WELLS FARGO VARIABLE TRUST, 485BPOS, 1999-09-20

WELLS FARGO VARIABLE TRUST
485BPOS, 1999-09-20

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<PAGE>

As filed with the Securities and Exchange Commission
on September 20, 1999
Registration No. 333-74283; 811-09255

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [_]

Pre-Effective Amendment No. ___ [_]

Post-Effective Amendment No. 5 [X]

And

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [_]

Amendment No. 7 [X]

________________________

WELLS FARGO VARIABLE TRUST
(Exact Name of Registrant as specified in Certificate of Trust)
111 Center Street
Little Rock, Arkansas 72201
(Address of Principal Executive Offices, including Zip Code)
__________________________

Registrant's Telephone Number, including Area Code: (800) 643-9691
Richard H. Blank, Jr.
c/o Stephens Inc.
111 Center Street
Little Rock, Arkansas 72201
(Name and Address of Agent for Service)
With a copy to:
Robert M. Kurucza, Esq.
Marco E. Adelfio, Esq.
Morrison & Foerster LLP
2000 Pennsylvania Ave., N.W.
Washington, D.C. 20006

It is proposed that this filing will become effective (check appropriate box):

[X] Immediately upon filing pursuant to Rule 485(b), or

[_] on _________ pursuant to Rule 485(b)

[_] 60 Days after filing pursuant to Rule 485(a)(1), or

[_] on _________ pursuant to Rule 485(a)(1)

[_] 75 days after filing pursuant to Rule 485(a)(2), or

[_] on _________ pursuant to Rule 485(a)(2)

If appropriate, check the following box:

[_] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
<PAGE>

Well Fargo Variable Trust
-------------------------
Cross Reference Sheet
---------------------

Form N-1A Item Number
- ---------------------

Part A Prospectus Captions
- ------ -------------------

1 Front and Back Cover Pages
2 Objectives and Principal Strategies
Important Risks
3 Summary of Expenses
4 See Individual Fund Summaries
Objectives and Principal Strategies
General Investment Risks
?5 Not Applicable
6 Organization and Management of the Funds
7 Investing in the Funds
Pricing Fund Shares
8 Dividends and Distributions
9 See Individual Fund Summaries

Part B Statement of Additional Information Captions
- ------ --------------------------------------------

10 Cover Page and Table of Contents
11 Historical Fund Information
12 Investment Restrictions
Additional Permitted Investment Policies
Risk Factors
13 Management
14 Capital Stock
15 Management
16 Portfolio Transactions
17 Capital Stock
18 Determination of Net Asset Value
Additional Purchase and Redemption Information
19 Federal Income Taxes
20 Management
21 Performance Calculations
22 Financial Information

Part C Other Information
- ------ -----------------

23-30 Information required to be included in Part C is set forth under the
appropriate Item, so numbered, in Part C of this Document.
<PAGE>

EXPLANATORY NOTE
----------------

This Post-Effective Amendment No. 5 to the Registration Statement of Wells
Fargo Variable Trust is being filed to register the definitive forms of
prospectuses and statement of additional information for the Asset Allocation,
Corporate Bond, Equity Income, Equity Value, Growth, International Equity, Large
Company Growth, Money Market and Small Cap Growth Funds, and to make certain
other non-material changes to the Registration Statement for these Funds.
<PAGE>

[LOGO OF WELLS FARGO FUNDS]

WELLS FARGO VARIABLE TRUST FUNDS

Please read this Prospectus and keep it for future reference. It is designed to
provide you with important information and to help you decide if a Fund's goals
match your own.

Federal law requires us to update this Prospectus annually. Federal law does not
allow us to satisfy Prospectus delivery requirements by sending one Prospectus
for all accounts and people within a household. Therefore, if you own the same
Fund in more than one account or if several people in your household own the
same Fund, you will receive multiple Prospectuses.

These securities have not been approved or disapproved by the U.S. Securities
and Exchange Commission ("SEC"), nor has the SEC passed upon the accuracy or
adequacy of this Prospectus. Any representation to the contrary is a criminal
offense.

Fund shares are NOT deposits or other obligations of, or issued, endorsed or
guaranteed by Wells Fargo Bank, N.A. ("Wells Fargo Bank") or any of its
affiliates. Fund shares are NOT insured or guaranteed by the U.S. Government,
the Federal Deposit Insurance Corporation ("FDIC") or any other governmental
agency. AN INVESTMENT IN A FUND INVOLVES CERTAIN RISKS, INCLUDING POSSIBLE LOSS
OF PRINCIPAL.

September 20, 1999

----------------------
PROSPECTUS
----------------------

Asset Allocation Fund

Corporate Bond Fund

Equity Income Fund

Equity Value Fund

Growth Fund

International Equity Fund

Large Company Growth Fund

Money Market Fund

Small Cap Growth Fund

<PAGE>

Table of Contents Variable Trust Funds
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Overview Objectives and Principal Strategies 4

This section contains important Summary of Important Risks 6
summary information about the Performance History 9
Funds.
Key Information 14
- --------------------------------------------------------------------------------------
The Funds Asset Allocation Fund 16
This section contains important Corporate Bond Fund 20
information about the individual Equity Income Fund 22
Funds.
Equity Value Fund 24
Growth Fund 26
International Equity Fund 30
Large Company Growth Fund 32
Money Market Fund 34
Small Cap Growth Fund 38
General Investment Risks 41
Organization and Management
of the Funds 47
- --------------------------------------------------------------------------------------
Your Investment Your Account 50
Turn to this section for
information on how to buy
and sell Fund shares.

- --------------------------------------------------------------------------------------
Reference Other Information 51
Look here for additional Table of Predecessors 52
information and term Portfolio Managers 53
definitions.
Glossary 56
</TABLE>

<PAGE>

Variable Trust Funds Overview
- --------------------------------------------------------------------------------
See the individual Fund descriptions in this Prospectus for further details.

<TABLE>
<CAPTION>
FUND OBJECTIVE
<S> <C>
Asset Allocation Fund Seeks long-term total return, consistent with reasonable risk.

Corporate Bond Fund Seeks a high level of current income consistent with reasonable risk.

Equity Income Fund Seeks long-term capital appreciation and above-average dividend
income.

Equity Value Fund Seeks long-term capital appreciation.

Growth Fund Seeks long-term capital appreciation.

International Equity Fund Seeks total return, with an emphasis on capital appreciation over the
long-term.

Large Company Growth Seeks long-term capital appreciation.
Fund

Money Market Fund Seeks current income, while preserving capital and liquidity.

Small Cap Growth Fund Seeks long-term capital appreciation.
</TABLE>

4 Variable Trust Prospectus
<PAGE>

PRINCIPAL STRATEGY

We do not select individual securities for investment, rather, we buy
substantially all of the securities of various indexes to replicate the total
return of the index. We use an asset allocation model to allocate and reallocate
assets among common stocks (S&P 500 Index), U.S.Treasury bonds (Lehman Brothers
20+ Bond Index) and money market instruments, operating from a target allocation
of 60% stocks and 40% bonds. We invest in asset classes that we believe are
undervalued in order to achieve better long-term, risk-adjusted returns.

We invest primarily in corporate debt securities of any maturity. Under normal
market conditions we expect to maintain a dollar weighted-average maturity for
portfolios of between 10 and 15 years. We may invest up to 25% of Fund assets in
securities considered to be below investment grade ("junk bonds") to enhance
yield.

The Fund invests in the common stocks of large, high-quality domestic companies
with above-average return potential and above-average dividend income. We
consider "large" companies to be those whose market capitalization is greater
than the median of the Russell 1000 Index, which is considered a mid- to large-
capitalization index.

We invest in equity securities that we believe are undervalued in relation to
the overall stock markets.

We invest in common stocks and other equity securities of domestic and foreign
companies whose market capitalization falls within the range of the Russell 1000
Index, which is considered a mid- to large-capitalization index. We buy stocks
of companies that have a strong earnings growth trend and above-average
prospects for future growth, or that we believe are undervalued.

We invest in equity securities of companies based in developed non-U.S.
countries and in emerging markets of the world. We expect that the securities
held by the Fund will be traded on a stock exchange or other market in the
country in which the issuer is based, but they also may be traded in other
countries, including the U.S. We apply a fundamentals-driven, value-oriented
analysis to identify companies with above-average potential for long-term growth
and total return capabilities.

The Fund invests in the common stock of large,high-quality domestic companies
that have superior growth potential. We consider "large" companies to be those
whose market capitalization is greater than the median of the Russell 1000
Index, which is considered a mid- to large-capitalization index.

We invest in high-quality, U.S. dollar-denominated money market
instruments, including debt obligations. We may also make certain other
investments, including, for example, repurchase agreements.

We invest in common stocks issued by companies whose market capitalization falls
within the range of the Russell 2000 Index, which is considered a small
capitalization index. We invest in the common stocks of domestic and foreign
issuers we believe have above-average prospects for capital growth, or that may
be involved in new or innovative products, services and processes.

Variable Trust Prospectus 5
<PAGE>

Summary of Important Risks
- --------------------------------------------------------------------------------

This section summarizes important risks that are common to all of the Funds
described in this Prospectus, and important risks that relate specifically to
particular Funds. Both are important to your investment choice. Additional
information about these and other risks is included in:

. the individual Fund Descriptions later in this Prospectus;
. under the "General Investment Risks" section beginning on page 41; and
. in the Funds' Statement of Additional Information.

An investment in a Fund is not a deposit of Wells Fargo Bank and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. It is possible to lose money by investing in a Fund. Although
the Money Market Fund seeks to maintain the value of your investment at $1.00
per share, it is possible to lose money by investing in the Fund.

COMMON RISKS FOR THE FUNDS

Equity Securities

The Funds invest in equity securities, which are subject to equity market
risk. This is the risk that stock prices will fluctuate and can decline and
reduce the value of a Fund's portfolio. Certain types of stock and certain
individual stocks selected for a Fund's portfolio may underperform or decline
in value more than the overall market. As of the date of this Prospectus, the
equity markets, as measured by the S&P 500 Index and other commonly used
indexes, are trading at or close to record levels. There can be no guarantee
that these levels will continue. The Funds that invest in smaller companies,
in foreign companies (including investments made through American Depositary
Receipts and similar instruments), and in emerging markets are subject to
additional risks, including less liquidity and greater price volatility. A
Fund's investment in foreign companies and emerging markets are also subject
to special risks associated with international investing, including currency,
political, regulatory and diplomatic risks.

Debt Securities

The Funds may invest some of their assets in debt securities, such as notes
and bonds, which are subject to credit risk and interest rate risk. Credit
risk is the possibility that an issuer of an instrument will be unable to make
interest payments or repay principal. Changes in the financial strength of an
issuer or changes in the credit rating of a security may affect its
value. Interest rate risk is the risk that interest rates may increase, which
will reduce the resale value of instruments in a Fund's investments, including
U.S. Government obligations. Debt securities with longer maturities are
generally more sensitive to interest rate changes than those with shorter
maturities. Changes in market interest rates do not affect the rate payable on
debt securities held in a Fund, unless the instrument has adjustable or
variable rate features, which can reduce interest rate risk. Changes in market
interest rates may also extend or shorten the duration of certain types of
instruments, such as asset-backed securities, thereby affecting their value
and the return on your investment.

6 Variable Trust Prospectus
<PAGE>

<TABLE>
<CAPTION>
FUND SPECIFIC RISKS
<S> <C>
The Fund uses an investment model that seeks undervalued asset
classes. There is no guarantee that the asset allocation model will
make accurate determinations or that an asset class we believe is
Asset Allocation Fund undervalued will perform as expected. We may incur higher than
average portfolio turnover resulting from allocation shifts
recommended by the model. Portfolio turnover increases
transaction costs and may trigger capital gains.

We may invest in debt securities that are in low or below investment
grade categories, or are unrated or in default at the time of
purchase. Such debt securities have a much greater risk of default
(or in the case of bonds currently in default, of not returning
principal) and are more volatile than higher-rated securities of
Corporate Bond Fund similar maturity. The value of such debt securities will be affected
by overall economic conditions, interest rates, and the
creditworthiness of the individual issuers. Additionally, these lower
rated debt securities may be less liquid and more difficult to value
than higher rated securities.

Stocks selected for their high dividend income may be more
sensitive to interest rate changes than other stocks. This Fund is
Equity Income Fund primarily subject to the equity securities risks described in the
Common Risks section above.

There is no guarantee that securities selected as "undervalued" will
perform as expected. Stocks of smaller, medium-sized and foreign
Equity Value Fund companies purchased using the value strategy may be more
volatile and less liquid than other comparable securities.

We select growth stocks based on prospects for future earnings,
which may not grow as expected. In addition, at times, the overall
Growth Fund market or the market for value stocks may outperform growth
stocks.
</TABLE>

Variable Trust Prospectus 7
<PAGE>

Summary of Important Risks
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FUND SPECIFIC RISKS
<S> <C>
Foreign company stocks involve special risks, including generally
higher commission rates, political, social and monetary or
diplomatic developments that could affect U.S. investments in
foreign countries. Emerging market countries may experience
increased political instability, and are often dependent on
international trade, making them more vulnerable to events in
International Equity Fund other countries. They may have less developed financial systems and
volatile currencies and may be more sensitive than more mature
markets to a variety of economic factors. Emerging market
securities may also be less liquid than securities of more
developed countries, which may make them more difficult to sell,
particularly during a market downturn. Additionally, dispositions of
foreign securities and dividends and interest payable on those
securities may be subject to foreign taxes.

The Fund is primarily subject to the equity market risks described
in the Common Risks section above. Dividend-producing large
company stocks have experienced unprecedented appreciation in
recent years. There is no guarantee such performance levels will
Large Company Growth Fund continue. We select growth stocks based on prospects for future
earnings, which may not grow as expected.In addition, at times, the
overall market or the market for value stocks may outperform
growth stocks.

Although the Fund seeks to maintain a stable net asset value of
Money Market Fund $1.00 per share, there is no assurance it will be able to do so.

This Fund may invest in companies that pay low or no dividends,
have smaller market capitalizations, have less market liquidity,
have no or relatively short operating histories, or are newly
public companies. Some of these companies have aggressive capital
structures, including high debt levels, or are involved in rapidly
growing or changing industries and/or new technologies. Because the
Fund may invest in such aggressive securities, share prices
Small Cap Growth Fund may rise and fall more than the share prices of other funds. In
addition, our active trading investment strategy may result in a
higher-than-average portfolio turnover ratio, increased trading
expenses, and higher short-term capital gains. We select stocks for
this Fund based in part on their prospects for future earnings,
which may not grow as expected. In addition, at times, the overall
market or the market for value stocks may outperform growth
stocks.
</TABLE>

8 Variable Trust Prospectus
<PAGE>

Performance History
- --------------------------------------------------------------------------------

The information on the following pages shows you how each Fund has
performed and illustrates the variability of a Fund's returns over
time. Each Fund's average annual returns for one-year and since inception
periods are compared to the performance of an appropriate broad-based
index. Please remember that past performance is no guarantee of future
results. The performance for the Funds in this Prospectus do not reflect
fees charged by your variable life insurance/annuity certificate or
contract. If they did, returns would be lower.

The Corporate Bond Fund, Equity Value Fund,International Equity Fund and
Large Company Growth Fund have been in operation less than a calendar
year, therefore, performance information is not shown for these Funds.

Asset Allocation Fund Calendar Year Returns (%)*

'95 '96 '97 '98
28.95 11.46 20.88 25.26

Best Qtr.: Q4 '98 . 15.86% Worst Qtr.: Q3 '98 . -5.38%

* The Fund's year-to-date performance through June 30, 1999 was 6.10%.

<TABLE>
<CAPTION>
Average annual total return (%)
Since
for the period 1 year Inception
<S> <C> <C>
WFVT Asset Allocation Fund (Incept.4/15/94) 25.26 18.24

S&P 500 Index/1/ 28.58 26.49

LB Gov't./Corp. Bond Index/2/ 9.47 8.43
</TABLE>
1. S&P 500 is a registered trademark of Standard & Poor's.
2. Lehman Brothers Government/Corporate Bond Index.

Variable Trust Prospectus 9
<PAGE>

Performance History
- --------------------------------------------------------------------------------

Equity Income Fund Calendar Year Returns (%)*

97' 98'

26.90 18.42

Best Qtr.: Q4 '98 . 15.63% Worst Qtr.: Q3 '98 . -9.73%

* The Fund's year-to-date performance through June 30, 1999 was 12.75%.

<TABLE>
<CAPTION>
Average annual total return (%)
Since
for the period ended 12/31/98 1 year Inception
<S> <C> <C>
WFVT Equity Income Fund (Incept.5/6/96) 18.42 20.71
S&P 500 Index/1/ 28.58 28.96
</TABLE>

1. S&P 500 is a registered trademark of Standard & Poor's.

10 Variable Trust Prospectus
<PAGE>

Growth Fund Calendar Year Returns (%)*

95' 96' 97' 98'

29.19 22.44 17.33 28.81

Best Qtr.: Q4 '98 . 22.93% Worst Qtr.: Q3 '98 . -10.40%

<TABLE>
<CAPTION>
Average annual total return (%)
Since
for the period ended 12/31/98 1 year Inception
<S> <C> <C>
WFVT Growth Fund (Incept.4/12/94) 28.81 21.42
S&P 500 Index/1/ 28.58 26.49
</TABLE>

1. S&P 500 is a registered trademark of Standard & Poor's.

Variable Trust Prospectus 11
<PAGE>

Performance History
- ----------------------------------------------------------------------

Money Market Fund Calendar Year Returns (%)*

95' 96' 97' 98'

5.41 4.72 5.04 4.77

Best Qtr.: Q1 '95 . 1.37% Worst Qtr.: Q3 '94 1.04%

* The Funds's year-to-date performance through June 30, 1999 was 2.08%.

<TABLE>
<CAPTION>
Average annual total return (%)
Since
for the period ended 12/31/98 1 year Inception
<S> <C> <C>
WFVT Money Market Fund (Incept.5/19/94) 4.77 4.91
IBC All Taxable Money Market Fund Average 5.07 5.38
</TABLE>

12 Variable Trust Prospectus
<PAGE>

Small Cap Growth Fund Calendar Year Returns (%)*

96' 97' 98'

31.47 9.87 -14.47

Best Qtr.: Q2 '97 . 18.76% Worst Qtr.: Q3 '98 . -27.93%

* The Fund's year-to-date performance through June 30, 1999 was -4.78%.

<TABLE>
<CAPTION>
Average annual total return (%)
Since
for the period ended 12/31/98 1 year Inception
<S> <C> <C>
WFVT Small Cap Growth Fund (Incept.5/17/95) -14.47 10.26
Russell 2000 Index -2.55 14.78
</TABLE>

Variable Trust Prospectus 13
<PAGE>

Key Information
- -------------------------------------------------------------------------------

Important information you should look for as you decide to invest in a
Fund:

The summary information on the previous pages is designed to provide you with an
overview of each Fund. The sections that follow provide more detailed
information about the investments and management of each Fund.

- --------------------------------------------------------------------------------
Investment Objective and Investment Strategies
The investment objective of each Fund in this Prospectus is non-
fundamental, that is, it can be changed by a vote of the Board of Trustees
alone. The objectives and strategies descriptions for each Fund tell you:

. what the Fund is trying to achieve;

. how we intend to invest your money; and

. what makes a Fund different from the other Funds offered in this
Prospectus.

- --------------------------------------------------------------------------------

Permitted Investments
A summary of the Fund's key permitted investments and practices.

Important Risk Factors
Describes the key risk factors for the Fund, and includes risks described in
the "Summary of Important Risks" and "General Investment Risks" sections.

Words appearing in italicized print and highlighted in color are defined in
the Glossary.

14 Variable Trust Prospectus

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This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Asset Allocation Fund
- --------------------------------------------------------------------------------

Investment Objective

The Asset Allocation Fund seeks long-term total return, consistent with
reasonable risk.

- --------------------------------------------------------------------------------

Investment Strategies

We allocate and reallocate assets among common stocks, U.S.Treasury Bonds
and money market instruments. This strategy is based on the premise that
asset classes are at times undervalued or overvalued in comparison to one
another and that investing in undervalued asset classes offers better long-
term,risk-adjusted returns.

- --------------------------------------------------------------------------------

Permitted Investments
The asset classes we invest in are:

. Stock Investments--We invest in common stocks to replicate the S&P 500
Index.We do not individually select common stocks on the basis of
traditional investment analysis. Instead, we invest in each company
comprising the S&P 500 Index in proportion to its weighting in the S&P
500 Index to match the total return of the S&P 500 Index as closely as
possible;

. Bond Investments--We invest in U.S.Treasury Bonds to replicate the
Lehman Brothers 20+ Bond Index.Bonds in this Index have remaining
maturities of twenty years or more;and

. Money Market Investments--We invest this portion of the Fund in high-
quality money market instruments, including U.S.Government
obligations,obligations of foreign and domestic banks, short-term
corporate debt instruments and repurchase agreements.

In addition,under normal market conditions,we may invest:

. In call and put options on stock indexes,stock index futures,options on
stock index futures,and interest rate futures contracts as a substitute
for a comparable market position in stocks or bonds;

. In interest rate and index swaps;and

. Up to 25% of total assets in foreign obligations qualifying as money
market investments.

We manage the allocation of investments in the Fund's portfolio assuming a
"normal"allocation of 60% stocks and 40% bonds. This is not a "Target"
allocation but rather a measure of the level of risk tolerance for the Fund.

We are not required to keep a minimum investment in any of the three asset
classes described above,nor are we prohibited from investing substantially all
of our assets in a single class. The allocation may shift at any time.We may
temporarily hold assets in cash or in money market instruments, including
U.S.Government obligations, repurchase agreements and other short-term
investments,to maintain liquidity or when we believe it is in the best interests
of shareholders to do so.During such periods,the Fund may not achieve its
objective of long-term total return. The Fund is a diversified portfolio.

16 Variable Trust Prospectus

<PAGE>

Important Risk Factors

Foreign obligations may entail additional risks, such as currency,
political, regulatory and diplomatic risks, which are described in more
detail in the General Investment Risks section below. The value of
investments in options on stock indexes and stock index futures is affected
by price movements for the stocks in a particular index, rather than price
movements for an individual security.

You should consider the "Summary of Important Risks" section on page 6; the
"General Investment Risks" section beginning on page 41; and the specific
risks listed here. They are all important to your investment choice.

Variable Trust Prospectus 17

<PAGE>

Asset Allocation Fund
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial
statements, is available upon request in the Fund's annual report.

- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FUND COMMENCED
ON APRIL 15,1994
-------------------------------------
(Unaudited)
For the period ended: Jun.30, Dec.31,
1999 1998
-------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.45 $ 11.99

Income from investment operations:
Net investment income (loss) 0.11 0.34
Net realized and unrealized gain (loss)
on investments 0.71 2.60

Total from investment operations 0.82 2.94

Less distributions:
Dividends from net investment income (0.11) (0.34)
Distributions from net realized gain 0.00 (1.14)

Total from distributions (0.11) (1.48)

Net asset value, end of period $ 14.16 $ 13.45

Total return (not annualized)/1/ 6.10% 25.26%

Ratios/supplemental data:
Net assets, end of period (000s) $201,116 $156,241

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.96% 0.92%
Ratio of net investment income (loss)
to average net assets 1.68% 2.62%

Portfolio turnover 27% 29%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.20% 1.11%

Ratio of net investment income (loss)
to average net assets prior to
waived fees and reimbursed
expenses (annualized) 1.44% 2.43%
- --------------------------------------------------------------------------------
/1/ Total returns do not include sales charges.
</TABLE>

18 Variable Trust Prospectus

<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
- --------------------------------------------------------------------------------
$ 11.42 $ 11.27 $ 9.71 $10.00

0.60 0.56 0.55 0.30

1.73 0.69 2.21 (0.19)

2.33 1.25 2.76 0.11

(0.60) (0.56) (0.55) (0.30)
(1.16) (0.54) (0.65) (0.10)

(1.76) (1.10) (1.20) (0.40)

$ 11.99 $ 11.42 $ 11.27 $ 9.71

20.88% 11.46% 28.95% 1.13%

$ 86,506 $ 51,797 $25,467 $7,464

0.80% 0.69% 0.41% 0.00%

5.20% 5.34% 5.58% 6.30%

156% 4% 97% 0%

0.85% 0.80% 1.22% 2.24%

5.15% 5.23% 4.77% 4.06%
- -------------------------------------------------------------------------------

Variable Trust Prospectus 19
<PAGE>

Corporate Bond Fund
- --------------------------------------------------------------------------------

Portfolio Managers: N. Graham Allen, FCMA; John W. (Jack) Burgess; Jacqueline
A. Flippin; Daniel J. Kokoszka, CFA; Scott Smith, CFA

- --------------------------------------------------------------------------------
Investment Objective
The Corporate Bond Fund seeks a high level of current income, consistent
with reasonable risk.

- --------------------------------------------------------------------------------

Investment Strategies
We seek a high level of current income by actively managing a diversified
portfolio consisting primarily of corporate debt securities. When purchasing
these securities we consider, among other things, the yield differences for
various corporate sectors, and the current economic cycle's potential effect on
the various types of bonds. We may invest in securities of any maturity. Under
normal market conditions, we expect to maintain a dollar-weighted average
maturity for portfolio securities of between 10 and 15 years. We also may invest
in U.S. Government obligations.

- --------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of our total assets in corporate debt securities;

. in U.S.Government obligations;

. up to 25% of our total assets in debt securities that are below
investment grade;and

. up to 25% of our total assets in securities of foreign issuers.

- --------------------------------------------------------------------------------

Important Risk Factors We may invest in securities regardless of their rating,
or in securities that are unrated or in default at the time of purchase.

You should consider the "Summary of Important Risks" section on page 6;the
"General Investment Risks" section beginning on page 41; and the specific risks
listed here. They are all important to your investment choice.

20 Variable Trust Prospectus
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- --------------------------------------------------------------------------------
<PAGE>

Equity Income Fund
- --------------------------------------------------------------------------------

Portfolio Managers: David L. Roberts, CFA; Gary J. Dunn, CFA

---------------------------------------------------------------------------

Investment Objective
The Equity Income Fund seeks long-term capital appreciation and above-
average dividend income.

---------------------------------------------------------------------------

Investment Strategies
We invest primarily in the common stock of large, high-quality domestic
companies that have above-average return potential based on current market
valuations. We primarily emphasize investments in securities of companies
with above-average dividend income. We use various valuation measures when
selecting securities for the portfolio, including above-average dividend
yields and below industry average price-to-earnings, price-to-book and
price-to-sales ratios. We consider "large" companies to be those whose
market capitalization is greater than the median of the Russell 1000 Index.

---------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in income-producing equity securities; and

. in issues of companies with market capitalization greater than the median
of the Russell 1000 Index (as of March 31, 1999, this median was
approximately $3.7 billion; the median is expected to change frequently).

We may invest in preferred stocks, convertible securities, and securities
of foreign companies. We will normally limit our investment in a single
issuer to 10% or less of our total assets.

We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investments, either to
maintain liquidity or for short-term defensive purposes when we believe it
is in the best interests of shareholders to do so.During these periods, the
Fund may not achieve its objective of long-term capital appreciation and
above-average dividend income.

---------------------------------------------------------------------------

Important Risk Factors
Stocks selected for their high dividend yields may be more sensitive to
interest rate changes than other stocks.

22 Variable Trust Prospectus
<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND COMMENCED
ON MAY 6,1996
---------------------------------------------------------------------
(Unaudited)
Jun.30, Dec.31, Dec.31, Dec.31,
For the period ended:
1999 1998 1997 1996
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.00 $ 13.68 $ 10.91 $10.00

Income from investment operations:
Net investment income (loss) 0.09 0.18 0.14 0.08
Net realized and unrealized gain (loss)
on investments 1.95 2.34 2.79 0.92

Total from investment operations 2.04 2.52 2.93 1.00

Less distributions:
Dividends from net investment income 0.00 (0.18) (0.14) (0.08)
Distributions from net realized gain 0.00 (0.02) (0.02) (0.01)

Total from distributions 0.00 (0.20) (0.16) (0.09)

Net asset value, end of period $ 18.04 $ 16.00 $ 13.68 $10.91

Total return (not annualized)/1/ 12.75% 18.42% 26.90% 9.95%

Ratios/supplemental data:
Net assets, end of period (000s) $114,900 $86,069 $39,888 $9,415

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to
average net assets 1.22% 1.47% 1.85% 2.31%

Portfolio turnover 1.00% 1.58% 2.85% 4.20%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.09% 1.10% 1.34% 2.51%

Ratio of net investment income (loss)
to average net assets prior to waived fees
and reimbursed expenses (annualized) 0.93% 1.17% 1.31% 0.60%
- -------------------------------------------------------------------------------
/1/ Total returns do not include sales charges.
</TABLE>

Variable Trust Prospectus 23
<PAGE>

Equity Value Fund
- --------------------------------------------------------------------------------

Portfolio Managers: Rex Wardlaw, CFA; Allen Wisniewski, CFA; Gregg
Giboney, CFA

---------------------------------------------------------------------------

Investment Objective
The Equity Value Fund seeks long-term capital appreciation.

---------------------------------------------------------------------------

Investment Strategies
We seek long-term capital appreciation by investing in a diversified
portfolio composed primarily of equity securities that are trading at low
price-to-earnings ratios, as measured against the stock market as a whole
or against the individual stock's own price history. In addition we look at
the price-to-book value and price-to-cash flow ratios of companies for
indications of attractive valuation. We use both quantitative and
qualitative analysis to identify possible investments. Dividends are a
secondary consideration when selecting stocks.We may purchase particular
stocks when we believe that a history of strong dividends may increase
their market value.

---------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. primarily in common stocks of both large, well-established companies and
aller companies with market capitalization exceeding $50 million at the
time of purchase;

. in debt securities that may be converted into the common stock of both
U.S. and foreign companies; and

. up to 25% of our assets in foreign companies through American Depositary
Receipts and similar instruments.

We may also purchase convertible debt securities with the same
characteristics as common stock, as well as in preferred stock and
warrants.

We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make short-term investments, either to maintain
liquidity or for short-term defensive purposes when we believe it is in the
best interests of shareholders. During such periods, the Fund may not
achieve its objective of long-term capital appreciation.

---------------------------------------------------------------------------

Important Risk Factors
There is no guarantee that securities selected as "undervalued" will
perform as expected. Stocks of smaller, medium-sized and foreign companies
purchased using the value approach may be more volatile and less liquid
than other comparable securities.

You should consider the "Summary of Important Risks" section on page 6, the
"General Investment Risks" section beginning on page 41, and the specific
risks listed here. They are all important to your investment choice.

24 Variable Trust Prospectus

<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND COMMENCED
ON MAY 1,1998
---------------------------------------
(Unaudited)
Jun.30, Dec.31,
For the period ended:
1999 1998
--------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.55 $ 10.00

Income from investment operations:
Net investment income (loss) 0.05 0.07
Net realized and unrealized gain (loss)
on investments 0.72 (0.45)

Total from investment operations 0.77 (0.38)

Less distributions:
Dividends from net investment income (0.05) (0.07)
Distributions from net realized gains 0.00 0.00

Total from distributions (0.05) (0.07)

Net asset value, end of period $ 10.27 $ 9.55

Total return (not annualized)/1/ 8.05% (3.76%)

Ratios/supplemental data:
Net assets,end of period (000s) $22,179 $11,072

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 1.09% 1.09%
Ratio of net investment income (loss) to
average net assets 1.06% 1.54%

Portfolio turnover 57% 27%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.52% 2.52%

Ratio of net investment income (loss)
to average net assets prior to waived
fees and reimbursed expenses (annualized) 0.63% 0.11%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

/1/ Total returns do not include sales charges.

Variable Trust Prospectus 25
<PAGE>

Growth Fund
- --------------------------------------------------------------------------------

Portfolio Manager: Kelli Hill

---------------------------------------------------------------------------

Investment Objective
The Growth Fund seeks long-term capital appreciation.

---------------------------------------------------------------------------

Investment Strategies
We seek long-term capital appreciation by investing primarily in common
stocks and other equity securities and we look for companies that have a
strong earnings growth trend that we believe have above-average prospects
for future growth. We focus our investment strategy on larger
capitalization stocks.

---------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in equity securities, including common and
preferred stocks, and securities convertible into common stocks;

. the majority of total assets in issues of companies with market
capitalization that falls within, but towards the higher end of, the
range of the Russell 1000 Index, an index comprised of the 1,000 largest
U.S. companies based on total market capitalization, that is considered a
mid-capitalization index (As of March 31, 1999, this range was from $20
million to $452 billion. The range is expected to change frequently.);
and

. up to 25% of total assets in foreign companies through American
Depositary Receipts ("ADRs") and similar instruments.

---------------------------------------------------------------------------

Important Risk Factors
This Fund is primarily subject to the risks associated with equity
securities, including foreign equity and mid-capitalization equity
securities, described under Common Risks in the "Summary of Important
Risks" section. The advisor selects growth stocks based on prospects for
future earnings, which may not grow as expected. In addition, at times, the
overall market or the market for value stocks may outperform growth stocks.

26 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Growth Fund
- -------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

- -------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND COMMENCED
ON APRIL 12,1994
-------------------------------
(Unaudited)
For the period ended: Jun.30, Dec.31,
1999 1998
-------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 20.05 $ 16.79

Income from investment operations:
Net investment income (loss) 0.01 0.09
Net realized and unrealized gain (loss)
on investments 2.15 4.65

Total from investment operations 2.16 4.74

Less distributions:
Dividends from net investment income (0.01) (0.09)
Distributions from net realized gain 0.00 (1.39)

Total from distributions (0.01) (1.48)

Net asset value, end of period $ 22.20 $ 20.05

Total return (not annualized)/1/ 10.85% 28.81%

Ratios/supplemental data:
Net assets, end of period (000s) $116,265 $100,927

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 1.10% 1.04%
Ratio of net investment income (loss)to
average net assets 0.13% 0.51%

Portfolio turnover 29% 69%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.27% 1.18%

Ratio of net investment income (loss)
to average net assets prior to
waived fees and reimbursed
expenses (annualized) (0.04%) 0.37%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

/1/ Total returns do not include sales charges.

28 Variable Trust Prospectus

<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$15.34 $ 12.91 $ 10.30 $10.00

0.19 0.20 0.22 0.14

2.48 2.68 2.77 0.30

2.67 2.88 2.99 0.44

(0.19) (0.20) (0.22) (0.14)
(1.03) (0.25) (0.16) 0.00

(1.22) (0.45) (0.38) (0.14)

$16.79 $ 15.34 $ 12.91 $10.30

17.33% 22.44% 29.19% 4.47%

$71,944 $33,381 $10,920 $2,136

0.65% 0.60% 0.43% 0.00%

1.19% 1.53% 2.05% 3.00%

124% 95% 84% 21%

1.01% 1.12% 2.02% 10.18%

0.83% 1.01% 0.46% (7.18%)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

Variable Trust Prospectus 29
<PAGE>

International Equity Fund*
- --------------------------------------------------------------------------------

Portfolio Managers: Katherine Schapiro, CFA; Stacey Ho, CFA

---------------------------------------------------------------------------

Investment Objective
The International Equity Fund seeks total return, with an emphasis on
capital appreciation, over the long-term, by investing primarily in equity
securities of non-U.S. companies.

---------------------------------------------------------------------------

Investment Strategies
We actively manage a diversified portfolio of equity securities of
companies based in developed non-U.S. countries and in emerging markets of
the world. We expect that the securities we hold will be traded on a stock
exchange or other market in the country in which the issuer is based, but
they also may be traded in other countries, including the U.S.

We apply a fundamentals-driven,value-oriented analysis to identify
companies with above-average potential for long-term growth. The financial
data we examine includes both the company's historical performance results
and its projected future earnings. Among other key criteria we consider are
a company's local, regional or global franchise; history of effective
management demonstrated by expanding revenues and earnings growth; prudent
financial and accounting policies and ability to take advantage of a
changing business environment.

---------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 80% of total assets in equity securities of companies located or
operating outside the U.S.;

. in a minimum of five countries exclusive of the U.S.;

. up to 50% of total assets in any one country;

. up to 25% of total assets in emerging markets;

. in issuers with an average market capitalization of $10 billion or
more, although we may invest in equity securities of issuers with market
capitalization as low as $250 million;and

. in equity securities including common stocks, and preferred stocks, and
in warrants, convertible debt securities, American Depositary Receipts
("ADRs"), Government Depositary Receipts ("GDRs") (and similar
instruments) and shares of other mutual funds.

Although it is not our intention to do so,we reserve the right to hedge the
portfolio's foreign currency exposure by purchasing or selling foreign
currency futures and forward foreign currency contracts.

We may temporarily hold assets in cash or in money market instruments,
including U.S. Government obligations, shares of other mutual funds and
repurchase agreements, or make other short-term investments, either to
maintain liquidity or for short-term defensive purposes when we believe it
is in the best interests of shareholders to do so. We may also, for
temporary defensive purposes, invest without limit in cash, short-term debt
and equity securities of U.S. companies when we believe it is in the best
interests of shareholders to do so. During these periods, the Fund may not
achieve its objective of total return, with an emphasis on capital
appreciation.

* As of the date of this Prospectus, this Fund has not commenced
operations.

30 Variable Trust Prospectus
<PAGE>

Important Risk Factors

Foreign company stocks may lose value or be more difficult to trade as a
result of adverse changes in currency exchange rates or other developments
in the issuer's home country. Concentrated investment in any single
country, especially a less developed country, would make the Fund's value
more sensitive to economic, currency and regulatory changes within that
country. Emerging market countries are often dependent on international
trade and are therefore often vulnerable to events in other countries. They
may have less developed financial systems and volatile currencies and may
be more sensitive than more mature markets to a variety of economic
factors. Emerging market securities may also be less liquid than securities
of more developed countries, which may make them more difficult to sell,
particularly during a market downturn.

Variable Trust Propectus 31
<PAGE>

Large Company Growth Fund
- --------------------------------------------------------------------------------

Portfolio Managers: John S.Dale, CFA; Gary E. Nussbaum, CFA

- --------------------------------------------------------------------------------

Investment Objective
The Large Company Growth Fund seeks long-term capital appreciation by
investing primarily in large, high-quality domestic companies that the
Advisor believes have superior growth potential.

- --------------------------------------------------------------------------------

Investment Strategies
We consider "large" companies to be those whose market capitalization is
greater than the median of the Russell 1000 Index, which, as of March
31,1999, was approximately $3.7 billion, and is expected to change
frequently. In selecting securities for the Fund, we seek issuers whose
stock is attractively valued with fundamental characteristics that are
significantly better than the market average and that support internal
earnings growth capability. We may invest in the securities of companies
whose growth potential we believe is generally unrecognized or misperceived
by the market.

- --------------------------------------------------------------------------------
Permitted Investments
We will not invest more than 10% of the Fund's total assets in the
securities of a single issuer. We may invest up to 20% of the Fund's total
assets in the securities of foreign companies and may hedge against
currency risk by using foreign currency forward contracts.

- --------------------------------------------------------------------------------

Important Risk Factors
Foreign company stocks may lose value or be more difficult to trade as a
result of adverse changes in currency exchange rates or other developments
in the issuer's home country. Concentrated investment in any single
country, especially a less developed country, would make the Fund's value
more sensitive to economic, currency and regulatory changes within that
country. Emerging market countries are often dependent on international
trade and are therefore often vulnerable to events in other countries. They
may have less developed financial systems and volatile currencies and may
be more sensitive than more mature markets to a variety of economic
factors. Emerging market securities may also be less liquid than securities
of more developed countries, which may make them more difficult to
sell, particularly during a market downturn.

We select growth stocks based on prospects for future earnings, which may
not grow as expected. In addition, at times, the overall market or the
market for value stocks may outperform growth stocks.

You should consider the "Summary of Important Risks" section on page 6, the
"General Investment Risks" section beginning on page 41, and the specific
risks listed above. They are all important to your investment choice.

32 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- -------------------------------------------------------------------------------
<PAGE>

Money Market Fund
- -------------------------------------------------------------------------------

Investment Objective
The Money Market Fund seeks high current income, while preserving capital
and liquidity.

- -------------------------------------------------------------------------------

Investment Strategies
We actively manage a portfolio of U.S. dollar-denominated high-quality
money market instruments, including debt obligations. We may also make
certain other investments including, for example, repurchase agreements.

Permitted Investments
Under normal market conditions, we invest in:

. commercial paper rated at the date of purchase as "P-1" by Moody's or "A-
1+" or "A-1" by S&P;

. negotiable certificates of deposit and banker's acceptances;

. repurchase agreements;

. U.S.Government obligations;

. short-term, U.S. dollar-denominated debt obligations of U.S. branches of
foreign banks and foreign branches of U.S. banks;

. municipal obligations; and

. shares of other money market funds.

- -------------------------------------------------------------------------------

Important Risk Factors
Although we seek to maintain a $1.00 per share NAV, there is no guarantee
that we will be able to do so. Generally, short-term funds do not earn as
high a level of income as funds that invest in longer-term instruments.

Municipal obligations rely on the creditworthiness or revenue production of
their issuers. Municipal obligations may be difficult to obtain because of
limited supply, which may increase the cost of such securities and
effectively reduce the portfolio's yield. Typically, less information is
available about a municipal issuer than is available for other types of
securities issuers. Investing in shares of other money market funds will
subject the Fund to the fees charged by the other funds, which will reduce
returns from these investments.

34 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- -------------------------------------------------------------------------------
<PAGE>

Money Market Fund
- -------------------------------------------------------------------------------

These tables are intended to help you understand the Fund's financial
performance for the past 5 years (or since inception, if shorter). KPMG LLP
audited this information which, along with their report and the Fund's financial
statements, is available upon request in the Fund's annual report.

- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND COMMENCED
ON MAY 19,1994
--------------------------------------
(Unaudited)
For the period ended: Jun. 30, Dec. 31,
1999 1998
--------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00

Income from investment operations:
Net investment income (loss) 0.02 0.05
Net realized and unrealized gain (loss)
on investments 0.00 0.00

Total from investment operations 0.02 0.05

Less distributions:
Dividends from net investment income (0.02) (0.05)
Distributions from net realized gain 0.00 0.00

Total from distributions (0.02) (0.05)

Net asset value, end of period $ 1.00 $ 1.00

Total return (not annualized)/1/ 2.08% 4.77%

Ratios/supplemental data:
Net assets, end of period (000s) $32,314 $26,319

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.86% 0.82%
Ratio of net investment income (loss) to
average net assets 4.15% 4.62%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.18% 1.28%

Ratio of net investment income (loss)
to average net assets prior to
waived fees and reimbursed
expenses (annualized) 3.83% 4.16%
</TABLE>

/1/ Total returns do not include sales charges.

36 Variable Trust Prospectus
<PAGE>

Financial Highlights
- -------------------------------------------------------------------------------

- -------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00

0.05 0.05 0.05 0.03

0.00 0.00 0.00 0.00

0.05 0.05 0.05 0.03

(0.05) (0.05) (0.05) (0.03)
0.00 0.00 0.00 0.00

(0.05) (0.05) (0.05) (0.03)

$ 1.00 $ 1.00 $ 1.00 $ 1.00

5.04% 4.72% 5.41% 2.71%

$14,788 $12,667 $5,823 $1,492

0.53% 0.51% 0.42% 0.00%

4.95% 4.64% 5.15% 4.63%

1.07% 1.22% 3.83% 11.43%

4.41% 3.93% 1.74% (6.80%)
</TABLE>

Variable Trust Prospectus 37
<PAGE>

Small Cap Growth Fund
- -------------------------------------------------------------------------------

Portfolio Manager: Thomas Zeifang, CFA; Chris Greene

- -------------------------------------------------------------------------------
Investment Objective
The Small Cap Growth Fund seeks long-term capital appreciation.

- -------------------------------------------------------------------------------

Investment Strategies
We actively manage a diversified portfolio of common stocks issued by
companies whose market capitalization falls within the range of the Russell
2000 Index. As of March 31, 1999, the range was $3.8 million to $8.55
billion, but it is expected to change frequently. We will sell the stock of
any company whose market capitalization exceeds the range of this index for
sixty consecutive days.

We invest in the common stocks of domestic and foreign companies we believe
have above-average prospects for capital growth, or that may be involved in
new or innovative products, services and processes.

- -------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in an actively managed, broadly diversified
portfolio of small cap growth-oriented common stocks;

. in at least 20 common stock issues spread across multiple industry groups
and sectors of the economy;

. up to 40% of total assets in initial public offerings or recent start-ups
and newer issues;and

. no more than 25% of total assets in foreign companies through American
Depositary Receipts or similar issues.

- -------------------------------------------------------------------------------

Important Risk Factors
This Fund is designed for investors willing to assume above-average risk.
We may invest in companies that:

. pay low or no dividends;

. have smaller market capitalization;

. have less market liquidity;

. have no or relatively short operating histories, or are new public
companies or are initial public offerings, whose stocks are typically
more volatile than stocks of more seasoned companies;

. have aggressive capital structures including high debt levels; or

. are involved in rapidly growing or changing industries and/or new
technologies.

38 Variable Trust Prospectus
<PAGE>

Because we invest in aggressive securities, share prices may rise and fall more
than the share prices of other funds. In addition, our active trading investment
strategy may result in a higher-than-average portfolio turnover ratio, increased
trading expenses,and higher short-term capital gains. Stocks of foreign
companies, whether purchased directly or through American Depositary Receipts,
may be more volatile and less liquid than other comparable securities.

You should consider the "Summary of Important Risks" section on page 6; the
"General Investment Risks" section beginning on page 41; and the specific risks
listed here. They are all important to your investment choice.

Variable Trust Prospectus 39
<PAGE>

Small Cap Growth Fund Financial Highlights
- --------------------------------------------------------------------------------

FOR A SHARE OUTSTANDING

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
FUND COMMENCED
ON MAY 1,1995
------------------------------------------------------------
(Unaudited)
Jun. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
For the period ended: 1999 1998 1997 1996 1995
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.88 $ 12.77 $ 13.50 $ 11.21 $10.00

Income from investment operations:
Net investment income (loss) 0.00 0.03 0.01 0.02 0.06
Net realized and unrealized gain (loss)
on investments (0.52) (1.89) 1.24 3.51 1.54

Total from investment operations (0.52) (1.86) 1.25 3.53 1.60

Less distributions:
Dividends from net investment income 0.00 (0.03) (0.01) (0.02) (0.06)
Distributions from net realized gain 0.00 0.00 (1.59) (1.22) (0.33)

Total from distributions 0.00 (0.03) (1.60) (1.24) (0.39)

Net asset value, end of period $ 10.36 $ 10.88 $ 12.77 $ 13.50 $11.21

Total return (not annualized)/1/ (4.78%) (14.47%) 9.87% 31.47% 15.95%

Ratios/supplemental data:
Net assets, end of period (000s) $11,672 $13,295 $11,482 $ 6,091 $2,027

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to
average net assets (0.03%) 0.31% 0.07% 0.16% 1.02%

Portfolio turnover 155.00% 135.30% 208.95% 194.87% 51.16%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.61% 1.51% 1.88% 2.82% 5.38%

Ratio of net investment income (loss)
to average net assets prior to waived fees
and reimbursed expenses (annualized) (0.84%) (0.40%) (1.01%) (1.86%) (3.56%)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

/1/ Total returns do not include sales charges.

40 Variable Trust Prospectus
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

Understanding the risks involved in mutual fund investing will help you make an
informed decision that takes into account your risk tolerance and preferences.
You should carefully consider the risks common to investing in all mutual funds,
including Wells Fargo Variable Trust Funds. Certain common risks are identified
in the Summary of Important Risks on page 6. Other risks of mutual fund
investing include the following:

. Unlike bank deposits, such as CDs or savings accounts, mutual funds are not
insured by the FDIC.

. We cannot guarantee that we will meet our investment objectives. With
respect to the Money Market Fund, we cannot guarantee that we will be able
to maintain a $1.00 per share net asset value.

. We do not guarantee the performance of a Fund, nor can we assure you that
the market value of your investment will not decline. We will not "make
good" any investment loss you may suffer, nor can anyone we contract with
to provide certain services, such as selling agents or investment advisors,
offer or promise to make good any such losses.

. Share prices--and therefore the value of your investment--will increase and
decrease with changes in the value of the underlying securities and other
investments. This is referred to as price volatility.

. Investing in any mutual fund, including those deemed conservative, involves
risk, including the possible loss of any money you invest.

. An investment in a single Fund, by itself, does not constitute a complete
investment plan.

. The Funds that invest in smaller companies, foreign companies (including
investments made through American Depositary Receipts and similar
instruments), and in emerging markets are subject to additional risks,
including less liquidity and greater price volatility. A Fund's investment
in foreign and emerging markets may also be subject to special risks
associated with international trade, including currency, political,
regulatory and diplomatic risk.

. The Funds may invest a portion of their assets in U.S. Government
obligations. It is important to recognize that the U.S. Government does not
guarantee the market value or current yield of those obligations. Not all
U.S. Government obligations are backed by the full faith and credit of the
U.S. Treasury, and the U.S. Government's guarantee does not extend to the
Funds themselves.

. The Funds may also use certain derivative instruments, such as options or
futures contracts. The term "derivatives" covers a wide number of
investments, but in general it refers to any financial instrument whose
value is derived, at least in part, from the price of another security or a
specified index, asset or rate. Some derivatives may be more sensitive to
interest rate changes or market moves, and some may be susceptible to
changes in yields or values due to their structure or contract terms.

. The Funds also may invest a portion of their assets in GNMAs, FNMAs and
FHLMCs. Each are mortgage-backed securities representing partial ownership
of a pool of residential mortgage loans. A "pool" or group of such
mortgages is assembled and, after being approved by the issuing entity, is
offered to invest through securities dealers. Mortgage-backed securities
are subject to prepayment risk, which can alter the maturity of the
securities and also reduce the rate of return on such investments.
Collateralized mortgage obligations ("CMOs") represent principal-only and
interest-only portions of such securities that are subject to increased
interest-rate and credit risk.

Variable Trust Prospectus 41
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

. The Funds may enter into forward currency exchange contracts ("forward
contracts") to try to reduce currency exchange risks to the Funds from
foreign securities investments. A forward contract is an obligation to buy
or sell a specific currency for an agreed price at a future date which is
individually negotiated and privately traded by currency traders and their
customers.

. The market value of lower-rated debt securities, also known as "junk
bonds," and unrated securities tends to reflect individual developments
affecting the issuer to a greater extent than the market value of higher-
rated securities, which react primarily to fluctuations in the general
level of interest rates. Lower-rated securities also tend to be more
sensitive to economic conditions than higher-rated securities. These lower-
rated debt securities are considered by the rating agencies, on balance, to
be predominantly speculative with respect to the issuer's capacity to pay
interest and repay principal in accordance with the terms of the obligation
and generally involve more credit risk than securities in higher-rating
categories. Even securities rated "BBB"by S&P or by Moody's ratings which
are considered investment-grade, possess some speculative characteristics.

Investment practices and risk levels are carefully monitored. Every attempt is
made to ensure that the risk exposure for each Fund remains within the
parameters of its objective.

What follows is a general list of the types of risks (some of which are
described previously) that may apply to a given Fund and a table showing some of
the additional investment practices that each Fund may use and the risks
associated with them. Additional information about these practices is available
in the Statement of Additional Information.

Counter-Party Risk--The risk that the other party in a repurchase agreement or
other transaction will not fulfill its contract obligation.

Credit Risk--The risk that the issuer of a debt security will be unable to make
interest payments or repay principal on schedule. If an issuer does default, the
affected security could lose all of its value, or be renegotiated at a lower
interest rate or principal amount. Affected securities might also lose
liquidity. Credit risk also includes the risk that a party in a transaction may
not be able to complete the transaction as agreed.

Currency Risk--The risk that a change in the exchange rate between U.S. dollars
and a foreign currency may reduce the value of an investment made in a security
denominated in that foreign currency.

Diplomatic Risk--The risk that an adverse change in the diplomatic relations
between the United States and another country might reduce the value or
liquidity of investments in either country.

Emerging Market Risk--The risk that the emerging market, as defined in the
glossary, may be more sensitive to certain economic changes. For example,
emerging market countries are often dependent on international trade and are
therefore often vulnerable to recessions in other countries. They may have
obsolete financial systems, have volatile currencies and may be more sensitive
than more mature markets to a variety of economic factors. Emerging market
securities may also be less liquid than securities of more developed countries
and could be difficult to sell, particularly during a market downturn.

Experience Risk--The risk presented by a new or innovative security. The risk is
that insufficient experience exists to forecast how the security's value might
be affected by various economic conditions.

Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.

42 Variable Trust Prospectus
<PAGE>

Interest Rate Risk--The risk that changes in interest rates can reduce the value
of an existing security. Generally, when interest rates increase, the value of a
debt security decreases. The effect is usually more pronounced for securities
with longer maturities.

Leverage Risk--The risk that an investment practice, such as lending portfolio
securities or engaging in forward commitment or when-issued securities
transactions, may increase a Fund's exposure to market risk, interest rate risk
or other risks by, in effect, increasing assets available for investment.

Liquidity Risk--The risk that a security cannot be sold at the time desired, or
cannot be sold without adversely affecting the price.

Market Risk--The risk that the value of a stock, bond or other security will be
reduced by market activity. This is a basic risk associated with all securities.

Political Risk--The risk that political actions, events or instability may be
unfavorable for investments made in a particular nation's or region's industry,
government or markets.

Prepayment Risk--The risk that consumers will prepay mortgage loans, which can
alter the maturity of a mortgage-backed security, increase interest-rate risk,
and reduce rates of return.

Regulatory Risk--The risk that changes in government regulations will adversely
affect the value of a security. Also the risk that an insufficiently regulated
market might permit inappropriate trading practices.

Year 2000 Risk--The Funds' principal service providers have advised the Funds
that they are working on the necessary changes to their computer systems to
avoid any system failure based on an inability to distinguish the year 2000 from
the year 1900, and that they expect their systems to be adapted in time. There
can, of course, be no assurance of success. In addition, the companies or
entities in which the Funds invest also could be adversely impacted by the Year
2000 issue, especially foreign entities, which may be less prepared for Year
2000. The extent of such impact cannot be predicted.

In addition to the general risks discussed above, you should carefully consider
and evaluate any special risks that may apply to investing in a particular Fund.
See the "Important Risk Factors" section in the summary for each Fund. You
should also see the Statements of Additional Information for additional
information about the investment practices and risks particular to each
Fund.

Variable Trust Prospectus 43
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

Investment Practice/Risk

The following table lists some of the additional investment practices of the
Funds, including some not disclosed in the Investment Objective and Investment
Strategies sections of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that practice,
but are among the more prominent. Market risk is assumed for each. See the
Investment Objective and Investment Strategies for each Fund or the Statement of
Additional Information for more information on these practices.

Investment practices and risk levels are carefully monitored. We attempt to
ensure that the risk exposure for each Fund remains within the parameters of its
objective.

Remember, each Fund is designed to meet different investment needs and
objectives.

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY
ALLOCATION BOND INCOME VALUE GROWTH
INVESTMENT PRACTICE RISK
<S> <C> <C> <C> <C> <C> <C>
Borrowing Policies
The ability to borrow from banks for Leverage Risk . . . . .
temporary purposes to meet shareholder
redemptions.

Emerging Markets
Investments in companies located or Information,
operating in countries considered Political, Regulatory, . .
developing or to have "emerging" stock Diplomatic, Liquidity
markets. Generally, these investments and Currency Risk
securities have the same type of risks as
foreign securities, but to a higher degree.

Floating and Variable Rate Debt Interest Rate and . . . . .
Instruments with interest rates that are Credit Risk
adjusted either on a schedule or when an
index or benchmark changes.

Foreign Obligations Information, . .
Debt of a foreign government or corporation Political, Regulatory,
or dollar denominated debt obligations of Diplomatic, Liquidity
foreign branches of U.S. banks or U.S. and Currency Risk
branches of foreign banks.

Foreign Securities Information, . . . .
Equity securities issued by a non-U.S. company Political, Regulatory,
or debt of a or foreign government in the Diplomatic, Liquidity
form of an American Depositary Receipt ("ADR") and Currency Risk
or similar instrument. Foreign securities may
also be emerging markets securities, which are
subject to the same risks, but to a higher
degree.

Forward Commitment, When-Issued and
Delayed Delivery Transactions Interest Rate,
Securities bought or sold for delivery at a Leverage, Credit and . . . . .
later date or bought or sold for a fixed Experience Risk
price at a fixed date.

INTERNATIONAL LARGE MONEY SMALL
EQUITY COMPANY MARKET CAP
INVESTMENT PRACTICE RISK GROWTH GROWTH
<S> <C> <C> <C> <C> <C>
Borrowing Policies Leverage Risk . . . .
The ability to borrow from banks for
temporary purposes to meet shareholder
redemptions.

Emerging Markets Information,
Investments in companies located or Political, Regulatory, . . .
operating in countries considered Diplomatic, Liquidity
developing or to have "emerging" stock and Currency Risk
markets. Generally, these investments
securities have the same type of risks as
foreign securities, but to a higher degree.

Floating and Variable Rate Debt Interest Rate and . . .
Instruments with interest rates that are Credit Risk
adjusted either on a schedule or when an
index or benchmark changes.

Foreign Obligations Information, .
Debt of a foreign government or corporation Political, Regulatory,
or dollar denominated debt obligations of Diplomatic, Liquidity
foreign branches of U.S. banks or U.S. and Currency Risk
branches of foreign banks.

Foreign Securities Information, . . .
Equity securities issued by a non-U.S. company Political, Regulatory,
or debt of a or foreign government in the Diplomatic, Liquidity
form of an American Depositary Receipt ("ADR") and Currency Risk
or similar instrument. Foreign securities may
also be emerging markets securities, which are
subject to the same risks, but to a higher
degree.

Forward Commitment, When-Issued and Interest Rate, . . .
Delayed Delivery Transactions Leverage, Credit and
Securities bought or sold for delivery at a Experience Risk
later date or bought or sold for a fixed
price at a fixed date.
</TABLE>

44 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY
ALLOCATION BOND INCOME VALUE GROWTH
INVESTMENT PRACTICE RISK
<S> <C> <C> <C> <C> <C> <C>
High Yield Securities
Debt securities of lower quality, also known
as "junk bonds," that produce generally higher
rates of return. These securities tend to be Interest Rate and
more sensitive to economic conditions and Credit Risk . . .
during sustained periods of rising interest
rates, may experience increased interest
and/or principal defaults.

Illiquid Securities
A security that cannot be readily sold, or
cannot be readily sold without negatively Liquidity Risk . . . . .
affecting its fair price. Limited to 15% of
total assets.

Loan Participations
Debt obligations that represent a portion of a
larger loan made by a bank. Generally sold
without guarantee or recourse, some Credit Risk .
participations sell at a discount because
of the borrower's credit problems. Limited
to 5% of total assets.

Loans of Portfolio Securities
The practice of loaning securities to Credit,
brokers, dealers and financial institutions Counter-Party and . . . . .
to increase return on those securities. Leverage Risk
Loans may be made up to Investment Company Act
of 1940 limits (currently one-third of total
assets including the value of collateral
received).

Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional Interest
interest in pools of consumer loans, such as Rate, Credit, . .
mortgage loans, car loans, credit card debt, or Prepayment and
receivables held in trust. Experience Risk

Options
The right or obligation to receive or deliver
a security or cash payment depending on the
security's price or the performance of an Credit, Information . . .
index or benchmark. Types of options used may and Liquidity Risk
include: options on securities, options on a
stock index, stock index futures and options on
stock index futures to protect liquidity and
portfolio value.

Other Mutual Funds
The temporary investment in shares of another
mutual fund. A pro rata portion of the other
fund's expenses, in addition to the expenses Market Risk . . . . .
paid by the Funds, will be borne by Fund
shareholders.

Privately Issued Securities
Securities that are not publicly traded but
which may be resold in accordance with Rule Liquidity Risk . . . . .
144A of the Securities Act of 1933.

INTERNATIONAL LARGE MONEY SMALL
EQUITY COMPANY MARKET CAP
INVESTMENT PRACTICE RISK GROWTH GROWTH
<S> <C> <C> <C> <C> <C>
High Yield Securities
Debt securities of lower quality, also known
as "junk bonds," that produce generally higher Interest Rate and
rates of return. These securities tend to be Credit Risk
more sensitive to economic conditions and
during sustained periods of rising interest
rates, may experience increased interest
and/or principal defaults.

Illiquid Securities
A security that cannot be readily sold, or
cannot be readily sold without negatively Liquidity Risk . . . .
affecting its fair price. Limited to 15% of
total assets.

Loan Participations
Debt obligations that represent a portion of a
larger loan made by a bank. Generally sold Credit Risk
without guarantee or recourse, some
participations sell at a discount because
of the borrower's credit problems. Limited
to 5% of total assets.

Loans of Portfolio Securities
The practice of loaning securities to
brokers, dealers and financial institutions Credit,
to increase return on those securities. Counter-Party and . . . .
Loans may be made up to Investment Company Act Leverage Risk
of 1940 limits (currently one-third of total
assets including the value of collateral
received).

Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional Interest
interest in pools of consumer loans, such as Rate, Credit,
mortgage loans, car loans, credit card debt, or Prepayment and
receivables held in trust. Experience Risk

Options
The right or obligation to receive or deliver
a security or cash payment depending on the
security's price or the performance of an Credit, Information
index or benchmark. Types of options used may and Liquidity Risk .
include: options on securities, options on a
stock index, stock index futures and options on
stock index futures to protect liquidity and
portfolio value.

Other Mutual Funds
The temporary investment in shares of another
mutual fund. A pro rata portion of the other Market Risk . . . .
fund's expenses, in addition to the expenses
paid by the Funds, will be borne by Fund
shareholders.

Privately Issued Securities
Securities that are not publicly traded but
which may be resold in accordance with Rule Liquidity Risk . . .
144A of the Securities Act of 1933.
</TABLE>

Variable Trust Prospectus 45
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY
ALLOCATION BOND INCOME VALUE GROWTH
INVESTMENT PRACTICE RISK
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreements
A transaction in which the seller of a Credit and . . . . .
security agrees to buy back a security at Counter-Party
an agreed upon time and price, usually Risk
with interest.

Small Company Securities Market, Experience . . .
The risk that investments in small companies and Liquidity
may be more volatile than investments in Risk
larger companies.

Stripped Obligations
Securities that give ownership to either
future payments of interest or a future Interest Rate .
payment of principal, but not both. Risk
These securities tend to have greater
interest rate sensitivity than conventional
debt obligations.

INTERNATIONAL LARGE MONEY SMALL
EQUITY COMPANY MARKET CAP
INVESTMENT PRACTICE RISK GROWTH GROWTH
<S> <C> <C> <C> <C> <C>
Repurchase Agreements
A transaction in which the seller of a Credit and . . . .
security agrees to buy back a security at Counter-Party
an agreed upon time and price, usually Risk
with interest.

Small Company Securities Market, Experience . . .
The risk that investments in small companies and Liquidity
may be more volatile than investments in Risk
larger companies.

Stripped Obligations
Securities that give ownership to either
future payments of interest or a future Interest Rate
payment of principal, but not both. Risk
These securities tend to have greater
interest rate sensitivity than conventional
debt obligations.
</TABLE>

46 Variable Trust Prospectus
<PAGE>

Organization and Management of the Funds
- --------------------------------------------------------------------------------

A number of different entities provide services to the Funds. This section shows
how the Funds are organized, the entities that perform different services, and
how they are compensated. Further information is available in the

Statement of Additional Information for the Funds.

About Wells Fargo Variable Trust
Wells Fargo Variable Trust ("WFVT") was organized as a Delaware business trust
on March 10, 1999. The Board of Trustees of WFVT supervises each Fund's
activities, monitors its contractual arrangements with various service providers
and decides upon matters of general policy. The Funds are available for purchase
through certain variable annuity contracts ("VA Contracts") and variable life
insurance policies ("VLI Policies") offered by the separate accounts of
Participating Insurance Companies. Individual holders of VA Contracts and VLI
Policies are not the "shareholders"of or "investors"in the Funds. Rather, the
Participating Insurance Companies and their separate accounts are the
shareholders or investors, although such companies will pass through voting
rights to the holders of VA Contracts and VLI Policies. The WFVT currently does
not foresee any disadvantages to the holders of VA Contracts and VLI Policies
arising from the fact that the interests of the holders of VA Contracts and VLI
Policies may differ. Nevertheless, the WFVT's Board of Trustees intends to
monitor events in order to identify any conflicts which may arise and to
determine what action, if any, should be taken in response to such conflicts.
The VA Contracts and VLI Policies are described in the separate Prospectuses
issued by the Participating Insurance Companies. The WFVT assumes no
responsibility for such Prospectuses.

<TABLE>
<CAPTION>
BOARD OF TRUSTEES
Supervises the Fund's activities
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR CUSTODIAN
<S> <C>
Wells Fargo Bank, N.A. Norwest Bank Minnesota, N.A.
525 Market St., San Francisco, CA 6th & Marquette, Minneapolis, MN
Manages the Fund's investment activities Provides safekeeping for the assets of
all Funds except the Asset Allocation Fund
Barclays Global Investors, N.A. 45 Fremont St., San
Francisco, CA Provides safekeeping for the Asset
Allocation Fund's assets
- -----------------------------------------------------------------------------------------------------------------------------

INVESTMENT SUB-ADVISORS

Wells Capital Management Barclays Global Fund Peregrine Capital
Incorporated Advisors Management, Inc.
525 Market St. 45 Fremont St. 800 Lasalle Ave.
San Francisco, CA San Francisco, CA Minneapolis, MN
(All Funds except as described at right) (Asset Allocation Fund) (Large Company Growth Fund)
- -----------------------------------------------------------------------------------------------------------------------------

TRANSFER
DISTRIBUTOR ADMINISTRATOR AGENT

Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data
111 Center St. 525 Market St. Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Dr.
Quincy, MA

Markets the Funds Manages the Maintains records
and distributes Funds' business of shares and
Fund shares activities supervises the payment
of dividends
- -----------------------------------------------------------------------------------------------------------------------------

PARTICIPATING INSURANCE COMPANIES AND SELLING AGENTS
Advise current and prospective contract holders with Fund investments
- -----------------------------------------------------------------------------------------------------------------------------

CONTRACT HOLDERS
</TABLE>

Variable Trust Prospectus 47
<PAGE>

Organization and Management of the Funds
- --------------------------------------------------------------------------------

In the following sections, the percentages shown are the percentages of the
average daily net assets of each Fund paid on an annual basis for the services
described.

The Investment Advisor
Wells Fargo Bank, N.A. provides portfolio management and fundamental security
analysis services as the advisor for each of the Funds. Wells Fargo Bank,
founded in 1852, is the oldest bank in the western United States and is one of
the largest banks in the United States. Wells Fargo Bank is a wholly owned
subsidiary of Wells Fargo & Company, a national bank holding company. As of June
30, 1999, Wells Fargo Bank and its affiliates provided advisory services for
over $131 billion in assets.

For providing these services, Wells Fargo Bank is entitled to receive the
following fees:

Asset Allocation Fund 0.55%

Corporate Bond Fund 0.45%

Equity Income Fund 0.55%

Equity Value Fund 0.55%

Growth Fund 0.55%

International Equity Fund 0.75%

Large Company Growth Fund 0.55%

Money Market Fund 0.40%

Small Cap Growth Fund 0.75%

The Sub-Advisors
Wells Capital Management Incorporated ("WCM"), a wholly owned subsidiary of
Wells Fargo Bank N.A., is the sub-advisor for the Funds (except the Asset
Allocation and Large Company Growth Funds). In this capacity, it is responsible
for the day-to-day investment management activities of the Funds. As of June 30,
1999, WCM provided advisory services for over $42 billion in assets.

Barclays Global Fund Advisors ("BGFA"), a wholly owned subsidiary of Barclays
Global Investors, N.A. ("BGI"), and an indirect subsidiary of Barclays Bank PLC,
is the sub-advisor for the Asset Allocation Fund. BGFA was created from the sale
of Wells Fargo Nikko Investment Advisors, a former affiliate of Wells Fargo
Bank, to BGI. BGI is one of the largest providers of index portfolio management
services. As of June 30, 1999, BGI managed or provided investment advice for
assets aggregating in excess of $687 billion.

Peregrine Capital Management, Inc., a wholly owned subsidiary of Norwest Bank
Minnesota, N.A., is the sub-advisor for the Large Company Growth Fund. Peregrine
is an investment advisor subsidiary of Norwest Bank Minnesota, N.A. Peregrine
provides investment advisory services to corporate and public pension plans,
profit sharing plans, savings investment plans and 401(k) plans. As of June 30,
1999, Peregrine provided investment advisory services for over $6 billion in
assets.

The Sub-Advisors are compensated by the Investment Advisor from the fees
received by the Advisor as listed above.

48 Variable Trust Prospectus
<PAGE>

The Administrator
Wells Fargo Bank provides the Funds with administrative services, including
general supervision of each Fund's operation, coordination of the other services
provided to each Fund, compilation of information for reports to the SEC and
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trust's Trustees and officers. Wells Fargo
Bank also furnishes office space and certain facilities to conduct each Fund's
business. For providing these services, Wells Fargo Bank is entitled to receive
a fee of 0.15% of the average annual net assets of each Fund.

Distribution Plan
We have adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under
the 1940 Act for each Fund. The Plan authorizes the payment of all or part of
the cost of preparing and distributing Prospectuses, annual and semi-annual
reports, and other materials to shareholders, and the payment of compensation to
selling agents. For these services each Fund pays up to 0.25% of its annual net
assets.

Variable Trust Prospectus 49
<PAGE>

Your Account
- --------------------------------------------------------------------------------

Investing in the Funds

The Funds are available for purchase through certain VA Contracts and VLI
Policies offered by the separate accounts of Participating Insurance Companies.
The separate accounts of the Participating Insurance Companies place orders to
purchase and redeem shares of each Fund based on, among other things, the amount
of premium payments to be invested and the amount of surrender and transfer
requests (as defined in the Prospectuses describing the VA Contracts and VLI
Policies issued by the Participating Insurance Companies) to be effected on that
day pursuant to VA

Contracts and VLI Policies. Please refer to the Prospectus provided by your
selling agent for more detailed information describing the separate accounts.

The WFVT does not assess any fees, either when it sells or when it redeems its
shares. Surrender charges, mortality and expense risk fees and other charges may
be assessed by Participating Insurance Companies under the VA Contracts or VLI
Policies. These fees and charges are described in the Participating Insurance
Companies' Prospectuses.

Should any conflict between VA Contract and VLI Policy holders arise which would
require that a substantial amount of net assets be withdrawn from a Fund of the
WFVT, orderly portfolio management could be disrupted to the potential detriment
of the VA Contract and VLI Policy holders.

50 Variable Trust Prospectus
<PAGE>

Other Information
- --------------------------------------------------------------------------------

Dividends and Capital Gain Distributions
Each Fund is treated separately in determining the amounts of dividends of net
investment income and distributions of capital gains payable to its
shareholders. Dividends and distributions are automatically reinvested on the
payment date for each shareholder's account in additional shares of the Fund
that paid the dividend or distribution at NAV or are paid in cash at the
election of the Participating Insurance Company.

The Funds in this Prospectus pay dividends, if any, periodically, and make any
capital gains distributions at least annually. Participating Insurance Companies
will be informed by January 31 about the amount and character of dividends and
distributions.

Taxes
As described in the prospectuses of the Participating Insurance Companies,
individual holders of VA Contracts and VLI Policies may qualify for favorable
tax treatment. In order to qualify for such treatment, the Internal Revenue Code
of 1986, as amended (the "Code"), requires, among other things, the "separate
accounts" of the Participating Insurance Companies, which maintain and invest
net proceeds form the VA Contracts and VLI Policies, to be "adequately
diversified. "See "Taxation of a Separate Account of a Participating Insurance
Company"in the SAI. Subject to certain conditions, for purposes of the "adequate
diversification" test, shares of the Fund will not be treated as single
investment. Rather, the separate account will be treated as the owner of its
proportionate share of each of the assets of the Fund. The Fund intends to
satisfy the relevant conditions of the Code and Treasury Regulations so that its
shares held in a separate account of a Participating Insurance Company, and the
VA Contracts and VLI Policies underlying such account, may qualify for favorable
tax treatment.

The foregoing discussion regarding taxes is based on tax laws which were in
effect as of the date of this Prospectus and summarizes only some of the
material federal income tax considerations affecting the Fund and its
shareholders. It is not intended as a substitute for careful tax planning and
does not discuss state, local or foreign income tax considerations; you should
consult your own tax advisor with respect to your specific tax situation. Please
see the SAI for further federal income tax considerations. Federal income
taxation of separate accounts of life insurance companies, VA Contracts and VLI
Policies is discussed in the Prospectuses of the Participating Insurance
Companies.

Pricing Fund Shares:
. As with all mutual fund investments, the price you pay to purchase shares or
the price you receive when you redeem shares is not determined until after a
request has been received in proper form.

. We determine the NAV of each Fund's shares, except the Money Market Fund,
each business day as of the close of regular trading on the New York Stock
Exchange ("NYSE"). We determine the NAV for the Money Market Fund each
business day at 9:00 a.m. (Pacific time)/11:00 a.m. (Central time). We
determine the NAV by subtracting each Fund's liabilities from its total
assets, and then dividing the result by the total number of outstanding
shares. The Money Market Fund's assets are valued using the amortized cost
method. Each other Fund's assets are generally valued at current market
prices. See the Statement of Additional Information for further disclosure.

. The non-money market Funds are open for business on each day the NYSE is open
for business. NYSE holidays include New Year's Day, Martin Luther King,
Jr. Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day. When any holiday falls on a weekend,
the NYSE typically is closed on the weekday immediately before or after such
holiday. The Money Market Fund is open for business Monday through Friday,
and generally is closed on federal bank holidays.

Variable Trust Prospectus 51
<PAGE>

Table of Predecessors
- --------------------------------------------------------------------------------

The Funds described in this Prospectus were created as part of the
reorganization of the Life & Annuity Trust ("LAT") Family of Funds, advised by
Wells Fargo Bank, N.A., and the Norwest Select Family of Funds, advised by
Norwest Investment Management, Inc., into a single mutual fund complex. The
reorganization followed the merger of the advisors' parent companies.

Each Fund is an accounting survivor of a former Life & Annuity Trust or Norwest
Select Funds fund, as indicated in the Table of Predecessors below. The
performance histories and financial highlights of each Fund are the performance
histories and financial highlights of the predecessor fund.

Wells Fargo Variable Trust Predecessor Funds

Asset Allocation Fund LAT Asset Allocation Fund

Corporate Bond Fund None

Equity Income Fund Norwest Select Income Equity Fund

Equity Value Fund LAT Equity Value Fund

Growth Fund LAT Growth Fund

International Equity Fund None

Large Company Growth Fund None

Money Market Fund LAT Money Market Fund

Small Cap Growth Fund Norwest Select Small Company Stock Fund

52 Variable Trust Prospectus
<PAGE>

Portfolio Managers
- --------------------------------------------------------------------------------

N. Graham Allen, FCMA, Mr. Allen manages the Corporate Bond Fund. He joined
Wells Capital Management Incorporated ("Wells Capital") in 1998 and is the
firm's Chief Fixed Income Officer. His responsibilities include overseeing of
non-dollar fixed-income investments in major developed countries, emerging
markets, Yankee bonds and global high yield investments. Prior to joining Wells
Capital, he headed the international bond management team at Bradford & Marzec,
a Los Angeles-based investment adviser where he was responsible for managing
high yield securities investments from 1988 to 1998. Educated in England, Mr.
Allen is a Fellow Chartered Management Accountant (FCMA), a recognized
accounting body in the United Kingdom.

John W.(Jack) Burgess Mr. Burgess co-manages the Corporate Bond Fund. He joined
Wells Capital in 1998 as portfolio manager for high yield fixed-income
investments. He joined Wells Capital from Independent Financial Advisors, an
independent advisory practice in Los Angeles where he performed research and
analysis of fixed-income securities from 1995 to 1998. Prior to this position,
he was a portfolio manager at Aurora National Life Assurance Company of Santa
Monica, California, where he managed both equity and fixed-income investments
from 1991 to 1994. Mr. Burgess received his BA in English from Harvard College
and a Juris Doctorate degree from Harvard Law School. He is a Chartered
Financial Analyst candidate.

John S. Dale, CFA, Mr. Dale manages the Large Company Growth Fund. He has
managed large company growth portfolios, currently totaling assets in excess of
$3 billion, and has been a Senior Vice President of Peregrine Capital
Management, Inc. since 1988, when he joined the firm. Mr. Dale received his BA
in Marketing from the University of Minnesota and he is a Chartered Financial
Analyst.

Gary J. Dunn, CFA, Mr. Dunn co-manages the Equity Income Fund, and managed the
predecessor portfolio since 1994. He joined Wells Capital in 1998 as Principal
for its Equity Income team, and holds dual positions at both Wells Capital and
Norwest Investment Management, Inc. ("NIM"), which intend to combine investment
advisory services under the Wells Capital name during late 1999/early 2000.
Currently, Mr. Dunn is also the Director of Institutional Investments of NIM. He
has been associated with Norwest or its affiliates as a financial analyst and
portfolio manager since 1979. Mr. Dunn holds a BA in Economics from Carroll
College and is a Chartered Financial Analyst.

Jacqueline A. Flippin Ms. Flippin co-manages the Corporate Bond Fund. She joined
Wells Capital in 1998 as a portfolio manager for taxable fixed-income
portfolios. Her area of expertise includes both mortgage-backed securities and
high yield debt. She was a fixed-income portfolio manager at McMorgan & Company
in San Francisco, CA from 1994 to 1998. Ms. Flippin received her BA in Sociology
from Northwestern University and an MBA in Finance from New York University.

Gregg Giboney, CFA, Mr. Giboney co-manages the Equity Value Fund. He managed the
predecessor portfolio since August 1998, and has been with Wells Capital as a
member of the Value Equity Team providing security analysis and portfolio
management since 1996. Mr. Giboney was with First Interstate Capital Management
prior to 1996 in various capacities, including fixed-income trading, derivative
management, equity analysis, stable value asset management and as a portfolio
manager for personal, institutional and trust accounts. Mr. Giboney received his
BS in Accounting and Finance from Washington State University, his MBA from the
University of Portland, and he is a Chartered Financial Analyst.

Christopher F. Greene Mr. Greene co-manages the Small Cap Growth Fund, and co-
managed the predecessor portfolio since early 1999. He joined Wells Capital in
1997. As Portfolio Manager and Analyst for the firm's small cap equity team, he
is responsible for fundamental security analysis of small and mid cap growth
securities. Before joining Wells Capital, he worked at Hambrecht & Quist, an
investment banking firm in San Francisco, as an analyst in the corporate finance
department from 1993 to 1996. Mr. Greene received a BA in Economics from
Claremont McKenna College. He is a Chartered Financial Analyst candidate.

Variable Trust Prospectus 53
<PAGE>

Portfolio Managers
- --------------------------------------------------------------------------------

Kelli K. Hill Ms. Hill manages the Growth Fund. She managed the predecessor
portfolio since February 1997, when she joined Wells Capital as its Core Equity
Team Leader. She also manages institutional equity portfolios and in her
research capacity, specializes in the capital goods and technology sectors. From
1988 to 1997, she was a Portfolio Manager for Wells Fargo Bank in San Francisco,
where her responsibilities included portfolio management for high net-worth
individuals. Ms. Hill holds a BA in Economics and International Relations from
the University of Southern California, and she is a Chartered Financial Analyst
candidate.

Stacey Ho, CFA, Ms. Ho co-manages the International Equity Fund. She has been
with Wells Capital as an international equity portfolio manager since early
1997. In 1995 and 1996 she was an international equity portfolio manager at
Clemente Capital Management, and from 1990 to 1995 she managed Japanese and U.S.
equity portfolios for Edison International. Ms. Ho has over nine years of
international equity investment management experience. Ms. Ho received her BA in
Civil Engineering from San Diego State University, her MS in Environmental
Engineering from Stanford University, her MBA from the University of California
at Los Angeles, and she is a Chartered Financial Analyst.

Daniel J. Kokoszka, CFA, Mr. Kokoszka co-manages the Corporate Bond Fund. Mr.
Kokoszka, as the Managing Director of Global Fixed-income for Wells Capital, is
responsible for non-dollar fixed-income investments in major developed countries
and U.S. dollar fixed-income investments (Yankee bonds) in emerging markets. He
joined the firm in 1998 from Bradford & Marzec,Inc., a Los Angeles-based
investment adviser, where he was a portfolio manager on the international
portfolio management team from 1993 to 1998. Mr. Kokoszka has a BS in Astronomy
from Villanova University, an MS in Mechanical Engineering from George
Washington University,and an MBA with emphasis in Finance, Corporate Accounting
and Applied Economics from the University of Rochester. He is a Chartered
Financial Analyst, a Certified Management Accountant and is Certified in
Financial Management.

Gary E. Nussbaum, CFA, Mr. Nussbaum co-manages the Large Company Growth Fund. He
has managed large company growth portfolios, currently totaling assets in excess
of $3 billion, and has been a growth equity style portfolio manager for
Peregrine Capital Management, Inc., where he is currently a Senior Vice
President, since 1990. Mr. Nussbaum received his Bachelors of Business
Administration from the University of Wisconsin, his MBA from the University of
Wisconsin, and his is a Chartered Financial Analyst.

David L. Roberts, CFA, Mr. Roberts manages the Equity Income Fund and managed
the predecessor portfolio since 1994, and also managed the predecessor's
predecessor collective investment trust since 1986. He is the Equity Income
Managing Director at Wells Capital. He joined the firm in 1998 and continues to
hold dual positions at both Wells Capital and Norwest Investment Management,
Inc. ("NIM"), which intend to combine investment advisory services under the
Wells Capital name during late 1999/early 2000. Mr. Roberts joined Norwest
Corporation in 1972 as a Securities Analyst. He became Assistant Vice President
Portfolio Manager in 1980,and was promoted to Vice President in 1982. He holds a
BA in Mathematics from Carroll College and he is a Chartered Financial Analyst.

Ms. Schapiro's 17 years of investment experience included investment management
from 1988 to 1992 at Newport Pacific Management, a San Francisco-based
international investment advisory firm. Ms. Schapiro obtained her BA in Spanish
Literature from Stanford University and is a Chartered Financial Analyst. She
currently serves as President of the Security Analysts of San Francisco.

54 Variable Trust Prospectus
<PAGE>

Scott M. Smith, CFA, Mr.Smith co-manages the Corporate Bond Fund. He joined
Wells Capital in 1997 and currently manages taxable fixed-income portfolios as a
member of the core-plus team. His emphasis is on the corporate and mortgage-
backed sectors. From 1988 to 1997, while at Wells Fargo Bank, he was a short
duration fixed-income specialist and trust administrator. He has 11 years of
experience in the investment industry. Mr. Smith received his BA in
International Relations/Business from the University of San Diego, and he is a
Chartered Financial Analyst.

Rex Wardlaw, CFA, Mr. Wardlaw co-manages the Equity Value Fund, and he co-
managed the Fund's predecessor portfolio since its inception in early 1998. Mr.
Wardlaw is the Managing Director of Wells Capital's Value Equity Strategy team,
managing portfolios and directing the research effort. In his research capacity,
he focuses on basic industries, transportation, consumer cyclical and utility
sectors. Mr. Wardlaw joined Wells Capital in 1997 and has over 10 years of
experience in the investment management industry. Previously he was with Wells
Fargo Bank, where he was a portfolio manager from 1996 to 1997. He was a
portfolio manager at First Interstate Bank in Portland, OR from 1986 to 1996.
Mr. Wardlaw received a BA in Chemistry from Northwest Nazarene College and
earned an MBA (with honors) in Finance from the University of Oregon. He is a
Chartered Financial Analyst.

Allen E. Wisniewski, CFA, Mr. Wisniewski co-manages the Equity Value Fund, and
he co-managed the Fund's predecessor portfolio since its inception in early
1998. He joined Wells Capital in 1997 as a portfolio manager for the Value
Equity Strategy team and as a research analyst focusing on the higher yield
segment of the value strategy. Before joining Wells Capital in 1997, he was a
value equity portfolio manager from 1987 to 1997 at Wells Fargo Bank. Mr.
Wisniewski received a BA in Economics and an MBA in Economics and Finance from
the University of California at Los Angeles, and he is a Chartered Financial
Analyst.

Thomas Zeifang, CFA, Mr. Zeifang co-manages the Small Cap Growth Fund, and co-
managed the predecessor portfolio since early 1998. He joined Wells Capital in
1997 and is currently the Managing Director of the Small Cap Equity team. As
strategy leader, he is responsible for fundamental security analysis. Prior to
Wells Capital, he was a small cap equity portfolio manager from 1995 to 1997 at
Wells Fargo Bank. He was a Financial Analyst from 1993 to 1995 at Fleet
Investment Advisors, based in Rochester, NY. Mr. Zeifang holds a BS in Business
Administration from St. Bonaventure University and an MBA in Finance from the
University of Rochester's Simon School of Business. He is a Chartered Financial
Analyst.

Variable Trust Prospectus 55
<PAGE>

Glossary
- --------------------------------------------------------------------------------

We provide the following definitions to assist you in reading this Prospectus.
For a more complete understanding of these terms you should consult your
financial advisor.

American Depositary Receipts ("ADRs")

Receipts for non-U.S. company stocks. The stocks underlying ADRs are typically
held in bank vaults. The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in foreign companies.

Asset-Backed Securities

Securities consisting of an undivided fractional interest in pools of consumer
loans, such as car loans or credit card debt, or receivables held in trust.

Below Investment-Grade

Securities rated BBB or lower by S&P or Baa or lower by Moody's Investor
Services, or that may be unrated securities or securities considered to be "high
risk."

Business Day

Any day the New York Stock Exchange is open is a business day for the Funds.

Capital Appreciation, Capital Growth

The increase in the value of a security. See also "total return."

Capitalization

When referring to the size of a company, capitalization means the total number
of a company's outstanding shares of stock multiplied by the price per share.
This is an accepted method of determining a company's size and is sometimes
referred to as "market capitalization."

Capital Structure

Refers to how a company has raised money to operate. Can include, for example,
borrowing or selling stock.

Collateralized Mortgage Obligations ("CMOs")

Securities collateralized by portfolios of mortgage pass-through securities.
CMOs are structured into multiple classes, and are paid according to class
maturity, shortest maturities paid first.

Commercial Paper

Debt instruments issued by banks, corporations and other issuers to finance
short-term credit needs. Commercial paper typically is of high credit quality
and offers below market interest rates.

Convertible Debt Securities

Bonds or notes that are exchangeable for equity securities at a set price on a
set date or at the election of the holder.

Current Income

Earnings in the form of dividends or interest as opposed to capital growth. See
also "total return."

Debt Securities

Generally, a promise to pay interest and repay principal by an individual or
group of individuals sold as a security. The owner of the security is entitled
to receive any such payments. Examples include bonds and mortgage-backed
securities and can include securities in which the right to receive interest and
principal repayment have been sold separately.

Derivatives

Securities whose values are derived in part from the value of another security
or index. An example is a stock option.

56 Variable Trust Prospectus
<PAGE>

Distributions

Dividends and/or capital gains paid by a Fund on its shares.

Diversified

A diversified fund, as defined by the Investment Company Act of 1940, is one
that invests in cash, Government securities, other investment companies and no
more than 5% of its total assets in a single issuer. These policies must apply
to 75% of the Funds' total assets.

Dollar-Denominated

Securities issued by foreign banks, companies or governments in U.S. dollars.

Duration

A measure of a security's or portfolio's sensitivity to changes in interest
rates. Duration is usually expressed in years, with longer durations typically
more sensitive to interest rate changes than shorter durations.

Emerging Markets

Markets associated with a country that is considered by international financial
organizations, such as the International Finance Corporation and the
International Bank for Reconstruction and Development, and the international
financial community to have an "emerging" stock market. Such markets may be
under-capitalized, have less-developed legal and financial systems or may have
less stable currencies than markets in the developed world.

Federal Deposit Insurance Corporation ("FDIC")

The Federal Deposit Insurance Corporation. This is the company that provides
federally sponsored insurance covering bank deposits such as savings accounts
and CDs. Mutual funds are not FDIC insured.

FHLMC

FHLMC securities are commonly known as "Freddie Mac" and are issued by the
Federal Home Loan Mortgage Corporation.

FNMA

FNMA securities are commonly known as "Fannie Maes" and are issued by the
Federal National Mortgage Association.

GNMA

GNMA securities are commonly known as "Ginnie Maes" and are issued by the
Government National Mortgage Association.

Hedge

Strategy used to offset investment risk. A perfect hedge is one eliminating the
possibility of future gain or loss.

Illiquid Security

A security that cannot be readily sold at the desired time,or cannot be readily
sold without negatively affecting its fair price.

Initial Public Offering

The first time a company's stock is offered for sale to the public.

Investment-Grade Securities

A type of bond rated in the top four investment categories by a nationally
recognized ratings organization. Generally these are bonds whose issuers are
considered to have a strong ability to pay interest and repay principal,
although some investment-grade bonds may have some speculative
characteristics.

Variable Trust Prospectus 57
<PAGE>

Glossary
- --------------------------------------------------------------------------------

Liquidity

The ability to readily sell a security at a fair price.

Money Market Instruments

High-quality short-term instruments meeting the requirements of Rule 2a-7 of the
1940 Act, such as bankers' acceptances, commercial paper, repurchase agreements
and government obligations. In a money market fund, average portfolio maturity
does not exceed 90 days, and all investments have maturities of 397 days or less
at the time of purchase.

Moody's

A nationally recognized ratings organization.

Nationally Recognized Ratings Organization ("NRRO")

A company that examines the ability of a bond issuer to meet its obligations and
which rates the bonds accordingly.

Net Asset Value ("NAV")

The value of a single fund share. It is determined by adding together all of a
Fund's assets, subtracting accrued expenses and other liabilities, then dividing
by the total number of shares. The NAV is calculated separately for each class
of the Fund, and is determined as of the close of regular trading on each
business day the NYSE is open, typically 1:00 p.m. (Pacific time)/3:00 p.m.
(Central time).

Options

An option is the right to buy or sell a security based on an agreed upon price
for at a specified time. For example, an option may give the holder of a stock
the right to sell the stock to another party, allowing the seller to profit if
the price has fallen below the agreed price. Options may also be based on the
movement of an index such as the S&P 500.

Preservation of Capital

The attempt by a fund's manager to defend against drops in the net asset value
of fund shares in order to preserve the initial investment.

Price-to-Earnings Ratio

The ratio between a stock's price and its historical, current or anticipated
earnings. Low ratios typically indicate a high yield. High ratios are
characteristic of growth stocks which generally have low current yields.

Principal Stability

The degree to which share prices for a fund remain steady. Money market funds
attempt to achieve the highest degree of principal stability by maintaining a
$1.00 per share net asset value. More aggressive funds may not consider
principal stability an objective.

Repurchase Agreement

An agreement between a buyer and seller of a security in which the seller agrees
to repurchase the security at an agreed upon price and time.

Russell 1000 Index

An index comprised of the 1000 largest firms listed on the Russell 3000 Index.
The Russell 3000 Index is a listing of 3000 corporations by the Frank Russell
Company that is intended to be representative of the U.S. economy. The Russell
1000 is considered a "large cap" index.

Russell 2000 Index

An index comprised of the 2000 smallest firms listed on the Russell 3000 Index.
The Russell 3000 Index is a listing of 3000 corporations by the Frank Russell
Company that is intended to be representative of the U.S. economy. The Russell
2000 is considered a "small cap" index.

Variable Trust Prospectus 58
<PAGE>

Selling Agent

A person who has an agreement with the Funds' distributors that allows them to
sell a Fund's shares.

Shareholder Servicing Agent

Anyone appointed by the Fund to maintain shareholder accounts and records,
assist and provide information to shareholders or perform similar functions.

Signature Guarantee

A guarantee given by a financial institution that has verified the identity of
the maker of the signature.

S&P, S&P 500 Index

Standard & Poor's, a nationally recognized ratings organization. S&P also
publishes various indexes or lists of companies representative of sectors of the
U.S. economy.

Statement of Additional Information

A document that supplements the disclosure made in the Prospectus.

Stripped Treasury Securities

Debt obligations in which the interest payments and the repayment of principal
are separated and sold as securities.

Total Return

The total value of capital growth and the value of all distributions, assuming
that distributions were used to purchase additional shares of the Funds.

Turnover Ratio

The percentage of the securities held in a Fund's portfolio, other than short-
term securities, that were bought or sold within a year.

Undervalued

Describes a stock that is believed to be worth more than its current price.

U.S.Government Obligations

Obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.

Value Strategy

A strategy of investing which tries to identify and buy undervalued stocks under
the assumption that the stock will eventually rise to its "fair market" value.

Warrants

The right to buy a stock at a set price for a set time.

Weighted Average Maturity

The average maturity for the debt securities in a portfolio on a dollar-for-
dollar basis.

Variable Trust Prospectus 59
<PAGE>

YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENT:

STATEMENT OF ADDITIONAL INFORMATION

supplements the disclosures made by this Prospectus. The Statement of Additional
Information has been filed with the SEC and incorporated by reference into this
Prospectus and is legally part of this Prospectus.

THIS DOCUMENT IS AVAILABLE FREE OF CHARGE:

Call: 1-800-222-8222

WRITE TO:
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266; or

Visit the SEC's website at http://www.sec.gov

REQUEST COPIES FOR A FEE BY WRITING TO:
SEC Public Reference Room
Washington, DC 20549-6009
Call: 1-800-SEC-0330 for details

<PAGE>

WELLS
FARGO

FUNDS

WELLS FARGO VARIABLE
TRUST FUNDS

PROSPECTUS

Please read this Prospectus and keep it for future reference. It is designed to
provide you with important information and to help you decide if a Fund's goals
match your own.

Fund shares are NOT deposits or other obligations of, or issued,endorsed or
guaranteed by Wells Fargo Bank,N.A.("Wells Fargo Bank") or any of its
affiliates.Fund shares are NOT insured or guaranteed by the U.S.Government, the
Federal Deposit Insurance Corporation ("FDIC") or any other governmental agency.
AN INVESTMENT IN A FUND INVOLVES CERTAIN RISKS,INCLUDING POSSIBLE LOSS OF
PRINCIPAL.

Equity Value Fund

September 20 1999
<PAGE>

<TABLE>
<CAPTION>
Table of Contents Variable Trust Funds
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Overview Objectives and Principal Strategies 4
This section contains important Summary of Important Risks 6
summary information about the Performance History 8
Fund.
Key Information 8

- ------------------------------------------------------------------------------------------------------------
The Funds Equity Value Fund 10
This section contains important General Investment Risks 12
information about the Fund. Organization and Management
of the Fund 18

- ------------------------------------------------------------------------------------------------------------
Your Investment Your Account 21
Turn to this section for
information on how to buy
and sell Fund shares.

- ------------------------------------------------------------------------------------------------------------
Reference Other Information 22
Look here for additional Table of Predecessors 23
information and term Portfolio Managers 24
definitions.
Glossary 26
</TABLE>
<PAGE>

Variable Trust Funds Overview
- --------------------------------------------------------------------------------
See the individual Fund description in this Prospectus for further details.

FUND OBJECTIVE
Equity Value Fund Seeks long-term capital appreciation.

4 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

PRINCIPAL STRATEGY

We invest in equity securities that we believe are undervalued in relation
to the overall stock markets.

Variable Trust Prospectus 5
<PAGE>

Summary of Important Risks
- --------------------------------------------------------------------------------

This section summarizes important risks for the Fund described in this
Prospectus,and important risks that relate specifically to this particular
Fund.Both are important to your investment choice.Additional information about
these and other risks is included in:

. the individual Fund Description later in this Prospectus;

. under the "General Investment Risks"section beginning on page 12;and

. in the Funds' Statement of Additional Information.

COMMON RISKS FOR THE FUNDS

Equity Securities
The Fund invests in equity securities,which are subject to equity market
risk. This is the risk that stock prices will fluctuate and can decline and
reduce the value of a Fund's portfolio. Certain types of stock and certain
individual stocks selected for the Fund's portfolio may underperform or
decline in value more than the overall market.As of the date of this
Prospectus,the equity markets,as measured by the S&P 500 Index and other
commonly used indexes,are trading at or close to record levels.There can be
no guarantee that these levels will continue.The Funds that invest in
smaller companies,in foreign companies (including investments made through
American Depositary Receipts and similar instruments),and in emerging
markets are subject to additional risks,including less liquidity and
greater price volatility.A Fund's investment in foreign companies and
emerging markets are also subject to special risks associated with
international investing,including currency,political,regulatory and
diplomatic risks.

Debt Securities
The Fund may invest some of its assets in debt securities,such as notes and
bonds,which are subject to credit risk and interest rate risk.Credit risk
is the possibility that an issuer of an instrument will be unable to make
interest payments or repay principal.Changes in the financial strength of
an issuer or changes in the credit rating of a security may affect its
value.Interest rate risk is the risk that interest rates may increase,which
will reduce the resale value of instruments in the Fund's investments,
including U.S.Government obligations. Debt securities with longer
maturities are generally more sensitive to interest rate changes than those
with shorter maturities.Changes in market interest rates do not affect the
rate payable on debt securities held in a Fund,unless the instrument has
adjustable or variable rate features,which can reduce interest rate
risk.Changes in market interest rates may also extend or shorten the
duration of certain types of instruments,such as asset-backed
securities,thereby affecting their value and the return on your investment.

6 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

FUND SPECIFIC RISKS
There is no guarantee that securities
selected as "undervalued"will perform as
expected.Stocks of smaller,medium-sized and
foreign companies purchased using the value
Equity Value Fund strategy may be more volatile and less
liquid than other comparable securities.

Variable Trust Prospectus 7
<PAGE>

Performance History
- --------------------------------------------------------------------------------

The information on the following pages shows you how each Fund has
performed and illustrates the variability of a Fund's returns over
time.Each Fund's average annual returns for one-year and since inception
periods are compared to the performance of an appropriate broad-based
index.Please remember that past performance is no guarantee of future
results.The performance for the Fund in this Prospectus does not reflect
fees charged by your variable life insurance/annuity certificate or
contract.If it did,returns would be lower.

The Equity Value Fund has been in operation less than a calendar
year,therefore,performance information is not shown for this Fund.

Key Information
- --------------------------------------------------------------------------------

Important information you should look for as you decide to invest in a
Fund:
The summary information on the previous pages is designed to provide you
with an overview of the Fund.The sections that follow provide more detailed
information about the investments and management of the Fund.

---------------------------------------------------------------------------

Investment Objective and Investment Strategies
The investment objective of the Fund in this Prospectus is non-
fundamental,that is,it can be changed by a vote of the Board of Trustees
alone.The objectives and strategies descriptions for the Fund tell you:

. what the Fund is trying to achieve;and

. how we intend to invest your money.

---------------------------------------------------------------------------

Permitted Investments
A summary of the Fund's key permitted investments and practices.

---------------------------------------------------------------------------

Important Risk Factors
Describes the key risk factors for the Fund,and includes risks described in
the "Summary of Important Risks"and "General Investment Risks"sections.

Words appearing in italicized print and highlighted in color are defined in
the Glossary.

8 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Equity Value Fund
- --------------------------------------------------------------------------------

Portfolio Managers: Rex Wardlaw, CFA; Allen Wisniewski, CFA; Gregg Giboney,
CFA

---------------------------------------------------------------------------

Investment Objective
The Equity Value Fund seeks long-term capital appreciation.

---------------------------------------------------------------------------

Investment Strategies
We seek long-term capital appreciation by investing in a diversified
portfolio composed primarily of equity securities that are trading at low
price-to-earnings ratios,as measured against the stock market as a whole or
against the individual stock's own price history.In addition we look at the
price-to-book value and price-to-cash flow ratios of companies for
indications of attractive valuation.We use both quantitative and
qualitative analysis to identify possible investments. Dividends are a
secondary consideration when selecting stocks.We may purchase particular
stocks when we believe that a history of strong dividends may increase
their market value.

---------------------------------------------------------------------------

Permitted Investments
Under normal market conditions,we invest:

. primarily in common stocks of both large,well-established companies
and smaller companies with market capitalization exceeding $50 million
at the time of purchase;

. in debt securities that may be converted into the common stock of both
U.S.and foreign companies;and

. up to 25% of our assets in foreign companies through American
Depositary Receipts and similar instruments.

We may also purchase convertible debt securities with the same
characteristics as common stock,as well as in preferred stock and warrants.

We may temporarily hold assets in cash or in money market
instruments,including U.S.Government obligations,shares of other mutual
funds and repurchase agreements,or make short-term investments,either to
maintain liquidity or for short-term defensive purposes when we believe it
is in the best interests of shareholders.During such periods,the Fund may
not achieve its objective of long-term capital appreciation.

---------------------------------------------------------------------------

Important Risk Factors
There is no guarantee that securities selected as "undervalued"will perform
as expected.Stocks of smaller,medium-sized and foreign companies purchased
using the value approach may be more volatile and less liquid than other
comparable securities.

You should consider the "Summary of Important Risks"section on page 6,the
"General Investment Risks"section beginning on page 12,and the specific
risks listed here.They are all important to your investment choice.

10 Variable Trust Prospectus
<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception,if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

FOR A SHARE OUTSTANDING

<TABLE>
<CAPTION>
FUND COMMENCED
ON MAY 1, 1998
------------------------------------
(Unaudited)
Jun. 30, Dec. 31,
For the period ended: 1999 1998
------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.55 $ 10.00

Income from investment operations:
Net investment income (loss) 0.05 0.07
Net realized and unrealized gain (loss)
on investments 0.72 (0.45)

Total from investment operations 0.77 (0.38)

Less distributions:
Dividends from net investment income (0.05) (0.07)
Distributions from net realized gains 0.00 0.00

Total from distributions (0.05) (0.07)

Net asset value, end of period $ 10.27 $ 9.55

Total return (not annualized)/1/ 8.05% (3.76%)

Ratios/supplemental data:
Net assets, end of period (000s) $ 22,179 $ 11,072

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 1.09% 1.09%
Ratio of net investment income (loss) to
average net assets 1.06% 1.54%

Portfolio turnover 57% 27%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.52% 2.52%

/1/ Total returns do not include sales charges.

Variable Trust Prospectus 11
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

Understanding the risks involved in mutual fund investing will help you make an
informed decision that takes into account your risk tolerance and preferences.
You should carefully consider the risks common to investing in all mutual funds,
including Wells Fargo Variable Trust Funds. Certain common risks are identified
in the Summary of Important Risks on page 6.Other risks of mutual fund investing
include the following:

. Unlike bank deposits, such as CDs or savings accounts, mutual funds are not
insured by the FDIC.

. We cannot guarantee that we will meet our investment objectives. With
respect to the Money Market Fund, we cannot guarantee that we will be able
to maintain a $1.00 per share net asset value.

. Investing in any mutual fund, including those deemed conservative, involves
risk, including the possible loss of any money you invest.

. An investment in a single Fund, by itself, does not constitute a complete
investment plan.

. The Funds may also use certain derivative instruments, such as options or
futures contracts. The term "derivatives" covers a wide number of
investments, but in general it refers to any financial instrument whose
value is derived, at least in part,from the price of another security or a
specified index, asset or rate. Some derivatives may be more sensitive to
interest rate changes or market moves, and some may be susceptible to
changes in yields or values due to their structure or contract terms.

. The Funds also may invest a portion of their assets in GNMAs, FNMAs and
FHLMCs. Each are mortgage-backed securities representing partial ownership
of a pool of residential mortgage loans.A "pool" or group of such mortgages
is assembled and, after being approved by the issuing entity, is offered to
invest through securities dealers. Mortgage-backed securities are subject
to prepayment risk, which can alter the maturity of the securities and also
reduce the rate of return on such investments. Collateralized mortgage
obligations ("CMOs") represent principal-only and interest-only portions of
such securities that are subject to increased interest-rate and credit
risk.

12 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

. The market value of lower-rated debt securities, also known as "junk
bonds," and unrated securities tends to reflect individual developments
affecting the issuer to a greater extent than the market value of higher-
rated securities, which react primarily to fluctuations in the general
level of interest rates. Lower-rated securities also tend to be more
sensitive to economic conditions than higher-rated securities. These lower-
rated debt securities are considered by the rating agencies, on balance, to
be predominantly speculative with respect to the issuer's capacity to pay
interest and repay principal in accordance with the terms of the obligation
and generally involve more credit risk than securities in higher-rating
categories. Even securities rated "BBB" by S&P or by Moody's ratings which
are considered investment-grade, possess some speculative characteristics.

Investment practices and risk levels are carefully monitored. Every attempt is
made to ensure that the risk exposure for each Fund remains within the
parameters of its objective.

Counter-Party Risk--The risk that the other party in a repurchase agreement or
other transaction will not fulfill its contract obligation.

Currency Risk--The risk that a change in the exchange rate between U.S. dollars
and a foreign currency may reduce the value of an investment made in a security
denominated in that foreign currency.

Diplomatic Risk--The risk that an adverse change in the diplomatic relations
between the United States and another country might reduce the value or
liquidity of investments in either country.

Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.

Variable Trust Prospectus 13
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

Liquidity Risk--The risk that a security cannot be sold at the time desired, or
cannot be sold without adversely affecting the price.

Market Risk--The risk that the value of a stock,bond or other security will be
reduced by market activity. This is a basic risk associated with all securities.

Political Risk--The risk that political actions, events or instability may be
unfavorable for investments made in a particular nation's or region's industry,
government or markets.

Prepayment Risk--The risk that consumers will prepay mortgage loans, which can
alter the maturity of a mortgage-backed security, increase interest-rate risk,
and reduce rates of return.

In addition to the general risks discussed above, you should carefully consider
and evaluate any special risks that may apply to investing in the Fund. See the
"Important Risk Factors" section in the summary for the Fund. You should also
see the Statements of Additional Information for additional information about
the investment practices and risks particular to the Fund.

14 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

Investment Practice/Risk

The following table lists some of the additional investment practices of the
Fund, including some not disclosed in the Investment Objective and Investment
Strategies section of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that practice,
but are among the more prominent. Market risk is assumed for each. See the
Investment Objective and Investment Strategies for the Fund or the Statement of
Additional Information for more information on these practices.

Investment practices and risk levels are carefully monitored. We attempt to
ensure that the risk exposure for the Fund remains within the parameters of its
objective.

INVESTMENT PRACTICE RISK EQUITY VALUE
<S> <C> <C>
Borrowing Policies
The ability to borrow from banks for temporary Leverage Risk .
purposes to meet shareholder redemptions.

Emerging Markets
Investments in companies located or operating in Information,
countries considered developing or to have "emerging" Political, Regulatory,
stock markets. Generally, these investments securities Diplomatic, Liquidity
have the same type of risks as foreign securities, but and Currency Risk
to a higher degree.

Floating and Variable Rate Debt
Instruments with interest rates that are adjusted either Interest Rate and .
on a schedule or when an index or benchmark changes. Credit Risk

Foreign Obligations Information,
Debt of a foreign government or corporation or dollar Political, Regulatory,
denominated debt obligations of foreign branches of Diplomatic, Liquidity
U.S. banks or U.S. branches of foreign banks. and Currency Risk

Foreign Securities
Equity securities issued by a non-U.S. company or debt Information, .
of a or foreign government in the form of an American Political, Regulatory,
Depositary Receipt ("ADR") or similar instrument. Foreign Diplomatic, Liquidity
securities may also be emerging markets securities, which and Currency Risk
are subject to the same risks, but to a higher degree.

Forward Commitment, When-Issued and
Delayed Delivery Transactions Interest Rate, .
Securities bought or sold for delivery at a later date or Leverage, Credit and
bought or sold for a fixed price at a fixed date. Experience Risk
</TABLE>

Variable Trust Prospectus 15
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

INVESTMENT PRACTICE RISK EQUITY VALUE
<S> <C> <C>
High Yield Securities
Debt securities of lower quality, also known as "junk
bonds," that produce generally higher rates of return.
These securities tend to be more sensitive to economic Interest Rate and
conditions and during sustained periods of rising Credit Risk
interest rates, may experience increased interest and/or
principal defaults.

Illiquid Securities
A security that cannot be readily sold, or cannot be Liquidity Risk .
readily sold without negatively affecting its fair price.
Limited to 15% of total assets.

Loan Participations
Debt obligations that represent a portion of a larger
loan made by a bank. Generally sold without guarantee Credit Risk
or recourse, some participations sell at a discount because
of the borrower's credit problems. Limited to 5% of
total assets.

Loans of Portfolio Securities
The practice of loaning securities to brokers, dealers and Credit, .
financial institutions to increase return on those securities. Counter-Party and
Loans may be made up to Investment Company Act of Leverage Risk
1940 limits (currently one-third of total assets including
the value of collateral received).

Mortgage- and Asset-Backed Securities Interest Rate,Credit,
Securities consisting of undivided fractional interest Prepayment and
in pools of consumer loans, such as mortgage loans, car Experience Risk
loans, credit card debt, or receivables held in trust.

Options
The right or obligation to receive or deliver a security or
cash payment depending on the security's price or the Credit,Information .
performance of an index or benchmark. Types of options and Liquidity Risk
used may include: options on securities, options on a stock
index, stock index futures and options on stock index
futures to protect liquidity and portfolio value.

Other Mutual Funds
The temporary investment in shares of another mutual
fund. A pro rata portion of the other fund's expenses, in Market Risk .
addition to the expenses paid by the Funds, will be borne
by Fund shareholders.

Privately Issued Securities
Securities that are not publicly traded but which may be
resold in accordance with Rule 144A of the Securities Act Liquidity Risk .
of 1933.
</TABLE>

16 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INVESTMENT PRACTICE RISK EQUITY VALUE
<S> <C> <C>
Repurchase Agreements
A transaction in which the seller of a security agrees to Credit and .
buy back a security at an agreed upon time and price, Counter-Party Risk
usually with interest.

Small Company Securities Market,Experience .
The risk that investments in small companies may be and Liquidity Risk
more volatile than investments in larger companies.

Stripped Obligations
Securities that give ownership to either future payments
of interest or a future payment of principal, but not both. Interest Rate Risk
These securities tend to have greater interest rate
sensitivity than conventional debt obligations.
</TABLE>

Variable Trust Prospectus 17
<PAGE>

Organization and Management of the Fund
- --------------------------------------------------------------------------------

A number of different entities provide services to the Fund. This section shows
how the Fund is organized, the entities that perform different services, and how
they are compensated. Further information is available in the Statement of
Additional Information for the Fund.

About Wells Fargo Variable Trust
Wells Fargo Variable Trust ("WFVT") was organized as a Delaware business trust
on March 10,1999. The Board of Trustees of WFVT supervises the Fund's
activities, monitors its contractual arrangements with various service providers
and decides upon matters of general policy. The Fund is available for purchase
through certain variable annuity contracts ("VA Contracts") and variable life
insurance policies ("VLI Policies") offered by the separate accounts of
Participating Insurance Companies. Individual holders of VA Contracts and VLI
Policies are not the "shareholders" of or "investors" in the Funds. Rather, the
Participating Insurance Companies and their separate accounts are the
shareholders or investors, although such companies will pass through voting
rights to the holders of VA Contracts and VLI Policies. The WFVT currently does
not foresee any disadvantages to the holders of VA Contracts and VLI Policies
arising from the fact that the interests of the holders of VA Contracts and VLI
Policies may differ. Nevertheless, the WFVT's Board of Trustees intends to
monitor events in order to identify any conflicts which may arise and to
determine what action,if any, should be taken in response to such conflicts. The
VA Contracts and VLI Policies are described in the separate Prospectuses issued
by the Participating Insurance Companies. The WFVT assumes no responsibility for
such Prospectuses.

<TABLE>
<CAPTION>
BOARD OF TRUSTEES
Supervises the Funds' activities
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT ADVISOR CUSTODIAN
Wells Fargo Bank, N.A. Norwest Bank Minnesota, N.A.
525 Market St., San Francisco, CA 6th & Marquette,Minneapolis, MN
Manages the Funds' investment activities Provides safekeeping for the assets of the Fund
- ------------------------------------------------------------------------------------------------------------------------------

INVESTMENT SUB-ADVISOR
Wells Capital Management Incorporated
525 Market St.
San Francisco, CA
- ------------------------------------------------------------------------------------------------------------------------------
TRANSFER
DISTRIBUTOR ADMINISTRATOR AGENT

Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data
111 Center St. 525 Market St. Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Dr.
Quincy, MA

CONTRACT HOLDERS
</TABLE>

18 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

In the following sections,the percentages shown are the percentages of the
average daily net assets of the Fund paid on an annual basis for the services
described.

The Investment Advisor
Wells Fargo Bank, N.A. provides portfolio management and fundamental security
analysis services as the advisor for the Fund. Wells Fargo Bank, founded in
1852, is the oldest bank in the western United States and is one of the largest
banks in the United States. Wells Fargo Bank is a wholly owned subsidiary of
Wells Fargo & Company, a national bank holding company. As of June 30, 1999,
Wells Fargo Bank and its affiliates provided advisory services for over $131
billion in assets.

For providing these services, Wells Fargo Bank is entitled to receive the
following fees:

Equity Value Fund 0.55%

The Sub-Advisors
Wells Capital Management Incorporated ("WCM"), a wholly owned subsidiary of
Wells Fargo Bank N.A., is the sub-advisor for the Fund. In this capacity, it is
responsible for the day-to-day investment management activities of the Fund. As
of June 30, 1999, WCM provided advisory services for over $42 billion in assets.

The Sub-Advisors are compensated by the Investment Advisor from the fees
received by the Advisor as listed above.

Variable Trust Prospectus 19
<PAGE>

Organization and Management of the Funds
- --------------------------------------------------------------------------------

The Administrator
Wells Fargo Bank provides the Fund with administrative services, including
general supervision of the Fund's operation, coordination of the other services
provided to the Fund, compilation of information for reports to the SEC and
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trust's Trustees and officers. Wells Fargo
Bank also furnishes office space and certain facilities to conduct the Fund's
business. For providing these services, Wells Fargo Bank is entitled to receive
a fee of 0.15% of the average annual net assets of the Fund.

Distribution Plan
We have adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under
the 1940 Act for the Fund. The Plan authorizes the payment of all or part of the
cost of preparing and distributing Prospectuses, annual and semi-annual reports,
and other materials to shareholders, and the payment of compensation to selling
agents. For these services the Fund pays up to 0.25% of its annual net assets.

20 Variable Trust Prospectus
<PAGE>

Your Account
- --------------------------------------------------------------------------------

Investing in the Fund
The Fund is available for purchase through certain VA Contracts and VLI Policies
offered by the separate accounts of Participating Insurance Companies. The
separate accounts of the Participating Insurance Companies place orders to
purchase and redeem shares of the Fund based on, among other things, the amount
of premium payments to be invested and the amount of surrender and transfer
requests (as defined in the Prospectuses describing the VA Contracts and VLI
Policies issued by the Participating Insurance Companies) to be effected on that
day pursuant to VA Contracts and VLI Policies.Please refer to the Prospectus
provided by your selling agent for more detailed information describing the
separate accounts.

The WFVT does not assess any fees, either when it sells or when it redeems its
shares. Surrender charges,mortality and expense risk fees and other charges may
be assessed by Participating Insurance Companies under the VA Contracts or VLI
Policies. These fees and charges are described in the Participating Insurance
Companies' Prospectuses.

Variable Trust Prospectus 21
<PAGE>

Other Information
- --------------------------------------------------------------------------------

Dividends and Capital Gain Distributions
The Fund is treated separately in determining the amount of dividends of net
investment income and distributions of capital gains payable to its
shareholders. Dividends and distributions are automatically reinvested on the
payment date for each shareholder's account in additional shares of the Fund
that paid the dividend or distribution at NAV or are paid in cash at the
election of the Participating Insurance Company.

The Fund in this Prospectus pay dividends, if any, periodically, and make any
capital gains distributions at least annually. Participating Insurance Companies
will be informed by January 31 about the amount and character of dividends and
distributions.

Taxes
As described in the prospectuses of the Participating Insurance
Companies,individual holders of VA Contracts and VLI Policies may qualify for
favorable tax treatment. In order to qualify for such treatment,the Internal
Revenue Code of 1986, as amended (the "Code"), requires, among other things, the
"separate accounts" of the Participating Insurance Companies, which maintain and
invest net proceeds form the VA Contracts and VLI Policies, to be "adequately
diversified." See "Taxation of a Separate Account of a Participating Insurance
Company" in the SAI. Subject to certain conditions,for purposes of the "adequate
diversification" test, shares of the Fund will not be treated as single
investment. Rather, the separate account will be treated as the owner of its
proportionate share of each of the assets of the Fund. The Fund intends to
satisfy the relevant conditions of the Code and Treasury Regulations so that its
shares held in a separate account of a Participating Insurance Company, and the
VA Contracts and VLI Policies underlying such account, may qualify for favorable
tax treatment.

. We determine the NAV of the Fund's shares each business day as of the close
of regular trading on the New York Stock Exchange ("NYSE"). We determine the
NAV by subtracting the Fund's liabilities from its total assets, and then
dividing the result by the total number of outstanding shares. The Fund's
assets are generally valued at current market prices. See the Statement of
Additional Information for further disclosure.

. The Fund is open for business on each day the NYSE is open for business. NYSE
holidays include New Year's Day, Martin Luther King, Jr. Day, President's
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day. When any holiday falls on a weekend, the NYSE typically is
closed on the weekday immediately before or after such holiday.

22 Variable Trust Prospectus
<PAGE>

Table of Predecessors
- --------------------------------------------------------------------------------

The Fund described in this Prospectus was created as part of the reorganization
of the Life & Annuity Trust ("LAT") Family of Funds, advised by Wells Fargo
Bank, N.A., and the Norwest Select Family of Funds, advised by Norwest
Investment Management, Inc., into a single mutual fund complex. The
reorganization followed the merger of the advisors' parent companies.

The Fund is an accounting survivor of a former Life & Annuity Trust fund, as
indicated in the Table of Predecessors below. The performance history and
financial highlights of the Fund is the performance history and financial
highlights of the predecessor fund.

Wells Fargo Variable Trust Predecessor Fund

Equity Value Fund LAT Equity Value Fund

Variable Trust Prospectus 23
<PAGE>

Portfolio Managers
- --------------------------------------------------------------------------------

24 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Glossary
- --------------------------------------------------------------------------------

We provide the following definitions to assist you in reading this
Prospectus. For a more complete understanding of these terms you should consult
your financial advisor.

American Depositary Receipts ("ADRs")
Receipts for non-U.S. company stocks.The stocks underlying ADRs are typically
held in bank vaults. The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in foreign companies.

Asset-Backed Securities
Securities consisting of an undivided fractional interest in pools of consumer
loans, such as car loans or credit card debt, or receivables held in trust.

Below Investment-Grade
Securities rated BBB or lower by S&P or Baa or lower by Moody's Investor
Services, or that may be unrated securities or securities considered to be "high
risk."

Business Day
Any day the New York Stock Exchange is open is a business day for the Funds.

Capital Appreciation, Capital Growth
The increase in the value of a security. See also "total return."

Capitalization
When referring to the size of a company, capitalization means the total number
of a company's outstanding shares of stock multiplied by the price per share.
This is an accepted method of determining a company's size and is sometimes
referred to as "market capitalization."

Capital Structure
Refers to how a company has raised money to operate.Can include, for example,
borrowing or selling stock.

Collateralized Mortgage Obligations ("CMOs")

Securities collateralized by portfolios of mortgage pass-through securities.
CMOs are structured into multiple classes, and are paid according to class
maturity, shortest maturities paid first.

Commercial Paper
Debt instruments issued by banks, corporations and other issuers to finance
short-term credit needs. Commercial paper typically is of high credit quality
and offers below market interest rates.

Convertible Debt Securities
Bonds or notes that are exchangeable for equity securities at a set price on a
set date or at the election of the holder.

Current Income
Earnings in the form of dividends or interest as opposed to capital growth. See
also "total return."

Debt Securities
Generally, a promise to pay interest and repay principal by an individual or
group of individuals sold as a security. The owner of the security is entitled
to receive any such payments. Examples include bonds and mortgage-backed
securities and can include securities in which the right to receive interest and
principal repayment have been sold separately.

Derivatives
Securities whose values are derived in part from the value of another security
or index. An example is a stock option.

26 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

Distributions
Dividends and/or capital gains paid by a Fund on its shares.

Diversified
A diversified fund, as defined by the Investment Company Act of 1940, is one
that invests in cash, Government securities, other investment companies and no
more than 5% of its total assets in a single issuer. These policies must apply
to 75% of the Funds' total assets.

Dollar-Denominated
Securities issued by foreign banks,companies or governments in U.S. dollars.

Duration
A measure of a security's or portfolio's sensitivity to changes in interest
rates.Duration is usually expressed in years, with longer durations typically
more sensitive to interest rate changes than shorter durations.

Emerging Markets
Markets associated with a country that is considered by international financial
organizations, such as the International Finance Corporation and the
International Bank for Reconstruction and Development, and the international
financial community to have an "emerging" stock market. Such markets may be
under-capitalized, have less-developed legal and financial systems or may have
less stable currencies than markets in the developed world.

Federal Deposit Insurance Corporation ("FDIC")
The Federal Deposit Insurance Corporation. This is the company that provides
federally sponsored insurance covering bank deposits such as savings accounts
and CDs. Mutual funds are not FDIC insured.

FHLMC
FHLMC securities are commonly known as "Freddie Mac" and are issued by the
Federal Home Loan Mortgage Corporation.

FNMA
FNMA securities are commonly known as "Fannie Maes" and are issued by the
Federal National Mortgage Association.

GNMA
GNMA securities are commonly known as "Ginnie Maes" and are issued by the
Government National Mortgage Association.

Hedge
Strategy used to offset investment risk. A perfect hedge is one eliminating the
possibility of future gain or loss.

Illiquid Security
A security that cannot be readily sold at the desired time, or cannot be readily
sold without negatively affecting its fair price.

Initial Public Offering
The first time a company's stock is offered for sale to the public.

Investment-Grade Securities
A type of bond rated in the top four investment categories by a nationally
recognized ratings organization. Generally these are bonds whose issuers are
considered to have a strong ability to pay interest and repay principal,
although some investment-grade bonds may have some speculative characteristics.

Variable Trust Prospectus 27
<PAGE>

Glossary
- --------------------------------------------------------------------------------

Liquidity
The ability to readily sell a security at a fair price.

Money Market Instruments
High-quality short-term instruments meeting the requirements of Rule 2a-7 of the
1940 Act, such as bankers' acceptances,commercial paper, repurchase agreements
and government obligations. In a money market fund, average portfolio maturity
does not exceed 90 days, and all investments have maturities of 397 days or less
at the time of purchase.

Moody's
A nationally recognized ratings organization.

Nationally Recognized Ratings Organization ("NRRO")
A company that examines the ability of a bond issuer to meet its obligations and
which rates the bonds accordingly.

Net Asset Value ("NAV")
The value of a single fund share. It is determined by adding together all of a
Fund's assets, subtracting accrued expenses and other liabilities, then dividing
by the total number of shares. The NAV is calculated separately for each class
of the Fund, and is determined as of the close of regular trading on each
business day the NYSE is open, typically 1:00 p.m. (Pacific time)/3:00 p.m.
(Central time).

Options
An option is the right to buy or sell a security based on an agreed upon price
for at a specified time. For example,an option may give the holder of a stock
the right to sell the stock to another party, allowing the seller to profit if
the price has fallen below the agreed price. Options may also be based on the
movement of an index such as the S&P 500.

Preservation of Capital
The attempt by a fund's manager to defend against drops in the net asset value
of fund shares in order to preserve the initial investment.

Price-to-Earnings Ratio
The ratio between a stock's price and its historical, current or anticipated
earnings. Low ratios typically indicate a high yield. High ratios are
characteristic of growth stocks which generally have low current yields.

Principal Stability
The degree to which share prices for a fund remain steady. Money market funds
attempt to achieve the highest degree of principal stability by maintaining a
$1.00 per share net asset value. More aggressive funds may not consider
principal stability an objective.

Repurchase Agreement
An agreement between a buyer and seller of a security in which the seller agrees
to repurchase the security at an agreed upon price and time.

Russell 1000 Index
An index comprised of the 1000 largest firms listed on the Russell 3000 Index.
The Russell 3000 Index is a listing of 3000 corporations by the Frank Russell
Company that is intended to be representative of the U.S. economy. The Russell
1000 is considered a "large cap" index.

Russell 2000 Index
An index comprised of the 2000 smallest firms listed on the Russell 3000 Index.
The Russell 3000 Index is a listing of 3000 corporations by the Frank Russell
Company that is intended to be representative of the U.S. economy. The Russell
2000 is considered a "small cap" index.

28 Variable Trust Prospectus
<PAGE>

- --------------------------------------------------------------------------------

Selling Agent
A person who has an agreement with the Funds' distributors that allows them to
sell a Fund's shares.

Shareholder Servicing Agent
Anyone appointed by the Fund to maintain shareholder accounts and records,
assist and provide information to shareholders or perform similar functions.

Signature Guarantee
A guarantee given by a financial institution that has verified the identity of
the maker of the signature.

S&P, S&P 500 Index
Standard & Poor's, a nationally recognized ratings organization. S&P also
publishes various indexes or lists of companies representative of sectors of the
U.S. economy.

Statement of Additional Information
A document that supplements the disclosure made in the Prospectus.

Stripped Treasury Securities
Debt obligations in which the interest payments and the repayment of principal
are separated and sold as securities.

Total Return
The total value of capital growth and the value of all distributions, assuming
that distributions were used to purchase additional shares of the Funds.

Turnover Ratio
The percentage of the securities held in a Fund's portfolio, other than short-
term securities, that were bought or sold within a year.

Undervalued
Describes a stock that is believed to be worth more than its current price.

U.S. Government Obligations
Obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.

Value Strategy
A strategy of investing which tries to identify and buy undervalued stocks under
the assumption that the stock will eventually rise to its "fair market" value.

Warrants
The right to buy a stock at a set price for a set time.

Weighted Average Maturity
The average maturity for the debt securities in a portfolio on a dollar-for-
dollar basis.

Variable Trust Prospectus 29
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENT:

STATEMENT OF ADDITIONAL INFORMATION
supplements the disclosures made by this Prospectus. The Statement of Additional
Information has been filed with the SEC and incorporated by reference into this
Prospectus and is legally part of this Prospectus.

THIS DOCUMENT IS AVAILABLE FREE OF CHARGE:

Call: 1-800-222-8222

WRITE TO:
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266; or

Visit the SEC's website at http://www.sec.gov

REQUEST COPIES FOR A FEE BY WRITING TO:
SEC Public Reference Room
Washington, DC 20549-6009
Call: 1-800-SEC-0330 for details
<PAGE>

WELLS
FARGO
FUNDS

WELLS FARGO
VARIABLE TRUST FUNDS

Please read this Prospectus and keep it for future reference. It is designed to
provide you with important information and to help you decide if a Fund's goals
match your own.

Fund shares are NOT deposits or other obligations of, or issued,endorsed or
guaranteed by Wells Fargo Bank, N.A. ("Wells Fargo Bank") or any of its
affiliates. Fund shares are NOT insured or guaranteed by the U.S. Government,
the Federal Deposit Insurance Corporation ("FDIC") or any other governmental
agency. AN INVESTMENT IN A FUND INVOLVES CERTAIN RISKS, INCLUDING POSSIBLE LOSS
OF PRINCIPAL.

PROSPECTUS

Asset Allocation Fund
Corporate Bond Fund
Equity Income Fund
Equity Value Fund
Growth Fund
International Equity Fund
Large Company Growth Fund
Small Cap Growth Fund

SEPTEMBER 20
1999
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Table of Contents Variable Trust Funds
- --------------------------------------------------------------------------------

Overview Objectives and Principal Strategies 4

This section contains important Summary of Important Risks 6
summary information about the Performance History 9
Funds. Key Information 13

- --------------------------------------------------------------------------------

The Funds Asset Allocation Fund 14

This section contains important Corporate Bond Fund 18
information about the individual Equity Income Fund 20
Funds. Equity Value Fund 22
Growth Fund 24
International Equity Fund 28
Large Company Growth Fund 30
Small Cap Growth Fund 32
General Investment Risks 35
Organization and Management
of the Funds 41

- ----------------------------------------------------------------------------

Your Investment Your Account 44

Turn to this section for
information on how to buy
and sell Fund shares.

- --------------------------------------------------------------------------------

Reference Other Information 45

Look here for additional Table of Predecessors 46
information and term Portfolio Managers 47
definitions. Glossary 50

<PAGE>

Variable Trust Funds Overview
- --------------------------------------------------------------------------------
See the individual Fund descriptions in this Prospectus for further details.

FUND OBJECTIVE

Asset Allocation Fund Seeks long-term total return,consistent with
reasonable risk.

Corporate Bond Fund Seeks a high level of current income consistent
with reasonable risk.

Equity Income Fund Seeks long-term capital appreciation and above-
average dividend income.

Equity Value Fund Seeks long-term capital appreciation.

Growth Fund Seeks long-term capital appreciation.

International Equity Fund Seeks total return,with an emphasis on capital
appreciation over the long-term.

Large Company Growth Seeks long-term capital appreciation.
Fund

Small Cap Growth Fund Seeks long-term capital appreciation.

4 Variable Trust Prospectus
<PAGE>

PRINCIPAL STRATEGY

We do not select individual securities for investment, rather, we buy
substantially all of the securities of various indexes to replicate the total
return of the index. We use an asset allocation model to allocate and reallocate
assets among common stocks (S&P 500 Index), U.S. Treasury bonds (Lehman Brothers
20+ Bond Index) and money market instruments, operating from a target allocation
of 60% stocks and 40% bonds. We invest in asset classes that we believe are
undervalued in order to achieve better long-term, risk-adjusted returns.

We invest in equity securities that we believe are undervalued in relation to
the overall stock markets.

The Fund invests in the common stock of large, high-quality domestic companies
that have superior growth potential. We consider "large" companies to be those
whose market capitalization is greater than the median of the Russell 1000
Index, which is considered a mid- to large-capitalization index.

Variable Trust Prospectus 5
<PAGE>

Summary of Important Risks
- --------------------------------------------------------------------------------

. the individual Fund Descriptions later in this Prospectus;

. under the "General Investment Risks" section beginning on page 35; and

. in the Funds' Statement of Additional Information.

COMMON RISKS FOR THE FUNDS

Equity Securities
The Funds invest in equity securities, which are subject to equity market
risk. This is the risk that stock prices will fluctuate and can decline and
reduce the value of a Fund's portfolio. Certain types of stock and certain
individual stocks selected for a Fund's portfolio may underperform or decline in
value more than the overall market. As of the date of this Prospectus, the
equity markets, as measured by the S&P 500 Index and other commonly used
indexes, are trading at or close to record levels. There can be no guarantee
that these levels will continue. The Funds that invest in smaller companies, in
foreign companies (including investments made through American Depositary
Receipts and similar instruments), and in emerging markets are subject to
additional risks, including less liquidity and greater price volatility. A
Fund's investment in foreign companies and emerging markets are also subject to
special risks associated with international investing, including currency,
political, regulatory and diplomatic risks.

Debt Securities
The Funds may invest some of their assets in debt securities,such as notes and
bonds, which are subject to credit risk and interest rate risk. Credit risk is
the possibility that an issuer of an instrument will be unable to make interest
payments or repay principal. Changes in the financial strength of an issuer or
changes in the credit rating of a security may affect its value. Interest rate
risk is the risk that interest rates may increase, which will reduce the resale
value of instruments in a Fund's investments, including U.S. Government
obligations. Debt securities with longer maturities are generally more sensitive
to interest rate changes than those with shorter maturities. Changes in market
interest rates do not affect the rate payable on debt securities held in a
Fund, unless the instrument has adjustable or variable rate features, which can
reduce interest rate risk. Changes in market interest rates may also extend or
shorten the duration of certain types of instruments, such as asset-backed
securities, thereby affecting their value and the return on your investment.

6 Variable Trust Prospectus
<PAGE>

FUND SPECIFIC RISKS

The Fund uses an investment model that seeks
undervalued asset classes. There is no guarantee
that the asset allocation model will make accurate
Asset Allocation Fund determinations or that an asset class we believe is
undervalued will perform as expected. We may incur
higher than average portfolio turnover resulting
from allocation shifts recommended by the model.
Portfolio turnover increases transaction costs and
may trigger capital gains.

We may invest in debt securities that are in low or
below investment grade categories, or are unrated
or in default at the time of purchase. Such debt
securities have a much greater risk of default (or
Corporate Bond Fund in the case of bonds currently in default,of not
returning principal) and are more volatile than
higher-rated securities of similar maturity. The
value of such debt securities will be affected by
overall economic conditions, interest rates, and
the creditworthiness of the individual issuers.
Additionally,these lower rated debt securities may
be less liquid and more difficult to value than
higher rated securities.

Stocks selected for their high dividend income may
be more sensitive to interest rate changes than
Equity Income Fund other stocks. This Fund is primarily subject to the
equity securities risks described in the Common
Risks section above.

There is no guarantee that securities selected as
"undervalued" will perform as expected. Stocks of
Equity Value Fund smaller, medium-sized and foreign companies
purchased using the value strategy may be more
volatile and less liquid than other comparable
securities.

We select growth stocks based on prospects for
future earnings, which may not grow as expected. In
Growth Fund addition, at times, the overall market or the
market for value stocks may outperform growth
stocks.

Variable Trust Prospectus 7
<PAGE>

Summary of Important Risks
- --------------------------------------------------------------------------------

FUND SPECIFIC RISKS

Foreign company stocks involve special
risks,including generally higher commission rates,
political, social and monetary or diplomatic
developments that could affect U.S. investments in
foreign countries. Emerging market countries may
experience increased political instability, and are
often dependent on international trade, making them
more vulnerable to events in other countries. They
may have less developed financial systems and
International Equity Fund volatile currencies and may be more sensitive than
more mature markets to a variety of economic
factors. Emerging market securities may also be
less liquid than securities of more developed
countries, which may make them more difficult to
sell, particularly during a market downturn.
Additionally, dispositions of foreign securities
and dividends and interest payable on those
securities may be subject to foreign taxes.

The Fund is primarily subject to the equity market
risks described in the Common Risks section above.
Dividend-producing large company stocks have
experienced unprecedented appreciation in recent
Large Company Growth Fund years. There is no guarantee such performance
levels will continue. We select growth stocks based
on prospects for future earnings, which may not
grow as expected. In addition, at times, the
overall market or the market for value stocks may
outperform growth stocks.

This Fund may invest in companies that pay low or
no dividends, have smaller market capitalizations,
have less market liquidity, have no or relatively
short operating histories, or are newly public
companies. Some of these companies have aggressive
capital structures, including high debt levels, or
are involved in rapidly growing or changing
industries and/or new technologies. Because the
Fund may invest in such aggressive securities,
share prices may rise and fall more than the share
Small Cap Growth Fund prices of other funds. In addition, our active
trading investment strategy may result in a higher-
than-average portfolio turnover ratio, increased
trading expenses, and higher short-term capital
gains. We select stocks for this Fund based in part
on their prospects for future earnings, which may
not grow as expected. In addition, at times, the
overall market or the market for value stocks may
outperform growth stocks.

8 Variable Trust Prospectus
<PAGE>

Performance History
- --------------------------------------------------------------------------------

The information on the following pages shows you how each Fund has performed and
illustrates the variability of a Fund's returns over time. Each Fund's average
annual returns for one-year and since inception periods are compared to the
performance of an appropriate broad-based index. Please remember that past
performance is no guarantee of future results. The performance for the Funds in
this Prospectus do not reflect fees charged by our variable life
insurance/annuity certificate or contract. If they did,returns would be lower.

The Corporate Bond Fund, Equity Value Fund, International Equity Fund and Large
Company Growth Fund have been in operation less than a calendar
year, therefore, performance information is not shown for these Funds.

Asset Allocation Fund Calendar Year Returns (%)*

[BAR CHART APPEARS HERE]

'95 '96 '97 '98

28.95 11.46 20.88 25.26

Best Qtr.: Q4 '98 . 15.86% Worst Qtr.: Q3 '98 . -5.38%

* The Fund's year-to-date performance through June 30, 1999 was 6.10%

<TABLE>
<CAPTION>
Average annual total return (%)
for the period Since
1 year Inception
<S> <C> <C>
WFVT Asset Allocation Fund (Incept.4/15/94) 25.26 18.24
S&P 500 Index/1/ 28.58 26.49
LB Gov't./Corp. Bond Index/2/ 9.47 8.43
</TABLE>

1. S&P 500 is a registered trademark of Standard & Poor's.
2. Lehman Brothers Government/Corporate Bond Index.

Variable Trust Prospectus 9
<PAGE>

Performance History
- --------------------------------------------------------------------------------

Equity Income Fund Calendar Year Returns (%)*

[BAR CHART APPEARS HERE]

'97 '98

26.90 18.42

Best Qtr.: Q4 '98 . 15.63% Worst Qtr.: Q3 '98 . -9.73%

* The Fund's year-to-date performance through June 30, 1999 was 12.75%.

<TABLE>
<CAPTION>
Average annual total return (%)
for the period ended 12/31/98 Since
1 year Inception
<S> <C> <C>
WFVT Equity Income Fund (Incept. 5/6/96) 18.42 20.71
S&P 500 Index/1/ 28.58 28.96
</TABLE>

1. S&P 500 is a registered trademark of Standard & Poor's.

10 Variable Trust Prospectus
<PAGE>

Growth Fund Calendar Year Returns (%)*

[BAR CHART APPEARS HERE]

'95 '96 '97 '98

29.19 22.44 17.33 28.81

Best Qtr.: Q4 '98 . 22.93% Worst Qtr.: Q3 '98 . -10.40%

* The Fund's year-to-date performance through June 30, 1999 was 10.86%.

<TABLE>
<CAPTION>
Average annual total return (%)
for the period ended 12/31/98 Since
1 year Inception
<S> <C> <C>
WFVT Growth Fund (Incept. 4/12/94) 28.81 21.42
S&P 500 Index/1/ 28.58 26.49
</TABLE>

1. S&P 500 is a registered trademark of Standard & Poor's.

Variable Trust Prospectus 11
<PAGE>

Performance History
- --------------------------------------------------------------------------------

Small Cap Growth Fund Calendar Year Returns (%)*

[BAR CHART APPEARS HERE]

'96 '97 '98

31.47 9.87 -14.47

Best Qtr.: Q2 '97 . 18.76% Worst Qtr.: Q3 '98 . -27.93%

* The Fund's year-to-date performance through June 30, 1999 was -4.78%

<TABLE>
<CAPTION>
Average annual total return (%)
for the period ended 12/31/98 Since
1 year Inception
<S> <C> <C>
WFVT Small Cap Growth Fund (Incept. 5/17/95) -14.47 10.26
Russell 2000 Index -2.55 14.78
</TABLE>

12 Variable Trust Prospectus
<PAGE>

Key Information
- -------------------------------------------------------------------------------

Important information you should look for as you decide to invest in a Fund:
The summary information on the previous pages is designed to provide you with an
overview of each Fund. The sections that follow provide more detailed
information about the investments and management of each Fund.

- -------------------------------------------------------------------------------

Investment Objective and Investment Strategies
The investment objective of each Fund in this Prospectus is non-fundamental,
that is, it can be changed by a vote of the Board of Trustees alone. The
objectives and strategies descriptions for each Fund tell you:

. what the Fund is trying to achieve;

. how we intend to invest your money; and

. what makes a Fund different from the other Funds offered in this Prospectus.

- -------------------------------------------------------------------------------

Permitted Investments
A summary of the Fund's key permitted investments and practices.

- -------------------------------------------------------------------------------

Important Risk Factors
Describes the key risk factors for the Fund, and includes risks described in the
"Summary of Important Risks" and "General Investment Risks" sections.

Words appearing in italicized print and highlighted in color are defined in the
Glossary.

Variable Trust Prospectus 13
<PAGE>

Asset Allocation Fund
- -------------------------------------------------------------------------------

Investment Objective
The Asset Allocation Fund seeks long-term total return, consistent with
reasonable risk.

- -------------------------------------------------------------------------------

Investment Strategies
We allocate and reallocate assets among common stocks, U.S. Treasury Bonds and
money market instruments. This strategy is based on the premise that asset
classes are at times undervalued or overvalued in comparison to one another and
that investing in undervalued asset classes offers better long-term, risk-
adjusted returns.

- -------------------------------------------------------------------------------

Permitted Investments
The asset classes we invest in are:

. Stock Investments--We invest in common stocks to replicate the S&P 500 Index.
We do not individually select common stocks on the basis of traditional
investment analysis. Instead, we invest in each company comprising the S&P
500 Index in proportion to its weighting in the S&P 500 Index to match the
total return of the S&P 500 Index as closely as possible;

. Bond Investments--We invest in U.S. Treasury Bonds to replicate the Lehman
Brothers 20+ Bond Index. Bonds in this Index have remaining maturities of
twenty years or more; and

. Money Market Investments--We invest this portion of the Fund in high-quality
money market instruments, including U.S. Government obligations, obligations
of foreign and domestic banks, short-term corporate debt instruments and
repurchase agreements.

In addition, under normal market conditions, we may invest:

. In call and put options on stock indexes, stock index futures, options on
stock index futures, and interest rate futures contracts as a substitute for
a comparable market position in stocks or bonds;

. In interest rate and index swaps; and

. Up to 25% of total assets in foreign obligations qualifying as money market
investments.

We manage the allocation of investments in the Fund's portfolio assuming a
"normal" allocation of 60% stocks and 40% bonds. This is not a "target"
allocation but rather a measure of the level of risk tolerance for the Fund.

We are not required to keep a minimum investment in any of the three asset
classes described above, nor are we prohibited from investing substantially all
of our assets in a single class. The allocation may shift at any time. We may
temporarily hold assets in cash or in money market instruments, including
U.S. Government obligations, repurchase agreements and other short-term
investments, to maintain liquidity or when we believe it is in the best
interests of shareholders to do so. During such periods, the Fund may not
achieve its objective of long-term total return. The Fund is a diversified
portfolio.

14 Variable Trust Prospectus
<PAGE>

Important Risk Factors
Foreign obligations may entail additional risks, such as currency, political,
regulatory and diplomatic risks, which are described in more detail in the
General Investment Risks section below. The value of investments in options on
stock indexes and stock index futures is affected by price movements for the
stocks in a particular index, rather than price movements for an individual
security.

You should consider the "Summary of Important Risks" section on page 6; the
"General Investment Risks" section beginning on page 35; and the specific risks
listed here. They are all important to your investment choice.

Variable Trust Prospectus 15
<PAGE>

Asset Allocation Fund
- -------------------------------------------------------------------------------
This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING

FUND COMMENCED
ON APRIL 15, 1994
-------------------------------------
(Unaudited)
For the period ended: Jun. 30, Dec. 31,
1999 1998
-------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.45 $ 11.99

Income from investment operations:
Net investment income (loss) 0.11 0.34
Net realized and unrealized gain (loss)
on investments 0.71 2.60

Total from investment operations 0.82 2.94

Less distributions:
Dividends from net investment income (0.11) (0.34)
Distributions from net realized gain 0.00 (1.14)

Total from distributions (0.11) (1.48)

Net asset value, end of period $ 14.16 $ 13.45

Total return (not annualized)/1/ 6.10% 25.26%

Ratios/supplemental data:
Net assets, end of period (000s) $201,116 $156,241

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.96% 0.92%
Ratio of net investment income (loss)
to average net assets 1.68% 2.62%

Portfolio turnover 27% 29%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.20% 1.11%

/1/ Total returns do not include sales charges.

16 Variable Trust Prospectus
<PAGE>

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 11.42 $ 11.27 $ 9.71 $ 10.00

0.60 0.56 0.55 0.30

1.73 0.69 2.21 (0.19)

2.33 1.25 2.76 0.11

(0.60) (0.56) (0.55) (0.30)
(1.16) (0.54) (0.65) (0.10)

(1.76) (1.10) (1.20) (0.40)

$ 11.99 $ 11.42 $ 11.27 $ 9.71

20.88% 11.46% 28.95% 1.13%

$86,506 $51,797 $25,467 $ 7,464

0.80% 0.69% 0.41% 0.00%

5.20% 5.34% 5.58% 6.30%

156% 4% 97% 0%

0.85% 0.80% 1.22% 2.24%

5.15% 5.23% 4.77% 4.06%
- -------------------------------------------------------------------------------
</TABLE>

Variable Trust Prospectus 17
<PAGE>

Corporate Bond Fund
- -------------------------------------------------------------------------------

Portfolio Managers: N. Graham Allen, FCMA; John W. (Jack) Burgess; Jacqueline
A. Flippin; Daniel J. Kokoszka, CFA; Scott Smith, CFA

- -------------------------------------------------------------------------------

Investment Objective
The Corporate Bond Fund seeks a high level of current income, consistent with
reasonable risk.

- -------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of our total assets in corporate debt securities;

. in U.S. Government obligations;

. up to 25% of our total assets in debt securities that are below investment
grade; and

. up to 25% of our total assets in securities of foreign issuers.

- -------------------------------------------------------------------------------

Important Risk Factors
We may invest in securities regardless of their rating, or in securities that
are unrated or in default at the time of purchase.

18 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Equity Income Fund
- -------------------------------------------------------------------------------

Portfolio Managers: David L. Roberts, CFA; Gary J. Dunn, CFA

- -------------------------------------------------------------------------------

Investment Objective
The Equity Income Fund seeks long-term capital appreciation and above-average
dividend income.

- -------------------------------------------------------------------------------

Investment Strategies
We invest primarily in the common stock of large, high-quality domestic
companies that have above-average return potential based on current market
valuations. We primarily emphasize investments in securities of companies with
above-average dividend income. We use various valuation measures when selecting
securities for the portfolio, including above-average dividend yields and below
industry average price-to-earnings, price-to-book and price-to-sales ratios. We
consider "large" companies to be those whose market capitalization is greater
than the median of the Russell 1000 Index.

- -------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in income-producing equity securities; and

. in issues of companies with market capitalization greater than the median of
the Russell 1000 Index (as of March 31, 1999, this median was approximately
$3.7 billion; the median is expected to change frequently).

We may invest in preferred stocks, convertible securities, and securities of
foreign companies. We will normally limit our investment in a single issuer to
10% or less of our total assets.

We may temporarily hold assets in cash or in money market instruments, including
U.S. Government obligations, shares of other mutual funds and repurchase
agreements, or make other short-term investments, either to maintain liquidity
or for short-term defensive purposes when we believe it is in the best interests
of shareholders to do so. During these periods, the Fund may not achieve its
objective of long-term capital appreciation and above-average dividend income.

- -------------------------------------------------------------------------------

Important Risk Factors
Stocks selected for their high dividend yields may be more sensitive to interest
rate changes than other stocks.

20 Variable Trust Prospectus
<PAGE>

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING
FUND COMMENCED
ON MAY 6, 1996
----------------------------------------
(Unaudited)
For the period ended: Jun. 30, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1997 1996
----------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.00 $ 13.68 $ 10.91 $10.00

Income from investment operations:
Net investment income (loss) 0.09 0.18 0.14 0.08
Net realized and unrealized gain (loss)
on investments 1.95 2.34 2.79 0.92

Total from investment operations 2.04 2.52 2.93 1.00

Less distributions:
Dividends from net investment income 0.00 (0.18) (0.14) (0.08)
Distributions from net realized gain 0.00 (0.02) (0.02) (0.01)

Total from distributions 0.00 (0.20) (0.16) (0.09)

Net asset value, end of period $ 18.04 $ 16.00 $ 13.68 $10.91

Total return (not annualized)/1/ 12.75% 18.42% 26.90% 9.95%

Ratios/supplemental data:
Net assets, end of period (000s) $114,900 $86,069 $39,888 $9,415

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to
average net assets 1.22% 1.47% 1.85% 2.31%

Portfolio turnover 1.00% 1.58% 2.85% 4.20%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.09% 1.10% 1.34% 2.51%

/1/ Total returns do not include sales charges.

Variable Trust Prospectus 21
<PAGE>

Equity Value Fund
- --------------------------------------------------------------------------------

Portfolio Managers: Rex Wardlaw, CFA; Allen Wisniewski, CFA; Gregg Giboney, CFA

- --------------------------------------------------------------------------------

Investment Objective
The Equity Value Fund seeks long-term capital appreciation.

- --------------------------------------------------------------------------------

Investment Strategies
We seek long-term capital appreciation by investing in a diversified portfolio
composed primarily of equity securities that are trading at low price-to-
earnings ratios, as measured against the stock market as a whole or against the
individual stock's own price history. In addition we look at the price-to-book
value and price-to-cash flow ratios of companies for indications of attractive
valuation. We use both quantitative and qualitative analysis to identify
possible investments. Dividends are a secondary consideration when selecting
stocks. We may purchase particular stocks when we believe that a history of
strong dividends may increase their market value.

- --------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. primarily in common stocks of both large, well-established companies and
smaller companies with market capitalization exceeding $50 million at the
time of purchase;

. in debt securities that may be converted into the common stock of both
U.S. and foreign companies; and

. up to 25% of our assets in foreign companies through American Depositary
Receipts and similar instruments.

We may also purchase convertible debt securities with the same characteristics
as common stock, as well as in preferred stock and warrants.

We may temporarily hold assets in cash or in money market instruments, including
U.S. Government obligations, shares of other mutual funds and repurchase
agreements, or make short-term investments, either to maintain liquidity or for
short-term defensive purposes when we believe it is in the best interests of
shareholders. During such periods, the Fund may not achieve its objective of
long-term capital appreciation.

- --------------------------------------------------------------------------------

Important Risk Factors
There is no guarantee that securities selected as "undervalued" will perform as
expected. Stocks of smaller, medium-sized and foreign companies purchased using
the value approach may be more volatile and less liquid than other comparable
securities.

You should consider the "Summary of Important Risks" section on page 6, the
"General Investment Risks" section beginning on page 35, and the specific risks
listed here. They are all important to your investment choice.

22 Variable Trust Prospectus
<PAGE>

Financial Highlights
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING
- --------------------------------------------------------------------------------
FUND COMMENCED
ON MAY 1, 1998
------------------------------
(Unaudited)
For the period ended: Jun. 30, Dec. 31,
1999 1998
------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.55 $ 10.00

Income from investment operations:
Net investment income (loss) 0.05 0.07
Net realized and unrealized gain (loss)
on investments 0.72 (0.45)

Total from investment operations 0.77 (0.38)

Less distributions:
Dividends from net investment income (0.05) (0.07)
Distributions from net realized gains 0.00 0.00

Total from distributions (0.05) (0.07)

Net asset value, end of period $ 10.27 $ 9.55

Total return (not annualized)/1/ 8.05% (3.76%)

Ratios/supplemental data:
Net assets, end of period (000s) $22,179 $11,072

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 1.09% 1.09%
Ratio of net investment income (loss) to
average net assets 1.06% 1.54%

Portfolio turnover 57% 27%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.52% 2.52%

/1/ Total returns do not include sales charges.

Variable Trust Prospectus 23
<PAGE>

Growth Fund
- --------------------------------------------------------------------------------

Portfolio Manager: Kelli Hill
- --------------------------------------------------------------------------------

Investment Objective
The Growth Fund seeks long-term capital appreciation.

- --------------------------------------------------------------------------------

Investment Strategies
We seek long-term capital appreciation by investing primarily in common stocks
and other equity securities and we look for companies that have a strong
earnings growth trend that we believe have above-average prospects for future
growth. We focus our investment strategy on larger capitalization stocks.

- --------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in equity securities, including common and
preferred stocks, and securities convertible into common stocks;

. the majority of total assets in issues of companies with market
capitalization that falls within, but towards the higher end of, the range of
the Russell 1000 Index, an index comprised of the 1,000 largest U.S.
companies based on total market capitalization, that is considered a mid-
capitalization index (As of March 31, 1999, this range was from $20 million
to $452 billion. The range is expected to change frequently.); and

. up to 25% of total assets in foreign companies through American Depositary
Receipts ("ADRs") and similar instruments.

- --------------------------------------------------------------------------------

Important Risk Factors
This Fund is primarily subject to the risks associated with equity securities,
including foreign equity and mid-capitalization equity securities, described
under Common Risks in the "Summary of Important Risks" section. The advisor
selects growth stocks based on prospects for future earnings, which may not grow
as expected. In addition, at times, the overall market or the market for value
stocks may outperform growth stocks.

24 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Growth Fund
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception, if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING

FUND COMMENCED
ON APRIL 12, 1994
------------------------------
(Unaudited)
For the period ended: Jun. 30, Dec. 31,
1999 1998
------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 20.05 $ 16.79

Income from investment operations:
Net investment income (loss) 0.01 0.09
Net realized and unrealized gain (loss)
on investments 2.15 4.65

Total from investment operations 2.16 4.74

Less distributions:
Dividends from net investment income (0.01) (0.09)
Distributions from net realized gain 0.00 (1.39)

Total from distributions (0.01) (1.48)

Net asset value, end of period $ 22.20 $ 20.05

Total return (not annualized)/1/ 10.85% 28.81%

Ratios/supplemental data:
Net assets, end of period (000s) $116,265 $100,927

Ratios to average net assets (annualized):
Ratio of expenses to average net assets 1.10% 1.04%
Ratio of net investment income (loss)to
average net assets 0.13% 0.51%

Portfolio turnover 29% 69%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.27% 1.18%

/1/ Total returns do not include sales charges.

26 Variable Trust Prospectus
<PAGE>

<TABLE>
<CAPTION>
- ---------------------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 15.34 $ 12.91 $ 10.30 $10.00

0.19 0.20 0.22 0.14

2.48 2.68 2.77 0.30

2.67 2.88 2.99 0.44

(0.19) (0.20) (0.22) (0.14)
(1.03) (0.25) (0.16) 0.00

(1.22) (0.45) (0.38) (0.14)

$ 16.79 $ 15.34 $ 12.91 $10.30

17.33% 22.44% 29.19% 4.47%

$71,944 $33,381 $10,920 $2,136

0.65% 0.60% 0.43% 0.00%

1.19% 1.53% 2.05% 3.00%

124% 95% 84% 21%

1.01% 1.12% 2.02% 10.18%

0.83% 1.01% 0.46% (7.18%)
- ---------------------------------------------------------------
</TABLE>

Variable Trust Prospectus 27
<PAGE>

International Equity Fund
- --------------------------------------------------------------------------------

Portfolio Managers: Katherine Schapiro, CFA; Stacey Ho, CFA

- --------------------------------------------------------------------------------

Investment Objective
The International Equity Fund seeks total return, with an emphasis on capital
appreciation, over the long-term, by investing primarily in equity securities of
non-U.S. companies.

- --------------------------------------------------------------------------------

Investment Strategies
We actively manage a diversified portfolio of equity securities of companies
based in developed non-U.S.countries and in emerging markets of the world.We
expect that the securities we hold will be traded on a stock exchange or other
market in the country in which the issuer is based, but they also may be traded
in other countries, including the U.S.

We apply a fundamentals-driven, value-oriented analysis to identify companies
with above-average potential for long-term growth. The financial data we examine
includes both the company's historical performance results and its projected
future earnings. Among other key criteria we consider are a company's
local, regional or global franchise; history of effective management
demonstrated by expanding revenues and earnings growth; prudent financial and
accounting policies and ability to take advantage of a changing business
environment.

- --------------------------------------------------------------------------------

Permitted Investments
Under normal market conditions, we invest:

. at least 80% of total assets in equity securities of companies located or
operating outside the U.S.;

. in a minimum of five countries exclusive of the U.S.;

. up to 50% of total assets in any one country;

. up to 25% of total assets in emerging markets;

. in issuers with an average market capitalization of $10 billion or
more, although we may invest in equity securities of issuers with market
capitalization as low as $250 million; and

. in equity securities including common stocks, and preferred stocks, and in
warrants, convertible debt securities, American Depositary Receipts
("ADRs"), Government Depositary Receipts ("GDRs") (and similar instruments)
and shares of other mutual funds.

Although it is not our intention to do so, we reserve the right to hedge the
portfolio's foreign currency exposure by purchasing or selling foreign currency
futures and forward foreign currency contracts.

We may temporarily hold assets in cash or in money market instruments, including
U.S.Government obligations, shares of other mutual funds and repurchase
agreements, or make other short-term investments, either to maintain liquidity
or for short-term defensive purposes when we believe it is in the best interests
of shareholders to do so.We may also, for temporary defensive purposes, invest
without limit in cash, short-term debt and equity securities of U.S. companies
when we believe it is in the best interests of shareholders to do so. During
these periods, the Fund may not achieve its objective of total return, with an
emphasis on capital appreciation.

* As of the date of this Prospectus, this Fund has not commenced operations.

28 Variable Trust Prospectus
<PAGE>

Important Risk Factors
Foreign company stocks may lose value or be more difficult to trade as a result
of adverse changes in currency exchange rates or other developments in the
issuer's home country. Concentrated investment in any single country, especially
a less developed country, would make the Fund's value more sensitive to
economic, currency and regulatory changes within that country. Emerging market
countries are often dependent on international trade and are therefore often
vulnerable to events in other countries. They may have less developed financial
systems and volatile currencies and may be more sensitive than more mature
markets to a variety of economic factors. Emerging market securities may also be
less liquid than securities of more developed countries, which may make them
more difficult to sell,particularly during a market downturn.

You should consider the "Summary of Important Risks" section on page 6,the
"General Investment Risks" section beginning on page 35, and the specific risks
listed here. They are all important to your investment choice.

Variable Trust Prospectus 29
<PAGE>

Large Company Growth Fund
- --------------------------------------------------------------------------------

Portfolio Managers: John S. Dale, CFA; Gary E. Nussbaum, CFA

- --------------------------------------------------------------------------------

Investment Objective
The Large Company Growth Fund seeks long-term capital appreciation by investing
primarily in large, high-quality domestic companies that the Advisor believes
have superior growth potential.

- --------------------------------------------------------------------------------

Investment Strategies
We consider "large" companies to be those whose market capitalization is greater
than the median of the Russell 1000 Index,which,as of March 31,1999, was
approximately $3.7 billion,and is expected to change frequently. In selecting
securities for the Fund, we seek issuers whose stock is attractively valued with
fundamental characteristics that are significantly better than the market
average and that support internal earnings growth capability. We may invest in
the securities of companies whose growth potential we believe is generally
unrecognized or misperceived by the market.

- --------------------------------------------------------------------------------

Permitted Investments
We will not invest more than 10% of the Fund's total assets in the securities of
a single issuer. We may invest up to 20% of the Fund's total assets in the
securities of foreign companies and may hedge against currency risk by using
foreign currency forward contracts.

- --------------------------------------------------------------------------------

Important Risk Factors
Foreign company stocks may lose value or be more difficult to trade as a result
of adverse changes in currency exchange rates or other developments in the
issuer's home country. Concentrated investment in any single country,especially
a less developed country, would make the Fund's value more sensitive to
economic, currency and regulatory changes within that country. Emerging market
countries are often dependent on international trade and are therefore often
vulnerable to events in other countries.They may have less developed financial
systems and volatile currencies and may be more sensitive than more mature
markets to a variety of economic factors. Emerging market securities may also be
less liquid than securities of more developed countries, which may make them
more difficult to sell, particularly during a market downturn.

We select growth stocks based on prospects for future earnings, which may not
grow as expected. In addition, at times, the overall market or the market for
value stocks may outperform growth stocks.

You should consider the "Summary of Important Risks" section on page 6,the
"General Investment Risks" section beginning on page 35,and the specific risks
listed above.They are all important to your investment choice.

30 Variable Trust Prospectus
<PAGE>

This page intentionally left blank
- --------------------------------------------------------------------------------
<PAGE>

Small Cap Growth Fund
- --------------------------------------------------------------------------------

Portfolio Manager: Thomas Zeifang, CFA; Chris Greene

- --------------------------------------------------------------------------------

Investment Objective
The Small Cap Growth Fund seeks long-term capital appreciation.

- --------------------------------------------------------------------------------

Investment Strategies
We actively manage a diversified portfolio of common stocks issued by companies
whose market capitalization falls within the range of the Russell 2000 Index. As
of March 31, 1999, the range was $3.8 million to $8.55 billion,but it is
expected to change frequently. We will sell the stock of any company whose
market capitalization exceeds the range of this index for sixty consecutive
days.

We invest in the common stocks of domestic and foreign companies we believe have
above-average prospects for capital growth, or that may be involved in new or
innovative products, services and processes.

- --------------------------------------------------------------------------------
Permitted Investments
Under normal market conditions, we invest:

. at least 65% of total assets in an actively managed, broadly diversified
portfolio of small cap growth-oriented common stocks;

. in at least 20 common stock issues spread across multiple industry groups
and sectors of the economy;

. up to 40% of total assets in initial public offerings or recent start-ups
and newer issues; and

. no more than 25% of total assets in foreign companies through American
Depositary Receipts or similar issues.

- --------------------------------------------------------------------------------

Important Risk Factors
This Fund is designed for investors willing to assume above-average risk. We may
invest in companies that:

. pay low or no dividends;

. have smaller market capitalization;

. have less market liquidity;

. have no or relatively short operating histories, or are new public
companies or are initial public offerings, whose stocks are typically more
volatile than stocks of more seasoned companies;

. have aggressive capital structures including high debt levels; or

. are involved in rapidly growing or changing industries and/or new
technologies.

32 Variable Trust Prospectus
<PAGE>

Because we invest in aggressive securities,share prices may rise and fall more
than the share prices of other funds. In addition, our active trading investment
strategy may result in a higher-than-average portfolio turnover ratio, increased
trading expenses, and higher short-term capital gains. Stocks of foreign
companies, whether purchased directly or through American Depositary Receipts,
may be more volatile and less liquid than other comparable securities.

You should consider the "Summary of Important Risks" section on page 6;the
"General Investment Risks" section beginning on page 35; and the specific risks
listed here. They are all important to your investment choice.

Variable Trust Prospectus 33
<PAGE>

Small Cap Growth Fund
- --------------------------------------------------------------------------------

This table is intended to help you understand the Fund's financial performance
for the past 5 years (or since inception,if shorter). KPMG LLP audited this
information which, along with their report and the Fund's financial statements,
is available upon request in the Fund's annual report.

FOR A SHARE OUTSTANDING

<TABLE>
<CAPTION>
FUND COMMENCED
ON MAY 1, 1995
----------------------------------------------------------------
(Unaudited)
Jun. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
For the period ended: 1999 1998 1997 1996 1995
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.88 $ 12.77 $ 13.50 $ 11.21 $ 10.00

Income from investment operations:
Net investment income (loss) 0.00 0.03 0.01 0.02 0.06
Net realized and unrealized gain (loss)
on investments (0.52) (1.89) 1.24 3.51 1.54

Total from investment operations (0.52) (1.86) 1.25 3.53 1.60

Less distributions:
Dividends from net investment income 0.00 (0.03) (0.01) (0.02) (0.06)
Distributions from net realized gain 0.00 0.00 (1.59) (1.22) (0.33)

Total from distributions 0.00 (0.03) (1.60) (1.24) (0.39)

Net asset value, end of period $ 10.36 $ 10.88 $ 12.77 $ 13.50 $ 11.21

Total return (not annualized)/1/ (4.78%) (14.47%) 9.87% 31.47% 15.95%

Ratios/supplemental data:
Net assets, end of period (000s) $11,672 $13,295 $11,482 $ 6,091 $ 2,027

Portfolio turnover 155.00% 135.30% 208.95% 194.87% 51.16%

Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.61% 1.51% 1.88% 2.82% 5.38%

/1/ Total returns do not include sales charges.

34 Variable Trust Prospectus
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

. Unlike bank deposits, such as CDs or savings accounts,mutual funds are not
insured by the FDIC.

. We cannot guarantee that we will meet our investment objectives.

. We do not guarantee the performance of a Fund, nor can we assure you that
the market value of your investment will not decline. We will not "make
good" any investment loss you may suffer, nor can anyone we contract with
to provide certain services, such as selling agents or investment
advisors, offer or promise to make good any such losses.

. Investing in any mutual fund,including those deemed conservative,involves
risk, including the possible loss of any money you invest.

. An investment in a single Fund,by itself, does not constitute a complete
investment plan.

. The Funds that invest in smaller companies, foreign companies (including
investments made through American Depositary Receipts and similar
instruments), and in emerging markets are subject to additional
risks,including less liquidity and greater price volatility. A Fund's
investment in foreign and emerging markets may also be subject to special
risks associated with international trade, including currency,
political, regulatory and diplomatic risk.

. The Funds may invest a portion of their assets in U.S. Government
obligations.It is important to recognize that the U.S. Government does not
guarantee the market value or current yield of those obligations.Not all
U.S. Government obligations are backed by the full faith and credit of the
U.S. Treasury, and the U.S. Government's guarantee does not extend to the
Funds themselves.

. The Funds may also use certain derivative instruments, such as options or
futures contracts. The term "derivatives" covers a wide number of
investments, but in general it refers to any financial instrument whose
value is derived, at least in part,from the price of another security or a
specified index, asset or rate. Some derivatives may be more sensitive to
interest rate changes or market moves, and some may be susceptible to
changes in yields or values due to their structure or contract terms.

Variable Trust Prospectus 35
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

. The market value of lower-rated debt securities, also known as "junk
bonds," and unrated securities tends to reflect individual developments
affecting the issuer to a greater extent than the market value of higher-
rated securities, which react primarily to fluctuations in the general
level of interest rates. Lower-rated securities also tend to be more
sensitive to economic conditions than higher-rated securities. These lower-
rated debt securities are considered by the rating agencies, on balance,to
be predominantly speculative with respect to the issuer's capacity to pay
interest and repay principal in accordance with the terms of the obligation
and generally involve more credit risk than securities in higher-rating
categories. Even securities rated "BBB" by S&P or by Moody's ratings which
are considered investment-grade,possess some speculative characteristics.

Investment practices and risk levels are carefully monitored. Every attempt is
made to ensure that the risk exposure for each Fund remains within the
parameters of its objective.

Counter-Party Risk--The risk that the other party in a repurchase agreement or
other transaction will not fulfill its contract obligation.

Credit Risk--The risk that the issuer of a debt security will be unable to make
interest payments or repay principal on schedule.If an issuer does default,the
affected security could lose all of its value, or be renegotiated at a lower
interest rate or principal amount. Affected securities might also lose
liquidity.Credit risk also includes the risk that a party in a transaction may
not be able to complete the transaction as agreed.

Currency Risk--The risk that a change in the exchange rate between U.S. dollars
and a foreign currency may reduce the value of an investment made in a security
denominated in that foreign currency.

Diplomatic Risk--The risk that an adverse change in the diplomatic relations
between the United States and another country might reduce the value or
liquidity of investments in either country.

Emerging Market Risk--The risk that the emerging market,as defined in the
glossary, may be more sensitive to certain economic changes. For example,
emerging market countries are often dependent on international trade and are
therefore often vulnerable to recessions in other countries. They may have
obsolete financial systems, have volatile currencies and may be more sensitive
than more mature markets to a variety of economic factors. Emerging market
securities may also be less liquid than securities of more developed countries
and could be difficult to sell, particularly during a market downturn.

Information Risk--The risk that information about a security is either
unavailable, incomplete or is inaccurate.

36 Variable Trust Prospectus
<PAGE>

Interest Rate Risk--The risk that changes in interest rates can reduce the value
of an existing security. Generally,when interest rates increase,the value of a
debt security decreases. The effect is usually more pronounced for securities
with longer maturities.

Liquidity Risk--The risk that a security cannot be sold at the time desired, or
cannot be sold without adversely affecting the price.

Market Risk--The risk that the value of a stock,bond or other security will be
reduced by market activity. This is a basic risk associated with all securities.

Political Risk--The risk that political actions,events or instability may be
unfavorable for investments made in a particular nation's or region's
industry, government or markets.

Prepayment Risk--The risk that consumers will prepay mortgage loans, which can
alter the maturity of a mortgage-backed security, increase interest-rate risk,
and reduce rates of return.

Year 2000 Risk--The Funds' principal service providers have advised the Funds
that they are working on the necessary changes to their computer systems to
avoid any system failure based on an inability to distinguish the year 2000 from
the year 1900, and that they expect their systems to be adapted in time.There
can, of course, be no assurance of success. In addition, the companies or
entities in which the Funds invest also could be adversely impacted by the Year
2000 issue, especially foreign entities, which may be less prepared for Year
2000. The extent of such impact cannot be predicted.

In addition to the general risks discussed above, you should carefully consider
and evaluate any special risks that may apply to investing in a particular
Fund.See the "Important Risk Factors" section in the summary for each Fund.You
should also see the Statements of Additional Information for additional
information about the investment practices and risks particular to each Fund.

Variable Trust Prospectus 37
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

Investment Practice/Risk
The following table lists some of the additional investment practices of the
Funds, including some not disclosed in the Investment Objective and Investment
Strategies sections of the Prospectus. The risks indicated after the description
of the practice are NOT the only potential risks associated with that
practice, but are among the more prominent. Market risk is assumed for each. See
the Investment Objective and Investment Strategies for each Fund or the
Statement of Additional Information for more information on these practices.

Investment practices and risk levels are carefully monitored. We attempt to
ensure that the risk exposure for each Fund remains within the parameters of its
objective.

Remember, each Fund is designed to meet different investment needs and
objectives.

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY GROWTH
ALLOCATION BOND INCOME VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Borrowing Policies
The ability to borrow from banks for temporary Leverage Risk . . . . .
purposes to meet shareholder redemptions.

Emerging Markets
Investments in companies located or operating in Information,
countries considered developing or to have "emerging" Political, Regulatory, . . .
stock markets. Generally, these investments securities Diplomatic, Liquidity
have the same type of risks as foreign securities,but and Currency Risk
to a higher degree.

Floating and Variable Rate Debt
Instruments with interest rates that are adjusted either Interest Rate and . . . . .
on a schedule or when an index or benchmark changes. Credit Risk

Foreign Obligations Information,
Debt of a foreign government or corporation or dollar Political, Regulatory,
denominated debt obligations of foreign branches of Diplomatic, Liquidity . .
U.S. banks or U.S. branches of foreign banks. and Currency Risk

Foreign Securities
Equity securities issued by a non-U.S. company or debt Information,
of a or foreign government in the form of an American Political, Regulatory,
Depositary Receipt ("ADR") or similar instrument. Foreign Diplomatic, Liquidity . . . .
securities may also be emerging markets securities, which and Currency Risk
are subject to the same risks, but to a higher degree.

Forward Commitment, When-Issued and
Delayed Delivery Transactions Interest Rate,
Securities bought or sold for delivery at a later date or Leverage, Credit and . . . . .
bought or sold for a fixed price at a fixed date. Experience Risk

<CAPTION>
LARGE SMALL
INTERNATIONAL COMPANY CAP
EQUITY GROWTH GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Borrowing Policies
The ability to borrow from banks for temporary Leverage Risk . . .
purposes to meet shareholder redemptions.

Floating and Variable Rate Debt
Instruments with interest rates that are adjusted either Interest Rate and . .
on a schedule or when an index or benchmark changes. Credit Risk

Foreign Securities
Equity securities issued by a non-U.S. company or debt Information,
of a or foreign government in the form of an American Political, Regulatory,
Depositary Receipt ("ADR") or similar instrument. Foreign Diplomatic, Liquidity . . .
securities may also be emerging markets securities, which and Currency Risk
are subject to the same risks, but to a higher degree.

Forward Commitment, When-Issued and
Delayed Delivery Transactions Interest Rate,
Securities bought or sold for delivery at a later date or Leverage, Credit and . . .
bought or sold for a fixed price at a fixed date. Experience Risk
</TABLE>

38 Variable Trust Prospectus
<PAGE>

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY GROWTH
ALLOCATION BOND INCOME VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
High Yield Securities
Debt securities of lower quality, also known as "junk
bonds," that produce generally higher rates of return.
These securities tend to be more sensitive to economic Interest Rate and
conditions and during sustained periods of rising Credit Risk . .
interest rates, may experience increased interest and/or
principal defaults.

Illiquid Securities
A security that cannot be readily sold, or cannot be
readily sold without negatively affecting its fair price. Liquidity Risk . . . . .
Limited to 15% of total assets.

Loan Participations
Debt obligations that represent a portion of a larger
loan made by a bank. Generally sold without guarantee
or recourse, some participations sell at a discount Credit Risk .
because of the borrower's credit problems. Limited to
5% of total assets.

Loans of Portfolio Securities
The practice of loaning securities to brokers, dealers and
financial institutions to increase return on those Credit,
securities. Loans may be made up to Investment Company Counter-Party and . . . . .
Act of 1940 limits (currently one-third of total assets Leverage Risk
including the value of collateral received).

Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional interest Interest Rate, Credit,
in pools of consumer loans,such as mortgage loans, car Prepayment and . .
loans, credit card debt, or receivables held in trust. Experience Risk

Options
The right or obligation to receive or deliver a security or
cash payment depending on the security's price or the
performance of an index or benchmark. Types of options Credit, Information . . .
used may include: options on securities, options on a stock and Liquidity Risk
index, stock index futures and options on stock index
futures to protect liquidity and portfolio value.

Other Mutual Funds
The temporary investment in shares of another mutual
fund. A pro rata portion of the other fund's expenses, in Market Risk . . . . .
addition to the expenses paid by the Funds,will be borne
by Fund shareholders.

Privately Issued Securities
Securities that are not publicly traded but which may be
resold in accordance with Rule 144A of the Securities Act Liquidity Risk . . . . .
of 1933.

<CAPTION>
LARGE SMALL
INTERNATIONAL COMPANY CAP
EQUITY GROWTH GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
High Yield Securities
Debt securities of lower quality, also known as "junk
bonds," that produce generally higher rates of return.
These securities tend to be more sensitive to economic Interest Rate and
conditions and during sustained periods of rising Credit Risk
interest rates, may experience increased interest and/or
principal defaults.

Illiquid Securities
A security that cannot be readily sold, or cannot be
readily sold without negatively affecting its fair price. Liquidity Risk . . .
Limited to 15% of total assets.

Loan Participations
Debt obligations that represent a portion of a larger
loan made by a bank. Generally sold without guarantee
or recourse, some participations sell at a discount Credit Risk
because of the borrower's credit problems. Limited to
5% of total assets.

Loans of Portfolio Securities
The practice of loaning securities to brokers, dealers and
financial institutions to increase return on those Credit,
securities. Loans may be made up to Investment Company Counter-Party and . . .
Act of 1940 limits (currently one-third of total Leverage Risk
assets including the value of collateral received).

Mortgage- and Asset-Backed Securities
Securities consisting of undivided fractional interest Interest Rate, Credit,
in pools of consumer loans,such as mortgage loans, car Prepayment and
loans,credit card debt, or receivables held in trust. Experience Risk

Options
The right or obligation to receive or deliver a security or
cash payment depending on the security's price or the
performance of an index or benchmark. Types of options Credit, Information
used may include: options on securities, options on a stock and Liquidity Risk .
index, stock index futures and options on stock index
futures to protect liquidity and portfolio value.

Other Mutual Funds
The temporary investment in shares of another mutual
fund. A pro rata portion of the other fund's expenses, in Market Risk . . .
addition to the expenses paid by the Funds,will be borne
by Fund shareholders.

Privately Issued Securities
Securities that are not publicly traded but which may be
resold in accordance with Rule 144A of the Securities Act Liquidity Risk . . .
of 1933.
</TABLE>

Variable Trust Prospectus 39
<PAGE>

General Investment Risks
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSET CORPORATE EQUITY EQUITY GROWTH
ALLOCATION BOND INCOME VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreements
A transaction in which the seller of a security agrees to Credit and . . . . .
buy back a security at an agreed upon time and price, Counter-Party Risk
usually with interest.

Small Company Securities
The risk that investments in small companies may be Market, Experience . . .
and Liquidity Risk

Stripped Obligations
Securities that give ownership to either future payments
of interest or a future payment of principal, but not
both. These securities tend to have greater interest Interest Rate Risk .
rate sensitivity then conventional debt obligations.

<CAPTION>
LARGE SMALL
INTERNATIONAL COMPANY CAP
EQUITY GROWTH GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT PRACTICE RISK
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Repurchase Agreements
A transaction in which the seller of a security agrees to Credit and . . .
buy back a security at an agreed upon time and price, Counter-Party Risk
usually with interest.

Small Company Securities

The risk that investments in small companies may be Market, Experience . . .
and Liquidity Risk

Stripped Obligations
Securities that give ownership to either future payments
of interest or a future payment of principal, but not
both. These securities tend to have greater interest rate Interest Rate Risk
sensitivity then conventional debt obligations.
</TABLE>

40 Variable Trust Prospectus
<PAGE>

Organization and Management of the Funds
- --------------------------------------------------------------------------------

About Wells Fargo Variable Trust
Wells Fargo Variable Trust ("WFVT") was organized as a Delaware business trust
on March 10, 1999. The Board of Trustees of WFVT supervises each Fund's
activities, monitors its contractual arrangements with various service providers
and decides upon matters of general policy. The Funds are available for purchase
through certain variable annuity contracts ("VA Contracts") and variable life
insurance policies ("VLI Policies") offered by the separate accounts of
Participating Insurance Companies. Individual holders of VA Contracts and VLI
Policies are not the "shareholders" of or "investors" in the Funds. Rather, the
Participating Insurance Companies and their separate accounts are the
shareholders or investors, although such companies will pass through voting
rights to the holders of VA Contracts and VLI Policies. The WFVT currently does
not foresee any disadvantages to the holders of VA Contracts and VLI Policies
arising from the fact that the interests of the holders of VA Contracts and VLI
Policies may differ. Nevertheless, the WFVT's Board of Trustees intends to
monitor events in order to identify any conflicts which may arise and to
determine what action, if any, should be taken in response to such conflicts.
The VA Contracts and VLI Policies are described in the separate Prospectuses
issued by the Participating Insurance Companies. The WFVT assumes no
responsibility for such Prospectuses.

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
BOARD OF TRUSTEES
- -----------------------------------------------------------------------------------------------------------------------------
Supervises the Funds' activities
- -----------------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR CUSTODIAN
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Wells Fargo Bank, N.A. Norwest Bank Minnesota, N.A.
525 Market St., San Francisco, CA 6th & Marquette, Minneapolis, MN
Manages the Funds' investment activities Provides safekeeping for the assets of all Funds
except the Asset Allocation Fund
Barclays Global Investors, N.A.
45 Fremont St., San Francisco, CA
Provides safekeeping for the Asset Allocation Fund's assets
- -----------------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SUB-ADVISORS
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Wells Capital Management Barclays Global Fund Peregrine Capital
Incorporated Advisors Management, Inc.
525 Market St. 45 Fremont St. 800 Lasalle Ave.
San Francisco, CA San Francisco, CA Minneapolis, MN
(All Funds except as described at right) (Asset Allocation Fund) (Large Company Growth Fund)
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
TRANSFER
DISTRIBUTOR ADMINISTRATOR AGENT
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Stephens Inc. Wells Fargo Bank, N.A. Boston Financial Data
111 Center St. 525 Market St. Services, Inc.
Little Rock, AR San Francisco, CA Two Heritage Dr.
Quincy, MA

Markets the Funds Manages the Maintains records
and distributes Funds'business of shares and
Fund shares activities supervises the payment
of dividends
- -----------------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------------
PARTICIPATING INSURANCE COMPANIES AND SELLING AGENTS
- -----------------------------------------------------------------------------------------------------------------------------
Advise current and prospective contract holders with Fund investments
- -----------------------------------------------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------------------------------------------
CONTRACT HOLDERS
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Variable Trust Prospectus 41
<PAGE>

Organization and Management of the Funds
- --------------------------------------------------------------------------------

In the following sections, the percentages shown are the percentages of the
average daily net assets of each Fund paid on an annual basis for the services
described.

The Investment Advisor

Wells Fargo Bank, N.A. provides portfolio management and fundamental security
analysis services as the advisor for each of the Funds. Wells Fargo Bank,
founded in 1852, is the oldest bank in the western United States and is one of
the largest banks in the United States. Wells Fargo Bank is a wholly owned
subsidiary of Wells Fargo & Company, a national bank holding company. As of June
30, 1999, Wells Fargo Bank and its affiliates provided advisory services for
over $131 billion in assets.

For providing these services, Wells Fargo Bank is entitled to receive the
following fees:

Asset Allocation Fund 0.55%

Corporate Bond Fund 0.45%

Equity Income Fund 0.55%

Equity Value Fund 0.55%

Growth Fund 0.55%

International Equity Fund 0.75%

Large Company Growth Fund 0.55%

Small Cap Growth Fund 0.75%

The Sub-Advisors

Wells Capital Management Incorporated ("WCM"), a wholly owned subsidiary of
Wells Fargo Bank N.A., is the sub-advisor for the Funds (except the Asset
Allocation and Large Company Growth Funds). In this capacity, it is responsible
for the day-to-day investment management activities of the Funds. As of June 30,
1999, WCM provided advisory services for over$42 billion in assets.

Barclays Global Fund Advisors ("BGFA"), a wholly owned subsidiary of Barclays
Global Investors, N.A.("BGI"), and an indirect subsidiary of Barclays Bank
PLC, is the sub-advisor for the Asset Allocation Fund. BGFA was created from the
sale of Wells Fargo Nikko Investment Advisors, a former affiliate of Wells Fargo
Bank, to BGI. BGI is one of the largest providers of index portfolio management
services. As of June 30, 1999, BGI managed or provided investment advice for
assets aggregating in excess of $687 billion.

Peregrine Capital Management, Inc., a wholly owned subsidiary of Norwest Bank
Minnesota, N.A., is the sub-advisor for the Large Company Growth Fund. Peregrine
is an investment advisor subsidiary of Norwest Bank Minnesota, N.A. Peregrine
provides investment advisory services to corporate and public pension plans,
profit sharing plans,savings investment plans and 401(k) plans. As of June 30,
1999, Peregrine provided investment advisory services for over $6 billion in
assets.

The Sub-Advisors are compensated by the Investment Advisor from the fees
received by the Advisor as listed above.

42 Variable Trust Prospectus
<PAGE>

The Administrator

Wells Fargo Bank provides the Funds with administrative services, including
general supervision of each Fund's operation, coordination of the other services
provided to each Fund, compilation of information for reports to the SEC and
state securities commissions, preparation of proxy statements and shareholder
reports, and general supervision of data compilation in connection with
preparing periodic reports to the Trust's Trustees and officers. Wells Fargo
Bank also furnishes office space and certain facilities to conduct each Fund's
business. For providing these services, Wells Fargo Bank is entitled to receive
a fee of 0.15% of the average annual net assets of each Fund.

Distribution Plan

We have adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under
the 1940 Act for each Fund. The Plan authorizes the payment of all or part of
the cost of preparing and distributing Prospectuses, annual and semi-annual
reports, and other materials to shareholders, and the payment of compensation to
selling agents. For these services each Fund pays up to 0.25% of its annual net
assets.

Variable Trust Prospectus 43
<PAGE>

Your Account
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Investing in the Funds

The Funds are available for purchase through certain VA Contracts and VLI
Policies offered by the separate accounts of Participating Insurance
Companies. The separate accounts of the Participating Insurance Companies place
orders to purchase and redeem shares of each Fund based on, among other
things, the amount of premium payments to be invested and the amount of
surrender and transfer requests (as defined in the Prospectuses describing the
VA Contracts and VLI Policies issued by the Participating Insurance Companies)
to be effected on that day pursuant to VA Contracts and VLI Policies. Please
refer to the Prospectus provided by your selling agent for more detailed
information describing the separate accounts.

44 Variable Trust Prospectus
<PAGE>

Other Information
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Taxes
As described in the prospectuses of the Participating Insurance Companies,
individual holders of VA Contracts and VLI Policies may qualify for favorable
tax treatment. In order to qualify for such treatment, the Internal Revenue Code
of 1986, as amended (the "Code"), requires, among other things, the "separate
accounts" of the Participating Insurance Companies, which maintain and invest
net proceeds form the VA Contracts and VLI Policies, to be "adequately
diversified." See "Taxation of a Separate Account of a Participating Insurance
Company" in the SAI. Subject to certain conditions, for purposes of the
"adequate diversification" test, shares of the Fund will not be treated as
single investment. Rather, the separate account will be treated as the owner of
its proportionate share of each of the assets of the Fund. The Fund intends to
satisfy the relevant conditions of the Code and Treasury Regulations so that its
shares held in a separate account of a Participating Insurance Company, and the
VA Contracts and VLI Policies underlying such account, may qualify for favorable
tax treatment.

Pricing Fund Shares:

. As with all mutual fund investments, the price you pay to purchase shares or
the price you receive when you redeem shares is not determined until after a
request has been received in proper form.

. We determine the NAV of each Fund's shares each business day as of the close
of regular trading on the New York Stock Exchange ("NYSE"). We determine the
NAV by subtracting each Fund's liabilities from its total assets, and then
dividing the result by the total number of outstanding shares. Each other
Fund's assets are generally valued at current market prices. See the
Statement of Additional Information for further disclosure.

. The Funds are open for business on each day the NYSE is open for business.
NYSE holidays include New Year's Day, Martin Luther King, Jr. Day,
President's Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day. When any holiday falls on a weekend, the
NYSE typically is closed on the weekday immediately before or after such
holiday.

Variable Trust Prospectus 45
<PAGE>

Table of Predecessors
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Wells Fargo Variable Trust Predecessor Funds

Asset Allocation Fund LAT Asset Allocation Fund

Corporate Bond Fund None

Equity Income Fund Norwest Select Income Equity Fund

Equity Value Fund LAT Equity Value Fund

Growth Fund LAT Growth Fund

International Equity Fund None

Large Company Growth Fund None

Small Cap Growth Fund Norwest Select Small Company Stock Fund
</TABLE>

46 Variable Trust Prospectus
<PAGE>

Portfolio Managers
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N. Graham Allen, FCMA, Mr. Allen manages the Corporate Bond Fund. He joined
Wells Capital Management Incorporated ("Wells Capital") in 1998 and is the
firm's Chief Fixed Income Officer. His responsibilities include overseeing of
non-dollar fixed-income investments in major developed countries, emerging
markets, Yankee bonds and global high yield investments. Prior to joining Wells
Capital, he headed the international bond management team at Bradford & Marzec,
a Los Angeles-based investment adviser where he was responsible for managing
high yield securities investments from 1988 to 1998. Educated in England,
Mr. Allen is a Fellow Chartered Management Accountant (FCMA), a recognized
accounting body in the United Kingdom.

John W. (Jack) Burgess Mr. Burgess co-manages the Corporate Bond Fund. He joined
Wells Capital in 1998 as portfolio manager for high yield fixed-income
investments. He joined Wells Capital from Independent Financial Advisors, an
independent advisory practice in Los Angeles where he performed research and
analysis of fixed-income securities from 1995 to 1998. Prior to this position,
he was a portfolio manager at Aurora National Life Assurance Company of Santa
Monica, California, where he managed both equity and fixed-income investments
from 1991 to 1994. Mr. Burgess received his BA in English from Harvard College
and a Juris Doctorate degree from Harvard Law School. He is a Chartered
Financial Analyst candidate.

Gary J. Dunn, CFA, Mr. Dunn co-manages the Equity Income Fund, and managed the
predecessor portfolio since 1994. He joined Wells Capital in 1998 as Principal
for its Equity Income team, and holds dual positions at both Wells Capital and
Norwest Investment Management, Inc. ("NIM"), which intend to combine investment
advisory services under the Wells Capital name during late 1999/early
2000. Currently, Mr. Dunn is also the Director of Institutional Investments of
NIM. He has been associated with Norwest or its affiliates as a financial
analyst and portfolio manager since 1979. Mr. Dunn holds a BA in Economics from
Carroll College and is a Chartered Financial Analyst.

Variable Trust Prospectus 47
<PAGE>

Portfolio Managers
- --------------------------------------------------------------------------------

Daniel J. Kokoszka, CFA, Mr. Kokoszka co-manages the Corporate Bond
Fund. Mr. Kokoszka, as the Managing Director of Global Fixed-income for Wells
Capital, is responsible for non-dollar fixed-income investments in major
developed countries and U.S. dollar fixed-income investments (Yankee bonds) in
emerging markets. He joined the firm in 1998 from Bradford & Marzec, Inc., a Los
Angeles-based investment adviser, where he was a portfolio manager on the
international portfolio management team from 1993 to 1998. Mr. Kokoszka has a BS
in Astronomy from Villanova University, an MS in Mechanical Engineering from
George Washington University, and an MBA with emphasis in Finance, Corporate
Accounting and Applied Economics from the University of Rochester. He is a
Chartered Financial Analyst, a Certified Management Accountant and is Certified
in Financial Management.

David L. Roberts, CFA, Mr. Roberts manages the Equity Income Fund and managed
the predecessor portfolio since 1994, and also managed the predecessor's
predecessor collective investment trust since 1986. He is the Equity Income
Managing Director at Wells Capital. He joined the firm in 1998 and continues to
hold dual positions at both Wells Capital and Norwest Investment Management,
Inc. ("NIM"), which intend to combine investment advisory services under the
Wells Capital name during late 1999/early 2000. Mr. Roberts joined Norwest
Corporation in 1972 as a Securities Analyst. He became Assistant Vice President
Portfolio Manager in 1980, and was promoted to Vice President in 1982. He holds
a BA in Mathematics from Carroll College and he is a Chartered Financial
Analyst.

Katherine Schapiro, CFA, Ms. Schapiro manages the International Equity Fund, and
she is the Managing Director of the International Equity team for Wells Capital.
As team leader, she manages international equity funds and portfolios for the
firm's institutional clients. She joined Wells Capital in 1997 from Wells Fargo
Bank where she was a portfolio manager from 1992 to 1997. Ms. Schapiro's 17
years of investment experience included investment management from 1988 to 1992
at Newport Pacific Management, a San Francisco-based international investment
advisory firm. Ms. Schapiro obtained her BA in Spanish Literature from Stanford
University and is a Chartered Financial Analyst. She currently serves as
President of the Security Analysts of San Francisco.

48 Variable Trust Prospectus
<PAGE>

Scott M. Smith, CFA, Mr. Smith co-manages the Corporate Bond Fund. He joined
Wells Capital in 1997 and currently manages taxable fixed-income portfolios as a
member of the core-plus team. His emphasis is on the corporate and mortgage-
backed sectors. From 1988 to 1997, while at Wells Fargo Bank, he was a short
duration fixed-income specialist and trust administrator. He has 11 years of
experience in the investment industry. Mr. Smith received his BA in
International Relations/Business from the University of San Diego, and he is a
Chartered Financial Analyst.

Thomas Zeifang, CFA, Mr. Zeifang co-manages the Small Cap Growth Fund, and co-
managed the predecessor portfolio since early 1998. He joined Wells Capital in
1997 and is currently the Managing Director of the Small Cap Equity team. As
strategy leader, he is responsible for fundamental security analysis. Prior to
Wells Capital, he was a small cap equity portfolio manager from 1995 to 1997 at
Wells Fargo Bank. He was a Financial Analyst from 1993 to 1995 at Fleet
Investment Advisors, based in Rochester, NY. Mr. Zeifang holds a BS in Business
Administration from S. Bonaventure University and an MBA in Finance from the
University of Rochester's Simon School of Business. He is a Chartered Financial
Analyst.

Variable Trust Prospectus 49
<PAGE>

Glossary
- --------------------------------------------------------------------------------

We provide the following definitions to assist you in reading this
Prospectus. For a more complete understanding of these terms you should consult
your financial advisor.

American Depositary Receipts ("ADRs")
Receipts for non-U.S. company stocks. The stocks underlying ADRs are typically
held in bank vaults. The ADR's owner is entitled to any capital gains or
dividends. ADRs are one way of owning an equity interest in foreign companies.

Asset-Backed Securities
Securities consisting of an undivided fractional interest in pools of consumer
loans, such as car loans or credit card debt, or receivables held in trust.

Below Investment-Grade
Securities rated BBB or lower by S&P or Baa or lower by Moody's Investor
Services, or that may be unrated securities or securities considered to be "high
risk."

Business Day
Any day the New York Stock Exchange is open is a business day for the Funds.

Capital Appreciation, Capital Growth
The increase in the value of a security. See also "total return."

Capital Structure
Refers to how a company has raised money to operate. Can include, for example,
borrowing or selling stock.

Collateralized Mortgage Obligations ("CMOs")
Securities collateralized by portfolios of mortgage pass-through securities.
CMOs are structured into multiple classes, and are paid according to class
maturity, shortest maturities paid first.

Convertible Debt Securities
Bonds or notes that are exchangeable for equity securities at a set price on a
set date or at the election of the holder.

Current Income
Earnings in the form of dividends or interest as opposed to capital growth. See
also "total return."

Derivatives
Securities whose values are derived in part from the value of another security
or index. An example is a stock option.

50 Variable Trust Prospectus
<PAGE>

Distributions
Dividends and/or capital gains paid by a Fund on its shares.

Dollar-Denominated
Securities issued by foreign banks, companies or governments in U.S. dollars.

Duration
A measure of a security's or portfolio's sensitivity to changes in interest
rates. Duration is usually expressed in years, with longer durations typically
more sensitive to interest rate changes than shorter durations.

FHLMC
FHLMC securities are commonly known as "Freddie Mac" and are issued by the
Federal Home Loan Mortgage Corporation.

FNMA
FNMA securities are commonly known as "Fannie Maes" and are issued by the
Federal National Mortgage Association.

GNMA
GNMA securities are commonly known as "Ginnie Maes" and are issued by the
Government National Mortgage Association.

Hedge
Strategy used to offset investment risk. A perfect hedge is one eliminating the
possibility of future gain or loss.

Illiquid Security
A security that cannot be readily sold at the desired time, or cannot be readily
sold without negatively affecting its fair price.

Initial Public Offering
The first time a company's stock is offered for sale to the public.

Variable Trust Prospectus 51
<PAGE>

Glossary
- --------------------------------------------------------------------------------

Liquidity
The ability to readily sell a security at a fair price.

Money Market Instruments
High-quality short-term instruments meeting the requirements of Rule 2a-7 of the
1940 Act, such as bankers' acceptances, commercial paper, repurchase agreements
and government obligations. In a money market fund, average portfolio maturity
does not exceed 90 days, and all investments have maturities of 397 days or less
at the time of purchase.

Moody's
A nationally recognized ratings organization.

Nationally Recognized Ratings Organization ("NRRO")
A company that examines the ability of a bond issuer to meet its obligations and
which rates the bonds accordingly.

Options
An option is the right to buy or sell a security based on an agreed upon price
for at a specified time. For example, an option may give the holder of a stock
the right to sell the stock to another party, allowing the seller to profit if
the price has fallen below the agreed price. Options may also be based on the
movement of an index such as the S&P 500.

Preservation of Capital
The attempt by a fund's manager to defend against drops in the net asset value
of fund shares in order to preserve the initial investment.

Repurchase Agreement
An agreement between a buyer and seller of a security in which the seller agrees
to repurchase the security at an agreed upon price and time.

Russell 1000 Index
An index comprised of the 1000 largest firms listed on the Russell 3000
Index. The Russell 3000 Index is a listing of 3000 corporations by the Frank
Russell Company that is intended to be representative of the U.S. economy. The
Russell 1000 is considered a "large cap" index.

Russell 2000 Index
An index comprised of the 2000 smallest firms listed on the Russell 3000
Index. The Russell 3000 Index is a listing of 3000 corporations by the Frank
Russell Company that is intended to be representative of the U.S. economy. The
Russell 2000 is considered a "small cap" index.