<PAGE>
WELLS
FARGO
FUNDS
WELLS FARGO VARIABLE
TRUST FUNDS
PROSPECTUS
Equity Income Fund
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.
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.
MAY 1 2000
<PAGE>
[Intentionally Left Blank]
<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 9
-------------------------------------------------------------------------------------------
The Fund Equity Income 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 20
Turn to this section for
information on how to buy
and sell Fund shares.
-------------------------------------------------------------------------------------------
Reference Other Information 21
Look here for additional Table of Predecessors 22
information and term Portfolio Managers 23
definitions. Glossary 24
</TABLE>
<PAGE>
Variable Trust Fund Overview
--------------------------------------------------------------------------------
See the Fund description in this Prospectus for further details.
Words appearing in italicized print and highlighted in color are defined in the
Glossary.
<TABLE>
<CAPTION>
FUND OBJECTIVE
<S> <C>
Equity Income Fund Seeks long-term capital appreciation and above-average dividend income.
</TABLE>
4 Variable Trust Prospectus
<PAGE>
________________________________________________________________________________
PRINCIPAL STRATEGY
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.
Variable Trust Prospectus 5
<PAGE>
Summary of Important Risks
--------------------------------------------------------------------------------
This section summarizes important risks that are common to the Fund described in
this Prospectus, and important risks that relate specifically to this 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 Fund's 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 FUND
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 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 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 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
Stocks selected for their high dividend income may be
more sensitive to interest rate changes than other
stocks. This Fund is primarily subject to the equity
Equity Income Fund securities risks described in the Common Risks section
above.
Variable Trust Prospectus 7
<PAGE>
Performance History
--------------------------------------------------------------------------------
The information on the following pages shows you how the Fund has performed
and illustrates the variability of the Fund's returns over time. The 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 they
did, returns would be lower.
Equity Income Fund Calendar Year Returns (%)
<TABLE>
<S> <C> <C> <C>
30 26.90
25
20
18.42
15
10
7.90
5
0
'97 '98 '99
</TABLE>
Best Qtr.: Q4 `98 . 15.63% Worst Qtr.: Q3 `98 . -9.73%
<TABLE>
<CAPTION>
Average annual total return (%) Since
for the period ended 12/31/99 1 year Inception
<S> <C> <C>
WFVT Equity Income Fund (Incept. 5/6/96) 7.90 17.14
S&P 500 Index/1/ 21.04 26.75
</TABLE>
/1/ S&P 500 is a registered trademark of Standard & Poor's.
8 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 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.
Variable Trust Prospectus 9
<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 December 31, 1999, this median
was approximately $4 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.
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). Total returns represent
the rate that you would have earned (or lost) on an investment in the fund
(assuming reinvestment of all dividends and distributions). 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 6, 1996
-----------------------------------------------
Dec. 31, 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) 0.17 0.18 0.14 0.08
Net realized and unrealized gain (loss)
on investments 1.09 2.34 2.79 0.92
Total from investment operations 1.26 2.52 2.93 1.00
Less distributions:
Dividends from net investment income (0.17) (0.18) (0.14) (0.08)
Distributions from net realized gain 0.00 (0.02) (0.02) (0.01)
Total from distributions (0.17) (0.20) (0.16) (0.09)
Net asset value, end of period $17.09 $16.00 $13.68 $10.91
Total return (not annualized)/1/ 7.90% 18.42% 26.90% 9.95%
Ratios/supplemental data:
Net assets, end of period (000s) $127,793 $86,069 $39,888 $9,415
Ratios to average net assets (annualized):
Ratio of expenses to average net assets 0.86% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to
average net assets 1.16% 1.47% 1.85% 2.31%
Portfolio turnover 5% 1% 3% 4%
Ratio of expenses to average net
assets prior to waived fees and
reimbursed expenses (annualized) 1.12% 1.10% 1.34% 2.51%
</TABLE>
/1/ Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
period shown. Total return figures do not reflect charges pursuant to the
terms of the variable life insurance policies and variable annuity
contracts funded by separate accounts that invest in the Fund's shares.
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.
. 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.
12 Variable Trust Prospectus
<PAGE>
--------------------------------------------------------------------------------
. 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 "Baa" 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.
Variable Trust Prospectus 13
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
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.
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 Statement 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 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 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.
<TABLE>
<CAPTION>
INVESTMENT PRACTICE RISK INCOME
<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 Interest Rate and .
Instruments with interest rates that are adjusted either Credit Risk
on a schedule or when an index or benchmark changes.
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
High Yield Securities
Debt securities of lower quality, also known as "junk Interest Rate and .
bonds," that produce generally higher rates of return. Credit Risk
These securities tend to be more sensitive to economic
conditions and during sustained periods of rising
interest rates, may experience increased interest and/or
principal defaults.
</TABLE>
Variable Trust Prospectus 15
<PAGE>
General Investment Risks
--------------------------------------------------------------------------------
<TABLE>
<CAPTION> EQUITY
INCOME
INVESTMENT PRACTICE RISK
<S> <C> <C>
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
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 Credit, Information .
cash payment depending on the security's price or the and Liquidity Risk
performance of an index or benchmark. Types of options
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 Liquidity Risk .
resold in accordance with Rule 144A of the Securities Act
of 1933.
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.
</TABLE>
16 Variable Trust Prospectus
<PAGE>
<TABLE>
<CAPTION> EQUITY
INCOME
INVESTMENT PRACTICE RISK
<S> <C> <C>
Small Company Securities
The risk that investments in small companies may be Market, Experience .
more volatile than investments in larger companies. and Liquidity Risk
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 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
<S> <C> <C>
Supervises the Fund's activities
INVESTMENT ADVISOR CUSTODIAN
Wells Fargo Bank, N.A. Wells Fargo 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-ADVISORS
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
Markets the Fund Manages the Maintains records
and distributes Fund's 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>
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 December 31, 1999, WCM provided advisory services for over
$71 billion in assets.
The Sub-Advisors are compensated by the Investment Advisor from the fees
received by the Advisor as listed above.
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 0.25%
of its annual net assets.
Variable Trust Prospectus 19
<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.
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.
20 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 Equity Income Fund declares and pays any dividends quarterly. The Fund
makes 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
The following 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 Funds and their
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.
As described in the prospectuses of the Participating Insurance Companies,
individual holders of VA Contracts and VLI Policies may qualify for
favorable tax treatment. As long as your VA Contract or VLI Policy maintains
favorable tax treatment, you will only be taxed on your investment in a fund
through such VA Contract or VLI Policy. In order to qualify for such
treatment, among other things, the "separate accounts" of the Participating
Insurance Companies, which maintain and invest net proceeds from the VA
Contracts and VLI Policies, must be "adequately diversified." Each Fund
intends to be operated in a manner so that a separate account investing in
Fund Shares on behalf of a holder of a VA Contract or VLI Policy will be
"adequately diversified." See "Taxation of a Separate Account of a
Participating Insurance Company" in the SAI.
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 21
<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 Norwest Select fund, as
indicated in the following Table. 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 Income Fund Norwest Select Income Equity Fund
22 Variable Trust Prospectus
<PAGE>
Portfolio Managers
--------------------------------------------------------------------------------
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.
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.
Variable Trust Prospectus 23
<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 BB 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.
24 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 25
<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.
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.
26 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 27
<PAGE>
YOU MAY WISH TO REVIEW THE FOLLOWING DOCUMENTS:
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.
ANNUAL/SEMI-ANNUAL REPORTS
provide certain financial and other important information, including a
discussion of the market conditions and investment strategies that
significantly affected Fund performance, for the most recent reporting
period.
THESE DOCUMENTS ARE AVAILABLE FREE OF CHARGE:
Call: 1-800-222-8222, option 5;
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
