<PAGE>
- ------------------
SEMI-ANNUAL
- ------------------
REPORT
- ------------------
Treasury
Money Market
Mutual Fund
CLASS E
SEPTEMBER 30, 1997
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER Q & A
Treasury Money Market Mutual Fund -- Class E 3
PORTFOLIOS OF INVESTMENTS
Treasury Money Market Mutual Fund 5
STAGECOACH TREASURY MONEY MARKET MUTUAL FUND
Statement of Assets and Liabilities 7
Statement of Operations 8
Statements of Changes in Net Assets 9
Financial Highlights 10
Notes to Financial Statements 14
LIST OF ABBREVIATIONS 20
STAGECOACH FUNDS:
-------------------------------------------------------------------------
- - ARE NOT FDIC INSURED
- - ARE NOT GUARANTEED BY WELLS FARGO BANK [NO FDIC]
- - ARE NOT DEPOSITS OR OBLIGATIONS OF WELLS FARGO
BANK
- - INVOLVE INVESTMENT RISK, INCLUDING POSSIBLE LOSS
OF PRINCIPAL
- ---------------------
i
<PAGE>
LETTER TO SHAREHOLDERS
- ------------------
TO OUR SHAREHOLDERS:
We are pleased to present you with the Stagecoach Semi-Annual Report for the
six-month period ended September 30, 1997.
On October 27, shortly after the close of the reporting period for this
Semi-Annual Report, the stock market suffered its worst one-day drop since 1987.
As measured by the Dow Jones Industrial Average, the market lost 7.2% of its
value.
By November 5, however, the Dow had recovered, at least temporarily, all that it
had lost during the "crash."
What are the lessons shareholders can glean from these events? The only
certainty is that there are no certainties when it comes to investing. Dramatic
market movements can occur at any time for a variety of reasons -- and the
effects can last for years or be corrected in just a few days. Perhaps the most
significant lessons learned this October are the ones we have all heard before:
- - HAVE A SOLID, LONG-TERM STRATEGIC PLAN. What are your goals? How long before
you will need to spend the money you have invested? How much risk are you
willing to tolerate? Solid planning with the long-term in mind will help you
keep your focus during periods of short-term volatility.
- - IF LONG-TERM GROWTH IS YOUR GOAL, STOCKS ARE HISTORICALLY THE BEST INVESTMENT.
While bonds or cash may have a greater return than stocks during certain
periods, over the long term stocks have outperformed every other investment
class.
- - USE ASSET ALLOCATION TO LIMIT VOLATILITY. The extent to which you should
allocate your assets to less volatile classes depends on your individual
circumstances, including such factors as how close you are to your investment
horizon and to what extent you need to preserve capital. Seek the advice of an
investment professional to help you determine your asset allocation.
During the six-month reporting period ended September 30, 1997 covered by this
report, the equity market continued to post the type of strong gains we have
seen over the last few years, with the S&P 500 showing a 26.26% total return.
The bond market, as measured by the Lehman Brothers Long Government Bond Index,
did better than it has in the recent past with a strong 11.67% return. These
returns should help provide a context for the downturn of October 27; there is
no guarantee, of course, that such robust returns will continue.
The following pages contain discussions of the individual Funds, including
specific commentary on what affected the returns and how the portfolio managers
tried to capture value or prepare for the future.
---------------------
1
<PAGE>
LETTER TO SHAREHOLDERS
There are expected to be some changes during the last quarter of 1997 for the
Stagecoach Funds. Shareholders in the Overland Express Family of Funds have been
asked to approve a merger with Stagecoach. Both Fund groups are advised by Wells
Fargo Bank. If approved by Overland Shareholders, the merger is expected to
occur on December 12, 1997. The merger will allow us to eliminate certain
administrative and management costs, and will result in a single Fund family
with over 30 Funds and approximately $20 billion in assets. In addition, several
Funds are changing their names. The name changes are detailed within the
discussion for the affected Funds.
Thank you for your continued investment with the Stagecoach Funds.
STAGECOACH FUNDS
NOVEMBER 1997
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 WIDELY HELD COMMON STOCKS
REPRESENTING, AMONG OTHERS, INDUSTRIAL, FINANCIAL, UTILITY AND TRANSPORTATION
COMPANIES LISTED OR TRADED ON NATIONAL EXCHANGES OR OVER-THE-COUNTER MARKETS.
THE LEHMAN BROTHERS LONG GOVERNMENT BOND INDEX IS AN UNMANAGED INDEX COMPOSED OF
U.S. GOVERNMENT BONDS WITH 20-YEAR OR LONGER MATURITIES.
- ---------------------
2
<PAGE>
STAGECOACH TREASURY MONEY MARKET MUTUAL FUND -- CLASS E
- --------------------
INVESTMENT ADVISER Q&A
WHAT WAS THE FUND'S SEVEN-DAY YIELD AS OF SEPTEMBER 30, 1997?
The seven-day yield for the Fund was 4.88%. Past performance is not predictive
of future results.
HOW DID THE FEDERAL RESERVE'S ACTION IN RAISING INTEREST RATES, AND THE
SUBSEQUENT SPECULATION ABOUT ADDITIONAL INCREASES, AFFECT THE FUND THROUGHOUT
THE PERIOD (APRIL THROUGH SEPTEMBER)?
Short-term interest rates, such as the federal funds target rate set by the
Federal Reserve, have a direct impact on money market yields. The increase in
yields during the reporting period following the Fed's actions was small,
however, and subsequent economic data indicated a continuation of moderate
economic growth and subdued inflationary pressures. Apparently in response to
this economic data, the Fed did not raise interest rates again during the
period. Within the money market sector, yield spreads were small, allowing the
Fund to increase credit quality without sacrificing too much in yield.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Currently, it appears that, at least through November, the Fed will not raise
the target rate. However, there remains the possibility of another small
increase later this year or early in 1998.
WHAT IS THE BENEFIT TO INVESTORS IN A TREASURY OR GOVERNMENT MONEY MARKET FUND?
The principal benefit is high credit quality. Treasury securities are backed by
the full faith and credit of the United States Government. Securities issued by
other sections of the Federal government, its agencies and instrumentalities are
backed by the issuing agency. Because of this high credit quality, these
securities often have lower yields than, for example, commercial paper, but many
investors accept this trade off. The Funds invest in repurchase agreements
collateralized by government paper. This is a way to increase yields without
sacrificing too much in credit quality.
---------------------
3
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
- ---------------------
4
<PAGE>
TREASURY MONEY MARKET MUTUAL FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 54.33%
U.S. TREASURY BILLS - 30.26%
$279,070,000 U.S. Treasury Bills 3.04 %+ 10/02/97 $ 279,042,500
175,000,000 U.S. Treasury Bills 4.24 + 10/09/97 174,841,778
35,000,000 U.S. Treasury Bills 4.44 + 10/16/97 34,936,563
--------------
$ 488,820,841
U.S. TREASURY NOTES - 24.07%
$20,000,000 U.S. Treasury Notes 4.75 % 08/31/98 $19,844,216.00
20,000,000 U.S. Treasury Notes 5.13 04/30/98 19,879,531
25,000,000 U.S. Treasury Notes 5.13 06/30/98 24,915,346
93,800,000 U.S. Treasury Notes 6.13 05/15/98 94,015,163
39,520,000 U.S. Treasury Notes 6.13 08/31/98 39,642,909
109,850,000 U.S. Treasury Notes 7.88 01/15/98 110,482,697
19,750,000 U.S. Treasury Notes 7.88 04/15/98 19,933,492
60,000,000 U.S. Treasury Notes 8.75 10/15/97 60,071,693
--------------
$ 388,785,047
TOTAL U.S. TREASURY SECURITIES $ 877,605,888
(Cost $877,605,888)
</TABLE>
---------------------
5
<PAGE>
TREASURY MONEY MARKET MUTUAL FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 45.56%
$189,912,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.15 % 10/01/97 $ 189,912,000
176,522,000 HSBC Securities Inc Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.00 10/01/97 176,522,000
305,037,500 JP Morgan Securities Inc Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.00 10/01/97 305,037,500
64,399,000 Morgan Stanley & Co Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.00 10/01/97 64,399,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 735,870,500
(Cost $735,870,500)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $1,613,476,388)* (Note 1) 99.89% $1,613,476,388
Other Assets and Liabilities, Net 0.11 1,766,222
------ --------------
TOTAL NET ASSETS 100.00% $1,615,242,610
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
- ------------------------
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TREASURY
MONEY MARKET
MUTUAL FUND
<S> <C>
- -----------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below)
(includes repurchase agreements of
$735,780,500) $1,613,476,388
Cash 2,734
Receivables:
Interest 8,310,808
Organization expenses, net of
amortization 75,611
Prepaid expenses 187,130
TOTAL ASSETS 1,622,052,671
LIABILITIES
Payables:
Distribution to shareholders 6,118,157
Due to sponsor and distributor (Note
2) 82,326
Due to WFB (Note 2) 424,452
Other 185,126
TOTAL LIABILITIES 6,810,061
TOTAL NET ASSETS $1,615,242,610
NET ASSETS CONSIST OF:
Paid-in capital $1,615,170,316
Undistributed net realized gain on
investments 72,294
TOTAL NET ASSETS $1,615,242,610
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net assets - Class A $ 51,762,421
Shares outstanding - Class A 51,781,468
Net asset value and offering price per
share - Class A $ 1.00
Net assets - Class E $ 753,349,174
Shares outstanding - Class E 753,315,394
Net asset value and offering price per
share - Class E $ 1.00
Net assets - Institutional Class $ 485,722,693
Shares outstanding - Institutional Class 485,831,557
Net asset value and offering price per
share - Institutional Class $ 1.00
Net assets - Service Class $ 324,408,322
Shares outstanding - Service Class 324,406,628
Net asset value and offering price per
share - Service Class $ 1.00
INVESTMENT AT COST $1,613,476,388
- -----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
7
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED) - FOR THE SIX MONTHS ENDED SEPT. 30, 1997
<TABLE>
<CAPTION>
TREASURY
MONEY
MARKET
MUTUAL FUND
<S> <C>
- --------------------------------------------------------
INVESTMENT INCOME
Interest $46,348,440
TOTAL INVESTMENT INCOME 46,348,440
EXPENSES (NOTE 2)
Advisory fees 2,116,628
Administration fees 507,991
Custody fees 141,391
Shareholder servicing fees 1,452,193
Portfolio accounting fees 212,164
Transfer agency fees 265,639
Distribution fees 739,048
Amortization of organization expenses 105,237
Legal and audit fees 21,543
Registration fees 149,727
Directors' fees 2,352
Shareholder reports 22,788
Other 9,681
TOTAL EXPENSES 5,746,382
Less:
Waived fees and reimbursed expenses (1,642,401)
Net Expenses 4,103,981
NET INVESTMENT INCOME 42,244,459
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on sale of
investments 71,277
NET GAIN ON INVESTMENTS 71,277
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $42,315,736
- --------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TREASURY MONEY MARKET MUTUAL FUND
-------------------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1997 MARCH 31, 1997 SEPT. 30, 1996
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 42,244,459 $ 45,105,801 $ 97,930,686
Net realized gain on sale of
investments 71,277 1,017 39,272
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 42,315,736 45,106,818 97,969,958
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,598,747) (1,327,300) (2,763,079)
CLASS E (18,049,807) (905,615) 0
INSTITUTIONAL CLASS (12,503,728) (12,730,969) (62,003,165)
SERVICE CLASS (10,092,177) (30,141,918) (33,164,442)
In excess of net investment income
CLASS A 0 0 (293)
CLASS E 0 0 0
INSTITUTIONAL CLASS 0 0 (14,701)
SERVICE CLASS 0 0 (4,695)
From net realized gain on sale of
investments
CLASS A 0 (1,075) 0
CLASS E 0 0 0
INSTITUTIONAL CLASS 0 (12,378) 0
SERVICE CLASS 0 (25,819) 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 81,451,657 101,803,141 265,329,368
Reinvestment of dividends - Class A 204,085 117,496 303,969
Cost of shares redeemed - Class A (96,382,019) (89,139,342) (211,928,115)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (14,726,277) 12,781,295 53,705,222
Proceeds from shares sold - Class E 1,054,494,805 892,833,080 0
Reinvestment of dividends - Class E 0 0 0
Cost of shares redeemed - Class E (1,121,836,438) (72,176,053) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E (67,341,633) 820,657,027 0
Proceeds from shares sold -
Institutional Class 824,968,167 998,327,768 4,920,884,222
Reinvestment of dividends -
Institutional Class 1,047,264 978,929 1,018,863
Cost of shares redeemed -
Institutional Class (789,959,192) (1,090,336,130) (4,417,665,197)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 36,056,239 (91,029,433) 504,237,888
Proceeds from shares sold - Service
Class 1,522,169,783 2,043,006,993 3,893,787,080
Reinvestment of dividends - Service
Class 657,529 348,407 227,942
Cost of shares redeemed - Service
Class (1,681,835,818) (2,900,254,375) (3,555,407,931)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS (159,008,506) (856,898,975) 338,607,091
INCREASE (DECREASE) IN NET ASSETS (204,948,900) (114,528,342) 896,569,784
NET ASSETS:
Beginning net assets 1,820,191,508 1,934,719,850 1,038,150,066
ENDING NET ASSETS $ 1,615,242,608 $ 1,820,191,508 $ 1,934,719,850
- ----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
9
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
MUTUAL FUND (1)
----------------------------------
CLASS A
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (2) 1996 (3)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.02 0.05
Net realized and unrealized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.02) (0.05)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.02) (0.05)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.50% 2.42% 4.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $51,762 $66,486 $53,706
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.55% 0.55% 0.55%
Ratio of net investment income to average net assets 4.95% 4.81% 4.96%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.89% 0.75% 0.67%
Ratio of net investment income to average net assets
prior to waived fees and reimbursed expenses 4.61% 4.61% 4.84%
- --------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE CLASS E SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(5) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
The accompanying notes are an integral part of these financial statements.
- ---------------------
10
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
MUTUAL FUND (1) (CONT.)
----------------------------------------------------------------------
CLASS E INSTITUTIONAL CLASS
---------------------- ----------------------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30,
1997 1997 (4) 1997 1997 (2) 1996 1995 (5)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.00 0.03 0.03 0.05 0.01
Net realized and
unrealized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.00 0.03 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) 0.00 (0.03) (0.03) (0.05) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) 0.00 (0.03) (0.03) (0.05) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.45% 0.11% 2.65% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $753,349 $820,657 $485,723 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.82% 4.86% 5.22% 5.11% 5.21% 5.42%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.86% 0.88% 0.41% 0.39% 0.59% 0.69%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.61% 4.63% 5.06% 4.97% 4.87% 4.99%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE CLASS E SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(5) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
The accompanying notes are an integral part of these financial statements.
---------------------
11
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY
MARKET
MUTUAL FUND (1)
(CONT.)
-------------------
SERVICE CLASS
-------------------
(UNAUDITED)
SIX MONTHS
ENDED
SEPT. 30,
1997
<S> <C>
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
-------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03
Net realized and unrealized gain (loss) on investments 0.00
-------------------
TOTAL FROM INVESTMENT OPERATIONS 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03)
Distributions from net realized gain 0.00
-------------------
TOTAL FROM DISTRIBUTIONS (0.03)
-------------------
NET ASSET VALUE, END OF PERIOD $1.00
-------------------
-------------------
TOTAL RETURN (NOT ANNUALIZED) 2.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $324,408
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45%
Ratio of net investment income to average net assets 5.03%
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.64%
Ratio of net investment income to average net assets prior to
waived fees and reimbursed expenses 4.84%
- ---------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
- ---------------------
12
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
MUTUAL FUND (1) (CONT.)
----------------------------------------------------------------------
SERVICE CLASS (CONT.)
----------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31,
1997 (2) 1996 1995 1994 (3) 1994 1993
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.05 0.05 0.02 0.03 0.03
Net realized and
unrealized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.02 0.03 0.03
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.02) (0.03) (0.03)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.02) (0.03) (0.03)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.47% 5.03% 5.42% 3.75%** 2.81% 3.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $483,401 $1,340,325 $1,001,707 $690,630 $654,950 $614,237
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.45% 0.42% 0.43% 0.43% 0.43%
Ratio of net investment
income to average net
assets 4.91% 4.98% 5.32% 3.72% 2.77% 3.04%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.61% 0.60% 0.66% 0.90% 0.90% 0.91%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.75% 4.83% 5.08% 3.25% 2.30% 2.56%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
---------------------
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and currently offers twenty-seven separate series. These financial
statements represent the Treasury Money Market Mutual Fund (the "Fund"), a
diversified series of the Company.
At a special shareholders meeting on July 16, 1996, the Shareholders of Pacifica
Funds Trust ("Pacifica") approved a plan of reorganization providing for the
transfer of the assets and liabilities of each Pacifica portfolio to a
corresponding fund of the Company in exchange for shares of designated classes
of the corresponding Stagecoach Fund. As a result of this reorganization,
effective September 6, 1996, the Stagecoach Treasury Money Market Mutual Fund
was established to acquire all of the assets and assume all of the liabilities
of the Pacifica Treasury Money Market Fund (the "Predecessor Fund"). This
acquisition was accomplished in a tax-free exchange for shares of the Stagecoach
Treasury Money Market Mutual Fund. All performance and financial data for the
Treasury Money Market Mutual Fund for periods prior to September 6, 1996 refers
to the Predecessor Fund.
The Fund offers Class A, Class E, Institutional Class, and Service Class shares.
The four classes of shares differ principally in the applicable distribution,
shareholder servicing and transfer agency fees. Shareholders of each class also
bear certain expenses that pertain to that particular class. All shareholders
bear the common expenses of the Fund and earn income from the portfolio pro rata
based on the average daily net assets of each class, without distinction between
share classes. Dividends are determined separately for each class based on
income and expenses allocable to each class. Gains are allocated to each class
pro rata based upon net assets of each class on the date of distribution. No
class has preferential dividend rights. Differences in per share dividend rates
generally result from the relative weightings of pro rata income and gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing and transfer agency fees.
The following significant accounting policies are consistently followed by the
Company in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles ("GAAP") for investment
companies. The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent
- ---------------------
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. These estimates
and assumptions should not be considered an indication of actual or expected
figures; actual results may differ.
INVESTMENT POLICY AND SECURITY VALUATION
The Fund invests only in securities with remaining maturities not exceeding 397
days (thirteen months). Certain floating-and variable-rate instruments in the
portfolio may have maturities in excess of 397 days, but carry a demand feature
that permits the holder to tender the instruments back to the issuer at par
value prior to maturity.
The Fund uses the amortized cost method to value its portfolio securities. The
amortized cost method involves valuing a security at its cost, plus accretion of
discount or minus amortization of premium over the period until maturity, which
approximates market value. The Fund seeks to maintain a constant net asset value
of $1.00 per share, although there is no assurance that it will be able to do
so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded no later than one business day after trade
date. Interest income is accrued daily. Realized gains or losses are reported on
the basis of identified cost of securities delivered. Bond discounts are
accreted and premiums are amortized as required by the Internal Revenue Code of
1986, as amended (the "Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in the Fund's Portfolio of
Investments. The Fund may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a
tri-party agreement. It is the custodian's responsibility to value collateral
daily and to take action to obtain additional collateral as necessary to
maintain market value equal to or greater than the resale price. The repurchase
agreements held in the Fund are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared daily
and distributed monthly. Any distributions to shareholders from net realized
capital gains are declared and distributed annually.
---------------------
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. It is
the policy of each Fund of the Company to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at December 31, 1996.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund. The differences between the income or gains distributed on a book
versus tax basis are shown as excess distributions of net investment income and
net realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. The amount of distributions from net investment income
and net realized capital gains are determined in accordance with federal income
tax regulations, which may differ from GAAP. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
ORGANIZATION EXPENSES
The Fund has been charged for expenses incurred in connection with the
organization and initial registration of the Fund and/or classes of shares.
Certain of these expenses are being amortized by the Fund on a straight-line
basis over 60 months from the date the Fund and/or classes commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into an advisory contract on behalf of the Fund with
WFB. Pursuant to the contract, WFB has agreed to provide the Fund with daily
portfolio management. Under the contract, WFB is entitled to be paid a monthly
advisory fee at an annual rate of 0.25% of the Fund's average daily net assets.
The Company has entered into a contract on behalf of the Fund with WFB, whereby
WFB is responsible for providing custody and portfolio accounting services for
the Fund. Pursuant to the contract, WFB is entitled to certain transaction
charges plus an annual fee for custody services at an annual rate of 0.0167% of
the average daily net assets of the Fund. For portfolio accounting services, WFB
is entitled to a monthly base fee of $2,000 plus an annual fee of 0.07% of the
first $50 million of the Fund's average daily net assets, 0.045% of the next $50
million, and 0.02% of the Fund's average daily net assets in excess of $100
million.
- ---------------------
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
The Company has entered into a contract on behalf of the Fund with WFB, whereby
WFB provides transfer agency services for the Fund. Under the transfer agency
contract, WFB is entitled to receive transfer agency fees at an annual rate of
0.10% of the average daily net assets of the Class A, Class E and Service Class
shares of the Fund, and 0.02% of the average daily net assets of the
Institutional Class shares of the Fund. Prior to September 1, 1997, WFB was
entitled to receive transfer agency fees at an annual rate of 0.02% of the
average daily net assets of the Class E and Service Class shares of the Fund.
Transfer agency fees paid on behalf of the Fund for the six months ended
September 30, 1997 were as follows:
<TABLE>
<CAPTION>
TRANSFER TRANSFER
TRANSFER TRANSFER AGENCY FEES AGENCY FEES
AGENCY FEES AGENCY FEES INSTITUTIONAL SERVICE
FUND CLASS A CLASS E CLASS CLASS
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Treasury Money Market Mutual Fund $32,338 $122,995 $47,696 $62,610
</TABLE>
The Company has entered into a contract on behalf of the Fund with WFB, whereby
WFB has agreed to provide shareholder services for the Fund. Pursuant to the
contract, WFB is entitled to receive shareholder servicing fees at an annual
rate of 0.30% of the average daily net assets of the Class A and Class E shares
of the Fund and 0.20% of the average daily net assets of the Service Class
shares of the Fund. Prior to September 1, 1997, WFB was entitled to receive
shareholder servicing fees at an annual rate of 0.25% of the average daily net
assets of the Class A and Class E shares of the Fund.
Shareholder servicing fees paid on behalf of the Fund for the six months ended
September 30, 1997 were as follows:
<TABLE>
<CAPTION>
SHAREHOLDER
SHAREHOLDER SHAREHOLDER SERVICING
SERVICING SERVICING FEES
FEES FEES SERVICE
FUND CLASS A CLASS E CLASS
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Treasury Money Market Mutual Fund $83,251 $966,075 $402,867
</TABLE>
The Company has entered into an administration agreement on behalf of the Fund
whereby WFB as administrator and Stephens Inc. ("Stephens") as co-administrator
provide the Fund with administration services. For these services, WFB and
Stephens are entitled to receive monthly fees at the annual rates of 0.04% and
0.02%, respectively, of the Fund's average daily net assets.
The Company has adopted separate Distribution Plans for Class A and Class E
shares of the Fund pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan").
The Plan for the Class A shares of the Fund provides that the Fund may pay to
Stephens up to 0.05% of the average daily net assets attributable to the Class A
---------------------
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
shares as compensation for distribution-related services or as reimbursement for
distribution-related expenses.
Under the Plan for Class E shares of the Fund, the Fund may pay, as compensation
for distribution-related services or as reimbursement for distribution-related
expenses, a monthly fee at an annual rate of up to 0.10% of the average daily
net assets attributable to its Class E shares. Prior to September 1, 1997, the
Fund paid, for distribution-related services, a monthly fee at an annual rate of
up to 0.25% of the average daily net assets attributable to its Class E shares.
The Fund may participate in joint distribution activities with other Funds, in
which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
Distribution fees paid on behalf of the Fund for the six months ended September
30, 1997 were as follows:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
FEES FEES
FUND CLASS A CLASS E
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Treasury Money Market Mutual Fund $16,169 $722,879
</TABLE>
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the six months ended September 30, 1997 was waived by WFB. Waived
fees and reimbursed expenses continue at the discretion of WFB and Stephens. WFB
and Stephens agreed to waive or reimburse all or a portion of their respective
fees charged to, or expenses paid by, the Fund to ensure that the total Fund
operating expenses did not exceed, on an annual basis, 0.55%, 0.25% and 0.45% of
the average daily net assets of the Class A, Institutional Class, and Service
Class shares, respectively, of the Fund through August 31, 1997.
Certain officers and one director of the Company are also officers of Stephens.
As of September 30, 1997, Stephens owned 87 shares of the Fund.
3. CAPITAL SHARE TRANSACTIONS
As of September 30, 1997, there were over 106 billion shares of $0.001 par value
capital stock authorized by the Company. As of September 30, 1997, the Fund was
authorized to issue 5 billion of each class of shares of $0.001 par value
capital stock.
- ---------------------
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Capital share transactions for the Fund were as follows:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET MUTUAL FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1997 MARCH 31, 1997 SEPT. 30, 1996
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 81,451,657 101,803,385 265,329,368
Shares issued in reinvestment of dividends
-- Class A 204,085 117,496 303,969
Shares redeemed -- Class A (96,382,019) (89,139,342) (211,928,115)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS A (14,726,277) 12,781,539 53,705,222
Shares sold -- Class E 1,054,494,805 892,833,080 N/A
Shares issued in reinvestment of dividends
-- Class E 0 0 N/A
Shares redeemed -- Class E (1,121,836,438) (72,176,053) N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS E (67,341,633) 820,657,027 N/A
Shares sold -- Institutional Class 824,968,167 998,327,613 4,920,884,222
Shares issued in reinvestment of dividends
-- Institutional Class 1,047,264 978,929 1,018,863
Shares redeemed -- Institutional Class (789,959,192) (1,090,336,130) (4,417,665,197)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- INSTITUTIONAL CLASS 36,056,239 (91,029,588) 504,237,888
Shares sold -- Service Class 1,522,169,783 2,043,006,904 3,893,787,080
Shares issued in reinvestment of dividends
-- Service Class 657,529 348,407 227,942
Shares redeemed -- Service Class (1,681,835,818) (2,900,254,375) (3,555,407,931)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- SERVICE CLASS (159,008,506) (856,899,064) 338,607,091
- ---------------------------------------------------------------------------------------------
</TABLE>
---------------------
19
<PAGE>
LIST OF ABBREVIATIONS
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
CONNIE LEE -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
</TABLE>
- ---------------------
20
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
---------------------
21
<PAGE>
Wells Fargo Bank provides investment advisory services, shareholder services,
and certain other services for the Stagecoach Funds. The Funds are sponsored and
distributed by STEPHENS INC., Member NYSE/SIPC. Wells Fargo Bank is not
affiliated with Stephens Inc.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Stagecoach Funds. If this report
is used for promotional purposes, distribution of the report must be accompanied
or preceded by a current prospectus. For a prospectus containing more complete
information, including charges and expenses, call 1-800-260-5969. Read the
prospectus carefully before you invest or send money.
SC MME AR (11/97)
<TABLE>
<S> <C>
STAGECOACH
FUNDS-REGISTERED TRADEMARK-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
</TABLE>
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-C- 1997 Stagecoach Funds
