95 $16,767 $18,803
7/95 $17,307 $19,426
8/95 $17,339 $19,474
9/95 $18,048 $20,296
10/95 $17,975 $20,223
11/95 $18,739 $21,110
12/95 $19,082 $21,517
1/96 $19,712 $22,248
2/96 $19,883 $22,455
3/96 $20,058 $22,671
4/96 $20,335 $23,004
5/96 $20,834 $23,595
6/96 $20,898 $23,685
7/96 $19,963 $22,638
8/96 $20,361 $23,116
9/96 $21,487 $24,415
10/96 $22,058 $25,089
11/96 $23,694 $26,983
12/96 $23,215 $26,449
1/97 $24,630 $28,099
2/97 $24,802 $28,321
3/97 $23,770 $27,160
4/97 $25,165 $28,779
5/97 $26,669 $30,537
6/97 $27,854 $31,896
7/97 $30,015 $34,432
8/97 $28,320 $32,503
9/97 $29,840 $34,281
10/97 $28,825 $33,136
11/97 $30,124 $34,671
12/97 $30,617 $35,267
1/98 $30,938 $35,655
2/98 $33,148 $38,226
3/98 $34,819 $40,183
4/98 $35,151 $40,593
5/98 $34,522 $39,894
6/98 $35,922 $41,514
7/98 $35,520 $41,074
8/98 $30,378 $35,139
9/98 $32,306 $37,391
10/98 $34,883 $40,431
11/98 $36,978 $42,881
12/98 $39,090 $45,351
1/99 $40,691 $47,261
2/99 $39,408 $45,786
3/99 $40,956 $47,618
4/99 $42,518 $49,460
5/99 $41,489 $48,293
6/99 $43,755 $50,920
7/99 $42,373 $49,330
8/99 $42,143 $49,086
9/99 $40,969 $47,741
10/99 $43,543 $50,763
11/99 $44,382 $51,793
12/99 $46,954 $54,844
1/00 $44,567 $52,091
2/00 $43,701 $51,106
3/00 $47,918 $56,104
</TABLE>
--------------------------------------------------------------------------------
(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 A shares since inception with the S&P 500 Index. The chart assumes a
hypothetical investment of $10,000 in Class A shares and reflects all operating
expenses while assuming the maximum initial sales charge of 5.75%.
11
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
EQUITY VALUE FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Equity Value Fund (the Fund) seeks to provide investors with
long-term capital appreciation. The Fund invests in common stocks and foreign
and domestic convertible debt securities.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Allen Wisniewski, CFA
Gregg Giboney, CFA
INCEPTION DATE
7/2/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 9.06%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund underperformed its
benchmark, the S&P 500 Index(2), which returned 17.51%, but outperformed the
Russell 1000 Value Index(3), which returned 5.94% during the period. The
Fund's Class A shares distributed $0.03 per share in dividend income and $2.27
in capital gains during the period. Please keep in mind that past performance
is no guarantee of future results.
Like other value-oriented portfolios, the Fund was at a disadvantage during
most of the six-month period ended March 31, 2000. The Fund's absolute
performance did benefit, however, from an overweighting in brokerage firms
involved in bringing technology initial public offerings to market. These
stocks were among the few financial issues to perform well as interest rates
rose over the period. The Fund also benefited from its overweighting in
technology stocks, underweighting in the very weak consumer staples group and
strong showings in its fiber-optic utilities stocks.
In general, few of the Fund's holdings reported disappointing news and many
announced positive surprises. Among the Fund's strongest individual positions
were Montana Power, Media One Group, Apple Computer, Philips Electronics,
Motorola, American Power Conversion and Teva Pharmaceuticals. Its weaker
stocks included Pitney Bowes, Emerson Electric, Sallie Mae and Unisys.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers feel that the long-term outlook for value investing is
favorable, even though investors continue to chase short-term performance
among growth and small-cap stocks. Investors may be slow to embrace value
stocks, given their underperformance over the past few years. There is clearly
room for sentiment to change, however, as the valuations of many growth stocks
are at extreme highs even as many fundamentally sound companies continue to
trade at extremely low and attractive valuations. On the economic front,
higher interest rates and seasonal factors should slow economic growth from
its torrid pace over the past six months, creating a positive environment for
equities in general.
--------------------------------------------------------------------------------
(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 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 Class A, Class B, Class C and Institutional Class shares
of the Wells Fargo Equity Value Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Stagecoach Equity Value Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach Funds were
reorganized into the Wells Fargo Funds. Performance shown for Class A shares for
periods prior to September 6, 1996, reflects performance of the Investor shares
of the Pacifica Equity Value Fund, a predecessor portfolio with the same
investment objective and policies as the Stagecoach Equity Value Fund.
Performance shown for the Class B shares for periods prior to September 6, 1996,
reflects performance of the Investor shares of the predecessor portfolio, with
expenses of the Investor shares adjusted to reflect Class B sales charges and
expenses. Performance shown for the Class C shares for periods prior to
April 1, 1998, reflects performance of the Class B shares, adjusted for Class C
sales charges and expenses. For Class A shares, the maximum front-end sales
charge is 5.75%. The maximum contingent-deferred sales charge for Class B shares
is 5.00%. The maximum contingent- deferred sales charge for Class C shares is
1.00%. Class B and Class C share performance including sales charge assumes the
maximum contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
12
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- -------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 9.06 3.28 15.07 12.93 2.78 (2.65) 13.71 12.24
CLASS B 8.65 2.60 14.38 12.20 4.05 (1.75) 14.15 12.20
CLASS C 8.65 2.60 14.38 12.20 7.73 1.73 14.38 12.20
INSTITUTIONAL CLASS 9.02 3.38 15.29 13.03
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76
RUSSELL 1000 VALUE
INDEX 5.94 6.34 20.97
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.93
P/E (TRAILING 12 MO.) 22.8x
P/B 4.4x
MEDIAN MARKET CAP. ($B) 29.7
NUMBER OF HOLDINGS 66
PORTFOLIO TURNOVER 66%
</TABLE>
* A measure of the Fund's sensitivity to market movements. The benchmark beta
is 1.00 by definition.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CITIGROUP, INCORPORATED 6.30%
EXXON MOBIL CORPORATION 5.20%
IBM CORPORATION 4.80%
MORGAN STANLEY DEAN WITTER 3.70%
COSTCO WHOLESALE CORPORATION 3.60%
AMERICAN INTERNATIONAL GROUP 3.40%
MEDIA ONE GROUP, INCORPORATED 3.20%
MONTANA POWER COMPANY 3.10%
GTE CORPORATION 3.00%
CHASE MANHATTAN CORPORATION 2.90%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Financial 28%
Technology 16%
Energy 14%
Consumer Cyclical 7%
Telecommunications 7%
Basic Materials 6%
Consumer Non-Cyclical 6%
Industrials 5%
Consumer Services 4%
Health Care 3%
Commercial Services 2%
Utilities 2%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO EQUITY WELLS FARGO EQUITY
VALUE FUND CLASS A S&P 500 INDEX RUSSELL 1000 VALUE INDEX VALUE FUND CLASS I
<S> <C> <C> <C> <C>
7/90 $9,425 $10,000 $10,000 $10,000
7/90 $9,378 $9,968 $9,913 $9,950
8/90 $8,360 $9,067 $9,042 $8,870
9/90 $7,992 $8,626 $8,604 $8,480
10/90 $7,908 $8,589 $8,486 $8,390
11/90 $8,477 $9,144 $9,074 $8,994
12/90 $8,771 $9,399 $9,305 $9,306
1/91 $9,030 $9,808 $9,724 $9,581
2/91 $9,604 $10,510 $10,371 $10,190
3/91 $9,882 $10,764 $10,525 $10,485
4/91 $9,776 $10,790 $10,601 $10,373
5/91 $10,084 $11,255 $10,996 $10,699
6/91 $9,603 $10,740 $10,533 $10,188
7/91 $10,019 $11,240 $10,973 $10,630
8/91 $10,260 $11,506 $11,172 $10,886
9/91 $10,154 $11,314 $11,088 $10,773
10/91 $10,222 $11,466 $11,272 $10,846
11/91 $9,600 $11,004 $10,694 $10,186
12/91 $10,595 $12,262 $11,590 $11,241
1/92 $10,745 $12,034 $11,610 $11,400
2/92 $10,944 $12,190 $11,894 $11,611
3/92 $10,804 $11,953 $11,720 $11,463
4/92 $11,064 $12,304 $12,227 $11,739
5/92 $10,934 $12,364 $12,287 $11,601
6/92 $10,725 $12,180 $12,212 $11,379
7/92 $11,047 $12,678 $12,656 $11,720
8/92 $10,674 $12,418 $12,268 $11,325
9/92 $10,846 $12,564 $12,437 $11,507
10/92 $10,977 $12,607 $12,448 $11,647
11/92 $11,452 $13,037 $12,856 $12,151
12/92 $11,712 $13,197 $13,165 $12,426
1/93 $12,149 $13,307 $13,547 $12,890
2/93 $12,347 $13,488 $14,019 $13,100
3/93 $12,826 $13,773 $14,433 $13,609
4/93 $12,617 $13,440 $14,248 $13,387
5/93 $13,035 $13,800 $14,535 $13,831
6/93 $13,193 $13,840 $14,857 $13,997
7/93 $13,340 $13,784 $15,021 $14,153
8/93 $13,959 $14,307 $15,563 $14,811
9/93 $13,907 $14,198 $15,590 $14,755
10/93 $14,139 $14,491 $15,577 $15,002
11/93 $14,097 $14,353 $15,253 $14,957
12/93 $14,735 $14,527 $15,544 $15,634
1/94 $15,368 $15,021 $16,129 $16,305
2/94 $15,213 $14,613 $15,579 $16,141
3/94 $14,550 $13,976 $14,998 $15,438
4/94 $14,610 $14,155 $15,286 $15,501
5/94 $14,754 $14,387 $15,463 $15,654
6/94 $14,449 $14,035 $15,092 $15,330
7/94 $14,762 $14,496 $15,561 $15,662
8/94 $15,231 $15,090 $16,009 $16,160
9/94 $14,949 $14,721 $15,480 $15,860
10/94 $14,864 $15,052 $15,695 $15,771
11/94 $14,332 $14,504 $15,062 $15,206
12/94 $14,484 $14,719 $15,237 $15,367
1/95 $14,328 $15,100 $15,706 $15,202
2/95 $14,884 $15,688 $16,328 $15,792
3/95 $15,272 $16,150 $16,687 $16,204
4/95 $15,689 $16,625 $17,215 $16,646
5/95 $16,170 $17,289 $17,938 $17,157
6/95 $16,275 $17,690 $18,180 $17,268
7/95 $16,942 $18,276 $18,813 $17,976
8/95 $17,008 $18,322 $19,078 $18,045
9/95 $17,427 $19,095 $19,768 $18,490
10/95 $17,046 $19,026 $19,573 $18,100
11/95 $17,795 $19,861 $20,563 $18,908
12/95 $17,977 $20,243 $21,079 $19,112
1/96 $18,306 $20,932 $21,737 $19,476
2/96 $18,539 $21,126 $21,902 $19,724
3/96 $19,033 $21,329 $22,274 $20,264
4/96 $19,418 $21,643 $22,359 $20,689
5/96 $19,707 $22,199 $22,639 $21,011
6/96 $19,543 $22,283 $22,657 $20,836
7/96 $18,673 $21,298 $21,800 $19,895
8/96 $19,129 $21,748 $22,424 $20,380
9/96 $19,969 $22,970 $23,316 $21,292
10/96 $20,947 $23,604 $24,219 $22,353
11/96 $22,619 $25,386 $25,974 $24,137
12/96 $22,712 $24,883 $25,642 $24,228
1/97 $23,589 $26,436 $26,886 $25,181
2/97 $23,957 $26,645 $27,281 $25,556
3/97 $23,090 $25,553 $26,299 $24,642
4/97 $23,763 $27,076 $27,403 $25,359
5/97 $25,603 $28,730 $28,935 $27,323
6/97 $26,598 $30,008 $30,176 $28,397
7/97 $28,747 $32,394 $32,446 $30,692
8/97 $27,705 $30,580 $31,291 $29,596
9/97 $28,790 $32,253 $33,181 $30,751
10/97 $27,295 $31,175 $32,255 $29,154
11/97 $28,163 $32,619 $33,680 $30,081
12/97 $28,917 $33,180 $34,664 $30,882
1/98 $28,755 $33,545 $34,172 $30,729
2/98 $30,969 $35,963 $36,471 $33,094
3/98 $32,732 $37,805 $38,703 $34,999
4/98 $32,389 $38,190 $38,963 $34,614
5/98 $31,866 $37,533 $38,386 $34,074
6/98 $31,716 $39,057 $38,878 $33,907
7/98 $29,981 $38,643 $38,193 $32,051
8/98 $25,752 $33,059 $32,510 $27,528
9/98 $27,080 $35,178 $34,376 $28,959
10/98 $28,803 $38,038 $37,040 $30,803
11/98 $30,018 $40,344 $38,766 $32,123
12/98 $30,849 $42,667 $40,084 $33,018
1/99 $30,494 $44,464 $40,405 $32,618
2/99 $29,411 $43,076 $39,835 $31,458
3/99 $29,834 $44,799 $40,660 $31,919
4/99 $32,205 $46,533 $44,458 $34,457
5/99 $31,395 $45,435 $43,969 $33,611
6/99 $32,596 $47,907 $45,244 $34,885
7/99 $31,251 $46,411 $43,918 $33,465
8/99 $29,450 $46,181 $42,289 $31,536
9/99 $28,255 $44,916 $40,813 $30,269
10/99 $29,782 $47,759 $43,164 $31,883
11/99 $29,683 $48,728 $42,827 $31,798
12/99 $30,180 $51,598 $43,033 $32,345
1/00 $29,454 $49,008 $41,630 $31,542
2/00 $28,143 $48,082 $38,537 $30,137
3/00 $30,814 $52,784 $43,238 $32,999
</TABLE>
--------------------------------------------------------------------------------
(2) 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.
(3) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
The Fund is a professionally managed mutual fund. You cannot invest directly in
an index.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Equity Value Fund
Class A and Institutional Class shares since inception with the S&P 500 Index
and the Russell 1000 Value Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
13
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Growth Fund (the Fund) seeks to earn long-term capital
appreciation by investing primarily in common stocks and preferred stocks, and
debt securities that are convertible into common stocks.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGER
Kelli Hill
INCEPTION DATE
8/2/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 19.21%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the S&P 500 Index(2), which returned 17.51% during the period. The Fund's
Class A shares distributed no dividend income and $3.04 in capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results.
The Fund's outperformance was due primarily to superior stock selection and
its technology holdings. Through the middle of March, technology stocks were
clearly the winner. That was reflected in the performance of several top 10
Fund holdings, including Cisco Systems, Texas Instruments and Intel. Various
segments of the technology sector dominated the market at different times.
Software and services led the advance over the fourth quarter 1999, while
hardware and networking outperformed in the first quarter 2000.
While nothing compared to the performance of technology stocks, both consumer
cyclicals and staples helped drive the Fund in the fourth quarter 1999 before
declining over the first three months of 2000. The Fund continues to favor
high-quality names like Home Depot, Target and Kohls Department Stores, as
well as Colgate Palmolive and Anheuser Busch. Many of the Fund's financial
holdings, including Citigroup, AIG and Chase Manhattan Bank, performed
relatively well over the period. After declining in the fourth quarter 1999 as
interest rates rose, financials sprung back to life during the first quarter
2000.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The outlook for financial markets over the first half of 2000 appears more
subdued than it was during the last half of 1999. The possibility of higher
interest rates in particular is creating some uncertainty for investors.
Earnings visibility will, therefore, play an even more important role in the
Fund's strategy this year. The managers will continue to look for reasonably
priced companies with the potential to deliver earnings surprises and
consistent earnings growth. These characteristics are likely to be much more
important factors for investors in 2000 than they were in 1999, when other
considerations, including share-price momentum, were a major influence. In
this environment, companies that are able to demonstrate solid, visible
earnings growth should be able to command a premium to the overall market.
--------------------------------------------------------------------------------
(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 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 Class A, Class B and Institutional Class shares of the
Wells Fargo Growth Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Institutional Class shares of the
Stagecoach Growth Fund (the accounting survivor of a merger of the Stagecoach
Growth Fund and the Norwest Advantage ValuGrowth Stock 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. Performance
shown for the Class A shares of the Fund for periods prior to January 1, 1992,
reflects performance of the shares of the Select Stock Fund of Wells Fargo
Investment Trust for Retirement Programs, a predecessor portfolio with the same
investment objective and policies as the Fund. Performance shown for the
Class B shares of the Fund for the period from January 1, 1992 to January 1,
1995, reflects performance of the Class A shares of the Fund, with expenses of
the Class A shares adjusted to reflect Class B sales charges and expenses.
Performance shown for the Class B shares of the Fund for periods prior to
January 1, 1992, reflects performance of the shares of the predecessor
portfolio, with expenses adjusted to reflect Class B sales charges and expenses.
Performance shown for the Institutional Class shares of the Fund for the period
from January 1, 1992, to September 6, 1996, reflects performance of the Fund's
Class A shares. For periods prior to January 1, 1992, the performance shown
reflects the performance of the shares of the Select Stock Fund of Wells Fargo
Investment Trust for Retirement Programs, a predecessor portfolio with the same
investment objective and policies as the Fund. For Class A shares, the maximum
front-end sales charge is 5.75%. The maximum contingent-deferred sales charge
for Class B shares is 5.00%. Class B share performance including sales charge
assumes the maximum contingent-deferred sales charge for the corresponding time
period. Institutional Class shares are sold without sales charges.
14
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- -------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 19.21 18.90 22.94 17.52 12.37 12.05 21.50 16.80
CLASS B 18.75 18.01 22.08 16.78 13.75 13.01 21.90 16.78
INSTITUTIONAL CLASS 19.29 19.01 22.99 17.55
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.96
P/E (TRAILING 12 MO.) 37.4x
P/B 5.5x
MEDIAN MARKET CAP. ($B) 116.3
NUMBER OF HOLDINGS 102
PORTFOLIO TURNOVER 45%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS, INCORPORATED 5.74%
MICROSOFT CORPORATION 4.53%
GENERAL ELECTRIC COMPANY 3.70%
INTEL CORPORATION 3.48%
CITIGROUP, INCORPORATED 2.68%
TEXAS INSTRUMENTS, INCORPORATED 2.50%
NORTEL NETWORKS CORPORATION 2.50%
EXXON MOBIL CORPORATION 2.49%
CHASE MANHATTAN CORPORATION 2.29%
AMERICAN INTERNATIONAL GROUP, INCORPORATED 2.24%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Services 2%
Utilities 2%
Basic Materials 3%
Industrials 3%
Consumer Non-Cyclical 6%
Consumer Services 6%
Energy 6%
Health Care 7%
Telecommunications 7%
Consumer Cyclical 8%
Financial 14%
Technology 36%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO GROWTH WELLS FARGO GROWTH
FUND - CLASS A S&P 500 INDEX FUND CLASS I
<S> <C> <C> <C>
8/90 $9,425 $10,000 $10,000
8/90 $9,482 $9,096 $10,060
9/90 $9,500 $8,653 $10,080
10/90 $9,548 $8,617 $10,130
11/90 $9,585 $9,174 $10,170
12/90 $9,698 $9,429 $10,290
1/91 $10,066 $9,840 $10,680
2/91 $10,443 $10,543 $11,080
3/91 $10,566 $10,799 $11,210
4/91 $10,603 $10,824 $11,250
5/91 $11,037 $11,291 $11,710
6/91 $10,500 $10,774 $11,140
7/91 $11,037 $11,276 $11,710
8/91 $11,310 $11,543 $12,000
9/91 $11,197 $11,350 $11,880
10/91 $11,395 $11,503 $12,090
11/91 $10,905 $11,039 $11,570
12/91 $12,102 $12,302 $12,840
1/92 $12,045 $12,073 $12,780
2/92 $12,271 $12,229 $13,020
3/92 $12,030 $11,991 $12,764
4/92 $12,352 $12,343 $13,106
5/92 $12,514 $12,404 $13,277
6/92 $12,215 $12,219 $12,960
7/92 $12,796 $12,718 $13,577
8/92 $12,548 $12,458 $13,314
9/92 $12,735 $12,604 $13,512
10/92 $12,974 $12,648 $13,766
11/92 $13,463 $13,079 $14,284
12/92 $13,729 $13,239 $14,566
1/93 $14,075 $13,350 $14,934
2/93 $13,778 $13,532 $14,619
3/93 $14,052 $13,817 $14,909
4/93 $13,714 $13,483 $14,551
5/93 $14,032 $13,844 $14,888
6/93 $13,769 $13,885 $14,609
7/93 $13,670 $13,829 $14,504
8/93 $14,368 $14,353 $15,245
9/93 $14,364 $14,243 $15,241
10/93 $14,855 $14,538 $15,761
11/93 $14,505 $14,399 $15,389
12/93 $14,888 $14,573 $15,796
1/94 $15,464 $15,069 $16,407
2/94 $15,221 $14,660 $16,150
3/94 $14,350 $14,021 $15,226
4/94 $14,522 $14,201 $15,408
5/94 $14,512 $14,434 $15,397
6/94 $14,183 $14,080 $15,048
7/94 $14,620 $14,542 $15,512
8/94 $15,088 $15,138 $16,008
9/94 $14,899 $14,768 $15,807
10/94 $15,021 $15,100 $15,937
11/94 $14,562 $14,550 $15,450
12/94 $14,844 $14,766 $15,750
1/95 $14,918 $15,149 $15,828
2/95 $15,634 $15,738 $16,588
3/95 $15,967 $16,202 $16,941
4/95 $16,199 $16,679 $17,188
5/95 $16,949 $17,344 $17,983
6/95 $17,357 $17,747 $18,416
7/95 $17,866 $18,335 $18,956
8/95 $18,142 $18,381 $19,249
9/95 $18,765 $19,156 $19,909
10/95 $18,180 $19,088 $19,289
11/95 $18,903 $19,925 $20,056
12/95 $19,135 $20,309 $20,302
1/96 $19,556 $20,999 $20,749
2/96 $20,310 $21,194 $21,549
3/96 $20,355 $21,398 $21,597
4/96 $21,076 $21,712 $22,362
5/96 $21,631 $22,270 $22,951
6/96 $21,161 $22,355 $22,452
7/96 $19,850 $21,367 $21,061
8/96 $20,466 $21,818 $21,714
9/96 $21,518 $23,044 $22,790
10/96 $22,202 $23,680 $23,517
11/96 $23,656 $25,468 $25,057
12/96 $23,291 $24,964 $24,664
1/97 $24,752 $26,521 $26,211
2/97 $24,064 $26,731 $25,492
3/97 $23,208 $25,635 $24,594
4/97 $24,223 $27,163 $25,675
5/97 $25,819 $28,822 $27,379
6/97 $26,406 $30,105 $27,994
7/97 $28,670 $32,498 $30,402
8/97 $26,963 $30,678 $28,596
9/97 $28,058 $32,356 $29,755
10/97 $27,161 $31,276 $28,813
11/97 $27,585 $32,724 $29,273
12/97 $27,728 $33,287 $29,427
1/98 $28,223 $33,653 $29,938
2/98 $29,833 $36,079 $31,651
3/98 $31,251 $37,926 $33,169
4/98 $31,477 $38,313 $33,399
5/98 $30,982 $37,654 $32,875
6/98 $32,516 $39,183 $34,506
7/98 $32,304 $38,768 $34,288
8/98 $27,715 $33,166 $29,418
9/98 $29,037 $35,292 $30,815
10/98 $31,462 $38,161 $33,395
11/98 $33,560 $40,474 $35,628
12/98 $35,831 $42,805 $38,031
1/99 $37,180 $44,607 $39,477
2/99 $35,946 $43,215 $38,166
3/99 $37,714 $44,944 $40,061
4/99 $38,817 $46,683 $41,238
5/99 $37,566 $45,581 $39,912
6/99 $39,788 $48,061 $42,261
7/99 $38,652 $46,561 $41,068
8/99 $38,702 $46,330 $41,113
9/99 $37,615 $45,060 $39,964
10/99 $39,821 $47,912 $42,320
11/99 $40,617 $48,885 $43,165
12/99 $43,389 $51,764 $46,120
1/00 $41,390 $49,166 $44,002
2/00 $41,145 $48,237 $43,729
3/00 $44,841 $52,954 $47,675
</TABLE>
--------------------------------------------------------------------------------
(2) 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.
(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 Growth Fund Class A
and Institutional Class shares since inception with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Class A and Institutional Class
shares and reflects all operating expenses and, for Class A shares, assumes the
maximum initial sales charge of 5.75%.
15
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GROWTH EQUITY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Growth Equity Fund (the Fund) seeks to provide a high level of
long-term capital appreciation with moderate annual return volatility through
investment in three different equity styles.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISORS
Wells Capital Management
Peregrine Capital Management
Smith Asset Management
Schroder Investment Management North America
FUND MANAGER
Collectively Managed
INCEPTION DATE
4/30/89
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 29.33%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the S&P 500 Index(2), which returned 17.51%. The Fund's Class A shares
distributed no dividend income and $5.63 in capital gains during the period.
Please keep in mind that past performance is no guarantee of future results.
Through the fourth quarter of 1999 and first two months of 2000, it seemed
that the more speculative and concept-oriented the stock, the better it
performed. Small-cap technology and communications stocks led the charge,
driven by investors' excitement about the growth potential of so-called New
Economy (high-technology) companies. Many of these same stocks later dropped
sharply in March, but their gains in late 1999 and early 2000 were enough to
keep them well ahead of value-oriented issues for the reporting period.
In this environment, the Growth Equity Fund's diversification led it to
underperform more aggressive peers. Although the Fund's Large Company Growth
Style outperformed its own benchmark, the gains from large company stocks
paled in comparison to those of small-cap growth issues. In addition, the
dominance of growth stocks in the small cap market worked against the Fund's
Diversified Small Cap Style, which has a slight value tilt. These same
characteristics proved to be an advantage for the Fund in March, however. In
addition, the Fund's international portfolios delivered gains throughout the
reporting period, as markets in Europe and Asia rallied on positive economic
news.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The overall outlook for equities appears to be positive moving into the
second quarter and beyond. Although the Federal Reserve Board remains vigilant
against inflation, any slowdown in the economy may obviate the need for
further interest rate increases. Corporate earnings growth should remain
healthy, though perhaps unlikely to accelerate significantly from here. The
downturn in New Economy stocks during March may pave the way for broader
market participation from previously neglected areas. In addition, investors
now appear to be favoring companies that can deliver solid earnings growth,
rather than ventures with exciting concepts but little to no actual results.
If these trends continue, the Fund's diversified approach is likely to have a
distinct advantage over more concentrated, momentum-driven approaches.
--------------------------------------------------------------------------------
(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 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 A, Class B, Class C and Institutional Class
shares of the Wells Fargo Growth Equity Fund for periods prior to November 8,
1999 reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Growth Equity Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Norwest Advantage Funds
were reorganized into the Wells Fargo Funds. Performance shown for the Class A
shares of the Fund prior to May 2, 1996, reflects the performance of the
Institutional Class shares of the Fund adjusted for Class A sales charges.
Performance shown for the Class B shares of the Fund prior to May 6, 1996,
reflects the performance of the Institutional Class shares of the Fund adjusted
for Class B sales charges and expenses. Performance shown for the Class C shares
of the Fund prior to October 1, 1998 reflects the performance of the
Institutional Class shares of the Fund adjusted for Class C sales charges and
expenses. Performance of the Institutional Class shares of the Fund, prior to
November 11, 1994, reflects the performance of a collective investment fund
adjusted to reflect Institutional Class expenses. Norwest Bank Minnesota, N.A.
managed the collective investment fund with an investment objective and
principal investment strategy that were substantially similar to those of the
Fund. The performance for the Fund includes performance of its predecessor
collective investment fund for periods before it became a mutual fund on
November 11, 1994. The collective investment fund's performance was adjusted to
reflect the Fund's 1994 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The collective investment
fund was not registered under the Investment Company Act of 1940 ("1940 Act")
nor subject to certain investment limitations, diversification requirements, and
other restrictions imposed by the 1940 Act or the Internal Revenue Code which,
if applicable, may have adversely affected the performance results. For Class A
shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
16
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 29.33 34.86 21.67 17.84 21.90 27.11 20.24 17.15
CLASS B 28.92 33.87 20.77 16.98 23.92 28.87 20.59 16.98
CLASS C 28.91 33.81 20.95 17.06 27.91 32.81 20.95 17.06
INSTITUTIONAL CLASS 29.52 35.02 21.70 17.86
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76 18.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.90
P/E (TRAILING 12 MONTH) 35.6x
P/B 5.5x
MEDIAN MARKET CAP. ($B) 22.4
NUMBER OF HOLDINGS 968
PORTFOLIO TURNOVER 33%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS, INCORPORATED 3.43%
INTEL CORPORATION 2.71%
MICROSOFT CORPORATION 2.53%
CHARLES SCHWAB CORPORATION 2.13%
NOKIA CORPORATION 1.94%
HOME DEPOT, INCORPORATED 1.77%
ERICSSON 1.73%
GOLDMAN SACHS 1.68%
MEDTRONIC, INCORPORATED 1.56%
SOLECTRON CORPORATION 1.54%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Energy 1%
Consumer Non-Cyclical 1%
Industrials 1%
Utilities 1%
Transportation 1%
Basic Materials 2%
Consumer Services 2%
Cash 3%
Commercial Services 6%
Consumer Cyclical 8%
Health Care 8%
Financial 12%
Technology 24%
International 30%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO GROWTH WELLS FARGO GROWTH
EQUITY FUND - CLASS A S&P 500 INDEX EQUITY FUND - CLASS I
<S> <C> <C> <C>
4/1/90 $9,425 $10,000 $10,000
4/30/90 $9,367 $9,751 $9,938
5/31/90 $10,533 $10,701 $11,175
6/30/90 $10,743 $10,629 $11,398
7/31/90 $10,563 $10,595 $11,208
8/31/90 $9,478 $9,637 $10,057
9/30/90 $8,580 $9,168 $9,103
10/31/90 $8,669 $9,129 $9,198
11/30/90 $9,128 $9,719 $9,685
12/31/90 $9,514 $9,990 $10,094
1/31/91 $10,274 $10,425 $10,901
2/28/91 $11,149 $11,171 $11,829
3/31/91 $11,444 $11,441 $12,142
4/30/91 $11,353 $11,468 $12,046
5/31/91 $11,977 $11,963 $12,707
6/30/91 $11,226 $11,415 $11,911
7/31/91 $12,017 $11,947 $12,750
8/31/91 $12,442 $12,230 $13,201
9/30/91 $12,593 $12,026 $13,362
10/31/91 $13,106 $12,187 $13,905
11/30/91 $12,579 $11,696 $13,346
12/31/91 $13,959 $13,034 $14,811
1/31/92 $14,231 $12,791 $15,099
2/29/92 $14,132 $12,957 $14,994
3/31/92 $13,517 $12,705 $14,342
4/30/92 $13,360 $13,078 $14,175
5/31/92 $13,625 $13,142 $14,457
6/30/92 $13,058 $12,946 $13,855
7/31/92 $13,389 $13,475 $14,206
8/31/92 $13,178 $13,199 $13,981
9/30/92 $13,315 $13,354 $14,128
10/31/92 $13,559 $13,400 $14,386
11/30/92 $14,375 $13,857 $15,252
12/31/92 $14,665 $14,027 $15,559
1/31/93 $14,782 $14,144 $15,684
2/28/93 $14,283 $14,337 $15,155
3/31/93 $14,955 $14,639 $15,868
4/30/93 $14,744 $14,285 $15,644
5/31/93 $15,362 $14,668 $16,299
6/30/93 $15,288 $14,711 $16,221
7/31/93 $15,498 $14,651 $16,443
8/31/93 $16,412 $15,207 $17,414
9/30/93 $16,748 $15,091 $17,770
10/31/93 $17,075 $15,403 $18,116
11/30/93 $16,556 $15,256 $17,566
12/31/93 $17,560 $15,440 $18,632
1/31/94 $18,156 $15,965 $19,264
2/28/94 $17,928 $15,532 $19,022
3/31/94 $16,995 $14,855 $18,032
4/30/94 $17,206 $15,045 $18,255
5/31/94 $17,062 $15,292 $18,103
6/30/94 $16,396 $14,917 $17,396
7/31/94 $16,927 $15,407 $17,959
8/31/94 $17,777 $16,039 $18,861
9/30/94 $17,499 $15,647 $18,567
10/31/94 $17,729 $15,999 $18,811
11/30/94 $16,989 $15,416 $18,025
12/31/94 $17,319 $15,644 $18,375
1/31/95 $17,162 $16,050 $18,209
2/28/95 $17,625 $16,675 $18,701
3/31/95 $18,254 $17,166 $19,368
4/30/95 $18,671 $17,671 $19,810
5/31/95 $19,041 $18,376 $20,202
6/30/95 $19,905 $18,803 $21,120
7/31/95 $21,226 $19,426 $22,521
8/31/95 $21,344 $19,474 $22,646
9/30/95 $21,918 $20,296 $23,255
10/31/95 $21,210 $20,223 $22,504
11/30/95 $21,619 $21,110 $22,938
12/31/95 $21,626 $21,517 $22,945
1/31/96 $22,019 $22,248 $23,362
2/29/96 $22,617 $22,455 $23,996
3/31/96 $23,018 $22,671 $24,422
4/30/96 $24,052 $23,004 $25,519
5/31/96 $24,567 $23,595 $26,066
6/30/96 $24,077 $23,685 $25,546
7/31/96 $22,666 $22,638 $24,049
8/31/96 $23,401 $23,116 $24,829
9/30/96 $24,567 $24,415 $26,066
10/31/96 $24,381 $25,089 $25,869
11/30/96 $25,615 $26,983 $27,177
12/31/96 $25,688 $26,449 $27,255
1/31/97 $26,542 $28,099 $28,161
2/28/97 $26,214 $28,321 $27,813
3/31/97 $25,101 $27,160 $26,632
4/30/97 $25,713 $28,779 $27,273
5/31/97 $28,035 $30,537 $29,745
6/30/97 $29,467 $31,896 $31,265
7/31/97 $31,270 $34,432 $33,178
8/31/97 $30,071 $32,503 $31,897
9/30/97 $32,073 $34,281 $34,030
10/31/97 $30,554 $33,136 $32,409
11/30/97 $30,546 $34,671 $32,409
12/31/97 $30,848 $35,267 $32,730
1/31/98 $31,329 $35,655 $33,230
2/28/98 $33,588 $38,226 $35,638
3/31/98 $34,829 $40,183 $36,944
4/30/98 $35,454 $40,593 $37,617
5/31/98 $34,358 $39,894 $36,444
6/30/98 $35,310 $41,514 $37,464
7/31/98 $34,511 $41,074 $36,617
8/31/98 $28,790 $35,139 $30,547
9/30/98 $29,973 $37,391 $31,802
10/31/98 $31,617 $40,431 $33,546
11/30/98 $33,656 $42,881 $35,709
12/31/98 $35,937 $45,351 $38,130
1/31/99 $37,030 $47,261 $39,290
2/28/99 $35,181 $45,786 $37,328
3/31/99 $36,090 $47,618 $38,292
4/30/99 $37,378 $49,460 $39,658
5/31/99 $36,959 $48,293 $39,214
6/30/99 $39,289 $50,920 $41,675
7/31/99 $38,849 $49,330 $41,220
8/31/99 $38,257 $49,086 $40,591
9/30/99 $37,633 $47,741 $39,919
10/31/99 $39,309 $50,763 $41,708
11/30/99 $41,179 $51,793 $43,692
12/31/99 $45,157 $54,844 $47,936
1/31/00 $43,613 $52,091 $46,297
2/29/00 $46,160 $51,106 $49,012
3/31/00 $48,672 $56,104 $51,702
</TABLE>
--------------------------------------------------------------------------------
(2) 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.
(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 Growth Equity Fund
Class A and Institutional Class shares since inception with the S&P 500 Index.
The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
17
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INDEX FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Index Fund (the Fund) seeks to approximate the total return of
the Standard & Poor's 500 Index(1) (the S&P 500 Index).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
INCEPTION DATE
1/31/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 17.32%(2) for the six-month
period ended March 31, 2000. The Fund slightly underperformed its benchmark,
the S&P 500 Index, which returned 17.51% during the period. The Fund's
Institutional Class shares distributed $0.26 per share in dividend income and
$0.68 in capital gains during the period. Please keep in mind that past
performance is no guarantee of future results.
The objective of the Fund 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 the performance 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, however it can hurt
performance. The Fund minimizes the effects of holding cash by hedging its
cash position through investing in S&P 500 Index futures contracts which, in
effect, give the Fund a 100% equity position.
The S&P 500 Index experienced an overall volatile six-month period, although
it was relatively stable during the fourth quarter 1999. In January, the S&P
500 Index dropped substantially as small-cap and technology stocks soared in
value. However, the stock market broadened by March, with gains coming from
more than small-cap and technology stocks, allowing the S&P 500 Index to end
the six-month period with a very favorable 17.51% return.
--------------------------------------------------------------------------------
(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 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 Institutional Class shares of the Wells Fargo Index
Fund for periods prior to November 8, 1999, reflects performance of the
Institutional Class shares of the Norwest Advantage Index Fund, its predecessor
fund. Effective at the close of business November 5, 1999, the Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. Performance of the
Institutional Class shares of the Fund, prior to November 11, 1994, reflects the
performance of a collective investment fund adjusted to reflect Institutional
Class expenses. Norwest Bank Minnesota, N.A. managed the collective investment
fund with an investment objective and principal investment strategy that were
substantially similar to those of the Fund. The performance for the Fund
includes performance of its predecessor collective investment fund for periods
before it became a mutual fund on November 11, 1994. The collective investment
fund's performance was adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 ("1940 Act") nor subject to certain investment
limitations, diversification requirements, and other restrictions imposed by the
1940 Act or the Internal Revenue Code which, if applicable, may have adversely
affected the performance results. Institutional Class shares are sold without
sales charges.
18
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS 17.32 17.69 26.23 18.31
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76 18.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.00
P/E (TRAILING 12 MONTHS) 29.9x
P/B 5.7x
MEDIAN MARKET CAP. ($B) 8.8
NUMBER OF HOLDINGS 505
PORTFOLIO TURNOVER 5%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.27%
CISCO SYSTEMS, INCORPORATED 4.09%
GENERAL ELECTRIC COMPANY 3.93%
INTEL CORPORATION 3.40%
EXXON MOBIL CORPORATION 2.08%
WAL-MART STORES, INCORPORATED 1.91%
ORACLE CORPORATION 1.70%
IBM CORPORATION 1.64%
CITIGROUP, INCORPORATED 1.54%
LUCENT TECHNOLOGIES, INCORPORATED 1.50%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 33%
Financial 15%
Health Care 9%
Consumer Cyclical 7%
Telecommunications 7%
Consumer Non-Cyclical 6%
Consumer Services 5%
Energy 5%
Basic Materials 4%
Industrials 3%
Commercial Services 2%
Cash 2%
Utilities 1%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO INDEX FUND - CLASS I S&P 500 INDEX
<S> <C> <C>
3/31/90 $10,000 $10,000
4/30/90 $9,749 $9,751
5/31/90 $10,678 $10,701
6/30/90 $10,595 $10,629
7/31/90 $10,543 $10,595
8/31/90 $9,599 $9,637
9/30/90 $9,126 $9,168
10/31/90 $9,091 $9,129
11/30/90 $9,678 $9,719
12/31/90 $9,934 $9,990
1/31/91 $10,422 $10,425
2/28/91 $11,163 $11,171
3/31/91 $11,439 $11,441
4/30/91 $11,472 $11,468
5/31/91 $11,954 $11,963
6/30/91 $11,398 $11,415
7/31/91 $11,916 $11,947
8/31/91 $12,170 $12,230
9/30/91 $11,962 $12,026
10/31/91 $12,109 $12,187
11/30/91 $11,608 $11,696
12/31/91 $12,915 $13,034
1/31/92 $12,702 $12,791
2/29/92 $12,876 $12,957
3/31/92 $12,625 $12,705
4/30/92 $12,985 $13,078
5/31/92 $13,063 $13,142
6/30/92 $12,884 $12,946
7/31/92 $13,408 $13,475
8/31/92 $13,125 $13,199
9/30/92 $13,260 $13,354
10/31/92 $13,309 $13,400
11/30/92 $13,751 $13,857
12/31/92 $13,918 $14,027
1/31/93 $14,032 $14,144
2/28/93 $14,227 $14,337
3/31/93 $14,523 $14,639
4/30/93 $14,128 $14,285
5/31/93 $14,522 $14,668
6/30/93 $14,555 $14,711
7/31/93 $14,505 $14,651
8/31/93 $15,020 $15,207
9/30/93 $14,906 $15,091
10/31/93 $15,162 $15,403
11/30/93 $15,001 $15,256
12/31/93 $15,164 $15,440
1/31/94 $15,675 $15,965
2/28/94 $15,287 $15,532
3/31/94 $14,623 $14,855
4/30/94 $14,800 $15,045
5/31/94 $15,013 $15,292
6/30/94 $14,658 $14,917
7/31/94 $15,137 $15,407
8/31/94 $15,756 $16,039
9/30/94 $15,374 $15,647
10/31/94 $15,696 $15,999
11/30/94 $15,119 $15,416
12/31/94 $15,332 $15,644
1/31/95 $15,722 $16,050
2/28/95 $16,318 $16,675
3/31/95 $16,765 $17,166
4/30/95 $17,240 $17,671
5/31/95 $17,906 $18,376
6/30/95 $18,325 $18,803
7/31/95 $18,906 $19,426
8/31/95 $18,949 $19,474
9/30/95 $19,715 $20,296
10/31/95 $19,622 $20,223
11/30/95 $20,473 $21,110
12/31/95 $20,851 $21,517
1/31/96 $21,561 $22,248
2/29/96 $21,735 $22,455
3/31/96 $21,945 $22,671
4/30/96 $22,257 $23,004
5/31/96 $22,815 $23,595
6/30/96 $22,909 $23,685
7/31/96 $21,894 $22,638
8/31/96 $22,336 $23,116
9/30/96 $23,583 $24,415
10/31/96 $24,227 $25,089
11/30/96 $26,053 $26,983
12/31/96 $25,494 $26,449
1/31/97 $27,104 $28,099
2/28/97 $27,313 $28,321
3/31/97 $26,194 $27,160
4/30/97 $27,752 $28,779
5/31/97 $29,437 $30,537
6/30/97 $30,779 $31,896
7/31/97 $33,186 $34,432
8/31/97 $31,338 $32,503
9/30/97 $33,037 $34,281
10/31/97 $31,927 $33,136
11/30/97 $33,388 $34,671
12/31/97 $33,953 $35,267
1/31/98 $34,325 $35,655
2/28/98 $36,791 $38,226
3/31/98 $38,661 $40,183
4/30/98 $39,050 $40,593
5/31/98 $38,363 $39,894
6/30/98 $39,919 $41,514
7/31/98 $39,489 $41,074
8/31/98 $33,762 $35,139
9/30/98 $35,914 $37,391
10/31/98 $38,827 $40,431
11/30/98 $41,160 $42,881
12/31/98 $43,570 $45,351
1/31/99 $45,308 $47,261
2/28/99 $43,899 $45,786
3/31/99 $45,645 $47,618
4/30/99 $47,392 $49,460
5/31/99 $46,253 $48,293
6/30/99 $48,818 $50,920
7/31/99 $47,299 $49,330
8/31/99 $47,077 $49,086
9/30/99 $45,789 $47,741
10/31/99 $48,681 $50,763
11/30/99 $49,645 $51,793
12/31/99 $52,541 $54,844
1/31/00 $49,889 $52,091
2/29/00 $48,944 $51,106
3/31/00 $53,720 $56,104
</TABLE>
--------------------------------------------------------------------------------
(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 Index Fund
Institutional Class shares since inception with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Institutional Class shares and
reflects all operating expenses.
19
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INTERNATIONAL FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo International Fund (the Fund) seeks to provide long-term
capital appreciation by investing in high quality companies based outside the
United States.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Schroder Investment Management
FUND MANAGER
Michael Perelstein
INCEPTION DATE
7/15/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 25.78%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the MSCI EAFE Index(2), which returned 16.86% during the period. The Fund's
Class A shares distributed no dividend income and $2.39 in capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results.
The Fund's outperformance came from a variety of sources, including stock
selection in Europe, Asia and Latin America, as well as country and sector
allocation. The Fund started the period overweighted in technology,
telecommunications and media, but gradually took profits in these areas and
directed the proceeds to less expensive stocks in the pharmaceuticals, energy,
financial and utilities sectors. This rebalancing helped the Fund to profit
when New Economy (high-technology) stocks performed well and to weather their
decline in March.
The Fund's country allocations also contributed to its outperformance. The
managers underweighted the U.K., a decision that added significant value as
U.K. interest rates rose over the past six months. The Fund was also
underweighted in Japan, a market that was depressed by disappointing economic
news for much of the period.
The Fund's top-performing stocks were in the technology, mobile
telecommunications and media sectors. When these stocks weakened in March, the
Fund benefited from non-tech holdings such as Takeda Chemical, a
pharmaceutical company.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's current positioning reflects the managers' expectations that the
strong level of global economic growth will provide a healthy backdrop for
corporate profits. The managers also believe that investors are
underestimating the potential for higher interest rates in the U.S. and
Europe. Given this risk and the excesses caused by speculation in some areas
of the market, the managers believe a relatively defensive stance is
warranted, at least until some of the risk has dissipated. Accordingly, the
Fund is currently focusing on seeking undervalued opportunities in areas of
the market that investors have largely ignored.
--------------------------------------------------------------------------------
(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 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 A, Class B and Institutional Class shares of
the Wells Fargo International Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage International Fund, its predecessor fund. Effective at the
close of business November 5, 1999, the Norwest Advantage Funds were reorganized
into the Wells Fargo Funds. Performance shown for the Class A shares of the Fund
prior to April 12, 1995, reflects the performance of the Institutional Class
shares of the Fund adjusted to reflect Class A sales charges. Performance shown
for the Class B shares of the Fund prior to May 12, 1995, reflects the
performance of the Institutional Class shares of the Fund adjusted to reflect
Class B sales charges and expenses. Performance of the Institutional Class
shares of the Fund prior to November 11, 1994, reflects the performance of a
collective investment fund adjusted to reflect Institutional Class expenses.
Norwest Bank Minnesota, N.A. managed the collective investment fund with an
investment objective and principal investment strategy that were substantially
similar to those of the Fund. The performance for the Fund includes performance
of its predecessor collective investment fund for periods before it became a
mutual fund on November 11, 1994. The collective investment fund's performance
was adjusted to reflect the Fund's 1994 estimate of its expense ratio for the
first year of operations as a mutual fund, including any applicable sales load
(without giving effect to any fee waivers or expense reimbursements). The
collective investment fund was not registered under the Investment Company Act
of 1940 ("1940 Act") nor subject to certain investment limitations,
diversification requirements, and other restrictions imposed by the 1940 Act or
the Internal Revenue Code which, if applicable, may have adversely affected the
performance results. For Class A shares, the maximum front-end sales charge is
5.75%. The maximum contingent-deferred sales charge for Class B shares is 5.00%.
Class B share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
20
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 25.78 30.34 13.97 10.39 18.55 22.84 12.63 9.74
CLASS B 25.28 29.29 13.12 9.56 20.28 24.29 12.88 9.56
INSTITUTIONAL CLASS 25.90 30.40 14.00 10.40
BENCHMARK
MSCI EAFE 16.86 25.09 12.39 9.39
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.81
P/E (TRAILING 12 MONTHS) 38.3x
P/B 3.0x
MEDIAN MARKET CAP. ($B) 12.8
NUMBER OF HOLDINGS 100
PORTFOLIO TURNOVER 59%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
VODAFONE AIRTOUCH 5.55%
NOVARTIS AG 3.83%
ERICSSON, L.M. 3.71%
ENDESA SA 3.15%
VIVENDI 3.03%
TOTAL FINA SA 2.60%
ALCATEL 2.58%
DEUTSCHE BANK AG 2.47%
ING GROEP N.V. 2.12%
ROYAL DUTCH PETROLEUM 2.06%
</TABLE>
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Continental Europe 45%
Japan 21%
United Kingdom 13%
Cash 10%
Southeast Asia 4%
Canada 2%
Emerging Markets 2%
United States 2%
Australia/New Zealand 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO WELLS FARGO
INTERNATIONAL FUND CLASS A MSCI EAFE INDEX INTERNATIONAL FUND CLASS I
<S> <C> <C> <C>
4/90 $9,425 $10,000 $10,000
4/90 $9,396 $9,921 $9,969
5/90 $10,232 $11,053 $10,856
6/90 $10,498 $10,956 $11,138
7/90 $10,779 $11,110 $11,436
8/90 $9,714 $10,031 $10,306
9/90 $8,430 $8,633 $8,945
10/90 $9,437 $9,978 $10,013
11/90 $9,000 $9,389 $9,549
12/90 $9,014 $9,542 $9,564
1/91 $9,428 $9,851 $10,003
2/91 $9,992 $10,907 $10,602
3/91 $9,400 $10,252 $9,973
4/91 $9,486 $10,353 $10,065
5/91 $9,460 $10,461 $10,037
6/91 $8,969 $9,692 $9,516
7/91 $9,374 $10,168 $9,946
8/91 $9,142 $9,962 $9,699
9/91 $9,563 $10,524 $10,146
10/91 $9,494 $10,673 $10,073
11/91 $9,040 $10,175 $9,592
12/91 $9,440 $10,701 $10,016
1/92 $9,457 $10,473 $10,034
2/92 $9,336 $10,098 $9,906
3/92 $9,042 $9,432 $9,594
4/92 $9,329 $9,476 $9,899
5/92 $9,849 $10,110 $10,450
6/92 $9,607 $9,631 $10,193
7/92 $9,329 $9,384 $9,898
8/92 $9,419 $9,972 $9,994
9/92 $9,260 $9,776 $9,825
10/92 $9,012 $9,263 $9,562
11/92 $8,953 $9,350 $9,500
12/92 $9,058 $9,398 $9,610
1/93 $9,040 $9,397 $9,592
2/93 $9,236 $9,681 $9,799
3/93 $9,749 $10,525 $10,344
4/93 $10,393 $11,524 $11,027
5/93 $10,488 $11,767 $11,127
6/93 $10,488 $11,584 $11,096
7/93 $10,819 $11,989 $11,479
8/93 $11,515 $12,637 $12,218
9/93 $11,634 $12,352 $12,344
10/93 $12,178 $12,733 $12,921
11/93 $11,732 $11,620 $12,448
12/93 $13,156 $12,459 $13,958
1/94 $13,891 $13,512 $14,739
2/94 $13,590 $13,474 $14,419
3/94 $12,983 $12,893 $13,775
4/94 $13,379 $13,440 $14,195
5/94 $13,364 $13,363 $14,180
6/94 $13,219 $13,552 $14,025
7/94 $13,434 $13,682 $14,254
8/94 $13,984 $14,006 $14,837
9/94 $13,660 $13,565 $14,493
10/94 $13,891 $14,017 $14,739
11/94 $13,364 $13,342 $14,179
12/94 $13,253 $13,426 $14,061
1/95 $12,501 $12,911 $13,264
2/95 $12,462 $12,873 $13,222
3/95 $13,166 $13,677 $13,969
4/95 $13,554 $14,191 $14,389
5/95 $13,823 $14,022 $14,674
6/95 $13,870 $13,777 $14,733
7/95 $14,574 $14,635 $15,480
8/95 $14,115 $14,077 $14,993
9/95 $14,527 $14,352 $15,430
10/95 $14,242 $13,966 $15,119
11/95 $14,329 $14,354 $15,220
12/95 $14,800 $14,933 $15,720
1/96 $15,106 $14,994 $16,045
2/96 $15,251 $15,045 $16,190
3/96 $15,525 $15,364 $16,489
4/96 $15,936 $15,811 $16,925
5/96 $15,968 $15,520 $16,959
6/96 $16,089 $15,607 $17,079
7/96 $15,582 $15,151 $16,540
8/96 $15,678 $15,184 $16,643
9/96 $16,001 $15,588 $16,985
10/96 $15,646 $15,429 $16,609
11/96 $16,242 $16,043 $17,250
12/96 $16,235 $15,836 $17,233
1/97 $16,048 $15,282 $17,035
2/97 $16,381 $15,533 $17,389
3/97 $16,471 $15,589 $17,484
4/97 $16,601 $15,671 $17,631
5/97 $17,618 $16,692 $18,701
6/97 $18,432 $17,611 $19,565
7/97 $18,798 $17,897 $19,953
8/97 $17,162 $16,560 $18,218
9/97 $18,098 $17,487 $19,211
10/97 $16,910 $16,142 $17,950
11/97 $16,601 $15,978 $17,622
12/97 $16,732 $16,117 $17,761
1/98 $17,324 $16,853 $18,389
2/98 $18,252 $17,935 $19,374
3/98 $18,992 $18,488 $20,159
4/98 $19,436 $18,637 $20,638
5/98 $19,592 $18,552 $20,795
6/98 $19,469 $18,696 $20,673
7/98 $19,567 $18,891 $20,778
8/98 $17,283 $16,554 $18,345
9/98 $16,773 $16,051 $17,805
10/98 $17,561 $17,728 $18,640
11/98 $18,299 $18,641 $19,424
12/98 $18,841 $19,381 $19,999
1/99 $19,164 $19,329 $20,341
2/99 $18,909 $18,873 $20,080
3/99 $19,427 $19,665 $20,629
4/99 $20,012 $20,466 $21,250
5/99 $19,325 $19,416 $20,521
6/99 $19,987 $20,177 $21,223
7/99 $20,512 $20,782 $21,781
8/99 $20,351 $20,863 $21,601
9/99 $20,131 $21,078 $21,367
10/99 $21,089 $21,868 $22,393
11/99 $22,260 $22,627 $23,635
12/99 $24,456 $24,659 $25,974
1/00 $23,992 $23,093 $25,482
2/00 $25,292 $23,715 $26,871
3/00 $25,320 $24,635 $26,900
</TABLE>
--------------------------------------------------------------------------------
(2) The Morgan Stanley Capital Investment-Europe, Australasia and Far East
(MSCI EAFE) Index presented does not incur expenses and is not available
directly for investment. Had this Index incurred operating expenses, its
performance would have been lower. The Fund is a professionally managed mutual
fund. You cannot invest directly in an index.
(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 International Fund
Class A and Institutional Class shares since inception with the MSCI EAFE Index.
The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
21
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo International Equity Fund (the Fund) seeks to earn total
return, with an emphasis on capital appreciation, over the long term by
investing primarily in equity securities of non-U.S. companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Katherine Schapiro, CFA
Stacey Ho, CFA
INCEPTION DATE
9/24/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 40.65%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund significantly outperformed
its benchmark, the MSCI EAFE Index(2), which returned 16.86% during the
period. The Fund's Class A shares distributed $0.13 per share in dividend
income and $0.08 in capital gains during the period. Please keep in mind that
past performance is no guarantee of future results.
The most striking characteristic of the six-month period ended March 31,
2000, was the rapid rise of technology, media and telecommunications (TMT)
stocks around the globe. Interestingly, it was the performance of individual
stocks and specific industries connected to this theme that influenced the
returns of international markets, rather than the other way around. Markets
comprised of many TMT stocks, such as Sweden, performed especially well.
Reflecting this trend, core holdings in TMT stocks, including News Corp,
Ericsson and Nokia, drove the Fund's performance. New additions to the Fund in
1999 such as Cap Gemini also helped, particularly over the fourth quarter. A
select group of stocks outside the TMT area, including the Ireland-based
airline Ryanair, added to the Fund's returns as well.
The managers took advantage of the TMT rally to take profits on stocks with
high valuations in favor of less expensive holdings in the technology sector
and elsewhere. They remain enthusiastic about TMT companies over the long
term, given the essential role these firms are likely to play in the
restructuring of Old Economy (non-technology) companies.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
In the view of the managers, the potential in the international markets has
never appeared more exciting and hopeful. Forces in both Europe and Japan are
pushing governments toward more corporate-friendly climates. In Europe, there
is pressure on both socialist and rightist governments alike to conform to
European Union market-oriented guidelines and adopt free-market policies. In
Japan, while there seems to be little decisiveness from the top, there is a
grassroots effort led by struggling corporations to drive through reforms that
make sense in today's competitive world market. It may take several years for
these shareholder-oriented trends to strengthen and take hold, but when
established, these reforms should create a powerful foundation for
international equity markets.
--------------------------------------------------------------------------------
(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 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 Class A, Class B and Class C shares of the Wells Fargo
International Equity Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Class C shares of the Stagecoach
International Equity Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Stagecoach Funds were reorganized into the Wells
Fargo Funds. Performance shown for the Class C shares for periods prior to April
1, 1998, reflects performance of the Class B shares of the Stagecoach Fund
adjusted for Class C sales charges and expenses. Performance shown for the
Institutional Class shares for periods prior to November 8, 1999, reflects
performance of the Class A shares, adjusted to reflect the expenses of the
Institutional Class shares. For Class A shares, the maximum front-end sales
charge is 5.75%. The maximum contingent-deferred sales charge for Class B shares
is 5.00%. The maximum contingent-deferred sales charge for Class C shares is
1.00%. Class B and Class C share performance including sales charge assumes the
maximum contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
(2) The Morgan Stanley Capital Investment-Europe, Australasia and Far East
Index (MSCI EAFE) presented does not incur expenses and is not available
directly for investment. Had this Index incurred operating expenses, its
performance would have been lower. The Fund is a professionally managed mutual
fund. You cannot invest directly in an index.
22
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
---------------------------------- ----------------------------------
6-Month* 1-Year Since Inception 6-Month* 1-Year Since Inception
<S> <C> <C> <C> <C> <C> <C>
CLASS A 40.65 54.52 25.95 32.61 45.58 23.02
CLASS B 40.13 53.46 25.12 35.13 48.46 24.27
CLASS C 40.06 53.39 25.10 39.06 52.39 25.10
INSTITUTIONAL CLASS 41.10 55.01 26.11
BENCHMARK
MSCI EAFE 16.86 25.09
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
P/E (TRAILING 12 MONTHS) 45.6x
P/B 4.8x
MEDIAN MARKET CAP. ($B) 28.2
NUMBER OF HOLDINGS 75
PORTFOLIO TURNOVER 20%
</TABLE>
TEN LARGEST EQUITY HOLDINGS(3)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
PHILIPS ELECTRONICS NV 2.50%
ERICSSON, LM ADR (SWEDEN) 2.23%
CHEUNG KONG LIMITED 2.21%
NOKIA CORPORATION ADR (FINLAND) 2.11%
TELEFONOS DE MEXICO SA 2.07%
ARM HOLDINGS PLC ADR (GREAT BRITAIN) 2.07%
STMICROELECTRONICS 2.05%
AMVESCAP PLC 1.73%
SEVEN ELEVEN JAPAN LIMITED 1.67%
DBS GROUP HOLDINGS LIMITED 1.66%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Electronics 15%
Communications 14%
Financial Services 10%
Cash 8%
Media - Broadcasting & Publishing 7%
Banking 5%
Commercial Services 5%
Oil & Gas 5%
Computer Software & Processing 4%
Industrial - Diversified 4%
Pharmaceuticals 4%
Beverages, Food & Tobacco 3%
Insurance 3%
Retailers 3%
Airlines 2%
Automotive 2%
Real Estate 2%
Chemicals 1%
Food Retailers 1%
Forest Products & Paper 1%
Metals & Mining 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO INTERNATIONAL WELLS FARGO INTERNATIONAL
EQUITY FUND - CLASS A MSCI EAFE INDEX EQUITY FUND - CLASS I
<S> <C> <C> <C>
9/24/1997 $9,425 $10,000 $10,000
9/30/1997 $9,510 $10,140 $10,090
10/31/1997 $8,954 $9,360 $9,500
11/30/1997 $9,029 $9,265 $9,580
12/31/1997 $9,116 $9,345 $9,672
1/31/1998 $9,323 $9,772 $9,892
2/28/1998 $9,955 $10,400 $10,562
3/31/1998 $10,417 $10,720 $11,052
4/30/1998 $10,605 $10,807 $11,252
5/31/1998 $10,596 $10,757 $11,242
6/30/1998 $10,746 $10,841 $11,402
7/31/1998 $10,869 $10,954 $11,532
8/31/1998 $9,135 $9,599 $9,692
9/30/1998 $8,823 $9,307 $9,362
10/31/1998 $9,606 $10,280 $10,192
11/30/1998 $10,162 $10,809 $10,782
12/31/1998 $10,577 $11,238 $11,222
1/31/1999 $10,756 $11,208 $11,412
2/28/1999 $10,567 $10,943 $11,212
3/31/1999 $10,897 $11,403 $11,562
4/30/1999 $11,312 $11,867 $12,002
5/29/1999 $10,926 $11,258 $11,592
6/30/1999 $11,548 $11,700 $12,252
7/31/1999 $11,906 $12,051 $12,632
8/31/1999 $11,802 $12,098 $12,522
9/30/1999 $11,972 $12,222 $12,702
10/31/1999 $12,670 $12,681 $13,442
11/30/1999 $14,065 $13,121 $14,933
12/31/1999 $15,988 $14,299 $17,002
1/31/2000 $15,310 $13,391 $16,286
2/29/2000 $16,638 $13,751 $17,697
3/31/2000 $16,839 $14,285 $17,922
</TABLE>
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CONTINENTAL EUROPE 44%
<S> <C>
Japan 21%
United Kingdom 14%
Cash 8%
Southeast Asia 6%
Emerging Markets 5%
Australia/New Zealand 2%
</TABLE>
--------------------------------------------------------------------------------
(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 International Equity
Fund Class A and Institutional Class shares since inception with the MSCI EAFE
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
23
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Large Company Growth Fund (the Fund) seeks to provide
long-term capital growth through investment primarily in large, high-quality
domestic companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Peregrine Capital Management
FUND MANAGERS
John Dale, CFA
Gary Nussbaum, CFA
INCEPTION DATE
12/31/82
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 38.64%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund significantly outperformed
its benchmark, the S&P 500 Index(2), which returned 17.51% during the period.
The Fund's Class A shares distributed no dividend income and $1.60 in capital
gains during the period. Please keep in mind that past performance is no
guarantee of future results.
The Fund's outperformance reflected very positive earnings results for many
of its holdings. While the profits of the average U.S. company grew at a rate
of more than 15 percent over the past year, the companies in which the Fund
invests achieved profit growth in excess of 29 percent. In addition, the
Fund's companies are, on average, expected to grow at three times the rate of
the average U.S. company. These trends helped contribute to the very strong
performance of several top 10 holdings, including Cisco Systems, Intel, Home
Depot, Charles Schwab and Medtronic.
With a vast majority of holdings meeting or exceeding the managers'
expectations, the Fund's turnover has been very low--less than 17 percent on
an annualized basis, compared to a 25 percent 10-year average. Among the few
recent additions to the Fund were Costco Wholesale, the leading membership
club operator. The Fund sold its positions in the Gartner Group and Franklin
Resources over the reporting period to take advantage of potentially more
attractive stocks such as Costco.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers expect continued solid U.S. economic and profit growth
over the next few quarters, even though the vigilant Federal Reserve Board
(the Fed) may continue to raise interest rates. Speculation in some areas of
the market need not have a long-term impact on the vast majority of stocks.
For the most part, the Fund's managers believe that stock market valuations
remain reasonable and U.S. profit growth prospects continue to be healthy,
which should drive stock prices forward. While corporate earnings are not
likely to accelerate from here, the overall outlook for equities appears
positive. If investors continue to shift from focusing on share-price momentum
to corporate earnings prospects when making their investment decisions, the
Fund's holdings should benefit.
--------------------------------------------------------------------------------
(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 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 A, Class B and Institutional Class shares of
the Wells Fargo Large Company Growth Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Large Company Growth Fund, its predecessor fund. Effective
at the close of business November 5, 1999, the Norwest Advantage Funds were
reorganized into the Wells Fargo Funds. Performance shown for the Class A shares
of the Fund prior to October 6, 1998, reflects the performance of the
Institutional Class shares of the Fund adjusted to reflect Class A sales
charges. Performance shown for the Class B shares of the Fund prior to October
1, 1998, reflects the performance of the Institutional Class shares of the Fund
adjusted to reflect Class B sales charges and expenses. Performance shown for
the Class C shares, for periods prior to November 8, 1999, reflects performance
of the Class B shares, adjusted for Class C sales charges and expenses.
Performance of the Institutional Class shares of the Fund, prior to
November 11, 1994, reflects the performance of a collective investment fund
adjusted to reflect Institutional Class expenses. Norwest Bank Minnesota, N.A.
managed the collective investment fund with an investment objective and
principal investment strategy that were substantially similar to those of the
Fund. The performance for the Fund includes performance of its predecessor
collective investment fund for periods before it became a mutual fund on
November 11, 1994. The collective investment fund's performance was adjusted to
reflect the Fund's 1994 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The collective investment
fund was not registered under the Investment Company Act of 1940 ("1940 Act")
nor subject to certain investment limitations, diversification requirements, and
other restrictions imposed by the 1940 Act or the Internal Revenue Code which,
if applicable, may have adversely affected the performance results. For Class A
shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
24
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
----------------------------------- -----------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 38.64 34.06 34.30 23.52 30.67 26.36 32.72 22.79
CLASS B 38.25 33.34 33.40 22.65 33.25 28.34 33.27 22.65
CLASS C 38.24 33.32 33.40 22.65 37.24 32.32 33.40 22.65
INSTITUTIONAL CLASS 38.77 34.34 34.38 23.56
BENCHMARK
S&P 500 INDEX 17.51 17.94 26.76 18.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.18
P/E (TRAILING 12 MONTHS) 53.0x
P/B 10.6x
MEDIAN MARKET CAP. ($B) 46.5
NUMBER OF HOLDINGS 34
PORTFOLIO TURNOVER 5%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
CISCO SYSTEMS, INCORPORATED 9.75%
INTEL CORPORATION 7.71%
MICROSOFT CORPORATION 7.18%
CHARLES SCHWAB CORPORATION 6.06%
HOME DEPOT, INCORPORATED 5.03%
GOLDMAN SACHS 4.77%
NOKIA CORPORATION 4.63%
MEDTRONIC, INCORPORATED 4.42%
SOLECTRON CORPORATION 4.38%
AMERICAN INTERNATIONAL GROUP 4.17%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 45%
Financial 18%
Commercial Services 12%
Health Care 11%
Consumer Cyclical 9%
Consumer Non-Cyclical 2%
Cash 2%
Consumer Services 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO LARGE WELLS FARGO LARGE COMPANY
COMPANY GROWTH FUND CLASS A S&P 500 INDEX GROWTH FUND CLASS I
<S> <C> <C> <C>
4/1/90 $9,425 $10,000 $10,000
4/30/90 $9,423 $9,751 $9,999
5/31/90 $10,742 $10,701 $11,397
6/30/90 $10,964 $10,629 $11,634
7/31/90 $10,530 $10,595 $11,173
8/31/90 $9,581 $9,637 $10,166
9/30/90 $9,047 $9,168 $9,599
10/31/90 $8,833 $9,129 $9,372
11/30/90 $9,609 $9,719 $10,195
12/31/90 $9,876 $9,990 $10,478
1/31/91 $10,850 $10,425 $11,512
2/28/91 $11,750 $11,171 $12,467
3/31/91 $12,331 $11,441 $13,083
4/30/91 $12,226 $11,468 $12,973
5/31/91 $13,222 $11,963 $14,029
6/30/91 $12,560 $11,415 $13,326
7/31/91 $13,548 $11,947 $14,374
8/31/91 $14,123 $12,230 $14,985
9/30/91 $13,721 $12,026 $14,558
10/31/91 $14,325 $12,187 $15,199
11/30/91 $14,434 $11,696 $15,314
12/31/91 $16,495 $13,034 $17,502
1/31/92 $16,136 $12,791 $17,121
2/29/92 $16,041 $12,957 $17,020
3/31/92 $15,518 $12,705 $16,465
4/30/92 $15,265 $13,078 $16,196
5/31/92 $15,541 $13,142 $16,488
6/30/92 $14,823 $12,946 $15,728
7/31/92 $15,538 $13,475 $16,485
8/31/92 $15,154 $13,199 $16,079
9/30/92 $15,411 $13,354 $16,351
10/31/92 $15,774 $13,400 $16,736
11/30/92 $16,800 $13,857 $17,826
12/31/92 $16,800 $14,027 $17,826
1/31/93 $16,671 $14,144 $17,689
2/28/93 $16,008 $14,337 $16,984
3/31/93 $16,587 $14,639 $17,599
4/30/93 $15,178 $14,285 $16,104
5/31/93 $15,923 $14,668 $16,895
6/30/93 $15,718 $14,711 $16,677
7/31/93 $15,861 $14,651 $16,829
8/31/93 $16,444 $15,207 $17,447
9/30/93 $16,598 $15,091 $17,611
10/31/93 $16,846 $15,403 $17,874
11/30/93 $16,402 $15,256 $17,402
12/31/93 $16,740 $15,440 $17,761
1/31/94 $17,354 $15,965 $18,412
2/28/94 $17,190 $15,532 $18,240
3/31/94 $16,424 $14,855 $17,426
4/30/94 $16,325 $15,045 $17,322
5/31/94 $16,484 $15,292 $17,489
6/30/94 $15,548 $14,917 $16,497
7/31/94 $16,323 $15,407 $17,319
8/31/94 $17,036 $16,039 $18,076
9/30/94 $16,731 $15,647 $17,752
10/31/94 $17,110 $15,999 $18,154
11/30/94 $16,387 $15,416 $17,387
12/31/94 $16,561 $15,644 $17,572
1/31/95 $16,901 $16,050 $17,932
2/28/95 $17,323 $16,675 $18,380
3/31/95 $17,836 $17,166 $18,925
4/30/95 $18,304 $17,671 $19,421
5/31/95 $18,873 $18,376 $20,025
6/30/95 $20,240 $18,803 $21,475
7/31/95 $21,231 $19,426 $22,527
8/31/95 $21,424 $19,474 $22,731
9/30/95 $22,333 $20,296 $23,695
10/31/95 $21,644 $20,223 $22,965
11/30/95 $22,085 $21,110 $23,432
12/31/95 $21,403 $21,517 $22,709
1/31/96 $21,968 $22,248 $23,309
2/29/96 $22,996 $22,455 $24,399
3/31/96 $23,255 $22,671 $24,674
4/30/96 $24,209 $23,004 $25,687
5/31/96 $24,978 $23,595 $26,502
6/30/96 $24,645 $23,685 $26,148
7/31/96 $23,274 $22,638 $24,694
8/31/96 $23,524 $23,116 $24,959
9/30/96 $25,710 $24,415 $27,278
10/31/96 $25,506 $25,089 $27,062
11/30/96 $27,127 $26,983 $28,782
12/31/96 $26,778 $26,449 $28,411
1/31/97 $28,925 $28,099 $30,689
2/28/97 $28,271 $28,321 $29,996
3/31/97 $26,265 $27,160 $27,867
4/30/97 $28,317 $28,779 $30,045
5/31/97 $30,454 $30,537 $32,313
6/30/97 $32,060 $31,896 $34,016
7/31/97 $35,019 $34,432 $37,156
8/31/97 $33,087 $32,503 $35,106
9/30/97 $35,392 $34,281 $37,552
10/31/97 $34,057 $33,136 $36,136
11/30/97 $35,103 $34,671 $37,245
12/31/97 $35,708 $35,267 $37,887
1/31/98 $36,646 $35,655 $38,882
2/28/98 $39,551 $38,226 $41,965
3/31/98 $40,570 $40,183 $43,046
4/30/98 $41,629 $40,593 $44,170
5/31/98 $40,287 $39,894 $42,746
6/30/98 $43,959 $41,514 $46,642
7/31/98 $44,050 $41,074 $46,738
8/31/98 $36,696 $35,139 $38,936
9/30/98 $40,147 $37,391 $42,596
10/31/98 $43,089 $40,431 $45,721
11/30/98 $47,182 $42,881 $50,077
12/31/98 $52,838 $45,351 $56,076
1/31/99 $57,144 $47,261 $60,661
2/28/99 $54,739 $45,786 $58,111
3/31/99 $58,133 $47,618 $61,723
4/30/99 $58,376 $49,460 $61,996
5/31/99 $56,339 $48,293 $59,829
6/30/99 $61,295 $50,920 $65,115
7/31/99 $58,298 $49,330 $61,953
8/31/99 $58,443 $49,086 $62,106
9/30/99 $56,213 $47,741 $59,753
10/31/99 $61,062 $50,763 $64,907
11/30/99 $63,293 $51,793 $67,293
12/31/99 $70,252 $54,844 $74,697
1/31/00 $68,445 $52,091 $72,801
2/29/00 $69,726 $51,106 $74,170
3/31/00 $77,935 $56,104 $82,920
</TABLE>
--------------------------------------------------------------------------------
(2) 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.
(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 Large Company Growth
Fund Class A and Institutional Class shares since inception with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
25
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Small Cap Growth Fund (the Fund) seeks long-term capital
appreciation. The Fund invests in growth-oriented common stocks whose market
capitalization falls within the range of the Russell 2000 Index(1).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Tom Zeifang, CFA
Chris Greene
INCEPTION DATE
11/1/94
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 78.49%(2) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the Russell 2000 Growth Index(1), which returned 45.78% during the period. The
Fund's Class A shares distributed no dividend income and $2.56 in capital
gains during the period. Please keep in mind that past performance is no
guarantee of future results. The Fund's six-month performance was attributable
to unusually favorable conditions that may not be sustainable and are not
likely to exist in the future.
The past six-month period was a very positive, though volatile, period for
small-cap growth stocks. Investors' excitement about the potential of
technology, telecommunications and media companies helped drive the market
over much of the period. When these stocks sold off in March, previously
undervalued areas of the market came to the forefront.
The Fund's outperformance was driven largely by superior stock selection. Its
top performers over the reporting period included Micromuse, Broadvision,
Verticalnet, Vignette and Globix. Many other holdings delivered strong
returns, with just a few exceptions including Children's Place, FirstFed and
Profit Recovery Group.
The Fund's managers continue to seek out and invest in companies whose
business models and industry fundamentals they believe are improving. They
sell their positions in companies with deteriorating growth outlooks.
With the advent of the New Economy, the outlook for small cap companies as a
whole appears to be very positive. The New Economy rewards companies able to
adapt to continuous change and creates conditions in which small and mid-cap
companies arguably are best positioned to thrive.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund's managers believe that the small-cap market is now in the midst of
a multi-year relative bull market. The Fund, which has a goal of producing
annualized performance in excess of its benchmark's performance, is seeking to
take advantage of this environment by positioning itself in the stocks they
believe are likely to outperform. The managers believe that weighting the Fund
toward companies with the best prospects for earnings growth will achieve its
objective. This will be especially true if investors continue to shift away
from share-price momentum as the key factor in their decision making and once
again focus on the long-term earnings potential of individual companies.
--------------------------------------------------------------------------------
(1) The Russell 2000 Index is an unmanaged market value weighted index, which
measures performance of the 2,000 companies that are between the 1000(th) and
3000(th) largest in the market. The Russell 2000 Growth Index measures the
performance of those Russell 2000 companies with higher price-to-book ratios and
higher forecasted growth values. 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 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 A, Class B, Class C and Institutional Class
shares of the Wells Fargo Small Cap Growth Fund for periods prior to
November 8, 1999, reflects performance of the Class A, Class B, Class C and
Institutional Class shares of the Stagecoach Small Cap Fund (the accounting
survivor of a merger of the Stagecoach Small Cap Fund, the Stagecoach Strategic
Growth Fund and the Norwest Advantage Small Company Stock 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. Performance
shown for the Class A shares of the Fund for periods prior to September 16,
1996, reflects performance of the shares of the Small Capitalization Growth Fund
for BRP Employee Retirement Plans (an unregistered bank collective investment
fund), a predecessor portfolio with the same investment objective and policies
as the Fund. Performance shown for the Class B shares of the Fund for periods
prior to September 16, 1996, reflects performance of the shares of the
predecessor portfolio, with expenses adjusted to reflect Class B sales charges
and expenses. Performance shown for the Class C shares of the Fund reflects the
performance of the Class B shares, which as discussed above, reflects
performance of the shares of the predecessor portfolio for periods prior to
September 16, 1996, adjusted for Class C sales charges and expenses. For
Class A shares, the maximum front-end sales charge is 5.75%. The maximum
contingent-deferred sales charge for Class B shares is 5.00%. The maximum
contingent-deferred sales charge for Class C shares is 1.00%. Class B and
Class C share performance including sales charge assumes the maximum
contingent-deferred sales charge for the corresponding time period.
Institutional Class shares are sold without sales charges.
26
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- -------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 78.49 134.21 35.57 36.48 68.23 120.74 33.97 35.00
CLASS B 77.96 132.69 34.71 35.62 72.96 127.69 34.59 35.57
CLASS C 77.90 132.64 34.69 35.60 76.90 131.64 34.69 35.60
INSTITUTIONAL CLASS 78.77 135.59 36.68 37.56
BENCHMARK
RUSSELL 2000 GROWTH
INDEX 45.78 59.05 19.84
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.93
P/E (TRAILING 12 MO.) 36.2x
MEDIAN MARKET CAP. ($B) 1.5
NUMBER OF HOLDINGS 153
PORTFOLIO TURNOVER 37%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
SANDISK CORPORATION 2.15%
TSI INTERNATIONAL SOFTWARE 1.77%
VERTICALNET, INCORPORATED 1.74%
VIGNETTE CORPORATION 1.72%
MERCURY INTERACTIVE CORPORATION 1.67%
ASYST TECHNOLOGIES, INCORPORATED 1.58%
LAM RESEARCH CORPORATION 1.39%
MARINE DRILLING CO., INCORPORATED 1.35%
TUT SYSTEMS, INCORPORATED 1.27%
HELMERICH & PAYNE, INCORPORATED 1.27%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 49%
Health Care 11%
Commercial Services 8%
Financial 7%
Telecommunications 6%
Cash 6%
Energy 5%
Consumer Cyclical 5%
Consumer Services 2%
Industrials 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL WELLS FARGO SMALL
CAP GROWTH FUND - CLASS A RUSSELL 2000 GROWTH INDEX CAP GROWTH FUND - CLASS I
<S> <C> <C> <C>
Inception $9,425 $10,000 $10,000
Nov-94 $9,548 $9,595 $10,120
Dec-94 $9,943 $9,822 $10,560
Jan-95 $9,972 $9,623 $10,590
Feb-95 $10,518 $10,067 $11,170
Mar-95 $11,074 $10,362 $11,770
Apr-95 $11,385 $10,518 $12,100
May-95 $11,631 $10,656 $12,370
Jun-95 $12,856 $11,390 $13,670
Jul-95 $14,260 $12,277 $15,170
Aug-95 $14,288 $12,428 $15,200
Sep-95 $15,174 $12,684 $16,150
Oct-95 $14,703 $12,060 $15,650
Nov-95 $16,098 $12,592 $17,150
Dec-95 $16,814 $12,872 $17,910
Jan-96 $17,144 $12,765 $18,260
Feb-96 $18,134 $13,347 $19,320
Mar-96 $18,963 $13,611 $20,210
Apr-96 $21,489 $14,657 $22,910
May-96 $23,148 $15,408 $24,680
Jun-96 $21,404 $14,407 $22,830
Jul-96 $18,266 $12,648 $19,490
Aug-96 $20,217 $13,584 $21,580
Sep-96 $20,649 $14,283 $22,450
Oct-96 $19,260 $13,668 $20,930
Nov-96 $19,711 $14,048 $21,430
Dec-96 $20,327 $14,322 $22,110
Jan-97 $20,631 $14,680 $22,440
Feb-97 $18,773 $13,793 $20,430
Mar-97 $17,457 $12,819 $19,010
Apr-97 $16,519 $12,670 $18,000
May-97 $20,134 $14,575 $21,940
Jun-97 $21,771 $15,069 $23,730
Jul-97 $22,636 $15,840 $24,690
Aug-97 $23,353 $16,316 $25,470
Sep-97 $25,873 $17,618 $28,230
Oct-97 $24,016 $16,559 $26,210
Nov-97 $23,151 $16,165 $25,280
Dec-97 $22,582 $16,174 $24,668
Jan-98 $22,211 $15,959 $24,275
Feb-98 $23,704 $17,369 $25,921
Mar-98 $25,668 $18,096 $28,078
Apr-98 $25,598 $18,207 $28,013
May-98 $23,574 $16,883 $25,812
Jun-98 $24,295 $17,055 $26,618
Jul-98 $22,111 $15,631 $24,243
Aug-98 $16,571 $12,023 $18,174
Sep-98 $17,893 $13,243 $19,634
Oct-98 $17,893 $13,934 $19,645
Nov-98 $19,246 $15,015 $21,138
Dec-98 $21,233 $16,374 $23,339
Jan-99 $22,371 $17,111 $24,588
Feb-99 $19,977 $15,545 $21,973
Mar-99 $21,656 $16,099 $23,834
Apr-99 $23,693 $17,520 $26,084
May-99 $24,267 $17,548 $26,732
Jun-99 $26,769 $18,473 $29,501
Jul-99 $27,094 $17,902 $29,890
Aug-99 $26,791 $17,233 $29,548
Sep-99 $28,416 $17,565 $31,410
Oct-99 $32,338 $18,015 $35,769
Nov-99 $37,032 $19,919 $40,968
Dec-99 $46,438 $23,431 $51,390
Jan-00 $47,053 $23,213 $52,072
Feb-00 $58,399 $28,614 $64,642
Mar-00 $50,721 $25,607 $56,150
</TABLE>
--------------------------------------------------------------------------------
(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 Small Cap Growth Fund
Class A and Institutional Class shares since inception with the Russell 2000
Growth Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
27
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Small Cap Opportunities Fund (the Fund) seeks to provide
long-term capital appreciation. Current income will be incidental to the
objective of capital appreciation.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Schroder Investment Management
FUND MANAGER
Ira Unschuld
INCEPTION DATE
8/1/93
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Class A shares returned 33.12%(1) for the six-month period ended
March 31, 2000, excluding sales charges. The Fund outperformed its benchmark,
the Russell 2000 Index(2), which returned 26.84% during the period. The Fund's
Class A shares distributed no dividend income or capital gains during the
period. Please keep in mind that past performance is no guarantee of future
results. The Fund's six-month performance was attributable to unusually
favorable conditions that may not be sustainable and are not likely to exist
in the future.
Strong performance from the Fund's energy, utilities, basic materials,
transportation and financial holdings helped it outpace the Russell 2000 Index
over the reporting period. Most of this outperformance came at the end of the
period, when investors turned to fundamentals and away from the concept-stock
focus that had dominated the market from December through February. During
that period enthusiasm for technology and biotechnology stocks had driven the
market to record highs, even as the Federal Reserve Board (the Fed) raised
interest rates three times to slow the economy's rapid expansion and head off
potential inflation. As investors returned to companies with strong earnings
prospects and other solid fundamentals in March, the Fund's diversification
and focus on more reasonably priced stocks helped it outperform.
The Fund's strongest holdings over the reporting period were Amphenol,
Pinnacle Holdings, Symantec and Symbol Technologies. Its weaker stocks
included Shopko Stores, Hollywood Entertainment, Papa Johns International, SLI
and Amerisource Health.
As always, the Fund's managers continue to seek out companies with strong
fundamentals that they believe are undervalued relative to their earnings
growth prospects. If the market continues to broaden, they are confident that
this strategy will be rewarded.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Many investors expect U.S. GDP (gross domestic product) to slow over the
second half of 2000. Given the Fed's vigilant stance against inflation,
however, interest rates are likely to be tightened again before the year is
out. Partly as a result, the Fund is currently underweighted in financials and
high-multiple stocks, which may continue to deflate. The Fund should continue
to outperform if interest rates remain stable or increase and investors remain
focused on the earnings power of individual companies rather than share-price
momentum as in quarters past. In addition, the Fund's overweighting in energy
should benefit from increased demand for crude oil brought on by strong global
growth.
--------------------------------------------------------------------------------
(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 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 Class A, Class B and Institutional Class shares of the
Wells Fargo Small Cap Opportunities Fund for periods prior to November 8, 1999
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Small Cap Opportunities Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Norwest Advantage Funds
were reorganized into the Wells Fargo Funds. Performance shown for the Class A
shares of the Fund prior to October 9, 1996, reflects the performance of the
Institutional Class shares of the Fund adjusted for Class A sales charges.
Performance shown for the Class B shares of the Fund prior to November 8, 1996,
reflects the performance of the Institutional Class shares of the Fund adjusted
for Class B sales charges and expenses. For Class A shares, the maximum
front-end sales charge is 5.75%. The maximum contingent-deferred sales charge
for Class B shares is 5.00%. Class B share performance including sales charge
assumes the maximum contingent-deferred sales charge for the corresponding time
period. Institutional Class shares are sold without sales charges.
28
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge Including Sales Charge
------------------------------------------- -------------------------------------------
6-Month* 1-Year 5-Year Since Inception 6-Month* 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 33.12 46.80 21.14 19.77 25.47 38.36 19.71 18.71
CLASS B 32.65 45.59 20.23 18.88 27.65 40.59 20.04 18.88
INSTITUTIONAL CLASS 33.22 46.91 21.16 19.79
BENCHMARK
RUSSELL 2000 INDEX 26.84 37.29 17.24
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.85
P/E (TRAILING 12 MO.) 26.4x
P/B 3.7x
MEDIAN MARKET CAP. ($B) 1.3
NUMBER OF HOLDINGS 114
PORTFOLIO TURNOVER 82%
</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 MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
TEKTRONIX, INCORPORATED 1.83%
PERKIN ELMER, INCORPORATED 1.75%
SYMANTEC CORPORATION 1.63%
AMPHENOL CORPORATION 1.56%
INTEGRATED DEVICE 1.44%
SYBRON INTERNATIONAL CORPORATION 1.41%
HANOVER COMPRESSOR COMPANY 1.40%
UNIVERSAL HEALTH SERVICES 1.36%
MONTANA POWER COMPANY 1.36%
SCHOOL SPECIALTY, INCORPORATED 1.34%
</TABLE>
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 30%
Health Care 12%
Commercial Services 11%
Cash 10%
Energy 8%
Consumer Cyclical 6%
Financial 6%
Industrials 5%
Consumer Services 4%
Basic Materials 2%
Utilities 2%
Telecommunications 2%
Consumer Non-Cyclical 1%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(5)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL CAP WELLS FARGO SMALL CAP
OPPORTUNITIES FUND - CLASS A RUSSELL 2000 INDEX OPPORTUNITIES FUND - CLASS I
<S> <C> <C> <C>
8/1/93 $9,425 $10,000 $10,000
8/31/93 $9,755 $10,432 $10,350
9/30/93 $10,198 $10,726 $10,820
10/31/93 $10,358 $11,002 $10,990
11/30/93 $10,094 $10,640 $10,710
12/31/93 $10,558 $11,004 $11,202
1/31/94 $10,985 $11,349 $11,656
2/28/94 $11,128 $11,308 $11,807
3/31/94 $10,577 $10,711 $11,222
4/30/94 $10,729 $10,775 $11,384
5/31/94 $10,691 $10,654 $11,343
6/30/94 $10,501 $10,292 $11,142
7/31/94 $10,625 $10,460 $11,273
8/31/94 $11,232 $11,043 $11,918
9/30/94 $10,995 $11,007 $11,666
10/31/94 $11,213 $10,964 $11,897
11/30/94 $10,729 $10,521 $11,384
12/31/94 $11,028 $10,804 $11,701
1/31/95 $11,077 $10,668 $11,753
2/28/95 $11,668 $11,111 $12,380
3/31/95 $12,022 $11,303 $12,756
4/30/95 $12,337 $11,553 $13,090
5/31/95 $12,613 $11,752 $13,383
6/30/95 $13,155 $12,362 $13,957
7/31/95 $14,248 $13,074 $15,117
8/31/95 $14,779 $13,345 $15,681
9/30/95 $15,291 $13,584 $16,224
10/31/95 $14,907 $12,976 $15,817
11/30/95 $15,724 $13,521 $16,684
12/31/95 $16,441 $13,878 $17,444
1/31/96 $16,362 $13,863 $17,360
2/29/96 $16,810 $14,296 $17,835
3/31/96 $17,705 $14,587 $18,785
4/30/96 $18,824 $15,368 $19,973
5/31/96 $19,944 $15,973 $21,160
6/30/96 $19,283 $15,317 $20,460
7/31/96 $17,828 $13,980 $18,916
8/31/96 $18,377 $14,792 $19,498
9/30/96 $19,429 $15,370 $20,614
10/31/96 $19,283 $15,133 $20,472
11/30/96 $19,921 $15,757 $21,148
12/31/96 $20,150 $16,170 $21,391
1/31/97 $20,575 $16,493 $21,831
2/28/97 $20,564 $16,094 $21,831
3/31/97 $19,802 $15,334 $21,022
4/30/97 $19,870 $15,377 $21,094
5/31/97 $22,211 $17,087 $23,577
6/30/97 $23,510 $17,820 $24,944
7/31/97 $24,630 $18,649 $26,144
8/31/97 $25,179 $19,076 $26,715
9/30/97 $26,892 $20,472 $28,545
10/31/97 $25,671 $19,574 $27,238
11/30/97 $25,470 $19,447 $27,036
12/31/97 $25,677 $19,787 $27,256
1/31/98 $25,161 $19,474 $26,695
2/28/98 $26,860 $20,913 $28,498
3/31/98 $28,524 $21,775 $30,264
4/30/98 $28,558 $21,895 $30,300
5/31/98 $27,089 $20,715 $28,754
6/30/98 $27,124 $20,758 $28,790
7/31/98 $25,264 $19,077 $26,805
8/31/98 $20,305 $15,372 $21,544
9/30/98 $20,822 $16,576 $22,092
10/31/98 $21,591 $17,252 $22,908
11/30/98 $22,888 $18,156 $24,284
12/31/98 $23,284 $19,280 $24,704
1/31/99 $22,824 $19,536 $24,216
2/28/99 $21,353 $17,954 $22,655
3/31/99 $21,364 $18,234 $22,667
4/30/99 $22,778 $19,868 $24,179
5/31/99 $23,559 $20,158 $25,009
6/30/99 $25,122 $21,069 $26,655
7/31/99 $24,743 $20,491 $26,264
8/31/99 $23,467 $19,733 $24,911
9/30/99 $23,559 $19,737 $24,996
10/31/99 $23,628 $19,818 $25,070
11/30/99 $24,938 $21,001 $26,472
12/31/99 $26,501 $23,379 $28,118
1/31/00 $26,272 $23,002 $27,886
2/29/00 $28,271 $26,800 $30,020
3/31/00 $31,363 $25,034 $33,300
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index, which
measures performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(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 Small Cap
Opportunities Fund Class A and Institutional Class shares since inception with
the Russell 2000 Index. The chart assumes a hypothetical investment of $10,000
in Class A and Institutional Class shares and reflects all operating expenses
and, for Class A shares, assumes the maximum initial sales charge of 5.75%.
29
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Small Cap Value Fund (the Fund) seeks capital appreciation by
investing primarily in common stocks of smaller companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Smith Asset Management Group
FUND MANAGER
Steve Smith, CFA
INCEPTION DATE
10/15/97
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 18.45%(1) for the six-month
period ended March 31, 2000. The Fund underperformed its benchmark, Russell
2000 Index(2), which returned 26.84% during the period. The Fund's
Institutional Class shares distributed no dividend income or capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results. The Fund's six-month performance was attributable to
unusually favorable conditions that may not be sustainable and are not likely
to exist in the future.
The Fund focuses on undervalued companies that are expected to report a
succession of positive earnings surprises. During the fourth quarter of 1999,
investors largely ignored earnings and invested in stocks based upon their
share-price momentum. This situation reversed itself in the first quarter of
2000, when investors once again returned to the long-term earnings potential
of individual companies to guide their stock selections.
As a result, the Fund underperformed the broader Russell 2000 Index but
outpaced the Russell 2000 Value Index(2) over the reporting period. Superior
stock selection among the more-attractively valued technology and health care
issues drove this performance. The Fund's modest underweightings in basic
materials and energy also helped. In addition, a majority of the Fund's
holdings reported a positive earnings surprise. One example was PolyMedica,
which rose 163% on the strength of two 15% positive earnings surprises and in
tandem with the strength of the biotechnology sector.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Into the second quarter and beyond, the Federal Reserve Board (the Fed) may
continue to raise interest rates. These efforts should slow the stock market's
upward trend, but if the Fed is timely and corporate earnings remain strong,
the markets may stay on an even footing. The S&P 500 Index's(3) operating
earnings are likely to grow at a year-over-year rate of more than 15% during
the second and third quarter, providing support for the stock market in spite
of possible interest rate hikes. Even if the market remains volatile, the Fund
should be well positioned for an environment in which companies that can
deliver consistent, above-average growth are considered the most attractive
investment opportunities.
--------------------------------------------------------------------------------
(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 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 Institutional Class shares of the Wells Fargo Small Cap
Value Fund for periods prior to November 8, 1999 reflects performance of the
Institutional Class shares of the Norwest Advantage Performa Small Cap Value
Fund, its predecessor fund. Effective at the close of business November 5, 1999,
the Norwest Advantage Funds were reorganized into the Wells Fargo Funds.
Institutional Class shares are sold without sales charges.
30
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
----------------------------------
6-Month* 1-Year Since Inception
<S> <C> <C> <C>
INSTITUTIONAL CLASS 18.45 38.08 0.37
BENCHMARK
RUSSELL 2000 INDEX 26.84 37.29
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 0.98
P/E (TRAILING 12 MO.) 18.6X
P/B 3.7X
MEDIAN MARKET CAP. ($B) 0.8
NUMBER OF HOLDINGS 58
PORTFOLIO TURNOVER 63%
</TABLE>
* A measure of the Fund's sensitivity to market movements. The benchmark beta
is 1.00 by definition.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
POLYMEDICA CORPORATION 3.42%
QUANTA SERVICES, INCORPORATED 2.80%
LITTELFUSE, INCORPORATED 2.47%
HOT TOPIC, INCORPORATED 2.22%
TALBOTS, INCORPORATED 2.22%
C&D TECHNOLOGIES, INCORPORATED 2.15%
CABLE DESIGN TECHNOLOGIES 2.14%
APPLIED SCIENCE & TECHNOLOGY 2.14%
IN FOCUS SYSTEMS, INCORPORATED 2.12%
VINTAGE PETROLEUM, INCORPORATED 2.12%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Cyclical 26%
Technology 23%
Financial 14%
Consumer Services 8%
Industrials 6%
Cash 6%
Health Care 5%
Basic Materials 5%
Commercial Services 3%
Energy 2%
Consumer Non-Cyclical 1%
Transportation 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL CAP
VALUE FUND - CLASS I RUSSELL 2000 INDEX
<S> <C> <C>
10/15/97 $10,000 $10,000
10/31/97 $9,290 $9,561
11/30/97 $9,300 $9,499
12/31/97 $9,210 $9,665
1/31/98 $9,160 $9,512
2/28/98 $10,000 $10,215
3/31/98 $10,650 $10,636
4/30/98 $10,760 $10,695
5/31/98 $10,160 $10,118
6/30/98 $10,060 $10,140
7/31/98 $9,190 $9,318
8/31/98 $7,420 $7,509
9/30/98 $7,450 $8,097
10/31/98 $7,830 $8,427
11/30/98 $8,270 $8,868
12/31/98 $8,700 $9,417
1/31/99 $8,440 $9,543
2/28/99 $7,669 $8,770
3/31/99 $7,309 $8,907
4/30/99 $7,799 $9,705
5/31/99 $8,050 $9,846
6/30/99 $8,781 $10,291
7/31/99 $8,731 $10,009
8/31/99 $8,350 $9,639
9/30/99 $8,520 $9,641
10/31/99 $8,530 $9,680
11/30/99 $8,941 $10,258
12/31/99 $9,622 $11,420
1/31/00 $8,931 $11,236
2/29/00 $9,341 $13,091
3/31/00 $10,092 $12,228
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index, which
measures performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Russell 2000 Value Index measures the
performance of those Russell 2000 companies with lower price-to-book ratios and
lower forecasted growth values. The Fund is a professionally managed mutual
fund. 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 ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Cap Value Fund
Institutional Class shares since inception with the Russell 2000 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
31
<PAGE>
STOCK FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Small Company Growth Fund (the Fund) seeks to provide
long-term capital appreciation through investments in securities of small to
medium-size companies.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Peregrine Capital Management
FUND MANAGERS
Robert Mersky, CFA
Paul von Kuster, CFA
INCEPTION DATE
12/31/82
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Institutional Class shares returned 39.33%(1) for the six-month
period ended March 31, 2000. The Fund outperformed its benchmark, the Russell
2000 Index(2), which returned 26.84% during the period. The Fund's
Institutional Class shares distributed no dividend income or capital gains
during the period. Please keep in mind that past performance is no guarantee
of future results. The Fund's six-month performance was attributable to
unusually favorable conditions that may not be sustainable and are not likely
to exist in the future.
The six-month period began with small-cap stocks lagging under the weight of
year-end tax selling by mutual funds, which finished up October 31. A dramatic
rally then commenced that lasted into early March when investors began to
realize that exciting stories alone were not a guarantee of a company's future
profitability. "Big" and "expensive" remained key themes. A stock's
performance tended to have a linear relationship with its market
capitalization within the indices. As the six months drew to a close,
small-cap growth stocks corrected and the market broadened out to include
previously neglected areas.
Over the period, the Fund's strongest holdings included many of its
"overlooked phase" stocks, which advanced strongly due to superior results by
companies such as UnitedGlobalCom, Atmel and Informix. The Fund's
emerging-growth "discovery stocks" also performed well, producing excellent
returns for the period. Stars in this segment included Alkermes, Abgenix and
COR Therapeutics in the biotechnology area, and DII Group and Veeco in
technology.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Despite recent gains and improving relative performance, the Fund's holdings
remain undervalued relative to the overall market. The companies in which the
Fund invests have delivered tremendous earnings growth over the past few
quarters, and the managers are expecting more of the same. Yet with average
long-term earnings growth forecast to be 26% and a price/earnings ratio (P/E)
of just 18 (forward 12-month), the Fund's holdings appear sharply undervalued
compared to the stocks in the S&P 500 Index(3), where an average long-term
earnings growth of 7% is being accorded a P/E of 27. This valuation gap should
continue to narrow over the coming quarters, creating further gains in
relative performance for the Fund.
--------------------------------------------------------------------------------
(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 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 Institutional Class shares of the Wells Fargo Small
Company Growth Fund for periods prior to November 8, 1999, reflects performance
of the Institutional Class shares of the Norwest Advantage Small Company Growth
Fund, its predecessor fund. Effective at the close of business November 5, 1999,
the Norwest Advantage Funds were reorganized into the Wells Fargo Funds.
Performance of the Institutional Class shares of the Fund, prior to
November 11, 1994, reflects the performance of a collective investment fund
adjusted to reflect Institutional Class expenses. Norwest Bank Minnesota, N.A.
managed the collective investment fund with an investment objective and
principal investment strategy that were substantially similar to those of the
Fund. The performance for the Fund includes performance of its predecessor
collective investment fund for periods before it became a mutual fund on
November 11, 1994. The collective investment fund's performance was adjusted to
reflect the Fund's 1994 estimate of its expense ratio for the first year of
operations as a mutual fund, including any applicable sales load (without giving
effect to any fee waivers or expense reimbursements). The collective investment
fund was not registered under the Investment Company Act of 1940 ("1940 Act")
nor subject to certain investment limitations, diversification requirements, and
other restrictions imposed by the 1940 Act or the Internal Revenue Code which,
if applicable, may have adversely affected the performance results.
Institutional Class shares are sold without sales charges.
32
<PAGE>
PERFORMANCE HIGHLIGHTS STOCK FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS 39.33 53.34 19.09 20.20
BENCHMARK
RUSSELL 2000 INDEX 26.84 37.29 17.24 14.44
</TABLE>
* Returns for periods less than one year are not annualized.
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
BETA* 1.40
P/E (TRAILING 12 MONTHS) 23.0x
P/B 2.7x
MEDIAN MARKET CAP. ($B) 1.2
NUMBER OF HOLDINGS 124
PORTFOLIO TURNOVER 27%
</TABLE>
* A measure of the Fund's sensitivity to market movements. The benchmark beta
is 1.00 by definition.
TEN LARGEST EQUITY HOLDINGS(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
AUTODESK, INCORPORATED 2.18%
GENZYME CORPORATION 1.80%
SYBRON INTERNATIONAL CORPORATION 1.76%
MYLAN LABORATORIES 1.76%
INFORMIX CORPORATION 1.63%
TEVA PHARMACEUTICAL 1.62%
WHOLE FOODS MARKET, INCORPORATED 1.56%
PRECISION DRILLING CORPORATION 1.51%
ROSLYN BANCORP, INCORPORATED 1.43%
REMEC, INCORPORATED 1.38%
</TABLE>
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 34%
Health Care 22%
Consumer Cyclical 8%
Financial 7%
Energy 6%
Commercial Services 4%
Basic Materials 3%
Consumer Services 3%
Industrials 3%
Telecommunications 3%
Consumer Non-Cyclical 2%
Transportation 2%
Cash 2%
Utilities 1%
</TABLE>
GROWTH OF $10,000 INVESTMENT(6)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
WELLS FARGO SMALL COMPANY GROWTH FUND - CLASS I RUSSELL 2000 INDEX
<S> <C> <C>
3/31/90 $10,000 $10,000
4/30/90 $9,862 $9,673
5/31/90 $10,102 $10,358
6/30/90 $11,429 $10,379
7/31/90 $11,087 $9,922
8/31/90 $9,778 $8,600
9/30/90 $8,785 $7,839
10/31/90 $8,415 $7,361
11/30/90 $9,333 $7,922
12/31/90 $10,181 $8,236
1/31/91 $11,111 $8,981
2/28/91 $12,322 $9,982
3/31/91 $13,298 $10,685
4/30/91 $13,041 $10,658
5/31/91 $14,111 $11,167
6/30/91 $12,934 $10,516
7/31/91 $14,036 $10,885
8/31/91 $15,176 $11,288
9/30/91 $15,544 $11,376
10/31/91 $16,784 $11,676
11/30/91 $15,469 $11,135
12/31/91 $17,556 $12,027
1/31/92 $18,904 $13,002
2/29/92 $18,889 $13,381
3/31/92 $17,677 $12,929
4/30/92 $16,887 $12,476
5/31/92 $16,764 $12,642
6/30/92 $15,911 $12,044
7/31/92 $16,715 $12,463
8/31/92 $16,240 $12,112
9/30/92 $16,712 $12,392
10/31/92 $17,609 $12,786
11/30/92 $19,595 $13,764
12/31/92 $20,544 $14,243
1/31/93 $21,197 $14,724
2/28/93 $19,644 $14,384
3/31/93 $20,630 $14,850
4/30/93 $20,385 $14,443
5/31/93 $21,723 $15,082
6/30/93 $21,774 $15,175
7/31/93 $21,816 $15,385
8/31/93 $23,536 $16,049
9/30/93 $24,510 $16,502
10/31/93 $24,568 $16,926
11/30/93 $23,867 $16,369
12/31/93 $25,092 $16,929
1/31/94 $25,384 $17,461
2/28/94 $25,195 $17,398
3/31/94 $23,513 $16,479
4/30/94 $23,875 $16,576
5/31/94 $23,141 $16,391
6/30/94 $22,093 $15,833
7/31/94 $22,787 $16,093
8/31/94 $24,299 $16,989
9/30/94 $24,152 $16,933
10/31/94 $24,179 $16,867
11/30/94 $23,106 $16,186
12/31/94 $24,230 $16,621
1/31/95 $24,187 $16,412
2/28/95 $25,573 $17,095
3/31/95 $26,293 $17,389
4/30/95 $26,697 $17,775
5/31/95 $26,959 $18,080
6/30/95 $29,109 $19,019
7/31/95 $32,001 $20,114
8/31/95 $33,202 $20,531
9/30/95 $33,933 $20,898
10/31/95 $32,733 $19,964
11/30/95 $33,704 $20,802
12/31/95 $33,797 $21,352
1/31/96 $33,845 $21,328
2/29/96 $34,965 $21,994
3/31/96 $35,724 $22,442
4/30/96 $38,542 $23,643
5/31/96 $39,747 $24,574
6/30/96 $37,362 $23,564
7/31/96 $34,857 $21,507
8/31/96 $37,591 $22,757
9/30/96 $39,072 $23,647
10/31/96 $38,217 $23,282
11/30/96 $39,626 $24,242
12/31/96 $40,494 $24,877
1/31/97 $41,885 $25,374
2/28/97 $40,196 $24,760
3/31/97 $38,332 $23,592
4/30/97 $38,021 $23,658
5/31/97 $41,993 $26,288
6/30/97 $45,007 $27,416
7/31/97 $48,425 $28,691
8/31/97 $49,209 $29,348
9/30/97 $52,866 $31,496
10/31/97 $51,541 $30,114
11/30/97 $50,161 $29,918
12/31/97 $49,469 $30,441
1/31/98 $49,149 $29,960
2/28/98 $52,840 $32,175
3/31/98 $55,556 $33,500
4/30/98 $55,891 $33,684
5/31/98 $51,391 $31,869
6/30/98 $50,354 $31,936
7/31/98 $47,257 $29,349
8/31/98 $35,222 $23,649
9/30/98 $37,952 $25,501
10/31/98 $40,606 $26,542
11/30/98 $42,956 $27,932
12/31/98 $44,964 $29,661
1/31/99 $46,336 $30,056
2/28/99 $41,336 $27,621
3/31/99 $41,068 $28,052
4/30/99 $44,045 $30,566
5/31/99 $45,884 $31,012
6/30/99 $48,794 $32,414
7/31/99 $48,743 $31,526
8/31/99 $45,750 $30,359
9/30/99 $45,198 $30,365
10/31/99 $45,583 $30,490
11/30/99 $49,262 $32,310
12/31/99 $53,559 $35,967
1/31/00 $53,024 $35,388
2/29/00 $62,455 $41,231
3/31/00 $62,974 $38,514
</TABLE>
--------------------------------------------------------------------------------
(2) The Russell 2000 Index is an unmanaged market value weighted index, which
measures performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. The Fund is a professionally managed mutual fund.
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 ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(5) Portfolio holdings are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Company Growth
Fund Institutional Class shares since inception with the Russell 2000 Index. The
chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
33
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DISCIPLINED GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO DISCIPLINED GROWTH
PORTFOLIO $38,554,251
-----------
38,554,251
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.15%) (COST $28,748,260)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $28,748,260)* 100.15% $38,554,251
OTHER ASSETS AND LIABILITIES, NET (0.15) (59,384)
------- -----------
TOTAL NET ASSETS 100.00% $38,494,867
------- -----------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $9,805,991
GROSS UNREALIZED DEPRECIATION 0
---------
NET UNREALIZED APPRECIATION $9,805,991
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO DISCIPLINED GROWTH
PORTFOLIO $ 118,350,039
N/A WELLS FARGO INCOME EQUITY
PORTFOLIO 595,510,282
N/A WELLS FARGO INDEX PORTFOLIO 588,712,809
N/A WELLS FARGO INTERNATIONAL
EQUITY PORTFOLIO 145,770,552
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO 190,205,633
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO 466,348,357
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO 53,712,394
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 58,531,202
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 54,838,065
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 59,604,493
2,331,583,826
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.06%) (COST $1,386,829,531)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,386,829,531)* 100.06% $2,331,583,826
OTHER ASSETS AND LIABILITIES, NET (0.06) (1,375,518)
------- --------------
TOTAL NET ASSETS 100.00% $2,330,208,308
------- --------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $944,754,295
GROSS UNREALIZED DEPRECIATION 0
-----------
NET UNREALIZED APPRECIATION $944,754,295
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO $22,064,052
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 23,058,213
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 22,619,455
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 23,284,052
91,025,772
TOTAL INVESTMENTS IN CORE PORTFOLIO
(99.54%) (COST $81,092,771)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $81,092,771) 99.54% $91,025,772
OTHER ASSETS AND LIABILITIES, NET 0.46 421,642
------- -----------
TOTAL NET ASSETS 100.00% $91,447,414
------- -----------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $9,933,001
GROSS UNREALIZED DEPRECIATION 0
----------
NET UNREALIZED APPRECIATION $9,933,001
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INCOME FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INCOME EQUITY
PORTFOLIO $1,753,588,056
1,753,588,056
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.17%) (COST $1,393,906,558)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,393,906,558)* 100.17% $1,753,588,056
OTHER ASSETS AND LIABILITIES, NET (0.17) (2,990,482)
------- --------------
TOTAL NET ASSETS 100.00% $1,750,597,574
------- --------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $359,681,498
GROSS UNREALIZED DEPRECIATION 0
-----------
NET UNREALIZED APPRECIATION $359,681,498
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
37
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCKS - 99.08%
AGRICULTURAL PRODUCTION-CROPS - 0.03%
19,300 NABISCO GROUP HOLDINGS $ 231,600
------------
AMUSEMENT & RECREATION SERVICES - 0.69%
7,600 HARRAH'S ENTERTAINMENT
INCORPORATED+ 141,075
122,200 WALT DISNEY COMPANY 5,056,025
5,197,100
------------
APPAREL & ACCESSORY STORES - 0.68%
23,100 CVS CORPORATION 867,694
50,300 GAP INCORPORATED 2,505,569
9,600 KOHLS CORPORATION+ 984,000
12,700 LIMITED INCORPORATED 534,988
7,900 NORDSTROM INCORPORATED 233,050
5,125,301
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.04%
3,500 LIZ CLAIBORNE INCORPORATED 160,344
7,000 V.F. CORPORATION 168,438
328,782
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.03%
8,200 AUTOZONE INCORPORATED+ 227,550
3,100 PEP BOYS-MANNY MOE & JACK 18,405
245,955
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
3,800 RYDER SYSTEMS INCORPORATED 86,213
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.03%
3,500 CENTEX CORPORATION 83,344
2,800 KAUFMAN & BROAD HOME
CORPORATION 60,025
2,600 PULTE CORPORATION 54,275
197,644
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.33%
136,000 HOME DEPOT INCORPORATED 8,772,000
22,600 LOWE'S COMPANY INCORPORATED 1,319,275
10,091,275
------------
BUSINESS SERVICES - 11.42%
20,200 3COM CORPORATION+ 1,123,625
7,000 ADOBE SYSTEMS INCORPORATED 779,188
134,800 AMERICA ONLINE INCORPORATED+ 9,065,300
3,600 AUTODESK INCORPORATED 163,800
37,200 AUTOMATIC DATA PROCESSING 1,794,900
14,400 BMC SOFTWARE INCORPORATED+ 711,000
10,800 CABLETRON SYSTEMS
INCORPORATED+ 316,575
41,700 CENDANT CORPORATION+ 771,450
</TABLE>
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
8,500 CERIDIAN CORPORATION $ 163,094
10,600 CITRIX SYSTEMS 702,250
32,000 COMPUTER ASSOCIATES
INTERNATIONAL INCORPORATED 1,894,000
9,900 COMPUTER SCIENCES CORPORATION+ 783,338
21,300 COMPUWARE CORPORATION+ 448,630
7,700 ECOLAB INCORPORATED 282,494
27,800 ELECTRONIC DATA SYSTEMS
CORPORATION 1,784,413
8,400 EQUIFAX INCORPORATED 212,100
24,700 FIRST DATA CORPORATION 1,092,975
18,200 IMS HEALTH INCORPORATED 308,263
16,600 INTERPUBLIC GROUP COMPANIES
INCORPORATED 784,350
16,600 MCKESSON HBOC INCORPORATED 348,600
307,400 MICROSOFT CORPORATION+ 32,661,250
5,700 NCR CORP+ 228,713
19,300 NOVELL INCORPORATED+ 552,463
10,500 OMNICOM GROUP 981,094
166,600 ORACLE SYSTEMS CORPORATION+ 13,005,213
16,200 PARAMETRIC TECHNOLOGY
CORPORATION+ 341,213
15,900 PEOPLESOFT INCORPORATED+ 318,000
1,600 SHARED MEDICAL SYSTEM
CORPORATION 83,000
93,200 SUN MICROSYSTEMS INCORPORATED+ 8,733,130
18,300 UNISYS CORPORATION+ 466,650
10,100 UST INCORPORATED 157,813
31,100 YAHOO INCORPORATED+ 5,329,763
86,388,647
------------
CAPITAL GOODS - 0.04%
5,500 W W GRAINGER INCORPORATED 298,375
------------
CHEMICALS & ALLIED PRODUCTS - 10.02%
90,800 ABBOTT LABORATORIES 3,195,025
13,500 AIR PRODUCTS & CHEMICALS
INCORPORATED 383,905
3,300 ALBERTO-CULVER COMPANY CLASS B 78,580
7,800 ALLERGAN INCORPORATED 390,000
6,000 ALZA CORPORATION+ 225,375
77,100 AMERICAN HOME PRODUCTS
CORPORATION 4,134,488
60,300 AMGEN INCORPORATED+ 3,700,913
14,300 AVON PRODUCTS INCORPORATED 415,594
8,900 BIOGEN INCORPORATED+ 621,888
117,200 BRISTOL-MYERS SQUIBB COMPANY 6,768,300
14,000 CLOROX COMPANY 455,000
34,400 COLGATE-PALMOLIVE COMPANY 1,939,300
13,000 DOW CHEMICAL COMPANY 1,482,000
61,700 DUPONT (E.I.) DE NEMOURS AND
COMPANY 3,262,388
4,600 EASTMAN CHEMICAL COMPANY 209,300
1,800 FMC CORPORATION+ 101,700
63,400 GILLETTE COMPANY 2,389,388
3,400 GREAT LAKES CHEMICAL
CORPORATION 115,600
</TABLE>
39
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
6,200 INTERNATIONAL FLAVORS &
FRAGRANCES INCORPORATED $ 217,388
82,200 JOHNSON & JOHNSON 5,759,138
64,400 LILLY (ELI) & COMPANY 4,057,200
4,000 MALLINCKRODT INCORPORATED 115,000
138,000 MERCK & COMPANY INCORPORATED 8,573,250
37,500 MONSANTO COMPANY 1,931,250
228,600 PFIZER INCORPORATED 8,358,188
30,600 PHARMACIA AND UPJOHN
INCORPORATED 1,813,050
10,300 PPG INDUSTRIES INCORPORATED 538,818
9,400 PRAXAIR INCORPORATED 391,275
77,700 PROCTER & GAMBLE COMPANY 4,370,625
12,900 ROHM & HAAS COMPANY 575,663
86,800 SCHERING-PLOUGH CORPORATION 3,189,900
9,800 SHERWIN WILLIAMS COMPANY 214,988
6,000 SIGMA ALDRICH CORPORATION 161,250
7,900 UNION CARBIDE CORPORATION 460,668
50,700 WARNER LAMBERT COMPANY 4,943,250
5,700 WATSON PHARMACEUTICALS
INCORPORATED+ 226,218
75,765,863
------------
COMMUNICATIONS - 8.74%
18,500 ALLTEL CORPORATION 1,166,655
188,700 AMERICAN TELEPHONE & TELEGRAPH
CORPORATION 10,614,375
91,700 BELL ATLANTIC CORPORATION 5,605,163
111,200 BELLSOUTH CORPORATION 5,226,400
45,000 CBS CORPORATION+ 2,548,125
8,200 CENTURYTEL INCORPORATED 304,425
20,000 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 1,381,250
54,700 COMCAST CORPORATION CLASS A 2,372,613
46,000 GLOBAL CROSSING LIMITED 1,883,125
57,400 GTE CORPORATION 4,075,400
167,600 MCI WORLDCOM INCORPORATED+ 7,594,375
36,100 MEDIA ONE GROUP INCORPORATED+ 2,924,100
21,500 NEXTEL COMMUNICATIONS CLASS A+ 3,187,375
201,500 SBC COMMUNICATIONS
INCORPORATED 8,463,000
51,500 SPRINT CORPORATION (FON GROUP) 3,244,500
50,900 SPRINT CORPORATION (PCS
GROUP)+ 3,324,405
29,800 U.S. WEST INCORPORATED 2,164,225
66,079,511
------------
DOMESTIC DEPOSITORY INSTITUTIONS - 6.54%
23,100 AMSOUTH BANCORP 345,055
67,700 BANC ONE CORPORATION 2,327,187
100,800 BANK OF AMERICA CORPORATION 5,285,700
43,500 BANK OF NEW YORK INCORPORATED 1,807,968
20,500 BB&T CORPORATION 575,283
48,700 CHASE MANHATTAN CORPORATION 4,246,030
199,100 CITIGROUP INCORPORATED 11,809,118
</TABLE>
40
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DOMESTIC DEPOSITORY INSTITUTIONS (continued)
9,200 COMERICA INCORPORATED $ 385,250
18,200 FIFTH THIRD BANCORP 1,146,600
58,300 FIRST UNION CORPORATION 2,171,675
57,900 FIRSTAR CORPORATION 1,328,080
54,100 FLEET BOSTON FINANCIAL
CORPORATION 1,974,650
9,500 GOLDEN WEST FINANCIAL 296,280
13,500 HUNTINGTON BANCSHARES
INCORPORATED 302,063
10,200 JP MORGAN & COMPANY
INCORPORATED 1,343,850
26,400 KEYCORP 501,600
30,000 MELLON FINANCIAL CORPORATION 885,000
36,400 NATIONAL CITY CORPORATION 750,750
13,100 NORTHERN TRUST CORPORATION 885,068
7,200 OLD KENT FINANCIAL CORPORATION 232,650
17,400 PNC BANK CORPORATION 784,087
12,900 REGIONS FINANCIAL CORPORATION 294,280
9,900 SOUTHTRUST CORPORATION 251,830
9,400 STATE STREET CORPORATION 910,625
10,300 SUMMIT BANCORP 270,375
18,900 SUNTRUST BANKS INCORPORATED 1,091,475
16,500 SYNOVUS FINANCIAL CORPORATION 311,438
44,500 U.S. BANCORPORATION 973,438
8,300 UNION PLANTERS CORPORATION 255,744
12,000 WACHOVIA CORPORATION 810,750
34,100 WASHINGTON MUTUAL INCORPORATED 903,650
97,500 WELLS FARGO & COMPANY** 3,991,405
49,448,954
------------
EATING & DRINKING PLACES - 0.47%
7,600 DARDEN RESTAURANTS
INCORPORATED 135,375
80,000 MCDONALD'S CORPORATION 3,005,000
8,900 TRICON GLOBAL RESTAURANTS
INCORPORATED+ 276,455
7,100 WENDY'S INTERNATIONAL
INCORPORATED 143,330
3,560,160
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.79%
12,200 AES CORPORATION+ 960,750
11,200 ALLIED WASTE INDUSTRIES
INCORPORATED+ 73,500
8,100 AMEREN CORPORATION 250,594
11,500 AMERICAN ELECTRIC POWER
INCORPORATED 342,844
9,400 CAROLINA POWER & LIGHT COMPANY 304,913
12,600 CENTRAL & SOUTHWEST
CORPORATION 214,988
9,400 CINERGY CORPORATION 202,100
6,800 CMS ENERGY CORPORATION 123,250
4,800 COLUMBIA ENERGY GROUP 284,400
13,100 CONSOLIDATED EDISON
INCORPORATED 379,900
8,800 CONSTELLATION ENERGY GROUP 280,500
14,100 DOMINION RESOURCE INCORPORATED 541,968
21,600 DUKE ENERGY CORPORATION 1,134,000
</TABLE>
41
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
1,600 EASTERN ENTERPRISES $ 95,800
20,500 EDISON INTERNATIONAL 339,530
13,500 EL PASO ENERGY CORPORATION 545,063
14,600 ENTERGY CORPORATION 294,738
13,800 FIRST ENERGY CORPORATION 284,625
5,800 FLORIDA PROGRESS CORPORATION 266,075
10,600 FPL GROUP INCORPORATED 488,263
7,300 GPU INCORPORATED 199,838
6,800 NEW CENTURY ENERGIES
INCORPORATED 204,425
11,100 NIAGARA MOHAWK HOLDINGS
INCORPORATED 149,850
2,800 NICOR INCORPORATED 92,225
9,100 NORTHERN STATES POWER COMPANY 180,863
1,800 ONEOK INCORPORATED 45,000
11,000 PECO ENERGY COMPANY 405,625
2,100 PEOPLES ENERGY CORPORATION 57,618
22,700 PG&E CORPORATION 476,700
5,000 PINNACLE WEST CAPITAL
CORPORATION 140,938
8,500 PP&L CORPORATION 177,969
12,900 PUBLIC SERVICES ENTERPRISE
GROUP 383,775
17,500 RELIANT ENERGY INCORPORATED 410,155
12,100 SEMPRA ENERGY 202,675
39,800 SOUTHERN COMPANY 865,650
16,300 TEXAS UTILITIES COMPANY 483,905
36,600 WASTE MANAGEMENT INCORPORATED 500,963
25,700 WILLIAMS COMPANIES
INCORPORATED 1,129,194
13,515,169
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 15.09%
6,100 ADAPTEC INCORPORATED+ 235,613
8,700 ADVANCED MICRO DEVICES+ 496,444
20,700 ANALOG DEVICES INCORPORATED+ 1,667,644
4,800 ANDREW CORPORATION+ 109,800
12,700 CONEXANT SYSTEMS INCORPORATED 901,700
5,600 COOPER INDUSTRIES INCORPORATED 196,000
25,500 EMERSON ELECTRIC COMPANY 1,348,313
193,800 GENERAL ELECTRIC COMPANY 30,075,337
197,300 INTEL CORPORATION 26,031,268
17,600 LSI LOGIC CORPORATION+ 1,278,200
188,300 LUCENT TECHNOLOGIES
INCORPORATED 11,439,225
5,000 MAYTAG CORPORATION 165,625
16,000 MICRON TECHNOLOGY
INCORPORATED+ 2,016,000
11,600 MOLEX INCORPORATED 681,500
41,900 MOTOROLA INCORPORATED 5,965,513
10,100 NATIONAL SEMICONDUCTOR
CORPORATION+ 612,313
2,400 NATIONAL SERVICE INDUSTRIES
INCORPORATED 50,550
18,000 NETWORK APPLIANCE
INCORPORATED+ 1,489,500
85,301 NORTEL NETWORKS CORPORATION 10,747,913
43,600 QUALCOMM INCORPORATED+ 6,510,025
</TABLE>
42
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) 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)
20,000 RAYTHEON COMPANY CLASS B $ 355,000
9,400 SCIENTIFIC-ATLANTA
INCORPORATED 596,313
23,800 TELLABS INCORPORATED+ 1,499,027
48,000 TEXAS INSTRUMENTS INCORPORATED 7,680,000
3,400 THOMAS & BETTS CORPORATION 96,050
4,400 WHIRLPOOL CORPORATION 257,950
19,000 XILINX INCORPORATED+ 1,573,437
114,076,260
------------
ENERGY & RELATED - 0.01%
4,200 W.R. GRACE & COMPANY+ 53,287
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.32%
9,500 DUN & BRADSTREET CORPORATION 271,937
26,100 HALLIBURTON COMPANY 1,070,100
14,600 PAYCHEX INCORPORATED 764,675
2,800 PERKIN-ELMER INCORPORATED 186,200
6,800 QUINTILES TRANSNATIONAL
CORPORATION+ 116,025
2,408,937
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
0.27%
1,800 BALL CORPORATION 62,213
3,900 CRANE COMPANY 91,894
7,600 CROWN CORK & SEAL COMPANY 121,600
9,700 FORTUNE BRANDS INCORPORATED 242,500
23,400 LOCKHEED MARTIN CORPORATION 478,237
26,400 MASCO CORPORATION 541,200
6,600 PARKER HANNIFIN CORPORATION 272,663
3,500 SNAP-ON INCORPORATED 91,655
5,300 STANLEY WORKS 139,788
2,041,750
------------
FOOD & KINDRED PRODUCTS - 3.13%
2,200 ADOLPH COORS COMPANY CLASS B 105,188
27,500 ANHEUSER-BUSCH INCORPORATED 1,711,875
35,900 ARCHER-DANIELS-MIDLAND COMPANY 372,463
16,500 BESTFOODS 772,405
4,000 BROWN-FORMAN CORPORATION CLASS
B 217,750
25,200 CAMPBELL SOUP COMPANY 774,900
145,900 COCA-COLA COMPANY 6,848,180
25,100 COCA-COLA ENTERPRISES
INCORPORATED 541,219
29,100 CONAGRA INCORPORATED 527,437
17,800 GENERAL MILLS INCORPORATED 644,137
20,900 H J HEINZ COMPANY 728,887
6,300 HERCULES INCORPORATED 101,587
8,200 HERSHEY FOODS CORPORATION 401,800
23,900 KELLOGG COMPANY 612,437
86,000 PEPSICO INCORPORATED 2,972,375
</TABLE>
43
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FOOD & KINDRED PRODUCTS (continued)
7,900 QUAKER OATS COMPANY $ 478,937
17,800 RALSTON-PURINA GROUP 487,275
53,700 SARA LEE CORPORATION 966,600
12,700 SEAGATE TECHNOLOGY
INCORPORATED+ 765,175
25,600 SEAGRAM COMPANY LIMITED 1,523,200
33,800 UNILEVER NV 1,626,625
6,800 WM. WRIGLEY JR COMPANY 522,325
23,702,777
------------
FOOD STORES - 0.24%
25,000 ALBERTSON'S INCORPORATED 775,000
2,300 GREAT ATLANTIC & PACIFIC TEA
COMPANY 44,850
49,300 KROGER COMPANY+ 865,830
8,600 WINN-DIXIE STORES INCORPORATED 167,163
1,852,843
------------
FURNITURE & FIXTURES - 0.03%
11,600 LEGGETT & PLATT INCORPORATED 249,400
------------
GENERAL BUSINESS & RELATED - 0.02%
7,500 RR DONNELLEY & SONS COMPANY 157,030
------------
GENERAL MERCHANDISE STORES - 2.64%
6,500 CONSOLIDATED STORES
CORPORATION+ 73,938
6,200 DILLARDS INCORPORATED CLASS A 101,913
15,600 DOLLAR GENERAL CORPORATION 419,250
12,400 FEDERATED DEPARTMENT STORES
INCORPORATED+ 517,700
4,200 HARCOURT GENERAL INCORPORATED 156,450
15,400 J C PENNEY COMPANY
INCORPORATED 229,075
28,800 K-MART CORPORATION+ 279,000
19,600 MAY DEPARTMENT STORES COMPANY+ 558,600
22,300 SEARS ROEBUCK & COMPANY 688,513
25,900 TARGET CORPORATION 1,936,025
18,300 TJX COMPANIES INCORPORATED 406,030
263,000 WAL-MART STORES INCORPORATED 14,596,500
19,962,994
------------
HEALTH SERVICES - 0.19%
33,300 COLUMBIA HCA HEALTHCARE
CORPORATION 842,905
22,800 HEALTHSOUTH CORPORATION+ 126,825
6,100 MANOR CARE INCORPORATED 82,350
18,400 TENET HEALTHCARE CORPORATION+ 423,200
1,475,280
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-CONTRACTORS - 0.02%
4,500 FLUOR CORPORATION 139,500
3,500 MCDERMOTT INTERNATIONAL
INCORPORATED 32,155
171,655
------------
</TABLE>
44
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.31%
12,100 BEST BUY COMPANY INCORPORATED+ $ 1,040,600
12,000 CIRCUIT CITY STORES
INCORPORATED 730,500
11,400 TANDY CORPORATION 578,550
2,349,650
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.11%
21,800 HILTON HOTELS CORPORATION 168,950
14,700 MARRIOTT INTERNATIONAL 463,050
11,400 MIRAGE RESORTS INCORPORATED+ 220,875
852,875
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.12%
9,500 APPLE COMPUTER INCORPORATED+ 1,290,218
45,200 APPLIED MATERIALS
INCORPORATED+ 4,260,100
19,400 BAKER HUGHES INCORPORATED 586,850
5,100 BLACK & DECKER CORPORATION 191,568
1,400 BRIGGS & STRATTON CORPORATION 57,575
5,400 BRUNSWICK CORPORATION 102,263
21,000 CATERPILLAR INCORPORATED 828,188
404,200 CISCO SYSTEMS INCORPORATED+ 31,249,713
100,000 COMPAQ COMPUTER CORPORATION 2,662,500
4,500 COMVERSE TECHNOLOGY
INCORPORATED+ 850,500
2,400 CUMMINS ENGINE COMPANY
INCORPORATED 90,150
13,800 DEERE & COMPANY 524,400
151,500 DELL COMPUTER CORPORATION+ 8,171,530
12,000 DOVER CORPORATION 574,500
60,100 EMC CORPORATION+ 7,512,500
18,700 GATEWAY INCORPORATED 991,100
59,400 HEWLETT PACKARD COMPANY 7,874,213
9,700 INGERSOLL-RAND COMPANY 429,225
106,500 INTERNATIONAL BUSINESS
MACHINES CORPORATION 12,567,000
7,500 LEXMARK INTERNATIONAL GROUP
INCORPORATED CLASS A+ 793,125
2,200 MILACRON INCORPORATED 31,763
7,300 PALL CORPORATION 163,794
15,700 PITNEY BOWES INCORPORATED 701,594
10,900 SILICON GRAPHICS INCORPORATED+ 115,130
34,600 SOLECTRON CORPORATION+ 1,386,163
3,700 TIMKEN COMPANY 60,125
84,065,787
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.34%
15,200 AON CORPORATION 490,200
9,900 HUMANA INCORPORATED+ 72,394
15,800 MARSH & MCLENNAN COMPANIES
INCORPORATED 1,742,938
6,200 MGIC INVESTMENT CORPORATION 270,475
2,576,007
------------
</TABLE>
45
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INSURANCE CARRIERS - 2.56%
8,400 AETNA INCORPORATED $ 467,775
15,700 AFLAC INCORPORATED 715,330
47,600 ALLSTATE CORPORATION 1,133,475
14,600 AMERICAN GENERAL CORPORATION 819,425
91,400 AMERICAN INTERNATIONAL GROUP
INCORPORATED 10,008,300
10,400 CHUBB CORPORATION 702,650
10,000 CIGNA CORPORATION 757,500
9,700 CINCINNATI FINANCIAL
CORPORATION 364,963
13,100 HARTFORD FINANCIAL SERVICES
GROUP 691,025
6,200 JEFFERSON PILOT CORPORATION 412,688
11,500 LINCOLN NATIONAL CORPORATION 385,250
6,300 LOEWS CORPORATION 315,000
5,900 MBIA INCORPORATED 307,168
4,300 PROGRESSIVE CORPORATION 327,068
7,700 SAFECO CORPORATION 204,530
13,400 ST. PAUL COMPANIES
INCORPORATED 457,275
7,800 TORCHMARK CORPORATION 180,375
10,000 UNITED HEALTHCARE CORPORATION 596,250
14,200 UNUMPROVIDENT CORPORATION 241,400
3,800 WELLPOINT HEALTH NETWORKS 265,525
19,352,972
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
6,300 LOUISIANA-PACIFIC CORPORATION 87,413
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 2.16%
3,400 BAUSCH & LOMB INCORPORATED 177,438
17,200 BAXTER INTERNATIONAL
INCORPORATED 1,078,225
14,900 BECTON DICKINSON & COMPANY 392,055
6,700 BIOMET INCORPORATED+ 243,713
24,500 BOSTON SCIENTIFIC CORPORATION+ 522,156
3,000 C R BARD INCORPORATED 116,063
8,400 DANAHER CORPORATION 428,400
18,600 EASTMAN KODAK COMPANY 1,010,213
4,300 EATON CORPORATION 335,400
18,200 GUIDANT CORPORATION+ 1,070,388
46,800 HONEYWELL INTERNATIONAL
INCORPORATED 2,465,775
5,000 JOHNSON CONTROLS INCORPORATED 280,313
10,800 KLA-TENCOR CORPORATION+ 909,900
70,500 MEDTRONIC INCORPORATED 3,626,344
2,700 MILLIPORE CORPORATION 152,381
12,200 PE BIOSYSTEMS GROUP 1,177,300
2,600 POLAROID CORPORATION 61,750
5,000 ST. JUDE MEDICAL INCORPORATED+ 129,063
2,800 TEKTRONIX INCORPORATED 156,800
10,100 TERADYNE INCORPORATED+ 830,725
9,300 THERMO ELECTRON CORPORATION+ 189,488
</TABLE>
46
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (continued)
39,200 XEROX CORPORATION $ 1,019,200
16,373,090
------------
METAL MINING - 0.13%
1,034 ARCH COAL INCORPORATED 7,235
23,300 BARRICK GOLD CORPORATION 365,519
9,700 FREEPORT MCMORAN COPPER & GOLD
INCORPORATED CLASS B 117,006
15,400 HOMESTAKE MINING COMPANY 92,400
9,900 NEWMONT MINING CORPORATION 222,131
19,200 PLACER DOME INCORPORATED 156,000
960,291
------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.04%
5,900 VULCAN MATERIALS COMPANY 270,294
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.73%
11,400 HASBRO INCORPORATED 188,100
2,000 JOSTENS INCORPORATED 48,750
24,900 MATTEL INCORPORATED 259,894
500 NACCO INDUSTRIES INCORPORATED
CLASS A 23,969
99,900 TYCO INTERNATIONAL LIMITED 4,982,513
5,503,226
------------
MISCELLANEOUS RETAIL - 0.58%
8,300 BED BATH & BEYOND
INCORPORATED+ 326,813
26,300 COSTCO WHOLESALE CORPORATION 1,382,394
2,300 LONGS DRUG STORES CORPORATION 52,325
19,400 OFFICE DEPOT INCORPORATED+ 224,313
15,300 RITE AID CORPORATION 84,150
27,700 STAPLES INCORPORATED+ 554,000
14,200 TOYS 'R' US INCORPORATED+ 210,338
59,400 WALGREEN'S COMPANY 1,529,550
4,363,883
------------
MOTION PICTURES - 1.07%
76,000 TIME WARNER INCORPORATED 7,600,000
12,800 UNICOM CORPORATION 467,200
8,067,200
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.89%
26,400 AMERICAN EXPRESS CORPORATION 3,931,950
43,000 ASSOCIATES FIRST CAPITAL
CORPORATION 921,813
11,600 CAPITAL ONE FINANCIAL
CORPORATION 556,075
19,300 CONSECO INCORPORATED 220,744
6,700 COUNTRYWIDE CREDIT INDUSTRIES
INCORPORATED 182,575
41,100 FEDERAL HOME LOAN MORTGAGE
CORPORATION 1,816,106
60,500 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 3,414,469
27,800 HOUSEHOLD INTERNATIONAL
INCORPORATED 1,037,288
</TABLE>
47
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
NONDEPOSITORY CREDIT INSTITUTIONS (continued)
47,400 MBNA CORPORATION $ 1,208,700
8,400 PROVIDIAN FINANCIAL
CORPORATION 727,650
9,400 SLM HOLDING CORPORATION 313,138
14,330,508
------------
OIL & GAS EXTRACTION - 1.15%
7,500 ANADARKO PETROLEUM CORPORATION 290,156
6,700 APACHE CORPORATION 333,325
12,800 BURLINGTON RESOURCES
INCORPORATED 473,600
42,300 ENRON CORPORATION 3,167,213
21,700 OCCIDENTAL PETROLEUM
CORPORATION 450,275
5,500 ROWAN COMPANIES INCORPORATED+ 161,906
32,500 SCHLUMBERGER LIMITED 2,486,250
12,300 TRANSOCEAN SEDCO FOREX
INCORPORATED 631,144
14,900 UNION PACIFIC RESOURCES GROUP
INCORPORATED 216,050
18,400 USX - MARATHON GROUP 479,550
8,689,469
------------
PAPER & ALLIED PRODUCTS - 1.11%
6,700 AVERY DENNISON CORPORATION 409,119
3,100 BEMIS COMPANY INCORPORATED 114,313
3,400 BOISE CASCADE CORPORATION 118,150
5,700 CHAMPION INTERNATIONAL
CORPORATION 303,525
12,800 FORT JAMES CORPORATION 281,600
10,100 GEORGIA-PACIFIC CORPORATION 399,581
8,900 IKON OFFICE SOLUTIONS 55,069
24,500 INTERNATIONAL PAPER COMPANY 1,047,375
32,800 KIMBERLY-CLARK CORPORATION 1,836,800
6,100 MEAD CORPORATION 213,119
23,600 MINNESOTA MINING &
MANUFACTURING COMPANY 2,090,075
10,100 PACTIV CORPORATION 88,375
3,300 TEMPLE-INLAND INCORPORATED 164,381
5,900 WESTVACO CORPORATION 196,913
13,900 WEYERHAEUSER COMPANY 792,300
6,600 WILLAMETTE INDUSTRIES
INCORPORATED 264,825
8,375,520
------------
PERSONAL SERVICES - 0.03%
5,800 H&R BLOCK INCORPORATED 259,550
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.49%
5,400 AMERADA HESS CORPORATION 348,975
4,200 ASHLAND INCORPORATED 140,438
19,100 ATLANTIC RICHFIELD CORPORATION 1,623,500
38,800 CHEVRON CORPORATION 3,586,575
12,600 COASTAL CORPORATION 579,600
37,000 CONOCO INCORPORATED CLASS B 948,125
204,000 EXXON MOBIL CORPORATION 15,873,750
</TABLE>
48
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PETROLEUM REFINING & RELATED INDUSTRIES (continued)
5,600 KERR MCGEE CORPORATION $ 323,400
15,000 PHILLIPS PETROLEUM COMPANY 693,750
126,600 ROYAL DUTCH PETROLEUM COMPANY
ADR 7,287,413
5,300 SUNOCO INCORPORATED 145,088
32,700 TEXACO INCORPORATED 1,753,538
8,500 TOSCO CORPORATION 258,719
14,300 UNOCAL CORPORATION 425,425
33,988,296
------------
PRIMARY METAL INDUSTRIES - 0.43%
12,900 ALCAN ALUMINUM LIMITED 436,988
21,700 ALCOA INCORPORATED 1,524,425
7,700 BETHLEHEM STEEL CORPORATION+ 46,200
7,400 ENGELHARD CORPORATION 111,925
11,300 INCO LIMITED 206,931
5,200 NUCOR CORPORATION 260,000
4,800 PHELPS DODGE CORPORATION 228,000
3,700 REYNOLDS METALS COMPANY 247,438
5,200 USX - US STEEL GROUP 130,000
5,300 WORTHINGTON INDUSTRIES
INCORPORATED 65,588
3,257,495
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.80%
3,800 AMERICAN GREETINGS CORPORATION
CLASS A 69,350
4,300 DELUXE CORPORATION 113,950
5,300 DOW JONES & COMPANY
INCORPORATED 380,606
16,500 GANNETT COMPANY INCORPORATED 1,161,188
5,000 KNIGHT-RIDDER INCORPORATED 254,688
11,600 MCGRAW-HILL INCORPORATED 527,800
3,000 MEREDITH CORPORATION 83,063
10,100 NEW YORK TIMES COMPANY CLASS
A+ 433,669
3,500 TIMES MIRROR COMPANY CLASS A+ 325,281
14,000 TRIBUNE COMPANY 511,875
41,200 VIACOM INCORPORATED CLASS B+ 2,173,300
6,034,770
------------
RAILROAD TRANSPORTATION - 0.31%
27,000 BURLINGTON NORTHERN SANTA FE 597,375
12,900 CSX CORPORATION 303,150
6,500 KANSAS CITY SOUTHERN
INDUSTRIES INCORPORATED 558,594
22,600 NORFOLK SOUTHERN CORPORATION 324,875
14,700 UNION PACIFIC CORPORATION 575,138
2,359,132
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.36%
2,400 ARMSTRONG WORLD INDUSTRIES
INCORPORATED 42,900
4,500 COOPER TIRE & RUBBER COMPANY 56,531
9,200 GOODYEAR TIRE & RUBBER COMPANY 214,475
</TABLE>
49
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (continued)
17,700 ILLINOIS TOOL WORKS
INCORPORATED $ 977,925
16,700 NEWELL RUBBERMAID INCORPORATED 414,369
16,300 NIKE INCORPORATED CLASS B 645,888
3,300 REEBOK INTERNATIONAL LIMITED+ 30,525
4,900 SEALED AIR CORPORATION+ 266,131
3,400 TUPPERWARE CORPORATION 53,763
2,702,507
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.68%
6,700 BEAR STEARNS & COMPANY
INCORPORATED 305,688
48,400 CHARLES SCHWAB CORPORATION 2,749,725
14,700 FRANKLIN RESOURCES
INCORPORATED 491,531
7,100 LEHMAN BROTHERS HOLDINGS 688,700
21,900 MERRILL LYNCH & COMPANY
INCORPORATED 2,299,500
67,300 MORGAN STANLEY DEAN WITTER &
COMPANY 5,489,156
8,400 PAINEWEBBER GROUP INCORPORATED 369,600
7,100 T. ROWE PRICE & ASSOCIATES 280,450
12,674,350
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.45%
16,301 CORNING INCORPORATED 3,162,307
3,200 OWENS CORNING FIBERGLASS
CORPORATION 62,000
8,900 OWENS-ILLINOIS INCORPORATED+ 150,188
3,374,495
------------
TECHNOLOGY - 0.01%
5,500 ALLEGHENY TECHNOLOGIES
INCORPORATED 110,344
------------
TELECOMMUNICATIONS - 0.13%
17,700 ADC TELECOMMUNICATION+ 953,588
------------
TEXTILE MILL PRODUCTS - 0.01%
2,000 RUSSELL CORPORATION 28,625
1,100 SPRINGS INDUSTRIES
INCORPORATED CLASS A 41,800
70,425
------------
TOBACCO PRODUCTS - 0.39%
139,700 PHILIP MORRIS COMPANIES
INCORPORATED 2,951,163
------------
TRANSPORTATION BY AIR - 0.28%
8,700 AMR CORPORATION+ 277,313
7,600 DELTA AIR LINES INCORPORATED 404,700
17,100 FEDEX CORPORATION 666,900
29,800 SOUTHWEST AIRLINES COMPANY 620,213
4,200 US AIR GROUP INCORPORATED+ 116,813
2,085,939
------------
TRANSPORTATION EQUIPMENT - 1.93%
6,500 B.F. GOODRICH COMPANY 186,469
51,300 BOEING COMPANY 1,946,194
</TABLE>
50
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TRANSPORTATION EQUIPMENT (continued)
9,700 DANA CORPORATION $ 273,419
33,400 DELPHI AUTOMOTIVE SYSTEMS
CORPORATION+ 534,400
71,300 FORD MOTOR COMPANY 3,275,344
11,900 GENERAL DYNAMICS CORPORATION 592,025
37,800 GENERAL MOTORS CORPORATION 3,130,313
8,900 HARLEY- DAVIDSON INCORPORATED 706,438
5,200 ITT INDUSTRIES INCORPORATED 161,525
3,700 NAVISTAR INTERNATIONAL+ 148,463
4,100 NORTHROP GRUMMAN CORPORATION+ 217,044
4,600 PACCAR INCORPORATED 230,000
11,200 ROCKWELL INTERNATIONAL
CORPORATION 468,300
8,800 TEXTRON INCORPORATED 535,700
7,200 TRW INCORPORATED 421,200
28,100 UNITED TECHNOLOGIES
CORPORATION 1,775,569
14,602,403
------------
TRANSPORTATION SERVICES - 0.04%
7,600 SABRE GROUP HOLDINGS
INCORPORATED 280,725
------------
TRANSPORTATION/SERVICES/MISCELLANEOUS - 0.03%
4,100 YOUNG & RUBICAM INCORPORATED+ 192,700
------------
UTILITIES - 0.03%
8,600 DETROIT ENERGY COMPANY 249,400
------------
WATER TRANSPORTATION - 0.12%
36,400 CARNIVAL CORPORATION CLASS A 903,175
------------
WHOLESALE TRADE-DURABLE GOODS - 0.04%
10,500 GENUINE PARTS COMPANY 250,688
1,700 POTLATCH CORPORATION 73,100
323,788
------------
WHOLESALE TRADE-NONDURABLE GOODS - 0.39%
16,600 CARDINAL HEALTH INCORPORATED 761,525
30,000 SAFEWAY INCORPORATED+ 1,357,500
8,200 SUPERVALU INCORPORATED 155,288
19,500 SYSCO CORPORATION 695,906
2,970,219
------------
749,275,411
TOTAL COMMON STOCKS (COST $252,978,088)
------------
</TABLE>
51
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.83%
CERTIFICATES OF DEPOSITS - 0.71%
$5,320,314 GOLDMAN SACHS 6.35% 04/03/00 $ 5,320,314
U.S. TREASURY BILLS - 0.12%
970,000 U.S. TREASURY BILLS 6.20{::} 02/01/01 921,267
6,241,581
TOTAL SHORT-TERM INSTRUMENTS (COST
$6,242,314)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $259,220,402)* (NOTES 1 AND 3) 99.91% $755,516,992
OTHER ASSETS AND LIABILITIES, NET 0.09 695,929
------- ------------
TOTAL NET ASSETS 100.00% $756,212,921
------- ------------
</TABLE>
** SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $1,032,637.
+ NON-INCOME EARNING SECURITIES.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $516,225,164
GROSS UNREALIZED DEPRECIATION (19,928,574)
-----------
NET UNREALIZED APPRECIATION $496,296,590
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
COMMON STOCKS - 99.05%
AMUSEMENT & RECREATION SERVICES - 1.13%
46,500 WALT DISNEY COMPANY $ 1,923,938
------------
BUSINESS SERVICES - 2.30%
38,350 COMPUTER ASSOCIATES INTERNATIONAL
INCORPORATED 2,269,840
63,950 UNISYS CORPORATION+ 1,630,725
3,900,565
------------
CHEMICALS & ALLIED PRODUCTS - 2.65%
20,800 American Home Products Corporation 1,115,400
36,550 CLOROX COMPANY 1,187,875
7,950 DOW CHEMICAL COMPANY 906,300
32,450 WATSON PHARMACEUTICALS INCORPORATED+ 1,287,859
4,497,434
------------
COMMUNICATIONS - 9.35%
39,600 BELLSOUTH CORPORATION 1,861,200
70,700 GTE CORPORATION 5,019,700
43,450 MCI WORLDCOM INCORPORATED+ 1,968,828
66,700 MEDIA ONE GROUP INCORPORATED+ 5,402,700
38,387 SBC COMMUNICATIONS INCORPORATED 1,612,254
15,864,682
------------
DOMESTIC DEPOSITORY INSTITUTIONS - 13.49%
26,500 BANK OF AMERICA CORPORATION 1,389,594
43,500 BANK OF NEW YORK INCORPORATED 1,807,969
56,680 CHASE MANHATTAN CORPORATION 4,941,788
179,775 CITIGROUP INCORPORATED 10,662,905
27,700 FIFTH THIRD BANCORP 1,745,100
79,100 MELLON FINANCIAL CORPORATION 2,333,450
22,880,806
------------
ELECTRIC, GAS & SANITARY SERVICES - 5.42%
80,550 MONTANA POWER COMPANY 5,155,200
91,950 WILLIAMS COMPANIES INCORPORATED 4,040,053
9,195,253
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 6.99%
73,925 AMERICAN POWER CONVERSION+ 3,169,534
24,400 GENERAL ELECTRIC COMPANY 3,786,575
10,600 MOTOROLA INCORPORATED 1,509,175
19,822 PHILIPS ELECTRONICS NV ADR 3,395,756
11,861,040
------------
FOOD & KINDRED PRODUCTS - 4.79%
32,150 ANHEUSER-BUSCH INCORPORATED 2,001,338
36,400 BESTFOODS 1,703,975
77,950 PEPSICO INCORPORATED 2,694,147
</TABLE>
53
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
FOOD & KINDRED PRODUCTS (continued)
63,250 RALSTON-PURINA GROUP $ 1,731,469
8,130,929
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 8.15%
18,675 APPLE COMPUTER INCORPORATED+ 2,536,298
12,800 HEWLETT PACKARD COMPANY 1,696,800
67,975 INTERNATIONAL BUSINESS MACHINES
CORPORATION 8,021,050
35,050 PITNEY BOWES INCORPORATED 1,566,297
13,820,445
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.47%
7,200 MARSH & MCLENNAN COMPANIES INCORPORATED 794,250
------------
INSURANCE CARRIERS - 6.00%
51,968 AMERICAN INTERNATIONAL GROUP
INCORPORATED 5,690,495
45,450 AXA FINANCIAL INCORPORATED 1,630,519
22,000 CHUBB CORPORATION 1,486,375
26,000 HARTFORD FINANCIAL SERVICES GROUP 1,371,500
10,178,889
------------
MANUFACTURING PROCESSING - 0.96%
43,700 TEVA PHARMACEUTICAL ADR 1,630,555
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.76%
25,900 EATON CORPORATION 2,020,200
47,425 JOHNSON CONTROLS INCORPORATED 2,658,764
4,678,964
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.29%
43,700 TYCO INTERNATIONAL LIMITED 2,179,538
------------
MISCELLANEOUS RETAIL - 3.58%
115,400 COSTCO WHOLESALE CORPORATION 6,065,713
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 3.17%
33,300 FEDERAL HOME LOAN MORTGAGE CORPORATION 1,471,444
36,900 FEDERAL NATIONAL MORTGAGE ASSOCIATION 2,082,544
49,000 HOUSEHOLD INTERNATIONAL INCORPORATED 1,828,313
5,382,301
------------
OIL & GAS EXTRACTION - 4.44%
50,000 ANADARKO PETROLEUM CORPORATION 1,934,375
37,200 ENRON CORPORATION 2,785,350
54,750 TRANSOCEAN SEDCO FOREX INCORPORATED 2,809,359
7,529,084
------------
PAPER & ALLIED PRODUCTS - 3.48%
58,950 BOWATER INCORPORATED 3,146,456
19,600 KIMBERLY-CLARK CORPORATION 1,097,600
</TABLE>
54
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
EQUITY VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
PAPER & ALLIED PRODUCTS (continued)
18,750 MINNESOTA MINING & MANUFACTURING COMPANY $ 1,660,547
5,904,603
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.57%
36,000 CHEVRON CORPORATION 3,327,750
15,075 COASTAL CORPORATION 693,450
113,426 EXXON MOBIL CORPORATION 8,825,960
12,847,160
------------
PRIMARY METAL INDUSTRIES - 1.59%
25,950 ALCOA INCORPORATED 1,822,988
17,300 NUCOR CORPORATION 865,000
2,687,988
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES -
4.24%
9,150 MERRILL LYNCH & COMPANY INCORPORATED 960,750
76,450 MORGAN STANLEY DEAN WITTER & COMPANY 6,235,453
7,196,203
------------
TRANSPORTATION EQUIPMENT - 5.23%
28,600 GENERAL DYNAMICS CORPORATION 1,422,850
43,600 GENERAL MOTORS CORPORATION 3,610,625
41,600 TRW INCORPORATED 2,433,600
22,350 UNITED TECHNOLOGIES CORPORATION 1,412,241
8,879,316
------------
168,029,656
TOTAL COMMON STOCKS (COST $122,008,970)
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.16%
REPURCHASE AGREEMENTS - 0.16%
$273,000 GOLDMAN SACHS POOLED
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY
U.S. GOVERNMENT SECURITIES
(COST $273,000) 6.07% 04/03/00 273,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $122,281,970)* (NOTES 1 AND 3) 99.21% $168,302,656
OTHER ASSETS AND LIABILITIES, NET 0.79 1,333,825
------- ------------
TOTAL NET ASSETS 100.00% $169,636,481
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $49,164,685
GROSS UNREALIZED DEPRECIATION (3,143,999)
----------
NET UNREALIZED APPRECIATION $46,020,686
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
55
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
COMMON STOCK - 96.18%
APPAREL & ACCESSORY STORES - 0.63%
29,600 KOHL'S CORPORATION + $ 3,034,000
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 2.14%
121,000 HOME DEPOT INCORPORATED 7,804,500
43,900 LOWE'S COMPANIES INCORPORATED 2,562,663
10,367,163
------------
BUSINESS SERVICES - 10.52%
8,758 AMERICA ONLINE INCORPORATED + 588,976
16,500 CITRIX SYSTEMS INCORPORATED + 1,093,125
33,300 COMPUTER ASSOCIATES INTERNATIONAL
INCORPORATED 1,970,944
67,500 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 3,189,375
199,169 MICROSOFT CORPORATION + 21,161,706
106,500 ORACLE CORPORATION + 8,313,656
56,304 SUN MICROSYSTEMS INCORPORATED + 5,275,859
58,575 VERITAS SOFTWARE CORPORATION + 7,673,325
9,900 YAHOO! INCORPORATED + 1,696,613
50,963,579
------------
CHEMICALS & ALLIED PRODUCTS - 7.91%
59,127 ABBOTT LABORATORIES 2,080,530
52,024 AMGEN INCORPORATED + 3,192,973
9,400 BIOGEN INCORPORATED + 656,825
82,531 BRISTOL-MYERS SQUIBB COMPANY 4,766,165
60,400 CLOROX COMPANY 1,963,000
104,500 COLGATE-PALMOLIVE COMPANY 5,891,188
34,812 E.I. DU PONT DE NEMOURS & COMPANY 1,840,685
34,711 ELI LILLY & COMPANY 2,186,793
110,576 GILLETTE COMPANY 4,167,333
66,652 MERCK & COMPANY INCORPORATED 4,140,756
95,501 PFIZER INCORPORATED 3,491,755
38,744 PROCTER & GAMBLE COMPANY 2,179,350
48,725 SCHERING-PLOUGH CORPORATION 1,790,644
38,347,997
------------
COMMUNICATIONS - 9.33%
109,121 AT&T CORPORATION 6,138,056
80,152 BELL ATLANTIC CORPORATION 4,899,291
32,900 CBS CORPORATION + 1,862,963
51,200 CHARTER COMMUNICATIONS INCORPORATED + 733,599
58,200 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED + 4,019,438
140,400 FOX ENTERTAINMENT GROUP INCORPORATED + 4,203,225
101,846 GTE CORPORATION 7,231,066
62,512 MCI WORLDCOM INCORPORATED + 2,832,575
21,500 NEXTEL COMMUNICATIONS INCORPORATED + 3,187,375
8,500 NEXTLINK COMMUNICATIONS INCORPORATED + 1,051,343
143,204 SBC COMMUNICATIONS INCORPORATED 6,014,568
</TABLE>
56
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
COMMUNICATIONS (continued)
48,287 SPRINT CORPORATION (FON GROUP) $ 3,042,081
45,215,580
------------
DEPOSITORY INSTITUTIONS - 5.96%
47,500 BANK OF AMERICA CORPORATION 2,490,781
122,834 CHASE MANHATTAN CORPORATION 10,709,589
210,599 CITIGROUP INCORPORATED 12,491,154
25,964 MELLON FINANCIAL CORPORATION 765,938
25,150 STATE STREET CORPORATION 2,436,406
28,893,868
------------
EATING & DRINKING PLACES - 0.53%
67,864 MCDONALD'S CORPORATION 2,549,142
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.95%
92,800 AES CORPORATION + 7,308,000
48,830 WILLIAMS COMPANIES INCORPORATED 2,145,468
9,453,468
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 14.08%
14,900 CELESTICA INCORPORATED + 790,631
111,242 GENERAL ELECTRIC COMPANY 17,263,368
123,016 INTEL CORPORATION 16,230,424
112,195 LUCENT TECHNOLOGIES INCORPORATED 6,815,846
19,800 NETWORK APPLIANCE INCORPORATED + 1,638,450
92,436 NORTEL NETWORKS CORPORATION 11,646,936
32,100 SANMINA CORPORATION + 2,168,756
72,994 TEXAS INSTRUMENTS INCORPORATED 11,679,040
68,233,451
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED
SERVICES - 0.43%
51,100 HALLIBURTON COMPANY 2,095,100
------------
FOOD & KINDRED PRODUCTS - 2.21%
36,900 ANHEUSER-BUSCH COMPANIES INCORPORATED 2,297,025
121,020 COCA-COLA COMPANY 5,680,376
78,600 PEPSICO INCORPORATED 2,716,613
10,694,014
------------
GENERAL MERCHANDISE STORES - 3.96%
126,520 TARGET CORPORATION 9,457,370
175,604 WAL-MART STORES INCORPORATED 9,746,022
19,203,392
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 12.26%
48,600 APPLIED MATERIALS INCORPORATED + 4,580,550
346,460 CISCO SYSTEMS INCORPORATED + 26,785,689
32,322 DELL COMPUTER CORPORATION + 1,743,368
67,868 EMC CORPORATION + 8,483,500
42,638 HEWLETT-PACKARD COMPANY 5,652,200
</TABLE>
57
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT (continued)
72,482 IBM CORPORATION $ 8,552,876
11,500 SYMBOL TECHNOLOGIES INCORPORATED 946,593
42,100 UNITED TECHNOLOGIES CORPORATION 2,660,194
59,404,970
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.44%
19,300 MARSH & MCLENNAN COMPANIES INCORPORATED 2,129,031
------------
INSURANCE CARRIERS - 2.75%
23,307 AFLAC INCORPORATED 1,061,925
95,521 AMERICAN INTERNATIONAL GROUP
INCORPORATED 10,459,550
26,000 AXA FINANCIAL INCORPORATED 932,750
11,400 CIGNA CORPORATION 863,550
13,317,775
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.14%
81,569 BAXTER INTERNATIONAL INCORPORATED 5,113,357
37,988 DANAHER CORPORATION 1,937,388
23,161 GUIDANT CORPORATION + 1,362,156
37,400 JDS UNIPHASE CORPORATION + 4,509,038
15,000 KLA-TENCOR CORPORATION + 1,263,750
19,902 MEDTRONIC INCORPORATED 1,023,709
15,209,398
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.75%
72,900 TYCO INTERNATIONAL LIMITED 3,635,888
------------
MISCELLANEOUS RETAIL - 0.25%
31,400 BED BATH & BEYOND INCORPORATED + 1,236,375
------------
MOTION PICTURES - 1.67%
41,500 TIME WARNER INCORPORATED 4,150,000
95,000 WALT DISNEY COMPANY 3,930,625
8,080,625
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.95%
96,250 FEDERAL NATIONAL MORTGAGE ASSOCIATION 5,432,109
107,640 HOUSEHOLD INTERNATIONAL INCORPORATED 4,016,318
9,448,427
------------
OIL & GAS EXTRACTION - 0.99%
41,700 SCHLUMBERGER LIMITED 3,190,050
31,169 TRANSOCEAN SEDCO FOREX INCORPORATED + 1,599,359
4,789,409
------------
PAPER & ALLIED PRODUCTS - 0.40%
45,100 INTERNATIONAL PAPER COMPANY 1,928,025
------------
PENDING CLASSIFICATION - 0.22%
19,300 KIMBERLY-CLARK CORPORATION 1,080,800
------------
</TABLE>
58
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
PETROLEUM REFINING & RELATED INDUSTRIES -- 5.15%
55,273 CHEVRON CORPORATION $ 5,109,298
34,600 COASTAL CORPORATION 1,591,600
149,451 EXXON MOBIL CORPORATION 11,629,156
115,216 ROYAL DUTCH PETROLEUM COMPANY NY SHARES 6,632,121
24,962,175
------------
PRIMARY METAL INDUSTRIES - 0.79%
54,632 ALCOA INCORPORATED 3,837,898
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.27%
87,380 GANNETT COMPANY INCORPORATED 6,149,368
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES -
1.36%
37,832 CHARLES SCHWAB CORPORATION 2,149,331
23,300 MERRILL LYNCH & COMPANY INCORPORATED 2,446,500
24,616 MORGAN STANLEY DEAN WITTER COMPANY 2,007,742
6,603,573
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.28%
7,000 CORNING INCORPORATED 1,358,000
------------
TRANSPORTATION EQUIPMENT - 1.89%
173,687 HONEYWELL INCORPORATED 9,151,131
------------
WHOLESALE TRADE-DURABLE GOODS - 0.97%
67,425 JOHNSON & JOHNSON 4,723,964
------------
466,097,586
TOTAL COMMON STOCK (COST $326,170,871)
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.07%
REPURCHASE AGREEMENTS - 0.07%
$319,000 GOLDMAN SACHS 6.07% 04/03/00 319,000
319,000
TOTAL SHORT-TERM INSTRUMENTS (COST
$319,000)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $326,489,871)* 96.25% $466,416,586
OTHER ASSETS AND LIABILITIES, NET 3.75 18,178,605
------- ------------
TOTAL NET ASSETS 100.00% $484,595,191
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $154,045,841
GROSS UNREALIZED DEPRECIATION (14,119,126)
-----------
NET UNREALIZED APPRECIATION $139,926,715
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
59
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GROWTH EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INTERNATIONAL
EQUITY PORTFOLIO $110,618,808
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO 143,381,984
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO 301,932,644
N/A WELLS FARGO SMALL CAP INDEX
PORTFOLIO 72,451,115
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO 77,030,423
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO 75,472,379
N/A WELLS FARGO SMALL COMPANY
VALUE PORTFOLIO 76,492,260
857,379,613
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.19%) (COST $458,113,311)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $458,113,311)* 100.19% $857,379,613
OTHER ASSETS AND LIABILITIES, NET (0.19) (1,608,386)
------- ------------
TOTAL NET ASSETS 100.00% $855,771,227
------- ------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $399,266,302
GROSS UNREALIZED DEPRECIATION 0
-----------
NET UNREALIZED APPRECIATION $399,266,302
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
60
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INDEX PORTFOLIO $1,000,299,798
--------------
1,000,299,798
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.29%) (COST $486,136,064)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $486,136,064)* 100.29% $1,000,299,798
OTHER ASSETS AND LIABILITIES, NET (0.29) (2,897,970)
------- --------------
TOTAL NET ASSETS 100.00% $ 997,401,828
------- --------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $514,163,734
GROSS UNREALIZED DEPRECIATION 0
-----------
NET UNREALIZED APPRECIATION $514,163,734
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
61
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO INTERNATIONAL
PORTFOLIO $328,707,319
------------
328,707,319
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(97.91%) (COST $286,122,572)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $286,122,572)* 97.91% $328,707,319
OTHER ASSETS AND LIABILITIES, NET 2.09 6,999,787
------- ------------
TOTAL NET ASSETS 100.00% $335,707,106
------- ------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $42,584,747
GROSS UNREALIZED DEPRECIATION 0
----------
NET UNREALIZED APPRECIATION $42,584,747
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
COMMON STOCKS - 90.49%
AUSTRALIA - 2.33%
165,000 BROKEN HILL PROPRIETARY CO LTD
(METALS & MINING)+ $ 1,786,075
215,000 NEWS CORP LTD (MEDIA -
BROADCASTING & PUBLISHING)+ 3,002,733
4,788,808
------------
BRAZIL - 0.54%
52,000 ARACRUZ CELULOSE SA ADR
(FOREST PRODUCTS & PAPER)+ 1,101,750
------------
FINLAND - 2.11%
20,000 NOKIA CORP ADR
(COMMUNICATIONS)+ 4,345,000
------------
FRANCE - 9.98%
23,000 AXA UAP (INSURANCE)+ 3,261,365
11,000 CANAL PLUS (MEDIA -
BROADCASTING & PUBLISHING)+ 2,422,350
11,000 CAP GEMINI SA (COMPUTER
SOFTWARE & PROCESSING)+ 2,980,545
65,000 GROUPE DANONE ADR (BEVERAGES,
FOOD, & TOBACCO)+ 2,876,250
16,500 SUEZ LYONNAISE DES EAUX SA
(INDUSTRIAL - DIVERSIFIED)+ 2,837,310
21,000 TOTAL SA - SERIES B (OIL &
GAS)+ 3,146,663
26,000 VIVENDI (INDUSTRIAL -
DIVERSIFIED)+ 2,999,693
20,524,176
------------
GERMANY - 7.15%
8,300 ALLIANZ AG (INSURANCE)+ 3,397,275
45,000 DEUTSCHE BANK AG - REG
(BANKING)+ 2,981,503
25,000 INFINEON TECHNOLOGIES AG
(ELECTRONICS)+ 1,365,563
28,000 METRO AG (RETAILERS)+ 1,109,878
37,000 SGL CARBON AG (CHEMICALS)+ 2,798,628
13,000 SIEMENS AG (INDUSTRIAL -
DIVERSIFIED)+ 1,866,905
23,000 VEBA AG (INDUSTRIAL -
DIVERSIFIED)+ 1,172,639
14,692,391
------------
GREAT BRITAIN - 13.93%
262,000 AMVESCAP PLC (FINANCIAL
SERVICES)+ 3,557,410
24,000 ARM HOLDINGS PLC ADR
(ELECTRONICS)+ 4,266,000
192,000 BP AMOCO PLC (OIL & GAS)+ 1,753,766
130,000 BRITISH TELECOMMUNICATIONS PLC
(COMMUNICATIONS)+ 2,432,872
150,200 HSBC HOLDINGS PLC (FINANCIAL
SERVICES)+ 1,755,357
450,000 INVENSYS PLC (COMMERCIAL
SERVICES)+ 1,996,065
37,000 NDS GROUP PLC (MEDIA -
BROADCASTING & PUBLISHING)+ 2,608,500
170,000 ROYAL BANK OF SCOTLAND GROUP
PLC (BANKING)+ 2,499,119
29,000 SMITHKLINE BEECHAM PLC ADR
(PHARMACEUTICALS)+ 1,915,813
330,000 TELEWEST COMMUNICATIONS PLC
(MEDIA - BROADCASTING &
PUBLISHING)+ 2,530,737
600,000 VODAFONE GROUP PLC ADR
(COMMUNICATIONS)+ 3,330,360
28,645,999
------------
HONG KONG - 2.22%
305,000 CHEUNG KONG LTD (REAL ESTATE)+ 4,563,318
------------
</TABLE>
63
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
HUNGARY - 1.15%
53,000 MATAV RT ADR (MEDIA -
BROADCASTING & PUBLISHING)+ $ 2,365,125
------------
IRELAND - 3.45%
56,000 ELAN CORP PLC ADR
(PHARMACEUTICALS)+ 2,660,000
164,800 RYANAIR HOLDINGS PLC
(AIRLINES)+ 1,364,890
67,000 RYANAIR HOLDINGS PLC ADR
(AIRLINES)+ 3,073,625
7,098,515
------------
ITALY - 1.59%
312,000 ENI SPA (OIL & GAS)+ 1,562,340
125,000 SAN PAOLO - IMI SPA (BANKING)+ 1,712,638
3,274,978
------------
JAPAN - 20.24%
24,000 BENESSE CORP (COMMERCIAL
SERVICES)+ 2,459,621
26,000 FAMILYMART CO LTD (RETAILERS)+ 1,286,704
95,000 FUJITSU LTD (ELECTRONICS)+ 2,915,246
49,000 HONDA MOTOR CO LTD
(AUTOMOTIVE)+ 2,023,965
150,000 NIKKO SECURITIES COMPANY LTD
(FINANCIAL SERVICES)+ 2,270,820
1,800 NIPPON TELEGRAPH & TELEPHONE
CORP (COMMUNICATIONS)+ 2,858,255
105,000 NOMURA SECURITIES CO LTD
(FINANCIAL SERVICES)+ 3,426,696
80,000 OMRON CORP (ELECTRONICS)+ 2,275,695
2,000 ORACLE CORPORATION JAPAN
(COMPUTER SOFTWARE &
PROCESSING)+ 1,675,597
30,000 SECOM CO LTD (COMMERCIAL
SERVICES)+ 2,571,846
30,000 SEVEN ELEVEN JAPAN CO LTD
(RETAILERS)+ 3,448,611
145,000 SHARP CORP (ELECTRONICS)+ 3,100,579
3,700 SOFTBANK CORP (COMPUTER
SOFTWARE & PROCESSING)+ 3,298,100
21,000 SONY CORP (ELECTRONICS)+ 2,966,391
34,000 TAKEDA CHEMICAL INDUSTRIES
(PHARMECEUTICALS)+ 2,417,925
50,000 TOYOTA MOTOR CORP
(AUTOMOTIVE)+ 2,615,685
41,611,736
------------
LUXEMBOURG - 0.98%
110,000 RITEK CORP GDR (ELECTRONICS)+ 2,024,319
------------
MEXICO - 3.28%
720,000 GRUPO TELEVISA SA - SER CPO
(MEDIA - BROADCASTING &
PUBLISHING)+ 2,467,800
1,280,000 TELEFONOS DE MEXICO SA
(COMMUNICATIONS)+ 4,270,080
6,737,880
------------
NETHERLANDS - 8.17%
73,000 KONINKLIJKE AHOLD NV (FOOD
RETAILERS)+ 1,900,416
30,100 KONINKLIJKE (ROYAL)+ 5,156,506
35,000 ROYAL DUTCH PETROLEUM CO
(OIL & GAS)+ 2,014,688
23,000 STMICROELECTRONICS
(ELECTRONICS)+ 4,228,099
34,000 UNILEVER NV (INDUSTRIAL -
DIVERSIFIED)+ 1,678,124
39,000 UNITED PAN-EUROPE
COMMUNICATIONS NV
(COMMUNICATIONS)+ 1,823,340
16,801,173
------------
</TABLE>
64
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
NORWAY - 0.88%
103,000 PETROLEUM GEO-SERVICES ASA
(OIL & GAS)+ $ 1,805,878
------------
SINGAPORE - 1.67%
259,560 DBS GROUP HOLDINGS LTD
(FINANCIAL SERVICES)+ 3,426,841
------------
SOUTH KOREA - 0.85%
40,000 KOREA TELECOM CORP ADR
(COMMUNICATIONS)+ 1,750,000
------------
SPAIN - 2.05%
180,000 BANCO SANTANDER CENTRAL
HISPANO SA (BANKING)+ 1,935,396
90,000 TELEFONICA SA
(COMMUNICATIONS)+ 2,274,903
4,210,299
------------
SWEDEN - 2.24%
49,000 TELEFONAKTIEBOLAGET LM
ERICSSON ADR (COMMUNICATIONS)+ 4,596,813
------------
SWITZERLAND - 4.69%
2,700 ADECCO SA (COMMERCIAL
SERVICES)+ 1,867,894
900 JULIUS BAER HOLDING AG
CLASS B (FINANCIAL SERVICES)+ 3,389,280
1,300 NESTLE SA (BEVERAGES, FOOD &
TOBACCO)+ 2,330,506
1,500 NOVARTIS AG - REGISTERED
SHARES (PHARMACEUTICALS)+ 2,051,976
9,639,656
------------
TAIWAN - 1.00%
71,000 ASE TEST LTD TDR
(ELECTRONICS)+ 2,059,000
------------
186,063,655
TOTAL COMMON STOCKS (COST $145,722,845)
------------
PREFERRED STOCKS - 0.78%
BRAZIL - 0.78%
54,793,818 TELECOMUNICACOES DE SAO PAULO
(COMMUNICATIONS)+ 1,610,938
------------
1,610,938
TOTAL PREFERRED STOCKS (COST $1,399,394)
------------
MUTUAL FUNDS - 0.93%
UNITED STATES - 0.93%
20,000 WEBS - GERMANY INDEX
SERIES (FINANCIAL SERVICES)+ 540,000
83,000 WEBS - JAPAN INDEX
SERIES (FINANCIAL SERVICES)+ 1,364,313
1,904,313
TOTAL MUTUAL FUNDS (COST $1,703,873)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $148,826,112)* 92.20% $189,578,906
OTHER ASSETS AND LIABILITIES, NET 7.80 16,033,412
------- ------------
TOTAL NET ASSETS 100.00% $205,612,318
------- ------------
</TABLE>
+ NON-INCOME PRODUCING SECURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF :
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $43,961,616
GROSS UNREALIZED DEPRECIATION (3,208,822)
----------
NET UNREALIZED APPRECIATION $40,752,794
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
65
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO LARGE COMPANY
GROWTH PORTFOLIO $2,044,103,549
--------------
2,044,103,549
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.56%) (COST $1,378,766,887)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $1,378,766,887)* 100.56% $2,044,103,549
OTHER ASSETS AND LIABILITIES, NET (0.56) (11,352,055)
------- --------------
TOTAL NET ASSETS 100.00% $2,032,751,494
------- --------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $665,336,662
GROSS UNREALIZED DEPRECIATION 0
-----------
NET UNREALIZED APPRECIATION $665,336,662
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 92.51%
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.36%
116,640 CSK AUTO CORPORATION+ $ 1,625,670
------------
BUSINESS SERVICES - 23.75%
63,625 24/7 MEDIA INCORPORATED+ 2,513,189
41,950 ACCRUE SOFTWARE INCORPORATED+ 1,921,180
93,425 ADMINISTAFF INCORPORATED+ 3,666,931
42,750 AVENUE A INCORPORATED+ 1,303,875
23,975 AXENT TECHNOLOGIES
INCORPORATED+ 451,030
46,130 BROADBASE SOFTWARE
INCORPORATED+ 3,678,868
32,275 CYBERSOURCE CORPORATION+ 1,202,244
63,900 DEST CORPORATION+ 1,178,156
50,000 ENTRUST TECHNOLOGIES
INCORPORATED+ 4,253,905
79,925 FUTURELINK CORPORATION+ 2,008,116
101,100 GETTY IMAGES INCORPORATED+ 3,633,281
100,036 GLOBIX CORPORATION+ 3,813,873
294,428 INFORMIX CORPORATION+ 4,986,874
27,852 INFORTE CORPORATION+ 1,364,748
20,000 MANHATTAN ASSOCIATES
INCORPORATED+ 685,000
33,425 MANUGISTICS GROUP
INCORPORATED+ 1,679,606
84,360 MARIMBA INCORPORATED+ 3,722,385
74,600 MATRIXONE INCORPORATED+ 2,979,338
121,500 METAMOR WORLDWIDE
INCORPORATED+ 3,439,969
57,150 MISSION CRITICAL SOFTWARE
INCORPORATED+ 3,493,294
27,200 NAVISITE INCORPORATED+ 3,311,600
125,411 NET PERCEPTIONS INCORPORATED+ 4,632,369
2,300 NET.GENESIS CORPORATION+ 102,925
7,300 NETSOLVE INCORPORATED+ 235,425
18,223 NETWORK PERIPHERALS
INCORPORATED+ 646,917
65,600 PACKETEER INCORPORATED+ 2,296,000
7,240 PREDICTIVE SYSTEMS
INCORPORATED+ 329,874
21,310 PRI AUTOMATION INCORPORATED+ 1,302,574
39,168 RAZORFISH INCORPORATED+ 1,077,120
32,875 S1 CORPORATION+ 2,816,976
23,807 SEI INVESTMENTS COMPANY 2,700,607
95,750 TELETECH HOLDINGS
INCORPORATED+ 3,303,375
89,086 TRUE NORTH COMMUNICATIONS
INCORPORATED 3,502,193
93,775 TSI INTERNATIONAL SOFTWARE
LIMITED+ 7,789,186
75,750 USINTERNETWORKING
INCORPORATED+ 2,935,312
56,420 VERTICALNET INCORPORATED+ 7,673,120
53,500 VIANT CORPORATION+ 1,792,250
47,275 VIGNETTE CORPORATION+ 7,575,819
105,999,504
------------
CHEMICALS & ALLIED PRODUCTS - 5.61%
21,085 ABGENIX INCORPORATED+ 2,912,365
66,872 CAMBREX CORPORATION 2,908,932
27,575 EMISPHERE TECHNOLOGIES
INCORPORATED+ 1,430,453
</TABLE>
67
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
42,475 GILEAD SCIENCES INCORPORATED+ $ 2,691,853
30,375 IDEC PHARMACEUTICALS
CORPORATION+ 2,984,344
97,869 KING PHARMACEUTICALS
INCORPORATED+ 3,082,858
78,655 MEDICIS PHARMACEUTICAL
CORPORATION+ 3,146,200
44,239 PHARMACYCLICS INCORPORATED+ 2,463,559
40,179 SHIRE PHARMACEUTICALS GROUP
PLC+ 2,059,148
40,575 VICAL INCORPORATED+ 1,359,263
25,038,975
------------
COMMUNICATIONS - 9.11%
28,925 AIRGATE PCS INCORPORATED+ 3,051,589
81,150 ALLIED RISER COMMUNICATIONS
CORPORATION+ 2,819,963
42,775 COMMONWEALTH TELEPHONE
ENTERPRISES INCORPORATED+ 2,007,752
77,425 DOBSON COMMUNICATIONS
CORPORATION+ 1,780,775
55,050 DSLN.NET INCORPORATED+ 1,214,541
59,382 EMMIS COMMUNICATIONS
CORPORATION+ 2,761,263
44,100 ENTERCOM COMMUNICATIONS
CORPORATION+ 2,249,100
47,325 FIRSTWORLD COMMUNICATIONS
INCORPORATED+ 964,247
16,422 GT GROUP TELECOM INCORPORATED+ 342,808
45,675 ILLUMINET HOLDINGS
INCORPORATED+ 2,248,781
37,825 INTERMEDIA COMMUNICATIONS
INCORPORATED+ 1,827,420
86,938 ITC DELTACOM INCORPORATED+ 3,097,166
19,100 ITXC CORPORATION+ 898,894
34,600 MASTEC INCORPORATED+ 3,079,445
34,500 MGC COMMUNICATIONS
INCORPORATED+ 2,466,750
34,000 NDS GROUP PLC ADR 2,397,000
57,700 SBA COMMUNICATIONS
CORPORATION+ 2,538,800
21,275 TRITON PCS INCORPORATED+ 1,271,181
12,112 UNIVERSAL ACCESS INCORPORATED+ 405,752
63,925 VIATEL INCORPORATED+ 3,208,236
40,631,463
------------
DEPOSITORY INSTITUTIONS - 1.81%
161,427 COMMUNITY FIRST BANKSHARES
INCORPORATED 2,582,832
183,954 FIRSTFED FINANCIAL
CORPORATION+ 2,437,391
42,845 SILICON VALLEY BANCSHARES+ 3,079,484
8,099,707
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 15.03%
43,600 ADVANCED FIBRE COMMUNICATIONS
INCORPORATED+ 2,733,175
83,575 AMKOR TECHNOLOGY INCORPORATED+ 4,434,698
28,400 ASPECT COMMUNICATIONS
CORPORATION+ 1,052,575
45,450 BURR-BROWN CORPORATION+ 2,471,344
97,025 CTC COMMUNICATIONS GROUP
INCORPORATED+ 4,135,669
107,350 CYPRESS SEMICONDUCTOR
CORPORATION+ 5,293,697
39,594 DIGITAL LIGHTWAVE
INCORPORATED+ 2,467,201
55,575 DIGITAL MICROWAVE CORPORATION+ 1,882,603
29,700 DII GROUP INCORPORATED+ 3,357,956
</TABLE>
68
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
35,225 HARMONIC INCORPORATED+ $ 2,932,481
27,875 HI/FN INCORPORATED+ 1,813,617
42,550 JNI CORPORATION+ 2,164,732
49,350 LATTICE SEMICONDUCTOR
CORPORATION+ 3,340,379
23,800 METRICOM INCORPORATED+ 1,103,725
38,210 MICREL INCORPORATED+ 3,668,160
30,400 NETRO CORPORATION+ 1,976,474
77,975 PLX TECHNOLOGY INCORPORATED+ 2,903,352
35,925 SEMTECH CORPORATION+ 2,301,445
53,615 SIPEX CORPORATION+ 1,893,280
23,575 TERAYON COMMUNICATION SYSTEMS
INCORPORATED+ 4,832,875
34,312 TRANSWITCH CORPORATION+ 3,298,241
94,133 TUT SYSTEMS INCORPORATED+ 5,606,797
91,300 VIASYSTEMS GROUP INCORPORATED+ 1,415,150
67,079,626
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 3.68%
14,850 AFFYMETRIX INCORPORATED+ 2,204,297
949 BLOUNT INTERNATIONAL
INCORPORATED+ 12,218
63,325 CEPHALON INCORPORATED+ 2,374,687
75,150 DIAMOND TECHNOLOGY PARTNERS
INCORPORATED+ 4,941,113
71,074 DIGITAS INCORPORATED+ 1,741,313
23,300 INCYTE PHARMACEUTICALS
INCORPORATED+ 2,027,100
23,900 MILLENNIUM PHARMACEUTICALS
INCORPORATED+ 3,104,013
16,404,741
------------
FOOD STORES - 0.16%
70,400 HOMEGROCER.COM+ 730,400
------------
GENERAL MERCHANDISE STORES - 1.81%
49,625 99 CENTS ONLY STORES+ 1,947,781
113,839 AMES DEPARTMENT STORES
INCORPORATED+ 2,796,170
85,889 BJ'S WHOLESALE CLUB
INCORPORATED+ 3,317,463
8,061,414
------------
HEALTH SERVICES - 1.39%
100,600 ENZON INCORPORATED+ 3,791,363
29,050 HUMAN GENOME SCIENCE
INCORPORATED+ 2,412,965
6,204,328
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.62%
81,125 LINENS 'N THINGS INCORPORATED+ 2,778,531
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.16%
119,150 ASYST TECHNOLOGIES
INCORPORATED+ 6,970,275
27,200 EMULEX CORPORATION+ 2,968,200
136,025 LAM RESEARCH CORPORATION+ 6,129,626
59,965 PARADYNE NETWORKS
INCORPORATED+ 1,858,915
2,400 RADVISION LIMITED+ 125,700
</TABLE>
69
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
77,175 SANDISK CORPORATION+ $ 9,453,938
27,506,654
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.79%
109,062 ARTHUR J. GALLAGHER & COMPANY 3,544,515
------------
INSURANCE CARRIERS - 0.36%
90,900 FPIC INSURANCE GROUP
INCORPORATED+ 1,590,750
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 1.22%
56,975 ASPECT MEDICAL SYSTEMS
INCORPORATED+ 2,043,978
55,053 CERUS CORPORATION+ 2,656,307
10,000 VEECO INSTRUMENTS
INCORPORATED+ 740,000
5,440,285
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.39%
110,580 YANKEE CANDLE COMPANY
INCORPORATED+ 1,748,546
------------
MISCELLANEOUS RETAIL - 1.00%
70,200 MICHAELS STORES INCORPORATED+ 2,860,650
133,150 PETCO ANIMAL SUPPLIES
INCORPORATED+ 1,581,155
4,441,805
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.34%
196,818 AMERICREDIT CORPORATION+ 3,210,593
74,500 COMPUCREDIT CORPORATION+ 2,695,968
116,819 METRIS COMPANIES INCORPORATED 4,541,339
10,447,900
------------
OIL & GAS EXTRACTION - 4.38%
180,225 HELMERICH & PAYNE INCORPORATED 5,586,974
216,575 MARINE DRILLING COMPANY
INCORPORATED+ 5,942,277
53,809 NEWFIELD EXPLORATION COMPANY+ 1,896,767
109,375 PRECISION DRILLING
CORPORATION+ 3,650,391
65,146 UTI ENERGY CORPORATION+ 2,459,262
19,535,671
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.67%
97,875 VALERO ENERGY CORPORATION 2,997,422
------------
PRIMARY METAL INDUSTRIES - 1.16%
113,755 COMMSCOPE INCORPORATED+ 5,190,072
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.81%
85,150 WADDELL & REED FINANCIAL
INCORPORATED - CLASS A 3,602,909
------------
TECHNOLOGY - COMPUTER/APPLICATIONS SOFTWARE - 7.21%
61,175 ACTIVE SOFTWARE INCORPORATED+ 3,891,305
50,800 ACTUATE CORPORATION+ 2,733,675
117,939 BINDVIEW DEVELOPMENT
CORPORATION+ 3,663,480
36,875 CLARUS CORPORATION+ 2,604,297
</TABLE>
70
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TECHNOLOGY (continued)
8,477 HNC SOFTWARE INCORPORATED+ $ 610,874
77,100 HYPERION SOLUTIONS
CORPORATION+ 2,505,750
92,885 MERCURY INTERACTIVE
CORPORATION+ 7,361,136
40,000 METASOLV SOFTWARE
INCORPORATED+ 2,362,500
37,860 MICROMUSE INCORPORATED+ 5,255,441
11,200 ONDISPLAY INCORPORATED+ 925,400
10,000 SALESLOGIX CORPORATION+ 270,624
32,184,482
------------
TRANSPORTATION SERVICES - 0.38%
45,075 C.H. ROBINSON WORLDWIDE
INCORPORATED 1,679,044
------------
WHOLESALE TRADE-DURABLE GOODS - 2.31%
30,075 ACT MANUFACTURING
INCORPORATED+ 1,682,320
91,750 CYTYC CORPORATION+ 4,426,938
68,725 INSIGHT ENTERPRISES
INCORPORATED+ 2,504,167
58,375 KENT ELECTRONICS CORPORATION+ 1,703,820
10,317,245
------------
412,881,659
TOTAL COMMON STOCK (COST $365,025,701)
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 6.04%
REPURCHASE AGREEMENTS - 6.04%
$17,576,000 GOLDMAN SACHS 6.15% 4/3/00 $17,576,000
9,359,000 J.P. MORGAN SECURITIES 6.12 4/3/00 9,359,000
26,935,000
TOTAL SHORT-TERM INSTRUMENTS (COST
$26,935,000)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $391,960,701)* 98.55% $439,816,659
OTHER ASSETS AND LIABILITIES, NET 1.45 6,484,418
------- -----------
TOTAL NET ASSETS 100.00% $446,301,077
------- -----------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $93,078,656
GROSS UNREALIZED DEPRECIATION (45,222,698)
-----------
NET UNREALIZED APPRECIATION $47,855,958
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
71
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME
<C> <S> <C>
COMMON STOCK - 92.58%
APPAREL & ACCESSORY STORES - 0.50%
60,600 CLAIRE'S STORES INCORPORATED $ 1,215,788
-----------
BASIC MATERIALS - 0.18%
56,100 DAL-TILE INTERNATIONAL INCORPORATED + 445,294
-----------
BUSINESS SERVICES - 9.36%
80,700 AFFILIATED COMPUTER SERVICES CLASS A+ 3,066,600
11,800 CATALINA MARKETING CORPORATION+ 1,194,750
85,000 MODIS PROFESSIONAL SERVICES
INCORPORATED+ 1,051,874
33,100 NETPLIANCE INCORPORATED+ 479,950
96,773 NOVA CORPORATION+ 2,818,514
90,700 PROGRESS SOFTWARE CORPORATION+ 2,125,781
10,774 REMEDY CORPORATION+ 453,855
134,944 RENT-WAY INCORPORATED+ 2,631,409
85,200 SYBASE INCORPORATED+ 1,730,625
54,100 SYMANTEC CORPORATION+ 4,064,263
53,367 TRUE NORTH COMMUNICATIONS INCORPORATED 2,097,990
32,800 UNIGRAPHICS SOLUTIONS INCORPORATED+ 969,650
22,685,261
-----------
CAPITAL GOODS/CONSTRUCTION - 0.34%
63,100 UCAR INTERNATIONAL INCORPORATED+ 832,131
-----------
CHEMICALS & ALLIED PRODUCTS - 0.70%
39,144 CAMBREX CORPORATION 1,702,764
-----------
COMMUNICATIONS - 4.24%
98,000 BEASLEY BROADCAST GROUP+ 906,500
34,700 CHOICE ONE COMMUNICATIONS INCORPORATED+ 1,231,850
77,000 DOBSON COMMUNICATIONS CORPORATION+ 1,771,000
48,300 EMMIS COMMUNICATIONS CORPORATION+ 2,245,950
53,100 ITC DELTACOM INCORPORATED+ 1,891,685
28,500 PAC-WEST TELECOMM INCORPORATED+ 890,625
30,600 SBA COMMUNICATIONS CORPORATION+ 1,346,400
10,284,010
-----------
CONSUMER CYCLICAL - 2.18%
139,192 HOLLYWOOD ENTERTAINMENT CORPORATION+ 1,122,236
140,608 RENT-A-CENTER INCORPORATED+ 2,109,120
107,610 WESTPOINT STEVENS INCORPORATED 2,044,590
5,275,946
-----------
CONSUMER STAPLES - 1.02%
118,306 FAMILY DOLLAR STORES INCORPORATED 2,462,244
-----------
DEPOSITORY INSTITUTIONS - 1.32%
76,763 BANK UNITED CORPORATION 2,422,832
</TABLE>
72
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME
<C> <S> <C>
DEPOSITORY INSTITUTIONS (continued)
29,602 CULLEN/FROST BANKERS INCORPORATED $ 782,603
3,205,435
-----------
EATING & DRINKING PLACES - 2.77%
94,761 CEC ENTERTAINMENT INCORPORATED+ 2,570,392
148,657 JACK IN THE BOX INCORPORATED+ 3,168,252
55,945 RUBY TUESDAY INCORPORATED 979,038
6,717,682
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.93%
51,600 AVISTA CORPORATION 2,102,700
114,993 EL PASO ELECTRIC COMPANY+ 1,193,052
82,100 KINDER MORGAN INCORPORATED 2,832,450
52,996 MONTANA POWER COMPANY 3,391,744
9,519,946
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 13.27%
38,100 AMPHENOL CORPORATION+ 3,895,725
92,100 ARTESYN TECHNOLOGIES INCORPORATED+ 1,744,144
41,800 BURR-BROWN CORPORATION+ 2,272,875
42,104 CTS CORPORATION 2,399,928
16,200 DIGITAL MICROWAVE CORPORATION+ 548,775
14,500 DUPONT PHOTOMASKS INCORPORATED+ 840,094
68,900 FAIRCHILD SEMICONDUCTOR CORPORATION+ 2,514,850
33,200 HADCO CORPORATION+ 2,145,550
90,400 INTEGRATED DEVICE TECHNOLOGY
INCORPORATED+ 3,582,100
25,500 LATTICE SEMICONDUCTOR CORPORATION+ 1,726,031
30,500 LITTELFUSE INCORPORATED+ 1,118,968
108,300 OAK TECHNOLOGY INCORPORATED+ 2,084,775
10,900 P-COM INCORPORATED+ 201,650
44,700 PERICOM SEMICONDUCTOR CORPORATION+ 1,595,231
9,500 PLEXUS CORPORATION+ 632,938
28,300 TECHNITROL INCORPORATED 1,648,475
82,300 THOMAS & BETTS CORPORATION 2,324,975
14,300 VARIAN SEMICONDUCTOR EQUIPMENT
ASSOCIATES INCORPORATED+ 909,838
32,186,922
-----------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES -
3.76%
58,483 ACNIELSON CORPORATION+ 1,315,868
66,000 CORE LABORATORIES NV+ 1,918,125
65,457 PERKIN ELMER INCORPORATED 4,352,890
64,000 TETRA TECH INCORPORATED+ 1,520,000
9,106,883
-----------
FINANCIAL - 1.53%
49,880 AFFILIATED MANAGERS GROUP INCORPORATED+ 2,369,300
74,622 AMERUS LIFE HOLDINGS INCORPORATED 1,352,524
3,721,824
-----------
</TABLE>
73
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME
<C> <S> <C>
FOOD & KINDRED PRODUCTS - 0.79%
119,300 INTERNATIONAL HOME FOODS INCORPORATED+ $ 1,908,800
-----------
GENERAL MERCHANDISE STORES - 1.68%
78,910 AMES DEPARTMENT STORES INCORPORATED+ 1,938,227
119,595 SHOPKO STORES INCORPORATED+ 2,122,811
4,061,038
-----------
HEALTH CARE - 2.13%
90,200 LINCARE HOLDINGS INCORPORATED+ 2,559,425
65,507 QUEST DIAGNOSTICS INCORPORATED+ 2,603,903
5,163,328
-----------
HEALTH SERVICES - 4.21%
159,700 APRIA HEALTHCARE GROUP INCORPORATED+ 2,305,669
710,000 LABORATORY CORPORATION OF AMERICA
HOLDINGS+ 3,061,875
86,400 TRIAD HOSPITALS INCORPORATED+ 1,447,200
69,400 UNIVERSAL HEALTH SERVICES INCORPORATED+ 3,400,600
10,215,344
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.36%
80,300 APPLIED SCIENCE AND TECHNOLOGY
INCORPORATED+ 2,429,075
46,614 COOPER CAMERON CORPORATION+ 3,117,311
86,600 HARRIS CORPORATION 2,993,113
70,200 IN FOCUS SYSTEMS INCORPORATED+ 2,514,037
33,800 KULICKE & SOFFA INDUSTRIES INCORPORATED+ 2,165,313
28,300 PENTAIR INCORPORATED 1,048,869
23,321 ZEBRA TECHNOLOGIES CORPORATION+ 1,166,050
15,433,768
-----------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 10.71%
21,700 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 1,106,700
40,900 BARD (C R) INCORPORATED 1,582,319
37,000 BECKMAN COULTER INCORPORATED 2,374,937
46,600 COHU INCORPORATED 1,942,637
36,600 CYMER INCORPORATED+ 1,830,000
98,309 INVACARE CORPORATION 2,697,353
59,300 LITTON INDUSTRIES INCORPORATED+ 2,620,319
106,600 MENTOR CORPORATION 2,878,200
30,100 METTLER-TOLEDO INTERNATIONAL
INCORPORATED+ 1,232,219
57,500 PINNACLE SYSTEMS INCORPORATED+ 1,911,875
81,400 TEKTRONIX INCORPORATED 4,558,400
14,300 THERMA-WAVE INCORPORATED+ 486,200
19,300 VARIAN INCORPORATED+ 740,638
25,961,797
-----------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.10%
110,600 AMERICREDIT CORPORATION+ 1,804,163
</TABLE>
74
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME
<C> <S> <C>
NONDEPOSITORY CREDIT INSTITUTIONS (continued)
142,182 HELLER FINANCIAL INCORPORATED $ 3,287,958
5,092,121
-----------
OIL & GAS EXTRACTION - 3.59%
36,820 B J SERVICES COMPANY+ 2,720,078
14,000 CAL DIVE INTERNATIONAL INCORPORATED+ 710,500
622,500 GREY WOLF INCORPORATED+ 2,451,094
123,300 PRIDE INTERNATIONAL INCORPORATED+ 2,812,781
8,694,453
-----------
PERSONAL SERVICES - 1.12%
182,785 REGIS CORPORATION 2,707,503
-----------
PRIMARY METAL INDUSTRIES - 1.85%
55,200 COMMSCOPE INCORPORATED+ 2,518,500
65,172 MUELLER INDUSTRIES INCORPORATED+ 1,979,600
4,498,100
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.95%
69,246 VALASSIS COMMUNICATIONS INCORPORATED+ 2,306,757
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.31%
53,986 WEATHERFOLD INTERNATIONAL INCORPORATED+ 3,181,800
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES -
0.51%
45,400 FEDERATED INVESTORS INCORPORATED 1,239,988
-----------
TRANSPORTATION - 1.22%
25,915 SPX CORPORATION+ 2,952,690
-----------
TRANSPORTATION EQUIPMENT - 0.45%
35,500 OSHKOSH TRUCK CORPORATION 1,102,719
-----------
TRANSPORTATION/SERVICES/MISCELLANEOUS - 3.48%
11,710 COX RADIO INCORPORATED+ 983,640
107,530 MESABA HOLDINGS INCORPORATED+ 1,229,874
25,842 PINNACLE HOLDINGS INCORPORATED+ 1,427,770
65,360 REMEDYTEMP INCORPORATED+ 1,446,090
155,965 SCHOOL SPECIALTY INCORPORATED+ 3,353,248
8,440,622
-----------
UTILITIES - 1.44%
61,231 HANOVER COMPRESSOR COMPANY+ 3,482,513
-----------
WHOLESALE TRADE-DURABLE GOODS - 2.87%
53,500 ACT MANUFACTURING INCORPORATED+ 2,992,656
12,500 ARROW ELECTRONICS INCORPORATED+ 440,625
121,361 SYBRON INTERNATIONAL CORPORATION+ 3,519,469
6,952,750
-----------
WHOLESALE TRADE-NONDURABLE GOODS - 0.71%
55,900 NATIONAL-OILWELL INCORPORATED+ 1,725,913
-----------
224,484,134
TOTAL COMMON STOCK (COST $180,147,907)
-----------
</TABLE>
75
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 10.28%
REPURCHASE AGREEMENTS - 10.28%
$24,934,520 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY
U.S GOVERNMENT SECURITIES 6.22% 4/3/00 $ 24,934,520
------------
24,934,520
TOTAL SHORT-TERM INSTRUMENTS (COST
$24,934,520)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $205,082,427)* 102.86% $249,418,654
OTHER ASSETS AND LIABILITIES, NET (2.86) (6,931,831)
------- ------------
TOTAL NET ASSETS 100.00% $242,486,823
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $57,214,992
GROSS UNREALIZED DEPRECIATION (12,878,765)
-----------
NET UNREALIZED APPRECIATION $44,336,227
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
76
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL CAP VALUE
PORTFOLIO $18,081,924
-----------
18,081,924
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(100.70%) (COST $14,255,647)
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $14,255,647)* 100.70% $18,081,924
OTHER ASSETS AND LIABILITIES, NET (0.70) (126,139)
------- -----------
TOTAL NET ASSETS 100.00% $17,955,785
------- -----------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $3,826,277
GROSS UNREALIZED DEPRECIATION 0
---------
NET UNREALIZED APPRECIATION $3,826,277
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
77
<PAGE>
STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE
AMOUNT SECURITY DESCRIPTION VALUE
<C> <S> <C> <C> <C>
N/A WELLS FARGO SMALL COMPANY
GROWTH PORTFOLIO $661,514,855
------------
661,514,855
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(99.77%) (COST $563,897,162)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN CORE PORTFOLIOS
(COST $563,897,162)* 99.77% $661,514,855
OTHER ASSETS AND LIABILITIES, NET 0.23 1,505,280
------- ------------
TOTAL NET ASSETS 100.00% $663,020,135
------- ------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $97,617,693
GROSS UNREALIZED DEPRECIATION 0
----------
NET UNREALIZED APPRECIATION $97,617,693
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
79
<PAGE>
STOCK FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED DIVERSIFIED
GROWTH EQUITY
<S> <C> <C>
------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW).... $38,554,251 $2,331,583,826
CASH........................ 0 0
CASH DENOMINATED IN FOREIGN
CURRENCIES (COST
$2,700,368)............... 0 0
COLLATERAL FOR SECURITY
LOANED.................... 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 345 0
RECOVERABLE FOREIGN
WITHHOLDING TAXES......... 0 0
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 14,660 6,210,925
ORGANIZATION COST, NET OF
AMORTIZATION.............. 3,796 0
PREPAID EXPENSES............ 4,503 0
VARIATION MARGIN ON FUTURES
CONTRACTS................. 0 0
---------- -------------
TOTAL ASSETS.................. 38,577,555 2,337,794,751
---------- -------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0
PAYABLE FOR SECURITY
LOANED.................... 0 0
DIVIDENDS PAYABLE........... 0 4,705
PAYABLE FOR FUND SHARES
REDEEMED.................. 55,407 6,483,991
UNREALIZED LOSS ON FOREIGN
CURRENCY FORWARD
CONTRACTS................. 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 4,872 597,181
PAYABLE TO OTHER RELATED
PARTIES................... 0 231,180
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 22,409 269,386
---------- -------------
TOTAL LIABILITIES............. 82,688 7,586,443
---------- -------------
TOTAL NET ASSETS.............. $38,494,867 $2,330,208,308
---------- -------------
NET ASSETS CONSIST OF:
------------------------------------------------------------
PAID-IN CAPITAL............. $22,675,358 $1,247,064,558
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. 30,570 4,081,558
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 5,982,948 134,307,897
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS AND
LIABILITIES IN FOREIGN
CURRENCIES................ 9,805,991 944,754,295
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0
---------- -------------
TOTAL NET ASSETS.............. $38,494,867 $2,330,208,308
---------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
------------------------------------------------------------
NET ASSETS - CLASS A.......... N/A $ 88,188,671
SHARES OUTSTANDING -
CLASS A..................... N/A 1,631,048
NET ASSET VALUE PER SHARE -
CLASS A..................... N/A $ 54.07
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A (1)......... N/A $ 57.37
NET ASSETS - CLASS B.......... N/A $ 143,075,400
SHARES OUTSTANDING -
CLASS B..................... N/A 2,688,604
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A $ 53.22
NET ASSETS - CLASS C.......... N/A $ 5,745,712
SHARES OUTSTANDING -
CLASS C..................... N/A 106,609
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A $ 53.90
NET ASSETS - INSTITUTIONAL
CLASS....................... $38,494,867 $2,093,198,525
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 2,967,896 38,718,127
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 12.97 $ 54.06
NET ASSETS - CLASS O.......... N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A
---------- -------------
INVESTMENTS AT COST
(NOTE 10)................... $28,748,260 $1,386,829,531
---------- -------------
</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.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
80
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED)
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY EQUITY EQUITY GROWTH
SMALL CAP INCOME INDEX VALUE GROWTH EQUITY
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW).... $91,025,772 $1,753,588,056 $755,516,992 $168,302,656 $466,416,586 $857,379,613
CASH........................ 0 0 139,283 41,145 6,732 0
CASH DENOMINATED IN FOREIGN
CURRENCIES (COST
$2,700,368)............... 0 0 0 0 0 0
COLLATERAL FOR SECURITY
LOANED.................... 0 0 112,630,225 26,940,941 93,175,698 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 0 3,006 570,094 72,004 114,799 0
RECOVERABLE FOREIGN
WITHHOLDING TAXES......... 0 0 0 0 0 0
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0 0 9,340,019 18,758,271 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 594,449 1,932,843 1,268,905 196,205 531,204 1,870,014
ORGANIZATION COST, NET OF
AMORTIZATION.............. 1,940 0 0 12,329 225 0
PREPAID EXPENSES............ 287 0 0 4,925 12,736 0
VARIATION MARGIN ON FUTURES
CONTRACTS................. 0 0 0 0 733,250 0
---------- ------------- ----------- ----------- ----------- -----------
TOTAL ASSETS.................. 91,622,448 1,755,523,905 870,125,499 204,910,224 579,749,501 859,249,627
---------- ------------- ----------- ----------- ----------- -----------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0 0 7,551,516 0 0
PAYABLE FOR SECURITY
LOANED.................... 0 0 112,630,225 26,940,941 93,175,698 0
DIVIDENDS PAYABLE........... 0 0 0 0 160 1,574
PAYABLE FOR FUND SHARES
REDEEMED.................. 83,572 4,194,676 553,147 414,544 1,119,383 3,029,440
UNREALIZED LOSS ON FOREIGN
CURRENCY FORWARD
CONTRACTS................. 0 0 0 0 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 27,136 225,582 347,821 126,773 368,544 235,387
PAYABLE TO OTHER RELATED
PARTIES................... 9,162 319,861 214,628 62,966 275,765 35,907
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 55,164 186,212 166,757 177,003 214,760 176,092
---------- ------------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES............. 175,034 4,926,331 113,912,578 35,273,743 95,154,310 3,478,400
---------- ------------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS.............. $91,447,414 $1,750,597,574 $756,212,921 $169,636,481 $484,595,191 $855,771,227
---------- ------------- ----------- ----------- ----------- -----------
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $78,233,963 $1,348,080,549 $230,405,934 $121,170,630 $261,448,913 $373,546,691
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. (19,761) 457,740 901,686 (74,263) (1,035,313) (2,198,997)
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 3,300,211 42,377,787 28,291,386 2,519,428 83,849,401 85,157,231
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS AND
LIABILITIES IN FOREIGN
CURRENCIES................ 9,933,001 359,681,498 496,296,590 46,020,686 139,926,715 399,266,302
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0 317,325 0 405,475 0
---------- ------------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS.............. $91,447,414 $1,750,597,574 $756,212,921 $169,636,481 $484,595,191 $855,771,227
---------- ------------- ----------- ----------- ----------- -----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $ 898,780 $ 212,799,425 $662,664,650 $26,811,326 $349,349,809 $20,647,707
SHARES OUTSTANDING -
CLASS A..................... 79,064 4,954,084 7,534,361 2,038,327 14,690,332 500,271
NET ASSET VALUE PER SHARE -
CLASS A..................... $ 11.37 $ 42.95 $ 87.95 $ 13.15 $ 23.78 $ 41.27
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A (1)......... $ 12.06 $ 45.57 $ 93.32 $ 13.96 $ 25.23 $ 43.79
NET ASSETS - CLASS B.......... $ 793,908 $ 163,939,227 $93,547,981 $50,597,523 $76,519,404 $25,615,687
SHARES OUTSTANDING -
CLASS B..................... 74,699 3,822,354 1,065,740 4,703,015 4,581,506 640,914
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... $ 10.63 $ 42.89 $ 87.78 $ 10.76 $ 16.70 $ 39.97
NET ASSETS - CLASS C.......... N/A $ 5,151,922 N/A $ 901,451 N/A $ 1,115,333
SHARES OUTSTANDING -
CLASS C..................... N/A 117,109 N/A 83,788 N/A 27,110
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A $ 43.99 N/A $ 10.76 N/A $ 41.14
NET ASSETS - INSTITUTIONAL
CLASS....................... $89,754,726 $1,368,707,000 N/A $91,326,181 $58,725,978 $808,392,500
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 8,341,513 31,868,942 N/A 6,953,360 2,104,135 19,564,671
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 10.76 $ 42.95 N/A $ 13.13 $ 27.91 $ 41.32
NET ASSETS - CLASS O.......... N/A N/A $ 290 N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A $ 3 N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A $ 88.94 N/A N/A N/A
---------- ------------- ----------- ----------- ----------- -----------
INVESTMENTS AT COST
(NOTE 10)................... $81,092,771 $1,393,906,558 $259,220,402 $122,281,970 $326,489,871 $458,113,311
---------- ------------- ----------- ----------- ----------- -----------
</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.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
81
<PAGE>
STOCK FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDEX INTERNATIONAL
<S> <C> <C>
----------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW).... $1,000,299,798 $328,707,319
CASH........................ 0 0
CASH DENOMINATED IN FOREIGN
CURRENCIES (COST
$2,700,368)............... 0 0
COLLATERAL FOR SECURITY
LOANED.................... 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 49,338 0
RECOVERABLE FOREIGN
WITHHOLDING TAXES......... 0 0
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 3,889,377 7,314,592
ORGANIZATION COST, NET OF
AMORTIZATION.............. 0 0
PREPAID EXPENSES............ 0 0
VARIATION MARGIN ON FUTURES
CONTRACTS................. 0 0
------------- -----------
TOTAL ASSETS.................. 1,004,238,513 336,021,911
------------- -----------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0
PAYABLE FOR SECURITY
LOANED.................... 0 0
DIVIDENDS PAYABLE........... 0 3,510
PAYABLE FOR FUND SHARES
REDEEMED.................. 6,640,096 195,882
UNREALIZED LOSS ON FOREIGN
CURRENCY FORWARD
CONTRACTS................. 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 78,156 36,261
PAYABLE TO OTHER RELATED
PARTIES................... 20,024 28,089
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 98,409 51,063
------------- -----------
TOTAL LIABILITIES............. 6,836,685 314,805
------------- -----------
TOTAL NET ASSETS.............. $ 997,401,828 $335,707,106
------------- -----------
NET ASSETS CONSIST OF:
----------------------------------------------------------------
PAID-IN CAPITAL............. $ 461,053,108 $233,463,078
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. 4,546,212 (453,747)
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 17,638,774 60,113,028
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS AND
LIABILITIES IN FOREIGN
CURRENCIES................ 514,163,734 42,584,747
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0
------------- -----------
TOTAL NET ASSETS.............. $ 997,401,828 $335,707,106
------------- -----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
----------------------------------------------------------------
NET ASSETS - CLASS A.......... N/A $ 5,842,441
SHARES OUTSTANDING -
CLASS A..................... N/A 214,329
NET ASSET VALUE PER SHARE -
CLASS A..................... N/A $ 27.26
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A (1)......... N/A $ 28.92
NET ASSETS - CLASS B.......... N/A $ 3,158,916
SHARES OUTSTANDING -
CLASS B..................... N/A 117,389
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A $ 26.91
NET ASSETS - CLASS C.......... N/A N/A
SHARES OUTSTANDING -
CLASS C..................... N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... N/A N/A
NET ASSETS - INSTITUTIONAL
CLASS....................... $ 997,401,828 $326,705,749
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 16,092,460 11,967,008
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 61.98 $ 27.30
NET ASSETS - CLASS O.......... N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A
------------- -----------
INVESTMENTS AT COST
(NOTE 10)................... $ 486,136,064 $286,122,572
------------- -----------
</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.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
82
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED)
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
INTERNATIONAL COMPANY SMALL CAP SMALL CAP SMALL CAP COMPANY
EQUITY GROWTH GROWTH OPPORTUNITIES VALUE GROWTH
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET
VALUE (SEE COST BELOW).... $189,578,906 $2,044,103,549 $439,816,659 $249,418,654 $18,081,924 $661,514,855
CASH........................ 16,578,423 0 6,479 0 0 0
CASH DENOMINATED IN FOREIGN
CURRENCIES (COST
$2,700,368)............... 2,722,010 0 0 0 0 0
COLLATERAL FOR SECURITY
LOANED.................... 0 0 116,977,402 35,415,154 0 0
RECEIVABLE FOR DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES............... 196,910 1,187 55,596 35,880 1,199 8,792
RECOVERABLE FOREIGN
WITHHOLDING TAXES......... 44,939 0 0 0 0 0
RECEIVABLE FOR INVESTMENTS
SOLD...................... 0 0 6,890,905 3,240,610 0 0
RECEIVABLE FOR FUND SHARES
ISSUED.................... 2,145,366 10,841,940 11,028,956 768,798 34,493 2,218,960
ORGANIZATION COST, NET OF
AMORTIZATION.............. 14,085 0 14,631 0 3,796 0
PREPAID EXPENSES............ 253,908 67,122 0 5,893 0 0
VARIATION MARGIN ON FUTURES
CONTRACTS................. 0 0 0 0 0 0
----------- ------------- ----------- ----------- ---------- -----------
TOTAL ASSETS.................. 211,534,547 2,055,013,798 574,790,628 288,884,989 18,121,412 663,742,607
----------- ------------- ----------- ----------- ---------- -----------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 5,158,202 0 9,493,609 8,915,068 0 0
PAYABLE FOR SECURITY
LOANED.................... 0 0 116,977,402 35,415,154 0 0
DIVIDENDS PAYABLE........... 0 0 0 0 0 0
PAYABLE FOR FUND SHARES
REDEEMED.................. 45,461 21,198,278 745,607 1,764,915 125,322 367,126
UNREALIZED LOSS ON FOREIGN
CURRENCY FORWARD
CONTRACTS................. 29 0 0 0 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 527,839 233,669 354,272 239,734 2,396 142,867
PAYABLE TO OTHER RELATED
PARTIES................... 132,019 585,823 403,752 21,695 8,733 56,511
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 58,679 244,534 514,909 41,600 29,176 155,968
----------- ------------- ----------- ----------- ---------- -----------
TOTAL LIABILITIES............. 5,922,229 22,262,304 128,489,551 46,398,166 165,627 722,472
----------- ------------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS.............. $205,612,318 $2,032,751,494 $446,301,077 $242,486,823 $17,955,785 $663,020,135
----------- ------------- ----------- ----------- ---------- -----------
NET ASSETS CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $157,623,696 $1,357,476,349 $293,503,119 $192,012,781 $15,959,138 $489,163,891
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS)............. (654,690) (5,227,658) (2,055,284) (582,056) (45,692) (1,725,603)
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS.............. 7,915,853 15,166,141 106,997,284 6,719,871 (1,783,938) 77,964,154
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS AND
LIABILITIES IN FOREIGN
CURRENCIES................ 40,727,459 665,336,662 47,855,958 44,336,227 3,826,277 97,617,693
NET UNREALIZED APPRECIATION
(DEPRECIATION) OF
FUTURES................... 0 0 0 0 0 0
----------- ------------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS.............. $205,612,318 $2,032,751,494 $446,301,077 $242,486,823 $17,955,785 $663,020,135
----------- ------------- ----------- ----------- ---------- -----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
---------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $58,279,582 $ 292,646,384 $190,311,080 $ 9,496,519 N/A N/A
SHARES OUTSTANDING -
CLASS A..................... 3,307,073 3,727,584 4,439,582 347,955 N/A N/A
NET ASSET VALUE PER SHARE -
CLASS A..................... $ 17.62 $ 78.51 $ 42.87 $ 27.29 N/A N/A
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A (1)......... $ 18.69 $ 83.30 $ 45.49 $ 28.95 N/A N/A
NET ASSETS - CLASS B.......... $64,622,330 $ 379,498,251 $95,295,463 $ 5,082,913 N/A N/A
SHARES OUTSTANDING -
CLASS B..................... 3,712,505 5,184,004 2,273,981 191,283 N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... $ 17.41 $ 73.21 $ 41.91 $ 26.57 N/A N/A
NET ASSETS - CLASS C.......... $ 2,398,455 $ 11,583,024(2) $26,798,427 N/A N/A N/A
SHARES OUTSTANDING -
CLASS C..................... 137,962 158,058(2) 639,929 N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS C..................... $ 17.38 $ 73.28(2) $ 41.88 N/A N/A N/A
NET ASSETS - INSTITUTIONAL
CLASS....................... $80,311,951(2) $1,349,023,835 $133,896,107 $227,907,391 $17,955,785 $663,020,135
SHARES OUTSTANDING -
INSTITUTIONAL CLASS......... 4,583,549(2) 18,251,011 3,068,226 8,345,338 1,780,481 17,607,401
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
INSTITUTIONAL CLASS......... $ 17.52(2) $ 73.92 $ 43.64 $ 27.31 $ 10.08 $ 37.66
NET ASSETS - CLASS O.......... N/A N/A N/A N/A N/A N/A
SHARES OUTSTANDING -
CLASS O..................... N/A N/A N/A N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS O..................... N/A N/A N/A N/A N/A N/A
----------- ------------- ----------- ----------- ---------- -----------
INVESTMENTS AT COST
(NOTE 10)................... $148,826,112 $1,378,766,887 $391,960,701 $205,082,427 $14,255,647 $563,897,162
----------- ------------- ----------- ----------- ---------- -----------
</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.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
83
<PAGE>
STOCK FUNDS
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED DIVERSIFIED
GROWTH EQUITY
<S> <C> <C>
---------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 222,144 $11,791,827(2)
INTEREST............... 22,765 1,675,936
SECURITIES LENDING
INCOME............... 9,919 245,149
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (173,945) (7,174,903)
--------- -----------
TOTAL INVESTMENT INCOME
(LOSS)................. 80,883 6,538,009
--------- -----------
EXPENSES
ADVISORY FEES.......... 0 2,807,231
ADMINISTRATION FEES.... 28,642 1,464,092
CUSTODY FEES........... 0 0
SHAREHOLDER SERVICING
FEES................. 0 223,007
PORTFOLIO ACCOUNTING
FEES................. 9,418 68,118
TRANSFER AGENT
A SHARES............. N/A 92,175
B SHARES............. N/A 135,308
C SHARES............. N/A 13,930
I SHARES............. 13,296 548,635
O SHARES............. N/A N/A
DISTRIBUTION FEES
A SHARES............. N/A 0
B SHARES............. N/A 486,665
C SHARES............. N/A 13,159
I SHARES............. 0 0
O SHARES............. N/A N/A
AMORTIZATION OF
ORGANIZATION COSTS... 723 1,424
LEGAL AND AUDIT FEES... 3,037 26,188
REGISTRATION FEES...... 11,584 78,915
DIRECTORS' FEES........ 2,305 3,810
SHAREHOLDER REPORTS.... 1,521 108,110
OTHER.................. 821 57,197
--------- -----------
TOTAL EXPENSES........... 71,347 6,127,964
--------- -----------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (21,034) (1,595,822)
NET EXPENSES........... 50,313 4,532,142
--------- -----------
NET INVESTMENT INCOME
(LOSS)................. 30,570 2,005,867
--------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
---------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 6,907,106 139,332,750
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (584,298)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 2,024,652
--------- -----------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 6,907,106 140,773,104
--------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (600,630) 244,269,844
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (1,654,752)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (579,149)
--------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ (600,630) 242,035,943
--------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 6,306,476 382,809,047
--------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $6,337,046 $384,814,914
--------- -----------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
(2) NET OF FOREIGN WITHHOLDING TAXES OF $289,475
(3) NET OF FOREIGN WITHHOLDING TAXES OF $218,552
(4) NET OF FOREIGN WITHHOLDING TAXES OF $384,132
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
84
<PAGE>
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY EQUITY EQUITY GROWTH
SMALL CAP INCOME INDEX VALUE GROWTH EQUITY
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 319,363 $17,841,631 $ 4,181,353 $1,420,272 $1,913,417 $ 2,250,470(3)
INTEREST............... 122,169 938,062 382,335 117,622 175,272 782,632
SECURITIES LENDING
INCOME............... 16,137 109,599 68,240 22,075 61,324 96,270
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (276,907) (5,949,490) 0 0 0 (3,393,805)
---------- ----------- ----------- ---------- ---------- -----------
TOTAL INVESTMENT INCOME
(LOSS)................. 180,762 12,939,802 4,631,928 1,559,969 2,150,013 (264,433)
---------- ----------- ----------- ---------- ---------- -----------
EXPENSES
ADVISORY FEES.......... 98,808 0 922,884 685,220 1,681,078 969,180
ADMINISTRATION FEES.... 52,122 1,190,861 553,731 148,179 359,946 509,944
CUSTODY FEES........... 0 0 59,418 19,022 46,629 0
SHAREHOLDER SERVICING
FEES................. 33,741 398,843 922,884 139,510 546,941 45,469
PORTFOLIO ACCOUNTING
FEES................. 27,970 48,998 65,379 41,463 46,450 33,382
TRANSFER AGENT
A SHARES............. 1,316 207,052 414,582 39,823 331,499 19,807
B SHARES............. 1,041 152,473 99,632 90,686 88,301 30,160
C SHARES............. N/A 2,031 N/A 731 N/A 1,157
I SHARES............. 26,625 483,055 N/A 2,818 5,979 186,175
O SHARES............. N/A N/A 0 N/A N/A N/A
DISTRIBUTION FEES
A SHARES............. 126 0 0 0 0 0
B SHARES............. 2,515 604,217 310,464 208,270 268,524 85,959
C SHARES............. N/A 13,162 N/A 3,354 N/A 2,862
I SHARES............. 0 0 N/A 0 0 0
O SHARES............. N/A N/A 0 N/A N/A N/A
AMORTIZATION OF
ORGANIZATION COSTS... 335 1,424 0 4,158 1,316 1,424
LEGAL AND AUDIT FEES... 4,044 11,999 35,851 13,313 29,440 14,133
REGISTRATION FEES...... 27,935 80,108 20,035 21,525 30,337 40,153
DIRECTORS' FEES........ 2,318 3,518 2,437 2,192 2,268 2,765
SHAREHOLDER REPORTS.... 2,295 59,380 68,826 34,541 49,185 49,508
OTHER.................. 6,887 48,632 21,741 8,156 33,259 21,821
---------- ----------- ----------- ---------- ---------- -----------
TOTAL EXPENSES........... 288,078 3,305,753 3,497,864 1,462,961 3,521,152 2,013,899
---------- ----------- ----------- ---------- ---------- -----------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (87,555) (477,604) (568,523) (192,344) (606,764) (441,942)
NET EXPENSES........... 200,523 2,828,149 2,929,341 1,270,617 2,914,388 1,571,957
---------- ----------- ----------- ---------- ---------- -----------
NET INVESTMENT INCOME
(LOSS)................. (19,761) 10,111,653 1,702,587 289,352 (764,375) (1,836,390)
---------- ----------- ----------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
-----------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0 29,737,925 3,014,260 84,285,700 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 0 1,032,468 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 4,689,775 42,657,592 0 0 0 88,143,421
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 (375,520)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 574,584 0 0 0 0 1,394,265
---------- ----------- ----------- ---------- ---------- -----------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 5,264,359 42,657,592 29,737,925 3,014,260 85,318,168 89,162,166
---------- ----------- ----------- ---------- ---------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0 80,251,601 12,935,036 (1,859,861) 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 1,120,900 0 405,475 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 9,011,453 (58,826,174) 0 0 0 111,523,899
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 (1,188,947)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (231,798) 0 0 0 0 (188,842)
---------- ----------- ----------- ---------- ---------- -----------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 8,779,655 (58,826,174) 81,372,501 12,935,036 (1,454,386) 110,146,110
---------- ----------- ----------- ---------- ---------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 14,044,014 (16,168,582) 111,110,426 15,949,296 83,863,782 199,308,276
---------- ----------- ----------- ---------- ---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $14,024,253 $(6,056,929) $112,813,013 $16,238,648 $83,099,407 $197,471,886
---------- ----------- ----------- ---------- ---------- -----------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
(2) NET OF FOREIGN WITHHOLDING TAXES OF $289,475
(3) NET OF FOREIGN WITHHOLDING TAXES OF $218,552
(4) NET OF FOREIGN WITHHOLDING TAXES OF $384,132
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
85
<PAGE>
STOCK FUNDS
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDEX INTERNATIONAL
<S> <C> <C>
-----------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 5,243,707 $ 1,106,613(4)
INTEREST............... 720,754 195,529
SECURITIES LENDING
INCOME............... 129,889 25,087
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... (644,416) (1,903,912)
----------- -------------
TOTAL INVESTMENT INCOME
(LOSS)................. 5,449,934 (576,683)
----------- -------------
EXPENSES
ADVISORY FEES.......... 0 148,148
ADMINISTRATION FEES.... 616,560 226,041
CUSTODY FEES........... 0 0
SHAREHOLDER SERVICING
FEES................. 0 6,929
PORTFOLIO ACCOUNTING
FEES................. 20,332 29,888
TRANSFER AGENT
A SHARES............. N/A 7,236
B SHARES............. N/A 4,401
C SHARES............. N/A N/A
I SHARES............. 244,615 99,698
O SHARES............. N/A N/A
DISTRIBUTION FEES
A SHARES............. N/A 0
B SHARES............. N/A 9,699
C SHARES............. N/A N/A
I SHARES............. 0 0
O SHARES............. N/A N/A
AMORTIZATION OF
ORGANIZATION COSTS... 1,424 1,424
LEGAL AND AUDIT FEES... 10,818 4,122
REGISTRATION FEES...... 56,041 15,551
DIRECTORS' FEES........ 2,866 2,292
SHAREHOLDER REPORTS.... 23,547 6,779
OTHER.................. 20,204 4,373
----------- -------------
TOTAL EXPENSES........... 996,407 566,581
----------- -------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (469,980) (53,092)
NET EXPENSES........... 526,427 513,489
----------- -------------
NET INVESTMENT INCOME
(LOSS)................. 4,923,507 (1,090,172)
----------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
-----------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 20,587,185 59,765,033
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (430,360)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... (536,731) 0
----------- -------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 20,050,454 59,334,673
----------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 118,959,714 16,419,097
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 (2,770,278)
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 1,351,629 0
----------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 120,311,343 13,648,819
----------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 140,361,797 72,983,492
----------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $145,285,304 $ 71,893,320
----------- -------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
(2) NET OF FOREIGN WITHHOLDING TAXES OF $289,475
(3) NET OF FOREIGN WITHHOLDING TAXES OF $218,552
(4) NET OF FOREIGN WITHHOLDING TAXES OF $384,132
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
86
<PAGE>
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL
INTERNATIONAL COMPANY SMALL CAP SMALL CAP SMALL CAP COMPANY
EQUITY GROWTH GROWTH OPPORTUNITIES VALUE GROWTH
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 311,355 $ 2,783,606 $ 150,165 $ 360,461 $ 28,438 $ 1,141,637
INTEREST............... 243,051 1,059,531 497,375 402,202 27,950 770,043
SECURITIES LENDING
INCOME............... 0 128,952 131,806 16,762 7,405 56,892
NET EXPENSES ALLOCATED
FROM PORTFOLIOS...... 0 (6,042,122) 0 0 (63,434) (2,778,197)
------------- ------------ ------------ ------------- ---------- ------------
TOTAL INVESTMENT INCOME
(LOSS)................. 554,406 (2,070,033) 779,346 779,425 359 (809,625)
------------- ------------ ------------ ------------- ---------- ------------
EXPENSES
ADVISORY FEES.......... 599,582 0 1,386,226 955,101 0 0
ADMINISTRATION FEES.... 89,937 1,063,854 234,347 150,387 11,367 393,222
CUSTODY FEES........... 74,789 0 34,255 20,904 0 0
SHAREHOLDER SERVICING
FEES................. 149,896 598,098 333,354 93,848 6,978 244,477
PORTFOLIO ACCOUNTING
FEES................. 63,504 63,655 78,592 43,351 19,865 20,791
TRANSFER AGENT
A SHARES............. 30,727 119,575 258,541 10,969 N/A N/A
B SHARES............. 79,743 270,725 155,702 2,234 N/A N/A
C SHARES............. 2,251 3,273(1) 17,212 N/A N/A N/A
I SHARES............. 5,000(1) 396,491 25,568 77,364 6,033 186,315
O SHARES............. N/A N/A N/A N/A N/A N/A
DISTRIBUTION FEES
A SHARES............. 0 20,221 0 0 N/A N/A
B SHARES............. 190,307 1,054,110 247,816 16,674 N/A N/A
C SHARES............. 4,618 13,637(1) 70,644 N/A N/A N/A
I SHARES............. 0(1) 0 0 0 0 0
O SHARES............. N/A N/A N/A N/A N/A N/A
AMORTIZATION OF
ORGANIZATION COSTS... 10,027 1,424 5,451 0 723 1,424
LEGAL AND AUDIT FEES... 31,085 88,513 12,044 7,575 2,921 12,675
REGISTRATION FEES...... 20,055 136,587 106,975 17,405 8,469 59,635
DIRECTORS' FEES........ 2,306 2,863 2,268 2,082 2,280 2,357
SHAREHOLDER REPORTS.... 15,041 34,968 70,820 3,744 312 28,856
OTHER.................. 5,765 78,927 15,110 7,834 370 13,569
------------- ------------ ------------ ------------- ---------- ------------
TOTAL EXPENSES........... 1,374,633 3,946,921 3,054,925 1,409,472 59,318 963,321
------------- ------------ ------------ ------------- ---------- ------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (167,052) (789,296) (779,583) (47,991) (13,267) (47,343)
NET EXPENSES........... 1,207,581 3,157,625 2,275,342 1,361,481 46,051 915,978
------------- ------------ ------------ ------------- ---------- ------------
NET INVESTMENT INCOME
(LOSS)................. (653,175) (5,227,658) (1,495,996) (582,056) (45,692) (1,725,603)
------------- ------------ ------------ ------------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
-------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM:
SECURITIES............. 9,324,255 0 108,614,544 26,421,674 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... (261,967) 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 15,866,587 0 0 1,570,575 105,796,933
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 0
------------- ------------ ------------ ------------- ---------- ------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 9,062,288 15,866,587 108,614,544 26,421,674 1,570,575 105,796,933
------------- ------------ ------------ ------------- ---------- ------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF:
SECURITIES............. 26,611,470 0 14,610,087 35,973,446 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 0 0 0
FOREIGN CURRENCY
TRANSACTIONS......... 18,081 0 0 0 0 0
SECURITIES TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 498,897,491 0 0 1,472,628 91,072,116
FOREIGN CURRENCY
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS
ALLOCATED FROM
PORTFOLIOS........... 0 0 0 0 0 0
------------- ------------ ------------ ------------- ---------- ------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 26,629,551 498,897,491 14,610,087 35,973,446 1,472,628 91,072,116
------------- ------------ ------------ ------------- ---------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 35,691,839 514,764,078 123,224,631 62,395,120 3,043,203 196,869,049
------------- ------------ ------------ ------------- ---------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 35,038,664 $509,536,420 $121,728,635 $ 61,813,064 $2,997,511 $195,143,446
------------- ------------ ------------ ------------- ---------- ------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
(2) NET OF FOREIGN WITHHOLDING TAXES OF $289,475
(3) NET OF FOREIGN WITHHOLDING TAXES OF $218,552
(4) NET OF FOREIGN WITHHOLDING TAXES OF $384,132
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
87
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED GROWTH
-------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.............................. $ 49,972,894 $ 54,306,519 $ 12,324,701
OPERATIONS:
NET INVESTMENT INCOME (LOSS)...................... 30,570 (54,594) (60,021)
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS............... 6,907,106 1,517,460 (1,387,934)
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES.... (600,630) (1,428,717) 11,275,557
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 6,337,046 34,149 9,827,602
------------- ---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A....................................... N/A N/A N/A
CLASS B....................................... N/A N/A N/A
CLASS C....................................... N/A N/A N/A
CLASS I....................................... 0 0 (1,648)
CLASS O....................................... N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A....................................... N/A N/A N/A
CLASS B....................................... N/A N/A N/A
CLASS C....................................... N/A N/A N/A
CLASS I....................................... (967,962) 0 0
CLASS O....................................... N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS A............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS A............... N/A N/A N/A
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A....... N/A N/A N/A
------------- ---------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS B............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS B............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS B............... N/A N/A N/A
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B....... N/A N/A N/A
------------- ---------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS C............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS C............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS C............... N/A N/A N/A
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C....... N/A N/A N/A
------------- ---------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS I............. 1,528,923 1,884,982 44,185,119(1)
REINVESTMENT OF DIVIDENDS - CLASS I............. 173,866 0 0
COST OF SHARES REDEEMED - CLASS I............... (18,549,900) (6,252,756) (12,029,255)
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS I....... (16,847,111) (4,367,774) 32,155,864
------------- ---------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS O............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS O............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS O............... N/A N/A N/A
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS O....... N/A N/A N/A
------------- ---------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS............. (11,478,027) (4,333,625) 41,981,818
------------- ---------------- -------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------
ENDING NET ASSETS............................... $ 38,494,867 $ 49,972,894 $ 54,306,519
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A....................................... N/A N/A N/A
SHARES REDEEMED - CLASS A....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A......................................... N/A N/A N/A
SHARES SOLD - CLASS B........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B....................................... N/A N/A N/A
SHARES REDEEMED - CLASS B....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B......................................... N/A N/A N/A
SHARES SOLD - CLASS C........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS C....................................... N/A N/A N/A
SHARES REDEEMED - CLASS C....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C......................................... N/A N/A N/A
SHARES SOLD - CLASS I........................... 131,614 162,960 4,691,848(1)
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I....................................... 14,709 0 0
SHARES REDEEMED - CLASS I....................... (1,559,035) (539,891) (1,114,800)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I......................................... (1,412,712) (376,931) 3,577,048
SHARES SOLD - CLASS O........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS O....................................... N/A N/A N/A
SHARES REDEEMED - CLASS O....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS O......................................... N/A N/A N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME.......................................... $ 30,570 $ 0 $ 0
------------- ---------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY
------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 2,088,989,003 $ 1,810,607,147 $ 1,658,240,431
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. 2,005,867 2,815,526 7,263,003
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 140,773,104 48,744,179 69,434,989
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 242,035,943 (79,055,363) 155,158,955
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 384,814,914 (27,495,658) 231,856,947
--------------- ---------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (232,589) 0 (269,774)
CLASS B.............. 0 0 0
CLASS C.............. 0 0 (905)
CLASS I.............. (5,929,451) 0 (6,719,636)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (4,002,286) 0 (1,318,172)
CLASS B.............. (6,565,599) 0 (2,118,718)
CLASS C.............. (128,326) 0 (4,423)
CLASS I.............. (102,031,149) 0 (32,833,554)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 239,176,454 5,251,832 18,382,464
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 4,141,189 0 1,555,531
COST OF SHARES REDEEMED
- CLASS A............ (236,922,050) (3,983,360) (13,727,157)
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 6,395,593 1,268,472 6,210,838
--------------- ---------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 17,617,106 7,782,318 26,937,589
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 6,380,326 0 2,057,513
COST OF SHARES REDEEMED
- CLASS B............ (9,898,992) (4,039,229) (10,529,111)
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 14,098,440 3,743,089 18,465,991
--------------- ---------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 3,679,386 1,598,629 531,763
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 127,405 0 4,011
COST OF SHARES REDEEMED
- CLASS C............ (545,479) (93,687) (19,649)
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 3,261,312 1,504,942 516,125
--------------- ---------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 106,748,467 409,909,858 308,645,466
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 106,058,084 0 38,912,029
COST OF SHARES REDEEMED
- CLASS I............ (261,268,105) (110,548,847) (408,975,498)
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ (48,461,554) 299,361,011 (61,418,003)
--------------- ---------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
--------------- ---------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 241,219,305 278,381,856 152,366,716
--------------- ---------------- ---------------
NET ASSETS:
---------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 2,330,208,308 $ 2,088,989,003 $ 1,810,607,147
SHARES ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 4,741,179 105,338 413,591
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 82,248 0 35,487
SHARES REDEEMED -
CLASS A.............. (4,663,485) (80,188) (311,744)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 159,942 25,150 137,334
SHARES SOLD -
CLASS B.............. 351,469 158,234 613,385
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 128,480 0 47,366
SHARES REDEEMED -
CLASS B.............. (197,492) (82,020) (240,909)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 282,457 76,214 419,842
SHARES SOLD -
CLASS C.............. 72,335 32,736 11,575
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 2,533 0 91
SHARES REDEEMED -
CLASS C.............. (10,382) (1,850) (429)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 64,486 30,886 11,237
SHARES SOLD -
CLASS I.............. 2,096,946 8,082,334 6,936,823
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 2,106,835 0 888,401
SHARES REDEEMED -
CLASS I.............. (5,117,841) (2,217,985) (9,367,163)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ (914,060) 5,864,349 (1,541,939)
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 4,081,558 $ 8,237,731 $ 5,854,223
--------------- ---------------- ---------------
<CAPTION>
DIVERSIFIED SMALL CAP
-------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 69,286,908 $ 62,241,111 $ 12,551,165
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. (19,761) (43,240) (19,783)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 5,264,359 2,218,511 (4,092,709)
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 8,779,655 (2,252,298) 3,595,266
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 14,024,253 (77,027) (517,226)
------------- --------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 (102)
CLASS B.............. 0 0 0
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 (1,573)
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. 0 0 0
CLASS B.............. 0 0 0
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 0
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 184,051 19,737 2,942,162
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 102
COST OF SHARES REDEEMED
- CLASS A............ (741,782) (262,777) (1,656,498)
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (557,731) (243,040) 1,285,766
------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 162,990 124,041 495,965
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 0
COST OF SHARES REDEEMED
- CLASS B............ (42,016) (42,387) (46,696)
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 120,974 81,654 449,269
------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 31,119,564 13,260,671 59,524,813
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 1,066
COST OF SHARES REDEEMED
- CLASS I............ (22,546,554) (5,976,461) (11,052,067)
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ 8,573,010 7,284,210 48,473,812
------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 22,160,506 7,045,797 49,689,946
------------- --------------- -------------
NET ASSETS:
-------------------------
ENDING NET ASSETS...... $ 91,447,414 $ 69,286,908 $ 62,241,111
SHARES ISSUED AND REDEEME
SHARES SOLD -
CLASS A.............. 17,602 1,973 329,220
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 0 0 11
SHARES REDEEMED -
CLASS A.............. (71,697) (26,807) (171,238)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (54,095) (24,834) 157,993
SHARES SOLD -
CLASS B.............. 16,587 13,455 58,846
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 0 0 0
SHARES REDEEMED -
CLASS B.............. (4,111) (4,386) (5,692)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 12,476 9,069 53,154
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
SHARES SOLD -
CLASS I.............. 3,123,003 1,421,871 6,784,576
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 123
SHARES REDEEMED -
CLASS I.............. (2,256,374) (647,523) (1,277,086)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ 866,629 774,348 5,507,613
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (19,761) $ 0 $ 0
------------- --------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
89
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INCOME
------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.............................. $ 1,701,406,862 $ 1,732,495,848 $ 1,356,914,311
OPERATIONS:
NET INVESTMENT INCOME (LOSS)...................... 10,111,653 6,337,791 17,704,393
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS............... 42,657,592 37,939,911 7,349,243
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES.... (58,826,174) (119,421,858) 197,583,941
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. (6,056,929) (75,144,156) 222,637,577
--------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A....................................... (1,128,378) (560,495) (1,080,235)
CLASS B....................................... (352,081) (171,989) (454,877)
CLASS C....................................... (10,300) (3,398) (1,183)
CLASS I....................................... (8,783,581) (7,794,280) (16,436,298)
CLASS O....................................... N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A....................................... (2,648,896) 0 (532,668)
CLASS B....................................... (2,935,836) 0 (507,071)
CLASS C....................................... (55,810) 0 (66)
CLASS I....................................... (35,453,689) 0 (8,080,050)
CLASS O....................................... N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............. 142,121,159(2) 14,414,264 31,030,310
REINVESTMENT OF DIVIDENDS - CLASS A............. 3,573,321 527,543 1,790,207
COST OF SHARES REDEEMED - CLASS A............... (35,424,892) (5,536,628) (14,225,873)
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A....... 110,269,588 9,405,179 18,594,644
--------------- ---------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS B............. 74,634,324(2) 22,009,648 36,986,937
REINVESTMENT OF DIVIDENDS - CLASS B............. 3,156,958 165,143 928,800
COST OF SHARES REDEEMED - CLASS B............... (27,375,799) (4,190,970) (9,778,614)
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B....... 50,415,483 17,983,821 28,137,123
--------------- ---------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS C............. 4,021,682 1,182,833 1,073,688
REINVESTMENT OF DIVIDENDS - CLASS C............. 59,456 2,957 406
COST OF SHARES REDEEMED - CLASS C............... (977,212) (53,142) (2,757)
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C....... 3,103,926 1,132,648 1,071,337
--------------- ---------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS I............. 119,090,852 82,657,036 322,396,267(3)
REINVESTMENT OF DIVIDENDS - CLASS I............. 25,226,411 2,205,592 7,548,280
COST OF SHARES REDEEMED - CLASS I............... (201,490,048) (60,798,944) (197,711,243)
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS I....... (57,172,785) 24,063,684 132,233,304
--------------- ---------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS O............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS O............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS O............... N/A N/A N/A
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS O....... N/A N/A N/A
--------------- ---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS............. 49,190,712 (31,088,986) 375,581,537
--------------- ---------------- ---------------
NET ASSETS:
----------------------------------------------------------------------------------------------------------
ENDING NET ASSETS............................... $ 1,750,597,574 $ 1,701,406,862 $ 1,732,495,848
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A........................... 3,237,592(2) 306,313 746,028
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A....................................... 81,780 11,703 37,930
SHARES REDEEMED - CLASS A....................... (833,251) (118,467) (340,027)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A......................................... 2,486,121 199,549 443,931
SHARES SOLD - CLASS B........................... 1,709,654(2) 469,263 879,514
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B....................................... 72,062 3,688 23,066
SHARES REDEEMED - CLASS B....................... (649,012) (89,092) (235,545)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B......................................... 1,132,704 383,859 667,035
SHARES SOLD - CLASS C........................... 91,460 24,641 23,317
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS C....................................... 1,325 64 29
SHARES REDEEMED - CLASS C....................... (22,564) (1,104) (59)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C......................................... 70,221 23,601 23,287
SHARES SOLD - CLASS I........................... 2,743,981 1,755,656 6,894,900(3)
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I....................................... 575,430 48,885 1,081,099
SHARES REDEEMED - CLASS I....................... (4,744,713) (1,291,122) (4,683,126)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I......................................... (1,425,302) 513,419 3,292,873
SHARES SOLD - CLASS O........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS O....................................... N/A N/A N/A
SHARES REDEEMED - CLASS O....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS O......................................... N/A N/A N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME.......................................... $ 457,740 $ 620,427 $ 2,812,753
--------------- ---------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX EQUITY VALUE GROWTH
------------------------------------- ---------------------------------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MARCH 31, 2000 SEPTEMBER 30, 1999 MARCH 31, 2000
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 678,042,470 $ 536,277,099 $ 214,323,605 $ 284,877,531 $ 393,631,019
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. 1,702,587 4,142,194 289,352 2,021,200 (764,375)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 29,737,925 30,876,204 3,014,260 29,851,190 85,318,168
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 81,372,501 106,433,974 12,935,036 (12,549,932) (1,454,386)
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 112,813,013 141,452,372 16,238,648 19,322,458 83,099,407
------------- --------------- ------------- --------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (800,898) (4,167,469) (52,652) (347,194) 0
CLASS B.............. (3) 0 (15) (1,539,520) 0
CLASS C.............. N/A N/A 0 (135,267) N/A
CLASS I.............. N/A N/A (310,948) (2,142) 0
CLASS O.............. 0 0 N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (24,468,798) (26,108,859) (4,526,606) (3,538,387) (41,351,152)
CLASS B.............. (3,014,562) (1,095,863) (8,577,450) (13,698,449) (8,082,200)
CLASS C.............. N/A N/A (132,900) (6,065,329) N/A
CLASS I.............. N/A N/A (18,324,643) (109,507) (2,317,941)
CLASS O.............. (10) 0 N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 29,275,282 69,401,290 1,276,510 2,964,282 26,796,322(4)
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 25,103,225 31,362,005 4,291,930 3,820,382 40,730,919
COST OF SHARES REDEEMED
- CLASS A............ (78,255,077) (115,068,851) (8,432,352) (17,801,986) (51,363,589)
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (23,876,570) (14,305,556) (2,863,912) (11,017,322) 16,163,652
------------- --------------- ------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 24,321,195 49,781,286 1,579,613 5,260,255 11,321,068(4)
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 2,930,535 1,083,255 8,493,133 6,221,027 7,997,501
COST OF SHARES REDEEMED
- CLASS B............ (9,733,459) (4,874,045) (13,887,834) (24,273,622) (7,728,148)
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 17,518,271 45,990,496 (3,815,088) (12,792,340) 11,590,421
------------- --------------- ------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A 68,899 493,290 N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A 122,175 95,492 N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A (107,191) (920,285) N/A
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A 83,883 (331,503) N/A
------------- --------------- ------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... N/A N/A 4,341,382 12,846,565 123,851,297(4)
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. N/A N/A 15,073,176 12,753,772 1,401,843
COST OF SHARES REDEEMED
- CLASS I............ N/A N/A (41,819,999) (65,899,760) (93,391,155)
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ N/A N/A (22,405,441) (40,299,423) 31,861,985
------------- --------------- ------------- --------------- -------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... 0 250 N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. 8 0 N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ 0 0 N/A N/A N/A
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ 8 250 N/A N/A N/A
------------- --------------- ------------- --------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 78,170,451 141,765,371 (44,687,124) (70,553,926) 90,964,172
------------- --------------- ------------- --------------- -------------
NET ASSETS:
--------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 756,212,921 $ 678,042,470 $ 169,636,481 $ 214,323,605 $ 484,595,191
SHARES ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 352,666 891,085 99,064 189,690 1,236,943(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 298,520 436,527 339,476 252,766 1,945,125
SHARES REDEEMED -
CLASS A.............. (938,031) (1,495,986) (628,745) (1,139,567) (2,285,839)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (286,845) (168,374) (190,205) (697,111) 896,229
SHARES SOLD -
CLASS B.............. 291,788 634,985 147,926 411,338 747,497(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 34,781 15,222 820,321 503,665 542,203
SHARES REDEEMED -
CLASS B.............. (116,812) (63,325) (1,273,476) (1,904,338) (489,945)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 209,757 586,882 (305,229) (989,335) 799,755
SHARES SOLD -
CLASS C.............. N/A N/A 6,342 38,141 N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A 11,804 7,730 N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A (9,094) (72,519) N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A 9,052 (26,648) N/A
SHARES SOLD -
CLASS I.............. N/A N/A 318,249 818,239 4,975,345(4)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. N/A N/A 1,193,200 844,162 57,078
SHARES REDEEMED -
CLASS I.............. N/A N/A (3,206,090) (4,180,892) (3,584,654)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ N/A N/A (1,694,641) (2,518,491) 1,447,769
SHARES SOLD -
CLASS O.............. 0 3 N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. 0 0 N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. 0 0 N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ 0 3 N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 901,686 $ 0 $ (74,263) $ 0 $ (1,035,313)
------------- --------------- ------------- --------------- -------------
<CAPTION>
GROWTH
------------------
FOR THE
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 368,436,666
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. (199,964)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 51,072,520
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 54,639,066
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 105,511,622
---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (132,579)
CLASS B.............. 0
CLASS C.............. N/A
CLASS I.............. (19,031)
CLASS O.............. N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (47,058,207)
CLASS B.............. (7,706,288)
CLASS C.............. N/A
CLASS I.............. (2,310,431)
CLASS O.............. N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 24,458,931
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 46,699,469
COST OF SHARES REDEEMED
- CLASS A............ (101,716,364)
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (30,557,964)
---------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 10,008,441
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 7,535,252
COST OF SHARES REDEEMED
- CLASS B............ (11,472,924)
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 6,070,769
---------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A
---------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 4,328,154
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 1,358,567
COST OF SHARES REDEEMED
- CLASS I............ (4,290,259)
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ 1,396,462
---------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A
---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A
---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 25,194,353
---------------
NET ASSETS:
-------------------------
ENDING NET ASSETS...... $ 393,631,019
SHARES ISSUED AND REDEEME
SHARES SOLD -
CLASS A.............. 1,073,917
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 2,283,029
SHARES REDEEMED -
CLASS A.............. (4,470,969)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (1,114,023)
SHARES SOLD -
CLASS B.............. 617,603
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 520,123
SHARES REDEEMED -
CLASS B.............. (712,314)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 425,412
SHARES SOLD -
CLASS C.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
SHARES REDEEMED -
CLASS C.............. N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A
SHARES SOLD -
CLASS I.............. 160,901
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 56,609
SHARES REDEEMED -
CLASS I.............. (158,939)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ 58,571
SHARES SOLD -
CLASS O.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
SHARES REDEEMED -
CLASS O.............. N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (433,260)
---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
91
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH EQUITY
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.............................. $ 687,495,546 $ 956,955,739 $ 1,071,433,000
OPERATIONS:
NET INVESTMENT INCOME (LOSS)...................... (1,836,390) 68,585 (885,620)
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS............... 89,162,166 42,441,356 65,419,167
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES.... 110,146,110 (12,838,022) 4,756,363
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 197,471,886 29,671,919 69,289,910
------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A....................................... 0 0 (14,034)
CLASS B....................................... 0 0 0
CLASS C....................................... 0 0 (30)
CLASS I....................................... 0 0 (743,167)
CLASS O....................................... N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A....................................... (2,574,817) 0 (1,027,051)
CLASS B....................................... (3,092,032) 0 (1,049,213)
CLASS C....................................... (89,230) 0 (2,165)
CLASS I....................................... (95,616,301) 0 (54,387,314)
CLASS O....................................... N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............. 77,474,165 73,248,493 3,376,261
REINVESTMENT OF DIVIDENDS - CLASS A............. 2,570,732 0 1,037,693
COST OF SHARES REDEEMED - CLASS A............... (86,756,627) (67,273,692) (8,534,711)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A....... (6,711,730) 5,974,801 (4,120,757)
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS B............. 2,118,404 698,018 3,615,753
REINVESTMENT OF DIVIDENDS - CLASS B............. 3,034,802 0 1,032,313
COST OF SHARES REDEEMED - CLASS B............... (1,361,691) (764,230) (2,465,177)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B....... 3,791,515 (66,212) 2,182,889
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS C............. 893,748 303,286 54,890
REINVESTMENT OF DIVIDENDS - CLASS C............. 89,222 0 2,195
COST OF SHARES REDEEMED - CLASS C............... (288,209) (28,052) (49)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C....... 694,761 275,234 57,036
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS I............. 62,884,550 27,122,299 120,780,283
REINVESTMENT OF DIVIDENDS - CLASS I............. 95,133,622 0 55,000,456
COST OF SHARES REDEEMED - CLASS I............... (83,616,543) (332,438,234) (300,444,104)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS I....... 74,401,629 (305,315,935) (124,663,365)
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS O............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS O............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS O............... N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS O....... N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS............. 168,275,681 (269,460,193) (114,477,261)
------------- --------------- ---------------
NET ASSETS:
-------------------------------------------------------------------------------------------------------
ENDING NET ASSETS............................... $ 855,771,227 $ 687,495,546 $ 956,955,739
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A........................... 2,000,723 1,951,289 96,167
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A....................................... 70,450 0 31,004
SHARES REDEEMED - CLASS A....................... (2,215,843) (1,785,546) (251,667)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A......................................... (144,670) 165,743 (124,496)
SHARES SOLD - CLASS B........................... 56,528 19,110 106,848
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B....................................... 85,705 0 31,425
SHARES REDEEMED - CLASS B....................... (35,915) (20,669) (73,787)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B......................................... 106,318 (1,559) 64,486
SHARES SOLD - CLASS C........................... 23,115 7,771 1,587
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS C....................................... 2,448 0 65
SHARES REDEEMED - CLASS C....................... (7,140) (734) (1)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C......................................... 18,423 7,037 1,651
SHARES SOLD - CLASS I........................... 1,617,680 720,339 3,479,533
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I....................................... 2,606,401 0 1,643,276
SHARES REDEEMED - CLASS I....................... (2,155,331) (8,674,078) (8,597,077)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I......................................... 2,068,750 (7,953,739) (3,474,268)
SHARES SOLD - CLASS O........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS O....................................... N/A N/A N/A
SHARES REDEEMED - CLASS O....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS O......................................... N/A N/A N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME.......................................... $ (2,198,997) $ (362,607) $ (159,002)
------------- --------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
92
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDEX INTERNATIONAL
----------------------------------------------------- -------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE FOR THE SIX FOR THE FOUR
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED MONTHS ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 MARCH 31, 2000 SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 813,861,358 $ 1,154,289,145 $ 784,205,413 $ 279,133,783 $ 276,079,108
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. 4,923,507 3,615,364 11,996,814 (1,090,172) 843,930
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 20,050,454 8,002,770 11,843,739 59,334,673 11,341,632
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 120,311,343 (1,124,074) 152,331,751 13,648,819 (748,412)
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 145,285,304 10,494,060 176,172,304 71,893,320 11,437,150
------------- ---------------- --------------- ------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A 0 0
CLASS B.............. N/A N/A N/A 0 0
CLASS C.............. N/A N/A N/A N/A N/A
CLASS I.............. (3,992,551) (7,598,355) (9,565,947) 0 0
CLASS O.............. N/A N/A N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A (339,005) 0
CLASS B.............. N/A N/A N/A (214,671) 0
CLASS C.............. N/A N/A N/A N/A N/A
CLASS I.............. (10,707,183) (5,815,851) (8,472,998) (27,284,142) 0
CLASS O.............. N/A N/A N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A 22,536,391 316,554
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 338,850 0
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A (20,463,851) (583,425)
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A 2,411,390 (266,871)
------------- ---------------- --------------- ------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A 854,285 182,679
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 210,493 0
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A (180,290) (280,747)
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A 884,488 (98,068)
------------- ---------------- --------------- ------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A N/A N/A
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A N/A N/A
------------- ---------------- --------------- ------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 194,375,952 92,744,713 420,043,740 64,784,598 16,178,616
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 12,280,133 12,024,701 16,802,405 21,473,616 0
COST OF SHARES REDEEMED
- CLASS I............ (153,701,185) (442,277,055) (224,895,772) (77,036,271) (24,196,152)
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ 52,954,900 (337,507,641) 211,950,373 9,221,943 (8,017,536)
------------- ---------------- --------------- ------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A N/A N/A
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A N/A N/A
------------- ---------------- --------------- ------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 183,540,470 (340,427,787) 370,083,732 56,573,323 3,054,675
------------- ---------------- --------------- ------------- ---------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 997,401,828 $ 813,861,358 $ 1,154,289,145 $ 335,707,106 $ 279,133,783
SHARES ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A 845,112 13,424
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A 13,441 0
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A (759,094) (24,360)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A 99,459 (10,936)
SHARES SOLD -
CLASS B.............. N/A N/A N/A 32,714 7,788
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A 8,439 0
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A (7,059) (11,596)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A 34,094 (3,808)
SHARES SOLD -
CLASS C.............. N/A N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A N/A N/A
SHARES SOLD -
CLASS I.............. 3,346,093 1,654,171 8,282,644 2,467,835 679,900
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 207,645 216,426 337,195 850,777 0
SHARES REDEEMED -
CLASS I.............. (2,624,513) (7,757,609) (4,484,432) (2,911,097) (1,019,113)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ 929,225 (5,887,012) 4,135,407 407,515 (339,213)
SHARES SOLD -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 4,546,212 $ 3,615,256 $ 7,598,247 $ (453,747) $ 636,425
------------- ---------------- --------------- ------------- ---------------
<CAPTION>
INTERNATIONAL
----------------
FOR THE
YEAR ENDED
MAY 31, 1999
<S> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 285,253,931
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. 1,173,546
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 19,971,609
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... (25,695,183)
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ (4,550,028)
-------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. (28,212)
CLASS B.............. 0
CLASS C.............. N/A
CLASS I.............. (2,016,250)
CLASS O.............. N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (77,857)
CLASS B.............. (43,845)
CLASS C.............. N/A
CLASS I.............. (5,871,186)
CLASS O.............. N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 1,205,713
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 105,370
COST OF SHARES REDEEMED
- CLASS A............ (1,683,986)
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ (372,903)
-------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 177,716
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 43,448
COST OF SHARES REDEEMED
- CLASS B............ (384,535)
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ (163,371)
-------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A
-------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 62,195,018(5)
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 6,065,939
COST OF SHARES REDEEMED
- CLASS I............ (64,312,128)
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ 3,948,829
-------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A
-------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A
-------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (9,174,823)
-------------
NET ASSETS:
-------------------------
ENDING NET ASSETS...... $ 276,079,108
SHARES ISSUED AND REDEEME
SHARES SOLD -
CLASS A.............. 56,943
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 3,714
SHARES REDEEMED -
CLASS A.............. (75,036)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ (14,379)
SHARES SOLD -
CLASS B.............. 8,712
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 1,275
SHARES REDEEMED -
CLASS B.............. (17,633)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ (7,646)
SHARES SOLD -
CLASS C.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A
SHARES REDEEMED -
CLASS C.............. N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A
SHARES SOLD -
CLASS I.............. 2,843,353(5)
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 204,563
SHARES REDEEMED -
CLASS I.............. (2,873,704)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ 174,212
SHARES SOLD -
CLASS O.............. N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A
SHARES REDEEMED -
CLASS O.............. N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ 124,058
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
93
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
-------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
<S> <C> <C>
-----------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.............................. $ 74,363,026 $ 54,209,347
OPERATIONS:
NET INVESTMENT INCOME (LOSS)...................... (653,175) (340,209)
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS............... 9,062,288 1,389,052
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES.... 26,629,551 17,289,884
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 35,038,664 18,338,727
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A....................................... (397,293) 0
CLASS B....................................... (207,296) 0
CLASS C....................................... (5,214) 0
CLASS I....................................... (49,026)(6) N/A
CLASS O....................................... N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A....................................... (248,493) 0
CLASS B....................................... (251,366) 0
CLASS C....................................... (4,403) 0
CLASS I....................................... (28,631)(6) N/A
CLASS O....................................... N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............. 19,778,876 13,225,267
REINVESTMENT OF DIVIDENDS - CLASS A............. 447,162 0
COST OF SHARES REDEEMED - CLASS A............... (12,738,632) (9,375,889)
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A....... 7,487,406 3,849,378
------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B............. 12,869,732 4,426,553
REINVESTMENT OF DIVIDENDS - CLASS B............. 443,992 0
COST OF SHARES REDEEMED - CLASS B............... (2,161,599) (6,742,516)
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B....... 11,152,125 (2,315,963)
------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C............. 1,662,153 494,318
REINVESTMENT OF DIVIDENDS - CLASS C............. 8,916 0
COST OF SHARES REDEEMED - CLASS C............... (266,317) (212,781)
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C....... 1,404,752 281,537
------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS I............. 78,417,709(6) N/A
REINVESTMENT OF DIVIDENDS - CLASS I............. 47,829(6) N/A
COST OF SHARES REDEEMED - CLASS I............... (1,107,471)(6) N/A
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS I....... 77,358,067(6) N/A
------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS O............. N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS O............. N/A N/A
COST OF SHARES REDEEMED - CLASS O............... N/A N/A
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS O....... N/A N/A
------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS............. 131,249,292 20,153,679
------------- --------------
NET ASSETS:
-----------------------------------------------------------------------------------------
ENDING NET ASSETS............................... $ 205,612,318 $ 74,363,026
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A........................... 1,240,367 1,079,764
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A....................................... 28,301 0
SHARES REDEEMED - CLASS A....................... (778,244) (811,023)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A......................................... 490,424 268,741
SHARES SOLD - CLASS B........................... 796,377 386,395
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B....................................... 28,388 0
SHARES REDEEMED - CLASS B....................... (136,061) (594,655)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B......................................... 688,704 (208,260)
SHARES SOLD - CLASS C........................... 100,822 40,508
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS C....................................... 571 0
SHARES REDEEMED - CLASS C....................... (17,105) (18,733)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C......................................... 84,288 21,775
SHARES SOLD - CLASS I........................... 4,647,342(6) N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I....................................... 3,047(6) N/A
SHARES REDEEMED - CLASS I....................... (66,840)(6) N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I......................................... 4,583,549(6) N/A
SHARES SOLD - CLASS O........................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS O....................................... N/A N/A
SHARES REDEEMED - CLASS O....................... N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS O......................................... N/A N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME.......................................... $ (654,690) $ (432,626)
------------- --------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
94
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE COMPANY GROWTH SMALL CAP GROWTH
-------------------------------------------------------- -----------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 MARCH 31, 2000 SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 1,192,183,731 $ 993,488,882 $ 232,499,225 $ 59,113,644 $ 81,834,324
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. (5,227,658) (2,090,597) (3,030,143) (1,495,996) (573,422)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 15,866,587 3,410,766 38,470,599 108,614,544 10,238,590
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 498,897,491 (21,396,941) 110,679,616 14,610,087 26,628,803
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 509,536,420 (20,076,772) 146,120,072 121,728,635 36,293,971
--------------- ---------------- ------------- --------------- -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. 0 0 0 0 0
CLASS B.............. 0 0 0 0 0
CLASS C.............. 0(6) 0 0 0 0
CLASS I.............. 0 0 0 0 0
CLASS O.............. N/A N/A N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. (5,218,477) 0 (82,577) (1,617,411) (859,083)
CLASS B.............. (6,525,128) 0 (70,277) (1,864,340) (1,058,347)
CLASS C.............. (42,228)(6) 0 0 (161,064) (111,106)
CLASS I.............. (24,942,890) 0 (8,107,762) (2,224,444) (5,153,962)
CLASS O.............. N/A N/A N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... 134,645,331 63,888,122 263,443,496(7) 299,700,487(8) 24,654,196
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 5,050,747 0 82,347 1,418,980 813,764
COST OF SHARES REDEEMED
- CLASS A............ (107,534,738) (65,324,773) (91,794,834) (187,406,708) (24,675,057)
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ 32,161,340 (1,436,651) 171,731,009 113,712,759 792,903
--------------- ---------------- ------------- --------------- -----------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... 107,560,125 51,266,495 158,195,013 56,815,673(8) 2,924,447
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 6,363,343 0 65,108 1,836,723 1,049,459
COST OF SHARES REDEEMED
- CLASS B............ (18,310,184) (4,397,701) (2,426,417) (6,184,932) (4,321,073)
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ 95,613,284 46,868,794 155,833,704 52,467,464 (347,167)
--------------- ---------------- ------------- --------------- -----------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... 10,808,634(6) N/A N/A 20,691,240(8) 310,420
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 39,337(6) N/A N/A 69,465 58,548
COST OF SHARES REDEEMED
- CLASS C............ (370,887)(6) N/A N/A (2,712,257) (639,257)
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ 10,477,084(6) N/A N/A 18,048,448 (270,289)
--------------- ---------------- ------------- --------------- -----------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 343,374,025 263,385,563 408,193,236 113,853,046(8) 28,796,899
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 20,014,276 0 6,949,708 1,828,563 4,663,904
COST OF SHARES REDEEMED
- CLASS I............ (133,879,943) (90,046,085) (119,577,456) (28,584,223) (85,468,403)(9)
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ 229,508,358 173,339,478 295,565,488 87,097,386 (52,007,600)
--------------- ---------------- ------------- --------------- -----------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A N/A N/A
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A N/A N/A
--------------- ---------------- ------------- --------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 840,567,763 198,694,849 760,989,657 387,187,433 (22,720,680)
--------------- ---------------- ------------- --------------- -----------------
NET ASSETS:
---------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 2,032,751,494 $ 1,192,183,731 $ 993,488,882 $ 446,301,077 $ 59,113,644
SHARES ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. 1,991,707 1,063,136 5,058,714(7) 8,368,579(8) 1,056,895
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. 74,329 0 1,664 51,171 45,871
SHARES REDEEMED -
CLASS A.............. (1,597,243) (1,096,599) (1,768,124) (4,615,457) (1,077,599)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ 468,793 (33,463) 3,292,254 3,804,293 25,167
SHARES SOLD -
CLASS B.............. 1,661,713 908,414 2,919,636 1,636,298(8) 141,608
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. 100,265 0 1,398 67,576 60,003
SHARES REDEEMED -
CLASS B.............. (286,857) (77,709) (42,856) (157,518) (215,165)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ 1,475,121 830,705 2,878,178 1,546,356 (13,554)
SHARES SOLD -
CLASS C.............. 162,871(6) N/A N/A 640,350(8) 14,378
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. 619(6) N/A N/A 2,557 3,349
SHARES REDEEMED -
CLASS C.............. (5,432)(6) N/A N/A (69,517) (32,061)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ 158,058(6) N/A N/A 573,390 (14,334)
SHARES SOLD -
CLASS I.............. 5,282,223 4,510,202 8,208,824 2,823,470(8) 1,043,798
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 313,017 0 149,263 64,843 260,262
SHARES REDEEMED -
CLASS I.............. (2,031,606) (1,628,433) (2,373,039) (646,308) (3,609,504)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ 3,563,634 2,881,769 5,985,048 2,242,005 (2,305,444)
SHARES SOLD -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (5,227,658) $ 0 $ 0 $ (2,055,284) $ (559,288)
--------------- ---------------- ------------- --------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
95
<PAGE>
STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP OPPORTUNITIES
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.............................. $ 207,004,973 $ 210,700,901 $ 297,836,904
OPERATIONS:
NET INVESTMENT INCOME (LOSS)...................... (582,056) (327,056) (1,176,436)
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS............... 26,421,674 11,287,621 (30,744,151)
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS AND TRANSLATION OF
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES.... 35,973,446 (10,960,300) (11,334,217)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................. 61,813,064 265 (43,254,804)
------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A....................................... 0 0 0
CLASS B....................................... 0 0 0
CLASS C....................................... N/A N/A N/A
CLASS I....................................... 0 0 0
CLASS O....................................... N/A N/A N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
CLASS A....................................... 0 0 (7,474)
CLASS B....................................... 0 0 (5,893)
CLASS C....................................... N/A N/A N/A
CLASS I....................................... 0 0 (280,588)
CLASS O....................................... N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A............. 1,419,608 3,716,775 1,872,644
REINVESTMENT OF DIVIDENDS - CLASS A............. 0 0 7,338
COST OF SHARES REDEEMED - CLASS A............... (1,931,546) (778,073) (3,174,125)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A....... (511,938) 2,938,702 (1,294,143)
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS B............. 406,532 234,702 632,224
REINVESTMENT OF DIVIDENDS - CLASS B............. 0 0 5,838
COST OF SHARES REDEEMED - CLASS B............... (692,041) (323,342) (1,651,678)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B....... (285,509) (88,640) (1,013,616)
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS C............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS C............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS C............... N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C....... N/A N/A N/A
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS I............. 33,243,491 16,392,921 70,541,322
REINVESTMENT OF DIVIDENDS - CLASS I............. 0 0 223,800
COST OF SHARES REDEEMED - CLASS I............... (58,777,258) (22,939,176) (112,044,607)
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS I....... (25,533,767) (6,546,255) (41,279,485)
------------- --------------- ---------------
PROCEEDS FROM SHARES SOLD - CLASS O............. N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS O............. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS O............... N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS O....... N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS............. 35,481,850 (3,695,928) (87,136,003)
------------- --------------- ---------------
NET ASSETS:
-------------------------------------------------------------------------------------------------------
ENDING NET ASSETS............................... $ 242,486,823 $ 207,004,973 $ 210,700,901
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A........................... 62,030 180,428 96,329
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A....................................... 0 0 382
SHARES REDEEMED - CLASS A....................... (86,410) (37,207) (158,680)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A......................................... (24,380) 143,221 (61,969)
SHARES SOLD - CLASS B........................... 18,078 11,415 32,183
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B....................................... 0 0 309
SHARES REDEEMED - CLASS B....................... (30,904) (15,706) (87,408)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B......................................... (12,826) (4,291) (54,916)
SHARES SOLD - CLASS C........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS C....................................... N/A N/A N/A
SHARES REDEEMED - CLASS C....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C......................................... N/A N/A N/A
SHARES SOLD - CLASS I........................... 1,382,542 775,434 3,460,168
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I....................................... 0 0 11,650
SHARES REDEEMED - CLASS I....................... (2,562,614) (1,090,956) (5,697,246)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I......................................... (1,180,072) (315,522) (2,225,428)
SHARES SOLD - CLASS O........................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS O....................................... N/A N/A N/A
SHARES REDEEMED - CLASS O....................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS O......................................... N/A N/A N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME.......................................... $ (582,056) $ 0 $ 0
------------- --------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
96
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP VALUE
-----------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS..... $ 17,404,425 $ 16,790,716 $ 6,422,256
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. (45,692) (35,223) (55,622)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 1,570,575 665,890 (4,020,164)
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 1,472,628 361,215 1,990,551
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 2,997,511 991,882 (2,085,235)
------------- --------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 0
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 (12,763)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A
------------- --------------- ------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A
------------- --------------- ------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------- --------------- ------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 918,654 485,799 16,716,253
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 0
COST OF SHARES REDEEMED
- CLASS I............ (3,364,805) (863,972) (4,249,795)
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ (2,446,151) (378,173) 12,466,458
------------- --------------- ------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------- --------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 551,360 613,709 10,368,460
------------- --------------- ------------
NET ASSETS:
--------------------------------------------------------------------------------
ENDING NET ASSETS...... $ 17,955,785 $ 17,404,425 $ 16,790,716
SHARES ISSUED AND REDEEMED:
SHARES SOLD -
CLASS A.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A
SHARES SOLD -
CLASS B.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
SHARES SOLD -
CLASS I.............. 99,739 57,397 1,952,490
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 0
SHARES REDEEMED -
CLASS I.............. (363,280) (101,674) (496,519)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ (263,541) (44,277) 1,455,971
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (45,692) $ 0 $ 0
------------- --------------- ------------
<CAPTION>
SMALL COMPANY GROWTH
-------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------
INCREASE (DECREASE) IN NE
BEGINNING NET ASSETS..... $ 515,292,247 $ 557,515,780 $ 748,269,389
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)................. (1,725,603) (958,201) (3,053,396)
NET REALIZED GAIN (LOSS)
ON SALE OF INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS........... 105,796,933 44,116,954 (72,079,150)
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS AND
TRANSLATION OF ASSETS
AND LIABILITIES IN
FOREIGN CURRENCIES..... 91,072,116 (50,976,516) (11,124,316)
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 195,143,446 (7,817,763) (86,256,862)
------------- --------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 0
CLASS O.............. N/A N/A N/A
NET REALIZED GAIN ON
SALE OF INVESTMENTS
CLASS A.............. N/A N/A N/A
CLASS B.............. N/A N/A N/A
CLASS C.............. N/A N/A N/A
CLASS I.............. 0 0 (49,666,455)
CLASS O.............. N/A N/A N/A
CAPITAL SHARE
TRANSACTIONS:
PROCEEDS FROM SHARES
SOLD - CLASS A....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS A............ N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS A................ N/A N/A N/A
------------- --------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS B....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS B............ N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS B................ N/A N/A N/A
------------- --------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS C....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS C............ N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS C................ N/A N/A N/A
------------- --------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS I....... 64,012,661 15,065,692 74,387,405
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 48,333,313
COST OF SHARES REDEEMED
- CLASS I............ (111,428,219) (49,471,462) (177,551,010)
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS I................ (47,415,558) (34,405,770) (54,830,292)
------------- --------------- ---------------
PROCEEDS FROM SHARES
SOLD - CLASS O....... N/A N/A N/A
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
COST OF SHARES REDEEMED
- CLASS O............ N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS -
CLASS O................ N/A N/A N/A
------------- --------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 147,727,888 (42,223,533) (190,753,609)
------------- --------------- ---------------
NET ASSETS:
-------------------------
ENDING NET ASSETS...... $ 663,020,135 $ 515,292,247 $ 557,515,780
SHARES ISSUED AND REDEEME
SHARES SOLD -
CLASS A.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS A.............. N/A N/A N/A
SHARES REDEEMED -
CLASS A.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS A................ N/A N/A N/A
SHARES SOLD -
CLASS B.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS B.............. N/A N/A N/A
SHARES REDEEMED -
CLASS B.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS B................ N/A N/A N/A
SHARES SOLD -
CLASS C.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS C.............. N/A N/A N/A
SHARES REDEEMED -
CLASS C.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS C................ N/A N/A N/A
SHARES SOLD -
CLASS I.............. 1,896,654 527,999 2,679,836
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS I.............. 0 0 1,910,408
SHARES REDEEMED -
CLASS I.............. (3,354,812) (1,779,620) (6,481,259)
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS I................ (1,458,158) (1,251,621) (1,891,015)
SHARES SOLD -
CLASS O.............. N/A N/A N/A
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS -
CLASS O.............. N/A N/A N/A
SHARES REDEEMED -
CLASS O.............. N/A N/A N/A
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING -
CLASS O................ N/A N/A N/A
ENDING BALANCE OF
UNDISTRIBUTED NET
INVESTMENT INCOME...... $ (1,725,603) $ 0 $ 0
------------- --------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
97
<PAGE>
STOCK FUNDS NOTES TO STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
(1) "Proceeds from shares sold" includes $22,258,550 and "Shares sold"
includes 2,579,206 as a result of the consolidation of the Founders Trust
Equity Fund on October 9, 1998.
(2) "Proceeds from shares sold" includes $125,869,259 for Class A shares, and
"Shares sold" includes 2,860,665 for Class A shares as a result of the
consolidation of the Stagecoach Diversified Equity Income Fund into the
Fund. "Proceeds from shares sold" includes $48,432,762 for Class B shares,
and "Shares sold" includes 1,102,248 for Class B shares as a result of the
consolidation of the Stagecoach Diversified Equity Income Fund into the
Fund.
(3) "Proceeds from shares sold" includes $30,884,547, and "Shares sold"
includes 833,816 as a result of the consolidation of the VB&T Income
Equity Fund on October 10, 1998.
(4) "Proceeds from shares sold" includes $15,308,519 for Class A shares, and
"Shares sold" includes 724,149 for Class A shares as a result of the
consolidation of the Norwest Advantage ValuGrowth Stock Fund into the
Fund. "Proceeds from shares sold" includes $7,495,609 for Class B shares,
and "Shares sold" includes 503,399 for Class B shares as a result of the
consolidation of the Norwest Advantage ValuGrowth Stock Fund into the
Fund. "Proceeds from shares sold" includes $116,058,882 for Institutional
Class shares, and "Shares sold" includes 4,679,793 for Institutional
Class shares as a result of the consolidation of the Norwest Advantage
ValuGrowth Stock Fund into the Fund.
(5) "Proceeds from shares sold" includes $1,767,537,and "Shares sold" includes
91,630 as a result of the consolidation of the Founders Trust
International Fund on October 10, 1998.
(6) This class of shares commenced operations on November 8, 1999.
(7) "Proceeds from shares sold" includes $169,603,833, and "Shares sold"
includes 3,418,054 as a result of the consolidation of the Fort Worth
Stock Fund on October 10, 1998.
(8) "Proceeds from shares sold" includes $4,273,417 for Class A shares, and
"Shares sold" includes 144,763 for Class A shares as a result of the
consolidation of the Norwest Advantage Small Company Stock Fund into the
Fund. "Proceeds from shares sold" includes $105,513,393 for Class A
shares, and "Shares sold" includes 3,574,302 for Class A shares as a
result of the consolidation of the Stagecoach Strategic Growth Fund into
the Fund. "Proceeds from shares sold" includes $3,012,247 for Class B
shares, and "Shares sold" includes 104,122 for Class B shares as a result
of the consolidation of the Norwest Advantage Small Company Stock Fund
into the Fund. "Proceeds from shares sold" includes $24,186,574 for
Class B shares, and "Shares sold" includes 836,038 for Class B shares as a
result of the consolidation of the Stagecoach Strategic Growth Fund into
the Fund. "Proceeds from shares sold" includes $14,373,924 for Class C
shares, and "Shares sold" includes 497,024 for Class C shares as a result
of the consolidation of the Stagecoach Strategic Growth Fund into the
Fund. "Proceeds from shares sold" includes $20,130,677 for Institutional
Class shares, and "Shares sold" includes 670,576 for Institutional
Class shares as a result of the consolidation of the Norwest Advantage
Small Company Stock Fund into the Fund.
(9) "Cost of shares redeemed" includes $777,027 for Institutional
Class shares as a result of the conversion of part of the Institutional
Class shares into a collective fund.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
98
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
99
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
DISCIPLINED GROWTH
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 11.41 0.01 1.80 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 11.41 (0.01) 0.01 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 10.44 (0.01) 0.98 0.00
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... $ 10.00 0.01 0.44 (0.01)
DIVERSIFIED EQUITY
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 48.01 0.06 8.82 (0.15)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 48.25 0.07 (0.31) 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 43.06 0.08 6.29 (0.20)
JUNE 1, 1997 TO MAY 31, 1998................. $ 36.51 0.16 8.99 (0.27)
JUNE 1, 1996 TO MAY 31, 1997................. $ 30.56 0.20 6.10 (0.16)
MAY 2, 1996 (4) TO MAY 31, 1996.............. $ 29.89 0.02 0.65 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 47.33 (0.10) 8.66 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 47.69 (0.04) (0.32) 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 42.69 (0.11) 6.09 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 36.31 (0.06) 8.85 (0.08)
JUNE 1, 1996 TO MAY 31, 1997................. $ 30.54 0.03 6.00 (0.07)
MAY 6, 1996 (4) TO MAY 31, 1996.............. $ 29.41 0.02 1.11 0.00
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 47.90 (0.03) 8.70 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 48.26 0.08 (0.44) 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 38.71 0.08 10.65 (0.20)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 48.00 0.07 8.81 (0.15)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 48.25 0.04 (0.29) 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 43.06 0.22 6.15 (0.20)
JUNE 1, 1997 TO MAY 31, 1998................. $ 36.50 0.22 8.94 (0.27)
JUNE 1, 1996 TO MAY 31, 1997................. $ 30.55 0.25 6.05 (0.16)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 27.53 0.16 4.25 (0.42)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 22.21 0.22 5.10 0.00
DIVERSIFIED SMALL CAP
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 9.54 0.00 1.83 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 9.52 (0.01) 0.03 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 7.77 (0.02) 1.77 0.00(9)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 8.96 (0.05) 1.72 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 8.96 (0.03) 0.03 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 7.97 (0.03) 1.02 0.00
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 9.02 0.00 1.74 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 8.99 (0.01) 0.04 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 10.52 0.00 (1.53) 0.00(9)
DECEMBER 31, 1997 (4) TO MAY 31, 1998........ $ 10.00 0.00 0.52 0.00
EQUITY INCOME
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 44.20 0.23 (0.20) (0.22)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 46.36 0.17 (2.09) (0.24)
JUNE 1, 1998 TO MAY 31, 1999................. $ 41.19 0.51 5.45 (0.53)
JUNE 1, 1997 TO MAY 31, 1998................. $ 33.16 0.52 8.77 (0.54)
JUNE 1, 1996 TO MAY 31, 1997................. $ 27.56 0.57 5.54 (0.51)
MAY 2, 1996 (4) TO MAY 31, 1996.............. $ 26.94 0.07 0.55 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 44.17 0.06 (0.19) (0.09)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 46.27 0.05 (2.08) (0.07)
JUNE 1, 1998 TO MAY 31, 1999................. $ 41.12 0.19 5.45 (0.23)
JUNE 1, 1997 TO MAY 31, 1998................. $ 33.09 0.24 8.75 (0.24)
JUNE 1, 1996 TO MAY 31, 1997................. $ 27.54 0.36 5.52 (0.33)
MAY 2, 1996 (4) TO MAY 31, 1996.............. $ 26.94 0.02 0.58 0.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
100
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
DISCIPLINED GROWTH
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.25) $ 12.97 (0.65)%(5) 1.01%(5) 1.11%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 11.41 (0.30)%(5) 1.23%(5) 1.43%(5)
JUNE 1, 1998 TO MAY 31, 1999................. 0.00 $ 11.41 (0.14)%(5) 1.25%(5) 1.45%(5)
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... 0.00 $ 10.44 0.14%(5) 1.25%(5) 2.44%(5)
DIVERSIFIED EQUITY
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.67) $ 54.07 (0.42)%(5) 1.01%(5) 1.49%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 48.01 0.45%(5) 1.00%(5) 1.20%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.98) $ 48.25 0.47%(5) 1.00%(5) 1.22%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (2.33) $ 43.06 0.60%(5) 1.00%(5) 1.20%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.19) $ 36.51 0.81%(5) 1.02%(5) 1.40%(5)
MAY 2, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 30.56 1.88%(5) 1.52%(5) 4.06%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.67) $ 53.22 (1.17)%(5) 1.77%(5) 2.29%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 47.33 (0.30)%(5) 1.75%(5) 2.20%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.98) $ 47.69 (0.28)%(5) 1.75%(5) 2.22%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (2.33) $ 42.69 (0.15)%(5) 1.75%(5) 2.19%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.19) $ 36.31 0.09%(5) 1.76%(5) 2.41%(5)
MAY 6, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 30.54 1.24%(5) 2.37%(5) 4.95%(5)
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.67) $ 53.90 (1.15)%(5) 1.77%(5) 2.94%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 47.90 (0.28)%(5) 1.75%(5) 2.63%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... (0.98) $ 48.26 (0.28)%(5) 1.75%(5) 5.15%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.67) $ 54.06 (0.42)%(5) 1.01%(5) 1.11%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 48.00 0.44%(5) 1.00%(5) 1.18%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.98) $ 48.25 0.47%(5) 1.00%(5) 1.17%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (2.33) $ 43.06 0.60%(5) 1.00%(5) 1.13%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.19) $ 36.50 0.79%(5) 1.02%(5) 1.31%(5)
NOVEMBER 1, 1995 TO MAY 31, 1996............. (0.97) $ 30.55 1.00%(5) 1.06%(5) 1.30%(5)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 27.53 1.01%(5) 1.09%(5) 1.37%(5)
DIVERSIFIED SMALL CAP
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 11.37 (0.98)%(5) 1.41%(5) 2.02%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 9.54 (0.28)%(5) 1.40%(5) 2.56%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 0.00 $ 9.52 (0.22)%(5) 1.40%(5) 2.30%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 10.63 (1.71)%(5) 2.17%(5) 3.02%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 8.96 (1.14)%(5) 2.15%(5) 4.21%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 0.00 $ 8.96 (0.84)%(5) 1.99%(5) 5.63%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 10.76 (0.75)%(5) 1.21%(5) 1.43%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 9.02 (0.18)%(5) 1.20%(5) 1.59%(5)
JUNE 1, 1998 TO MAY 31, 1999................. 0.00 $ 8.99 (0.05)%(5) 1.20%(5) 1.65%(5)
DECEMBER 31, 1997 (4) TO MAY 31, 1998........ 0.00 $ 10.52 0.25%(5) 1.21%(5) 2.65%(5)
EQUITY INCOME
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.06) $ 42.95 0.49%(5) 1.07%(5) 1.26%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 44.20 1.12%(5) 0.85%(5) 0.90%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.26) $ 46.36 1.23%(5) 0.85%(5) 0.93%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.72) $ 41.19 1.44%(5) 0.85%(5) 0.91%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 33.16 1.95% 0.85% 0.93%
MAY 2, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 27.56 3.69% 0.91% 1.91%
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.06) $ 42.89 (0.34)%(5) 1.82%(5) 2.03%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 44.17 0.37%(5) 1.60%(5) 1.90%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.26) $ 46.27 0.48%(5) 1.60%(5) 1.94%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.72) $ 41.12 0.69%(5) 1.60%(5) 1.91%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 33.09 1.24% 1.59% 1.96%
MAY 2, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 27.54 2.92% 1.72% 2.63%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
---------------------------------------------
DISCIPLINED GROWTH
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 16.07% 60%(6) $ 38,495
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00% 21%(6) $ 49,973
JUNE 1, 1998 TO MAY 31, 1999................. 9.29% 90%(6) $ 54,307
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... 4.50% 68%(6)(7) $ 12,325
DIVERSIFIED EQUITY
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.94% 19%(8) $ 88,189
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.50)% 13%(8) $ 70,624
JUNE 1, 1998 TO MAY 31, 1999................. 15.08% 35%(8) $ 69,768
JUNE 1, 1997 TO MAY 31, 1998................. 26.08% 23%(8) $ 56,350
JUNE 1, 1996 TO MAY 31, 1997................. 20.75% 48% $ 25,271
MAY 2, 1996 (4) TO MAY 31, 1996.............. 2.24% 6% $ 2,699
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.48% 19%(8) $ 143,075
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.75)% 13%(8) $ 113,874
JUNE 1, 1998 TO MAY 31, 1999................. 14.24% 35%(8) $ 111,106
JUNE 1, 1997 TO MAY 31, 1998................. 25.13% 23%(8) $ 81,548
JUNE 1, 1996 TO MAY 31, 1997................. 19.86% 48% $ 33,870
MAY 6, 1996 (4) TO MAY 31, 1996.............. 3.84% 6% $ 2,447
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.49% 19%(8) $ 5,746
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.75)% 13%(8) $ 2,018
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 28.02% 35%(8) $ 542
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.94% 19%(8) $ 2,093,199
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.52)% 13%(8) $ 1,902,474
JUNE 1, 1998 TO MAY 31, 1999................. 15.08% 35%(8) $ 1,629,191
JUNE 1, 1997 TO MAY 31, 1998................. 26.12% 23%(8) $ 1,520,343
JUNE 1, 1996 TO MAY 31, 1997................. 20.76% 48% $ 1,212,565
NOVEMBER 1, 1995 TO MAY 31, 1996............. 16.38% 6% $ 907,223
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 23.95% 10% $ 711,111
DIVERSIFIED SMALL CAP
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 19.18% 40%(8) $ 899
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.21% 39%(8) $ 1,271
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 22.52% 112%(8) $ 1,504
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.64% 40%(8) $ 794
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00% 39%(8) $ 557
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 12.42% 112%(8) $ 476
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 19.29% 40%(8) $ 89,755
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.33% 39%(8) $ 67,459
JUNE 1, 1998 TO MAY 31, 1999................. (14.54)% 112%(8) $ 60,261
DECEMBER 31, 1997 (4) TO MAY 31, 1998........ 5.20% 93%(8) $ 12,551
EQUITY INCOME
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.04% 5%(6) $ 212,799
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (4.16)% 5%(6) $ 109,081
JUNE 1, 1998 TO MAY 31, 1999................. 14.74% 3%(6) $ 105,162
JUNE 1, 1997 TO MAY 31, 1998................. 28.64% 3%(6) $ 75,144
JUNE 1, 1996 TO MAY 31, 1997................. 22.40% 5% $ 43,708
MAY 2, 1996 (4) TO MAY 31, 1996.............. 2.30% 1% $ 31,448
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.34)% 5%(6) $ 163,939
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (4.40)% 5%(6) $ 118,792
JUNE 1, 1998 TO MAY 31, 1999................. 13.90% 3%(6) $ 106,688
JUNE 1, 1997 TO MAY 31, 1998................. 27.67% 3%(6) $ 67,385
JUNE 1, 1996 TO MAY 31, 1997................. 21.48% 5% $ 33,626
MAY 2, 1996 (4) TO MAY 31, 1996.............. 2.23% 1% $ 17,318
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
101
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 45.30 0.08 (0.22) (0.11)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 47.49 0.08 (2.17) (0.10)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 37.26 0.47 10.39 (0.48)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 44.19 0.26 (0.18) (0.26)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 46.35 0.18 (2.10) (0.24)
JUNE 1, 1998 TO MAY 31, 1999................. $ 41.18 0.51 5.45 (0.53)
JUNE 1, 1997 TO MAY 31, 1998................. $ 33.16 0.52 8.76 (0.54)
JUNE 1, 1996 TO MAY 31, 1997................. $ 27.56 0.56 5.55 (0.51)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 24.02 0.29 4.02 (0.69)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 18.90 0.46 4.66 0.00
EQUITY INDEX
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 78.14 0.23 12.87 (0.10)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 64.93 0.53 16.54 (0.53)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 70.32 0.33 (5.39) (0.33)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 49.60 0.48 22.31 (0.48)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 46.24 0.25 4.61 (0.25)
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... $ 41.45 0.42 4.79 (0.42)
JANUARY 1, 1995 TO DECEMBER 31, 1995......... $ 31.42 0.59 10.65 (0.59)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 78.19 (0.07) 12.84 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 65.03 (0.03) 16.52 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 70.41 0.04 (5.38) (0.04)
FEBRUARY 17, 1998 (4) TO MARCH 31, 1998...... $ 65.18 (0.01) 5.24 0.00
O SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 78.73 0.47 12.95 0.00
FEBRUARY 1, 1999 (4) TO SEPTEMBER 30, 1999... $ 78.00 0.44 0.45 (0.16)
EQUITY VALUE (16)
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 14.25 0.03 1.17 (0.03)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 14.93 0.14 0.58 (0.14)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 18.15 0.09 (3.22) (0.09)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 14.43 0.17 5.58 (0.17)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 12.66 0.08 1.89 (0.08)
OCTOBER 1, 1995 TO SEPTEMBER 30, 1996........ $ 13.27 0.20 1.60 (0.19)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 11.68 (0.02) 0.96 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 12.23 0.02 0.48 (0.02)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 14.86 0.02 (2.63) (0.02)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 11.81 0.05 4.57 (0.05)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 10.34 0.01 1.57 (0.01)
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... $ 10.00 0.00 0.34 0.00
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 11.68 (0.02) 0.96 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 12.23 0.02 0.48 (0.02)
APRIL 1, 1998 (4) TO SEPTEMBER 30, 1998...... $ 14.86 0.02 (2.63) (0.02)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 14.25 0.04 1.15 (0.04)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 14.92 0.15 0.59 (0.15)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 18.15 0.10 (3.23) (0.10)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 14.43 0.20 5.58 (0.20)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 12.65 0.09 1.89 (0.08)
OCTOBER 1, 1995 (4) TO SEPTEMBER 30, 1996.... $ 13.27 0.22 1.61 (0.23)
GROWTH
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 22.85 (0.03) 4.00 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 20.48 0.01 5.65 (0.01)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 22.09 0.05 (1.61) (0.05)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 19.20 0.11 6.18 (0.11)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 17.91 0.06 1.34 (0.06)
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... $ 17.26 0.07 2.00 (0.07)
JANUARY 1, 1995 TO DECEMBER 31, 1995......... $ 14.10 0.19 3.87 (0.19)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
102
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.06) $ 43.99 (0.36)%(5) 1.83%(5) 2.01%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 45.30 0.42%(5) 1.60%(5) 2.37%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... (0.15) $ 47.49 0.48%(5) 1.60%(5) 4.37%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.06) $ 42.95 0.55%(5) 0.86%(5) 0.88%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 44.19 1.11%(5) 0.85%(5) 0.88%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.26) $ 46.35 1.23%(5) 0.85%(5) 0.89%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.72) $ 41.18 1.43%(5) 0.85%(5) 0.86%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 33.16 1.97% 0.85% 0.90%
NOVEMBER 1, 1995 TO MAY 31, 1996............. (0.08) $ 27.56 2.72% 0.86% 1.13%
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 24.02 2.51% 0.85% 1.12%
EQUITY INDEX
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (3.19) $ 87.95 0.55% 0.71% 0.85%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (3.33) $ 78.14 0.68% 0.71% 0.80%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 64.93 0.94% 0.71% 0.77%
APRIL 1, 1997 TO MARCH 31, 1998.............. (1.59) $ 70.32 0.80%(11) 0.89%(11) 0.95%(11)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (1.25) $ 49.60 1.02%(11) 0.97%(11) 1.07%(11)
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... 0.00 $ 46.24 1.28%(11) 1.01%(11) 1.08%(11)
JANUARY 1, 1995 TO DECEMBER 31, 1995......... (0.62) $ 41.45 1.59% 0.96% 1.00%
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (3.18) $ 87.78 (0.20)% 1.46% 1.72%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (3.33) $ 78.19 (0.06)% 1.45% 1.61%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 65.03 0.14% 1.45% 1.58%
FEBRUARY 17, 1998 (4) TO MARCH 31, 1998...... 0.00 $ 70.41 (0.19)% 1.45% 1.64%
O SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (3.21) $ 88.94 1.46% 0.00% 0.00%
FEBRUARY 1, 1999 (4) TO SEPTEMBER 30, 1999... 0.00 $ 78.73 0.00% 0.00% 0.00%
EQUITY VALUE (16)
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.27) $ 13.15 0.40% 1.18% 1.52%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.26) $ 14.25 0.85% 1.17% 1.26%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 14.93 1.06% 1.09% 1.09%
APRIL 1, 1997 TO MARCH 31, 1998.............. (1.86) $ 18.15 1.03% 1.07% 1.16%
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.12) $ 14.43 1.14% 1.05% 1.12%
OCTOBER 1, 1995 TO SEPTEMBER 30, 1996........ (2.22) $ 12.66 1.73% 1.18% 1.22%
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.86) $ 10.76 (0.33)% 1.91% 2.33%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.03) $ 11.68 0.18% 1.83% 2.02%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 12.23 0.36% 1.81% 1.81%
APRIL 1, 1997 TO MARCH 31, 1998.............. (1.52) $ 14.86 0.42% 1.76% 1.83%
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.10) $ 11.81 0.34% 1.70% 2.19%
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... 0.00 $ 10.34 1.83% 0.00% N/A
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.86) $ 10.76 (0.33)% 1.91% 2.22%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.04) $ 11.67 0.18% 1.83% 2.32%
APRIL 1, 1998 (4) TO SEPTEMBER 30, 1998...... 0.00 $ 12.23 0.41% 1.83% 2.84%
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.27) $ 13.13 0.58% 1.00% 1.05%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.26) $ 14.25 0.96% 1.06% 1.08%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 14.92 1.17% 0.97% 0.97%
APRIL 1, 1997 TO MARCH 31, 1998.............. (1.86) $ 18.15 1.18% 0.95% 0.98%
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.12) $ 14.43 1.25% 0.95% 0.99%
OCTOBER 1, 1995 (4) TO SEPTEMBER 30, 1996.... (2.22) $ 12.65 1.69% 0.87% 0.92%
GROWTH
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (3.04) $ 23.78 (0.24)% 1.13% 1.41%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (3.28) $ 22.85 0.05% 1.10% 1.13%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 20.48 0.42% 1.08% 1.08%
APRIL 1, 1997 TO MARCH 31, 1998.............. (3.29) $ 22.09 0.53% 1.12% 1.13%
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.05) $ 19.20 0.65% 1.14% N/A
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... (1.35) $ 17.91 0.56% 1.18% 1.19%
JANUARY 1, 1995 TO DECEMBER 31, 1995......... (0.71) $ 17.26 1.23% 1.18% 1.21%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
---------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.35)% 5%(6) $ 5,152
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (4.41)% 5%(6) $ 2,124
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 28.55% 3%(6) $ 1,106
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.16% 5%(6) $ 1,368,707
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (4.16)% 5%(6) $ 1,471,410
JUNE 1, 1998 TO MAY 31, 1999................. 14.75% 3%(6) $ 1,519,541
JUNE 1, 1997 TO MAY 31, 1998................. 28.61% 3% $ 1,214,385
JUNE 1, 1996 TO MAY 31, 1997................. 22.40% 5% $ 425,197
NOVEMBER 1, 1995 TO MAY 31, 1996............. 18.14% 1% $ 230,831
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 27.09% 7% $ 49,000
EQUITY INDEX
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 16.96% 3% $ 662,665
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 26.82% 6% $ 611,111
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (7.22)% 6% $ 518,778
APRIL 1, 1997 TO MARCH 31, 1998.............. 46.48% 4%(12) $ 578,882
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 10.63% 2%(12) $ 406,739
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... 12.60% 1%(15) $ 370,439
JANUARY 1, 1995 TO DECEMBER 31, 1995......... 35.99% 6% $ 327,208
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 16.52% 3% $ 93,548
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 25.86% 6% $ 66,931
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (7.59)% 6% $ 17,499
FEBRUARY 17, 1998 (4) TO MARCH 31, 1998...... 8.02% 4% $ 3,811
O SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 17.25% 3% $ 0
FEBRUARY 1, 1999 (4) TO SEPTEMBER 30, 1999... 27.22% 6% $ 0
EQUITY VALUE (16)
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 9.06% 66% $ 26,811
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 4.34% 72% $ 31,764
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (17.27)% 23% $ 43,679
APRIL 1, 1997 TO MARCH 31, 1998.............. 41.76% 50% $ 52,392
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 15.63% 45% $ 20,798
OCTOBER 1, 1995 TO SEPTEMBER 30, 1996........ 14.27% 91% $ 18,453
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 8.65% 66% $ 50,598
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 3.68% 72% $ 58,490
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (17.54)% 23% $ 73,343
APRIL 1, 1997 TO MARCH 31, 1998.............. 40.87% 50% $ 72,428
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 15.31% 45% $ 2,542
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... 3.40% 91% $ 0
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 8.65% 66% $ 901
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 3.69% 72% $ 873
APRIL 1, 1998 (4) TO SEPTEMBER 30, 1998...... (17.57)% 23% $ 1,239
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 9.02% 66% $ 91,326
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 4.51% 72% $ 123,197
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (17.26)% 23% $ 166,616
APRIL 1, 1997 TO MARCH 31, 1998.............. 42.02% 50% $ 228,452
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 15.73% 45% $ 193,161
OCTOBER 1, 1995 (4) TO SEPTEMBER 30, 1996.... 14.58% 91% $ 206,620
GROWTH
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 19.21% 45% $ 349,350
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 29.54% 38% $ 315,134
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (7.08)% 18% $ 305,309
APRIL 1, 1997 TO MARCH 31, 1998.............. 34.65% 137% $ 365,405
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 7.86% 40% $ 283,468
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... 12.45% 83% $ 254,498
JANUARY 1, 1995 TO DECEMBER 31, 1995......... 28.90% 100% $ 178,488
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
103
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 16.11 (0.06) 2.79 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 14.53 (0.09) 4.00 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 15.70 (0.02) (1.15) 0.00
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 13.64 (0.01) 4.38 0.00
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 12.74 0.00 0.94 0.00
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... $ 12.29 (0.01) 1.42 0.00
JANUARY 1, 1995 (4) TO DECEMBER 31, 1995..... $ 10.00 0.05 2.79 (0.05)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 26.80 (0.01) 4.69 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 24.01 0.03 6.64 (0.03)
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 25.91 0.07 (1.90) (0.07)
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 22.52 0.17 7.25 (0.17)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 21.01 0.09 1.57 (0.09)
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... $ 20.03 0.02 0.97 (0.01)
GROWTH EQUITY
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 36.83 (0.13) 10.20 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 36.17 (0.01) 0.67 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 35.73 (0.02) 2.56 (0.03)
JUNE 1, 1997 TO MAY 31, 1998................. $ 32.49 (0.06) 6.88 (0.04)
JUNE 1, 1996 TO MAY 31, 1997................. $ 29.08 (0.02) 4.06 (0.04)
MAY 2, 1996 (4) TO MAY 31, 1996.............. $ 28.50 0.00 0.58 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 35.93 (0.17) 9.84 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 35.39 (0.10) 0.64 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 35.23 (0.25) 2.48 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 32.28 (0.23) 6.72 0.00
JUNE 1, 1996 TO MAY 31, 1997................. $ 29.07 (0.13) 3.93 0.00
MAY 6, 1996 (4) TO MAY 31, 1996.............. $ 28.18 0.00 0.89 0.00
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 36.84 (0.12) 10.05 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 36.29 0.02 0.53 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 30.66 (0.13) 7.86 (0.03)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 36.82 (0.08) 10.21 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 36.17 0.01 0.64 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 35.72 (0.03) 2.58 (0.03)
JUNE 1, 1997 TO MAY 31, 1998................. $ 32.48 (0.04) 6.86 (0.04)
JUNE 1, 1996 TO MAY 31, 1997................. $ 29.08 (0.02) 4.05 (0.04)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 26.97 0.00 4.09 (0.12)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 22.28 (0.02) 4.71 0.00
INDEX FUND
------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 53.67 0.30 8.95 (0.26)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 54.83 0.24 (0.77) (0.36)
JUNE 1, 1998 TO MAY 31, 1999................. $ 46.36 0.57 8.87 (0.57)
JUNE 1, 1997 TO MAY 31, 1998................. $ 39.49 0.58 10.74 (0.65)
JUNE 1, 1996 TO MAY 31, 1997................. $ 31.49 0.49 8.50 (0.48)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 27.67 0.36 4.08 (0.43)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 21.80 0.45 5.42 0.00
INTERNATIONAL
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 23.73 (0.08) 6.00 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 22.78 0.07 0.88 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.84 0.04 (0.43) (0.21)
JUNE 1, 1997 TO MAY 31, 1998................. $ 21.66 0.03 2.35 (0.20)
JUNE 1, 1996 TO MAY 31, 1997................. $ 19.82 0.10 1.94 (0.20)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 17.97 0.35 1.83 (0.33)
APRIL 12, 1995 (4) TO OCTOBER 31, 1995....... $ 16.50 0.01 1.46 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 23.54 (0.18) 5.94 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 22.66 0.02 0.86 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.70 (0.06) (0.49) (0.03)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
104
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.14) $ 16.70 (0.98)% 1.88% 2.22%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (2.33) $ 16.11 (0.64)% 1.79% 1.86%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 14.53 (0.29)% 1.79% 1.79%
APRIL 1, 1997 TO MARCH 31, 1998.............. (2.31) $ 15.70 (0.15)% 1.79% 1.80%
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.04) $ 13.64 (0.06)% 1.86% 1.89%
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... (0.96) $ 12.74 (0.12)% 1.93% 2.03%
JANUARY 1, 1995 (4) TO DECEMBER 31, 1995..... (0.50) $ 12.29 0.43% 1.87% 2.21%
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (3.57) $ 27.91 (0.03)% 1.00% 1.02%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (3.85) $ 26.80 0.15% 1.00% 1.02%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 24.01 0.48% 1.02% 1.04%
APRIL 1, 1997 TO MARCH 31, 1998.............. (3.86) $ 25.91 0.65% 0.99% N/A
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (0.06) $ 22.52 0.78% 1.01% N/A
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... 0.00 $ 21.01 1.27% 0.96% N/A
GROWTH EQUITY
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (5.63) $ 41.27 (1.54)%(5) 1.47%(5) 1.71%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 36.83 (0.01)%(5) 1.25%(5) 1.45%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (2.07) $ 36.17 (0.08)%(5) 1.25%(5) 1.44%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (3.54) $ 35.73 (0.11)%(5) 1.25%(5) 1.42%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.59) $ 32.49 (0.12)%(5) 1.30%(5) 1.95%(5)
MAY 2, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 29.08 0.34%(5) 2.08%(5) 6.40%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (5.63) $ 39.97 (2.29)%(5) 2.23%(5) 2.60%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 35.93 (0.76)%(5) 2.00%(5) 2.45%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (2.07) $ 35.39 (0.83)%(5) 2.00%(5) 2.45%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (3.54) $ 35.23 (0.85)%(5) 2.00%(5) 2.45%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.59) $ 32.28 (0.82)%(5) 2.04%(5) 3.02%(5)
MAY 6, 1996 (4) TO MAY 31, 1996.............. 0.00 $ 29.07 (0.40)%(5) 2.92%(5) 7.44%(5)
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (5.63) $ 41.14 (2.27)%(5) 2.23%(5) 3.05%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 36.84 (0.87)%(5) 2.00%(5) 6.22%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... (2.07) $ 36.29 (0.87)%(5) 2.01%(5) 21.40%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (5.63) $ 41.32 (1.33)%(5) 1.26%(5) 1.36%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 36.82 0.05%(5) 1.25%(5) 1.40%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (2.07) $ 36.17 (0.08)%(5) 1.25%(5) 1.38%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (3.54) $ 35.72 (0.11)%(5) 1.25%(5) 1.35%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.59) $ 32.48 (0.09)%(5) 1.30%(5) 1.84%(5)
NOVEMBER 1, 1995 TO MAY 31, 1996............. (1.86) $ 29.08 0.01%(5) 1.35%(5) 1.85%(5)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 26.97 (0.11)%(5) 1.38%(5) 1.92%(5)
INDEX FUND
----------------------------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.68) $ 61.98 0.92%(5) 0.25%(5) 0.35%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.27) $ 53.67 1.17%(5) 0.25%(5) 0.55%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.40) $ 54.83 1.28%(5) 0.25%(5) 0.55%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (3.80) $ 46.36 1.53%(5) 0.25%(5) 0.58%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.51) $ 39.49 2.10% 0.25% 0.56%
NOVEMBER 1, 1995 TO MAY 31, 1996............. (0.19) $ 31.49 2.25% 0.31% 0.57%
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 27.67 2.12% 0.50% 0.64%
INTERNATIONAL
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.39) $ 27.26 (2.02)%(5) 1.70%(5) 2.12%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 23.73 0.92%(5) 1.50%(5) 1.81%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.46) $ 22.78 0.37%(5) 1.50%(5) 1.80%(5)
JUNE 1, 1997 TO MAY 31, 1998................. 0.00 $ 23.84 0.44%(5) 1.47%(5) 1.72%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 21.66 0.42%(5) 1.43%(5) 1.72%(5)
NOVEMBER 1, 1995 TO MAY 31, 1996............. 0.00 $ 19.82 0.92%(5) 1.50%(5) 2.51%(5)
APRIL 12, 1995 (4) TO OCTOBER 31, 1995....... 0.00 $ 17.97 0.26%(5) 1.32%(5) 20.95%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.39) $ 26.91 (2.81)%(5) 2.47%(5) 2.95%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 23.54 0.18%(5) 2.25%(5) 2.92%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.46) $ 22.66 (0.30)%(5) 2.25%(5) 2.89%(5)
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
---------------------------------------------
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.75% 45% $ 76,519
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 28.68% 38% $ 60,909
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (7.45)% 18% $ 48,772
APRIL 1, 1997 TO MARCH 31, 1998.............. 33.83% 137% $ 52,901
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 7.36% 40% $ 23,010
JANUARY 1, 1996 TO SEPTEMBER 30, 1996 (14)... 11.89% 83% $ 12,832
JANUARY 1, 1995 (4) TO DECEMBER 31, 1995..... 28.47% 100% $ 4,682
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 19.29% 45% $ 58,726
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 29.69% 38% $ 17,588
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (7.10)% 18% $ 14,355
APRIL 1, 1997 TO MARCH 31, 1998.............. 34.86% 137% $ 18,180
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 7.92% 40% $ 19,719
SEPTEMBER 6, 1996 (4) TO SEPTEMBER 30,
1996....................................... 3.41% 83% $ 18,508
GROWTH EQUITY
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 29.33% 33%(8) $ 20,648
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 1.82% 22%(8) $ 23,750
JUNE 1, 1998 TO MAY 31, 1999................. 7.57% 73%(8) $ 17,335
JUNE 1, 1997 TO MAY 31, 1998................. 22.55% 47%(8) $ 21,567
JUNE 1, 1996 TO MAY 31, 1997................. 14.11% 9% $ 14,146
MAY 2, 1996 (4) TO MAY 31, 1996.............. 2.04% 7% $ 3,338
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 28.92% 33%(8) $ 25,616
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 1.53% 22%(8) $ 19,211
JUNE 1, 1998 TO MAY 31, 1999................. 6.78% 73%(8) $ 18,976
JUNE 1, 1997 TO MAY 31, 1998................. 21.63% 47%(8) $ 16,615
JUNE 1, 1996 TO MAY 31, 1997................. 13.28% 9% $ 8,713
MAY 6, 1996 (4) TO MAY 31, 1996.............. 3.16% 7% $ 703
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 28.91% 33%(8) $ 1,115
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 1.52% 22%(8) $ 320
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 25.73% 73%(8) $ 60
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 29.52% 33%(8) $ 808,393
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 1.80% 22%(8) $ 644,215
JUNE 1, 1998 TO MAY 31, 1999................. 7.60% 73%(8) $ 920,586
JUNE 1, 1997 TO MAY 31, 1998................. 22.52% 47%(8) $ 1,033,251
JUNE 1, 1996 TO MAY 31, 1997................. 14.11% 9% $ 895,420
NOVEMBER 1, 1995 TO MAY 31, 1996............. 15.83% 7% $ 735,728
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 21.10% 9% $ 564,004
INDEX FUND
---------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 17.32% 5%(6) $ 997,402
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (1.00)% 11%(6) $ 813,861
JUNE 1, 1998 TO MAY 31, 1999................. 20.57% 4%(6) $ 1,154,289
JUNE 1, 1997 TO MAY 31, 1998................. 30.32% 7%(6) $ 784,205
JUNE 1, 1996 TO MAY 31, 1997................. 29.02% 24% $ 513,134
NOVEMBER 1, 1995 TO MAY 31, 1996............. 16.27% 9% $ 249,644
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 26.93% 14% $ 186,197
INTERNATIONAL
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 25.78% 59%(6) $ 5,842
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 4.17% 23%(6) $ 2,726
JUNE 1, 1998 TO MAY 31, 1999................. (1.36)% 95%(8) $ 2,866
JUNE 1, 1997 TO MAY 31, 1998................. 11.20% 37%(8) $ 3,342
JUNE 1, 1996 TO MAY 31, 1997................. 10.33% 48%(6) $ 2,240
NOVEMBER 1, 1995 TO MAY 31, 1996............. 12.31% 14%(6) $ 1,080
APRIL 12, 1995 (4) TO OCTOBER 31, 1995....... 8.91% 29%(6) $ 216
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 25.28% 59%(6) $ 3,159
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 3.88% 23%(6) $ 1,960
JUNE 1, 1998 TO MAY 31, 1999................. (2.08)% 95%(8) $ 1,973
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
105
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
JUNE 1, 1997 TO MAY 31, 1998................. $ 21.55 (0.09) 2.31 (0.07)
JUNE 1, 1996 TO MAY 31, 1997................. $ 19.71 (0.06) 1.93 (0.03)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 17.91 0.25 1.83 (0.28)
MAY 12, 1995 (4) TO OCTOBER 31, 1995......... $ 17.20 0.01 0.70 0.00
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 23.74 (0.09) 6.04 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 22.80 0.07 0.87 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.85 0.10 (0.48) (0.21)
JUNE 1, 1997 TO MAY 31, 1998................. $ 21.67 0.09 2.29 (0.20)
JUNE 1, 1996 TO MAY 31, 1997................. $ 19.84 0.09 1.94 (0.20)
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 17.99 0.14 2.04 (0.33)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 17.28 0.09 0.62 0.00
INTERNATIONAL EQUITY (17)
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 12.70 (0.05) 5.18 (0.13)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 9.36 (0.02) 3.36 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 11.05 0.00 (1.69) 0.00
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... $ 10.00 0.02 1.03 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 12.54 (0.07) 5.09 (0.07)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 9.30 (0.10) 3.34 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 11.01 (0.03) (1.68) 0.00
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... $ 10.00 (0.01) 1.02 0.00
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 12.54 0.03 4.98 (0.09)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 9.30 (0.04) 3.28 0.00
APRIL 1 ,1998 (4) TO SEPTEMBER 30, 1998...... $ 11.01 (0.03) (1.68) 0.00
I SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... $ 13.61 0.12 4.01 (0.14)
LARGE COMPANY GROWTH
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 57.96 (0.22) 22.37 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 58.09 (0.12) (0.01) 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 38.48 (0.16) 20.82 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 54.29 (0.36) 20.88 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 54.50 (0.19) (0.02) 0.00
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... $ 39.80 (0.17) 15.92 0.00
C SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... $ 59.32 (0.14) 15.70 0.00
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 54.60 (0.14) 21.06 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 54.67 (0.07) 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 39.94 (0.17) 15.95 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 32.63 (0.11) 10.20 0.00
JUNE 1, 1996 TO MAY 31, 1997................. $ 26.97 (0.03) 5.91 0.00
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 23.59 (0.04) 3.64 0.00
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 18.50 (0.05) 5.14 0.00
SMALL CAP GROWTH (18)
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 26.23 0.07 19.13 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 17.86 (0.18) 9.99 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 25.62 (0.09) (7.67) 0.00
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 18.98 (0.06) 8.76 0.00
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 22.45 (0.01) (3.46) 0.00
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... $ 22.01 0.00 0.44 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 25.72 0.08 18.61 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 17.64 (0.36) 9.86 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 25.38 (0.18) (7.56) 0.00
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 18.93 (0.11) 8.61 0.00
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 22.46 (0.04) (3.49) 0.00
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... $ 22.02 0.00 0.44 0.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
106
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
JUNE 1, 1997 TO MAY 31, 1998................. 0.00 $ 23.70 (0.29)%(5) 2.22%(5) 2.81%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 21.55 (0.34)%(5) 2.18%(5) 2.76%(5)
NOVEMBER 1, 1995 TO MAY 31, 1996............. 0.00 $ 19.71 (0.02)%(5) 2.25%(5) 3.11%(5)
MAY 12, 1995 (4) TO OCTOBER 31, 1995......... 0.00 $ 17.91 0.17%(5) 1.27%(5) 14.57%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.39) $ 27.30 (1.88)%(5) 1.51%(5) 1.54%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 23.74 0.90%(5) 1.50%(5) 1.58%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.46) $ 22.80 0.44%(5) 1.50%(5) 1.61%(5)
JUNE 1, 1997 TO MAY 31, 1998................. 0.00 $ 23.85 0.45%(5) 1.47%(5) 1.50%(5)
JUNE 1, 1996 TO MAY 31, 1997................. 0.00 $ 21.67 0.40%(5) 1.43%(5) 1.44%(5)
NOVEMBER 1, 1995 TO MAY 31, 1996............. 0.00 $ 19.84 0.60%(5) 1.50%(5) 1.52%(5)
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 17.99 0.54%(5) 1.50%(5) 1.66%(5)
INTERNATIONAL EQUITY (17)
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.08) $ 17.62 (0.86)% 1.75% 1.59%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 0.00 $ 12.70 (0.17)% 1.75% 2.10%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 9.36 0.10% 1.75% 2.06%
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... 0.00 $ 11.05 0.35% 1.75% 2.20%
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.08) $ 17.41 (1.52)% 2.45% 2.06%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 0.00 $ 12.54 (0.81)% 2.40% 2.79%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 9.30 (0.56)% 2.40% 2.70%
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... 0.00 $ 11.01 (0.31)% 2.40% 2.84%
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (0.08) $ 17.38 (1.56)% 2.45% 2.08%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 0.00 $ 12.54 (0.78)% 2.37% 2.72%
APRIL 1 ,1998 (4) TO SEPTEMBER 30, 1998...... 0.00 $ 9.30 (1.15)% 2.40% 2.66%
I SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... (0.08) $ 17.52 (0.38)% 1.50% 1.18%
LARGE COMPANY GROWTH
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.60) $ 78.51 (1.47)%(5) 1.21%(5) 1.34%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 57.96 (0.58)%(5) 1.20%(5) 1.40%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... (1.05) $ 58.09 (0.68)%(5) 1.20%(5) 1.35%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.60) $ 73.21 (2.03)%(5) 1.76%(5) 2.16%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 54.29 (1.13)%(5) 1.75%(5) 2.05%(5)
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... (1.05) $ 54.50 (1.22)%(5) 1.76%(5) 2.15%(5)
C SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... (1.60) $ 73.28 (2.17)%(5) 1.78%(5) 2.19%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (1.60) $ 73.92 (1.27)%(5) 1.00%(5) 1.02%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 54.60 (0.38)%(5) 1.00%(5) 1.04%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (1.05) $ 54.67 (0.49)%(5) 1.00%(5) 1.09%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (2.78) $ 39.94 (0.36)%(5) 1.00%(5) 1.03%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (0.22) $ 32.63 (0.18)% 0.99% 1.09%
NOVEMBER 1, 1995 TO MAY 31, 1996............. (0.22) $ 26.97 (0.30)% 1.00% 1.13%
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 23.59 (0.23)% 1.00% 1.20%
SMALL CAP GROWTH (18)
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.56) $ 42.87 (0.79)% 1.29% 1.86%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.44) $ 26.23 (0.92)% 1.35% 1.53%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 17.86 (0.82)% 1.36% 1.49%
APRIL 1, 1997 TO MARCH 31, 1998.............. (2.06) $ 25.62 (0.43)%(11) 1.22%(11) 1.57%(11)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 0.00 $ 18.98 (0.23)%(11) 1.10%(11) 2.80%(11)
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 0.00 $ 22.45 (0.59)%(11) 1.03%(11) 38.54%(11)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.50) $ 41.91 (1.55)% 2.05% 2.73%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.42) $ 25.72 (1.67)% 2.09% 2.29%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 17.64 (1.56)% 2.11% 2.13%
APRIL 1, 1997 TO MARCH 31, 1998.............. (2.05) $ 25.38 (1.13)%(11) 1.92%(11) 2.21%(11)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 0.00 $ 18.93 (0.85)%(11) 1.75%(11) 3.55%(11)
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 0.00 $ 22.46 0.00% 0.00% 0.00%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
---------------------------------------------
JUNE 1, 1997 TO MAY 31, 1998................. 10.39% 37%(8) $ 2,245
JUNE 1, 1996 TO MAY 31, 1997................. 9.44% 48%(6) $ 1,667
NOVEMBER 1, 1995 TO MAY 31, 1996............. 11.79% 14%(6) $ 995
MAY 12, 1995 (4) TO OCTOBER 31, 1995......... 4.30% 29%(6) $ 395
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 25.90% 59%(6) $ 326,706
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 4.12% 23%(6) $ 274,448
JUNE 1, 1998 TO MAY 31, 1999................. (1.32)% 95%(8) $ 271,240
JUNE 1, 1997 TO MAY 31, 1998................. 11.19% 37%(8) $ 279,667
JUNE 1, 1996 TO MAY 31, 1997................. 10.27% 48%(6) $ 228,552
NOVEMBER 1, 1995 TO MAY 31, 1996............. 12.31% 14%(6) $ 143,643
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 4.11% 29%(6) $ 91,401
INTERNATIONAL EQUITY (17)
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 40.65% 20% $ 58,280
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 35.68% 41% $ 35,779
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (15.29)% 21% $ 23,857
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... 10.52% 12% $ 26,770
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 40.13% 20% $ 64,622
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 34.84% 41% $ 37,911
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (15.53)% 21% $ 30,070
SEPTEMBER 24, 1997 TO MARCH 31, 1998......... 10.10% 12% $ 33,003
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 40.06% 20% $ 2,398
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 34.84% 41% $ 673
APRIL 1 ,1998 (4) TO SEPTEMBER 30, 1998...... (15.53)% 21% $ 297
I SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... 31.66% 20% $ 80,312
LARGE COMPANY GROWTH
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 38.64% 5%(6) $ 292,646
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.22)% 5%(6) $ 188,890
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 54.16% 28%(6) $ 191,233
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 38.25% 5%(6) $ 379,498
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.39)% 5%(6) $ 201,351
OCTOBER 1, 1998 (4) TO MAY 31, 1999.......... 40.01% 28%(6) $ 156,870
C SHARES
NOVEMBER 8, 1999 (4) TO MARCH 31, 2000....... 26.51% 5%(6) $ 11,583
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 38.77% 5%(6) $ 1,349,024
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.13)% 5%(6) $ 801,943
JUNE 1, 1998 TO MAY 31, 1999................. 39.96% 28%(6) $ 645,385
JUNE 1, 1997 TO MAY 31, 1998................. 32.29% 13%(6) $ 232,499
JUNE 1, 1996 TO MAY 31, 1997................. 21.93% 24% $ 131,768
NOVEMBER 1, 1995 TO MAY 31, 1996............. 15.40% 17% $ 82,114
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 27.51% 32% $ 63,567
SMALL CAP GROWTH (18)
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 78.49% 37% $ 190,311
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 58.81% 249% $ 16,662
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (30.29)% 110% $ 10,899
APRIL 1, 1997 TO MARCH 31, 1998.............. 47.03% 291%(12) $ 15,611
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (15.46)% 69%(12) $ 3,107
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 2.00% 10%(12) $ 96
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 77.96% 37% $ 95,295
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 57.66% 249% $ 18,718
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (30.50)% 110% $ 13,071
APRIL 1, 1997 TO MARCH 31, 1998.............. 46.02% 291%(12) $ 15,320
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (15.72)% 69%(12) $ 1,905
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 2.00% 10%(12) $ 0
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
107
<PAGE>
STOCK FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 25.71 0.20 18.47 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 17.63 (0.39) 9.89 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 25.38 (0.18) (7.57) 0.00
DECEMBER 15, 1997 (4) TO MARCH 31, 1998...... $ 21.77 (0.08) 3.69 0.00
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 26.66 (0.03) 19.61 0.00
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ $ 18.02 (0.28) 10.38 0.00
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... $ 25.77 (0.02) (7.73) 0.00
APRIL 1, 1997 TO MARCH 31, 1998.............. $ 19.01 0.00 8.84 (0.01)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... $ 22.45 0.02 (3.46) 0.00
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... $ 22.01 0.00 0.44 0.00
SMALL CAP OPPORTUNITIES
------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 20.50 (0.07) 6.86 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 20.50 (0.04) 0.04 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.60 (0.11) (2.97) 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 19.83 (0.07) 4.37 0.00
OCTOBER 9, 1996 (4) TO MAY 31, 1997.......... $ 17.39 (0.01) 2.46 0.00
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 20.03 (0.14) 6.68 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 20.09 (0.09) 0.03 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.32 (0.31) (2.90) 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 19.75 (0.05) 4.15 0.00
NOVEMBER 8, 1996 (4) TO MAY 31, 1997......... $ 17.41 (0.05) 2.40 0.00
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 20.50 (0.06) 6.87 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 20.51 (0.03) 0.02 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 23.61 (0.11) (2.97) 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 19.84 (0.06) 4.36 0.00
AUGUST 15, 1996 (4) TO MAY 31, 1997.......... $ 16.26 (0.01) 3.60 0.00
SMALL CAP VALUE
------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 8.51 (0.03) 1.60 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 8.04 (0.02) 0.49 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 10.16 (0.03) (2.08) 0.00
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... $ 10.00 (0.01) 0.17 0.00
SMALL COMPANY GROWTH
------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ $ 27.03 (0.10) 10.73 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... $ 27.44 (0.05) (0.36) 0.00
JUNE 1, 1998 TO MAY 31, 1999................. $ 33.69 (0.15) (3.67) 0.00
JUNE 1, 1997 TO MAY 31, 1998................. $ 31.08 (0.23) 6.88 0.00
JUNE 1, 1996 TO MAY 31, 1997................. $ 33.00 (0.18) 1.83 0.00
NOVEMBER 1, 1995 TO MAY 31, 1996............. $ 29.99 (0.07) 5.94 0.00
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... $ 21.88 (0.11) 8.22 0.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
108
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) STOCK FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
FROM NET NET ASSET ---------------------------------------------
REALIZED VALUE PER NET INVESTMENT NET GROSS
GAINS SHARE INCOME (LOSS) EXPENSES EXPENSES(1)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.50) $ 41.88 (1.54)% 2.05% 2.45%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.42) $ 25.71 (1.68)% 2.10% 2.68%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 17.63 (1.56)% 2.11% 2.71%
DECEMBER 15, 1997 (4) TO MARCH 31, 1998...... 0.00 $ 25.38 (1.17)% 2.10% 2.66%
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ (2.60) $ 43.64 (0.67)% 1.18% 1.44%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ (1.46) $ 26.66 (0.38)% 0.76% 1.29%
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... 0.00 $ 18.02 (0.21)% 0.76% 1.21%
APRIL 1, 1997 TO MARCH 31, 1998.............. (2.07) $ 25.77 0.01%(11) 0.75%(11) 1.26%(11)
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... 0.00 $ 19.01 0.16%(11) 0.75%(11) 1.65%(11)
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 0.00 $ 22.45 (1.15)%(11) 1.60%(11) 1.63%(11)
SMALL CAP OPPORTUNITIES
----------------------------------------------------------------------------------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 27.29 (0.65)% 1.39% 1.64%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 20.50 (0.44)% 1.25% 1.41%
JUNE 1, 1998 TO MAY 31, 1999................. (0.02) $ 20.50 (0.47)%(5) 1.25%(5) 1.49%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.53) $ 23.60 (0.43)%(5) 1.27%(5) 1.86%(5)
OCTOBER 9, 1996 (4) TO MAY 31, 1997.......... (0.01) $ 19.83 (0.18)%(5) 1.25%(5) 10.51%(5)
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 26.57 (1.41)% 2.14% 2.34%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 20.03 (1.19)% 2.00% 2.48%
JUNE 1, 1998 TO MAY 31, 1999................. (0.02) $ 20.09 (1.28)%(5) 2.06%(5) 2.51%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.53) $ 23.32 (1.21)%(5) 2.02%(5) 3.05%(5)
NOVEMBER 8, 1996 (4) TO MAY 31, 1997......... (0.01) $ 19.75 (0.99)%(5) 2.06%(5) 27.27%(5)
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 27.31 (0.53)% 1.26% 1.30%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 20.50 (0.44)% 1.25% 1.29%
JUNE 1, 1998 TO MAY 31, 1999................. (0.02) $ 20.51 (0.47)%(5) 1.25%(5) 1.35%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (0.53) $ 23.61 (0.40)%(5) 1.25%(5) 1.38%(5)
AUGUST 15, 1996 (4) TO MAY 31, 1997.......... (0.01) $ 19.84 (0.16)%(5) 1.25%(5) 1.89%(5)
SMALL CAP VALUE
----------------------------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 10.08 (1.26)%(5) 1.26%(5) 1.42%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 8.51 (0.60)%(5) 1.29%(5) 1.71%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (0.01) $ 8.04 (0.46)%(5) 1.30%(5) 1.72%(5)
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... 0.00 $ 10.16 (0.56)%(5) 1.30%(5) 3.54%(5)
SMALL COMPANY GROWTH
----------------------------------------------------------------------------------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 0.00 $ 37.66 (1.53)%(5) 1.26%(5) 1.27%(5)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00 $ 27.03 (0.52)%(5) 1.25%(5) 1.30%(5)
JUNE 1, 1998 TO MAY 31, 1999................. (2.43) $ 27.44 (0.52)%(5) 1.25%(5) 1.30%(5)
JUNE 1, 1997 TO MAY 31, 1998................. (4.04) $ 33.69 (0.73)%(5) 1.25%(5) 1.26%(5)
JUNE 1, 1996 TO MAY 31, 1997................. (3.57) $ 31.08 (0.71)% 1.24% 1.29%
NOVEMBER 1, 1995 TO MAY 31, 1996............. (2.86) $ 33.00 (0.41)% 1.25% 1.29%
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 0.00 $ 29.99 (0.47)% 1.25% 1.35%
<CAPTION>
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
<S> <C> <C> <C>
---------------------------------------------
C SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 77.90% 37% $ 26,798
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 57.69% 249% $ 1,711
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (30.54)% 110% $ 1,426
DECEMBER 15, 1997 (4) TO MARCH 31, 1998...... 16.58% 291% $ 2,495
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 78.77% 37% $ 133,896
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999........ 59.98% 249% $ 22,023
APRIL 1, 1998 TO SEPTEMBER 30, 1998 (10)..... (30.07)% 110% $ 56,438
APRIL 1, 1997 TO MARCH 31, 1998.............. 47.70% 291%(12) $ 78,856
OCTOBER 1, 1996 TO MARCH 31, 1997 (13)....... (15.32)% 69%(12) $ 29,200
SEPTEMBER 16, 1996 TO SEPTEMBER 30, 1996..... 2.00% 10%(12) $ 24,553
SMALL CAP OPPORTUNITIES
---------------------------------------------
A SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 33.12% 82% $ 9,497
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 0.00% 40% $ 7,633
JUNE 1, 1998 TO MAY 31, 1999................. (13.03)% 119%(6) $ 4,698
JUNE 1, 1997 TO MAY 31, 1998................. 21.97% 55%(6) $ 6,870
OCTOBER 9, 1996 (4) TO MAY 31, 1997.......... 11.37% 34%(6) $ 522
B SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 32.65% 82% $ 5,083
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.30)% 40% $ 4,089
JUNE 1, 1998 TO MAY 31, 1999................. (13.74)% 119%(6) $ 4,187
JUNE 1, 1997 TO MAY 31, 1998................. 21.03% 55%(6) $ 6,140
NOVEMBER 8, 1996 (4) TO MAY 31, 1997......... 13.53% 34%(6) $ 158
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 33.22% 82% $ 227,907
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (0.05)% 40% $ 195,283
JUNE 1, 1998 TO MAY 31, 1999................. (13.02)% 119%(6) $ 201,816
JUNE 1, 1997 TO MAY 31, 1998................. 21.95% 55%(6) $ 284,828
AUGUST 15, 1996 (4) TO MAY 31, 1997.......... 11.42% 34%(6) $ 77,174
SMALL CAP VALUE
---------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 18.45% 63%(6) $ 17,956
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... 5.85% 49%(6) $ 17,404
JUNE 1, 1998 TO MAY 31, 1999................. (20.77)% 108%(6) $ 16,791
OCTOBER 15, 1997 (4) TO MAY 31, 1998......... 1.60% 79%(6)(7) $ 6,422
SMALL COMPANY GROWTH
---------------------------------------------
I SHARES
OCTOBER 1, 1999 TO MARCH 31, 2000............ 39.33% 27%(6) $ 663,020
JUNE 1, 1999 TO SEPTEMBER 30, 1999 (3)....... (1.49)% 55%(6) $ 515,292
JUNE 1, 1998 TO MAY 31, 1999................. (10.72)% 154%(6) $ 557,516
JUNE 1, 1997 TO MAY 31, 1998................. 22.38% 123%(6) $ 748,269
JUNE 1, 1996 TO MAY 31, 1997................. 5.65% 124% $ 447,580
NOVEMBER 1, 1995 TO MAY 31, 1996............. 21.43% 62% $ 378,546
NOVEMBER 11, 1994 (4) TO OCTOBER 31, 1995.... 37.07% 107% $ 278,058
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
109
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 9).
(2) 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) The Fund changed its fiscal year-end from May 31 to September 30.
(4) Commencement of operations.
(5) Includes expenses allocated from the Portfolio(s) in which the Fund
invests.
(6) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(7) The Portfolio in which the Fund invests had a different period of
operations than the Fund.
(8) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(9) Actual dividends per share were less than $0.01.
(10) The Fund changed its fiscal year-end from March 31 to September 30.
(11) This ratio includes activity of the Master Portfolio prior to
December 15, 1997.
(12) The portfolio turnover rate includes activity of the Master Portfolio
prior to December 15, 1997.
(13) The Fund changed its fiscal year-end from September 30 to March 31.
(14) The Fund changed its fiscal year-end from December 31 to September 30.
(15) The portfolio turnover rate of the Corporate Stock Master Portfolio from
its inception on April 26, 1999 to September 30, 1999 was 3%. The
information shown reflects the stand-alone period only.
(16) The Fund operated as a series of Pacifica Funds Trust from its
commencement of operations until it was reorganized as a series of
Stagecoach Funds, Inc. on September 6, 1996. In conjunction with the
reorganization, existing Investor Shares were converted into Class A
shares of the Fund and WFB assumed investment advisory responsibilities.
Prior to April 1, 1996, the Fund was advised by First Interstate Capital
Management, Inc. ("FICM"). In connection with the merger of First
Interstate Bancorp into Wells Fargo & Co. on April 1, 1996, FICM was
renamed Wells Fargo Investment Management, Inc., subsequently renamed
Wells Capital Management, Inc.
(17) The Fund commenced operations on September 24, 1997.
(18) The Fund commenced operations on September 16, 1996.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
110
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 61 separate series. These financial
statements represent the Disciplined Growth, Diversified Equity, Diversified
Small Cap, Equity Income, Equity Index, Equity Value, Growth, Growth Equity,
Index, International, International Equity, Large Company Growth, Small Cap
Growth, Small Cap Opportunities, Small Cap Value, and Small Company Growth
Funds (each, a "Fund", collectively, the "Funds"), each 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 a tax-free exchange of
shares as follows:
<TABLE>
<CAPTION>
Stagecoach Fund Norwest Advantage Fund Wells Fargo Fund
<S> <C> <C>
PERFORMA DISCIPLINED GROWTH FUND* DISCIPLINED GROWTH FUND
DIVERSIFIED EQUITY FUND* DIVERSIFIED EQUITY FUND
DIVERSIFIED SMALL CAP FUND* DIVERSIFIED SMALL CAP FUND
DIVERSIFIED EQUITY INCOME FUND INCOME EQUITY FUND* EQUITY INCOME FUND
EQUITY INDEX FUND* EQUITY INDEX FUND
EQUITY VALUE FUND* EQUITY VALUE FUND
GROWTH EQUITY FUND* GROWTH EQUITY FUND
GROWTH FUND* VALUGROWTH-SM- STOCK FUND GROWTH FUND
INDEX FUND* INDEX FUND
INTERNATIONAL FUND* INTERNATIONAL FUND
INTERNATIONAL EQUITY FUND* INTERNATIONAL EQUITY FUND
LARGE COMPANY GROWTH FUND* LARGE COMPANY GROWTH FUND
SMALL CAP FUND*/STRATEGIC SMALL COMPANY STOCK FUND SMALL CAP GROWTH FUND
GROWTH FUND
SMALL CAP OPPORTUNITIES FUND* SMALL CAP OPPORTUNITIES FUND
PERFORMA SMALL CAP VALUE FUND* SMALL CAP VALUE FUND
SMALL COMPANY GROWTH FUND* SMALL COMPANY GROWTH FUND
</TABLE>
* ACCOUNTING SURVIVOR
In the consolidation, the Wells Fargo Equity Income Fund acquired all of the
net assets of the Stagecoach Diversified Equity Income Fund and Norwest
Advantage Income Equity Fund. The Stagecoach Diversified Equity Income Fund
exchanged its 11,832,453 shares (valued at $174,302,021) for 3,962,913 shares
of the Wells Fargo Equity Income Fund.
In the consolidation, the Wells Fargo Growth Fund acquired all of the net
assets of the Stagecoach Growth Fund and Norwest Advantage ValuGrowth Stock
Fund. The Norwest Advantage ValuGrowth Stock Fund exchanged its 11,218,810
shares (valued at $138,863,010) for 5,907,342 shares of the Wells Fargo Growth
Fund. The net assets of the Norwest Advantage ValuGrowth Stock Fund included
unrealized appreciation of $53,118,113.
In the consolidation, the Wells Fargo Small Cap Growth Fund acquired all of
the net assets of the Stagecoach Small Cap, Stagecoach Strategic Growth, and
Norwest Advantage Small Company Stock Funds. The Stagecoach Strategic Growth
Fund exchanged its 5,537,435 shares (valued at $144,073,891) for 4,907,364
shares of the Wells Fargo Small Cap Growth Fund. The net assets of the
Stagecoach Strategic Growth Fund included unrealized appreciation of
$26,936,348. The Norwest Advantage Small Company Stock Fund exchanged its
2,745,369 shares (valued at $27,416,341) for 919,461 shares of the Wells Fargo
111
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Small Cap Growth Fund. The net assets of the Norwest Advantage Small Company
Stock Fund included unrealized appreciation of $1,817,314.
The Diversified Equity, Diversified Small Cap, Equity Income, Equity Value,
Growth, Growth Equity, International, International Equity, Large Company
Growth, Small Cap Growth, and Small Cap Opportunities Funds offer Class A,
Class B, and Institutional Class shares. In addition, the Diversified Equity,
Equity Income, Equity Value, Growth Equity, International Equity, Large
Company Growth, and Small Cap Growth Funds also offer Class C shares. The
Equity Index Fund offers Class A, Class B, and Class O shares. The Disciplined
Growth, Index, Small Cap Value, and Small Company Growth Funds only offer
Institutional Class 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 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 the relative weightings of pro rata
income and realized gain allocations and from differences in separate class
expenses, including shareholder servicing fees.
The Disciplined Growth, Diversified Equity, Diversified Small Cap, Equity
Income, Growth Equity, Index, International, Large Company Growth, Small Cap
Value, and Small Company Growth Funds each seek to achieve its investment
objective by investing all investable assets in one or more separate
diversified portfolios ("Portfolio") of Core Trust, a registered open-end
management investment company. Each Portfolio directly acquires portfolio
securities, and a Fund investing in a Portfolio acquires an indirect interest
in those securities. The Funds account for their investment in the Portfolios
as partnership investments and record daily their share of the Portfolio's
income, expenses, and realized and unrealized gain and loss. The financial
statements of the Portfolios are in this report and should be read in
conjunction with the Funds' financial statements.
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 at the close of each business day.
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.
FOREIGN CURRENCY TRANSLATION
The accounting records of the International and International Equity Funds
are maintained in U.S. dollars. Assets, including investment securities, and
liabilities denominated in foreign currency are translated into U.S. dollars
at the prevailing rates of exchange at the date of valuation. Purchases and
sales of securities, and income and expenses are translated at the prevailing
rate of exchange on the respective dates of such transactions. Reported net
realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions, and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Funds'
112
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
books and the U.S. dollar equivalent of the amounts actually paid or received.
Net unrealized foreign exchange gains and losses arise from changes in the
fair value of assets and liabilities other than investments in securities, at
fiscal period-end, resulting from changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from
certain foreign currency transactions are treated as ordinary income for U.S.
Federal income tax purposes.
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, except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
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 or federal agency
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
March 31, 2000, the Equity Index and Growth Funds held the following long
futures contracts:
<TABLE>
<CAPTION>
Notional
Expiration Contract Net Unrealized
Fund Contracts Type Date Value Appreciation
<S> <C> <C> <C> <C> <C>
EQUITY INDEX 16 S&P 500 INDEX JUNE, 2000 $ 6,061,200 $317,325
GROWTH 28 S&P 500 INDEX JUNE, 2000 $10,607,100 $405,475
</TABLE>
The Equity Index Fund has pledged to brokers U.S. Treasury bills for initial
margin requirements with a par value of $970,000. The Growth Fund has pledged
to brokers cash for initial margin requirements with a value of $656,250.
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
113
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Fund also continues to receive interest or dividends on the securities loaned.
Security loans are secured at all times by collateral equal to at least 102%
of the market value of the securities loaned plus accrued interest. 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 six months ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Securities Collateral
<S> <C> <C>
EQUITY INDEX $109,159,666 $112,630,225
EQUITY VALUE 25,939,100 26,940,941
GROWTH 88,417,034 93,175,698
SMALL CAP GROWTH 112,932,959 116,977,402
SMALL CAP OPPORTUNITIES 34,224,251 35,415,154
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
and distributed annually, with the exception of the Equity Income and Equity
Value Funds. Dividends to shareholders from net investment income of the
Equity Income and Equity Value Funds, if any, are declared and distributed
quarterly. Distributions to shareholders from net realized capital gains, if
any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at March 31,
2000.
114
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Date Fund Year Expires Carryforwards
<S> <C> <C> <C>
MAY 31, 1999 DISCIPLINED GROWTH 2006 $ 15,619
2007 1,458,037
MAY 31, 1999 DIVERSIFIED SMALL CAP 2006 6,413
2007 3,472,150
NOVEMBER 5, 1999 SMALL CAP GROWTH 2006 23,208,632
2007 4,161,202
SEPTEMBER 30, 1999 SMALL CAP OPPORTUNITIES 2006 16,265,178
MAY 31, 1999 SMALL CAP VALUE 2007 1,680,398
MAY 31, 1999 SMALL COMPANY GROWTH 2007 68,661,321
</TABLE>
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and
with the various states prior to June 30, 1998 are being amortized on a
straight-line basis over 60 months from the date each Fund commenced
operations. Costs incurred after June 30, 1998 are expensed as incurred.
3. ADVISORY FEES
The Trust has entered into separate advisory contracts on behalf of the Funds
with WFB. Pursuant to the contracts, WFB has agreed to provide the following
Funds with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
Fund % of Average Daily Net Assets
<S> <C>
EQUITY INDEX FUND 0.25
EQUITY VALUE FUND 0.75
GROWTH FUND 0.75
INTERNATIONAL EQUITY FUND 1.00
SMALL CAP GROWTH FUND 0.90
SMALL CAP OPPORTUNITIES FUND 0.90
</TABLE>
The Diversified Equity, Diversified Small Cap, and Growth Equity Funds are
invested in various Core Portfolios. WFB is entitled to receive an investment
advisory fee of 0.25% of each Fund's average daily net assets for providing
advisory services including the determination of the asset allocations of each
Fund's investments in the various Core Portfolios. The Disciplined Growth,
Equity Income, Index, International, Large Company Growth, Small Cap Value,
and Small Company Growth Funds invest all of their assets in single Core
Portfolios and do not pay investment advisory fees. WFB acts as advisor to the
Core Portfolios, and is entitled to receive a fee from the Core Portfolio for
those services.
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Equity Index, Equity Value, Growth,
International Equity, and Small Cap Growth Funds. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Equity Index
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. For the Equity Value, Growth, and Small Cap Growth
Funds, WCM is entitled to receive from WFB, as compensation for its
sub-advisory services, a monthly fee at the annual rate of 0.25% of each
Fund's average daily net assets up to $200 million, 0.20% for the next $200
million, and 0.15% of each Fund's average daily net assets in excess of $400
million. For the International Equity Fund, WCM is entitled to receive from
WFB, as compensation for its sub-advisory services, a monthly fee at the
annual rate of 0.35% of the Fund's average daily net assets up to $200
million, 0.25% for the next $200 million, and 0.15% of the Fund's average
daily net assets in excess of $400 million.
115
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Schroder Capital Management Inc. ("Schroder"), a wholly-owned U.S. subsidiary
of Schroder Incorporated, which is a wholly-owned U.S. subsidiary of Schroder
PLC, acts as sub-advisor to the Small Cap Opportunities Fund. Schroder is
entitled to receive from WFB, as compensation for its sub-advisory services, a
monthly fee at the annual rate of 0.60% of the Fund's average daily net
assets.
Prior to November 8, 1999, the Trust had entered into separate advisory
contracts on behalf of the Equity Index, Equity Value, Growth, International
Equity, and Small Cap Growth Funds with WFB. Pursuant to the contracts, WFB
had agreed to provide the Funds with daily portfolio management. Under the
prior contracts with the Funds, WFB was entitled to be paid monthly advisory
fees at the annual rates of 0.25% of the Equity Index Fund's average daily net
assets, 0.50% of the Equity Value Fund's average daily net assets, 1.00% of
the International Equity Fund's average daily net assets, and 0.60% of the
Small Cap Growth Fund's average daily net assets. For the Growth Fund, WFB was
entitled to be paid a monthly advisory fee at the annual rate of 0.50% of the
Fund's average daily net assets up to $250 million, 0.40% for the next $250
million, and 0.30% of the Fund's average daily net assets in excess of $500
million. Prior to November 8, 1999, the investment advisor to the Small Cap
Opportunities Fund was Norwest Investment Management, Inc. ("Adviser"), a
wholly-owned subsidiary of Norwest Bank Minnesota, N.A. ("Norwest"), which is
a subsidiary of Wells Fargo & Company. For the Small Cap Opportunities Fund,
the Adviser was entitled to be paid a monthly advisory fee at the annual rate
of 0.60% of the Fund's average daily net assets. The rates for the Disciplined
Growth, Diversified Equity, Diversified Small Cap, Equity Income, Growth
Equity, Index, International, Large Company Growth, Small Cap Value, and Small
Company Growth Funds remain unchanged.
Prior to November 8, 1999, Barclays Global Fund Advisors ("BGFA"), a
wholly-owned subsidiary of Barclays Global Investors, N.A. ("BGI") and
indirect subsidiary of Barclays Bank PLC, acted as sub-advisor to the Equity
Index Fund. BGFA was entitled to receive from WFB, as compensation for its
sub-advisory services, 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 its average daily net
assets in excess of $200 million.
Each Fund that invests its assets in one or more of the Portfolios may
withdraw its investments from its corresponding Portfolio(s) at any time if
the Board of Trustees determines that it is in the best interests of the Fund
to do so. Upon such redemption and subsequent investment in a portfolio of
securities, WFB (and the corresponding sub-advisor) may receive an investment
fee for the management of those assets. If the redeemed assets are invested in
one or more Core Portfolios, WFB (and the corresponding sub-advisor) does not
receive any compensation.
4. DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and C
shares of the Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution
fees are charged to the Class B and C shares and paid to Stephens, Inc.
("Stephens") at a rate of 0.75% of average daily net assets. There are no
distribution fees for the Funds' Class A shares. The distribution fees paid on
behalf of the Funds for the period ended March 31, 2000 are disclosed in the
Statement of Operations.
Prior to November 8, 1999, the Plan for the Class A shares of the Equity
Value, International Equity, and Small Cap Growth Funds provided that the
Funds may pay to Stephens, as compensation for distribution-related services
or as reimbursement for distribution-related expenses, a monthly fee at an
annual rate of up to 0.10% of the average daily net assets attributable to
their Class A shares.
Prior to November 8, 1999, the Plan for the Class A shares of the Growth Fund
provided that such 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 its Class A shares. The Plan for Class B
shares of the Growth Fund provided that the Fund may pay to Stephens, as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.70% of the
average daily net assets attributable to the Class B shares of the Growth
Fund.
Prior to November 8, 1999, the Plan for the Class A shares of the Large
Company Growth and Diversified Small Cap Funds authorized payment of a
distribution service fee at an annual rate of 0.10% of each Fund's average
daily net assets attributable to its Class A shares. The Plan for the
Diversified Equity, Diversified Small Cap, Equity Income, Growth Equity,
International, Large Company Growth, and Small Cap Opportunities Funds also
authorized payment of a maintenance fee at an annual rate of 0.25% of each
Fund's average daily net assets attributable to Class B shares.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
The Plan for Class B shares of the Equity Index, Equity Value, International
Equity, and Small Cap Growth Funds, and Class C shares of the Equity Value,
International Equity, and Small Cap Growth Funds remains unchanged.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB is entitled to receive monthly fees at the annual rate of
0.15% of each Fund's average daily net assets.
Prior to November 8, 1999, the Administrator for the Disciplined Growth,
Diversified Equity, Diversified Small Cap, Equity Income, Growth Equity,
Index, International, Large Company Growth, Small Cap Opportunities, Small Cap
Value, and Small Company Growth Funds was Forum Administrative Services, LLC
("FAdS"). The Funds were charged monthly fees at the annual rate of 0.025% of
each Fund's average daily net assets, with exception to the International and
Small Cap Opportunities Funds which were charged 0.05% of each Fund's average
daily net assets. Prior to March 25, 1999, the Equity Index, Equity Value,
Growth, International Equity, and Small Cap Growth Funds retained WFB as
administrator and Stephens Inc. as co-administrator. For these services, WFB
and Stephens Inc. were entitled to receive monthly fees at the annual rates of
0.03% and 0.04%, respectively, of each Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds. Prior to November 8, 1999,
for the Disciplined Growth, Diversified Equity, Diversified Small Cap, Equity
Income, Growth Equity, Index, International, Large Company Growth, Small Cap
Opportunities, Small Cap Value, and Small Company Growth Funds, Norwest served
as the Trust's transfer agent. For these services, Norwest received a fee at
an annual rate of 0.25% of the average daily net assets attributable to each
class of each Fund's shares, except for the Class A shares of the Large
Company Growth and Diversified Small Cap Funds.
Prior to July 17, 1999, the Trust had entered into a contract on behalf of
the Funds with WFB, whereby WFB provided transfer agency services for the
Equity Index, Equity Value, Growth, International Equity, and Small Cap Growth
Funds, which were charged at an annual rate of 0.14% for Class A, Class B,
Class C, and 0.06% for Class I of the average daily net assets of each Fund.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Funds are charged 0.25% of the
average daily net assets for Class A, Class B, and Class C shares, 0.20% of
the average daily net assets for Class O shares of the Equity Index Fund, and
0.10% of the average daily net assets for Institutional Class shares of the
Diversified Small Cap, Small Cap Growth, Small Cap Opportunities, Small Cap
Value, and Small Company Growth Funds for these services. No fee is charged
for Institutional Class shares of the Disciplined Growth, Diversified Equity,
Equity Income, Equity Value, Growth, Growth Equity, Index, International,
International Equity, and Large Company Growth Funds. Prior to November 8,
1999, shareholder servicing fees were charged at an annual rate of 0.30% of
the average daily net assets of the Class A and Class B shares and 0.25% of
the average daily net assets of the Institutional Class shares of the Growth
Fund. Prior to November 8, 1999, all other Funds and share classes were
charged at the same 0.25% annual rate listed above.
117
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The shareholder servicing fees paid on behalf of the Funds for the period
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Institutional
Fund Class A Class B Class C Class Class O
<S> <C> <C> <C> <C> <C>
DISCIPLINED GROWTH FUND N/A N/A N/A $ 0 N/A
DIVERSIFIED EQUITY FUND $ 87,274 $131,928 $ 3,805 0 N/A
DIVERSIFIED SMALL CAP
FUND 1,397 694 N/A 31,650 N/A
EQUITY INCOME FUND 225,137 169,904 3,802 0 N/A
EQUITY INDEX FUND 819,396 103,488 N/A N/A $ 0
EQUITY VALUE FUND 36,887 69,424 1,119 32,080 N/A
GROWTH FUND 448,553 93,801 N/A 4,587 N/A
GROWTH EQUITY FUND 21,090 23,533 846 0 N/A
INDEX FUND N/A N/A N/A 0 N/A
INTERNATIONAL FUND 4,228 2,701 N/A 0 N/A
INTERNATIONAL EQUITY FUND 149,896 0 0 0 N/A
LARGE COMPANY GROWTH FUND 297,064 296,489 4,545 0 N/A
SMALL CAP GROWTH FUND 182,773 82,606 23,548 44,427 N/A
SMALL CAP OPPORTUNITIES
FUND 8,264 4,516 N/A 81,068 N/A
SMALL CAP VALUE FUND N/A N/A N/A 6,978 N/A
SMALL COMPANY GROWTH FUND N/A N/A N/A 244,477 N/A
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. During the period, WFB provided sub-portfolio
accounting services to the Equity Index and Equity Value Funds. For these
services WFB was entitled to a fixed monthly fee from each Fund plus an annual
fee of 0.0025% of each Fund's average daily net assets. WFB has engaged
Investor's Bank and Trust Company ("IBT") to perform certain sub-portfolio
accounting services for the International Equity Fund. Prior to November 8,
1999, the Trust entered into contracts on behalf of the Equity Index, Equity
Value, Growth, and Small Cap Growth Funds with WFB, whereby WFB was
responsible for providing portfolio accounting services for the Funds.
Pursuant to the contract, WFB was entitled to a monthly base fee from each
Fund of $2,000 plus an annual fee of 0.07% of the first $50 million of each
Fund's average daily net assets, 0.045% of the next $50 million, and 0.02% of
each Fund's average daily net assets in excess of $100 million.
The Trust has entered into contracts on behalf of the Equity Index, Equity
Value, Growth, Small Cap Growth, and Small Cap Opportunities Funds with
Norwest Bank Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest
is responsible for providing custody services for the Funds. Pursuant to the
contracts, Norwest is entitled to a monthly fee for custody services at the
annual rate of 0.02% of the average daily net assets of each Fund. IBT has
been retained to act as custodian for the International Equity Fund. Prior to
November 8, 1999, BGI, a wholly-owned subsidiary of Barclays Global Investors
Inc., acted as custodian to the Equity Index Fund. Prior to November 8, 1999,
the Disciplined Growth, Diversified Equity, Diversified Small Cap, Equity
Income, Growth Equity, Index, International, Large Company Growth, Small Cap
Opportunities, Small Cap Value, and Small Company Growth Funds had Norwest
serve as the custodian. For its custody services, Norwest was entitled to
receive a fee at an annual rate of 0.02% for the first $100 million of average
daily net assets of each Fund, declining to 0.01% of the average daily net
assets of each Fund in excess of $200 million. The Disciplined Growth,
Diversified Equity, Diversified Small Cap, Equity Income, Growth Equity,
Index, International, Large Company Growth, Small Cap Value, and Small Company
Growth Funds were not charged a custody fee at the Gateway level provided that
they invested in Core Trust Portfolios. Prior to November 8, 1999 the Equity
Value, Growth, and Small Cap Growth Funds had the above service performed for
a fee at an annual rate of 0.0167% of the average daily net assets of each
Fund. Prior to June 4, 1999 WFB performed the above services for the Equity
Value, Growth, and Small Cap Growth Funds for the same fees.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 5,237 shares of the Equity Income Fund, 3 shares of the
Equity Index Fund, 14 shares of the Equity Value Fund,
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS STOCK FUNDS
--------------------------------------------------------------------------------
177 shares of the Growth Fund, 7 shares of the International Equity Fund and
5,601 shares of the Small Cap Growth Fund.
Stephens has retained $2,362,288 as sales charges from the proceeds of
Class A shares sold, $0 from the proceeds of Class B shares redeemed and
$76,914 from the proceeds of Class C shares redeemed by the Trust for the
period ended March 31, 2000. A third party financing agent has retained
approximately $3,596,236 from the proceeds of Class B shares redeemed by the
Trust for the period ended March 31, 2000. Wells Fargo Securities Inc., a
subsidiary of WFB, received $1,084,735 as sales charges from the proceeds of
Class A shares sold, $0 from the proceeds of Class B shares redeemed and $0
from the proceeds of Class C shares redeemed by the Trust for the period ended
March 31, 2000. Norwest Bank Minnesota, N.A. received $18,560 as sales charges
from the proceeds of Class A shares sold, $234,350 from the proceeds of
Class B shares redeemed and $1,279 from the proceeds of Class C shares
redeemed by the Trust for the period ended March 31, 2000.
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 a minimum of one year from the
November 5, 1999 closing date of the reorganization (two years for the Equity
Income Fund). Thereafter, the contract remains in effect until such time as
the Board acts to reduce or eliminate such waivers.
<TABLE>
<CAPTION>
Fund Fees Waived by FAdS Fees Waived by WFB Total Fees Waived
<S> <C> <C> <C>
DISCIPLINED GROWTH FUND $ 18,209 $ 2,825 $ 21,034
DIVERSIFIED EQUITY FUND 360,860 1,234,962 1,595,822
DIVERSIFIED SMALL CAP FUND 31,574 55,981 87,555
EQUITY INCOME FUND 50,591 427,013 477,604
EQUITY INDEX FUND 0 568,523 568,523
EQUITY VALUE FUND 0 192,344 192,344
GROWTH FUND 0 606,764 606,764
GROWTH EQUITY FUND 93,055 348,887 441,942
INDEX FUND 233,562 236,418 469,980
INTERNATIONAL FUND 3,789 49,303 53,092
INTERNATIONAL EQUITY FUND 0 167,052 167,052
LARGE COMPANY GROWTH FUND 137,454 651,842 789,296
SMALL CAP GROWTH FUND 0 779,583 779,583
SMALL CAP OPPORTUNITIES FUND 17,968 30,023 47,991
SMALL CAP VALUE FUND 6,285 6,982 13,267
SMALL COMPANY GROWTH FUND 10,602 36,741 47,343
</TABLE>
119
<PAGE>
STOCK FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
10. 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 period ended March 31, 2000, were as follows:
<TABLE>
<CAPTION>
AGGREGATE PURCHASES AND SALES
Fund Purchases at Cost Sales Proceeds
<S> <C> <C>
DISCIPLINED GROWTH FUND $ 22,318,677 $ 26,280,768
DIVERSIFIED EQUITY FUND 473,876,007 478,813,330
DIVERSIFIED SMALL CAP FUND 36,030,853 34,579,711
EQUITY INCOME FUND 129,858,521 84,201,753
EQUITY INDEX FUND 23,247,075 44,219,902
EQUITY VALUE FUND 127,240,460 181,331,774
GROWTH FUND 206,900,457 260,701,992
GROWTH EQUITY FUND 294,632,058 300,821,472
INDEX FUND 48,682,718 52,240,159
INTERNATIONAL FUND 177,406,103 298,146,910
INTERNATIONAL EQUITY FUND 107,202,421 23,361,684
LARGE COMPANY GROWTH FUND 178,122,972 81,067,847
SMALL CAP GROWTH FUND 248,359,758 100,911,217
SMALL CAP OPPORTUNITIES FUND 163,862,804 194,521,855
SMALL CAP VALUE FUND 9,818,723 10,610,728
SMALL COMPANY GROWTH FUND 171,413,270 153,365,555
</TABLE>
120
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C>
COMMON STOCK - 100.91%
APPAREL & ACCESSORY STORES - 2.36%
202,200 ROSS STORES INCORPORATED $ 4,865,438
------------
BUSINESS SERVICES - 13.38%
76,700 COMPUTER ASSOCIATES INTERNATIONAL
INCORPORATED 4,539,681
51,950 MICROSOFT CORPORATION+ 5,519,688
76,400 ORACLE CORPORATION+ 5,963,975
57,000 SUN MICROSYSTEMS INCORPORATED+ 5,341,077
165,850 SUNGARD DATA SYSTEMS INCORPORATED+ 6,260,836
27,625,257
------------
CHEMICALS & ALLIED PRODUCTS - 5.24%
91,280 CHIRON CORPORATION+ 4,552,590
229,990 IVAX CORPORATION+ 6,267,228
10,819,818
------------
COMMUNICATIONS - 2.51%
110,520 BELLSOUTH CORPORATION 5,194,440
------------
DEPOSITORY INSTITUTIONS - 2.57%
60,800 CHASE MANHATTAN CORPORATION 5,301,000
------------
EATING & DRINKING PLACES - 2.17%
252,145 DARDEN RESTAURANTS INCORPORATED 4,491,333
------------
ELECTRIC, GAS & SANITARY SERVICES - 2.53%
55,690 CALPINE CORPORATION+ 5,234,860
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 14.41%
183,400 AMERICAN POWER CONVERSION
CORPORATION+ 7,863,273
69,680 ANALOG DEVICES INCORPORATED+ 5,613,595
66,980 LSI LOGIC CORPORATION+ 4,864,423
33,760 TEXAS INSTRUMENTS INCORPORATED 5,401,600
108,030 VISHAY INTERTECHNOLOGY
INCORPORATED+ 6,009,169
29,752,060
------------
FOOD & KINDRED PRODUCTS - 6.16%
72,500 ANHEUSER-BUSCH COMPANIES
INCORPORATED 4,513,125
164,400 COCA-COLA ENTERPRISES INCORPORATED 3,544,875
76,990 QUAKER OATS COMPANY 4,667,519
12,725,519
------------
GENERAL MERCHANDISE STORES - 2.53%
69,950 TARGET CORPORATION 5,228,763
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 2.49%
214,520 MGM GRAND INCORPORATED 5,148,480
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 10.97%
48,890 APPLE COMPUTER INCORPORATED+ 6,639,873
65,380 APPLIED MATERIALS INCORPORATED+ 6,162,065
49,687 EMC CORPORATION+ 6,210,875
</TABLE>
121
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
82,130 INGERSOLL-RAND COMPANY $ 3,634,253
22,647,066
------------
INSURANCE CARRIERS - 4.95%
77,900 JEFFERSON-PILOT CORPORATION 5,185,219
84,640 UNITED HEALTHCARE CORPORATION 5,046,660
10,231,879
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.30%
130,390 BIOMET INCORPORATED 4,742,936
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.09%
76,490 FANNIE MAE 4,316,904
------------
OIL & GAS EXTRACTION - 2.17%
77,460 KERR-MCGEE CORPORATION 4,473,315
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 2.84%
90,740 AMERADA HESS CORPORATION 5,864,073
------------
PRIMARY METAL INDUSTRIES - 2.46%
101,490 NUCOR CORPORATION 5,074,500
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.28%
92,500 KNIGHT-RIDDER INCORPORATED 4,711,719
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 8.45%
49,440 GOLDMAN SACHS GROUP INCORPORATED 5,197,380
116,550 KNIGHT/TRIMARK GROUP INCORPORATED 5,944,050
77,400 MORGAN STANLEY DEAN WITTER &
COMPANY 6,312,938
17,454,368
------------
TRANSPORTATION EQUIPMENT - 3.76%
90,140 FORD MOTOR COMPANY 4,140,806
72,780 GENERAL DYNAMICS CORPORATION 3,620,805
7,761,611
------------
TRANSPORTATION SERVICES - 2.29%
118,880 EXPEDITORS INTERNATIONAL OF
WASHINGTON INCORPORATED 4,725,480
------------
208,390,819
TOTAL COMMON STOCK (COST $168,899,613)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $168,899,613)* 100.91% $208,390,819
OTHER ASSETS AND LIABILITIES, NET (0.91) (1,877,939)
------- ------------
TOTAL NET ASSETS 100.00% $206,512,880
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $46,881,422
GROSS UNREALIZED DEPRECIATION (7,390,216)
----------
NET UNREALIZED APPRECIATION $39,491,206
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
122
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
COMMON STOCK - 99.80%
BUSINESS SERVICES - 1.82%
223,657 GARTNER GROUP INCORPORATED CLASS B $ 2,977,434
2,617,800 IMS HEALTH INCORPORATED 44,338,987
47,316,421
--------------
CHEMICALS & ALLIED PRODUCTS - 8.79%
1,094,269 E.I. DU PONT DE NEMOURS COMPANY 57,859,473
1,591,200 PFIZER INCORPORATED 58,178,250
824,800 PROCTER & GAMBLE COMPANY 46,395,000
1,491,811 ROHM & HAAS COMPANY 66,572,066
229,004,789
--------------
COMMUNICATIONS - 6.65%
90,000 ALLTEL CORPORATION 5,675,625
1,896,800 AT&T CORPORATION 106,695,000
857,600 GTE CORPORATION 60,889,600
173,260,225
--------------
DEPOSITORY INSTITUTIONS - 4.03%
57,000 BANK OF AMERICA CORPORATION 2,988,936
37,500 CITIGROUP INCORPORATED 2,224,219
510,650 J.P. MORGAN & COMPANY INCORPORATED 67,278,137
1,427,850 U.S. BANCORP 31,234,218
43,500 UNIONBANCAL CORPORATION 1,198,969
104,924,481
--------------
EATING & DRINKING PLACES - 1.74%
1,205,500 MCDONALD'S CORPORATION 45,281,594
--------------
ELECTRIC, GAS & SANITARY SERVICES - 3.74%
97,000 DUKE ENERGY CORPORATION 5,092,500
100,000 EL PASO ENERGY CORPORATION 4,037,500
176,079 PACIFIC GAS & ELECTRIC COMPANY 3,697,659
604,100 PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED 17,896,462
150,000 SOUTHERN COMPANY 3,262,500
1,826,350 TEXAS UTILITIES COMPANY 54,219,766
679,832 WASTE MANAGEMENT INCORPORATED 9,305,201
97,511,588
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 9.21%
1,047,000 EMERSON ELECTRIC COMPANY 55,360,125
575,978 GENERAL ELECTRIC COMPANY 89,384,586
1,566,292 LUCENT TECHNOLOGIES INCORPORATED 95,152,239
239,896,950
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES -
1.72%
1,563,600 DUN & BRADSTREET CORPORATION 44,758,050
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 1.95%
2,036,600 FORTUNE BRANDS INCORPORATED 50,915,000
--------------
</TABLE>
123
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
FOOD & KINDRED PRODUCTS - 4.96%
2,462,640 PEPSICO INCORPORATED $ 85,114,995
2,454,500 SARA LEE CORPORATION 44,181,000
129,295,995
--------------
FOOD STORES - 0.06%
50,400 ALBERTSON'S INCORPORATED 1,562,400
--------------
GENERAL MERCHANDISE STORES - 6.09%
1,138,400 J.C. PENNEY COMPANY INCORPORATED 16,933,700
1,604,250 MAY DEPARTMENT STORES COMPANY 45,721,125
773,830 SEARS ROEBUCK AND COMPANY 23,892,001
965,800 TARGET CORPORATION 72,193,550
158,740,376
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 8.14%
956,200 HEWLETT-PACKARD COMPANY 126,756,263
723,000 IBM CORPORATION 85,314,000
212,070,263
--------------
INSURANCE CARRIERS - 7.13%
680,408 AEGON NV ARS 54,815,369
786,750 AMERICAN GENERAL CORPORATION 44,156,344
55,000 CIGNA CORPORATION 4,166,250
60,000 HARTFORD FINANCIAL SERVICES GROUP 3,165,000
2,330,000 ST. PAUL COMPANIES INCORPORATED 79,511,250
185,814,213
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 4.75%
38,000 BAXTER INTERNATIONAL INCORPORATED 2,382,124
604,050 EASTMAN KODAK COMPANY 32,807,466
45,000 EATON CORPORATION 3,510,000
1,120,500 HONEYWELL INTERNATIONAL INCORPORATED 59,036,344
1,000,000 XEROX CORPORATION 26,000,000
123,735,934
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 3.65%
1,907,294 TYCO INTERNATIONAL LIMITED 95,126,288
--------------
MOTION PICTURES - 1.59%
1,000,000 WALT DISNEY COMPANY 41,375,000
--------------
NONDEPOSITORY CREDIT INSTITUTIONS - 2.55%
412,300 AMERICAN EXPRESS COMPANY 61,406,931
135,000 HOUSEHOLD INTERNATIONAL INCORPORATED 5,037,188
66,444,119
--------------
OIL & GAS EXTRACTION - 2.08%
585,100 SCHLUMBERGER LIMITED 44,760,150
113,275 TRANSOCEAN SEDCO FOREX INCORPORATED 5,812,423
142,000 USX-MARATHON GROUP 3,700,875
54,273,448
--------------
</TABLE>
124
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INCOME EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
PAPER & ALLIED PRODUCTS - 2.10%
90,000 KIMBERLY-CLARK CORPORATION $ 5,040,000
564,458 MINNESOTA MINING AND MANUFACTURING
COMPANY 49,989,812
55,029,812
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.75%
580,200 ATLANTIC RICHFIELD COMPANY 49,317,000
458,750 CHEVRON CORPORATION 42,405,703
110,000 CONOCO INCORPORATED CLASS A 2,708,750
92,131 CONOCO INCORPORATED CLASS B 2,360,857
944,935 EXXON MOBIL CORPORATION 73,527,755
486,600 ROYAL DUTCH PETROLEUM COMPANY - NY
SHARES 28,009,913
65,000 TEXACO INCORPORATED 3,485,625
201,815,603
--------------
PHARMACEUTICAL PREPARATIONS - 4.68%
1,292,800 AMERICAN HOME PRODUCTS CORPORATION 69,326,400
844,800 MERCK & COMPANY INCORPORATED 52,483,200
121,809,600
--------------
TOBACCO PRODUCTS - 1.04%
1,286,550 PHILIP MORRIS COMPANY INCORPORATED 27,178,369
--------------
TRANSPORTATION EQUIPMENT - 1.90%
100,000 DANA CORPORATION 2,818,750
738,600 UNITED TECHNOLOGIES CORPORATION 46,670,288
49,489,038
--------------
WHOLESALE TRADE - DURABLE GOODS - 1.67%
620,750 JOHNSON & JOHNSON 43,491,297
--------------
2,600,120,853
TOTAL COMMON STOCK (COST $1,741,888,223)
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.04%
REPURCHASE AGREEMENTS - 0.04%
$511,192 BEAR STEARNS & COMPANY
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.20% 04/03/00 511,192
443,166 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.22 04/03/00 443,166
954,358
TOTAL SHORT-TERM INSTRUMENTS (COST
$954,358)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,742,842,581)* 99.84% $2,601,075,211
OTHER ASSETS AND LIABILITIES, NET 0.16 4,074,978
------- --------------
TOTAL NET ASSETS 100.00% $2,605,150,189
------- --------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $1,015,018,211
GROSS UNREALIZED DEPRECIATION (156,785,581)
-------------
NET UNREALIZED APPRECIATION $ 858,232,630
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
125
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
COMMON STOCK - 97.83%
AGRICULTURAL PRODUCTION - CROPS - 0.03%
46,500 NABISCO GROUP HOLDINGS CORPORATION $ 558,000
--------------
AMUSEMENT & RECREATION SERVICES - 0.68%
18,300 HARRAH'S ENTERTAINMENT INCORPORATED+ 339,694
295,100 WALT DISNEY COMPANY 12,209,762
12,549,456
--------------
APPAREL & ACCESSORY STORES - 0.48%
121,400 GAP INCORPORATED 6,047,237
30,600 LIMITED INCORPORATED 1,289,025
19,200 NORDSTROM INCORPORATED 566,400
44,200 TJX COMPANIES INCORPORATED 980,688
8,883,350
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.04%
8,400 LIZ CLAIBORNE INCORPORATED 384,825
16,800 V.F. CORPORATION 404,250
789,075
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.03%
19,700 AUTOZONE INCORPORATED+ 546,675
7,500 PEP BOYS - MANNY, MOE & JACK 44,531
591,206
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
9,200 RYDER SYSTEM INCORPORATED 208,725
--------------
BUILDING CONSTRUCTION -- GENERAL CONTRACTORS & OPERATIVE BUILDERS -
0.03%
8,500 CENTEX CORPORATION 202,406
6,800 KAUFMAN & BROAD HOME CORPORATION 145,775
6,200 PULTE CORPORATION 129,425
477,606
--------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS -
1.32%
328,300 HOME DEPOT INCORPORATED 21,175,350
54,500 LOWE'S COMPANIES INCORPORATED 3,181,438
24,356,788
--------------
BUSINESS SERVICES - 11.16%
48,800 3COM CORPORATION+ 2,714,500
16,900 ADOBE SYSTEMS INCORPORATED 1,881,181
325,400 AMERICA ONLINE INCORPORATED+ 21,883,150
8,800 AUTODESK INCORPORATED 400,400
89,900 AUTOMATIC DATA PROCESSING INCORPORATED 4,337,675
34,800 BMC SOFTWARE INCORPORATED+ 1,718,250
26,000 CABLETRON SYSTEMS INCORPORATED+ 762,125
100,700 CENDANT CORPORATION+ 1,862,950
20,700 CERIDIAN CORPORATION+ 397,181
25,500 CITRIX SYSTEMS INCORPORATED+ 1,689,375
77,300 COMPUTER ASSOCIATES INTERNATIONAL
INCORPORATED 4,575,194
</TABLE>
126
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
BUSINESS SERVICES (continued)
23,900 COMPUTER SCIENCES CORPORATION+ $ 1,891,088
51,400 COMPUWARE CORPORATION+ 1,082,613
67,200 ELECTRONIC DATA SYSTEMS CORPORATION 4,313,400
20,200 EQUIFAX INCORPORATED 510,050
59,700 FIRST DATA CORPORATION 2,641,725
44,000 IMS HEALTH INCORPORATED 745,250
40,000 INTERPUBLIC GROUP OF COMPANIES
INCORPORATED 1,890,000
742,200 MICROSOFT CORPORATION+ 78,858,750
13,800 NCR CORPORATION+ 553,725
46,600 NOVELL INCORPORATED+ 1,333,925
25,400 OMNICOM GROUP INCORPORATED 2,373,313
402,300 ORACLE CORPORATION+ 31,404,543
39,300 PARAMETRIC TECHNOLOGY COMPANY+ 827,756
38,300 PEOPLESOFT INCORPORATED+ 766,000
3,800 SHARED MEDICAL SYSTEMS CORPORATION 197,125
225,100 SUN MICROSYSTEMS INCORPORATED+ 21,092,567
24,400 UST INCORPORATED 381,250
75,100 YAHOO! INCORPORATED+ 12,870,263
9,900 YOUNG & RUBICAM INCORPORATED 465,300
206,420,624
--------------
CHEMICALS & ALLIED PRODUCTS - 8.77%
219,300 ABBOTT LABORATORIES 7,716,618
32,700 AIR PRODUCTS AND CHEMICALS INCORPORATED 929,906
7,900 ALBERTO CULVER COMPANY 188,119
18,800 ALLERGAN INCORPORATED 940,000
14,600 ALZA CORPORATION+ 548,413
34,600 AVON PRODUCTS INCORPORATED 1,005,563
41,500 BAXTER INTERNATIONAL INCORPORATED 2,601,531
21,400 BIOGEN INCORPORATED+ 1,495,325
282,900 BRISTOL-MYERS SQUIBB COMPANY 16,337,474
33,800 CLOROX COMPANY 1,098,500
83,100 COLGATE-PALMOLIVE COMPANY 4,684,763
31,200 DOW CHEMICAL COMPANY 3,556,800
149,000 E.I. DU PONT DE NEMOURS & COMPANY 7,878,374
11,200 EASTMAN CHEMICAL COMPANY 509,600
18,500 ECOLAB INCORPORATED 678,719
155,500 ELI LILLY & COMPANY 9,796,500
4,400 FMC CORPORATION+ 248,600
15,700 GOODRICH (B.F.) COMPANY 450,394
8,200 GREAT LAKES CHEMICAL CORPORATION 278,800
15,000 INTERNATIONAL FLAVORS & FRAGRANCES
INCORPORATED 525,938
198,400 JOHNSON & JOHNSON 13,900,400
9,800 MALLINCKRODT INCORPORATED 281,750
333,300 MERCK & COMPANY INCORPORATED 20,706,263
90,400 MONSANTO COMPANY+ 4,655,600
552,100 PFIZER INCORPORATED 20,186,156
73,900 PHARMACIA & UPJOHN INCORPORATED 4,378,575
24,800 PPG INDUSTRIES INCORPORATED 1,297,350
22,700 PRAXAIR INCORPORATED 944,888
</TABLE>
127
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
187,700 PROCTER & GAMBLE COMPANY $ 10,558,125
31,200 ROHM & HAAS COMPANY 1,392,300
209,500 SCHERING-PLOUGH CORPORATION 7,699,124
23,700 SHERWIN-WILLIAMS COMPANY 519,919
14,400 SIGMA ALDRICH 387,000
19,100 UNION CARBIDE CORPORATION 1,113,769
10,300 W.R. GRACE & COMPANY+ 130,681
122,500 WARNER-LAMBERT COMPANY 11,943,750
13,700 WATSON PHARMACEUTICALS INCORPORATED+ 543,719
162,109,306
--------------
COAL MINING - 0.00%
2,485 ARCH COAL INCORPORATED 17,395
--------------
COMMUNICATIONS - 8.63%
44,700 ALLTEL CORPORATION 2,818,893
455,700 AT&T CORPORATION 25,633,125
221,400 BELL ATLANTIC CORPORATION 13,533,075
268,400 BELLSOUTH CORPORATION 12,614,800
108,800 CBS CORPORATION+ 6,160,800
19,900 CENTURYTEL INCORPORATED 738,788
48,300 CLEAR CHANNEL COMMUNICATIONS
INCORPORATED+ 3,335,719
132,200 COMCAST CORPORATIONCLASS A+ 5,734,175
111,200 GLOBAL CROSSING LIMITED+ 4,552,250
138,600 GTE CORPORATION 9,840,600
404,800 MCI WORLDCOM INCORPORATED+ 18,342,500
87,300 MEDIAONE GROUP INCORPORATED+ 7,071,300
52,000 NEXTEL COMMUNICATIONS INCORPORATED+ 7,709,000
486,500 SBC COMMUNICATIONS INCORPORATED 20,433,000
124,300 SPRINT CORPORATION (FON GROUP) 7,830,900
122,900 SPRINT CORPORATION (PCS GROUP)+ 8,026,906
72,000 US WEST INCORPORATED 5,229,000
159,604,831
--------------
DEPOSITORY INSTITUTIONS - 4.92%
55,800 AMSOUTH BANCORP 833,512
243,500 BANK OF AMERICA CORPORATION 12,768,531
105,000 BANK OF NEW YORK COMPANY INCORPORATED 4,364,062
163,600 BANK ONE CORPORATION 5,623,750
49,500 BB&T CORPORATION 1,389,095
117,700 CHASE MANHATTAN CORPORATION 10,261,970
22,300 COMERICA INCORPORATED 933,813
44,100 FIFTH THIRD BANCORP 2,778,300
140,900 FIRST UNION CORPORATION 5,248,525
139,800 FIRSTAR CORPORATION 3,206,663
130,600 FLEETBOSTON FINANCIAL CORPORATION 4,766,901
23,000 GOLDEN WEST FINANCIAL CORPORATION 717,313
32,600 HUNTINGTON BANCSHARES INCORPORATED 729,425
24,700 J.P. MORGAN & COMPANY INCORPORATED 3,254,225
63,800 KEYCORP 1,212,200
</TABLE>
128
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
DEPOSITORY INSTITUTIONS (continued)
72,500 MELLON FINANCIAL CORPORATION $ 2,138,750
87,900 NATIONAL CITY CORPORATION 1,812,938
31,700 NORTHERN TRUST CORPORATION 2,141,731
17,400 OLD KENT FINANCIAL CORPORATION 562,238
41,900 PNC FINANCIAL SERVICES GROUP 1,888,119
31,200 REGIONS FINANCIAL CORPORATION 711,750
23,900 SOUTHTRUST CORPORATION 607,956
22,800 STATE STREET CORPORATION 2,208,750
25,000 SUMMIT BANCORP 656,250
45,600 SUNTRUST BANKS INCORPORATED 2,633,400
39,900 SYNOVUS FINANCIAL CORPORATION 753,113
107,500 U.S. BANCORP 2,351,563
20,100 UNION PLANTERS CORPORATION 619,331
28,900 WACHOVIA CORPORATION 1,952,556
82,300 WASHINGTON MUTUAL INCORPORATED 2,180,950
235,400 WELLS FARGO COMPANY# 9,636,686
90,944,366
--------------
EATING & DRINKING PLACES - 0.47%
18,300 DARDEN RESTAURANTS INCORPORATED 325,969
193,100 MCDONALD'S CORPORATION 7,253,318
21,500 TRICON GLOBAL RESTAURANTS INCORPORATED+ 667,844
17,000 WENDY'S INTERNATIONAL INCORPORATED 343,188
8,590,319
--------------
ELECTRIC, GAS & SANITARY SERVICES - 2.21%
29,500 AES CORPORATION+ 2,323,124
26,900 ALLIED WASTE INDUSTRIES INCORPORATED+ 176,531
19,600 AMEREN CORPORATION 606,375
27,700 AMERICAN ELECTRIC POWER COMPANY 825,806
22,700 CAROLINA POWER & LIGHT COMPANY 736,331
30,300 CENTRAL & SOUTHWEST CORPORATION 516,994
22,700 CINERGY CORPORATION 488,050
16,500 CMS ENERGY CORPORATION 299,063
11,600 COLUMBIA ENERGY GROUP 687,300
31,500 CONSOLIDATED EDISON INCORPORATED 913,500
21,300 CONSTELLATION ENERGY GROUP 678,938
34,000 DOMINION RESOURCES INCORPORATED 1,306,874
20,700 DTE ENERGY COMPANY 600,300
52,200 DUKE ENERGY CORPORATION 2,740,500
3,800 EASTERN ENTERPRISES 227,525
49,500 EDISON INTERNATIONAL 819,844
32,600 EL PASO ENERGY CORPORATION 1,316,225
102,100 ENRON CORPORATION 7,644,737
35,200 ENTERGY CORPORATION 710,600
33,200 FIRSTENERGY CORPORATION 684,750
14,000 FLORIDA PROGRESS CORPORATION 642,250
25,500 FPL CORPORATION INCORPORATED 1,174,593
17,600 GPU INCORPORATED 481,800
16,400 NEW CENTURY ENERGIES INCORPORATED 493,025
</TABLE>
129
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
ELECTRIC, GAS & SANITARY SERVICES (continued)
26,700 NIAGARA MOHAWK HOLDINGS INCORPORATED+ $ 360,450
6,800 NICOR INCORPORATED 223,975
22,100 NORTHERN STATES POWER COMPANY 439,238
4,400 ONEOK INCORPORATED 110,000
54,700 PACIFIC GAS & ELECTRIC COMPANY 1,148,700
26,500 PECO ENERGY COMPANY 977,188
5,100 PEOPLE'S ENERGY CORPORATION 139,931
12,000 PINNACLE WEST CAPITAL CORPORATION 338,250
20,500 PPL CORPORATION 429,219
31,100 PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED 921,338
42,200 RELIANT ENERGY INCORPORATED 989,063
29,200 SEMPRA ENERGY 489,100
96,000 SOUTHERN COMPANY 2,088,000
39,400 TEXAS UTILITIES COMPANY 1,169,688
88,400 WASTE MANAGEMENT INCORPORATED 1,209,975
62,000 WILLIAMS COMPANIES INCORPORATED 2,724,125
40,853,275
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 15.00%
14,800 ADAPTEC INCORPORATED+ 571,650
42,900 ADC TELECOMMUNICATIONS INCORPORATED+ 2,311,238
20,900 ADVANCED MICRO DEVICES INCORPORATED+ 1,192,606
49,900 ANALOG DEVICES INCORPORATED+ 4,020,069
11,500 ANDREW CORPORATION+ 263,063
30,600 CONEXANT SYSTEMS INCORPORATED+ 2,172,600
13,400 COOPER INDUSTRIES INCORPORATED 469,000
10,500 EATON CORPORATION 819,000
61,500 EMERSON ELECTRIC COMPANY 3,251,813
467,900 GENERAL ELECTRIC COMPANY 72,612,230
476,400 INTEL CORPORATION 62,855,023
42,400 LSI LOGIC CORPORATION+ 3,079,300
454,600 LUCENT TECHNOLOGIES INCORPORATED 27,616,950
12,000 MAYTAG CORPORATION 397,500
38,600 MICRON TECHNOLOGY INCORPORATED+ 4,863,600
28,000 MOLEX INCORPORATED 1,645,000
101,100 MOTOROLA INCORPORATED 14,394,113
24,500 NATIONAL SEMICONDUCTOR CORPORATION+ 1,485,313
5,800 NATIONAL SERVICE INDUSTRIES 122,163
43,500 NETWORK APPLIANCE INCORPORATED+ 3,599,625
203,300 NORTEL NETWORKS CORPORATION 25,615,812
105,200 QUALCOMM INCORPORATED+ 15,707,675
22,800 SCIENTIFIC-ATLANTA INCORPORATED 1,446,375
57,400 TELLABS INCORPORATED+ 3,615,305
115,900 TEXAS INSTRUMENTS INCORPORATED 18,544,000
8,200 THOMAS & BETTS CORPORATION 231,650
10,600 WHIRLPOOL CORPORATION 621,425
45,800 XILINX INCORPORATED+ 3,792,813
277,316,911
--------------
</TABLE>
130
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES -
0.18%
22,900 DUN & BRADSTREET CORPORATION $ 655,512
35,200 PAYCHEX INCORPORATED 1,843,600
6,900 PERKINELMER INCORPORATED 458,850
16,300 QUINTILES TRANSNATIONAL CORPORATION+ 278,119
3,236,081
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.65%
4,300 BALL CORPORATION 148,619
9,400 CRANE COMPANY 221,488
18,400 CROWN CORK & SEAL COMPANY INCORPORATED 294,400
45,000 EASTMAN KODAK COMPANY 2,444,062
23,400 FORTUNE BRANDS INCORPORATED 585,000
153,000 GILLETTE COMPANY 5,766,187
63,700 MASCO CORPORATION 1,305,850
16,000 PARKER-HANNIFIN CORPORATION 661,000
8,300 SNAP-ON INCORPORATED 217,356
12,700 STANLEY WORKS 334,963
11,978,925
--------------
FOOD & KINDRED PRODUCTS - 2.97%
5,300 ADOLPH COORS COMPANY 253,406
66,400 ANHEUSER-BUSCH COMPANIES INCORPORATED 4,133,400
86,600 ARCHER DANIELS MIDLAND COMPANY 898,475
39,700 BESTFOODS INCORPORATED 1,858,456
60,800 CAMPBELL SOUP COMPANY 1,869,600
352,200 COCA-COLA COMPANY 16,531,387
60,700 COCA-COLA ENTERPRISES INCORPORATED 1,308,844
70,200 CONAGRA INCORPORATED 1,272,375
43,000 GENERAL MILLS INCORPORATED 1,556,063
50,600 HEINZ (H.J.) COMPANY 1,764,675
15,200 HERCULES INCORPORATED 245,100
19,800 HERSHEY FOODS CORPORATION 965,250
57,900 KELLOGG COMPANY 1,483,688
207,600 PEPSICO INCORPORATED 7,175,174
19,100 QUAKER OATS COMPANY 1,157,938
43,100 RALSTON-RALSTON PURINA GROUP 1,179,863
129,600 SARA LEE CORPORATION 2,332,800
61,900 THE SEAGRAM COMPANY LIMITED 3,683,050
81,500 UNILEVER N.V. NY SHARES 3,922,187
16,500 WRIGLEY (WILLIAM) JR. COMPANY 1,267,406
54,859,137
--------------
FOOD STORES - 0.24%
60,400 ALBERTSON'S INCORPORATED 1,872,400
5,500 GREAT ATLANTIC & PACIFIC TEA COMPANY 107,250
118,900 KROGER COMPANY+ 2,088,181
20,900 WINN-DIXIE STORES INCORPORATED 406,244
4,474,075
--------------
</TABLE>
131
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
FURNITURE & FIXTURES - 0.03%
28,000 LEGGETT & PLATT INCORPORATED $ 602,000
--------------
GENERAL MERCHANDISE STORES - 2.86%
15,800 CONSOLIDATED STORES CORPORATION+ 179,725
63,400 COSTCO WHOLESALE CORPORATION+ 3,332,462
15,000 DILLARDS INCORPORATED 246,563
37,700 DOLLAR GENERAL CORPORATION 1,013,188
30,000 FEDERATED DEPARTMENT STORES
INCORPORATED+ 1,252,500
10,200 HARCOURT GENERAL INCORPORATED 379,950
37,100 J.C. PENNEY COMPANY INCORPORATED 551,863
69,400 KMART CORPORATION+ 672,313
23,200 KOHL'S CORPORATION+ 2,378,000
47,400 MAY DEPARTMENT STORES COMPANY 1,350,900
53,900 SEARS ROEBUCK & COMPANY 1,664,162
62,500 TARGET CORPORATION 4,671,874
635,100 WAL-MART STORES INCORPORATED 35,248,050
52,941,550
--------------
HEALTH SERVICES - 0.19%
80,400 COLUMBIA HCA HEALTHCARE CORPORATION 2,035,125
55,100 HEALTHSOUTH CORPORATION+ 306,494
14,700 MANOR CARE INCORPORATED+ 198,450
44,400 TENET HEALTHCARE CORPORATION 1,021,200
3,561,269
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION -- CONTRACTORS -
0.16%
10,900 FLUOR CORPORATION 337,900
63,000 HALLIBURTON COMPANY 2,583,000
2,920,900
--------------
HOLDING & OTHER INVESTMENT OFFICES - 0.03%
46,700 CONSECO INCORPORATED 534,131
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.23%
29,200 BEST BUY COMPANY INCORPORATED+ 2,511,200
29,000 CIRCUIT CITY STORES 1,765,375
4,276,575
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.11%
52,600 HILTON HOTELS CORPORATION 407,650
35,400 MARRIOTT INTERNATIONAL CLASS A 1,115,100
27,500 MIRAGE RESORTS INCORPORATED+ 532,813
2,055,563
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.87%
23,100 APPLE COMPUTER INCORPORATED+ 3,137,269
109,100 APPLIED MATERIALS INCORPORATED+ 10,282,675
47,000 BAKER HUGHES INCORPORATED 1,421,750
12,400 BLACK & DECKER CORPORATION 465,775
3,200 BRIGGS & STRATTON CORPORATION 131,600
13,100 BRUNSWICK CORPORATION 248,081
</TABLE>
132
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
50,700 CATERPILLAR INCORPORATED $ 1,999,481
5,300 CINCINNATI MILACRON INCORPORATED 76,519
975,800 CISCO SYSTEMS INCORPORATED+ 75,441,537
241,600 COMPAQ COMPUTER CORPORATION 6,432,600
10,900 COMVERSE TECHNOLOGY INCORPORATED+ 2,060,100
5,900 CUMMINS ENGINE COMPANY INCORPORATED 221,619
33,400 DEERE & COMPANY 1,269,200
365,800 DELL COMPUTER CORPORATION+ 19,730,337
29,100 DOVER CORPORATION 1,393,163
145,100 EMC CORPORATION+ 18,137,500
45,100 GATEWAY INCORPORATED+ 2,390,300
143,300 HEWLETT-PACKARD COMPANY 18,996,205
257,100 IBM CORPORATION 30,337,800
23,300 INGERSOLL-RAND COMPANY 1,031,025
18,200 LEXMARK INTERNATIONAL GROUP
INCORPORATED+ 1,924,650
8,500 MCDERMOTT INTERNATIONAL INCORPORATED 78,094
17,700 PALL CORPORATION 397,144
37,800 PITNEY BOWES INCORPORATED 1,689,188
30,700 SEAGATE TECHNOLOGY INCORPORATED+ 1,849,675
26,200 SILICON GRAPHICS INCORPORATED+ 276,738
84,500 SOLECTRON CORPORATION+ 3,385,281
27,600 TANDY CORPORATION 1,400,700
8,800 TIMKEN COMPANY 143,000
241,200 TYCO INTERNATIONAL LIMITED 12,029,850
44,200 UNISYS CORPORATION+ 1,127,100
219,505,956
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.30%
36,600 AON CORPORATION 1,180,350
23,900 HUMANA INCORPORATED+ 174,769
38,100 MARSH & MCLENNAN COMPANIES INCORPORATED 4,202,906
5,558,025
--------------
INSURANCE CARRIERS - 4.20%
20,400 AETNA LIFE & CASUALTY INCORPORATED 1,136,025
38,000 AFLAC INCORPORATED 1,731,375
114,800 ALLSTATE CORPORATION 2,733,674
35,200 AMERICAN GENERAL CORPORATION 1,975,600
220,700 AMERICAN INTERNATIONAL GROUP
INCORPORATED 24,166,651
25,100 CHUBB CORPORATION 1,695,819
24,100 CIGNA CORPORATION 1,825,575
23,400 CINCINNATI FINANCIAL CORPORATION 880,425
480,800 CITIGROUP INCORPORATED 28,517,450
31,600 HARTFORD FINANCIAL SERVICES GROUP 1,666,900
15,000 JEFFERSON-PILOT CORPORATION 998,438
27,900 LINCOLN NATIONAL CORPORATION 934,650
15,100 LOEWS CORPORATION 755,000
14,200 MBIA INCORPORATED 739,288
15,100 MGIC INVESTMENT CORPORATION 658,738
10,500 PROGRESSIVE CORPORATION 798,656
</TABLE>
133
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
INSURANCE CARRIERS (continued)
20,300 PROVIDIAN FINANCIAL CORPORATION $ 1,758,488
18,500 SAFECO CORPORATION 491,406
32,400 ST. PAUL COMPANIES INCORPORATED 1,105,650
18,800 TORCHMARK CORPORATION 434,750
24,200 UNITED HEALTHCARE CORPORATION 1,442,925
34,300 UNUMPROVIDENT CORPORATION 583,100
9,100 WELLPOINT HEALTH NETWORKS INCORPORATED+ 635,863
77,666,446
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.01%
15,200 LOUISIANA-PACIFIC CORPORATION 210,900
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 1.87%
7,300 BARD (C.R.) INCORPORATED 282,419
8,200 BAUSCH & LOMB INCORPORATED 427,938
35,800 BECTON, DICKINSON AND COMPANY 941,988
16,100 BIOMET INCORPORATED 585,638
59,100 BOSTON SCIENTIFIC CORPORATION+ 1,259,569
20,300 DANAHER CORPORATION 1,035,300
43,900 GUIDANT CORPORATION+ 2,581,869
112,900 HONEYWELL INCORPORATED 5,948,419
12,100 JOHNSON CONTROLS INCORPORATED 654,156
26,100 KLA-TENCOR CORPORATION+ 2,198,924
170,300 MEDTRONIC INCORPORATED 8,759,805
6,500 MILLIPORE CORPORATION 366,844
29,400 PE CORP -- PE BIOSYSTEMS GROUP 2,837,100
6,400 POLAROID CORPORATION 152,000
48,300 RAYTHEON COMPANY CLASS B 857,325
12,000 ST. JUDE MEDICAL INCORPORATED+ 309,750
6,800 TEKTRONIX INCORPORATED 380,800
24,400 TERADYNE INCORPORATED+ 2,006,900
22,600 THERMO ELECTRON CORPORATION+ 460,475
94,800 XEROX CORPORATION 2,464,800
34,512,019
--------------
METAL MINING - 0.15%
56,200 BARRICK GOLD CORPORATION 881,638
23,300 FREEPORT MCMORAN INCORPORATED CLASS B+ 281,056
37,100 HOMESTAKE MINING COMPANY 222,600
23,900 NEWMONT MINING CORPORATION 536,256
11,600 PHELPS DODGE CORPORATION 551,000
46,400 PLACER DOME INCORPORATED 377,000
2,849,550
--------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.04%
14,300 VULCAN MATERIALS COMPANY 655,119
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.09%
25,000 HASBRO INCORPORATED 412,500
12,500 ITT INDUSTRIES INCORPORATED 388,281
</TABLE>
134
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
MISCELLANEOUS MANUFACTURING INDUSTRIES (continued)
4,800 JOSTENS INCORPORATED $ 117,000
60,000 MATTEL INCORPORATED 626,250
1,200 NACCO INDUSTRIES INCORPORATED 57,525
1,601,556
--------------
MISCELLANEOUS RETAIL - 0.50%
20,000 BED BATH & BEYOND INCORPORATED+ 787,500
55,900 CVS CORPORATION 2,099,744
5,600 LONGS DRUG STORES INCORPORATED 127,400
47,000 OFFICE DEPOT INCORPORATED+ 543,438
36,900 RITE AID CORPORATION 202,950
67,000 STAPLES INCORPORATED+ 1,340,000
34,300 TOYS 'R' US INCORPORATED+ 508,069
143,500 WALGREEN COMPANY 3,695,124
9,304,225
--------------
MOTION PICTURES - 0.06%
31,000 UNICOM CORPORATION 1,131,500
--------------
NONDEPOSITORY CREDIT INSTITUTIONS - 1.75%
63,800 AMERICAN EXPRESS COMPANY 9,502,212
103,900 ASSOCIATES FIRST CAPITAL CORPORATION 2,227,356
28,100 CAPITAL ONE FINANCIAL CORPORATION 1,347,044
16,200 COUNTRYWIDE CREDIT INDUSTRIES
INCORPORATED 441,450
146,100 FANNIE MAE 8,245,519
99,200 FREDDIE MAC 4,383,400
67,100 HOUSEHOLD INTERNATIONAL INCORPORATED 2,503,669
114,300 MBNA CORPORATION 2,914,650
22,700 SLM HOLDING CORPORATION 756,194
32,321,494
--------------
OIL & GAS EXTRACTION - 0.66%
18,200 ANADARKO PETROLEUM CORPORATION 704,113
16,200 APACHE CORPORATION 805,950
31,000 BURLINGTON RESOURCES INCORPORATED 1,147,000
52,400 OCCIDENTAL PETROLEUM CORPORATION 1,087,300
13,200 ROWAN COMPANIES INCORPORATED+ 388,575
78,400 SCHLUMBERGER LIMITED 5,997,600
29,800 TRANSOCEAN SEDCO FOREX INCORPORATED+ 1,529,112
35,900 UNION PACIFIC RESOURCES GROUP
INCORPORATED 520,550
12,180,200
--------------
PAPER & ALLIED PRODUCTS - 1.09%
16,100 AVERY DENNISON CORPORATION 983,106
7,400 BEMIS COMPANY INCORPORATED 272,875
8,100 BOISE CASCADE CORPORATION 281,475
13,700 CHAMPION INTERNATIONAL CORPORATION 729,525
30,800 FORT JAMES CORPORATION 677,600
24,400 GEORGIA-PACIFIC GROUP 965,325
21,300 IKON OFFICE SOLUTIONS INCORPORATED 131,794
</TABLE>
135
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
PAPER & ALLIED PRODUCTS (continued)
59,000 INTERNATIONAL PAPER COMPANY $ 2,522,250
79,200 KIMBERLY-CLARK CORPORATION 4,435,200
14,700 MEAD CORPORATION 513,581
56,900 MINNESOTA MINING AND MANUFACTURING
COMPANY 5,039,206
24,500 PACTIV CORPORATION+ 214,375
7,900 TEMPLE-INLAND INCORPORATED 393,519
14,300 WESTVACO CORPORATION 477,263
33,500 WEYERHAEUSER COMPANY 1,909,500
16,000 WILLAMETTE INDUSTRIES INCORPORATED 642,000
20,188,594
--------------
PERSONAL SERVICES - 0.03%
14,000 H&R BLOCK INCORPORATED 626,500
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.50%
12,900 AMERADA HESS CORPORATION 833,663
10,100 ASHLAND INCORPORATED 337,719
46,000 ATLANTIC RICHFIELD COMPANY 3,910,000
93,600 CHEVRON CORPORATION 8,652,150
30,400 COASTAL CORPORATION 1,398,400
89,300 CONOCO INCORPORATED CLASS B 2,288,313
492,500 EXXON MOBIL CORPORATION 38,322,655
13,600 KERR-MCGEE CORPORATION 785,400
36,100 PHILLIPS PETROLEUM COMPANY 1,669,625
305,800 ROYAL DUTCH PETROLEUM COMPANY - NY
SHARES 17,602,612
12,800 SUNOCO INCORPORATED 350,400
78,900 TEXACO INCORPORATED 4,231,012
20,600 TOSCO CORPORATION 627,013
34,600 UNOCAL CORPORATION 1,029,350
44,300 USX-MARATHON GROUP INCORPORATED 1,154,569
83,192,881
--------------
PHARMACEUTICAL PREPARATIONS - 1.02%
186,200 AMERICAN HOME PRODUCTS CORPORATION 9,984,975
145,700 AMGEN INCORPORATED+ 8,942,338
18,927,313
--------------
PRIMARY METAL INDUSTRIES - 0.41%
31,200 ALCAN ALUMINUM LIMITED 1,056,900
52,500 ALCOA INCORPORATED 3,688,124
13,300 ALLEGHENY TECHNOLOGIES INCORPORATED 266,831
18,700 BETHLEHEM STEEL CORPORATION+ 112,200
17,900 ENGELHARD CORPORATION 270,738
27,400 INCO LIMITED 501,763
12,400 NUCOR CORPORATION 620,000
9,000 REYNOLDS METALS COMPANY 601,875
12,600 USX-U.S. STEEL GROUP INCORPORATED 315,000
12,700 WORTHINGTON INDUSTRIES INCORPORATED 157,163
7,590,594
--------------
</TABLE>
136
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.80%
9,200 AMERICAN GREETINGS CORPORATION $ 167,900
10,500 DELUXE CORPORATION 278,250
12,800 DOW JONES & COMPANY INCORPORATED 919,200
39,700 GANNETT COMPANY INCORPORATED 2,793,887
11,900 KNIGHT-RIDDER INCORPORATED 606,156
28,000 MCGRAW-HILL COMPANIES INCORPORATED 1,274,000
7,300 MEREDITH CORPORATION 202,119
24,400 NEW YORK TIMES COMPANY 1,047,675
18,000 R.R. DONNELLEY & SONS COMPANY 376,875
183,400 TIME WARNER INCORPORATED 18,340,000
8,500 TIMES MIRROR COMPANY 789,969
33,900 TRIBUNE COMPANY 1,239,469
99,400 VIACOM INCORPORATED CLASS B+ 5,243,350
33,278,850
--------------
RAILROAD TRANSPORTATION - 0.31%
65,200 BURLINGTON NORTHERN SANTA FE CORPORATION 1,442,550
31,100 CSX CORPORATION 730,850
15,800 KANSAS CITY SOUTHERN INDUSTRIES
INCORPORATED 1,357,813
54,400 NORFOLK SOUTHERN CORPORATION 782,000
35,400 UNION PACIFIC CORPORATION 1,385,025
5,698,238
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.35%
5,700 ARMSTRONG WORLD INDUSTRIES 101,888
10,800 COOPER TIRE AND RUBBER COMPANY 135,675
22,300 GOODYEAR TIRE & RUBBER COMPANY 519,869
42,900 ILLINOIS TOOL WORKS INCORPORATED 2,370,224
40,200 NEWELL RUBBERMAID INCORPORATED 997,463
39,400 NIKE INCORPORATED CLASS B 1,561,224
8,000 REEBOK INTERNATIONAL LIMITED+ 74,000
11,900 SEALED AIR CORPORATION+ 646,319
8,200 TUPPERWARE CORPORATION 129,663
6,536,325
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.66%
16,200 BEAR STEARNS COMPANIES INCORPORATED 739,125
117,000 CHARLES SCHWAB CORPORATION 6,647,063
35,400 FRANKLIN RESOURCES INCORPORATED 1,183,688
17,100 LEHMAN BROTHERS HOLDING INCORPORATED 1,658,700
52,900 MERRILL LYNCH & COMPANY INCORPORATED 5,554,500
162,500 MORGAN STANLEY DEAN WITTER & COMPANY 13,253,905
20,400 PAINE WEBBER GROUP INCORPORATED 897,600
17,000 T. ROWE PRICE ASSOCIATES INCORPORATED 671,500
30,606,081
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.44%
39,400 CORNING INCORPORATED 7,643,600
7,800 OWENS CORNING 151,125
</TABLE>
137
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
STONE, CLAY, GLASS & CONCRETE PRODUCTS (continued)
21,400 OWENS-ILLINOIS INCORPORATED+ $ 361,125
8,155,850
--------------
TEXTILE MILL PRODUCTS - 0.01%
4,700 RUSSELL CORPORATION 67,269
2,500 SPRINGS INDUSTRIES INCORPORATED CLASS A 95,000
162,269
--------------
TOBACCO PRODUCTS - 0.39%
337,400 PHILIP MORRIS COMPANIES INCORPORATED 7,127,575
--------------
TRANSPORTATION BY AIR - 0.27%
21,100 AMR CORPORATION+ 672,563
18,400 DELTA AIRLINES INCORPORATED 979,800
41,300 FEDEX CORPORATION+ 1,610,700
71,900 SOUTHWEST AIRLINES COMPANY 1,496,418
10,200 US AIRWAYS GROUP INCORPORATED+ 283,688
5,043,169
--------------
TRANSPORTATION EQUIPMENT - 1.92%
123,900 BOEING COMPANY 4,700,456
23,500 DANA CORPORATION 662,406
80,600 DELPHI AUTOMOTIVE SYSTEMS CORPORATION 1,289,600
172,300 FORD MOTOR COMPANY 7,915,031
28,700 GENERAL DYNAMICS CORPORATION 1,427,825
91,300 GENERAL MOTORS CORPORATION 7,560,781
21,500 HARLEY-DAVIDSON INCORPORATED 1,706,563
56,500 LOCKHEED MARTIN CORPORATION 1,154,719
9,000 NAVISTAR INTERNATIONAL CORPORATION+ 361,125
9,900 NORTHROP GRUMMAN CORPORATION 524,081
11,200 PACCAR INCORPORATED 560,000
27,000 ROCKWELL INTERNATIONAL CORPORATION 1,128,938
21,200 TEXTRON INCORPORATED 1,290,550
17,300 TRW INCORPORATED 1,012,050
67,700 UNITED TECHNOLOGIES CORPORATION 4,277,794
35,571,919
--------------
TRANSPORTATION SERVICES - 0.04%
18,500 SABRE HOLDINGS CORPORATION 683,344
--------------
WATER TRANSPORTATION - 0.12%
88,000 CARNIVAL CORPORATION 2,183,500
--------------
WHOLESALE TRADE -- DURABLE GOODS - 0.08%
25,400 GENUINE PARTS COMPANY 606,425
13,300 GRAINGER (W.W.) INCORPORATED 721,525
4,100 POTLATCH CORPORATION 176,300
1,504,250
--------------
WHOLESALE TRADE -- NONDURABLE GOODS - 0.46%
9,800 BROWN-FORMAN CORPORATION 533,488
40,100 CARDINAL HEALTH INCORPORATED 1,839,588
</TABLE>
138
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C>
WHOLESALE TRADE -- NONDURABLE GOODS (continued)
40,100 MCKESSON HBOC INCORPORATED $ 842,100
72,500 SAFEWAY INCORPORATED+ 3,280,625
19,900 SUPERVALU INCORPORATED 376,856
47,100 SYSCO CORPORATION 1,680,881
8,553,538
--------------
1,808,839,219
TOTAL COMMON STOCK (COST $1,073,430,512)
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.08%
REPURCHASE AGREEMENTS - 1.82%
$33,725,652 GOLDMAN SACHS REPURCHASE
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.35% 04/03/00 33,725,650
U.S. TREASURY BILLS - 0.26%
3,810,000 U.S. TREASURY BILLS 4.86{::} 04/27/00 3,795,065
1,065,000 U.S. TREASURY BILLS 5.76{::} 02/01/01 1,011,580
38,532,295
TOTAL SHORT-TERM INSTRUMENTS (COST
$38,534,692)
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,111,965,204)* 99.91% $1,847,371,514
OTHER ASSETS AND LIABILITIES, NET 0.09 1,685,714
------- -------------
TOTAL NET ASSETS 100.00% $1,849,057,228
------- -------------
</TABLE>
# SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $6,245,039.
+ NON-INCOME EARNING SECURITIES.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $838,331,748
GROSS UNREALIZED DEPRECIATION (102,925,438)
------------
NET UNREALIZED APPRECIATION $735,406,310
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
139
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 90.44%
AUSTRALIA - 0.43%
96,400 COMMONWEALTH BANK OF AUSTRALIA
(FINANCE) $ 1,318,910
148,700 LEND LEASE CORPORATION LIMITED
(FINANCE)+ 1,921,724
3,240,634
------------
AUSTRIA - 0.76%
78,800 BRAMBLES INDUSTRIES LIMITED
(BUSINESS SERVICES) 2,004,123
337,100 BROKEN HILL PROPRIETARY
COMPANY LIMITED (BUSINESS
COMPUTER SERVICES) 3,650,786
5,654,909
------------
BRAZIL - 1.01%
50,625 TELECOMUNICACOES BRASILEIRAS
SA ADR (FINANCE) 7,577,930
------------
CANADA - 2.07%
433,980 ABITIBI-CONSOLIDATED
INCORPORATED (BUSINESS
SERVICES)+ 4,169,933
163,390 CANADIAN PACIFIC (BUSINESS
SERVICES)+ 3,646,327
290,630 TORONTO DOMINION BANK
(FINANCE)+ 7,686,998
15,503,258
------------
FINLAND - 0.70%
489,060 STORA ENSO OYJ (BUSINESS
COMPUTER SERVICES) 5,241,254
------------
FRANCE - 13.65%
87,380 ALCATEL (CAPITAL EQUIPMENT) 19,172,164
49,502 AXA SA (FINANCE) 7,015,083
54,187 CANAL PLUS (BUSINESS SERVICES) 11,925,538
41,764 CAP GEMINI SA (BUSINESS
SERVICES)+ 11,309,504
12 ELF AQUITAINE SA
(COMMUNICATION EQUIPMENT) 2,147
283,686 SANOFI-SYNTHELABO SA
(WHOLESALE NONDURABLE GOODS) 10,817,360
129,283 TOTAL FINA ELF SA
(COMMUNICATION EQUIPMENT) 19,360,243
195,257 VIVENDI (MULTI INDUSTRY) 22,513,794
102,115,833
------------
GERMANY - 7.10%
97,497 BASF AG (BUSINESS COMPUTER
SERVICES) 4,627,303
276,880 DEUTSCHE BANK AG (FINANCE) 18,400,044
67,592 KARSTADTQUELLE AG (BUSINESS
SERVICES) 2,076,134
19,025 MUENCHENER
RUECKVERSICHERUNGS-GESELLSCHAFT
AG (BUSINESS SERVICES) 6,116,726
66,195 SIEMENS AG (MULTI INDUSTRY) 9,532,717
612,000 VIAG AG (CAPITAL EQUIPMENT) 12,414,874
53,167,798
------------
HONG KONG - 0.80%
330,000 HUTCHISON WHAMPOA LIMITED
(BUSINESS SERVICES) 5,954,539
------------
IRELAND - 0.53%
561,881 BANK OF IRELAND (FINANCE) 3,978,608
------------
ITALY - 0.57%
845,268 ENI SPA (ENERGY) 4,230,105
------------
</TABLE>
140
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
JAPAN - 20.96%
162,000 AMADA METRECS COMPANY LIMITED
(CAPITAL EQUIPMENT) $ 1,115,117
269,000 BRIDGESTONE CORPORATION
(CAPITAL EQUIPMENT) 5,940,475
50 CREDIT SAISON COMPANY LIMITED
(BUSINESS SERVICES) 829
204,000 DAI-DAN COMPANY LIMITED
(CAPITAL EQUIPMENT) 865,207
1,122,000 DAI-TOKYO FIRE & MARINE
INSURANCE COMPANY (FINANCE) 3,073,972
1,229 EAST JAPAN RAILWAY COMPANY
(BUSINESS SERVICES) 6,374,765
218,000 FUJI PHOTO FILM COMPANY
(CAPITAL EQUIPMENT) 9,607,173
208,000 FUJITSU LIMITED (BUSINESS
SERVICES) 6,388,142
398,000 HANSHIN ELECTRIC RAILWAY
COMPANY LIMITED (BUSINESS
SERVICES) 1,156,378
312,000 KURARAY COMPANY LIMITED
(BUSINESS COMPUTER SERVICES) 2,853,370
315,000 MATSUSHITA ELECTRIC INDUSTRIAL
COMPANY LIMITED (WHOLESALE
DURABLE GOODS) 9,428,652
1,218,000 MITSUI & COMPANY LIMITED
(MULTI INDUSTRY) 9,856,575
26,000 MURATA MANUFACTURING COMPANY
LIMITED (CAPITAL EQUIPMENT) 6,324,767
810,000 NIPPON EXPRESS COMPANY LIMITED
(CAPITAL EQUIPMENT) 6,025,738
953 NIPPON TELEGRAPH & TELEPHONE
CORPORATION (NTT) (BUSINESS
SERVICES) 15,145,415
648,000 OJI PAPER COMPANY LIMITED
(BUSINESS SERVICES) 4,555,237
245,000 OMRON CORPORATION (BUSINESS
SERVICES) 6,975,087
74,200 PROMISE COMPANY LIMITED
(FINANCE) 5,722,437
1,112,000 SAKURA BANK LIMITED (FINANCE) 8,467,525
260,000 SEKISUI HOUSE (CAPITAL
EQUIPMENT) 2,385,413
77,000 SONY CORPORATION (CAPITAL
EQUIPMENT) 10,885,776
460,000 SUMITOMO ELECTRIC INDUSTRIES
(CAPITAL EQUIPMENT) 6,489,736
6,353,000 SUMITOMO METAL INDUSTRIES
LIMITED (BUSINESS COMPUTER
SERVICES) 4,955,295
117,000 TAKEDA CHEMICAL INDUSTRIES
(WHOLESALE DURABLE GOODS) 8,327,399
48,000 TDK CORPORATION (WHOLESALE
DURABLE GOODS) 6,542,581
493,000 TOPPAN PRINTING COMPANY
LIMITED (BUSINESS SERVICES) 5,527,712
419,000 YASUDA FIRE & MARINE INSURANCE
COMPANY LIMITED (FINANCE) 1,899,624
156,890,397
------------
MEXICO - 1.24%
59,310 FOMENTO ECONOMICO MEXICANO SA
DE CV ADR (FINANCE) 2,668,950
96,760 GRUPO TELEVISA SA GDR
(BUSINESS SERVICES)+ 6,579,680
9,248,630
------------
NETHERLANDS - 6.45%
69,754 EQUANT NV (CAPITAL EQUIPMENT)+ 5,786,864
5,000 HEINEKEN NV (WHOLESALE
NONDURABLE GOODS) 267,207
290,843 ING GROEP NV (FINANCE) 15,751,896
262,875 ROYAL DUTCH PETROLEUM COMPANY
(ENERGY) 15,346,359
132,456 TNT POST GROUP NV (BUSINESS
SERVICES) 2,974,677
355,620 WOLTERS KLUWER NV (BUSINESS
SERVICES) 8,166,810
48,293,813
------------
NEW ZEALAND - 0.10%
868,100 CARTER HOLT HARVEY LIMITED
(BUSINESS COMPUTER SERVICES) 750,262
------------
PORTUGAL - 0.99%
280,170 ELECTRICIDADE DE PORTUGAL SA
(ENERGY) 5,241,112
</TABLE>
141
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PORTUGAL (continued)
119,400 JERONIMO MARTINS S.G.P.S. SA
(WHOLESALE NONDURABLE GOODS) $ 2,165,053
7,406,165
------------
SINGAPORE - 1.08%
326,000 CITY DEVELOPMENTS LIMITED
(FINANCE) 1,477,033
158,560 DBS GROUP HOLDINGS LIMITED
(FINANCE) 2,094,941
620,000 DBS LAND LIMITED (FINANCE) 808,290
215,828 SINGAPORE PRESS HOLDINGS
LIMITED (BUSINESS SERVICES) 3,444,620
46,776 UNITED OVERSEAS BANK LIMITED
(FINANCE) 287,133
8,112,017
------------
SOUTH AFRICA - 0.31%
303,000 SAPPI LIMITED (BUSINESS
COMPUTER SERVICES) 2,342,507
------------
SPAIN - 4.86%
1,021,552 ENDESA SA (ENERGY) 23,430,607
514,015 TELEFONICA SA (BUSINESS
SERVICES) 12,984,785
36,415,392
------------
SWEDEN - 3.68%
313,983 TELEFONAKTIEBOLAGET LM
ERICSSON "B" SHARES
(COMMUNICATIONS) 27,582,518
------------
SWITZERLAND - 5.82%
20,847 NOVARTIS AG (CAPITAL
EQUIPMENT) 28,511,605
586 ROCHE HOLDING AG (WHOLESALE
NONDURABLE GOODS) 6,365,060
33,121 UBS AG (FINANCE) 8,705,065
43,581,730
------------
TAIWAN - 3.60%
87,300 ACER INCORPORATED (CAPITAL
EQUIPMENT)+ 1,217,835
329,070 ASUSTEK COMPUTER INCORPORATED
(CAPITAL EQUIPMENT) 6,005,527
400,210 CHINA STEEL CORPORATION GDR
(BUSINESS COMPUTER SERVICES) 5,833,061
2,064,879 TAIWAN SEMICONDUCTOR WATTS
(ELECTRONICS)+ 13,910,621
26,967,044
------------
UNITED KINGDOM - 13.73%
618,140 AIRTOURS PLC (BUSINESS
SERVICES) 3,320,757
96,930 ARM HOLDINGS PLC (BUSINESS
SERVICES)+ 5,860,572
502,290 BLUE CIRCLE INDUSTRIES PLC
(BUSINESS COMPUTER SERVICES) 3,353,459
470,730 BRITISH LAND COMPANY PLC
(FINANCE) 3,011,334
259,770 CELLTECH GROUP PLC (WHOLESALE
DURABLE GOODS)+ 4,707,712
269,970 DAVID S. SMITH HOLDINGS PLC
(BUSINESS SERVICES) 553,428
399,610 ELECTROCOMPONENTS PLC
(TECHNOLOGIES) 4,051,301
305,320 FUTURE NETWORK PLC (BUSINESS
COMPUTER SERVICES)+ 4,216,871
304,750 GLAXO WELLCOME PLC
(ELECTRONICS) 8,726,715
235,000 HAYS PLC (BUSINESS SERVICES) 1,538,010
1,096,166 KINGFISHER PLC (WHOLESALE
NONDURABLE GOODS) 9,005,880
1,587,210 LASMO PLC (ENERGY) 3,057,484
1,875,900 LEGAL & GENERAL GROUP PLC
(FINANCE) 4,870,497
</TABLE>
142
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
UNITED KINGDOM (continued)
1,628,414 ROLLS-ROYCE PLC (BUSINESS
SERVICES) $ 5,280,049
7,423,270 VODAFONE AIRTOUCH PLC
(COMMUNICATIONS) 41,270,587
102,824,656
TOTAL COMMON STOCK (COST $558,637,432)
------------
677,079,999
------------
<CAPTION>
PRINCIPAL
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 8.88%
$15,411,807 WELLS FARGO FUNDS TRUST 100%
TREASURY MONEY MARKET ++ 15,411,807
51,048,979 BUSINESS CLASS PLUS 51,048,979
66,460,786
TOTAL SHORT-TERM INSTRUMENTS (COST
$66,460,786)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $625,098,218)* 99.32% $743,540,785
OTHER ASSETS AND LIABILITIES, NET 0.68 5,114,468
------- ------------
TOTAL NET ASSETS 100.00% $748,655,253
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
++ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY
PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND IS NOT CHARGED ANY
INVESTMENT ADVISORY FEE FOR AMOUNTS INVESTED IN THE WELLS FARGO MONEY
MARKET FUND.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $162,592,407
GROSS UNREALIZED DEPRECIATION (44,149,840)
-----------
NET UNREALIZED APPRECIATION $118,442,567
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
143
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCKS - 96.19%
AUSTRALIA - 2.30%
250,000 BROKEN HILL PROPRIETARY
COMPANY LIMITED
(MANUFACTURING) $ 2,707,495
330,000 NEWS CORPORATION LIMITED
(PRINTING PUBLISHING AND
INDUSTRIES) 4,611,087
7,318,582
------------
BRAZIL - 1.35%
100,000 ARACRUZ CELULOSE SA ADR (PAPER
PRODUCTS)+ 2,118,750
73,811,400 TELESP PARTICIPACOES S.A.
(COMMUNICATIONS) 2,169,928
4,288,678
------------
FINLAND - 2.39%
35,000 NOKIA CORPORATION ADR
(ELECTRONIC EQUIPMENT) 7,603,750
------------
FRANCE - 12.99%
39,000 AXA (INSURANCE) 5,526,812
17,000 CANAL PLUS (COMMUNICATIONS) 3,741,380
19,000 CAP GEMINI SA (BUSINESS
SERVICES)+ 5,145,114
16,500 GROUPE DANONE (FOOD AND
KINDRED PRODUCTS) 3,647,128
45,000 ST MICROELECTRONICS NV
(ELECTRONICS) 8,267,397
27,000 SUEZ LYONNAISE DES EAUX
(INDUSTRIAL) 4,640,076
36,400 TOTAL FINA ELF SA (OIL AND
GAS) 5,450,932
43,500 VIVENDI (BUSINESS SERVICES) 5,015,698
41,434,537
------------
GERMANY - 6.91%
13,300 ALLIANZ AG (INSURANCE) 5,415,097
60,000 DEUTSCHE BANK AG (BANKING) 3,987,297
37,800 INFINEON TECHNOLOGIES AG
(ELECTRONICS)+ 2,063,491
44,000 METRO AG (RETAILERS) 1,759,884
55,500 SGL CARBON AG (CHEMICALS) 4,248,522
19,900 SIEMENS AG (MANUFACTURING) 2,865,792
33,000 VEBA AG (ELECTRIC GAS AND
SANITARY) 1,686,204
22,026,287
------------
HONG KONG - 3.22%
492,000 CHEUNG KONG HOLDINGS LIMITED
(REAL ESTATE) 7,361,205
250,000 HSBC HOLDINGS PLC (BANKING) 2,921,725
10,282,930
------------
HUNGARY - 0.96%
350,000 MAGYAR TAVKOZLESI RT
(COMMUNICATIONS) 3,072,677
------------
IRELAND - 3.38%
82,000 ELAN COMPANY PLC ADR
(CHEMICALS)+ 3,895,000
150,000 RYANAIR HOLDINGS PLC - ADR
(AIR TRANSPORTATION)+ 6,881,250
10,776,250
------------
ITALY - 1.70%
450,000 ENI SPA (OIL AND GAS) 2,252,004
</TABLE>
144
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ITALY (continued)
232,300 SAN PAOLO IMI SPA (BANKING) $ 3,180,855
5,432,859
------------
JAPAN - 20.65%
27,000 BENESSE CORPORATION
(EDUCATION) 2,769,365
45,000 FAMILYMART COMPANY LIMITED
(GENERAL MERCHANDISE) 2,228,830
160,000 FUJITSU LIMITED (ELECTRONICS) 4,913,955
75,000 HONDA MOTOR COMPANY LIMITED
(TRANSPORTATION EQUIPMENT) 3,100,472
220,000 NIKKO SECURITIES COMPANY
LIMITED (FINANCIAL SERVICES) 3,333,300
350 NIPPON TELEGRAPH & TELEPHONE
CORPORATION (NTT)
(COMMUNICATIONS) 5,562,324
165,000 NOMURA SECURITIES COMPANY
(FINANCIAL SERVICES) 5,389,264
127,000 OMRON CORPORATION
(ELECTRONICS) 3,615,657
1,800 ORACLE CORPORATION JAPAN
(BUSINESS SERVICES) 1,509,286
55,000 SECOM COMPANY LIMITED
(COMMERCIAL) 4,718,957
50,000 SEVEN-ELEVEN JAPAN COMPANY
LIMITED (RETAIL) 5,752,448
225,000 SHARP CORPORATION
(ELECTRONICS) 4,815,238
5,000 SOFTBANK CORPORATION (COMPUTER
SOFTWARE) 4,460,584
37,000 SONY CORPORATION (ELECTRONICS) 5,230,828
60,000 TAKEDA CHEMICAL INDUSTRIES
(CHEMICALS) 4,270,461
80,000 TOYOTA MOTOR CORPORATION
(TRANSPORTATION EQUIPMENT) 4,188,562
65,859,531
------------
KOREA REPUBLIC OF - 0.66%
48,000 KOREA TELECOM CORPORATION SP
ADR (COMMUNICATIONS) 2,100,000
------------
MEXICO - 3.65%
1,180,000 GRUPO TELEVISA SA DE CV
(COMMUNICATIONS)+ 4,087,593
2,200,000 TELEFONOS DE MEXICO SA
(COMMUNICATIONS) 7,561,675
11,649,268
------------
NETHERLANDS - 6.51%
114,600 KONINKLIJKE AHOLD NV (FOOD AND
KINDRED PRODUCTS) 2,981,596
40,000 KONINKLIJKE PHILIPS
ELECTRONICS NV (ELECTRONICS) 6,721,087
76,000 ROYAL DUTCH PETROLEUM COMPANY
NY SHARES (PETROLEUM) 4,374,750
70,400 UNILEVER NV (WHOLESALE TRADE) 3,472,613
69,000 UNITED PAN-EUROPE
COMMUNICATIONS NV
(COMMUNICATIONS)+ 3,223,969
20,774,015
------------
NORWAY - 1.02%
186,000 PETROLEUM GEO-SERVICES (OIL
AND GAS)+ 3,261,910
------------
SINGAPORE - 1.72%
415,000 DBS GROUP HOLDINGS LIMITED
(BANKING) 5,483,115
------------
SPAIN - 2.32%
330,000 BANCO SANTANDER SA (BANKING) 3,546,082
152,220 TELEFONICA SA (COMMUNICATIONS) 3,845,304
7,391,386
------------
</TABLE>
145
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
SWEDEN - 2.35%
80,000 TELEFONAKTIEBOLAGET LM
ERICSSON SERIES B ADR
(ELECTRONICS) $ 7,505,000
------------
SWITZERLAND - 5.31%
4,200 ADECCO SA (BUSINESS SERVICES) 2,904,921
1,575 JULIUS BAER HOLDING LIMITED
ZURICH (INVESTMENT OFFICES) 5,929,827
2,450 NESTLE SA (FOOD AND KINDRED
PRODUCTS) 4,391,061
2,700 NOVARTIS AG (CHEMICALS) 3,692,678
16,918,487
------------
TAIWAN - 2.22%
100,000 ASE TEST LIMITED
(ELECTRONICS)+ 2,900,000
227,000 RITEK CORPORATION GDR
(INDUSTRIAL MACHINERY)+ 4,177,458
7,077,458
------------
UNITED KINGDOM - 14.58%
430,000 AMVESCAP PLC (FINANCIAL
SERVICES) 5,847,974
40,000 ARM HOLDINGS PLC ADR
(ELECTRONICS)+ 7,110,000
400,000 BP AMOCO PLC (OIL AND GAS) 3,659,620
210,000 BRITISH TELECOMMUNICATIONS PLC
(COMMUNICATIONS) 3,936,405
673,000 INVENSYS PLC (ENGINEERING
ACCOUNTING RESEARCH AND
RELATED SERVICES) 2,990,080
63,300 NDS GROUP PLC ADR
(COMMUNICATIONS)+ 4,462,650
270,000 ROYAL BANK OF SCOTLAND GROUP
(BANKING) 3,975,649
50,000 SMITHKLINE BEECHAM PLC ADR
(CHEMICALS) 3,303,125
500,000 TELEWEST COMMUNICATIONS PLC
(COMMUNICATIONS)+ 3,840,688
1,325,504 VODAFONE AIRTOUCH PLC
(COMMUNICATIONS) 7,369,303
46,495,494
------------
306,752,214
TOTAL COMMON STOCKS (COST $250,901,186)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 4.86%
REPURCHASE AGREEMENTS - 4.86%
$15,506,195 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES
(FINANCIAL SERVICES) 6.22% 04/03/00 15,506,195
------------
TOTAL SHORT-TERM INSTRUMENTS (COST
$15,506,195)
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $266,407,381)* 101.05% $322,258,409
OTHER ASSETS AND LIABILITIES NET (1.05) (3,333,331)
------- ------------
TOTAL NET ASSETS 100.00% $318,925,078
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $ 70,090,107
GROSS UNREALIZED DEPRECIATION (14,239,079)
------------
NET UNREALIZED APPRECIATION $ 55,851,028
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
146
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.73%
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 5.34%
195,100 FASTENAL COMPANY $ 9,340,413
2,359,617 HOME DEPOT INCORPORATED 152,195,296
161,535,709
--------------
BUSINESS SERVICES - 15.40%
871,700 AUTOMATIC DATA PROCESSING
INCORPORATED 42,059,525
409,000 DST SYSTEMS INCORPORATED+ 26,559,438
1,660,600 FIRST DATA CORPORATION 73,481,550
938,312 FISERV INCORPORATED+ 34,893,478
3,013,800 IMS HEALTH INCORPORATED 51,046,238
2,045,160 MICROSOFT CORPORATION+ 217,298,249
544,500 SUNGARD DATA SYSTEMS
INCORPORATED+ 20,554,875
465,893,353
--------------
CHEMICALS & ALLIED PRODUCTS - 6.29%
876,800 MERCK & COMPANY INCORPORATED 54,471,200
2,330,800 PFIZER INCORPORATED 85,219,875
518,500 WARNER-LAMBERT COMPANY 50,553,750
190,244,825
--------------
DEPOSITORY INSTITUTIONS - 1.21%
379,100 STATE STREET CORPORATION 36,725,313
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT -
19.58%
1,768,600 INTEL CORPORATION 233,344,662
1,580,400 LUCENT TECHNOLOGIES
INCORPORATED 96,009,300
644,850 NOKIA CORPORATION ADR 140,093,663
1,311,400 TELEFONAKTIEBOLAGET LM
ERICSSON AB ADR 123,025,713
592,473,338
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 2.58%
1,491,799 PAYCHEX INCORPORATED 78,132,973
--------------
FOOD & KINDRED PRODUCTS - 1.09%
704,700 COCA-COLA COMPANY 33,076,856
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 16.98%
3,816,000 CISCO SYSTEMS INCORPORATED+ 295,024,500
690,200 EMC CORPORATION+ 86,275,000
3,304,700 SOLECTRON CORPORATION+ 132,394,543
513,694,043
--------------
INSURANCE CARRIERS - 4.17%
1,152,791 AMERICAN INTERNATIONAL GROUP
INCORPORATED 126,230,615
--------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS - 4.42%
2,601,600 MEDTRONIC INCORPORATED 133,819,800
--------------
</TABLE>
147
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MISCELLANEOUS RETAIL - 4.12%
1,290,500 COSTCO WHOLESALE CORPORATION+ $ 67,831,906
2,839,275 STAPLES INCORPORATED+ 56,785,500
124,617,406
--------------
MOTION PICTURES - 0.65%
476,390 WALT DISNEY COMPANY 19,710,636
--------------
OIL & GAS EXTRACTION - 0.68%
269,300 SCHLUMBERGER LIMITED 20,601,450
--------------
PERSONAL SERVICES - 1.48%
1,140,600 CINTAS CORPORATION 44,697,263
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 12.92%
3,229,025 CHARLES SCHWAB CORPORATION 183,448,982
1,372,250 GOLDMAN SACHS GROUP
INCORPORATED 144,257,781
1,595,700 T. ROWE PRICE 63,030,150
390,736,913
--------------
WHOLESALE TRADE -- NONDURABLE GOODS - 0.82%
537,800 CARDINAL HEALTH INCORPORATED 24,671,575
--------------
2,956,862,068
TOTAL COMMON STOCK (COST $1,441,826,900)
--------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.29%
REPURCHASE AGREEMENTS - 2.29%
$69,138,808 BEAR STEARNS & COMPANY
INCORPORATED REPURCHASE
AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.20% 04/03/00 69,138,808
69,138,808
TOTAL SHORT-TERM INSTRUMENTS (COST
$69,138,808)
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,510,965,708)* 100.02% $3,026,000,876
OTHER ASSETS AND LIABILITIES, NET (0.02) (706,941)
------- --------------
TOTAL NET ASSETS 100.00% $3,025,293,935
------- --------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $1,584,478,451
GROSS UNREALIZED DEPRECIATION (69,443,283)
-------------
NET UNREALIZED APPRECIATION $1,515,035,168
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
148
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 90.83%
AGRICULTURAL PRODUCTION -- CROPS - 0.25%
26,000 CHIQUITA BRANDS INTERNATIONAL
INCORPORATED $ 123,500
15,300 DELTA & PINE LAND COMPANY 302,175
425,675
------------
AGRICULTURAL PRODUCTION -- LIVESTOCK & ANIMAL SPECIALTIES - 0.10%
8,000 MICHAEL FOODS INCORPORATED 168,000
------------
AMUSEMENT & RECREATION SERVICES - 0.23%
4,700 ANCHOR GAMING+ 178,306
10,300 PINNACLE ENTERTAINMENT
INCORPORATED+ 209,219
387,525
------------
APPAREL & ACCESSORY STORES - 0.90%
12,400 ANNTAYLOR STORES CORPORATION+ 285,200
5,500 ASHWORTH INCORPORATED+ 23,719
10,400 CATO CORPORATION 122,200
7,600 DRESS BARN INCORPORATED+ 146,300
8,200 FOOTSTAR INCORPORATED+ 231,650
13,100 GOODY'S FAMILY CLOTHING
INCORPORATED+ 79,419
9,600 GYMBOREE CORPORATION+ 39,600
5,500 J. BAKER INCORPORATED 38,500
12,400 PACIFIC SUNWEAR OF CALIFORNIA
INCORPORATED+ 477,400
5,400 WET SEAL INCORPORATED+ 85,050
1,529,038
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.48%
6,200 CYRK INCORPORATED+ 54,638
2,700 HAGGAR CORPORATION 37,125
11,600 HARTMARX CORPORATION+ 31,900
11,000 KELLWOOD COMPANY 193,188
13,700 NAUTICA ENTERPRISES
INCORPORATED+ 160,975
5,100 OSHKOSH B'GOSH INCORPORATED 91,800
10,800 PHILLIPS-VAN HEUSEN
CORPORATION 83,024
5,600 PILLOWTEX CORPORATION 22,400
8,800 QUIKSILVER INCORPORATED+ 154,550
829,600
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.42%
21,200 COPART INCORPORATED+ 371,000
6,600 DISCOUNT AUTO PARTS
INCORPORATED+ 58,988
20,000 O'REILLY AUTOMOTIVE
INCORPORATED+ 283,750
713,738
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.37%
14,500 CENTRAL PARKING CORPORATION 290,000
6,400 MIDAS INCORPORATED 153,600
</TABLE>
149
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
AUTOMOTIVE REPAIR, SERVICES & PARKING (continued)
22,400 ROLLINS TRUCK LEASING
CORPORATION $ 189,000
632,600
------------
BUILDING CONSTRUCTION -- GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.69%
24,300 D.R. HORTON INCORPORATED 317,419
8,800 MDC HOLDINGS INCORPORATED 157,850
5,600 RYLAND GROUP INCORPORATED 105,000
11,600 STANDARD PACIFIC CORPORATION 116,000
14,400 TOLL BROTHERS INCORPORATED+ 288,000
5,400 U.S. HOME CORPORATION+ 205,200
1,189,469
------------
BUSINESS SERVICES - 12.88%
7,800 AARON RENTS INCORPORATED 117,488
8,800 ABM INDUSTRIES INCORPORATED 206,800
8,100 ADVO INCORPORATED+ 202,500
16,100 AMERICAN MANAGEMENT SYSTEMS
INCORPORATED+ 705,381
8,900 ANALYSTS INTERNATIONAL
CORPORATION 87,887
10,000 ASPEN TECHNOLOGY INCORPORATED+ 403,750
5,500 BARRA INCORPORATED+ 186,313
10,900 BISYS GROUP INCORPORATED+ 724,850
7,200 CATALINA MARKETING
CORPORATION+ 729,000
13,300 CERNER CORPORATION+ 359,100
11,600 CHOICEPOINT INCORPORATED+ 433,550
23,300 CIBER INCORPORATED+ 477,650
16,300 COGNEX CORPORATION+ 940,305
8,200 COMPUTER TASK GROUP
INCORPORATED 90,200
15,400 DENDRITE INTERNATIONAL
INCORPORATED+ 322,438
16,900 ELOYALTY CORPORATION+ 403,488
16,100 EPICOR SOFTWARE CORPORATION+ 136,850
12,500 FACTSET RESEARCH SYSTEMS
INCORPORATED 338,281
5,500 FAIR, ISAAC AND COMPANY
INCORPORATED 213,812
12,800 FILENET CORPORATION+ 380,800
8,800 GERBER SCIENTIFIC INCORPORATED 169,950
6,200 GREAT PLAINS SOFTWARE
INCORPORATED+ 330,925
15,300 HARBINGER CORPORATION+ 445,613
15,900 HENRY (JACK) & ASSOCIATES 586,313
9,700 HNC SOFTWARE INCORPORATED+ 699,006
12,600 HYPERION SOLUTIONS
CORPORATION+ 409,500
18,000 INACOM CORPORATION+ 49,500
11,100 INFORMATION RESOURCES
INCORPORATED+ 88,800
4,600 INSURANCE AUTO AUCTIONS
INCORPORATED+ 77,625
25,000 INTERIM SERVICES INCORPORATED+ 464,062
4,900 KRONOS INCORPORATED+ 145,163
16,900 LABOR READY INCORPORATED+ 166,888
7,400 LASON INCORPORATED+ 48,794
30,200 MERCURY INTERACTIVE
CORPORATION+ 2,393,350
15,000 MIDWAY GAMES INCORPORATED+ 198,750
</TABLE>
150
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
BUSINESS SERVICES (continued)
12,600 NATIONAL COMPUTER SYSTEMS
INCORPORATED $ 639,450
13,000 NATIONAL DATA CORPORATION 338,000
19,700 NATIONAL INSTRUMENTS
CORPORATION+ 924,668
8,500 NETWORK EQUIPMENT TECHNOLOGIES
INCORPORATED+ 85,000
7,900 PRIMARK CORPORATION+ 190,588
13,800 PROGRESS SOFTWARE CORPORATION+ 323,437
8,500 PROJECT SOFTWARE & DEVELOPMENT
INCORPORATED+ 480,250
5,300 QRS CORPORATION+ 398,825
6,500 RADISYS CORPORATION+ 390,813
11,400 REMEDY CORPORATION+ 480,225
15,200 RSA SECURITY INCORPORATED+ 787,550
30,000 S3 INCORPORATED+ 630,000
11,300 SAGA SYSTEMS INCORPORATED+ 403,975
28,200 SNYDER COMMUNICATIONS
INCORPORATED+ 634,500
11,600 STAFFMARK INCORPORATED+ 92,075
7,300 THQ INCORPORATED+ 130,488
19,000 TRUE NORTH COMMUNICATIONS
INCORPORATED 746,937
12,200 VERITY INCORPORATED+ 497,150
5,900 VOLT INFORMATION SCIENCES
INCORPORATED+ 212,031
22,120,644
------------
CHEMICALS & ALLIED PRODUCTS - 5.43%
22,300 ADVANCED TISSUE SCIENCES
INCORPORATED+ 150,524
18,500 ALLIANCE PHARMACEUTICAL
CORPORATION+ 276,343
11,700 ALPHARMA INCORPORATED 429,975
9,000 BARR LABORATORIES
INCORPORATED+ 378,000
9,100 BIOMATRIX INCORPORATED+ 232,050
8,900 BRADY COMPANY 277,568
9,700 CAMBREX CORPORATION 421,950
7,200 CHEMFIRST INCORPORATED 139,950
17,400 DURA PHARMACEUTICALS
INCORPORATED+ 214,237
9,300 GEON COMPANY 199,950
16,700 IDEC PHARMACEUTICALS
CORPORATION+ 1,640,775
10,200 IMMUNE RESPONSE CORPORATION+ 117,300
25,600 JONES PHARMA INCORPORATED 777,600
9,200 LILLY INDUSTIRES INCORPORATED
CLASS A 113,850
15,400 LIPOSOME COMPANY INCORPORATED+ 269,020
12,300 MACDERMID INCORPORATED 325,950
3,900 MCWHORTER TECHNOLOGIES
INCORPORATED+ 46,800
11,500 MEDICIS PHARMACEUTICAL
CORPORATION+ 460,000
10,300 MISSISSIPPI CHEMICAL
CORPORATION 70,168
6,800 NATURES SUNSHINE PRODUCT
INCORPORATED 54,400
26,100 NBTY INCORPORATED+ 357,244
13,000 NORTH AMERICAN VACCINE
INCORPORATED+ 34,938
8,500 NOVEN PHARMACEUTICALS
INCORPORATED+ 92,969
9,400 OM GROUP INCORPORATED 427,700
16,500 OMNOVA SOLUTIONS INCORPORATED 92,813
9,800 PAREXEL INTERNATIONAL
CORPORATION+ 92,488
</TABLE>
151
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
CHEMICALS & ALLIED PRODUCTS (continued)
2,900 PENFORD CORPORATION $ 52,563
7,400 PROTEIN DESIGN LABS
INCORPORATED+ 588,300
3,500 QUAKER CHEMICAL CORPORATION 59,500
11,000 SCOTTS COMPANY+ 462,000
10,100 VERTEX PHARMACEUTICALS
INCORPORATED+ 472,806
9,329,731
------------
COMMUNICATIONS - 0.67%
8,500 AUDIOVOX CORPORATION+ 370,813
21,000 BRIGHTPOINT INCORPORATED+ 257,250
20,000 GENERAL COMMUNICATIONS
INCORPORATED+ 107,500
25,500 TALK.COM INCORPORATED+ 408,000
1,143,563
------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS - 0.71%
10,900 APOGEE ENTERPRISES
INCORPORATED 43,260
4,100 CHEMED CORPORATION 123,000
15,200 DYCOM INDUSTRIES INCORPORATED+ 741,000
9,900 INSITUFORM TECHNOLOGIES
CLASS A+ 303,188
1,210,448
------------
CONSUMER PRODUCTS - 0.01%
3,100 SWISS ARMY BRANDS
INCORPORATED+ 15,113
------------
DEPOSITORY INSTITUTIONS - 5.28%
9,800 ANCHOR BANCORP WISCONSIN
INCORPORATED 155,575
9,200 BANKNORTH GROUP INCORPORATED 246,675
10,100 CAROLINA FIRST CORPORATION 132,563
15,500 CENTURA BANKS INCORPORATED 710,094
11,200 CHITTENDEN CORPORATION 332,500
11,600 COMMERCE BANCORP INCORPORATED 429,200
22,700 COMMERCIAL FEDERAL CORPORATION 377,388
19,700 COMMUNITY FIRST BANKSHARES
INCORPORATED 315,200
20,900 CULLEN/FROST BANKERS
INCORPORATED 552,544
11,100 DOWNEY FINANCIAL CORPORATION 235,875
11,200 FIRST BANCORP/PUERTO RICO 197,400
16,200 FIRST MIDWEST BANCORP
INCORPORATED 392,850
19,900 HUDSON UNITED BANCORP 431,581
5,700 INVESTORS FINANCIAL SERVICES
CORPORATION 335,588
9,500 MAF BANCORP INCORPORATED 153,781
10,100 PROVIDENT BANKSHARES
CORPORATION 159,075
8,300 QUEENS COUNTY BANCORP
INCORPORATED 149,919
11,200 RIGGS NATIONAL CORPORATION 136,500
8,800 SILICON VALLEY BANCSHARES+ 632,500
11,000 SOUTHWEST BANCORPORATION OF
TEXAS INCORPORATED+ 213,812
15,600 STATEN ISLAND BANCORP
INCORPORATED 267,150
14,600 SUSQUEHANNA BANCSHARES
INCORPORATED 201,662
21,100 TRUSTCO BANK CORPORATION NEW
YORK 246,605
</TABLE>
152
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS (continued)
7,400 U.S. TRUST CORPORATION $ 1,398,600
16,800 UNITED BANKSHARES INCORPORATED 369,600
8,900 WHITNEY HOLDING CORPORATION 290,362
9,064,599
------------
EATING & DRINKING PLACES - 1.38%
10,700 APPLEBEE'S INTERNATIONAL
INCORPORATED 300,938
10,700 CEC ENTERTAINMENT
INCORPORATED+ 290,238
7,900 CHEESECAKE FACTORY+ 328,838
19,900 CKE RESTAURANTS INCORPORATED 126,862
11,600 CONSOLIDATED PRODUCTS
INCORPORATED+ 109,475
7,900 IHOP CORPORATION+ 110,600
15,100 JACK IN THE BOX INCORPORATED+ 321,819
9,800 LANDRY'S SEAFOOD RESTAURANTS
INCORPORATED 62,475
8,800 LUBY'S INCORPORATED 83,050
12,200 RUBY TUESDAY INCORPORATED 213,500
14,300 RYAN'S FAMILY STEAK HOUSES
INCORPORATED+ 136,743
7,200 SONIC CORPORATION+ 196,200
5,200 TACO CABANA INCORPORATED
CLASS A+ 30,875
9,000 TCBY ENTERPRISES INCORPORATED 51,750
2,363,363
------------
ELECTRIC, GAS & SANITARY SERVICES - 2.71%
3,500 AMERICAN STATES WATER COMPANY 104,125
12,400 ATMOS ENERGY CORPORATION 203,050
2,900 BANGOR HYDRO-ELECTRIC COMPANY 50,206
4,400 CASCADE NATURAL GAS
CORPORATION 70,950
4,500 CENTRAL VERMONT PUBLIC SERVICE
CORPORATION 46,968
6,600 CH ENERGY GROUP INCORPORATED 200,475
8,100 EASTERN UTILITIES ASSOCIATES 254,137
11,900 ENERGEN CORPORATION 189,656
2,100 GREEN MOUNTAIN POWER
CORPORATION 14,044
7,400 LACLEDE GAS COMPANY 148,000
7,000 NEW JERSEY RESOURCES
CORPORATION 299,250
9,900 NORTHWEST NATURAL GAS COMPANY 193,050
9,100 NORTHWESTERN CORPORATION 187,688
16,100 PHILADELPHIA SUBURBAN
CORPORATION 291,813
12,300 PIEDMONT NATURAL GAS COMPANY 320,569
18,900 SOUTHERN UNION COMPANY+ 341,381
12,200 SOUTHWEST GAS CORPORATION 232,563
9,800 SOUTHWESTERN ENERGY COMPANY 64,925
5,300 TNP ENTERPRISES INCORPORATED 232,205
5,600 UNITED ILLUMINATING COMPANY 219,800
15,300 UNITED WATER RESOURCES
INCORPORATED 531,675
14,800 WICOR INCORPORATED 458,800
4,655,330
------------
</TABLE>
153
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT -
15.54%
8,600 ACTEL CORPORATION+ $ 306,912
13,400 ADAPTIVE BROADBAND
CORPORATION+ 716,900
10,900 ALLEN TELECOM INCORPORATED+ 173,718
7,800 ALPHA INDUSTRIES INCORPORATED+ 741,000
7,400 AMERICAN XTAL TECHNOLOGY
INCORPORATED+ 239,575
14,700 ARTESYN TECHNOLOGIES
INCORPORATED+ 278,381
19,200 ASPECT COMMUNICATIONS
CORPORATION+ 711,600
14,100 BALDOR ELECTRIC COMPANY 254,681
6,400 BENCHMARK ELECTRONICS
INCORPORATED+ 236,800
10,800 BMC INDUSTRIES INCORPORATED 61,425
21,900 BURR-BROWN CORPORATION+ 1,190,813
5,100 C&D TECHNOLOGIES INCORPORATED 300,900
12,600 C-COR.NET CORPORATION+ 617,400
16,000 C-CUBE MICROSYSTEMS
INCORPORATED+ 1,165,000
11,100 CABLE DESIGN TECHNOLOGIES
CORPORATION+ 376,706
2,400 CENTIGRAM COMMUNICATIONS
CORPORATION+ 45,600
11,900 CHECKPOINT SYSTEMS
INCORPORATED+ 99,663
5,700 CONCORD COMMUNICATIONS
INCORPORATED+ 202,706
10,900 CTS CORPORATION 621,300
22,800 DALLAS SEMICONDUCTOR
CORPORATION 800,850
27,400 DIGITAL MICROWAVE CORPORATION+ 928,175
8,700 DIONEX CORPORATION+ 286,556
10,400 ELECTRO SCIENTIFIC INDUSTRIES
INCORPORATED+ 603,200
14,500 GENERAL SEMICONDUCTOR
INCORPORATED+ 250,125
5,400 HADCO CORPORATION+ 348,975
6,800 HARMAN INTERNATIONAL
INDUSTRIES INCORPORATED 408,000
4,500 HARMON INDUSTRIES INCORPORATED 81,563
8,800 HELIX TECHNOLOGY CORPORATION 528,550
9,800 HUTCHINSON TECHNOLOGY
INCORPORATED+ 172,725
5,800 INNOVEX INCORPORATED 56,731
10,200 INTER-TEL INCORPORATED 279,225
24,100 INTERNATIONAL RECTIFIER
CORPORATION+ 918,812
12,600 INTERVOICE-BRITE INCORPORATED+ 363,825
5,900 ITRON INCORPORATED+ 40,931
17,100 KEMET CORPORATION+ 1,081,575
18,900 LATTICE SEMICONDUCTOR
CORPORATION+ 1,279,294
8,300 MERCURY COMPUTER SYSTEMS
INCORPORATED+ 405,663
14,200 METHODE ELECTRONICS
INCORPORATED 717,100
16,300 MICREL INCORPORATED+ 1,564,800
2,900 NATIONAL PRESTO INDUSTRIES
INCORPORATED 94,613
28,400 P-COM INCORPORATED+ 525,400
4,100 PARK ELECTROCHEMICAL
CORPORATION 100,450
9,400 PHOTRONICS INCORPORATED+ 331,938
16,000 PICTURETEL CORPORATION+ 140,000
6,400 PLANTRONICS INCORPORATED+ 596,400
6,800 PLEXUS CORPORATION+ 453,050
7,900 POWERWAVE TECHNOLOGIES
INCORPORATED+ 987,500
</TABLE>
154
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
4,600 PROXIM INCORPORATED+ $ 550,563
19,700 READ-RITE CORPORATION+ 92,344
6,800 ROYAL APPLIANCE MANUFACTURING
COMPANY+ 33,575
4,400 SALTON INCORPORATED+ 190,850
13,200 SILICON VALLEY GROUP+ 363,000
14,100 SLI INCORPORATED 239,700
11,600 SPEEDFAM INTERNATIONAL
INCORPORATED+ 230,550
6,100 STANDARD MICROSYSTEMS
CORPORATION+ 88,831
5,900 SYMMETRICOM INCORPORATED+ 62,318
6,400 TECHNITROL INCORPORATED 372,800
10,600 TELEDYNE TECHNOLOGIES
INCORPORATED+ 184,175
6,200 THOMAS INDUSTRIES INCORPORATED 116,250
4,800 THREE-FIVE SYSTEMS
INCORPORATED+ 288,000
13,600 VALENCE TECHNOLOGY
INCORPORATED+ 320,450
16,300 VICOR CORPORATION+ 293,400
8,900 WINDMERE-DURABLE HOLDINGS
INCORPORATED+ 131,275
6,000 ZIXIT CORPORATION+ 436,875
26,682,062
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 4.33%
15,200 BILLING INFORMATION CONCEPTS
CORPORATION+ 106,875
20,900 BIO-TECHNOLOGY GENERAL
CORPORATION+ 323,950
7,500 CDI CORPORATION+ 142,500
12,800 CEPHALON INCORPORATED+ 480,000
9,900 COR THERAPEUTICS INCORPORATED+ 652,626
5,700 F.Y.I. INCORPORATED+ 154,613
8,000 FRANKLIN COVEY COMPANY+ 58,000
11,200 INCYTE PHARMACEUTICALS
INCORPORATED+ 974,400
56,600 MARCHFIRST INCORPORATED+ 2,019,913
8,300 MAXIMUS INCORPORATED+ 253,150
14,200 MEDQUIST INCORPORATED+ 386,063
8,800 NFO WORLDWIDE INCORPORATED+ 193,600
12,000 ORGANOGENESIS INCORPORATED+ 144,750
9,700 PHARMACEUTICAL PRODUCT
DEVELOPMENT INCORPORATED+ 164,293
19,200 PROFIT RECOVERY GROUP
INTERNATIONAL INCORPORATED+ 355,200
12,300 REGENERON PHARMACEUTICALS
INCORPORATED+ 363,618
5,100 STONE & WEBSTER INCORPORATED 73,950
15,200 TETRA TECH INCORPORATED+ 361,000
6,300 URS CORPORATION+ 82,688
33,800 US ONCOLOGY INCORPORATED+ 152,100
7,443,289
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.81%
3,700 ALLIANT TECHSYSTEMS
INCORPORATED+ 217,837
14,400 APTARGROUP INCORPORATED 384,300
2,800 BUTLER MANUFACTURING COMPANY 68,425
11,800 GRIFFON CORPORATION+ 92,188
3,300 INSTEEL INDUSTRIES
INCORPORATED 18,562
</TABLE>
155
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT (continued)
6,100 MATERIAL SCIENCES CORPORATION+ $ 82,350
10,600 STURM, RUGER & COMPANY
INCORPORATED 92,750
18,500 TOWER AUTOMOTIVE INCORPORATED+ 302,938
10,400 WATTS INDUSTRIES INCORPORATED 128,700
1,388,050
------------
FINANCIAL SERVICES - 0.13%
9,400 JEFFERIES GROUP INCORPORATED 215,025
------------
FOOD & KINDRED PRODUCTS - 1.42%
4,000 AGRIBRANDS INTERNATIONAL
INCORPORATED+ 157,250
7,200 AMERICAN ITALIAN PASTA
COMPANY+ 177,300
7,700 BERINGER WINE ESTATES HOLDINGS
INCORPORATED+ 276,237
7,100 CANANDAIGUA BRANDS
INCORPORATED+ 362,100
3,400 COCA-COLA BOTTLING COMPANY 179,987
14,700 CORN PRODUCTS INTERNATIONAL
INCORPORATED 353,719
16,700 EARTHGRAINS COMPANY 248,413
3,600 J&J SNACK FOODS CORPORATION+ 71,550
12,000 RALCORP HOLDINGS INCORPORATED+ 174,000
22,200 SMITHFIELD FOODS INCORPORATED+ 444,000
2,444,556
------------
FOOD STORES - 0.27%
4,800 PANERA BREAD COMPANY CLASS A+ 36,000
10,200 WHOLE FOODS MARKET
INCORPORATED+ 422,663
458,663
------------
FURNITURE & FIXTURES - 0.49%
4,800 BASSETT FURNITURE INDUSTRIES
INCORPORATED 67,200
16,100 ETHAN ALLEN INTERIORS
INCORPORATED 402,500
24,200 LA-Z-BOY INCORPORATED 372,075
841,775
------------
GENERAL MERCHANDISE STORES - 0.88%
13,200 99 CENTS ONLY STORES+ 518,100
11,500 AMES DEPARTMENT STORES
INCORPORATED+ 282,469
20,800 CASEY'S GENERAL STORES
INCORPORATED 226,200
3,100 GC COMPANIES INCORPORATED+ 107,725
5,000 GOTTSCHALKS INCORPORATED+ 26,250
12,000 SHOPKO STORES INCORPORATED+ 213,000
17,500 STEIN MART INCORPORATED+ 144,375
1,518,119
------------
HEALTH SERVICES - 1.98%
23,300 COVENTRY HEALTH CARE
INCORPORATED+ 198,050
4,000 CURATIVE HEALTH SERVICES
INCORPORATED+ 24,000
9,900 ENZO BIOCHEM INCORPORATED+ 697,950
12,700 HOOPER HOLMES INCORPORATED 435,768
14,400 IDEXX LABORATORIES
INCORPORATED+ 335,700
</TABLE>
156
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HEALTH SERVICES (continued)
9,900 LASER VISION CENTERS
INCORPORATED+ $ 68,680
12,600 MAGELLAN HEALTH SERVICES
INCORPORATED+ 60,638
19,000 ORTHODONTIC CENTERS OF AMERICA
INCORPORATED+ 356,250
6,100 PEDIATRIX MEDICAL GROUP
INCORPORATED+ 44,225
17,600 RENAL CARE GROUP INCORPORATED+ 381,700
10,600 SIERRA HEALTH SERVICES
INCORPORATED+ 52,338
4,700 SYNCOR INTERNATIONAL
CORPORATION+ 155,100
12,100 UNIVERSAL HEALTH SERVICES
INCORPORATED+ 592,900
3,403,299
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION -- CONTRACTORS - 0.15%
16,100 FOSTER WHEELER CORPORATION 108,675
20,600 MORRISON KNUDSEN CORPORATION+ 151,925
260,600
------------
HOLDING & OTHER INVESTMENT OFFICES - 0.08%
7,500 DBT ONLINE INCORPORATED+ 139,219
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.73%
14,300 BOMBAY COMPANY INCORPORATED+ 47,369
8,100 COST PLUS INCORPORATED+ 273,881
15,500 LINENS 'N THINGS INCORPORATED+ 530,875
8,100 MICROAGE INCORPORATED+ 18,985
37,400 PIER 1 IMPORTS INCORPORATED 383,350
1,254,460
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 0.27%
17,200 AZTAR CORPORATION+ 163,400
11,800 MARCUS CORPORATION 152,663
19,300 PRIME HOSPITALITY CORPORATION+ 139,925
455,988
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.79%
14,200 ANIXTER INTERNATIONAL
INCORPORATED+ 395,825
8,200 APEX INCORPORATED+ 304,425
15,400 APPLIED POWER INCORPORATED 438,900
7,500 ASTEC INDUSTRIES INCORPORATED+ 199,218
10,800 AUSPEX SYSTEMS INCORPORATED 118,800
7,700 BLACK BOX CORPORATION+ 533,105
7,600 CYBEX COMPUTER PRODUCTS
CORPORATION+ 285,950
6,800 DRIL-QUIP INCORPORATED+ 320,450
7,900 ELECTROGLAS INCORPORATED+ 270,575
9,000 EXABYTE CORPORATION+ 66,937
14,200 FEDDERS CORPORATION 78,987
5,800 FLOW INTERNATIONAL
CORPORATION+ 68,150
5,900 GARDNER DENVER INCORPORATED+ 110,994
8,000 GRACO INCORPORATED 232,000
11,700 IDEX CORPORATION 318,825
21,500 KOMAG INCORPORATED+ 81,632
</TABLE>
157
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
9,300 KULICKE & SOFFA INDUSTRIES
INCORPORATED+ $ 595,781
22,600 LENNOX INTERNATIONAL
INCORPORATED 197,750
4,900 LINDSAY MANUFACTURING COMPANY 83,913
10,200 MANITOWOC COMPANY INCORPORATED 276,038
6,500 MICRO SYSTEMS INCORPORATED+ 409,094
18,400 PAXAR CORPORATION+ 177,100
4,300 ROBBINS & MYERS INCORPORATED 101,588
7,000 SCOTT TECHNOLOGIES
INCORPORATED+ 132,125
5,000 SPS TECHNOLOGIES INCORPORATED+ 152,500
6,400 TELXON CORPORATION 112,400
5,000 TORO COMPANY 149,688
8,400 ULTRATECH STEPPER
INCORPORATED+ 119,700
9,300 VALMONT INDUSTRIES
INCORPORATED 160,425
12,200 VARIAN MEDICAL SYSTEMS
INCORPORATED+ 556,625
11,500 WATSCO INCORPORATED 120,031
11,700 XIRCOM INCORPORATED+ 432,900
12,400 ZEBRA TECHNOLOGIES
CORPORATION+ 620,000
8,222,431
------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.42%
14,500 ARTHUR J. GALLAGHER & COMPANY 471,250
5,200 E.W. BLANCH HOLDINGS
INCORPORATED 104,000
5,200 HILB ROGAL AND HAMILTON
COMPANY 142,025
717,275
------------
INSURANCE CARRIERS - 1.87%
8,500 ADVANCE PARADIGM INCORPORATED+ 100,937
8,100 DELPHI FINANCIAL GROUP
CLASS A+ 246,037
15,000 ENHANCE FINANCIAL SERVICES
GROUP INCORPORATED 211,875
26,400 FIDELITY NATIONAL FINANCIAL
INCORPORATED 364,650
25,700 FIRST AMERICAN FINANCIAL
INCORPORATED 364,619
27,600 FREMONT GENERAL CORPORATION 163,875
17,200 MUTUAL RISK MANAGEMENT LIMITED 344,000
14,600 RADIAN GROUP INCORPORATED 695,325
3,900 RLI CORPORATION 130,650
4,800 SCPIE HOLDINGS INCORPORATED 147,000
10,800 SELECTIVE INSURANCE GROUP
INCORPORATED 184,275
7,300 TRENWICK GROUP INCORPORATED 103,113
6,800 ZENITH NATIONAL INSURANCE
CORPORATION 150,875
3,207,231
------------
LEATHER & LEATHER PRODUCTS - 0.54%
7,200 BROWN SHOE COMPANY
INCORPORATED 86,400
10,000 JUSTIN INDUSTRIES 180,000
4,200 K-SWISS INCORPORATED 62,213
8,200 TIMBERLAND COMPANY+ 418,200
</TABLE>
158
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
LEATHER & LEATHER PRODUCTS (continued)
16,300 WOLVERINE WORLD WIDE
INCORPORATED $ 179,300
926,113
------------
LEGAL SERVICES - 0.15%
8,900 PRE-PAID LEGAL SERVICES
INCORPORATED+ 264,219
------------
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION - 0.00%
5,700 RURAL/METRO CORPORATION+ 6,769
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.21%
18,800 CHAMPION ENTERPRISES
INCORPORATED+ 108,100
4,900 DELTIC TIMBER CORPORATION 116,069
18,600 OAKWOOD HOMES CORPORATION 70,913
3,400 SKYLINE CORPORATION 73,737
368,819
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS - 4.01%
8,100 ADAC LABORATORIES+ 111,375
3,500 AMCAST INDUSTRIAL CORPORATION 32,156
5,000 ANALOGIC CORPORATION 184,375
9,800 COHERENT INCORPORATED+ 509,600
7,800 COHU INCORPORATED 325,162
6,000 CONMED CORPORATION+ 150,375
5,500 COOPER COMPANIES INCORPORATED 177,030
6,400 CUNO INCORPORATED+ 173,600
9,800 CYGNUS INCORPORATED+ 142,100
5,900 DATASCOPE CORPORATION 187,325
5,400 DIAGNOSTIC PRODUCTS
CORPORATION 131,962
6,800 ESTERLINE TECHNOLOGIES
CORPORATION+ 88,400
12,600 FOSSIL INCORPORATED+ 295,312
7,500 HANGER ORTHOPEDIC GROUP
INCORPORATED+ 39,844
6,100 HOLOGIC INCORPORATED+ 48,419
20,000 INPUT/OUTPUT INCORPORATED+ 122,500
5,100 INTERMAGNETICS GENERAL
CORPORATION+ 86,700
11,800 INVACARE CORPORATION 323,763
6,400 IONICS INCORPORATED+ 163,600
9,600 MENTOR CORPORATION 259,200
2,300 NASHUA CORPORATION+ 19,263
5,600 OSTEOTECH INCORPORATED+ 74,900
19,200 PINNACLE SYSTEMS INCORPORATED+ 638,400
5,900 RESMED INCORPORATED+ 421,113
11,500 RESPIRONICS INCORPORATED+ 165,313
11,900 ROPER INDUSTRIES INCORPORATED 403,856
9,800 SOLA INTERNATIONAL
INCORPORATED+ 60,025
3,700 SPACELABS MEDICAL
INCORPORATED+ 58,969
18,400 SUMMIT TECHNOLOGY
INCORPORATED+ 167,900
8,800 SUNRISE MEDICAL INCORPORATED+ 55,000
8,000 TECHNE CORPORATION+ 552,000
11,600 THERAGENICS CORPORATION+ 155,150
</TABLE>
159
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS (continued)
8,900 TRIMBLE NAVIGATION LTD.+ $ 229,175
6,900 WESLEY JESSEN VISIONCARE
INCORPORATED+ 247,968
8,400 X-RITE INCORPORATED 85,050
6,886,880
------------
METAL MINING - 0.43%
6,400 BRUSH WELLMAN INCORPORATED 112,800
11,500 COEUR D'ALENE MINES
CORPORATION+ 33,781
14,900 STILLWATER MINING COMPANY+ 596,000
742,581
------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.21%
10,600 AMCOL INTERNATIONAL
CORPORATION 162,975
7,300 FLORIDA ROCK INDUSTRIES
INCORPORATED 204,400
367,375
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.28%
6,700 CROSS (A.T.) COMPANY+ 39,363
7,400 JAKKS PACIFIC INCORPORATED+ 159,563
8,900 JAN BELL MARKETING
INCORPORATED+ 25,587
7,100 K2 INCORPORATED 56,356
6,200 LYDALL INCORPORATED+ 54,250
8,100 RUSS BERRIE & COMPANY
INCORPORATED 149,850
484,969
------------
MISCELLANEOUS RETAIL - 0.95%
6,500 ACTION PERFORMANCE COMPANIES
INCORPORATED+ 86,530
7,100 BOOKS-A-MILLION INCORPORATED+ 42,600
10,000 CASH AMERICA INTERNATIONAL
INCORPORATED 124,375
2,200 DAMARK INTERNATIONAL
INCORPORATEDCLASS A+ 83,875
7,500 HANCOCK FABRICS INCORPORATED 21,563
7,000 JO-ANN STORES INCORPORATED+ 58,625
3,500 LILLIAN VERNON CORPORATION 33,250
12,200 MICHAELS STORES INCORPORATED+ 497,150
12,600 SPORTS AUTHORITY INCORPORATED+ 32,288
13,800 ZALE CORPORATION+ 651,188
1,631,444
------------
MOTION PICTURES - 0.11%
9,400 AVID TECHNOLOGY INCORPORATED+ 168,025
4,500 CARMIKE CINEMAS INCORPORATED+ 24,469
192,494
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.97%
12,600 AMERICAN FREIGHTWAYS
CORPORATION+ 188,212
7,800 ARKANSAS BEST CORPORATION+ 81,900
6,400 FROZEN FOOD EXPRESS INDUSTRIES
INCORPORATED 21,600
11,800 HEARTLAND EXPRESS
INCORPORATED+ 165,753
</TABLE>
160
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (continued)
3,800 LANDSTAR SYSTEM INCORPORATED+ $ 208,050
4,800 M.S. CARRIERS INCORPORATED+ 112,800
10,400 USFREIGHTWAYS CORPORATION 389,350
18,700 WERNER ENTERPRISES
INCORPORATED 317,900
9,800 YELLOW CORPORATION+ 180,688
1,666,253
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.28%
29,500 AMERICREDIT CORPORATION+ 481,219
------------
OIL & GAS EXTRACTION - 2.97%
5,400 ATWOOD OCEANICS INCORPORATED+ 358,087
9,900 CABOT OIL AND GAS CORPORATION 178,818
6,100 CAL DIVE INTERNATIONAL
INCORPORATED+ 309,575
19,200 CROSS TIMBERS OIL COMPANY 250,800
7,400 HS RESOURCES INCORPORATED+ 156,325
16,400 NEWFIELD EXPLORATION COMPANY+ 578,100
9,000 OCEANEERING INTERNATIONAL
INCORPORATED+ 168,750
7,100 PLAINS RESOURCES INCORPORATED+ 88,750
15,800 POGO PRODUCING COMPANY 451,287
23,800 PRIDE INTERNATIONAL
INCORPORATED+ 542,938
8,400 REMINGTON OIL & GAS
CORPORATION+ 35,175
4,400 SEACOR SMIT INCORPORATED+ 265,650
9,600 SEITEL INCORPORATED+ 76,200
4,400 ST. MARY LAND & EXPLORATION
COMPANY 131,450
7,200 STONE ENERGY CORPORATION+ 354,600
5,300 TETRA TECHNOLOGIES
INCORPORATED+ 70,888
17,600 TUBOSCOPE VETCO INTERNATIONAL
CORPORATION+ 299,200
10,200 VERITAS DGC INCORPORATED+ 286,875
24,600 VINTAGE PETROLEUM INCORPORATED 495,075
5,098,543
------------
PAPER & ALLIED PRODUCTS - 0.42%
13,800 BUCKEYE TECHNOLOGIES
INCORPORATED+ 243,225
5,900 POPE & TALBOT INCORPORATED 108,412
4,700 REPUBLIC GROUP INCORPORATED 50,525
6,200 SCHWEITZER-MAUDUIT
INTERNATIONAL INCORPORATED 80,213
10,800 SHOREWOOD PACKAGING
CORPORATION+ 231,525
713,900
------------
PERSONAL SERVICES - 0.30%
3,400 ANGELICA CORPORATION 33,788
3,600 CPI CORPORATION 83,925
8,100 G & K SERVICES INCORPORATED 158,330
16,100 REGIS CORPORATION 238,481
514,524
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.23%
7,700 ELCOR CORPORATION 265,650
</TABLE>
161
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PETROLEUM REFINING & RELATED INDUSTRIES (continued)
6,100 WD-40 $ 128,100
393,750
------------
PRIMARY METAL INDUSTRIES - 1.78%
9,600 BELDEN INCORPORATED 264,000
12,000 BIRMINGHAM STEEL CORPORATION 61,500
6,600 COMMONWEALTH INDUSTRIES
INCORPORATED 59,812
20,000 COMMSCOPE INCORPORATED+ 912,500
6,500 IMCO RECYCLING INCORPORATED 71,906
10,000 INTERMET CORPORATION 91,250
13,800 MUELLER INDUSTRIES
INCORPORATED+ 419,175
5,600 QUANEX CORPORATION 100,800
8,200 RTI INTERNATIONAL METALS+ 72,263
18,900 STEEL DYNAMICS INCORPORATED+ 218,531
4,300 STEEL TECHNOLOGIES
INCORPORATED 34,131
8,300 TEXAS INDUSTRIES INCORPORATED 258,338
14,700 TREDEGAR CORPORATION 395,981
5,700 WHX CORPORATION+ 39,188
5,000 WOLVERINE TUBE INCORPORATED+ 64,063
3,063,438
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.32%
14,500 BOWNE & COMPANY INCORPORATED 186,688
5,600 CONSOLIDATED GRAPHICS
INCORPORATED+ 71,750
11,900 JOHN H. HARLAND COMPANY 160,650
5,300 NEW ENGLAND BUSINESS SERVICE
INCORPORATED 91,425
5,600 THOMAS NELSON INCORPORATED 44,450
554,963
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.03%
8,100 TITAN INTERNATIONAL
INCORPORATED 58,219
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.67%
4,900 DAIN RAUSCHER CORPORATION 323,093
13,900 EATON VANCE CORPORATION 596,831
11,500 MORGAN KEEGAN INCORPORATED 201,250
6,700 NATIONAL DISCOUNT BROKERS
GROUP INCORPORATED+ 330,813
10,400 PIONEER GROUP INCORPORATED+ 241,800
18,100 RAYMOND JAMES FINANCIAL
INCORPORATED 375,575
7,000 SEI INVESTMENTS COMPANY 794,063
2,863,425
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.77%
28,900 GENTEX CORPORATION+ 1,071,106
6,300 LIBBEY INCORPORATED 172,463
5,000 STANDEX INTERNATIONAL
CORPORATION 77,500
1,321,069
------------
</TABLE>
162
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TEXTILE MILL PRODUCTS - 0.26%
10,000 CONE MILLS CORPORATION+ $ 43,125
4,600 DIXIE GROUP INCORPORATED 20,413
7,600 GUILFORD MILLS INCORPORATED 58,425
20,700 INTERFACE INCORPORATED 87,975
3,000 OXFORD INDUSTRIES INCORPORATED 54,375
9,300 TRIARC COMPANIES INCORPORATED+ 186,000
450,313
------------
TRANSPORTATION BY AIR - 0.69%
7,300 ATLANTIC COAST AIRLINES
HOLDINGS+ 188,887
11,400 EGL INCORPORATED+ 266,475
13,500 MESA AIR GROUP INCORPORATED+ 84,375
5,600 MIDWEST EXPRESS HOLDINGS
INCORPORATED+ 143,500
8,300 OFFSHORE LOGISTICS
INCORPORATED+ 115,163
9,700 SKYWEST INCORPORATED 379,513
1,177,913
------------
TRANSPORTATION EQUIPMENT - 1.76%
9,200 A. O. SMITH CORPORATION 165,600
10,700 AAR CORPORATION 178,556
9,900 ARTIC CAT INCORPORATED 101,475
9,800 BE AEROSPACE INCORPORATED+ 57,575
9,500 CLARCOR INCORPORATED 168,625
6,200 COACHMEN INDUSTRIES
INCORPORATED 85,638
12,900 FLEETWOOD ENTERPRISES
INCORPORATED 190,275
15,700 FRIEDE GOLDMAN HALTER
INCORPORATED+ 107,938
16,500 GENCORP INCORPORATED 127,875
8,400 GROUP 1 AUTOMOTIVE
INCORPORATED+ 97,650
4,000 HUFFY CORPORATION 17,500
17,500 JLG INDUSTRIES INCORPORATED 159,688
8,800 KROLL-O'GARA COMPANY+ 96,250
7,400 MONACO COACH CORPORATION+ 140,600
14,700 ORBITAL SCIENCES CORPORATION+ 220,500
9,600 POLARIS INDUSTRIES
INCORPORATED 289,200
8,300 REGAL-BELOIT CORPORATION 145,250
7,100 SIMPSON INDUSTRIES
INCORPORATED 69,669
4,900 SPARTAN MOTORS INCORPORATED 20,213
5,100 STANDARD MOTOR PRODUCTS
INCORPORATED 75,863
13,300 TENNECO AUTOMOTIVE
INCORPORATED 105,568
4,800 THOR INDUSTRIES INCORPORATED 116,700
9,100 WABASH NATIONAL CORPORATION 126,830
8,600 WINNEBAGO INDUSTRIES
INCORPORATED 155,337
3,020,375
------------
TRANSPORTATION SERVICES - 0.65%
6,800 CIRCLE INTERNATIONAL GROUP
INCORPORATED 176,800
19,900 EXPEDITORS INTERNATIONAL OF
WASHINGTON INCORPORATED 791,025
</TABLE>
163
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
TRANSPORTATION SERVICES (continued)
14,400 FRITZ COMPANIES INCORPORATED+ $ 145,800
1,113,625
------------
WATER TRANSPORTATION - 0.11%
9,700 KIRBY CORPORATION+ 191,575
------------
WHOLESALE TRADE -- DURABLE GOODS - 2.24%
8,200 APPLIED INDUSTRIAL
TECHNOLOGIES INCORPORATED 131,200
5,900 AVIATION SALES COMPANY+ 37,244
7,500 BARNES GROUP INCORPORATED 108,750
5,000 BUILDING MATERIALS HOLDING
CORPORATION+ 45,313
5,500 CASTLE (A.M.) & COMPANY 68,750
5,700 COMMERCIAL METALS COMPANY 157,463
6,800 DEPARTMENT 56 INCORPORATED+ 100,725
5,900 DIGI INTERNATIONAL
INCORPORATED+ 54,575
19,200 HA-LO INDUSTRIES INCORPORATED+ 151,200
9,300 HUGHES SUPPLY INCORPORATED 144,150
10,200 INSIGHT ENTERPRISES
INCORPORATED+ 371,663
9,200 KAMAN CORPORATION CLASS A 89,700
11,100 KENT ELECTRONICS CORPORATION+ 323,981
4,100 LAWSON PRODUCTS INCORPORATED 97,631
17,600 MASCOTECH INCORPORATED 206,800
12,900 OWENS & MINOR INCORPORATED
HOLDING COMPANY 137,063
13,300 PATTERSON DENTAL COMPANY+ 508,725
10,700 PIONEER-STANDARD ELECTRONICS
INCORPORATED 168,525
11,000 RELIANCE STEEL & ALUMINUM
COMPANY 246,125
4,700 SIMPSON MANUFACTURING COMPANY
INCORPORATED+ 185,650
7,600 SPECIALTY EQUIPMENT COMPANIES
INCORPORATED+ 157,700
8,300 TBC CORPORATION+ 42,018
8,000 UNIVERSAL FOREST PRODUCTS
INCORPORATED 99,000
4,900 VITAL SIGNS INCORPORATED 112,393
7,400 WYNN'S INTERNATIONAL
INCORPORATED 102,212
3,848,556
------------
WHOLESALE TRADE -- NONDURABLE GOODS - 1.82%
12,800 BARRETT RESOURCES CORPORATION+ 381,600
13,300 BINDLEY WESTERN INDUSTRIES
INCORPORATED 180,381
10,000 CARAUSTAR INDUSTRIES
INCORPORATED 141,250
17,500 DIMON INCORPORATED 41,563
5,300 ENESCO GROUP INCORPORATED 37,431
15,300 FLEMING COS. INCORPORATED 230,456
7,200 HAIN FOOD GROUP INCORPORATED+ 203,850
16,500 MEN'S WEARHOUSE INCORPORATED+ 488,813
7,900 MYERS INDUSTRIES INCORPORATED 94,800
4,500 NASH-FINCH COMPANY 36,563
5,600 PERFORMANCE FOOD GROUP
COMPANY+ 122,500
8,600 PRIORITY HEALTHCARE
CORPORATION+ 432,150
</TABLE>
164
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
WHOLESALE TRADE -- NONDURABLE GOODS (continued)
17,600 STRIDE RITE CORPORATION $ 141,900
7,200 UNITED NATURAL FOODS
INCORPORATED+ 108,000
13,400 UNITED STATIONERS
INCORPORATED+ 478,212
3,119,469
------------
155,953,270
TOTAL COMMON STOCK (COST $145,391,293)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 8.65%
REPURCHASE AGREEMENTS - 8.12%
$13,941,928 GOLDMAN SACHS POOLED
REPURCHASE AGREEMENT - 102%
COLLATEERALIZED BY U.S.
GOVERNMENT SECURITIES 6.35% 04/03/00 13,941,928
U.S. TREASURY BILLS - 0.53%
390,000 U.S. TREASURY BILLS 4.66{::} 04/27/00 388,470
495,000 U.S. TREASURY BILLS 4.70{::} 04/27/00 493,060
15,000 U.S. TREASURY BILLS 5.13{::} 04/27/00 14,941
20,000 U.S. TREASURY BILLS 5.08{::} 04/27/00 19,922
916,393
------------
14,858,321
TOTAL SHORT-TERM INSTRUMENTS (COST
$14,911,066)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $160,302,359)* 99.48% $170,811,591
OTHER ASSETS AND LIABILITIES, NET 0.52 896,902
------- ------------
TOTAL NET ASSETS 100.00% $171,708,493
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $41,556,911
GROSS UNREALIZED DEPRECIATION (31,047,679)
-----------
NET UNREALIZED APPRECIATION $10,509,232
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
165
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 93.75%
AMUSEMENT & RECREATION SERVICES - 1.09%
222,300 WMS INDUSTRIES INCORPORATED+ $ 2,195,213
------------
APPAREL & ACCESSORY STORES - 4.45%
128,100 HOT TOPIC INCORPORATED+ 4,483,500
76,110 TALBOTS INCORPORATED 4,480,976
8,964,476
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 2.50%
138,000 AVIS GROUP HOLDINGS
INCORPORATED+ 2,432,250
151,710 DOLLAR THRIFTY AUTOMOTIVE
GROUP INCORPORATED+ 2,607,516
5,039,766
------------
BUILDING CONSTRUCTION -- GENERAL CONTRACTORS & OPERATIVE BUILDERS - 1.31%
48,820 NVR INCORPORATED+ 2,636,280
------------
BUSINESS SERVICES - 1.67%
55,840 KRONOS INCORPORATED+ 1,654,260
95,595 THQ INCORPORATED+ 1,708,761
3,363,021
------------
CHEMICALS & ALLIED PRODUCTS - 3.94%
81,600 ALPHARMA INCORPORATED 2,998,800
78,187 JONES PHARMA INCORPORATED 2,374,930
187,300 NBTY INCORPORATED+ 2,563,669
7,937,399
------------
COMMUNICATIONS - 1.88%
162,320 LIGHTBRIDGE INCORPORATED+ 3,794,230
------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS - 4.88%
136,200 INSITUFORM TECHNOLOGIES -
CLASS A+ 4,171,125
93,130 QUANTA SERVICES INCORPORATED+ 5,651,826
9,822,951
------------
DEPOSITORY INSTITUTIONS - 4.60%
70,700 GREATER BAY BANCORP 2,845,675
51,290 SILICON VALLEY BANCSHARES+ 3,686,469
160,000 STATEN ISLAND BANCORP
INCORPORATED 2,740,000
9,272,144
------------
EATING & DRINKING PLACES - 5.49%
111,000 APPLEBEE'S INTERNATIONAL
INCORPORATED 3,121,875
123,760 JACK IN THE BOX INCORPORATED+ 2,637,635
139,900 RARE HOSPITALITY INTERNATIONAL
INCORPORATED+ 2,719,306
94,425 SONIC CORPORATION+ 2,573,081
11,051,897
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 14.65%
73,600 C&D TECHNOLOGIES INCORPORATED 4,342,400
</TABLE>
166
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
127,370 CABLE DESIGN TECHNOLOGIES
CORPORATION+ $ 4,322,619
95,650 DAVOX CORPORATION+ 2,558,638
47,830 ELECTRO SCIENTIFIC INDUSTRIES
INCORPORATED+ 2,774,140
135,500 LITTELFUSE INCORPORATED+ 4,971,155
65,794 SALTON INCORPORATED+ 2,853,815
65,000 TECHNITROL INCORPORATED 3,786,250
65,000 THREE-FIVE SYSTEMS
INCORPORATED+ 3,900,000
29,509,017
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.22%
71,200 BALL CORPORATION 2,460,850
------------
FOOD & KINDRED PRODUCTS - 1.24%
48,930 CANANDAIGUA BRANDS
INCORPORATED+ 2,495,430
------------
FURNITURE & FIXTURES - 0.98%
128,030 LA-Z-BOY INCORPORATED 1,968,461
------------
HOLDING & OTHER INVESTMENT OFFICES - 1.82%
77,200 AFFILIATED MANAGERS GROUP
INCORPORATED+ 3,667,000
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.52%
160,500 ELECTRONICS BOUTIQUE HOLDINGS
CORPORATION+ 3,069,563
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.40%
110,000 ANIXTER INTERNATIONAL
INCORPORATED+ 3,066,250
142,650 APPLIED SCIENCE & TECHNOLOGY
INCORPORATED+ 4,315,163
95,370 ELECTROGLAS INCORPORATED+ 3,266,423
119,300 IN FOCUS SYSTEMS INCORPORATED+ 4,272,430
14,920,266
------------
INSURANCE CARRIERS - 1.74%
108,450 MONY GROUP INCORPORATED 3,504,291
------------
LEATHER & LEATHER PRODUCTS - 1.57%
241,040 GENESCO INCORPORATED+ 3,163,650
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 7.60%
49,680 ORBOTECH LIMITED+ 4,222,800
126,560 PINNACLE SYSTEMS INCORPORATED+ 4,208,120
117,230 POLYMEDICA CORPORATION+ 6,887,262
15,318,182
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.58%
147,870 JAKKS PACIFIC INCORPORATED+ 3,188,447
------------
MISCELLANEOUS RETAIL - 1.98%
97,930 MICHAELS STORES INCORPORATED+ 3,990,648
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.97%
131,004 AMERICAN FREIGHTWAYS
CORPORATION+ 1,956,872
------------
</TABLE>
167
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
NONDEPOSITORY CREDIT INSTITUTIONS - 3.33%
176,600 AMERICREDIT CORPORATION+ $ 2,880,788
98,600 METRIS COMPANIES INCORPORATED 3,833,075
6,713,863
------------
OIL & GAS EXTRACTION - 2.12%
212,260 VINTAGE PETROLEUM INCORPORATED 4,271,733
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.69%
99,030 SPARTECH CORPORATION 3,404,156
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.62%
75,280 SOUTHWEST SECURITIES GROUP
INCORPORATED 3,269,975
------------
TRANSPORTATION EQUIPMENT - 2.24%
96,430 MONACO COACH CORPORATION+ 1,832,170
148,020 WINNEBAGO INDUSTRIES
INCORPORATED 2,673,611
4,505,781
------------
WHOLESALE TRADE -- DURABLE GOODS - 1.45%
80,300 INSIGHT ENTERPRISES
INCORPORATED+ 2,925,931
------------
WHOLESALE TRADE -- NONDURABLE GOODS - 5.22%
87,000 KENNETH COLE PRODUCTIONS
INCORPORATED+ 3,414,750
127,710 MEN'S WEARHOUSE INCORPORATED+ 3,783,409
93,143 UNITED STATIONERS
INCORPORATED+ 3,324,041
10,522,200
------------
188,903,693
TOTAL COMMON STOCK (COST $148,960,358)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 6.29%
REPURCHASE AGREEMENTS - 6.29%
$12,675,610 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY
U.S. GOVERNMENT SECURITIES 6.22% 04/03/00 12,675,610
12,675,610
TOTAL SHORT-TERM INSTRUMENTS (COST
$12,675,610)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $161,635,968)* 100.04% $201,579,303
OTHER ASSETS AND LIABILITIES, NET (0.04) (81,141)
------- ------------
TOTAL NET ASSETS 100.00% $201,498,162
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $45,899,650
GROSS UNREALIZED DEPRECIATION (5,956,315)
----------
NET UNREALIZED APPRECIATION $39,943,335
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
168
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 98.31%
APPAREL & ACCESSORY STORES - 0.25%
54,600 PACIFIC SUNWEAR OF CALIFORNIA
INCORPORATED+ $ 2,102,100
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
0.25%
175,300 WARNACO GROUP INCORPORATED 2,070,731
------------
AUTO PARTS & EQUIPMENT - 0.03%
14,600 DURA AUTOMOTIVE SYSTEMS
INCORPORATED+ 250,938
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.31%
147,500 COPART INCORPORATED+ 2,581,250
------------
BUILDING CONSTRUCTION -- GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.20%
113,700 DEL WEBB CORPORATION+ 1,684,181
------------
BUSINESS SERVICES - 11.49%
405,000 AUTODESK INCORPORATED 18,427,500
307,700 AVANT! CORPORATION+ 3,846,250
214,700 AWARE INCORPORATED+ 8,614,837
100,300 COGNEX CORPORATION+ 5,786,056
202,700 CSG SYSTEMS INTERNATIONAL
INCORPORATED+ 9,894,293
279,900 ELOYALTY CORPORATION+ 6,682,613
311,000 GENERAL MAGIC INCORPORATED+ 2,779,563
812,050 INFORMIX CORPORATION+ 13,754,096
378,700 MENTOR GRAPHICS CORPORATION+ 5,727,838
561,200 MODIS PROFESSIONAL SERVICES
INCORPORATED+ 6,944,850
151,600 NETZERO INCORPORATED+ 2,311,900
290,300 PROGRESS SOFTWARE CORPORATION+ 6,803,905
506,200 ROMAC INTERNATIONAL
INCORPORATED+ 4,587,438
7,500 VALUECLICK INCORPORATED+ 157,031
96,318,170
------------
CHEMICALS & ALLIED PRODUCTS - 14.55%
72,000 ALKERMES INCORPORATED+ 6,660,000
113,700 ANTIGENICS INCORPORATED+ 2,316,638
203,400 BARR LABORATORIES
INCORPORATED+ 8,542,800
253,700 BIOVAIL CORPORATION
INTERNATIONAL+ 11,242,080
106,500 COR THERAPEUTICS INCORPORATED+ 7,020,682
202,600 CUBIST PHARMACEUTICALS
INCORPORATED+ 8,483,875
303,800 GENZYME CORPORATION+ 15,227,975
230,300 GUILFORD PHARMACEUTICALS
INCORPORATED+ 5,354,475
312,500 INTERMUNE PHARMACEUTICALS
INCORPORATED+ 6,230,469
398,700 IVAX CORPORATION+ 10,864,575
539,000 MYLAN LABORATORIES INC. 14,822,500
129,500 NEUROCRINE BIOSCIENCES
INCORPORATED+ 3,010,875
103,300 REXALL SUNDOWN INCORPORATED+ 1,459,113
366,300 TEVA PHARMACEUTICAL INDUSTRIES
LIMITED ADR 13,667,568
449,900 TRIANGLE PHARMACEUTICALS
INCORPORATED+ 7,085,925
121,989,550
------------
</TABLE>
169
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMUNICATIONS - 5.01%
31,000 ADTRAN INCORPORATED+ $ 1,842,563
60,200 INSIGHT COMMUNICATIONS COMPANY
INCORPORATED+ 1,241,625
313,600 ITC DELTACOM INCORPORATED+ 11,172,000
76,000 MASTEC INCORPORATED+ 6,764,000
121,600 NET2000 COMMUNICATIONS
INCORPORATED+ 2,888,000
232,800 RHYTHMS NETCONNECTIONS
INCORPORATED+ 8,569,950
336,900 SPECTRASITE HOLDINGS
INCORPORATED+ 9,538,481
42,016,619
------------
DEPOSITORY INSTITUTIONS - 2.97%
327,700 AMERICAN FINANCIAL HOLDINGS
INCORPORATED+ 3,952,881
677,700 ROSLYN BANCORP INCORPORATED 12,071,531
323,400 UNIONBANCAL CORPORATION 8,913,713
24,938,125
------------
EATING & DRINKING PLACES - 1.38%
343,400 JACK IN THE BOX INCORPORATED+ 7,318,713
241,200 RUBY TUESDAY INCORPORATED 4,221,000
11,539,713
------------
ELECTRIC, GAS & SANITARY SERVICES - 0.59%
110,500 INDEPENDENT ENERGY HOLDINGS
PLC ADR+ 4,958,688
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 15.54%
187,100 ANTEC CORPORATION+ 8,384,418
164,700 ASPECT COMMUNICATIONS
CORPORATION+ 6,104,193
174,400 ATMEL CORPORATION+ 9,003,400
35,400 COPPER MOUNTAIN NETWORKS
INCORPORATED+ 2,900,588
192,800 DIGITAL MICROWAVE CORPORATION+ 6,531,100
240,000 FAIRCHILD SEMICONDUCTOR
CORPORATION+ 8,760,000
246,600 FSI INTERNATIONAL
INCORPORATED+ 5,055,300
416,000 GENERAL SEMICONDUCTOR
INCORPORATED+ 7,176,000
266,200 INTEGRATED DEVICE TECHNOLOGY
INCORPORATED+ 10,548,174
128,600 LATTICE SEMICONDUCTOR
CORPORATION+ 8,704,613
149,900 MATTSON TECHNOLOGY
INCORPORATED+ 6,389,488
197,000 OPTIMAL ROBOTICS CORPORATION+ 9,259,000
250,200 P-COM INCORPORATED+ 4,628,700
79,700 PHOTRONICS INCORPORATED+ 2,814,406
86,800 PLEXUS CORPORATION+ 5,783,050
231,400 REMEC INCORPORATED+ 11,685,700
126,600 TEKELEC+ 4,700,024
55,800 VARIAN SEMICONDUCTOR EQUIPMENT
ASSOCIATES INCORPORATED+ 3,550,275
537,500 VIASYSTEMS GROUP INCORPORATED+ 8,331,250
130,309,679
------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 2.60%
235,700 CEPHALON INCORPORATED+ 8,838,750
64,800 GENE LOGIC INCORPORATED+ 2,725,650
</TABLE>
170
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (continued)
136,100 UNITEDGLOBALCOM INCORPORATED+ $ 10,216,006
21,780,406
------------
FOOD & KINDRED PRODUCTS - 0.67%
227,400 AMERICAN ITALIAN PASTA
COMPANY+ 5,599,725
------------
FOOD STORES - 1.57%
317,300 WHOLE FOODS MARKET
INCORPORATED+ 13,148,119
------------
HEALTH SERVICES - 3.42%
462,000 HEALTH MANAGEMENT ASSOCIATES
INCORPORATED+ 6,583,500
318,500 LINCARE HOLDINGS INCORPORATED+ 9,037,437
248,300 ORTHODONTIC CENTERS OF AMERICA
INCORPORATED+ 4,655,625
388,200 RENAL CARE GROUP INCORPORATED+ 8,419,088
28,695,650
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.71%
173,200 LINENS 'N THINGS INCORORATED+ 5,932,100
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.17%
132,900 CYBEX COMPUTER PRODUCTS
CORPORATION+ 5,000,363
215,500 ELECTROGLAS INCORPORATED+ 7,380,875
298,400 HARRIS CORPORATION 10,313,450
146,900 KULICKE AND SOFFA INDUSTRIES
INCORPORATED+ 9,410,781
12,800 NATCO GROUP INCORPORATED+ 134,400
264,000 PENTAIR INCORPORATED 9,784,500
150,000 T/R SYSTEMS INCORPORATED+ 3,337,500
139,500 VARIAN MEDICAL SYSTEMS
INCORPORATED+ 6,364,686
51,726,555
------------
INSURANCE CARRIERS - 3.13%
274,700 ANNUITY & LIFE RE (HOLDINGS)
LIMITED+ 7,142,200
241,200 EVEREST RE GROUP LIMITED 7,869,150
236,500 RADIAN GROUP INCORPORATED 11,263,313
26,274,663
------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 1.19%
719,700 LOUISIANA-PACIFIC CORPORATION 9,985,838
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.85%
66,100 ANAREN MIRCROWAVE
INCORPORATED+ 6,337,337
124,200 COOPER COMPANIES INCORPORATED 3,997,688
94,400 CYMER INCORPORATED+ 4,720,000
220,300 HAEMONETICS CORPORATION+ 4,956,750
134,600 LTX CORPORATION+ 6,082,238
73,000 ORBOTECH LIMITED+ 6,205,000
32,299,013
------------
MISCELLANEOUS RETAIL - 5.02%
638,600 BORDERS GROUP INCORPORATED+ 10,975,938
</TABLE>
171
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
MISCELLANEOUS RETAIL (continued)
259,500 MICHAELS STORES INCORPORATED+ $ 10,574,625
891,400 OFFICE DEPOT INCORPORATED+ 10,306,813
169,700 STAMPS.COM INCORPORATED+ 3,277,331
210,700 TECH DATA CORPORATION+ 6,926,762
42,061,469
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.52%
252,975 SWIFT TRANSPORTATION COMPANY
INCORPORATED+ 5,185,988
200,800 USFREIGHTWAYS CORPORATION 7,517,450
12,703,438
------------
NONDEPOSITORY CREDIT INSTITUTIONS - 0.55%
201,100 HELLER FINANCIAL INCORPORATED 4,650,438
------------
OIL & GAS EXTRACTION - 5.34%
200,000 DEVON ENERGY CORPORATION 9,712,500
381,600 PRECISION DRILLING
CORPORATION+ 12,735,900
263,900 SANTA FE INTERNATIONAL
CORPORATION 9,764,300
224,000 SPINNAKER EXPLORATION COMPANY+ 5,096,000
235,400 TIDEWATER INCORPORATED 7,488,663
44,797,363
------------
PAPER & ALLIED PRODUCTS - 0.71%
563,500 PACKAGING CORPORATION OF
AMERICA+ 5,916,750
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.83%
225,900 VALERO ENERGY CORPORATION 6,918,188
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.63%
125,000 HOUGHTON MIFFLIN COMPANY 5,304,688
------------
REAL ESTATE - 0.79%
79,100 INTRAWEST CORPORATION 1,334,813
187,800 NEWHALL LAND & FARMING COMPANY 5,305,350
6,640,163
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.69%
88,100 DAIN RAUSCHER CORPORATION 5,809,094
------------
TRANSPORTATION BY AIR - 0.71%
152,900 SKYWEST INCORPORATED 5,982,213
------------
TRANSPORTATION EQUIPMENT - 0.66%
178,500 OSHKOSH TRUCK CORPORATION 5,544,656
------------
WHOLESALE TRADE -- DURABLE GOODS - 4.98%
192,400 ACT MANUFACTURING
INCORPORATED+ 10,762,375
590,400 INGRAM MICRO INCORPORATED+ 9,077,400
27,700 PATTERSON DENTAL COMPANY+ 1,059,525
512,900 SYBRON INTERNATIONAL
CORPORATION+ 14,874,100
</TABLE>
172
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
WHOLESALE TRADE -- DURABLE GOODS (continued)
366,300 TOWER AUTOMOTIVE INCORPORATED+ $ 5,998,163
41,771,563
------------
824,301,836
TOTAL COMMON STOCK (COST $646,566,458)
------------
<CAPTION>
PRINCIPAL INTEREST RATE MATURITY DATE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.39%
REPURCHASE AGREEMENTS - 2.39%
$20,029,571 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.22% 04/03/00 20,029,571
20,029,571
TOTAL SHORT-TERM INSTRUMENTS (COST
$20,029,571)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $666,596,029)* 100.70% $844,331,407
OTHER ASSETS AND LIABILITIES, NET (0.70) ( 5,848,442)
------- ------------
TOTAL NET ASSETS 100.00% $838,482,965
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $205,891,343
GROSS UNREALIZED DEPRECIATION (28,155,965)
-----------
NET UNREALIZED APPRECIATION $177,735,378
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
173
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
COMMON STOCK - 97.25%
AMUSEMENT & RECREATION SERVICES - 2.11%
151,619 ARGOSY GAMING COMPANY+ $ 2,160,571
84,800 PINNACLE ENTERTAINMENT
INCORPORATED+ 1,722,500
3,883,071
------------
APPAREL & ACCESSORY STORES - 0.88%
43,000 AMERICAN EAGLE OUTFITTERS
INCORPORATED+ 1,631,313
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS -
1.78%
225,462 PHILLIPS-VAN HEUSEN
CORPORATION 1,733,239
126,864 TROPICAL SPORTSWEAR
INTERNATIONAL CORPORATION 1,554,084
3,287,323
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.66%
178,556 DOLLAR THRIFTY AUTOMOTIVE
GROUP INCORPORATED+ 3,068,931
------------
BUILDING CONSTRUCTION -- GENERAL CONTRACTORS & OPERATIVE BUILDERS - 3.63%
132,380 D.R. HORTON INCORPORATED 1,729,214
89,900 LENNAR CORPORATION 1,949,706
77,471 M.D.C. HOLDINGS INCORPORATED 1,389,636
163,300 STANDARD PACIFIC CORPORATION 1,633,000
6,701,556
------------
BUSINESS SERVICES - 2.90%
60,515 MENTOR GRAPHICS CORPORATION+ 915,289
84,862 MIDWAY GAMES INCORPORATED+ 1,124,422
78,930 NCO GROUP INCORPORATED+ 2,520,827
43,853 THQ INCORPORATED+ 783,872
5,344,410
------------
CHEMICALS & ALLIED PRODUCTS - 3.65%
204,000 AGRIUM INCORPORATED 1,644,750
198,500 CK WITCO CORPORATION 2,022,219
100,100 CYTEC INDUSTRIES INCORPORATED+ 3,065,562
6,732,531
------------
DEPOSITORY INSTITUTIONS - 9.31%
49,293 ANDOVER BANCORP INCORPORATED 1,407,931
68,800 ASTORIA FINANCIAL CORPORATION 1,952,200
50,685 BANK UNITED CORPORATION 1,599,745
71,365 BANKNORTH GROUP INCORPORATED 1,913,474
44,794 CENTURA BANKS INCORPORATED 2,052,125
119,875 COMMERCIAL FEDERAL CORPORATION 1,992,922
67,549 FIRST REPUBLIC BANK+ 1,338,315
93,567 FIRSTFED FINANCIAL
CORPORATION+ 1,239,763
64,868 INTERWEST BANCORP INCORPORATED 891,935
65,500 PFF BANCORP INCORPORATED 1,015,250
</TABLE>
174
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
DEPOSITORY INSTITUTIONS (continued)
76,375 WEBSTER FINANCIAL CORPORATION $ 1,756,625
17,160,285
------------
EATING & DRINKING PLACES - 1.20%
66,905 PAPA JOHN'S INTERNATIONAL
INCORPORATED+ 2,207,865
------------
ELECTRIC, GAS & SANITARY SERVICES - 5.14%
145,120 CENTRAL VERMONT PUBLIC SERVICE 1,514,690
254,171 EL PASO ELECTRIC COMPANY+ 2,637,024
110,409 ENERGEN CORPORATION 1,759,644
63,400 RGS ENERGY GROUP INCORPORATED 1,347,250
85,225 WPS RESOURCES CORPORATION 2,210,523
9,469,131
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT - 9.92%
40,400 3DFX INTERACTIVE INCORPORATED+ 482,275
25,419 ACTEL CORPORATION+ 907,141
47,843 ARTESYN TECHNOLOGIES
INCORPORATED 906,027
71,037 BENCHMARK ELECTRONICS
INCORPORATED+ 2,628,369
15,254 CTS CORPORATION 869,478
32,313 DUPONT PHOTOMASKS
INCORPORATED+ 1,872,134
66,852 ESS TECHNOLOGY INCORPORATED+ 1,169,910
41,000 HARMAN INTERNATIONAL
INDUSTRIES INCORPORATED 2,460,000
23,700 IMATION CORPORATION+ 632,494
33,372 MICROSEMI CORPORATION+ 1,142,991
36,575 PARK ELECTROCHEMICAL
CORPORATION 896,087
106,670 SEMX CORPORATION+ 1,120,035
127,100 STONERIDGE INCORPORATED+ 1,461,650
29,969 TECHNITROL INCORPORATED 1,745,694
18,294,285
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT -
2.26%
269,369 GRIFFON CORPORATION+ 2,104,445
125,650 TOWER AUTOMOTIVE INCORPORATED+ 2,057,519
4,161,964
------------
FOOD & KINDRED PRODUCTS - 1.47%
178,121 FLOWERS INDUSTRIES
INCORPORATED 2,705,213
------------
GENERAL MERCHANDISE STORES - 1.21%
90,670 AMES DEPARTMENT STORES
INCORPORATED+ 2,227,082
------------
HEALTH SERVICES - 1.42%
208,300 BEVERLY ENTERPRISES
INCORPORATED+ 768,106
75,123 REHABCARE GROUP INCORPORATED+ 1,854,599
2,622,705
------------
HOLDING & OTHER INVESTMENT OFFICES - 1.41%
61,980 NSTAR 2,603,160
------------
</TABLE>
175
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.01%
54,400 LINENS 'N THINGS INCORPORATED+ $ 1,863,200
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 1.71%
296,808 BOYD GAMING CORPORATION+ 1,465,490
134,395 ISLE OF CAPRI CASINOS
INCORPORATED+ 1,679,937
3,145,427
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.04%
44,550 NORTEK INCORPORATED+ 985,669
127,440 TEREX CORPORATION+ 1,831,950
100,100 TRACTOR SUPPLY COMPANY+ 2,052,050
19,800 XIRCOM INCORPORATED+ 732,600
5,602,269
------------
INSURANCE CARRIERS - 6.41%
70,100 BERKLEY (W.R.) CORPORATION 1,616,681
69,000 FARM FAMILY HOLDINGS
INCORPORATED+ 2,052,750
118,978 HARLEYSVILLE GROUP
INCORPORATED 1,725,181
143,300 HCC INSURANCE HOLDINGS
INCORPORATED 1,898,726
133,945 MIIX GROUP INCORPORATED 1,866,858
82,020 MONY GROUP INCORPORATED 2,650,271
11,810,467
------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS - 3.60%
71,275 CONMED CORPORATION+ 1,786,330
106,132 COOPER COMPANIES INCORPORATED 3,416,123
25,639 TEKTRONIX INCORPORATED 1,435,784
6,638,237
------------
MISCELLANEOUS RETAIL - 1.20%
340,000 OFFICEMAX INCORPORATED+ 2,210,000
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.80%
93,426 COVENANT TRANSPORTATION
INCORPORATED+ 1,483,138
------------
OIL & GAS EXTRACTION - 5.05%
105,706 PRIDE INTERNATIONAL
INCORPORATED+ 2,411,418
34,700 SEACOR SMIT INCORPORATED+ 2,095,013
143,775 SWIFT ENERGY COMPANY+ 2,569,978
70,000 TIDEWATER INCORPORATED 2,226,875
9,303,284
------------
PAPER & ALLIED PRODUCTS - 1.11%
158,645 FIBERMARK INCORPORATED+ 2,052,470
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.91%
146,450 TESORO PETROLEUM CORPORATION+ 1,684,175
------------
PRIMARY METAL INDUSTRIES - 3.27%
133,700 AK STEEL HOLDING CORPORATION 1,387,137
</TABLE>
176
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME VALUE
<C> <S> <C> <C> <C>
PRIMARY METAL INDUSTRIES (continued)
98,774 CHASE INDUSTRIES INCORPORATED+ $ 864,273
269,058 NATIONAL STEEL CORPORATION 1,984,302
57,500 TEXAS INDUSTRIES INCORPORATED 1,789,688
6,025,400
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.12%
238,340 MAIL-WELL INCORPORATED+ 2,070,579
------------
REAL ESTATE INVESTMENT TRUST - 10.31%
85,250 ARDEN REALTY INCORPORATED 1,779,594
111,597 BRANDYWINE REALTY TRUST 1,911,098
62,000 FIRST INDUSTRIAL REALTY TRUST
INCORPORATED 1,689,500
101,000 FRANCHISE FINANCE CORPORATION
OF AMERICA 2,348,250
142,450 GLENBOROUGH REALTY TRUST
INCORPORATED 2,065,525
114,510 HEALTHCARE REALTY TRUST
INCORPORATED 1,918,042
77,100 HIGHWOODS PROPERTIES
INCORPORATED 1,638,375
87,800 PRENTISS PROPERTIES TRUST 1,959,038
64,824 STORAGE USA INCORPORATED 1,985,235
221,310 WINSTON HOTELS INCORPORATED 1,715,153
19,009,810
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.63%
26,800 SOUTHWEST SECURITIES GROUP
INCORPORATED 1,164,125
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.21%
37,900 SOUTHDOWN INCORPORATED 2,236,100
------------
TRANSPORTATION BY AIR - 0.90%
55,500 ALASKA AIR GROUP INCORPORATED+ 1,668,469
------------
TRANSPORTATION EQUIPMENT - 0.99%
60,361 NEWPORT NEWS SHIPBUILDING
INCORPORATED 1,825,920
------------
WHOLESALE TRADE -- DURABLE GOODS - 1.19%
47,740 BORG-WARNER AUTOMOTIVE
INCORPORATED 1,879,763
14,312 PERFORMANCE FOOD GROUP
COMPANY+ 313,074
2,192,837
------------
WHOLESALE TRADE -- NONDURABLE GOODS - 2.84%
122,034 HENRY SCHEIN INCORPORATED+ 1,975,425
27,260 SUIZA FOODS CORPORATION+ 1,097,215
114,738 SUPERVALU INCORPORATED 2,172,851
5,245,491
------------
179,332,223
TOTAL COMMON STOCK (COST $178,224,213)
------------
</TABLE>
177
<PAGE>
CORE PORTFOLIOS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.25%
REPURCHASE AGREEMENTS - 2.25%
$4,142,852 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY U.S.
GOVERNMENT SECURITIES 6.22% 04/03/00 $ 4,142,852
4,142,852
TOTAL SHORT-TERM INSTRUMENTS (COST
$4,142,852)
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $182,367,065)* 99.50% $183,475,075
OTHER ASSETS AND LIABILITIES, NET 0.50 915,141
------- ------------
TOTAL NET ASSETS 100.00% $184,390,216
------- ------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<CAPTION>
<S> <C>
GROSS UNREALIZED APPRECIATION $18,099,398
GROSS UNREALIZED DEPRECIATION (16,991,388)
----------
NET UNREALIZED APPRECIATION $1,108,010
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
178
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
179
<PAGE>
CORE PORTFOLIOS STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED
GROWTH INCOME EQUITY INDEX
<S> <C> <C> <C>
--------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS AT COST.... $168,899,613 $1,742,842,581 $1,111,965,204
NET UNREALIZED
APPRECIATION
(DEPRECIATION)....... 39,491,206 858,232,630 735,406,310
----------- ------------- -------------
TOTAL INVESTMENT AT
VALUE.................. 208,390,819 2,601,075,211 1,847,371,514
----------- ------------- -------------
CASH................... 0 0 0
COLLATERAL FOR
SECURITIES LOANED.... 77,390,310 261,231,109 290,054,464
RECEIVABLE FROM DAILY
VARIATION MARGIN..... 0 0 296,999
RECEIVABLE FOR
INVESTMENTS SOLD..... 0 0 0
RECEIVABLE FOR
DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES.......... 88,721 5,593,969 1,592,119
ORGANIZATION COST, NET
OF AMORTIZATION...... 0 6,450 0
PREPAID EXPENSES AND
OTHER ASSETS......... 0 2,350 0
----------- ------------- -------------
TOTAL ASSETS............. 285,869,850 2,867,909,089 2,139,315,096
----------- ------------- -------------
LIABILITIES
PAYABLE FOR INVESTMENT
PURCHASED............ 0 0 0
PAYABLE FOR SECURITY
LOANED............... 77,390,310 261,231,109 290,054,464
PAYABLE FOR FORWARD
FOREIGN CURRENCY
CONTRACTS............ 0 0 0
PAYABLE TO CUSTODIAN... 1,831,176 0 0
PAYABLE TO INVESTMENT
ADVISOR AND
AFFILIATES........... 123,147 1,522,516 195,886
PAYABLE TO
ADMINISTRATOR........ 833 5,275 1,936
ACCRUED EXPENSES AND
OTHER LIABILITIES.... 11,504 0 5,582
----------- ------------- -------------
TOTAL LIABILITIES........ 79,356,970 262,758,900 290,257,868
----------- ------------- -------------
TOTAL NET ASSETS......... $206,512,880 $2,605,150,189 $1,849,057,228
----------- ------------- -------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
180
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED) CORE
PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL LARGE COMPANY SMALL CAP SMALL CAP SMALL COMPANY SMALL COMPANY
INTERNATIONAL EQUITY GROWTH INDEX VALUE GROWTH VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
INVESTMENTS AT COST.... $625,098,218 $266,407,381 $1,510,965,708 $160,302,359 $161,635,968 $666,596,029 $182,367,065
NET UNREALIZED
APPRECIATION
(DEPRECIATION)....... 118,442,567 55,851,028 1,515,035,168 10,509,232 39,943,335 177,735,378 1,108,010
----------- ----------- ------------- ----------- ----------- ----------- -----------
TOTAL INVESTMENT AT
VALUE.................. 743,540,785 322,258,409 3,026,000,876 170,811,591 201,579,303 844,331,407 183,475,075
----------- ----------- ------------- ----------- ----------- ----------- -----------
CASH................... 113,269 0 0 0 0 0 0
COLLATERAL FOR
SECURITIES LOANED.... 111,101,934 44,000,273 447,139,232 30,680,267 39,598,449 100,301,785 22,054,368
RECEIVABLE FROM DAILY
VARIATION MARGIN..... 0 0 0 290,125 0 0 0
RECEIVABLE FOR
INVESTMENTS SOLD..... 15,262,396 0 0 1,071,847 0 13,443,468 1,804,586
RECEIVABLE FOR
DIVIDENDS AND
INTEREST AND OTHER
RECEIVABLES.......... 2,885,287 433,413 1,280,925 71,954 46,691 178,517 354,804
ORGANIZATION COST, NET
OF AMORTIZATION...... 0 0 6,374 0 0 0 0
PREPAID EXPENSES AND
OTHER ASSETS......... 2,605 0 45,216 0 0 8,128 2,723
----------- ----------- ------------- ----------- ----------- ----------- -----------
TOTAL ASSETS............. 872,906,276 366,692,095 3,474,472,623 202,925,784 241,224,443 958,263,305 207,691,556
----------- ----------- ------------- ----------- ----------- ----------- -----------
LIABILITIES
PAYABLE FOR INVESTMENT
PURCHASED............ 6,510,656 3,308,290 0 485,342 0 18,771,425 1,115,874
PAYABLE FOR SECURITY
LOANED............... 111,101,934 44,000,273 447,139,232 30,680,267 39,598,449 100,301,785 22,054,368
PAYABLE FOR FORWARD
FOREIGN CURRENCY
CONTRACTS............ 5,390,552 0 0 0 0 0 0
PAYABLE TO CUSTODIAN... 0 0 0 0 0 0 0
PAYABLE TO INVESTMENT
ADVISOR AND
AFFILIATES........... 772,930 326,207 2,027,910 42,876 100,655 707,130 114,386
PAYABLE TO
ADMINISTRATOR........ 0 28,622 11,546 8,453 7,003 0 0
ACCRUED EXPENSES AND
OTHER LIABILITIES.... 474,951 103,625 0 353 20,174 0 16,712
----------- ----------- ------------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES........ 124,251,023 47,767,017 449,178,688 31,217,291 39,726,281 119,780,340 23,301,340
----------- ----------- ------------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS......... $748,655,253 $318,925,078 $3,025,293,935 $171,708,493 $201,498,162 $838,482,965 $184,390,216
----------- ----------- ------------- ----------- ----------- ----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
181
<PAGE>
CORE PORTFOLIOS STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED
GROWTH INCOME EQUITY INDEX
<S> <C> <C> <C>
-------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 1,006,154 $ 25,697,596 $ 9,817,821
INTEREST............... 104,009 1,347,133 1,342,461
SECURITIES LENDING..... 46,264 157,595 242,409
----------- ------------- ------------
TOTAL INVESTMENT
INCOME................. 1,156,427 27,202,324 11,402,691
----------- ------------- ------------
EXPENSES
ADVISORY FEES.......... 803,053 9,214,035 1,317,368
ADMINISTRATION FEES.... 10,471 129,287 84,206
CUSTODY................ 20,032 238,646 160,366
ACCOUNTING............. 37,105 75,164 70,750
LEGAL.................. 2,546 4,646 2,200
AUDIT.................. 7,075 7,075 7,075
DIRECTORS' FEES........ 2,276 2,363 2,328
AMORTIZATION OF
ORGANIZATION COSTS... 3,805 1,439 725
OTHER.................. 0 10,552 8,202
----------- ------------- ------------
TOTAL EXPENSES........... 886,363 9,683,207 1,653,220
----------- ------------- ------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (94,383) (1,115,782) (443,722)
NET EXPENSES........... 791,980 8,567,425 1,209,498
----------- ------------- ------------
NET INVESTMENT INCOME
(LOSS)................. 364,447 18,634,899 10,193,193
----------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
-------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM
SECURITIES............. 22,099,999 61,239,183 53,571,128
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 474,953
----------- ------------- ------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 22,099,999 61,239,183 54,046,081
----------- ------------- ------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
SECURITIES............. 8,350,360 (77,785,422) 210,214,105
FOREIGN CURRENCY
TRANSACTIONS......... 0 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 2,486,801
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 8,350,360 (77,785,422) 212,700,906
----------- ------------- ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 30,450,359 (16,546,239) 266,746,987
----------- ------------- ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $30,814,806 $ 2,088,660 $276,940,180
----------- ------------- ------------
</TABLE>
(1) NET OF FOREIGN WITHHOLDING TAXES OF $874,888 FOR THE INTERNATIONAL
PORTFOLIO AND $147,020 FOR THE INTERNATIONAL EQUITY PORTFOLIO
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
182
<PAGE>
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL LARGE COMPANY SMALL CAP SMALL CAP SMALL COMPANY SMALL COMPANY
INTERNATIONAL EQUITY GROWTH INDEX VALUE GROWTH VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS.............. $ 2,625,490(1) $ 590,776(1) $ 4,391,344 $ 541,245 $ 298,909 $ 1,467,299 $ 1,560,590
INTEREST............... 460,039 322,200 1,644,909 347,589 298,415 991,689 203,066
SECURITIES LENDING..... 61,784 21,523 203,727 36,368 79,258 72,833 12,722
------------ ------------ ------------- ------------ ------------ ------------- -------------
TOTAL INVESTMENT
INCOME................. 3,147,313 934,499 6,239,980 925,202 676,582 2,531,821 1,776,378
------------ ------------ ------------- ------------ ------------ ------------- -------------
EXPENSES
ADVISORY FEES.......... 3,405,333 1,340,192 9,233,760 210,454 843,887 3,442,201 747,959
ADMINISTRATION FEES.... 125,938 7,871 109,678 7,979 8,920 34,493 7,942
CUSTODY................ 811,971 295,304 231,705 16,558 18,182 71,152 16,347
ACCOUNTING............. 49,166 70,927 84,669 52,284 48,326 51,098 34,642
LEGAL.................. 124,007 103,519 18 65 3,771 31 2,847
AUDIT.................. 7,075 7,075 7,075 4,736 7,075 7,075 7,075
DIRECTORS' FEES........ 2,298 2,274 2,344 1,523 2,272 2,294 2,274
AMORTIZATION OF
ORGANIZATION COSTS... 725 0 1,424 0 0 324 324
OTHER.................. 347,030 8 577 0 8,342 692 7,091
------------ ------------ ------------- ------------ ------------ ------------- -------------
TOTAL EXPENSES........... 4,873,543 1,827,170 9,671,250 293,599 940,775 3,609,360 826,501
------------ ------------ ------------- ------------ ------------ ------------- -------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (327,289) (116,576) (87,136) (10,483) (274,376) (37,549) (143,082)
NET EXPENSES........... 4,546,254 1,710,594 9,584,114 283,116 666,399 3,571,811 683,419
------------ ------------ ------------- ------------ ------------ ------------- -------------
NET INVESTMENT INCOME
(LOSS)................. (1,398,941) (776,095) (3,344,134) 642,086 10,183 (1,039,990) 1,092,959
------------ ------------ ------------- ------------ ------------ ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
--------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS)
FROM
SECURITIES............. 167,858,099 44,104,245 50,610,539 1,539,508 13,011,483 137,407,362 (475,018)
FOREIGN CURRENCY
TRANSACTIONS......... (1,628,782) (37,296) 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 4,011,065 0 0 0
------------ ------------ ------------- ------------ ------------ ------------- -------------
NET REALIZED GAIN (LOSS)
FROM INVESTMENTS....... 166,229,317 44,066,949 50,610,539 5,550,573 13,011,483 137,407,362 (475,018)
------------ ------------ ------------- ------------ ------------ ------------- -------------
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
SECURITIES............. 21,070,867 37,340,189 771,628,395 24,639,161 19,800,420 116,564,035 4,515,664
FOREIGN CURRENCY
TRANSACTIONS......... (2,342,687) (8,379) 0 0 0 0 0
FINANCIAL FUTURES
TRANSACTIONS......... 0 0 0 (863,377) 0 0 0
NET CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS............ 18,728,180 37,331,810 771,628,395 23,775,784 19,800,420 116,564,035 4,515,664
------------ ------------ ------------- ------------ ------------ ------------- -------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS......... 184,957,497 81,398,759 822,238,934 29,326,357 32,811,903 253,971,397 4,040,646
------------ ------------ ------------- ------------ ------------ ------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $183,558,556 $ 80,622,664 $ 818,894,800 $ 29,968,443 $ 32,822,086 $ 252,931,407 $ 5,133,605
------------ ------------ ------------- ------------ ------------ ------------- -------------
</TABLE>
(1) NET OF FOREIGN WITHHOLDING TAXES OF $874,888 FOR THE INTERNATIONAL
PORTFOLIO AND $147,020 FOR THE INTERNATIONAL EQUITY PORTFOLIO
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
183
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISCIPLINED GROWTH
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $201,399,232 $188,984,663 $130,765,219
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 364,447 (26,104) 245,235
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 22,099,999 4,099,644 (3,141,344)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 8,350,360 (4,448,279) 24,845,328
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 30,814,806 (374,739) 21,949,219
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 18,589,136 24,852,681 56,556,716
WITHDRAWALS............ (44,290,294) (12,063,373) (20,286,491)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ (25,701,158) 12,789,308 36,270,225
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 5,113,648 12,414,569 58,219,444
------------ ------------ ------------
ENDING NET ASSETS........ $206,512,880 $201,399,232 $188,984,663
------------ ------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
184
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME EQUITY INDEX
--------------------------------------------------- ---------------------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... 2$,454,562,674 2$,418,577,773 $1,955,802,133 1$,583,558,662 1$,830,641,407 $1,385,279,923
------------ ------------ ------------ ------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 18,634,899 12,171,160 32,382,110 10,193,193 7,070,132 21,141,735
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 61,239,183 55,447,612 10,703,154 54,046,081 17,917,926 26,353,322
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... (77,785,422) (176,477,105) 273,274,958 212,700,906 (247,065,769) 247,309,848
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 2,088,660 (108,858,333) 316,360,222 276,940,180 (222,077,711) 294,804,905
------------ ------------ ------------ ------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 364,181,185 170,936,080 299,593,165 136,836,782 168,104,830 338,399,367
WITHDRAWALS............ (215,682,330) (26,092,846) (153,177,747) (148,278,396) (193,109,864) (187,842,788)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ 148,498,855 144,843,234 146,415,418 (11,441,614) (25,005,034) 150,556,579
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 150,587,515 35,984,901 462,775,640 265,498,566 (247,082,745) 445,361,484
------------ ------------ ------------ ------------ ------------ ------------
ENDING NET ASSETS........ 2$,605,150,189 2$,454,562,674 $2,418,577,773 1$,849,057,228 1$,583,558,662 $1,830,641,407
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
185
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $803,919,481 $797,205,650 $951,185,586
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (1,398,941) 4,888,405 11,315,753
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 166,229,317 33,382,557 84,073,464
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 18,728,180 (3,837,151) (106,511,759)
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 183,558,556 34,433,811 (11,122,542)
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 102,248,906 96,548,384 138,115,465
WITHDRAWALS............ (341,071,690) (124,268,364) (280,972,859)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ (238,822,784) (27,719,980) (142,857,394)
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (55,264,228) 6,713,831 (153,979,936)
------------ ------------ ------------
ENDING NET ASSETS........ $748,655,253 $803,919,481 $797,205,650
------------ ------------ ------------
</TABLE>
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON FEBRUARY 12, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
186
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
-------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 (1)
<S> <C> <C> <C>
----------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $150,544,960 $154,552,130 $ 0
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (776,095) 109,415 857,495
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 44,066,949 2,627,525 (119,809)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 37,331,810 13,315,722 5,196,073
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 80,622,664 16,052,662 5,933,759
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 180,004,062 19,384,770 154,175,553
WITHDRAWALS............ (92,246,608) (39,444,602) (5,557,182)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ 87,757,454 (20,059,832) 148,618,371
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 168,380,118 (4,007,170) 154,552,130
------------ ------------ ------------
ENDING NET ASSETS........ $318,925,078 $150,544,960 $154,552,130
------------ ------------ ------------
<CAPTION>
LARGE COMPANY GROWTH
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
-------------------------
BEGINNING NET ASSETS..... 2$,038,377,260 1$,847,453,831 $1,081,998,121
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... (3,344,134) (504,243) (2,686,598)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 50,610,539 37,071,984 181,443,136
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 771,628,395 (53,035,427) 267,110,572
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 818,894,800 (16,467,686) 445,867,110
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 433,563,355 431,740,313 761,913,767
WITHDRAWALS............ (265,541,480) (224,349,198) (442,325,167)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ 168,021,875 207,391,115 319,588,600
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 986,916,675 190,923,429 765,455,710
------------ ------------ ------------
ENDING NET ASSETS........ 3$,025,293,935 2$,038,377,260 $1,847,453,831
------------ ------------ ------------
</TABLE>
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON FEBRUARY 12, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
187
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP INDEX
---------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $154,386,892 $136,746,124 $122,492,445
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 642,086 245,646 926,729
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 5,550,573 (1,007,763) 2,468,434
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 23,775,784 1,965,868 (9,600,626)
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 29,968,443 1,203,751 (6,205,463)
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 19,690,769 45,525,219 38,398,557
WITHDRAWALS............ (32,337,611) (29,088,202) (17,939,415)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ (12,646,842) 16,437,017 20,459,142
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 17,321,601 17,640,768 14,253,679
------------ ------------ ------------
ENDING NET ASSETS........ $171,708,493 $154,386,892 $136,746,124
------------ ------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
188
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP VALUE SMALL COMPANY GROWTH
-------------------------------------------------- ------------------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999 MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS..... $173,026,520 $125,768,110 $104,269,849 $667,576,772 $733,708,206 $894,063,120
------------ ------------ ------------ ------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 10,183 (146,613) (213,047) (1,039,990) (514,635) (1,822,670)
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... 13,011,483 4,186,619 (30,465,857) 137,407,362 57,486,291 (77,753,826)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 19,800,420 5,216,949 9,548,982 116,564,035 (65,332,424) (15,097,262)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 32,822,086 9,256,955 (21,129,922) 252,931,407 (8,360,768) (94,673,758)
------------ ------------ ------------ ------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 27,728,337 68,898,740 56,411,434 53,003,570 31,454,531 87,802,760
WITHDRAWALS............ (32,078,781) (30,897,285) (13,783,251) (135,028,784) (89,225,197) (153,483,916)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ (4,350,444) 38,001,455 42,628,183 (82,025,214) (57,770,666) (65,681,156)
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 28,471,642 47,258,410 21,498,261 170,906,193 (66,131,434) (160,354,914)
------------ ------------ ------------ ------------ ------------ ------------
ENDING NET ASSETS........ $201,498,162 $173,026,520 $125,768,110 $838,482,965 $667,576,772 $733,708,206
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
189
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY VALUE
------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE FOUR FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999 MAY 31, 1999
<S> <C> <C> <C>
---------------------------------------------------------------------------
BEGINNING NET ASSETS..... $152,160,571 $168,647,698 $147,525,445
------------ ------------ ------------
OPERATIONS:
NET INVESTMENT INCOME
(LOSS)............... 1,092,959 435,751 1,096,962
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (475,018) 2,279,774 (4,559,162)
NET CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION) OF
INVESTMENTS.......... 4,515,664 (8,987,103) (9,541,409)
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ 5,133,605 (6,271,578) (13,003,609)
------------ ------------ ------------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS
CONTRIBUTIONS.......... 41,839,585 25,136,140 58,867,576
WITHDRAWALS............ (14,743,545) (35,351,689) (24,741,714)
------------ ------------ ------------
NET INCREASE (DECREASE)
FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTERESTS............ 27,096,040 (10,215,549) 34,125,864
------------ ------------ ------------
------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 32,229,645 (16,487,127) 21,122,253
------------ ------------ ------------
ENDING NET ASSETS........ $184,390,216 $152,160,571 $168,647,698
------------ ------------ ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
190
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
---------------------------------------- PORTFOLIO
NET INVESTMENT NET GROSS TURNOVER
INCOME (LOSS) EXPENSES EXPENSES(1) RATE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 0.36% 0.78% 0.87% 60%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... (0.04)% 0.97% 1.02% 21%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.15% 0.97% 1.02% 90%
OCTOBER 1, 1997 (3) TO
MAY 31, 1998................ 0.55% 1.01% 1.06% 68%
INCOME EQUITY PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 1.43% 0.66% 0.75% 5%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 1.43% 0.54% 0.57% 5%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.53% 0.55% 0.57% 3%
JUNE 1, 1997 (3) TO MAY 31,
1998........................ 1.76% 0.52% 0.57% 3%
INDEX PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 1.17% 0.14% 0.19% 5%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 1.25% 0.18% 0.23% 11%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.35% 0.18% 0.23% 4%
JUNE 1, 1997 TO MAY 31,
1998........................ 1.60% 0.19% 0.24% 7%
JUNE 1, 1996 TO MAY 31,
1997........................ 2.03% 0.11% 0.31% 7%
NOVEMBER 1, 1995 TO MAY 31,
1996........................ 2.35% 0.17% 0.32% 7%
NOVEMBER 11, 1994 (3) TO
OCTOBER 31, 1995............ 2.42% 0.17% 0.33% 8%
INTERNATIONAL
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ (0.36)% 1.18% 1.26% 59%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 1.79% 0.61% 0.68% 23%
JUNE 1, 1998 TO MAY 31,
1999........................ 1.29% 0.61% 0.69% 94%
JUNE 1, 1997 TO MAY 31,
1998........................ 1.23% 0.66% 0.68% 37%
JUNE 1, 1996 TO MAY 31,
1997........................ 1.53% 0.19% 0.67% 53%
NOVEMBER 1, 1995 TO MAY 31,
1996........................ 1.75% 0.23% 0.68% 18%
NOVEMBER 11, 1994 (3) TO
OCTOBER 31, 1995............ 1.94% 0.25% 0.70% 28%
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ (0.60)% 1.32% 1.41% 53%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 0.21% 1.40% 1.40% 11%
FEBRUARY 12, 1999 (3) TO
MAY 31, 1999................ 1.92% 1.40% 1.45% 12%
LARGE COMPANY GROWTH PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ (0.27)% 0.77% 0.78% 5%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... (0.07)% 0.69% 0.72% 5%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.19)% 0.71% 0.72% 28%
JUNE 1, 1997 (3) TO MAY 31,
1998........................ (0.03)% 0.67% 0.73% 13%
SMALL CAP INDEX PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 0.77% 0.34% 0.35% 15%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 0.53% 0.44% 0.50% 23%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.76% 0.44% 0.48% 26%
APRIL 9, 1998 (3) TO MAY 31,
1998........................ 1.04% 0.52% 0.54% 2%
SMALL CAP VALUE PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 0.01% 0.73% 1.03% 63%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... (0.32)% 1.06% 1.10% 49%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.20)% 1.05% 1.10% 108%
OCTOBER 1, 1997 (3) TO
MAY 31, 1998................ (0.17)% 1.08% 1.13% 79%
SMALL COMPANY GROWTH PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ (0.28)% 0.95% 0.96% 27%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... (0.22)% 0.94% 0.98% 55%
JUNE 1, 1998 TO MAY 31,
1999........................ (0.25)% 0.98% 0.98% 154%
JUNE 1, 1997 (3) TO MAY 31,
1998........................ (0.41)% 0.93% 0.98% 123%
SMALL COMPANY VALUE PORTFOLIO
-----------------------------------------------------------------------------------
OCTOBER 1, 1999 TO MARCH 31,
2000........................ 1.33% 0.83% 1.01% 56%
JUNE 1, 1999 TO SEPTEMBER 30,
1999 (2).................... 0.83% 1.00% 1.04% 28%
JUNE 1, 1998 TO MAY 31,
1999........................ 0.76% 0.99% 1.04% 97%
JUNE 1, 1997 (3) TO MAY 31,
1998........................ 0.69% 0.99% 1.04% 99%
</TABLE>
191
<PAGE>
CORE PORTFOLIOS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 5).
(2) The Portfolio changed its fiscal year-end from May 31 to September 30.
(3) Commencement of operations.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
192
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Core Trust ("Core Trust") is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended (the
"1940 Act"). Core Trust, created as the successor entity to the Norwest Core
Trust, currently has 14 separate investment portfolios. These financial
statements represent the Disciplined Growth, Income Equity, Index,
International, International Equity, Large Company Growth, Small Cap Index,
Small Cap Value, Small Company Growth, and Small Company Value diversified
portfolios (each a "Portfolio" and collectively the "Portfolios").
Interests in the Portfolios are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
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, some of which invest in one or
more portfolios of Core Trust, through a tax-free exchange of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Core 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 at the close of each business day.
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 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, except for certain
dividends from foreign securities, which are recorded as soon as the Portfolio
is informed of the ex-dividend date. Dividend income from foreign securities
is recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
Foreign currency amounts are translated into U.S. dollars at the mean of the
bid and ask price of such currencies against U.S. dollars as follows: (i)
assets and liabilities at the rate of exchange at the end of the respective
period; and (ii) purchases and sales of securities and income and expenses at
the rate of exchange prevailing on the dates of such transactions. The portion
of the results of operations arising from changes in the exchange rates and
the portion due to fluctuations arising from changes in the market prices of
securities are not isolated. Such fluctuations are included with the net
realized and unrealized gain or loss on investments.
International Portfolio may enter into forward contracts to purchase or sell
foreign currencies to protect against the effect on the U.S. dollar value of
the underlying portfolio or possible adverse movements in foreign exchange
rates. Risks associated with such contracts include the movement in value of
the foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. Fluctuations in the value
193
<PAGE>
CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
of such contracts are recorded as unrealized gain or loss; realized gain or
loss includes net gain or loss on contracts that have terminated by settlement
or by the Portfolio entering into offsetting commitments. The following
contracts were held by the International Portfolio for the period ended
March 31, 2000:
<TABLE>
<CAPTION>
Net Unrealized
Appreciation/
Date Currency Value Proceeds (Depreciation)
<S> <C> <C> <C> <C>
5/18/00 JAPANESE YEN Y4,082,122,000.00 $37,869,049.00 $(2,221,470.00)
5/26/00 JAPANESE YEN Y4,195,728,000.00 38,721,880.00 (2,538,908.00)
6/7/00 JAPANESE YEN Y1,695,236,000.00 16,074,682.00 (630,173.00)
</TABLE>
FUTURES CONTRACTS
Each Portfolio 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 Portfolio 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 Portfolio 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 Portfolio as unrealized gains or losses. When
the contract is closed, the Portfolio 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 Portfolio 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
March 31, 2000, the Index and Small Cap Index Portfolios held the following
long futures contracts:
<TABLE>
<CAPTION>
Net Unrealized
Notional Appreciation/
Contracts Portfolio Type Expiration Date Contract Value (Depreciation)
<C> <S> <C> <C> <C> <C>
108 INDEX PORTFOLIO S&P 500 INDEX JUNE, 2000 $40,913,100 1,040,125
55 SMALL CAP INDEX PORTFOLIO RUSSELL 2000 JUNE, 2000 14,997,125 (1,098,575)
</TABLE>
The Index Portfolio and the Small Cap Index Portfolio have pledged to brokers
U.S. Treasury bills for initial margin requirements with a par value of
$4,875,000 and $920,000, respectively.
REPURCHASE AGREEMENTS
Each Portfolio may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other Portfolios 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
Portfolios' 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 Portfolios are collateralized by instruments such as U.S. Treasury or
federal agency obligations.
SECURITY LOANS
The Portfolios may loan securities in return for securities and cash
collateral which is invested in various short-term fixed income securities.
The Portfolios 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 Portfolio 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. 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 Portfolio. WFB receives 40% of income on security lending
activities and covers
194
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
the expenses associated with securities lending activities. As of March 31,
2000 the value of securities on loan and the value of the related collateral
was as follows:
<TABLE>
<CAPTION>
Portfolio Securities Collateral
<S> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $76,185,065 $ 77,390,310
INCOME EQUITY PORTFOLIO 254,460,975 261,231,109
INDEX PORTFOLIO 281,580,852 290,054,464
INTERNATIONAL PORTFOLIO 110,094,880 111,101,934
INTERNATIONAL EQUITY PORTFOLIO 42,413,414 44,000,273
LARGE COMPANY GROWTH PORTFOLIO 441,706,870 447,139,232
SMALL CAP INDEX PORTFOLIO 29,406,849 30,680,267
SMALL CAP VALUE PORTFOLIO 38,990,619 39,598,449
SMALL COMPANY GROWTH PORTFOLIO 97,749,521 100,301,785
SMALL COMPANY VALUE PORTFOLIO 21,402,415 22,054,368
</TABLE>
FEDERAL INCOME TAXES
Each Portfolio is treated as a separate entity for federal income tax
purposes. The Portfolios are not required to pay federal income taxes on their
net investment income and net capital gain as they are treated as partnerships
for federal income tax purposes. All interest, dividends, gain and loss of the
Portfolios are deemed to have been "passed through" to the interestholders in
proportion to their holdings of the Portfolios regardless of whether such
interest, dividends, or gain have been distributed by the Portfolios.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Portfolios
are being amortized on a straight-line basis over 60 months from the date each
Portfolio commenced operations.
3. ADVISORY FEES
The Investment Advisor of each Portfolio is WFB. WFB has retained the
services of certain investment sub-advisors (Galliard Capital Management,
Inc., Peregrine Capital Management, Inc., Schroder Capital Management
International, Inc., Smith Asset Management Group, L.P., and Wells Capital
Management, Inc.) on selected Portfolios. The fees related to sub-advisory
services are borne directly by the Advisor and do not increase the overall
fees paid by the Portfolios to the Advisor. These sub-advisors provided the
same services to the predecessor portfolios. Prior to November 8, 1999, the
Disciplined Growth, Small Company Growth, and Small Company Value Portfolios
were charged an Advisory fee of 0.90%, the Index Portfolio was charged 0.15%,
the Income Equity Portfolio was charged 0.50%, the International Portfolio was
charged 0.45%, the International Equity Portfolio was charged 1.20%, the Large
Company Growth Portfolio was charged 0.65%, the Small Cap Index Portfolio was
charged 0.25%, and the Small Cap Value Portfolio was charged 0.95% as a
percentage of the average daily net assets of each respective Portfolio.
195
<PAGE>
CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The current investment advisory fees and the associated sub-advisor and
sub-advisory fees are as follows, with the fees expressed as a percentage of
the average daily net assets.
<TABLE>
<CAPTION>
Portfolio Advisory Fee Subadvisor Sub-Advisory Fee
<S> <C> <C> <C>
DISCIPLINED GROWTH PORTFOLIO 0.75% SMITH ASSET MANAGEMENT $ 0-175 MILLION, 0.35%
175-225 MILLION, 0.00%
225-500 MILLION, 0.25%
GREATER THAN 500 MILLION, 0.20%
INCOME EQUITY PORTFOLIO 0.75% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.25%
200-400 MILLION, 0.20%
GREATER THAN 400 MILLION, 0.15%
INDEX PORTFOLIO 0.15% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.02%
GREATER THAN 200 MILLION, 0.01%
INTERNATIONAL PORTFOLIO 1.00% SCHRODER CAPITAL MANAGEMENT 0-100 MILLION, 0.45%
100-200 MILLION, 0.35%
200-600 MILLION, 0.20%
GREATER THAN 600 MILLION, 0.185%
INTERNATIONAL EQUITY PORTFOLIO 1.00% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.35%
200-400 MILLION, 0.25%
GREATER THAN 400 MILLION, 0.15%
LARGE COMPANY GROWTH PORTFOLIO 0.75% PEREGRINE CAPITAL MANAGEMENT 0-25 MILLION, 0.75%
25-50 MILLION, 0.60%
50-275 MILLION, 0.50%
GREATER THAN 275 MILLION, 0.30%
SMALL CAP INDEX PORTFOLIO 0.25% WELLS CAPITAL MANAGEMENT 0-200 MILLION, 0.02%
GREATER THAN 200 MILLION,0.01%
SMALL CAP VALUE PORTFOLIO 0.90% SMITH ASSET MANAGEMENT 0-110 MILLION, 0.45%
110-150 MILLION, 0.00%
150-300 MILLION, 0.30%
GREATER THAN 300 MILLION, 0.25%
SMALL COMPANY GROWTH PORTFOLIO 0.90% PEREGRINE CAPITAL MANAGEMENT 0-50 MILLION, 0.90%
50-180 MILLION, 0.75%
180-340 MILLION, 0.65%
340-685 MILLION, 0.50%
685-735 MILLION, 0.52%
GREATER THAN 735 MILLION 0.55%
SMALL COMPANY VALUE PORTFOLIO 0.90% PEREGRINE CAPITAL MANAGEMENT 0-200 MILLION, 0.50%
GREATER THAN 200 MILLION, 0.75%
</TABLE>
4. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Currently there are no administration fees charged to the Portfolios at the
core level. Prior to November 8, 1999, Forum Administrative Services, LLC
("FAdS") was the administrator to the Core Trust and received a fee with
respect to each Portfolio (other than International Portfolio) at an annual
rate of 0.05% of each Portfolio's average daily net assets. With respect to
International Portfolio, FAdS received a fee at an annual rate of 0.15% of the
Portfolio's average daily net assets.
Norwest Bank Minnesota, N.A. ("Norwest") serves as the custodian for each
Portfolio and may appoint certain sub-custodians to custody those portfolios'
foreign securities and assets held in foreign countries. Norwest receives a
fee with respect to each Portfolio at an annual rate of 0.02% of each
Portfolio's average
196
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
daily net assets, with the exception of the International and International
Equity Portfolios. Norwest receives a fee with respect to the International
and International Equity Portfolios at an annual rate of 0.25% of each
Portfolio's average daily net assets. Prior to November 8, 1999, Norwest
received a fee with respect to each Portfolio at an annual rate of 0.02% for
the first $100 million of each Portfolio's average daily net assets, declining
to 0.01% of the average daily net assets of each Portfolio in excess of $200
million, with the exception of the International and International Equity
Portfolios. Prior to November 8, 1999, Norwest received a fee with respect to
the International and International Equity Portfolios at an annual rate of
0.07% of each Portfolio's average daily net assets.
Forum Accounting Services, LLC provides portfolio accounting and
interestholder recordkeeping services to each Portfolio.
5. WAIVED FEES AND REIMBURSED EXPENSES
For the six months ended March 31, 2000, fees waived by the Portfolios'
service providers were as follows:
<TABLE>
<CAPTION>
Portfolio Fees Waived by FAdS Fees Waived by WFB Total Fees Waived
<S> <C> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $12,440 $ 81,943 $ 94,383
INCOME EQUITY PORTFOLIO 59,627 1,056,155 1,115,782
INDEX PORTFOLIO 88,805 354,917 443,722
INTERNATIONAL PORTFOLIO 56,616 270,673 116,576
INTERNATIONAL EQUITY PORTFOLIO 0 116,576 327,289
LARGE COMPANY GROWTH PORTFOLIO 56,176 30,960 87,136
SMALL CAP INDEX PORTFOLIO 8,642 1,841 10,483
SMALL CAP VALUE PORTFOLIO 12,108 262,268 274,376
SMALL COMPANY GROWTH PORTFOLIO 24,605 12,944 37,549
SMALL COMPANY VALUE PORTFOLIO 8,635 134,447 143,082
</TABLE>
6. 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
Portfolio for the six-month period ended March 31, 2000, were as follows:
<TABLE>
<CAPTION>
AGGREGATE PURCHASES AND SALES
Portfolio Purchases at Cost Sales Proceeds
<S> <C> <C>
DISCIPLINED GROWTH PORTFOLIO $119,548,275 $140,770,912
INCOME EQUITY PORTFOLIO 192,926,045 125,095,458
INDEX PORTFOLIO 89,986,540 96,562,217
INTERNATIONAL PORTFOLIO 404,022,098 678,995,469
INTERNATIONAL EQUITY PORTFOLIO 206,498,869 127,510,164
LARGE COMPANY GROWTH PORTFOLIO 263,612,509 119,976,095
SMALL CAP INDEX PORTFOLIO 22,636,123 35,875,346
SMALL CAP VALUE PORTFOLIO 109,416,154 118,241,959
SMALL COMPANY GROWTH PORTFOLIO 217,281,367 194,404,304
SMALL COMPANY VALUE PORTFOLIO 116,692,843 88,629,711
</TABLE>
197
<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
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
198
<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.
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