<PAGE>
- ---------------------
SEMI-ANNUAL
- ---------------------
REPORT
- ---------------------
TAX-FREE
- ---------------------
FUNDS
- ---------------------
Arizona Tax-Free Fund
California Tax-Free
Bond Fund
California Tax-Free
Income Fund
National Tax-Free Fund
Oregon Tax-Free Fund
SEPTEMBER 30, 1997
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER Q & A
Arizona Tax-Free Fund 3
California Tax-Free Bond Fund 5
California Tax-Free Income Fund 7
National Tax-Free Fund 9
Oregon Tax-Free Fund 11
PORTFOLIOS OF INVESTMENTS
Arizona Tax-Free Fund 13
California Tax-Free Bond Fund 16
California Tax-Free Income Fund 31
National Tax-Free Fund 35
Oregon Tax-Free Fund 39
STAGECOACH FUNDS
Statement of Assets and Liabilities 43
Statement of Operations 45
Statements of Changes in Net Assets 47
Financial Highlights 52
Notes to Financial Statements 65
LIST OF ABBREVIATIONS 75
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>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
- ---------------------
ii
<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>
ARIZONA TAX-FREE FUND
- --------------------
INVESTMENT ADVISER Q&A
WHAT WERE THE TOTAL RETURNS FOR THE FUND DURING THE SIX-MONTH PERIOD ENDED
SEPTEMBER 30, 1997?
Class A shares of the Fund recorded a 6.34% total return for the period
exclusive of sales charge. The return for Class B shares for the same period,
also exclusive of sales charge, was 6.00%.
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)?
When the Fed increased the federal funds target rate at the end of March, it
sent a signal to the markets that the Fed intended to remain vigilant in
fighting inflation. Even though this sent the price of Fund shares lower, this
was received as good news by the market. When subsequent economic data indicated
a continuation of moderate economic growth and subdued inflationary pressures,
intermediate- and long-term interest rates responded positively, posting
significant declines during the April through September period. As a result, the
Fund's share price rose in the third quarter.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Fed policy appears likely to remain unchanged, at least through November, but
there remains the possibility of another small increase later this year or early
in 1998.
WHAT IS THE FUND'S CURRENT AVERAGE MATURITY AND HOW DID IT CHANGE THROUGHOUT THE
PERIOD? WHY?
The average maturity of the investments held by the Fund, which measures the
Fund's sensitivity to interest rates, remained in the 11 to 14 year range,
finishing the period at about 12 years. Given the continued outlook for interest
rates, we saw no reason to significantly alter the average maturity.
ARE THERE ANY ISSUES BEFORE THE ELECTORATE THIS NOVEMBER OF CONCERN TO MUNICIPAL
BOND INVESTORS?
Elections always bear watching, particularly where the ability of state
governments to raise revenue is concerned, since it can impact their issues'
credit quality. And while there have been many highly-charged issues decided in
the public arena the last several years, there don't appear to be any major
initiatives or ballot measures before the electorate in the November elections
this year which could have a significant impact on the Fund.
---------------------
3
<PAGE>
ARIZONA TAX-FREE FUND
- ---------------------
PERFORMANCE AT A GLANCE
CLASS A SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 3/2/92
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR 5 YEAR INCEPTION
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum 4.5% Sales Charge 3.79% 5.48% 5.29% 5.81%
- -------------------------------------------------------------------------------------------
Without Sales Charge 8.66% 7.12% 6.27% 6.68%
- -------------------------------------------------------------------------------------------
</TABLE>
CLASS B SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 3/2/92
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR 5 YEAR INCEPTION
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum Contingent Deferred Sales
Charge(1) 2.15% 4.97% 4.78% 5.39%
- -------------------------------------------------------------------------------------------
Without Sales Charge 7.15% 5.87% 5.11% 5.53%
- -------------------------------------------------------------------------------------------
(1)Assumes redemption on 9/30/97.
</TABLE>
Past performance is not predictive of future results. The investment return and
net asset value of shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
While the Fund principally invests in obligations exempt from federal income
taxes, a portion of the Fund's distributions may be subject to these or state
and local taxes or the alternative minimum tax (AMT).
On September 6, 1996, the Stagecoach Arizona Tax-Free Fund was reorganized as
the successor to the Pacifica Arizona Tax-Exempt Fund (10/95 to 9/96) and the
Westcore Arizona Intermediate Tax-Free Fund (3/92 to 9/95). Historical
performance has been calculated using returns produced by these funds. Class A
performance for periods prior to September 6, 1996 reflects Pacifica Investor
Class and Westcore Fund performance. Class B performance for periods prior to
September 6, 1996, the date the Class B shares were first offered, also reflects
such performance but has been adjusted to reflect Class B share expense levels
in effect on 9/6/96.
The Fund's manager has voluntarily waived portions of its fees or has reimbursed
expenses to the Fund, which has reduced operating expenses for shareholders.
Without this reduction, the Fund's returns would have been lower.
- ---------------------
4
<PAGE>
CALIFORNIA TAX-FREE BOND FUND
- --------------------
INVESTMENT ADVISER Q&A
WHAT WERE THE TOTAL RETURNS FOR THE FUND DURING THE SIX-MONTH PERIOD ENDED
SEPTEMBER 30, 1997?
Class A shares of the Fund recorded a 6.86% total return for the period
exclusive of sales charge. The return for Class B shares for the same period,
also exclusive of sales charge, was 6.44%.
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)?
When the Fed increased the federal funds target rate at the end of March, it
sent a signal to the markets that the Fed intended to remain vigilant in
fighting inflation. Even though this sent the price of Fund shares lower, this
was received as good news by the market. When subsequent economic data indicated
a continuation of moderate economic growth and subdued inflationary pressures,
intermediate- and long-term interest rates responded positively, posting
significant declines during the April through September period. As a result, the
Fund's share price rose in the third quarter.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Fed policy appears likely to remain unchanged, at least through November, but
there remains the possibility of another small increase later this year or early
in 1998.
WHAT IS THE FUND'S CURRENT AVERAGE MATURITY AND HOW DID IT CHANGE THROUGHOUT THE
PERIOD? WHY?
The average maturity of the investments held by the Fund, which measures the
Fund's sensitivity to interest rates, declined modestly during the period to
reduce its interest rate sensitivity. It finished the period at 14.4 years.
Given the continued outlook for interest rates, we saw no reason to
significantly alter the average maturity.
ARE THERE ANY ISSUES BEFORE THE ELECTORATE THIS NOVEMBER OF CONCERN TO MUNICIPAL
BOND INVESTORS?
Elections always bear watching, particularly where the ability of state
governments to raise revenue is concerned, since it can impact their issues'
credit quality. And while there have been many highly-charged issues decided in
the public arena the last several years, there don't appear to be any major
initiatives or ballot measures before the electorate in the November elections
this year which could have a significant impact on the Fund.
---------------------
5
<PAGE>
CALIFORNIA TAX-FREE BOND FUND
- ---------------------
PERFORMANCE AT A GLANCE
CLASS A SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 1/2/92
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR 5 YEAR INCEPTION
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum 4.5% Sales Charge 4.06% 6.88% 6.07% 6.70%
- -------------------------------------------------------------------------------------------
Without Sales Charge 8.98% 8.53% 7.05% 7.55%
- -------------------------------------------------------------------------------------------
</TABLE>
CLASS B SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 1/1/95
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
<S> <C> <C>
- ---------------------------------------------------------------------------------------
With Maximum Contingent Deferred Sales Charge(1) 3.31% 8.59%
- ---------------------------------------------------------------------------------------
Without Sales Charge 8.31% 9.53%
- ---------------------------------------------------------------------------------------
(1)Assumes redemption on 9/30/97.
</TABLE>
Past performance is not predictive of future results. The investment return and
net asset value of shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
While the Fund principally invests in obligations exempt from federal income
taxes, a portion of the Fund's distributions may be subject to these state and
local taxes or the alternative minimum tax (AMT).
The Fund's manager has voluntarily waived portions of its fees or has reimbursed
expenses to the Fund, which has reduced operating expenses for shareholders.
Without this reduction, the Fund's returns would have been lower.
- ---------------------
6
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
- --------------------
INVESTMENT ADVISER Q&A
WHAT WAS THE TOTAL RETURN FOR THE FUND DURING THE SIX-MONTH PERIOD ENDED
SEPTEMBER 30, 1997?
Class A shares of the Fund recorded a 3.71% total return for the period
exclusive of sales load.
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)?
When the Fed increased the federal funds target rate at the end of March, it
sent a signal to the markets that the Fed intended to remain vigilant in
fighting inflation. This was received as good news by the market. When
subsequent economic data indicated a continuation of moderate economic growth
and subdued inflationary pressures, intermediate and long-term interest rates
responded positively, posting significant declines during the April through
September period. Since the Fund can invest in intermediate-term securities, it
was able to take advantage of this response and share prices rose.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Fed policy appears likely to remain unchanged, at least through November, but
there remains the possibility of another small increase later this year or early
in 1998.
WHAT IS THE FUND'S CURRENT AVERAGE MATURITY AND HOW DID IT CHANGE THROUGHOUT THE
PERIOD? WHY?
The average maturity of the investments held by the Fund, which measures the
Fund's sensitivity to interest rates, declined from 4.25 years at the beginning
of the period to 3.9 years at the end of the period based upon the premise that
the Fed's next move, if any, would be a further tightening of interest rates.
ARE THERE ANY ISSUES BEFORE THE ELECTORATE THIS NOVEMBER OF CONCERN TO MUNICIPAL
BOND INVESTORS?
Elections always bear watching, particularly where the ability of state
governments to raise revenue is concerned, since it can impact their issues'
credit quality. And while there have been many highly-charged issues decided in
the public arena the last several years, there don't appear to be any major
initiatives or ballot measures before the electorate in the November elections
this year which could have a significant impact on the Fund.
---------------------
7
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND
- ---------------------
PERFORMANCE AT A GLANCE
CLASS A PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
11/18/92
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR INCEPTION
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum 3.0% Sales Charge 2.55% 4.35% 4.16%
- -------------------------------------------------------------------------------------------
Without Sales Charge 5.75% 5.41% 4.81%
- -------------------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future results. The investment return and
net asset value of shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
While the Fund principally invests in obligations exempt from federal income
taxes, a portion of the Fund's distributions may be subject to these or state
and local taxes or the alternative minimum tax (AMT).
The Fund's manager has voluntarily waived portions of its fees or has reimbursed
expenses to the Fund, which has reduced operating expenses for shareholders.
Without this reduction, the Fund's returns would have been lower.
- ---------------------
8
<PAGE>
NATIONAL TAX-FREE FUND
- --------------------
INVESTMENT ADVISER Q&A
WHAT WERE THE TOTAL RETURNS FOR THE FUND DURING THE SIX-MONTH PERIOD ENDED
SEPTEMBER 30, 1997?
Class A shares of the Fund recorded a 6.51% total return for the period
exclusive of sales charge. The return for Class B shares for the same period,
also exclusive of sales charge, was 6.03%.
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)?
When the Fed increased the federal funds target rate at the end of March, it
sent a signal to the markets that the Fed intended to remain vigilant in
fighting inflation. Even though this sent the price of Fund shares lower, this
was received as good news by the market. When subsequent economic data indicated
a continuation of moderate economic growth and subdued inflationary pressures,
intermediate- and long-term interest rates responded positively, posting
significant declines during the April through September period. As a result, the
Fund's share price rose in the third quarter.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Fed policy appears likely to remain unchanged, at least through November, but
there remains the possibility of another small increase later this year or early
in 1998.
WHAT IS THE FUND'S CURRENT AVERAGE MATURITY AND HOW DID IT CHANGE THROUGHOUT THE
PERIOD? WHY?
The average maturity of the investments held by the Fund, which measures the
Fund's sensitivity to interest rates, finished the period at about 12 years.
Given the continued outlook for interest rates, we saw no reason to
significantly alter the average maturity.
ARE THERE ANY ISSUES BEFORE THE ELECTORATE THIS NOVEMBER OF CONCERN TO MUNICIPAL
BOND INVESTORS?
Elections always bear watching, particularly where the ability of state
governments to raise revenue is concerned, since it can impact their issues'
credit quality. And while there have been many highly-charged issues decided in
the public arena the last several years, there don't appear to be any major
initiatives or ballot measures before the electorate in the November elections
this year which could have a significant impact on the Fund.
---------------------
9
<PAGE>
NATIONAL TAX-FREE FUND
- ---------------------
PERFORMANCE AT A GLANCE
CLASS A SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
1/15/93
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR INCEPTION
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum 4.5% Sales Charge 3.69% 5.72% 4.74%
- -------------------------------------------------------------------------------------------
Without Sales Charge 8.59% 7.34% 5.79%
- -------------------------------------------------------------------------------------------
</TABLE>
CLASS B SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
1/15/93
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR INCEPTION
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
With Maximum Contingent Deferred Sales Charge(1) 1.13% 5.06% 4.27%
- -------------------------------------------------------------------------------------------
Without Sales Charge 6.13% 5.96% 4.63%
- -------------------------------------------------------------------------------------------
(1)Assumes redemption on 9/30/97.
</TABLE>
Past performance is not predictive of future results. The investment return and
net asset value of shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
While the Fund principally invests in obligations exempt from federal income
taxes, a portion of the Fund's distributions may be subject to these or state
and local taxes or the alternative minimum tax (AMT).
On September 6, 1996, the Fund was reorganized as the successor to the Pacifica
National Tax-Exempt Fund (10/95 to 9/96) and the Westcore Quality Tax-Exempt
Income Fund (1/93 to 9/95). Historical performance has been calculated using
returns produced by these funds. Class A performance for periods prior to
September 6, 1996 reflects Pacifica Investor Class and Westcore Fund
performance. Class B performance for periods prior to September 6, 1996, the
date the Class B shares were first offered also reflects such performance but
has been adjusted to reflect Class B share expense levels in effect on 9/6/96.
The Fund's manager has voluntarily waived portions of its fees or has reimbursed
expenses to the Fund, which has reduced operating expenses for shareholders.
Without this reduction, the Fund's returns would have been lower.
- ---------------------
10
<PAGE>
OREGON TAX-FREE FUND
- --------------------
INVESTMENT ADVISER Q&A
WHAT WERE THE TOTAL RETURNS FOR THE FUND DURING THE SIX-MONTH PERIOD ENDED
SEPTEMBER 30, 1997?
Class A shares of the Fund recorded a 6.35% total return for the period
exclusive of sales charge. The return for Class B shares for the same period,
also exclusive of sales charge, was 5.74%.
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)?
When the Fed increased the federal funds target rate at the end of March, it
sent a signal to the markets that the Fed intended to remain vigilant in
fighting inflation. Even though this sent the price of Fund shares lower, this
was received as good news by the market. When subsequent economic data indicated
a continuation of moderate economic growth and subdued inflationary pressures,
intermediate- and long-term interest rates responded positively, posting
significant declines during the April through September period. As a result, the
Fund's share price rose in the third quarter.
DO YOU FORESEE ADDITIONAL FED ACTION DURING THE REMAINDER OF THE FUND'S FISCAL
YEAR?
Fed policy appears likely to remain unchanged, at least through November, but
there remains the possibility of another small increase later this year or early
in 1998.
WHAT IS THE FUND'S CURRENT AVERAGE MATURITY AND HOW DID IT CHANGE THROUGHOUT THE
PERIOD? WHY?
The average maturity of the investments held by the Fund, which measures the
Fund's sensitivity to interest rates, remained in the 11 to 14 year range,
finishing the period at about 12.6 years. Given the continued outlook for
interest rates, we saw no reason to significantly alter the average maturity.
ARE THERE ANY ISSUES BEFORE THE ELECTORATE THIS NOVEMBER OF CONCERN TO MUNICIPAL
BOND INVESTORS?
Elections always bear watching, particularly where the ability of state
governments to raise revenue is concerned, since it can impact their issues'
credit quality. And while there have been many highly-charged issues decided in
the public arena the last several years, there don't appear to be any major
initiatives or ballot measures before the electorate in the November elections
this year which could have a significant impact on the Fund.
---------------------
11
<PAGE>
OREGON TAX-FREE FUND
- ---------------------
PERFORMANCE AT A GLANCE
CLASS A SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 6/1/88
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR 5 YEAR INCEPTION
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
With Maximum 4.5% Sales Charge 3.26% 6.08% 5.26% 6.67%
- ----------------------------------------------------------------------------------------------
Without Sales Charge 8.11% 7.71% 6.24% 7.20%
- ----------------------------------------------------------------------------------------------
</TABLE>
CLASS B SHARE PERFORMANCE AS OF 9/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE 6/1/88
AVERAGE ANNUAL TOTAL RETURNS 1 YEAR 3 YEAR 5 YEAR INCEPTION
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
With Maximum Contingent Deferred Sales
Charge(1) 1.98% 5.90% 5.07% 6.40%
- ----------------------------------------------------------------------------------------------
Without Sales Charge 6.98% 6.79% 5.40% 6.40%
- ----------------------------------------------------------------------------------------------
(1)Assumes redemption on 9/30/97.
</TABLE>
Past performance is not predictive of future results. The investment return and
net asset value of shares of the Fund will fluctuate with market conditions so
that shares of the Fund, when redeemed, may have a greater or lesser net asset
value than when originally purchased.
Average annual total returns for the indicated periods represent the average
annual increase in the value of an investment over the periods assuming
reinvestment of dividends and capital gain distributions at net asset value.
While the Fund principally invests in obligations exempt from federal income
taxes, a portion of the Fund's distributions may be subject to these or state
and local taxes or the alternative minimum tax (AMT).
On September 6, 1996, the Fund was reorganized as the successor to the Pacifica
Oregon Tax-Exempt Fund (10/95 to 9/96) and the Westcore Oregon Tax-Exempt Fund
(6/88 to 9/95). Historical performance has been calculated using returns
produced by these funds. Class A performance for periods prior to September 6,
1996 reflects Pacifica Investor Class and Westcore Fund performance. Class B
performance for periods prior to September 6, 1996, the date the Class B shares
were first offered, also reflects such performance but has been adjusted to
reflect Class B share expense levels in effect on 9/6/96.
The Fund's manager has voluntarily waived portions of its fees or has reimbursed
expenses to the Fund, which has reduced operating expenses for shareholders.
Without this reduction, the Fund's returns would have been lower.
- ---------------------
12
<PAGE>
ARIZONA TAX-FREE FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
ARIZONA MUNICIPAL BONDS - 92.48%
$ 1,165,000 Bullhead City AZ Sewer Facility Excise Tax
Revenue 5.25 % 07/01/10 $ 1,196,933
130,000 Bullhead City AZ Special Assessment Parkway
Improvement District 6.10 01/01/02 138,125
170,000 Bullhead City AZ Special Assessment Parkway
Improvement District 6.10 01/01/03 182,113
500,000 Chandler AZ Street & Highway User Revenue 6.00 07/01/11 550,700
110,000 Glendale AZ Improvement District 6.00 01/01/01 115,496
175,000 Glendale AZ Improvement District 6.00 01/01/02 185,638
235,000 Glendale AZ Water & Sewer Revenue 9.00 07/01/03 291,069
200,000 Maricopa County AZ PCR Arizona Public Service
Co V/R Series D LOC - Bank of America 4.00 05/01/29 200,000
800,000 Maricopa County AZ School District GO 7.75 07/01/06 976,544
340,000 Maricopa County AZ USD Mesa GO FGIC Insured 5.55 07/01/04 347,545
150,000 Maricopa County AZ USD Osborn 6.10 07/01/04 163,125
1,000,000 Maricopa County AZ USD Peoria Unified Projects
Series A 5.00 07/01/09 1,016,150
625,000 Maricopa County AZ USD Phoenix Elementary 6.00 07/01/08 694,188
415,000 Maricopa County AZ USD Tolleson AMBAC Insured 5.80 07/01/07 437,165
1,000,000 Mesa AZ GO 6.50 07/01/09 1,156,250
500,000 Mohave County AZ IDA Baptist Hospital MBIA
Insured 5.70 09/01/15 515,340
100,000 Peoria AZ Improvement District 7.30 01/01/99 103,207
1,000,000 Phoenix AZ Civic Improvement Corporation
Wastewater Systems 6.00 07/01/05 1,096,520
200,000 Phoenix AZ GO 3.80 06/01/20 200,000
1,000,000 Phoenix AZ GO Series A 6.25 07/01/16 1,149,580
750,000 Phoenix AZ Street & Highway User Revenue 6.40 07/01/04 826,500
</TABLE>
---------------------
13
<PAGE>
ARIZONA TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
ARIZONA MUNICIPAL BONDS (CONTINUED)
$ 215,000 Phoenix AZ Special Assessment Central Avenue
Improvement District 7.00 % 01/01/99 $ 219,685
335,000 Pima County AZ Community College District 5.50 07/01/12 345,821
75,000 Pima County AZ USD Amphitheater Series E 6.00 07/01/04 79,790
800,000 Pima County AZ USD Tucson Series D FGIC Insured 6.10 07/01/12 850,000
1,000,000 Salt River AZ Agricultural Improvement Series C 5.00 01/01/16 968,400
500,000 Scottsdale AZ GO 7.50 07/01/04 585,625
500,000 Tucson AZ GO 6.75 07/01/03 561,875
1,000,000 Tucson AZ GO Series C 7.00 07/01/15 1,214,780
500,000 Tucson AZ Street & Highway User Revenue Series
C 7.00 07/01/11 604,005
500,000 Tucson AZ Street & Highway User Revenue Series
C 7.00 07/01/12 602,175
500,000 University of Arizona Medical Center Hospital
Revenue Series A 6.88 07/01/21 555,882
--------------
TOTAL ARIZONA MUNICIPAL BONDS $ 18,130,226
(Cost $17,516,183)
PUERTO RICO MUNICIPAL BONDS - 5.10%
$ 1,000,000 Puerto Rico Commonwealth Highway &
Transportation Revenue Series Y $ 999,900
(Cost $992,764)
<CAPTION>
SHARES
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENT - 1.51%
MONEY MARKET FUNDS - 1.51%
297,000 AIM Institutional Tax-Free Fund $ 297,000
(Cost $297,000)
</TABLE>
- ------------------------
14
<PAGE>
ARIZONA TAX-FREE FUND (UNAUDITED)
<TABLE>
<C> <S> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost 18,805,947)* (Notes 1 and 3) 99.09% $ 19,427,126
Other Assets and Liabilities, Net 0.91 178,653
------ --------------
TOTAL NET ASSETS 100.00% $ 19,605,779
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 629,422
Gross Unrealized Depreciation (8,243)
------------
NET UNREALIZED APPRECIATION $ 621,179
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
15
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS - 95.98%
$ 2,000,000 ABAG Finance Authority for Nonprofit Corp CA
Stanford University Hospital 5.50 % 11/01/13 $ 2,017,500
1,000,000 Alameda CA USD AMBAC Insured 5.95 07/01/09 1,069,520
1,000,000 Alameda CA USD AMBAC Insured 6.05 07/01/11 1,069,310
2,000,000 Alameda County CA Public Facilities Corp COP 6.25 06/01/06 2,143,140
3,620,000 Antioch CA Public FA Water Revenue Water
Treatment Plant Project MBIA Insured 5.63 07/01/14 3,699,640
1,330,000 Arcadia CA USD Capital Appreciation Series A
MBIA Insured 7.31 (F) 09/01/06 873,664
1,430,000 Arcadia CA USD Capital Appreciation Series A
MBIA Insured 7.43 (F) 09/01/07 887,544
810,000 Benicia CA USD Series B 5.13 08/01/12 806,841
2,545,000 Bonita CA USD COP MBIA Insured 5.63 05/01/10 2,669,654
1,300,000 Burbank Glendale Pasadena Airport Authority CA
Airport Revenue AMBAC Insured 6.40 06/01/10 1,384,214
1,000,000 California State DWR Central Valley Project
Revenue 4.75 09/01/12 969,580
1,500,000 California State DWR Central Valley Project
Revenue 5.00 12/01/12 1,479,195
400,000 California State DWR Central Valley Project
Revenue Series F 6.00 12/01/11 405,088
1,830,000 California State DWR Central Valley Project
Revenue Series L 5.75 12/01/13 1,889,859
1,000,000 California State DWR Central Valley Project
Revenue Series L 5.75 12/01/14 1,032,710
3,235,000 California State DWR Central Valley Project
Series O 4.75 12/01/17 3,015,732
680,000 California State EDFA Revenue Mills College 6.70 09/01/05 752,440
50,000 California State EDFA Revenue Pomona College 6.13 02/15/08 53,740
1,000,000 California State EDFA Revenue Pomona College GO 5.60 12/01/14 1,016,250
</TABLE>
- ------------------------
16
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 3,200,000 California State EDFA Revenue Pomona College GO 6.00 % 02/15/17 $ 3,352,416
750,000 California State EDFA Revenue University of San
Diego Project 6.50 10/01/08 817,268
1,000,000 California State EDFA Revenue University of San
Francisco MBIA Insured 5.60 10/01/10 1,075,420
1,500,000 California State Educational Facilities
Authority Revenue College & University
Projects Series C 5.13 03/01/15 1,475,130
1,000,000 California State GO 4.75 09/01/11 980,740
3,000,000 California State GO AMBAC Insured 5.75 03/01/15 3,106,350
1,910,000 California State GO Eagles II Series 6 5.94 (F) 04/01/10 1,004,545
3,000,000 California State GO MBIA Insured 6.00 10/01/10 3,341,310
40,000 California State HFA Home Mortgage Revenue
Series B FHA Collateralized 6.90 08/01/16 40,659
180,000 California State HFA Home Mortgage Revenue
Series B MBIA Insured 6.90 08/01/16 182,524
135,000 California State HFA Home Mortgage Revenue
Series G AMT Multiple Credit Enhancements 6.95 08/01/11 143,757
500,000 California State HFA Home Multi Unit Rental
Mortgage Revenue Series B-II 6.70 08/01/15 532,190
500,000 California State HFA Home Multi-Unit Rental
Mortgage Revenue Series C-II AMT 6.85 08/01/15 532,035
1,250,000 California State HFA Multi-Unit Rental Housing
Revenue Series A AMT 5.50 08/01/15 1,230,013
1,500,000 California State HFFA Revenue Kaiser Permanente
Series A 6.25 03/01/21 1,583,880
2,000,000 California State HFFA Revenue Scripps Memorial
Hospital MBIA Insured 6.40 10/01/12 2,159,460
2,000,000 California State HFFA Revenue Scripps Research
Institute 6.63 07/01/14 2,194,380
1,000,000 California State HFFA Revenue Special Episcopal
Homes Mortgage 7.30 07/01/00 1,017,430
5,000,000 California State HFFA San Diego Hospital
Association MBIA Insured 6.20 08/01/12 5,330,650
</TABLE>
---------------------
17
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,795,000 California State HFFA Scripps Memorial Hospital
Series A MBIA Insured 6.25 % 10/01/13 $ 1,900,779
2,500,000 California State PCFA Pacific Gas & Electric Co
AMT 6.35 06/01/09 2,675,450
1,445,000 California State PCFA Pacific Gas & Electric Co
AMT 6.63 06/01/09 1,565,730
4,000,000 California State Public Work Board Lease
Revenue Department of Corrections Series A 5.40 01/01/09 4,187,080
2,000,000 California State Public Works Board Lease
Revenue Community Colleges 6.63 09/01/07 2,170,080
1,000,000 California State Public Works Board Lease
Revenue Department of Corrections AMBAC
Insured 5.25 01/01/21 977,630
3,000,000 California State Public Works Board Lease
Revenue Department of Corrections AMBAC
Insured 6.40 11/01/10 3,343,350
2,000,000 California State Public Works Board Lease
Revenue Department of Corrections Series A
AMBAC Insured 5.50 01/01/15 2,034,960
1,000,000 California State Public Works Board Lease
Revenue University Of California Project
Series A AMBAC Insured 6.00 12/01/12 1,051,480
1,755,000 California State Public Works Board Lease
Revenue University Of California Project
Series A AMBAC Insured 6.30 12/01/09 1,924,621
5,000,000 California State Universities & Colleges
Revenue HSG System FGIC Insured 5.80 11/01/17 5,222,500
5,000,000 California State Water Revenue Project Series J 6.00 12/01/07 5,569,400
1,500,000 California State Works Board Lease Revenue
University of California Project Series A 5.38 10/01/17 1,505,625
1,500,000 California Statewide CDA Lease Revenue Oakland
Convention Centers Project AMBAC Insured 5.50 10/01/14 1,515,060
</TABLE>
- ------------------------
18
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 6,800,000 California Statewide CDA Lease Revenue Oakland
Convention Centers Project AMBAC Insured 6.00 % 10/01/10 $ 7,288,784
1,000,000 California Statewide CDA Motion Picture and
Television Development AMBAC Insured 5.20 01/01/11 1,008,680
1,750,000 California Statewide CDA Motion Picture and
Television Development AMBAC Insured 5.25 01/01/12 1,763,983
500,000 California Statewide CDA Revenue COP Health
Facilities Barton Memorial Hospital LOC -
Banque Nationale de Paris 6.40 12/01/05 535,455
1,810,000 California Statewide CDA Revenue COP Hospital
Cedars Sinai Medical Center 6.50 08/01/12 2,042,657
1,500,000 California Statewide CDA Revenue COP Sutter
Health Obligated Group AMBAC Insured 6.00 08/15/09 1,599,135
1,935,000 California Statewide CDA Water Revenue Series A 6.00 07/01/10 2,055,434
2,000,000 Capistrano CA Unified PFA Special Tax Revenue
AMBAC Insured 5.25 09/01/09 2,065,000
200,000 Capitol Area Development Authority Sacramento
CA Lease Revenue Series A MBIA Insured 6.50 04/01/12 218,194
1,800,000 Chino Basin CA Regional Financial Authority
Revenue Municipal Water District Sewer
Systems Project AMBAC insured 6.00 08/01/16 1,897,182
2,000,000 Chino Basin CA Water Facility Authority Revenue
Series A 5.20 10/01/15 1,972,180
400,000 Chula Vista CA COP Town Centre II Package
Project RDA 6.00 09/01/07 424,812
735,000 Chula Vista CA COP Town Centre II Package
Project RDA 6.00 09/01/08 775,682
820,000 Chula Vista CA COP Town Centre II Package
Project Redevelopment Agency 6.00 09/01/10 862,665
2,000,000 Coachella CA Water Revenue COP FSA Insured 6.10 03/01/22 2,104,460
</TABLE>
---------------------
19
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 2,500,000 Concord CA RDFA Tax Allocation 5.75 % 07/01/10 $ 2,505,900
3,240,000 Contra Costa CA Water District Revenue FGIC
Insured 6.00 10/01/13 3,406,730
2,505,000 Contra Costa CA Water Treatment Revenue FGIC
Insured 5.70 10/01/12 2,587,865
1,500,000 Contra Costa County CA COP Public Facilities
Merrithew Memorial Hospital Replacement 6.60 11/01/12 1,689,510
2,000,000 Contra Costa County CA Transportation Authority
Sales Tax Revenue Series A Escrowed to
Maturity 6.50 03/01/09 2,265,000
1,000,000 Contra Costa County CA Water Treatment Revenue
Series A FGIC Insured 5.60 10/01/10 1,039,770
1,045,000 Corona CA PFA Public Improvement Revenue 5.95 07/01/07 1,069,056
1,075,000 Cotati CA Facilities Financing Authority Tax
Allocation Series A 5.60 09/01/12 1,063,949
1,250,000 Cucamonga County CA Water District COP
Refinancing Facilities FGIC Insured 6.30 09/01/12 1,334,063
15,000 Culver City CA RDFA AMBAC Insured 6.75 11/01/15 15,947
1,500,000 Cupertino CA Series A AMBAC Insured 5.75 07/01/16 1,543,545
1,450,000 Cupertino CA Series B 6.25 07/01/10 1,528,663
1,355,000 Duarte CA COP City of Hope National Medical
Center 6.13 04/01/13 1,404,742
4,070,000 East Bay CA MUD Wastewater Treatment Revenue
FGIC Insured 5.00 06/01/16 3,963,366
3,000,000 East Bay CA MUD Wastewater Treatment Revenue
MBIA Insured 5.00 06/01/14 2,942,820
1,500,000 East Bay CA MUD Wastewater Treatment System
Revenue AMBAC Insured 6.00 06/01/09 1,609,485
1,000,000 East Bay CA MUD Water System Revenue FGIC
Insured 6.00 06/01/12 1,054,150
1,195,000 East Bay CA Regional Park District Series B 5.75 09/01/14 1,229,786
5,000,000 Elsinore Valley CA Municipal Water District COP
Series A FGIC Insured 5.75 07/01/19 5,102,400
1,000,000 Elsinore Valley CA Municipal Water District COP
Series A FGIC Insured 6.00 07/01/12 1,100,990
</TABLE>
- ------------------------
20
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 3,000,000 Emeryville CA PFA Housing Increment Revenue
Series A 6.35 % 05/01/10 $ 3,197,130
2,000,000 Escondido CA PFA Lease Revenue Escondido Civic
Center Project Series B AMBAC Insured 6.13 09/01/11 2,152,620
1,080,000 Escondido CA USD Series A FGIC Insured 5.13 09/01/15 1,069,222
1,110,000 Folsom CA PFA Revenue AMBAC Insured 6.00 10/01/12 1,169,429
1,000,000 Foothill CA De Anza Community College Connie
Lee Insured 5.25 09/01/21 977,370
1,270,000 Fremont CA USD Alameda County Series E FGIC
Insured 5.90 09/01/15 1,341,552
3,940,000 Fremont CA USD Alameda County Series F MBIA
Insured 5.88 08/01/16 4,103,077
2,000,000 Fresno CA Conference Center 5.00 04/01/13 1,974,140
2,000,000 Fresno CA Joint Powers Financing Authority
Street Light Acquisition Project Series A 5.50 08/01/12 1,991,300
3,000,000 Fresno CA Water System Revenue FGIC Insured 6.00 06/01/16 3,149,220
1,500,000 Glendale CA RDFA Tax Allocation Revenue AMBAC
Insured 5.50 12/01/09 1,563,075
1,000,000 Glendale CA RDFA Tax Allocation Revenue AMBAC
Insured 5.50 12/01/11 1,028,470
1,000,000 Glendale CA USD Series A 5.75 08/01/17 1,038,060
575,000 Huntington Beach CA PFA Revenue Bond 6.55 08/01/01 584,626
1,000,000 Indian Wells CA RDFA Tax Allocation Whitewater
Project MBIA Insured 6.00 12/01/14 1,052,730
200,000 Industry CA Urban Development Agency 6.85 11/01/04 219,750
1,270,000 Industry CA Urban Development Agency Tax
Allocation MBIA Insured 5.80 05/01/09 1,328,928
1,000,000 Industry CA Urban Development Agency Tax
Allocation MBIA Insured 6.00 05/01/15 1,047,520
1,350,000 Jackson CA COP Water System Acquisition Project 6.80 09/01/23 1,418,405
270,000 Jamul-Dulzura CA USD 6.40 08/01/16 291,746
2,000,000 Kern CA High School District MBIA Insured 5.60 08/01/12 2,145,240
1,185,000 La Verne CA COP Capital Improvements Projects 5.70 06/01/15 1,190,581
</TABLE>
---------------------
21
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 3,000,000 Long Beach CA Finance Authority Revenue 6.00 % 11/01/08 $ 3,343,650
2,000,000 Long Beach CA Water Revenue 6.00 05/01/14 2,139,840
1,000,000 Long Beach CA Water Revenue 6.13 05/01/19 1,077,310
1,000,000 Los Angeles CA Community College District COP
Series A CGIC Insured 5.90 08/15/07 1,073,090
4,695,000 Los Angeles CA DW&P Electric Plant Revenue 5.70 09/01/11 4,895,195
200,000 Los Angeles CA DW&P Electric Plant Revenue 6.38 02/01/20 211,058
2,000,000 Los Angeles CA DW&P Electric Plant Revenue
Second Issue 5.75 08/15/11 2,075,380
2,000,000 Los Angeles CA DW&P Electrical Plant Revenue
FGIC Insured 4.75 08/15/09 1,979,500
3,000,000 Los Angeles CA DW&P Waterworks Revenue 5.70 04/15/09 3,141,990
2,145,000 Los Angeles CA Harbor Department of Revenue 6.40 08/01/15 2,387,213
2,000,000 Los Angeles CA Metropolitan Transportation
Authority Union Station Series A 5.00 07/01/09 2,028,940
340,000 Los Angeles CA Municipal Improvement Corp Lease
Revenue Central Library Project Series A 6.30 06/01/16 358,027
2,800,000 Los Angeles CA USD Certificates Participation
Multiple Properties Project Series A FSA
Insured 5.40 10/01/09 2,926,532
2,200,000 Los Angeles CA USD Certificates Participation
Multiple Properties Project Series A FSA
Insured 5.50 10/01/10 2,289,408
4,000,000 Los Angeles CA Wastewater System Revenue AMBAC
Insured 6.25 06/01/12 4,288,040
1,300,000 Los Angeles CA Wastewater System Revenue Series
A MBIA Insured 5.70 06/01/13 1,333,956
1,000,000 Los Angeles CA Wastewater System Revenue Series
C MBIA Insured 5.50 06/01/13 1,023,140
4,500,000 Los Angeles CA Wastewater System Revenue Series
D FGIC Insured 5.20 11/01/21 4,367,790
</TABLE>
- ------------------------
22
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,975,000 Los Angeles County CA Metropolitan
Transportation Authority Sales Tax Revenue
Series A 5.50 % 07/01/13 $ 1,966,152
2,000,000 Los Angeles USD COP Dr Francisco Bravo Medical
Hospital 6.60 06/01/05 2,178,160
1,370,000 Madera CA RDFA Tax Allocation Revenue CGIC
Insured 5.75 09/01/11 1,430,116
1,000,000 Menlo Park CA CDA Tax Allocation Revenue MBIA
Insured 5.38 06/01/16 999,870
2,485,000 Merced County CA Certificates Participation
Revenue 6.00 10/01/12 2,644,839
6,000,000 Metropolitan Water District Southern CA Water
Works Revenue 5.75 07/01/13 6,138,660
2,000,000 Metropolitan Water District Southern CA Water
Works Revenue MBIA Insured 5.75 07/01/15 2,079,020
1,000,000 Modesto CA Irrigation District Financing
Authority Domestic Water Project Revenue
Series A AMBAC Insured 6.00 09/01/09 1,075,610
975,000 Montclair CA RDFA Lease Revenue Series A 5.80 11/01/10 1,008,472
100,000 Montclair CA RDFA Lease Revenue Series A 6.63 11/01/11 103,617
1,000,000 Mountain View CA Shoreline Regional Park
Community Tax Allocation MBIA Insured 5.50 08/01/13 1,026,600
1,000,000 National City CA CDA Tax Allocation Downtown
Redevelopment Project Series A AMBAC Insured 6.25 08/01/12 1,071,460
1,230,000 National City CA CDA Tax Allocation Downtown
Redevelopment Project Series B AMT AMBAC
Insured 6.63 08/01/12 1,337,502
720,000 Natomas CA USD Series A MBIA Insured 5.75 09/01/12 753,984
750,000 Nevada County CA Solid Waste Revenue 6.50 10/01/06 812,168
1,000,000 North City West CA School Facility Authority
Special Tax Refunded Series B FSA Insured 5.75 09/01/15 1,038,750
1,000,000 Northern California Power Agency Multiple
Capital Facilities Revenue Series A MBIA
Insured 6.50 08/01/12 1,097,970
</TABLE>
---------------------
23
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 7,000,000 Northern California Transmission Revenue
Transmission Project A MBIA Insured 5.50 % 05/01/14 $ 7,116,620
4,280,000 Northridge CA Water District Revenue AMBAC
Insured 5.25 02/01/14 4,304,867
1,465,000 Oakland CA FGIC Insured 6.00 06/15/12 1,545,575
2,000,000 Oceanside CA Water Reuse Finance Project A
AMBAC Insured 6.40 10/01/12 2,173,400
6,000,000 Orange County CA LOC TRANS Authority Sales Tax
Revenue MBIA Insured 6.00 02/15/08 6,626,340
800,000 Orange County CA Local Transportation Authority
Sales Tax Revenue First Series Measure M 6.00 02/15/09 881,552
360,000 Orange County CA Sanitation District COP FGIC
Insured 6.40 08/01/07 388,526
1,000,000 Palm Springs CA Certificates Participation
Refunded Multiple Capital Facilities Project
AMBAC Insured 5.75 04/01/17 1,036,240
1,240,000 Parlier CA RDFA Tax Allocation Series A 6.95 08/01/23 1,304,629
3,285,000 Pittsburg CA Redevelopment Agency Tax
Allocation V/R Series A AMBAC Insured 5.00 08/01/13 3,224,260
3,380,000 Port of Oakland CA Special Facilities Revenue
Mitsui OSK Lines Ltd Series A AMT LOC -
Industrial Bank of Japan Ltd 6.80 01/01/19 3,578,372
1,000,000 Rancho CA Water District Finance Authority
Revenue 5.00 08/15/14 980,810
1,325,000 Redding CA Joint Powers Financing Authority
Wastewater Revenue Series A FGIC Insured 6.00 12/01/11 1,409,628
1,310,000 Rialto CA RDFA Tax Allocation Series A 5.80 09/01/08 1,357,881
4,000,000 Riverside County CA Asset Leasing Corp Revenue
Riverside County Hospital Project A 6.38 06/01/09 4,275,000
1,045,000 Riverside County CA PFA Special Tax Revenue
Series A MBIA Insured 5.25 09/01/10 1,072,086
1,000,000 Rocklin CA USD Community Facility District
Special Tax MBIA Insured 5.75 09/01/18 1,030,600
</TABLE>
- ------------------------
24
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 Sacramento CA Airport Commission International
Airport Revenue AMBAC Insured 6.00 % 07/01/16 $ 1,058,800
1,500,000 Sacramento CA Area Flood Control Authority
Special Assessment FGIC Insured 5.38 10/01/15 1,505,595
5,000 Sacramento CA Financing Authority Revenue
Prerefunded 6.70 11/01/11 5,347
2,300,000 Sacramento CA Light Rail Transportation Project 6.00 07/01/12 2,391,885
2,500,000 Sacramento CA MUD Electric Revenue MBIA Insured 6.25 08/15/10 2,841,675
500,000 Sacramento CA MUD Electric Revenue Series C
FGIC Insured 5.75 11/15/08 530,625
1,100,000 Sacramento CA MUD Electric Revenue Series C
MBIA Insured 5.75 11/15/09 1,160,929
50,000 Sacramento CA MUD Electric Revenue Series Z
FGIC Insured 6.45 07/01/10 53,719
1,000,000 Sacramento CA Municipal Utility District
Revenue Series L 5.00 07/01/12 992,480
2,475,000 Sacramento CA Municipal Utility District Series
L 5.10 07/01/14 2,455,175
1,000,000 Sacramento CA RDFA Tax Allocation Merged
Downtown Project A MBIA Insured 6.50 11/01/13 1,070,990
2,000,000 Sacramento County CA Airport System Revenue
Series A AMT FGIC Insured 6.00 07/01/12 2,082,920
380,000 San Bernardino County CA West Valley Detention
Center MBIA Insured 6.50 11/01/12 416,814
2,000,000 San Bernardino County CA COP Medical Center
Finance Project 4.90 08/01/08 2,015,000
200,000 San Bernardino County CA Transportation
Authority Sales Tax Revenue FGIC Insured 6.00 03/01/10 213,248
4,000,000 San Buenaventura CA COP AMBAC Insured 6.00 01/01/12 4,220,000
1,500,000 San Diego CA Community College District COP
Financing Projects 5.38 12/01/14 1,462,695
</TABLE>
---------------------
25
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,695,000 San Diego CA PFA Sewer Revenue FGIC Insured 5.00 % 05/15/15 $ 1,652,066
1,000,000 San Diego CA PFA Sewer Revenue FGIC Insured 5.00 05/15/20 951,830
3,000,000 San Diego CA Public Safety Commission Project
GO 5.50 04/01/08 3,206,100
1,000,000 San Diego CA Public Safety Commission Project
GO 6.50 07/15/07 1,158,110
4,000,000 San Diego County CA Regional Transportation
Community Sales Tax Revenue Series A Escrowed
to Maturity 6.00 04/01/08 4,369,840
1,235,000 San Elijo Joint Powers Authority San Diego
County CA Water Pollution Control Facility
FGIC Insured 5.38 03/01/13 1,245,782
200,000 San Francisco CA City & County Public Utilities
Commission Water Revenue Series A 6.50 11/01/09 220,332
700,000 San Francisco CA City & County RDFA Tax
Allocation Capital Appreciation Project MBIA
Insured 7.59 (F) 08/01/08 415,751
4,500,000 San Francisco CA City & County Sewer Revenue 6.00 10/01/11 4,792,275
500,000 San Francisco CA RDA Tax Allocation MBIA
Insured 5.00 08/01/15 487,240
4,000,000 San Joaquin Hills CA Transportation Agency Toll
Road Revenue Series A 5.25 01/15/05 2,856,920
1,345,000 San Joaquin Hills CA Transportation Agency Toll
Road Revenue Series A 5.35 01/15/07 860,329
2,000,000 San Joaquin Hills CA Transportation Corridor
Agency Toll Road Revenue Capital Appreciation 4.96 (F) 01/01/10 1,890,000
1,200,000 San Mateo CA Joint Powers Financing Authority
Redevelopment Downtown & Shoreline Project A
AMBAC Insured 5.50 08/01/07 1,244,688
1,130,000 San Mateo CA Sewer Revenue FSA Insured 5.50 08/01/14 1,160,058
</TABLE>
- ------------------------
26
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 2,250,000 Santa Clara CA Financing Authority Lease
Revenue Facility Replacement Project A AMBAC
Insured 6.88 % 11/15/14 $ 2,549,025
4,010,000 Santa Clara CA RDFA Tax Allocation Bayshore
North Project AMBAC Insured 5.75 07/01/14 4,154,480
2,500,000 Santa Clara County CA COP Multiple Facilities
Project AMBAC Insured 6.00 05/15/12 2,628,125
1,000,000 Santa Maria CA RDFA Town Center West Side
Parking Facilities FSA Insured 5.25 06/01/11 1,011,250
2,450,000 Santa Rosa CA Wastewater Treatment Plant FGIC
Insured 4.75 09/01/16 2,276,050
1,750,000 Shasta CA Joint Powers Financing Authority
Lease Revenue County Courthouse Improvement
Project Series 6.70 06/01/23 1,850,450
1,000,000 Sonoma Valley CA USD FSA Insured 6.00 07/15/21 1,059,390
4,720,000 South County CA Regional Wastewater Authority
Revenue Capital Improvement FGIC Insured 5.75 08/01/10 4,944,151
1,000,000 Southern CA Public Power Project Revenue 6.75 07/01/11 1,154,870
1,000,000 Southern California State Public Power
Authority 5.50 07/01/12 1,019,510
3,000,000 Southern California State Rapid Transit
District Special Benefit Assessment District
A1 AMBAC Insured 6.00 09/01/08 3,226,830
2,000,000 Stanislaus County CA Capital Improvement
Program Series A MBIA Insured 5.25 05/01/14 2,011,940
1,600,000 Stanislaus County CA COP Capital Improvement
Project AMBAC Insured 5.25 05/01/18 1,585,984
2,000,000 Stanislaus County CA COP Series B AMBAC Insured 6.13 06/01/12 2,129,380
1,000,000 Three Valleys CA Municipal Water District COP
FGIC Insured 5.00 11/01/14 986,270
2,000,000 Three Valleys CA Municipal Water District
Revenue COP FGIC Insured 5.25 11/01/10 2,043,640
1,000,000 Torrance CA COP AMBAC Insured 5.50 04/01/11 1,042,060
1,000,000 Torrance CA COP AMBAC Insured 5.75 04/01/16 1,040,610
</TABLE>
---------------------
27
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 Truckee-Donner Public Utility District
Certificates Participation Water System
Improvement Project 5.50 % 11/15/16 $ 1,014,480
2,000,000 Tulare County CA COP Public Facilities
Corporation Series A MBIA Insured 6.10 11/15/07 2,169,240
1,250,000 Twentynine Palms CA Water District CA COP 7.00 08/01/17 1,332,363
1,000,000 Union City CA Community RDFA Tax Allocation
Revenue Community Redevelopment Project AMBAC
Insured 5.65 10/01/14 1,027,210
1,645,000 University of California Revenue Housing System
Series A AMBAC Insured 5.50 11/01/11 1,696,982
6,900,000 University of California Revenue Multiple
Purpose Project C AMBAC Insured 5.25 09/01/11 7,002,603
1,000,000 University of California Revenue Multiple
Purpose Projects AMBAC Insured 4.75 09/01/15 923,600
1,000,000 University of California Revenue Residential
Housing Projects AMBAC Insured 6.10 09/01/10 1,057,790
2,000,000 University of California Revenue Residential
Housing Projects AMBAC Insured 6.30 09/01/13 2,115,980
1,450,000 University of California Revenue Seismic Safety
Project MBIA Insured 5.50 11/01/10 1,506,188
2,175,000 Vallejo CA Revenue Water Improvement Project
FSA Insured 5.70 05/01/16 2,231,289
2,000,000 Ventura CA COP Public Facilities 5.75 12/01/06 2,135,540
2,000,000 Ventura CA COP Public Facilities Corporation IV 5.75 12/01/07 2,099,580
2,500,000 Walnut Creek CA John Muir Medical Center MBIA
Insured 5.00 02/15/16 2,406,500
1,245,000 West & Central Basin CA Financing Authority
Series A AMBAC Insured 5.00 08/01/16 1,197,752
1,000,000 West & Century Basin Finance Authority CA
Revenue West Basin Project AMBAC Insured 5.00 08/01/13 981,510
1,170,000 West Sacramento CA Financing Authority Revenue
Water System Improvement Project FGIC Insured 5.50 08/01/15 1,181,033
</TABLE>
- ------------------------
28
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,200,000 Westminster CA RDFA AMT 6.50 % 08/01/10 $ 1,248,372
1,000,000 Whittier CA Educational Facilities Revenue
Whittier College Connie Lee Insured 5.40 12/01/18 991,190
1,040,000 Yolo County CA Library Special Tax Community
Facilities 6.25 12/01/22 1,080,518
--------------
TOTAL CALIFORNIA MUNICIPAL BONDS $ 425,198,102
(Cost $401,949,090)
SHORT-TERM INSTRUMENTS - 4.16%
SHORT-TERM CALIFORNIA MUNICIPAL SECURITIES+ 3.64%
$ 3,000,000 California State GO 3.55 % 10/06/97 $ 3,000,000
800,000 California State HFFA St Joseph's Health
Systems Series B V/R 3.60 07/01/09 800,000
1,000,000 California State PCFA Shell Oil Company Project
V/R Series C 3.60 10/01/00 1,000,000
1,800,000 California State PCFA Southern California
Edison V/R Series A 3.85 02/28/08 1,800,000
800,000 California State PCFA V/R Shell Oil Co Project
Series B 3.60 10/01/11 800,000
500,000 Irvine Ranch CA Water District V/R 3.65 10/01/05 500,000
1,700,000 Irvine Ranch CA Water District V/R 3.65 06/01/15 1,700,000
500,000 Irvine Ranch CA Water District V/R LOC -
Dai-Ichi Kangyo Bank Ltd 3.70 09/02/20 500,000
3,400,000 Irvine Ranch CA Water District V/R LOC -
Sumitomo Bank Ltd 3.65 10/01/10 3,400,000
950,000 Los Angeles County CA IDA Walter & Howard V/R
AMT LOC - Dai-Ichi Kangyo Bank Ltd 4.30 12/01/06 950,000
1,700,000 Orange County CA Sanitation District V/R LOC -
National Westminster Bank Plc 3.65 08/01/15 1,700,000
--------------
$ 16,150,000
</TABLE>
---------------------
29
<PAGE>
CALIFORNIA TAX-FREE BOND FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS (CONTINUED)
MONEY MARKET FUNDS - 0.52%
$ 2,297,000 Nuveen Institutional CA Tax-Exempt Fund $ 2,297,000
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 18,447,000
(Cost $18,447,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $420,396,090)* (Notes 1 and 3) 100.14% $ 443,645,102
Other Assets and Liabilities, Net (0.14) (616,635)
------ --------------
TOTAL NET ASSETS 100.00% $ 443,028,467
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(F) YIELD TO MATURITY.
+ THESE VARIABLE RATE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH
REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 23,399,760
Gross Unrealized Depreciation (150,748)
------------
NET UNREALIZED APPRECIATION $ 23,249,012
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
30
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS - 92.80%
$ 2,425,000 California State DWR Central Valley Project
Revenue 8.50 % 12/01/98 $ 2,556,459
3,625,000 California State DWR Central Valley Project
Revenue Series H Prerefunded 6.90 12/01/25 3,944,218
500,000 California State EDFA Revenue Pooled College &
University Financing 5.10 06/01/98 502,905
2,615,000 California State HFFA Revenue Catholic
Healthcare West Series A 5.00 07/01/01 2,686,599
500,000 California State HFFA Revenue Episcopal Homes
Mortgage Insurance 7.20 07/01/99 508,660
260,000 California State HFFA Revenue Mortgage
Insurance 7.40 12/01/00 274,693
2,135,000 California State Maritime Infrastructure
Authority Port of San Diego Revenue AMT AMBAC
Insured 5.00 11/01/02 2,194,865
1,000,000 California State Public Revenue CA State
University Projects 6.70 10/01/17 1,128,750
1,000,000 California State Public Works Board Lease
Revenue CA State University Project A 6.63 10/01/10 1,125,930
500,000 California State Public Works Board Lease
Revenue Department of Corrections State
Prison 7.00 09/01/98 511,495
750,000 California State Public Works Board Lease
Revenue Department of Corrections State
Prison 7.20 11/01/98 759,518
1,500,000 California Statewide CDA Revenue COP Saint
Joseph Health System 4.30 07/01/98 1,502,970
1,000,000 California Statewide CDA Revenue COP United
Western Medical Centers 6.75 12/01/21 1,116,250
250,000 Carlsbad CA USD COP Phase III 6.70 11/01/99 261,893
4,000,000 Contra Costa County CA Transportation Authority
Sales Tax Revenue Series A FGIC Insured 6.00 03/01/04 4,372,320
</TABLE>
---------------------
31
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 2,000,000 East Bay CA MUD Water System Revenue MBIA
Insured 6.50 % 06/01/24 $ 2,285,000
500,000 Emeryville CA PFA Housing Increment Revenue
Series A 5.40 05/01/98 504,110
600,000 Encinitas CA USD COP Measure B Capital Projects 4.38 09/01/98 601,920
820,000 Foster City CA PFA 4.70 09/01/98 823,157
685,000 Foster City CA PFA 5.40 09/01/01 707,598
1,750,000 Industry CA Urban Development Agency FSA
Insured 4.70 05/01/04 1,776,513
1,000,000 Los Angeles CA Department of Airports Revenue
FGIC Insured 6.50 05/15/04 1,127,500
725,000 Los Angeles CA Judgement Obligation Bonds
Series A 4.70 08/01/98 730,757
2,205,000 Los Angeles CA USD Certificates Participation
Properties FSA Insured 4.75 10/01/02 2,205,000
1,300,000 Los Angeles CA Waste Water System Revenue
Series A MBIA Insured 8.50 06/01/03 1,566,396
1,000,000 Los Angeles CA Waste Water System Revenue
Series D Prerefunded 6.70 12/01/21 1,097,940
300,000 Los Angeles County CA Transportation Commission
Sales Tax Revenue Series A 6.10 07/01/99 311,415
500,000 Morgan Hill CA RDFA Tax Allocation Ojo De Agua
Community Development Project 5.60 03/01/00 506,915
1,075,000 Mount Diablo CA USD Community Facilities
District Special Tax AMBAC Insured 8.00 08/01/03 1,273,628
2,500,000 Rancho CA Water District Financing Authority
Revenue 4.70 08/15/21 2,521,875
1,000,000 Riverside County CA Transportation Sales Tax
Revenue Series A 6.40 06/01/99 1,037,150
3,000,000 Riverside County CA Transportation Sales Tax
Revenue Series A 6.50 06/01/01 3,250,740
300,000 Sacramento CA Light Rail Transportation Project 6.30 07/01/00 314,163
500,000 Sacramento CA MUD Electric Revenue MBIA Insured 7.50 08/15/99 523,680
</TABLE>
- ------------------------
32
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 Sacramento CA Schools Authority Revenue Series
C 5.75 % 06/01/03 $ 1,041,050
3,000,000 Sacramento CA TRAN 4.50 09/30/98 3,019,020
500,000 San Diego CA Transportation Authority COP Bus
Acquisition Project 6.60 12/01/01 523,475
2,000,000 San Diego County CA Regional Transportation
Commission Sales Tax Revenue Series A FGIC
Insured 6.25 04/01/02 2,163,820
1,090,000 San Francisco CA City & County International
Airport Revenue MBIA Insured 8.00 05/01/05 1,323,424
1,150,000 San Francisco CA City & County International
Revenue AMT MBIA Insured 8.00 05/01/05 1,392,179
1,000,000 San Francisco CA City & County RDFA Lease
Revenue George R Moscone Center AMBAC Insured 6.20 10/01/00 1,058,750
750,000 San Francisco CA Redevelopment Agency Lease
Revenue George Moscone Center Project 7.40 07/01/98 767,505
3,000,000 Santa Clara County CA TRAN 4.75 10/01/98 3,026,250
500,000 Santa Monica CA Wastewater Enterprise Revenue
Hyperion Project 12.00 01/01/01 617,925
2,000,000 Southern California Rapid Transit District
Certificates Participation MBIA Insured 7.50 07/01/05 2,238,480
1,100,000 Southern California State Public Power
Authority Project 6.75 07/01/00 1,166,000
3,000,000 Southern California State Public Power
Authority Project 6.88 07/01/03 3,217,496
1,185,000 Southern California State Waterworks Revenue
Series C 6.00 07/01/06 1,308,939
1,000,000 University of California Multiple Projects
Revenue Series A MBIA Insured 6.00 09/01/02 1,080,140
--------------
TOTAL CALIFORNIA MUNICIPAL BONDS $ 70,557,435
(Cost $69,516,956)
</TABLE>
---------------------
33
<PAGE>
CALIFORNIA TAX-FREE INCOME FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 9.42%
SHORT-TERM CALIFORNIA MUNICIPAL SECURITIES+ 6.18%
$ 1,600,000 California State HFFA Sutter Hospital V/R LOC -
Morgan Guaranty Trust 3.65 % 03/01/20 $ 1,600,000
1,300,000 California Statewide CDA Sutter Health Group
V/R AMBAC Insured 3.65 07/01/15 1,300,000
1,800,000 West Riverside CA Regional Waterworks Authority
Revenue V/R 3.65 04/01/28 1,800,000
--------------
$ 4,700,000
MONEY MARKET FUNDS - 3.24%
$ 2,465,922 Nuveen Institutional CA Tax-Exempt Fund $ 2,465,922
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 7,165,922
(Cost $7,165,922)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $76,682,878)* (Notes 1 and 3) 102.22% $ 77,723,357
Other Assets and Liabilities, Net (2.22) (1,689,817)
------ --------------
TOTAL NET ASSETS 100.00% $ 76,033,540
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ THESE VARIABLE RATE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH
REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 1,124,732
Gross Unrealized Depreciation (84,253)
------------
NET UNREALIZED APPRECIATION $ 1,040,479
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
34
<PAGE>
NATIONAL TAX-FREE FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS - 96.77%
ALASKA - 7.89%
$ 500,000 Alaska State Department of Transportation
Maintenance Project 4.75 % 01/01/05 $ 502,690
200,000 Anchorage AK USD FGIC Insured 6.00 10/01/14 223,446
100,000 Anchorage Alaska GO MBIA Insured 6.75 07/01/05 108,669
100,000 Valdez Alaska Marine Term Revenue Pipelines Inc
Series A 5.85 08/01/25 101,625
--------------
$ 936,430
CALIFORNIA - .99%
$ 20,000 California State GO 6.00 % 02/01/01 $ 21,131
100,000 East Bay CA MUD Special District 5.00 04/01/15 96,150
--------------
$ 117,281
COLORADO - 2.58%
$ 270,000 El Paso County CO USD 6.15 % 12/15/08 $ 305,775
HAWAII - 2.31%
$ 250,000 Hawaii State Series CL GO 6.00 % 03/01/09 $ 274,688
ILLINOIS - 1.92%
$ 200,000 Chicago IL O'Hare International Airport Revenue
Series A 6.75 % 01/01/06 $ 227,634
KENTUCKY - 1.26%
$ 140,000 Kentucky State Housing Corporation Revenue FHA
Insured 6.50 % 07/01/17 $ 149,625
MASSACHUSETTS - 4.22%
$ 500,000 Massachusetts Bay Transportation Authority
System Series B 4.80 % 03/01/08 $ 501,385
</TABLE>
---------------------
35
<PAGE>
NATIONAL TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
NEVADA - 9.99%
$ 500,000 Clark County NV Las Vegas Convention & Visitors
Authority FSA Insured 6.00 % 07/01/26 $ 521,055
150,000 Clark County NV Series A - AMBAC Insured 6.00 06/01/03 162,984
500,000 Reno NV Hospital Revenue 5.63 05/15/23 501,640
--------------
$ 1,185,679
NEW MEXICO - 10.83%
$ 500,000 Albuquerque NM General Purpose Revenue Series A 5.00 % 07/01/03 $ 515,700
500,000 Bernalillo County NM Gross Receipt Tax Revenue
Series B 5.00 04/01/14 494,940
250,000 Santa Fe County NM Gross Receipts Tax Revenue
Series A 6.00 02/01/27 274,370
--------------
$ 1,285,010
NEW YORK - 11.18%
$ 250,000 Erie County NY Public Improvement 6.13 % 01/15/10 $ 279,643
475,000 Metropolitan Transportation Authority NY
Commuter Facility Revenue Series A 6.00 07/01/05 518,572
250,000 New York NY FGIC Series E 6.00 08/01/12 269,015
250,000 New York NY Municipal Assistance Corp Series E 5.20 07/01/08 259,688
--------------
$ 1,326,918
NORTH DAKOTA - 0.88%
$ 100,000 North Dakota State Building Authority Lease
Revenue 5.35 % 06/01/02 $ 104,089
OREGON - 0.84%
$ 100,000 Portland OR PCR Harbor Authority V/R 3.85 % 12/01/09 $ 100,000
</TABLE>
- ------------------------
36
<PAGE>
NATIONAL TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TEXAS - 15.24%
$ 400,000 Austin TX Utility Systems Revenue 5.90 % 10/01/99 $ 414,196
250,000 Decatur TX Indeptness School District 6.13 08/01/25 264,380
250,000 El Paso TX GO 7.00 08/15/06 293,950
500,000 Houston TX Independent School District 6.15 08/15/14 569,730
125,000 Port Arthur TX MBIA Insured 8.50 02/15/03 149,556
115,000 San Antonio TX GO 5.13 08/01/01 118,759
--------------
$ 1,810,571
UTAH - 6.53%
$ 250,000 Salt Lake City UT RDA Neighborhood Tax Revenue 6.50 % 10/01/01 $ 268,283
250,000 Utah State Building Ownership Authority Lease
Series A 6.00 05/15/09 263,568
225,000 Washington County UT USD St Georges FGIC
Insured 6.00 03/01/03 243,113
--------------
$ 774,964
VERMONT - 4.82%
$ 500,000 Burlington VT Electricity Revenue Series A MBIA
Insured 6.38 % 07/01/10 $ 572,720
WASHINGTON - 9.81%
$ 500,000 Clark County WA Sewer Revenue 6.00 % 12/01/06 $ 550,010
100,000 Island County WA USD South Whidbey 6.75 12/01/07 117,429
350,000 Tacoma WA Solid Waste Utility Revenue 6.00 12/01/09 389,942
100,000 South Columbian Basin WA Improvement District
Revenue 6.00 12/01/02 106,945
--------------
$ 1,164,326
</TABLE>
---------------------
37
<PAGE>
NATIONAL TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
WISCONSIN - 5.48%
$ 500,000 Milwaukee WI Metropolitan Sewer Distribution
Project Series A 6.00 % 10/01/05 $ 546,805
100,000 Wisconsin State Tax System 5.10 11/01/01 103,248
--------------
$ 650,053
TOTAL MUNICIPAL BONDS $ 11,487,148
(Cost $11,116,937)
<CAPTION>
SHARES
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.81%
MONEY MARKET FUNDS - 1.81%
215,000 AIM Institutional Tax-Free Fund $ 215,000
(Cost $215,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $11,331,937)* (Notes 1 and 3) 98.58% $ 11,702,148
Other Assets and Liabilities, Net 1.42 168,046
------ --------------
TOTAL NET ASSETS 100.00% $ 11,870,194
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 373,847
Gross Unrealized Depreciation (3,636)
------------
NET UNREALIZED APPRECIATION $ 370,211
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
38
<PAGE>
OREGON TAX-FREE FUND (UNAUDITED)
- -----------------------------------------------------
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
OREGON MUNICIPAL BONDS - 91.46%
$ 300,000 Chemeketa OR Community College District AMBAC
Insured 5.40 % 06/01/07 $ 319,458
1,100,000 Chemeketa OR Community College District FGIC
Insured 6.00 06/01/06 1,222,485
1,000,000 Chemeketa OR Community College District Series
B 5.60 06/01/14 1,052,720
250,000 Chemeketa OR Community College MBIA Insured 6.50 07/01/07 287,880
495,000 Clackamas County HFFA Jennings Lodge Project
GNMA FHA credit support 7.50 10/20/31 534,818
300,000 Clackamas County HFFA Sisters of Providence
Series A 6.38 10/01/05 326,808
500,000 Emerald Peoples OR MUD Revenue FGIC Insured 7.00 11/01/00 541,955
2,675,000 Emerald Peoples OR MUD Revenue FGIC Insured 7.35 11/01/13 3,367,263
1,750,000 Emerald Peoples OR Utility District Revenue 7.35 11/01/07 2,145,063
630,000 Emerald Peoples OR Utility District Revenue 7.20 11/01/06 753,638
250,000 Eugene OR Electric Utilities Revenue 6.40 08/01/07 265,878
845,000 Eugene OR Public Safety Facilities 6.00 06/01/06 922,554
1,000,000 Hillsboro OR Hospital Healthcare Facility 5.75 10/01/12 1,018,420
620,000 Hood River County OR USD GO AMBAC Insured 5.65 06/01/08 658,359
500,000 Josephine County OR USD FGIC 5.75 06/01/07 546,230
750,000 Lane County OR USD Lane County Community
College GO 5.20 06/01/05 783,705
1,000,000 Linn & Benton OR School District GO 5.35 06/01/08 1,072,670
100,000 Marion & Polk Counties OR USD Salem GO 5.90 10/01/07 107,494
1,000,000 Multnomah County OR School District GO 5.63 06/01/12 1,043,220
500,000 Oregon State Department of Administrative
Services Series A 5.20 05/01/06 523,310
750,000 Oregon State Board of Higher Education GO
Series C 5.95 08/01/26 786,878
</TABLE>
---------------------
39
<PAGE>
OREGON TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
OREGON MUNICIPAL BONDS (CONTINUED)
$ 250,000 Oregon State Department General Services AMBAC
Insured 7.50 % 09/01/15 $ 278,115
480,000 Oregon State GO 7.25 07/01/07 576,250
255,000 Oregon State GO 7.30 01/01/08 308,071
175,000 Oregon State GO 9.00 10/01/05 226,483
1,000,000 Oregon State GO Higher Education Building 6.30 08/01/13 1,117,100
1,205,000 Oregon State Health Sciences Revenue Series A 5.25 07/01/28 1,188,431
575,000 Oregon State Housing Educational & Cultural
Facilities Authority Revenue Reed College
Project 6.75 07/01/21 635,743
5,000 Oregon State SFMR Program FHA/VA Insured 7.05 07/01/09 5,316
275,000 Port Morrow OR Pollution Control Project
General Electric Co 6.38 04/01/08 299,063
485,000 Portland OR Arena Gas Tax Revenue Series A 5.35 06/01/07 513,659
150,000 Portland OR MUD Sewer System Revenue Series A 6.05 06/01/09 165,000
2,045,000 Portland OR Sewer System Revenue Series A 5.00 06/01/09 2,075,675
750,000 Portland OR Sewer System Revenue Series A 5.75 06/01/06 812,565
1,000,000 South Fork OR Water Board Revenue Series B 6.00 02/01/14 1,064,690
40,000 Tri-County Metropolitan OR Transportation
District Revenue 5.70 08/01/13 40,840
400,000 Umatilla County OR GO 5.20 10/01/08 414,624
1,000,000 Washington County OR Unified Sewer Agency
Revenue FGIC Insured 5.75 10/01/11 1,086,250
250,000 Washington & Clackamas County OR School
District J Tigard 5.50 06/01/06 263,038
1,000,000 Washington County OR School District Series B 5.25 12/01/01 1,038,390
2,000,000 Washington County OR Unified Sewer Agency
Revenue FGIC Insured 5.50 10/01/13 2,065,880
</TABLE>
- ------------------------
40
<PAGE>
OREGON TAX-FREE FUND (UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
OREGON MUNICIPAL BONDS (CONTINUED)
$ 725,000 Washington County School District J Sherwood
FSA Insured 6.10 % 06/01/12 $ 787,183
550,000 Western Lane OR HFFA Revenue Sisters of St.
Joseph Peace Services MBIA Insured 5.63 08/01/07 592,060
--------------
TOTAL OREGON MUNICIPAL BONDS $ 33,835,232
(Cost $32,533,888)
PUERTO RICO MUNICIPAL BONDS - 3.09%
$ 40,000 Commonwealth of Puerto Rico Aqueduct & Sewer
Revenue 10.25 % 07/01/09 $ 56,394
350,000 Commonwealth of Puerto Rico MFHR LOC -
Government Development Bank of Puerto Rico 7.50 04/01/22 369,534
425,000 Commonwealth of Puerto Rico PCR Facilities
Financing Authority Upjohn Co Project 7.50 12/01/23 454,461
250,000 Commonwealth of Puerto Rico SFMR GNMA Insured 7.50 10/15/12 263,903
--------------
TOTAL PUERTO RICO MUNICIPAL BONDS $ 1,144,292
(Cost $1,080,286)
SHORT-TERM INSTRUMENTS - 4.10%
SHORT-TERM CALIFORNIA MUNICIPAL SECURITIES+ - 1.62%
$ 600,000 Portland OR PCR Harbor Authority V/R 3.85 % 12/01/09 $ 600,000
<CAPTION>
SHARES
<C> <S> <C> <C> <C> <C>
MONEY MARKET FUNDS - 2.48%
916,000 AIM Institutional Tax-Free Fund $ 916,000
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 1,516,000
(Cost $1,516,000)
</TABLE>
---------------------
41
<PAGE>
OREGON TAX-FREE FUND (UNAUDITED)
<TABLE>
<C> <S> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $35,130,174)* (Notes 1 and 3) 98.65% $ 36,495,524
Other Assets and Liabilities, Net 1.35 500,708
------ --------------
TOTAL NET ASSETS 100.00% $ 36,996,232
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ THESE VARIABLE RATE SECURITIES HAVE A DEMAND FEATURE WHICH REDUCES THE
REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 1,365,667
Gross Unrealized Depreciation (317)
------------
NET UNREALIZED APPRECIATION $ 1,365,350
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
42
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA
TAX-FREE TAX-FREE
FUND BOND FUND
<S> <C> <C>
- -------------------------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $19,427,126 $443,645,102
Cash 1,177 1,811
Receivables:
Interest 278,956 6,594,792
Fund shares sold 0 579,451
Due from administrator (Note 2) 16,434 0
Organization expenses, net of
amortization 0 0
Prepaid expenses 0 0
TOTAL ASSETS 19,723,693 450,821,156
LIABILITIES
Payables:
Investment securities purchased 0 5,192,215
Distribution to shareholders 68,866 1,606,151
Capital shares redeemed 0 129,420
Due to sponsor and distributor (Note
2) 2,362 409,064
Due to WFB (Note 2) 0 195,412
Other 46,686 260,427
TOTAL LIABILITIES 117,914 7,792,689
TOTAL NET ASSETS
$19,605,779 $443,028,467
NET ASSETS CONSIST OF:
Paid-in capital $18,655,306 $421,320,832
Undistributed net realized gain (loss)
on investments 329,294 (1,541,377)
Net unrealized appreciation of
investments 621,179 23,249,012
TOTAL NET ASSETS $19,605,779 $443,028,467
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net assets - Class A $ 5,602,758 $292,453,184
Shares outstanding - Class A 515,694 26,164,573
Net asset value per share - Class A $ 10.86 $ 11.18
Maximum offering price per share - Class
A $ 11.37(1) $ 11.71(1)
Net assets - Class B $ 916,043 $ 65,725,599
Shares outstanding - Class B 87,400 5,768,869
Net asset value and offering price per
share - Class B $ 10.48 $ 11.39
Net assets - Institutional Class $13,086,978 $ 84,849,684
Shares outstanding - Institutional Class 1,205,156 7,572,668
Net asset value and offering price per
share - Institutional Class $ 10.86 $ 11.20
INVESTMENT AT COST (NOTE 3) $18,805,947 $420,396,090
- -------------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/95.5 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
---------------------
43
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) - SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL OREGON
TAX-FREE TAX-FREE TAX-FREE
INCOME FUND FUND FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $77,723,357 $11,702,148 $36,495,524
Cash 1,397 1,265 1,803
Receivables:
Interest 1,229,875 173,582 653,667
Fund shares sold 0 0 14,323
Due from administrator (Note 2) 0 48,404 0
Organization expenses, net of
amortization 698 4,152 9,936
Prepaid expenses 56,568 18,336 2,927
TOTAL ASSETS 79,011,895 11,947,887 37,178,180
LIABILITIES
Payables:
Investment securities purchased 2,690,547 0 0
Distribution to shareholders 226,483 43,465 131,730
Capital shares redeemed 0 613 0
Due to sponsor and distributor (Note
2) 18,336 196 16,736
Due to WFB (Note 2) 17,375 0 6,344
Other 25,614 33,419 27,138
TOTAL LIABILITIES 2,978,355 77,693 181,948
TOTAL NET ASSETS
$76,033,540 $11,870,194 $36,996,232
NET ASSETS CONSIST OF:
Paid-in capital $74,815,258 $11,447,482 $35,032,753
Undistributed net realized gain (loss)
on investments 177,803 52,501 598,129
Net unrealized appreciation of
investments 1,040,479 370,211 1,365,350
TOTAL NET ASSETS $76,033,540 $11,870,194 $36,996,232
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net assets - Class A $69,120,739 $ 4,687,265 $28,350,252
Shares outstanding - Class A 6,617,183 297,254 1,674,303
Net asset value per share - Class A $ 10.45 $ 15.77 $ 16.93
Maximum offering price per share - Class
A $ 10.77(2) $ 16.51(1) $ 17.73(1)
Net assets - Class B N/A $ 443,080 $ 595,018
Shares outstanding - Class B N/A 42,602 57,355
Net asset value and offering price per
share - Class B N/A $ 10.40 $ 10.37
Net assets - Institutional Class $ 6,912,801 $ 6,739,849 $ 8,050,962
Shares outstanding - Institutional Class 672,598 427,571 475,607
Net asset value and offering price per
share - Institutional Class $ 10.28 $ 15.76 $ 16.93
INVESTMENT AT COST (NOTE 3) $76,682,878 $11,331,937 $35,130,174
- ----------------------------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/95.5 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/97 OF NET ASSET VALUE. ON
INVESTMENTS OF $100,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
- ------------------------
44
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED) - FOR THE SIX MONTHS ENDED SEPT. 30, 1997
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA
TAX-FREE TAX-FREE
FUND BOND FUND
<S> <C> <C>
- -----------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 495,060 $11,940,783
TOTAL INVESTMENT INCOME 495,060 11,940,783
EXPENSES (NOTE 2)
Advisory fees 47,968 1,068,171
Administration fees 5,918 128,887
Custody fees 1,647 36,890
Shareholder servicing fees 24,657 621,870
Portfolio accounting fees 27,714 73,796
Transfer agency fees 8,373 264,628
Distribution fees 3,164 265,840
Amortization of organization expenses 19,631 9,494
Legal and audit fees 14,886 32,428
Registration fees 8,363 24,061
Directors' fees 2,541 1,956
Shareholder reports 11,959 16,574
Other 9,675 15,284
TOTAL EXPENSES 186,496 2,559,879
Less:
Waived fees and reimbursed expenses (138,898) (943,572)
Net Expenses 47,598 1,616,307
NET INVESTMENT INCOME 447,462 10,324,476
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on sale of
investments 249,672 312,117
Net change in unrealized appreciation
of investments 562,642 17,125,405
NET GAIN ON INVESTMENTS 812,314 17,437,522
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,259,776 $27,761,998
- -----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
45
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED) - FOR THE SIX MONTHS ENDED SEPT. 30, 1997
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL OREGON
TAX-FREE TAX-FREE TAX-FREE
INCOME FUND FUND FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,598,178 $ 310,185 $ 986,460
TOTAL INVESTMENT INCOME 1,598,178 310,185 986,460
EXPENSES (NOTE 2)
Advisory fees 174,517 29,362 93,755
Administration fees 21,497 3,574 11,355
Custody fees 6,485 995 3,160
Shareholder servicing fees 105,968 14,892 47,312
Portfolio accounting fees 34,444 26,295 35,373
Transfer agency fees 47,566 5,941 23,277
Distribution fees 16,275 1,916 8,830
Amortization of organization expenses 12,838 51,073 2,741
Legal and audit fees 11,808 13,051 12,130
Registration fees 9,167 10,399 6,466
Directors' fees 2,507 2,415 2,415
Shareholder reports 12,725 13,346 11,149
Other 5,865 4,946 11,799
TOTAL EXPENSES 461,662 178,205 269,762
Less:
Waived fees and reimbursed expenses (230,171) (156,399) (162,984)
Net Expenses 231,491 21,806 106,778
NET INVESTMENT INCOME 1,366,687 288,379 879,682
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on sale of
investments 164,461 56,608 176,200
Net change in unrealized appreciation
of investments 1,070,520 400,522 1,294,301
NET GAIN ON INVESTMENTS 1,234,981 457,130 1,470,501
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,601,668 $ 745,509 $2,350,183
- ----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------
46
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA TAX-FREE FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX
MONTHS MONTHS FOR THE
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 447,462 $ 503,920 $ 1,120,096
Net realized gain on sale of
investments 249,672 117,123 336,608
Net change in unrealized appreciation
(depreciation) of investments 562,642 (97,594) (564,971)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 1,259,776 523,449 891,733
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (125,317) (143,470) (370,176)
CLASS B (8,332) (1,534) (11)
INSTITUTIONAL CLASS (313,813) (358,916) (749,909)
From net realized gain on sale of
investments
CLASS A 0 0 (109,463)
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 (227,136)
In excess of net realized gain
CLASS A 0 0 (12,756)
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 (24,754)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 256,720 88,082 1,232,906
Reinvestment of dividends - Class A 91,208 107,419 329,709
Cost of shares redeemed - Class A (749,491) (1,794,342) (18,720,996)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (401,563) (1,598,841) (17,158,381)
Proceeds from shares sold - Class B 824,296 183,000 20,025
Reinvestment of dividends - Class B 5,515 900 0
Cost of shares redeemed - Class B (106,939) (20,119) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 722,872 163,781 20,025
Proceeds from shares sold -
Institutional Class 651,297 795,737 19,525,762
Reinvestment of dividends -
Institutional Class 1,806 1,171 6,149
Cost of shares redeemed - Institutional
Class (2,455,217) (2,034,842) (3,485,066)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (1,802,114) (1,237,934) 16,046,845
INCREASE (DECREASE) IN NET ASSETS (668,491) (2,653,465) (1,693,983)
NET ASSETS:
Beginning net assets 20,274,270 22,927,735 24,621,718
ENDING NET ASSETS $19,605,779 $20,274,270 $ 22,927,735
- -----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
47
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE BOND FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996 (1)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 10,324,476 $ 10,977,104 $ 12,177,391
Net realized gain on sale of
investments 312,117 703,761 2,803,854
Net change in unrealized appreciation
(depreciation) of investments 17,125,405 (2,610,834) (9,703,374)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 27,761,998 9,070,031 5,277,871
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (6,923,842) (7,407,796) (10,685,255)
CLASS B (1,174,593) (966,271) (1,125,031)
INSTITUTIONAL CLASS (2,226,041) (2,603,035) (367,105)
From net realized gain on sale of
investments
CLASS A 0 0 0
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 0
In excess of net realized gain
CLASS A 0 0 0
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 22,887,000 11,498,244 66,701,505
Reinvestment of dividends - Class A 4,663,548 4,945,521 7,380,505
Cost of shares redeemed - Class A (27,420,803) (35,126,395) (62,521,660)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 129,745 (18,682,630) 11,560,350
Proceeds from shares sold - Class B 19,290,063 9,758,966 17,171,150
Reinvestment of dividends - Class B 851,562 704,669 809,463
Cost of shares redeemed - Class B (3,788,028) (3,088,552) (4,072,983)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 16,353,597 7,375,083 13,907,630
Proceeds from shares sold -
Institutional Class 588,028 2,525,829 109,432,129
Reinvestment of dividends -
Institutional Class 165,508 188,029 416
Cost of shares redeemed - Institutional
Class (15,054,977) (13,787,210) (3,636,945)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (14,301,441) (11,073,352) 105,795,600
INCREASE (DECREASE) IN NET ASSETS 19,619,423 (24,287,970) 124,364,060
NET ASSETS:
Beginning net assets 423,409,044 447,697,014 323,332,954
ENDING NET ASSETS $443,028,467 $423,409,044 $447,697,014
- -------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $34,768,827 FOR CLASS A AND
$108,895,455 FOR THE INSTITUTIONAL CLASS, AS A RESULT OF THE MERGER OF THE
PACIFICA CALIFORNIA TAX-EXEMPT FUND. SEE NOTE 1.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $4,994,478 FOR CLASS A AND $9,693,700
FOR THE INSTITUTIONAL CLASS, AS A RESULT OF THE MERGER OF THE PACIFICA
SHORT-TERM CALIFORNIA TAX-EXEMPT FUND. SEE NOTE 1.
The accompanying notes are an integral part of these financial statements.
- ---------------------
48
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE INCOME FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996 (2)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,366,687 $ 1,580,769 $ 2,349,987
Net realized gain on sale of
investments 164,461 248,774 2,344
Net change in unrealized appreciation
(depreciation) of investments 1,070,520 (98,200) (677,786)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,601,668 1,731,343 1,674,545
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,238,391) (1,432,926) (2,330,216)
CLASS B N/A N/A N/A
INSTITUTIONAL CLASS (128,296) (147,843) (19,771)
From net realized gain on sale of
investments
CLASS A 0 0 0
CLASS B N/A N/A N/A
INSTITUTIONAL CLASS 0 0 0
In excess of net realized gain
CLASS A 0 0 0
CLASS B N/A N/A N/A
INSTITUTIONAL CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 14,157,267 11,076,589 44,078,871
Reinvestment of dividends - Class A 1,099,551 1,252,455 2,046,401
Cost of shares redeemed - Class A (14,899,979) (27,177,264) (41,016,574)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 356,839 (14,848,220) 5,108,698
Proceeds from shares sold - Class B N/A N/A N/A
Reinvestment of dividends - Class B N/A N/A N/A
Cost of shares redeemed - Class B N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B N/A N/A N/A
Proceeds from shares sold -
Institutional Class 835,882 467,025 10,078,900
Reinvestment of dividends -
Institutional Class 25,274 26,714 0
Cost of shares redeemed - Institutional
Class (1,127,351) (3,513,007) (52,763)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (266,195) (3,019,268) 10,026,137
INCREASE (DECREASE) IN NET ASSETS 1,325,625 (17,716,914) 14,459,393
NET ASSETS:
Beginning net assets 74,707,915 92,424,829 77,965,436
ENDING NET ASSETS $ 76,033,540 $ 74,707,915 $ 92,424,829
- -------------------------------------------------------------------------------------------
<CAPTION>
NATIONAL TAX-FREE FUND
FOR THE SIX FOR THE SIX
MONTHS MONTHS FOR THE
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 288,379 $ 291,522 $ 636,397
Net realized gain on sale of
investments 56,608 28,242 12,999
Net change in unrealized appreciation
(depreciation) of investments 400,522 (87,198) (92,672)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 745,509 232,566 556,724
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (110,305) (112,378) (298,145)
CLASS B (5,029) (654) 0
INSTITUTIONAL CLASS (173,045) (178,490) (338,252)
From net realized gain on sale of
investments
CLASS A 0 0 0
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 0
In excess of net realized gain
CLASS A 0 0 0
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 314,870 163,757 252,284
Reinvestment of dividends - Class A 79,325 83,037 186,973
Cost of shares redeemed - Class A (404,864) (558,651) (9,944,744)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (10,669) (311,857) (9,505,487)
Proceeds from shares sold - Class B 312,092 151,670 25
Reinvestment of dividends - Class B 3,756 163 0
Cost of shares redeemed - Class B (614) (29,618) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 315,234 122,215 25
Proceeds from shares sold -
Institutional Class 657,667 1,266,444 9,318,896
Reinvestment of dividends -
Institutional Class 51,080 60,571 104,965
Cost of shares redeemed - Institutional
Class (1,598,810) (1,038,276) (2,185,445)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (890,063) 288,739 7,238,416
INCREASE (DECREASE) IN NET ASSETS (128,368) 40,141 (2,346,719)
NET ASSETS:
Beginning net assets 11,998,562 11,958,421 14,305,140
ENDING NET ASSETS $11,870,194 $11,998,562 $11,958,421
- -------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $34,768,827 FOR CLASS A AND
$108,895,455 FOR THE INSTITUTIONAL CLASS, AS A RESULT OF THE MERGER OF THE
PACIFICA CALIFORNIA TAX-EXEMPT FUND. SEE NOTE 1.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $4,994,478 FOR CLASS A AND $9,693,700
FOR THE INSTITUTIONAL CLASS, AS A RESULT OF THE MERGER OF THE PACIFICA
SHORT-TERM CALIFORNIA TAX-EXEMPT FUND. SEE NOTE 1.
The accompanying notes are an integral part of these financial statements.
---------------------
49
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
OREGON TAX-FREE FUND
-------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX
MONTHS MONTHS FOR THE
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 879,682 $ 936,894 $ 2,213,042
Net realized gain on sale of
investments 176,200 503,644 226,397
Net change in unrealized appreciation
(depreciation) of investments 1,294,301 (719,337) (105,222)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,350,183 721,201 2,334,217
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (678,384) (738,895) (1,836,397)
CLASS B (7,572) (1,673) 0
INSTITUTIONAL CLASS (193,726) (196,326) (376,645)
From net realized gain on sale of
investments
CLASS A 0 (64,075) 0
CLASS B 0 (68) 0
INSTITUTIONAL CLASS 0 (16,029) 0
In excess of net realized gain
CLASS A 0 0 0
CLASS B 0 0 0
INSTITUTIONAL CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 574,601 705,873 1,339,221
Reinvestment of dividends - Class A 488,901 603,836 1,177,977
Cost of shares redeemed - Class A (4,496,495) (4,118,599) (19,138,811)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (3,432,993) (2,808,890) (16,621,613)
Proceeds from shares sold - Class B 288,000 290,001 25
Reinvestment of dividends - Class B 5,352 1,006 0
Cost of shares redeemed - Class B 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 293,352 291,007 25
Proceeds from shares sold -
Institutional Class 521,589 737,208 10,508,693
Reinvestment of dividends -
Institutional Class 41,718 46,958 74,828
Cost of shares redeemed - Institutional
Class (995,485) (1,060,607) (1,972,408)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (432,178) (276,441) 8,611,113
INCREASE (DECREASE) IN NET ASSETS (2,101,318) (3,090,189) (7,889,300)
NET ASSETS:
Beginning net assets 39,097,550 42,187,739 50,077,039
ENDING NET ASSETS $36,996,232 $39,097,550 $42,187,739
- ----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------
50
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
---------------------
51
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
ARIZONA TAX-FREE FUND (1)
----------------------------------
CLASS A
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (5) 1996
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.44 $10.45 $10.71
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.24 0.24 0.48
Net realized and unrealized gain (loss) on investments 0.42 (0.01) (0.09)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.66 0.23 0.39
LESS DISTRIBUTIONS:
Dividends from net investment income (0.24) (0.24) (0.48)
Distributions from net realized gain 0.00 0.00 (0.17)
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.24) (0.24) (0.65)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $10.86 $10.44 $10.45
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.34% 2.18% 3.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $5,603 $5,744 $7,331
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.60% 0.60% 0.78%
Ratio of net investment income to average net assets 4.42% 4.54% 4.45%
Portfolio turnover 72% 77% 42%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 2.00% 1.58% 1.46%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 3.02% 3.56% 3.77%
- --------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS THE ARIZONA INTERMEDIATE TAX-FREE FUND OF
WESTCORE TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON,
N.A. FROM ITS COMMENCEMENT OF OPERATIONS ON MARCH 2, 1992 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(3) THE FUND COMMENCED OPERATIONS ON MARCH 2, 1992.
(4) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
- ---------------------
52
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
ARIZONA TAX-FREE FUND (1) (CONT.)
----------------------------------------------------------------------------------------------
CLASS A (CONT.) CLASS B
---------------------------------------------------------- ----------------------------------
FOUR (UNAUDITED)
MONTHS PERIOD SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAY 31, MAY 31, MAY 31, MAY 31, SEPT. 30, MARCH 31, SEPT. 30,
1995 (2) 1995 1994 1993 1992 (3) 1997 1997 (5) 1996 (4)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.68 $10.48 $10.64 $10.09 $10.00 $10.07 $10.07 $10.00
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.17 0.51 0.50 0.49 0.09 0.19 0.11 0.01
Net realized and
unrealized gain (loss)
on investments 0.06 0.23 (0.15) 0.55 0.08 0.41 (0.00) 0.07
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.23 0.74 0.35 1.04 0.17 0.60 0.11 0.08
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.20) (0.53) (0.50) (0.49) (0.08) (0.19) (0.11) (0.01)
Distributions from net
realized gain 0.00 (0.01) (0.01) 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.20) (0.54) (0.51) (0.49) (0.08) (0.19) (0.11) (0.01)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $10.71 $10.68 $10.48 $10.64 $10.09 $10.48 $10.07 10.07
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 6.55%** 7.35% 3.28% 10.50% 7.02%** 6.00% 1.09% 0.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $24,622 $24,581 $25,153 $22,430 $4,690 $916 $182 $20
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.40% 0.31% 0.20% 0.68% 1.30% 1.30% 1.16%
Ratio of net investment
income to average net
assets 4.73% 4.89% 4.72% 4.98% 4.32% 3.54% 3.83% 3.59%
Portfolio turnover 62% 14% 28% 4% 0% 72% 77% 42%
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.35% 1.13% 1.00% 1.18% 2.08% 4.95% 2.96% 1.81%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 3.83% 4.16% 4.03% 4.00% 2.92% (0.11)% 2.17% 2.94%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS THE ARIZONA INTERMEDIATE TAX-FREE FUND OF
WESTCORE TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON,
N.A. FROM ITS COMMENCEMENT OF OPERATIONS ON MARCH 2, 1992 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(3) THE FUND COMMENCED OPERATIONS ON MARCH 2, 1992.
(4) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
---------------------
53
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
ARIZONA TAX-FREE FUND (1) (CONT.)
----------------------------------
INSTITUTIONAL CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (4) 1996 (2)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.44 $10.44 $10.71
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25 0.25 0.49
Net realized and unrealized gain (loss) on investments 0.42 0.00 (0.10)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.67 0.25 0.39
LESS DISTRIBUTIONS:
Dividends from net investment income (0.25) (0.25) (0.49)
Distributions from net realized gain 0.00 0.00 (0.17)
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.25) (0.25) (0.66)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $10.86 $10.44 $10.44
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.45% 2.38% 3.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $13,087 $14,349 $15,577
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.40% 0.40% 0.48%
Ratio of net investment income to average net assets 4.62% 4.73% 4.63%
Portfolio turnover 72% 77% 42%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.74% 1.50% 1.20%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 3.28% 3.63% 3.91%
- --------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS THE ARIZONA INTERMEDIATE TAX-FREE FUND OF
WESTCORE TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON,
N.A. FROM ITS COMMENCEMENT OF OPERATIONS ON MARCH 2, 1992 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON OCTOBER 1,
1995.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
- ---------------------
54
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE BOND FUND
----------------------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1997 1997 (4) 1996 (3) 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.72 $10.78 $11.05 $9.84 $11.20 $10.41 $10.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.27 0.27 0.40 0.55 0.56 0.56 0.53
Net realized and
unrealized gain (loss)
on investments 0.45 (0.06) (0.27) 1.21 (1.36) 0.84 0.41
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.72 0.21 0.13 1.76 (0.80) 1.40 0.94
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.26) (0.27) (0.40) (0.55) (0.56) (0.56) (0.53)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 (0.05) 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.26) (0.27) (0.40) (0.55) (0.56) (0.61) (0.53)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $11.18 $10.72 $10.78 $11.05 $9.84 $11.20 $10.41
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 6.86% 1.98% 1.27% 18.24% (7.27)% 13.82% 10.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $292,453 $280,788 $300,702 $296,417 $305,847 $532,848 $242,409
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.68% 0.68% 0.69% 0.68% 0.65% 0.64% 0.19%
Ratio of net investment
income to average net
assets 4.88% 5.07% 4.99% 5.18% 5.35% 5.05% 5.67%
Portfolio turnover 6% 4% 22% 9% 3% 7% 18%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.15% 1.07% 1.07% 1.07% 1.06% 1.01% 1.07%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.41% 4.68% 4.61% 4.79% 4.94% 4.68% 4.79%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS THE ARIZONA INTERMEDIATE TAX-FREE FUND OF
WESTCORE TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON,
N.A. FROM ITS COMMENCEMENT OF OPERATIONS ON MARCH 2, 1992 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON OCTOBER 1,
1995.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
---------------------
55
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE BOND FUND (CONT.)
----------------------------------------------
CLASS B
----------------------------------------------
(UNAUDITED) NINE
SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30, DEC. 31,
1997 1997 (4) 1996 (1) 1995 (2)
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.93 $10.98 $11.26 $10.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.24 0.24 0.35 0.48
Net realized and unrealized gain (loss) on
investments 0.46 (0.05) (0.28) 1.26
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.70 0.19 0.07 1.74
LESS DISTRIBUTIONS:
Dividends from net investment income (0.24) (0.24) (0.35) (0.48)
Distributions from net realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.24) (0.24) (0.35) (0.48)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $11.39 $10.93 $10.98 $11.26
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.44% 1.76% 0.73% 17.72%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $65,726 $47,170 $40,099 $26,916
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.32% 1.32% 1.35% 1.32%
Ratio of net investment income to average
net assets 4.21% 4.41% 4.32% 4.31%
Portfolio turnover 6% 4% 22% 9%
- ----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses 1.79% 1.72% 1.73% 1.72%
Ratio of net investment income (loss) to
average net assets prior to waived fees and
reimbursed expenses 3.74% 4.01% 3.94% 3.91%
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(2) THE CLASS B SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
- ---------------------
56
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE BOND FUND
(CONT.) CALIFORNIA TAX-FREE INCOME FUND
---------------------------------- ----------------------------------------------
INSTITUTIONAL CLASS CLASS A
---------------------------------- ----------------------------------------------
(UNAUDITED) (UNAUDITED) NINE
SIX MONTHS SIX MONTHS PERIOD SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, DEC. 31,
1997 1997 (4) 1996 (3) 1997 1997 (4) 1996 (1) 1995
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.75 $10.80 $10.69 $10.27 $10.26 $10.35 $9.84
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.27 0.28 0.04 0.20 0.19 0.29 0.38
Net realized and
unrealized gain (loss)
on investments 0.45 (0.05) 0.11 0.18 0.01 (0.09) 0.51
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.72 0.23 0.15 0.38 0.20 0.20 0.89
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.27) (0.28) (0.04) (0.20) (0.19) (0.29) (0.38)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.27) (0.28) (0.04) (0.20) (0.19) (0.29) (0.38)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $11.20 $10.75 $10.80 $10.45 $10.27 $10.26 $10.35
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 6.78% 2.10% 1.24% 3.71% 1.97% 2.01% 9.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $84,850 $95,451 $106,896 $69,121 $67,647 $82,359 $77,965
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.63% 0.63% 0.67% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment
income to average net
assets 4.94% 5.12% 5.20% 3.79% 3.73% 3.83% 3.70%
Portfolio turnover 6% 4% 22% 32% 14% 48% 31%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.97% 0.95% 1.20% 1.30% 1.18% 1.14% 1.22%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.60% 4.80% 4.67% 3.14% 3.20% 3.34% 3.13%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(2) THE CLASS B SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
---------------------
57
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE INCOME FUND
(CONT.)
----------------------------------
CLASS A (CONT.)
----------------------------------
PERIOD
YEAR ENDED YEAR ENDED ENDED
DEC. 31, DEC. 31, DEC. 31,
1994 1993 1992 (4)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.36 $10.05 $10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.40 0.39 0.02
Net realized and unrealized gain (loss) on investments (0.52) 0.31 0.05
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.12) 0.70 0.07
LESS DISTRIBUTIONS:
Dividends from net investment income (0.40) (0.39) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.40) (0.39) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $9.84 $10.36 $10.05
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) (1.10)% 7.10% 0.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $48,998 $52,873 $7,821
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.16% 0.34% 0.00%
Ratio of net investment income to average net assets 4.03% 3.74% 3.56%
Portfolio turnover 33% 11% 0%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.21% 1.23% 1.55%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 2.98% 2.85% 2.01%
- --------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(3) THE FUND OPERATED AS THE QUALITY TAX-EXEMPT INCOME FUND OF WESTCORE
TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM
ITS COMMENCEMENT OF OPERATIONS ON JANUARY 15, 1993 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(4) THE FUND COMMENCED OPERATIONS ON NOVEMBER 18, 1992.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
- ---------------------
58
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE INCOME FUND
(CONT.) NATIONAL TAX-FREE FUND (3)
---------------------------------- ----------------------------------------------
INSTITUTIONAL CLASS CLASS A
---------------------------------- ----------------------------------------------
(UNAUDITED) (UNAUDITED) FOUR
SIX MONTHS SIX MONTHS PERIOD SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED ENDED ENDED ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30,
1997 1997 (5) 1996 (2) 1997 1997 (5) 1996 1995 (1)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.11 $10.10 $10.06 $15.17 $15.24 $15.34 $15.28
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.20 0.19 0.02 0.38 0.37 0.72 0.24
Net realized and
unrealized gain (loss)
on investments 0.17 0.01 0.04 0.60 (0.07) (0.10) 0.08
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.37 0.20 0.06 0.98 0.30 0.62 0.32
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.20) (0.19) (0.02) (0.38) (0.37) (0.72) (0.26)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.20) (0.19) (0.02) (0.38) (0.37) (0.72) (0.26)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $10.28 $10.11 $10.10 $15.77 $15.17 $15.24 $15.34
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 3.66% 2.00% 0.60% 6.51% 1.95% 4.03% 6.53%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $6,913 $7,061 $10,066 $4,687 $4,526 $4,827 $14,305
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.60% 0.60% 0.55% 0.35% 0.35% 0.42% 0.35%
Ratio of net investment
income to average net
assets 3.86% 3.73% 3.06% 4.85% 4.81% 4.69% 4.65%
Portfolio turnover 32% 14% 48% 34% 86% 73% 86%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.15% 1.05% 0.92% 2.92% 2.11% 1.42% 1.85%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 3.31% 3.28% 2.69% 2.28% 3.05% 3.69% 3.15%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(3) THE FUND OPERATED AS THE QUALITY TAX-EXEMPT INCOME FUND OF WESTCORE
TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM
ITS COMMENCEMENT OF OPERATIONS ON JANUARY 15, 1993 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(4) THE FUND COMMENCED OPERATIONS ON NOVEMBER 18, 1992.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
---------------------
59
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE FUND (3) (CONT.)
----------------------------------
CLASS A (CONT.)
----------------------------------
PERIOD
YEAR ENDED YEAR ENDED ENDED
MAY 31, MAY 31, MAY 31,
1995 1994 1993 (4)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $14.98 $15.17 $15.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.68 0.64 0.17
Net realized and unrealized gain (loss) on
investments 0.32 (0.17) 0.15
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.00 0.47 0.32
LESS DISTRIBUTIONS:
Dividends from net investment income (0.70) (0.64) (0.15)
Distributions from net realized gain 0.00 (0.02) 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.70) (0.66) (0.15)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $15.28 $14.98 $15.17
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.97% 3.07% 5.65%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $14,458 $13,600 $7,457
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.35% 0.27% 0.25%
Ratio of net investment income to average net
assets 4.59% 4.29% 3.88%
Portfolio turnover 23% 19% 18%
- -----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.51% 1.58% 1.99%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 3.43% 2.99% 2.14%
- -----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON OCTOBER 1,
1995.
(3) THE FUND OPERATED AS THE QUALITY TAX-EXEMPT INCOME FUND OF WESTCORE
TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM
ITS COMMENCEMENT OF OPERATIONS ON JANUARY 15, 1993 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(4) THE FUND COMMENCED OPERATIONS ON JANUARY 15, 1993.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 1.
The accompanying notes are an integral part of these financial statements.
- ---------------------
60
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE FUND (3) (CONT.)
----------------------------------------------------------------------
CLASS B INSTITUTIONAL CLASS
---------------------------------- ----------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (5) 1996 (1) 1997 1997 (5) 1996 (2)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $10.01 $10.06 $10.00 $15.17 $15.24 $15.34
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.21 0.06 0.00 0.37 0.37 0.71
Net realized and
unrealized gain (loss)
on investments 0.39 (0.05) 0.06 0.59 (0.07) (0.10)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.60 0.01 0.06 0.96 0.30 0.61
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.21) (0.06) 0.00 (0.37) (0.37) (0.71)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.21) (0.06) 0.00 (0.37) (0.37) (0.71)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $10.40 $10.01 $10.06 $15.76 $15.17 $15.24
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 6.03% 0.10% 0.60% 6.44% 1.95% 4.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $443 $119 $0 $6,740 $7,354 $7,132
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.10% 1.10% 0.00% 0.35% 0.35% 0.36%
Ratio of net investment
income to average net
assets 3.89% 3.80% 1.83% 4.86% 4.82% 4.66%
Portfolio turnover 34% 86% 73% 34% 86% 73%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 14.84% 13.74% 0.00% 2.60% 2.03% 1.45%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (9.85)% (8.84)% 1.83% 2.61% 3.14% 3.57%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(2) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON OCTOBER 1,
1995.
(3) THE FUND OPERATED AS THE QUALITY TAX-EXEMPT INCOME FUND OF WESTCORE
TRUST AND WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM
ITS COMMENCEMENT OF OPERATIONS ON JANUARY 15, 1993 UNTIL IT WAS
REORGANIZED AS A SERIES OF PACIFICA FUNDS TRUST ON OCTOBER 1, 1995,
WHEN FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") ASSUMED
INVESTMENT ADVISORY RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF
FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM
WAS RENAMED AS WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND
OPERATED AS A SERIES OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED
AS A SERIES OF STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN
CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION, EXISTING
INVESTOR SHARES WERE CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB
ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES.
(4) THE FUND COMMENCED OPERATIONS ON JANUARY 15, 1993.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 1.
The accompanying notes are an integral part of these financial statements.
---------------------
61
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
OREGON TAX-FREE FUND (3)
----------------------------------
CLASS A
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (4) 1996
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.29 $16.42 $16.38
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.39 0.37 0.79
Net realized and unrealized gain (loss) on investments 0.64 (0.10) 0.04
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.03 0.27 0.83
LESS DISTRIBUTIONS:
Dividends from net investment income (0.39) (0.37) (0.79)
Distributions from net realized gain 0.00 (0.03) 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.39) (0.40) (0.79)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $16.93 $16.29 $16.42
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.35% 1.65% 5.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $28,350 $30,635 $33,676
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.60% 0.60% 0.85%
Ratio of net investment income to average net assets 4.62% 4.52% 4.87%
Portfolio turnover 30% 90% 27%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.43% 1.31% 1.15%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 3.79% 3.81% 4.57%
- --------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(2) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(3) THE FUND OPERATED AS THE OREGON TAX-EXEMPT FUND OF WESTCORE TRUST AND
WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
PACIFICA FUNDS TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS
WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND OPERATED AS A SERIES
OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, EXISTING INVESTOR SHARES WERE
CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB ASSUMED INVESTMENT
ADVISORY RESPONSIBILITIES.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
- ---------------------
62
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
OREGON TAX-FREE FUND (3) (CONT.)
----------------------------------------------------------------------------------
CLASS A (CONT.) CLASS B
---------------------------------------------- ----------------------------------
FOUR (UNAUDITED)
MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED ENDED ENDED
SEPT. 30, MAY 31, MAY 31, MAY 31, SEPT. 30, MARCH 31, SEPT. 30,
1995 (1) 1995 1994 1993 1997 1997 (4) 1996 (2)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $16.47 $16.17 $16.79 $16.07 $10.00 $10.07 $10.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.28 0.82 0.84 0.86 0.20 0.17 0.00
Net realized and
unrealized gain (loss)
on investments (0.08) 0.39 (0.43) 0.76 0.37 (0.05) 0.07
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.20 1.21 0.41 1.62 0.57 0.12 0.07
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.29) (0.87) (0.82) (0.86) (0.20) (0.17) 0.00
Distributions from net
realized gain 0.00 (0.04) (0.21) (0.04) 0.00 (0.02) 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.29) (0.91) (1.03) (0.90) (0.20) (0.19) 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $16.38 $16.47 $16.17 $16.79 $10.37 $10.00 $10.07
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 3.67%** 7.92% 2.33% 10.36% 5.74% 1.17% 0.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $50,077 $52,245 $53,846 $45,435 $595 $287 $0
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.70% 0.70% 0.62% 0.60% 1.28% 1.30% 0.00%
Ratio of net investment
income to average net
assets 5.01% 5.19% 4.90% 5.34% 3.82% 3.23% 1.83%
Portfolio turnover 57% 15% 22% 6% 30% 90% 27%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.01% 0.90% 0.84% 0.91% 2.98% 2.15% 0.00%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.70% 4.99% 4.68% 5.03% 2.12% 2.38% 1.83%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(2) THE CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(3) THE FUND OPERATED AS THE OREGON TAX-EXEMPT FUND OF WESTCORE TRUST AND
WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
PACIFICA FUNDS TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS
WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND OPERATED AS A SERIES
OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, EXISTING INVESTOR SHARES WERE
CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB ASSUMED INVESTMENT
ADVISORY RESPONSIBILITIES.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
---------------------
63
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
OREGON TAX-FREE FUND (3) (CONT.)
----------------------------------
INSTITUTIONAL CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 (2) 1996 (1)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.28 $16.42 $16.38
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.40 0.39 0.72
Net realized and unrealized gain (loss) on investments 0.65 (0.11) 0.04
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.05 0.28 0.76
LESS DISTRIBUTIONS:
Dividends from net investment income (0.40) (0.39) (0.72)
Distributions from net realized gain 0.00 (0.03) 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.40) (0.42) (0.72)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $16.93 $16.28 $16.42
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 6.52% 1.69% 5.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $8,051 $8,175 $8,512
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.40% 0.40% 0.63%
Ratio of net investment income to average net assets 4.81% 4.72% 4.41%
Portfolio turnover 30% 90% 27%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.34% 1.24% 0.93%
Ratio of net investment income (loss) to average net
assets prior to waived fees and reimbursed expenses 3.87% 3.88% 4.11%
- --------------------------------------------------------------------------------------------
</TABLE>
(1) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON OCTOBER 1,
1995.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND OPERATED AS THE OREGON TAX-EXEMPT FUND OF WESTCORE TRUST AND
WAS ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
PACIFICA FUNDS TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS
WELLS FARGO INVESTMENT MANAGEMENT, INC. THE FUND OPERATED AS A SERIES
OF PACIFICA FUNDS TRUST UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, EXISTING INVESTOR SHARES WERE
CONVERTED INTO CLASS A SHARES OF THE FUND AND WFB ASSUMED INVESTMENT
ADVISORY RESPONSIBILITIES.
The accompanying notes are an integral part of these financial statements.
- ---------------------
64
<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 Arizona Tax-Free, California Tax-Free Bond, California
Tax-Free Income, National Tax-Free, and Oregon Tax-Free Funds (the "Funds"),
each, with the exception of the National Tax-Free Fund, a non-diversified series
of the Company. The National Tax-Free Fund is 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 Arizona Tax-Free, National Tax-Free,
and Oregon Tax-Free Funds were established to acquire all of the assets and
assume all of the liabilities of the Pacifica Arizona Tax-Exempt, National
Tax-Exempt, and Oregon Tax-Exempt Funds (previously, the Arizona Intermediate
Tax-Free, Quality Tax-Exempt Income, and Oregon Tax-Exempt Funds of Westcore
Trust), respectively (collectively, the "Predecessor Funds"). Additionally, the
Stagecoach California Tax-Free Bond and California Tax-Free Income Funds
acquired all of the assets and assumed all of the liabilities of the Pacifica
California Tax-Exempt and California Short-Term Tax-Exempt Funds, respectively.
These acquisitions were accomplished in separate tax-free exchanges for shares
of the respective Fund. All performance and financial data for the Arizona
Tax-Free, National Tax-Free, and Oregon Tax-Free Funds for periods prior to
September 6, 1996 refers to the Predecessor Funds.
Each of the Funds, with the exception of the California Tax-Free Income Fund,
offers Class A, Class B, and Institutional Class shares. The California Tax-Free
Income Fund offers Class A and Institutional Class shares. The three classes of
shares differ principally in the applicable sales charges, distribution fees,
shareholder servicing fees 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
---------------------
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 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
Securities for which the primary market is a national securities exchange or the
National Association of Securities Dealers Automated Quotation ("NASDAQ") system
are valued at the last reported sales price on the day of valuation. U.S.
Government obligations are valued at the reported bid price. In the absence of
any sale of such securities on the valuation date and in the case of other
securities, excluding debt instruments maturing in 60 days or less, the
valuations are based on latest quoted bid prices. Debt securities maturing in 60
days or less are valued at amortized cost. The amortized cost method involves
valuing a security at its cost, plus accretion of discount or minus amortization
of premium over the period until maturity, which approximates market value.
Securities for which quotations are not readily available are valued at fair
value as determined by policies set by the Company's Board of Directors.
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").
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.
- ---------------------
66
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It is
the policy of each Fund of the 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. The
following Funds had net capital loss carryforwards at December 31, 1996:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARD
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
California Tax-Free Bond Fund 2002 $1,585,509
2003 478,564
California Tax-Free Income Fund 2002 29,650
2003 87,402
National Tax-Free Fund 2003 30,982
</TABLE>
The capital loss carryforwards shown above include carryforwards from Pacifica
Funds which were merged into the Funds in 1996. The Company's Board of Directors
intends to offset net capital gains with each capital loss carryforward, and no
capital gain distribution shall be made until each such carryforward has been
fully utilized or expires.
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 a
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 Funds have been charged for expenses incurred in connection with the
organization and initial registration of the Funds and/or classes of shares.
Certain of these expenses are being
---------------------
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
amortized by the Funds on a straight-line basis over 60 months from the date
each Fund and/or class commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into separate advisory contracts on behalf of the Funds
with Wells Fargo Bank, N.A. ("WFB"). Pursuant to the contracts, WFB has agreed
to provide the Funds with daily portfolio management. Under the contracts, WFB
is entitled to be paid a monthly advisory fee at an annual rate of 0.50% of the
average daily net assets of each Fund.
The Company has entered into contracts on behalf of each Fund with WFB, whereby
WFB is responsible for providing custody and portfolio accounting services for
the Funds. Pursuant to the contracts, 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 each Fund. For portfolio accounting services,
WFB is entitled to a monthly base fee from each Fund of $2,000 plus an annual
fee of 0.07% of the first $50 million of each Fund's average daily net assets,
0.045% of the next $50 million, and 0.02% of each Fund's average daily net
assets in excess of $100 million.
The Company has entered into a contract on behalf of the Funds with WFB, whereby
WFB provides transfer agency services for the Funds. Under the transfer agency
contract, WFB is entitled to receive transfer agency fees at an annual rate of
0.14% of the average daily net assets of the Class A and Class B shares of the
Arizona Tax-Free, California Tax Free Bond, National Tax-Free, and Oregon
Tax-Free Funds, 0.14% of the average daily net assets of the Class A shares of
the California Tax-Free Income Fund, and 0.06% of the average daily net assets
of the Institutional Class shares of the Funds.
The transfer agency fees paid on behalf of the Funds for the six months ended
September 30, 1997, were as follows:
<TABLE>
<CAPTION>
TRANSFER TRANSFER TRANSFER AGENCY
AGENCY FEES AGENCY FEES FEES
FUND CLASS A CLASS B INSTITUTIONAL CLASS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Tax-Free Fund $ 3,970 $ 326 $ 4,077
California Tax-Free Bond Fund 198,561 38,985 27,082
California Tax-Free Income Fund 45,569 N/A 1,997
National Tax-Free Fund 3,178 168 2,595
Oregon Tax-Free Fund 20,586 277 2,414
</TABLE>
The Company has entered into contracts on behalf of the Funds with WFB, whereby
WFB has agreed to provide shareholder services for the Funds. Pursuant to the
contracts, 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
- ---------------------
68
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Class B shares of the California Tax-Free Bond Fund and the Class A shares of
the California Tax-Free Income Fund, 0.25% of the average daily net assets of
the Institutional Class shares of the California Tax-Free Bond and California
Tax-Free Income Funds, and 0.25% of the average daily net assets of each of the
classes of the Arizona Tax-Free, National Tax-Free, and Oregon Tax-Free Funds.
The shareholder servicing fees paid on behalf of the Funds for the six months
ended September 30, 1997, were as follows:
<TABLE>
<CAPTION>
SHAREHOLDER SHAREHOLDER SHAREHOLDER
SERVICING FEES SERVICING FEES SERVICING FEES
FUND CLASS A CLASS B INSTITUTIONAL CLASS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Tax-Free Fund $ 7,089 $ 582 $ 16,986
California Tax-Free Bond Fund 425,487 83,540 112,843
California Tax-Free Income Fund 97,648 N/A 8,320
National Tax-Free Fund 5,676 319 8,897
Oregon Tax-Free Fund 36,760 492 10,060
</TABLE>
The Company has entered into administration agreements on behalf of the Funds
whereby WFB as administrator and Stephens Inc. ("Stephens") as co-administrator
provide each 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 each Fund's average daily net assets.
The Company has adopted separate Distribution Plans for Class A and Class B
shares of the Funds pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan").
The Plan for the Class A shares of the Arizona Tax-Free, National Tax-Free and
Oregon Tax-Free Funds provides that each such Fund may pay to Stephens up to
0.05% of its average daily net assets attributable to the Class A shares as
compensation for distribution-related services or as reimbursement for
distribution-related expenses. The Plan for Class A shares of the California
Tax-Free Bond and California Tax-Free Income Funds provides that each such Fund
may defray all or part of the cost of preparing, printing and distributing
prospectuses and other promotional materials by paying for costs incurred on an
annual basis of up to 0.05% of the average daily net assets attributable to the
Class A shares of each such Fund.
Under the Plan for Class B shares of the Funds, each 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 0.75% of
the average daily net assets attributable to the Class B shares of the Arizona
Tax-Free, National Tax-Free, and Oregon Tax-Free Funds and up to 0.70% of the
average daily net assets attributable to the Class B shares of the California
Tax-Free Bond Fund.
Each Fund may participate in joint distribution activities with other Funds,
---------------------
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 Funds for the six months ended September
30, 1997, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
FEES FEES
FUND CLASS A CLASS B
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Arizona Tax-Free Fund $ 1,418 $ 1,746
California Tax-Free Bond Fund 70,914 194,926
California Tax-Free Income Fund 16,275 N/A
National Tax-Free Fund 958 958
Oregon Tax-Free Fund 7,352 1,478
</TABLE>
WAIVED FEES AND REIMBURSED EXPENSES
The following amounts of fees and expenses were waived or reimbursed for the six
months ended September 30, 1997:
<TABLE>
<CAPTION>
EXPENSES REIMBURSED FEES WAIVED
BY BY
FUND STEPHENS WFB
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Arizona Tax-Free Fund $25,793 $113,105
California Tax-Free Bond Fund 0 943,572
California Tax-Free Income Fund 0 230,171
National Tax-Free Fund 76,717 79,682
Oregon Tax-Free Fund 0 162,984
</TABLE>
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, each Fund to ensure that
the total Fund operating expenses did not exceed, on an annual basis, 0.60%,
0.68%, 0.65%, 0.35% and 0.60% of the average daily net assets of the Class A
shares and 0.40%, 0.63%, 0.60%, 0.35% and 0.40% of the average daily net assets
of the Institutional Class shares of the Arizona Tax-Free, California Tax-Free
Bond, California Tax-Free Income, National Tax-Free, and Oregon Tax-Free Funds,
respectively, through August 31, 1997.
Certain officers and one director of the Company are also officers of Stephens.
As of September 30, 1997, Stephens owned 7 shares of the Arizona Tax-Free Fund,
6,914 shares of the California Tax-Free Bond Fund, 12,037 shares of the
California Tax-Free Income Fund and 6 shares each of the National Tax-Free and
Oregon Tax-Free Funds.
- ---------------------
70
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Stephens has retained $2,566,666 as sales charges from the proceeds of Class A
shares sold and $419,434 from the proceeds of Class B shares redeemed by the
Company for the six months ended September 30, 1997. Wells Fargo Securities
Inc., a subsidiary of WFB, received $2,556,342 as sales charges from the
proceeds of Class A shares sold and $419,434 from the proceeds of Class B shares
redeemed by the Company for the six months ended September 30, 1997.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date), for each Fund
for the six months ended September 30, 1997, were as follows:
<TABLE>
<CAPTION>
ARIZONA CALIFORNIA CALIFORNIA NATIONAL OREGON
AGGREGATE PURCHASES TAX-FREE TAX-FREE TAX-FREE TAX-FREE TAX-FREE
AND SALES FUND BOND FUND INCOME FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total purchases at cost $13,550,681 $26,027,453 $22,070,255 $3,916,423 $11,008,505
Total sales proceeds 15,306,240 26,312,078 23,834,929 5,093,089 15,350,727
</TABLE>
---------------------
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. 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, each Fund was
authorized to issue 100 million shares of $0.001 par value capital stock for
each class of shares. Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
ARIZONA TAX-FREE FUND
<S> <C> <C> <C>
---------------------------------------
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 27,278 8,351 115,400
Shares issued in reinvestment of dividends -- Class A 8,574 10,155 31,157
Shares redeemed -- Class A (70,144) (170,242) (1,743,227)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -- CLASS A (34,292) (151,736) (1,596,670)
Shares sold -- Class B 79,043 17,936 1,999
Shares issued in reinvestment of dividends -- Class B 535 88 0
Shares redeemed -- Class B (10,204) (1,997) 0
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -- CLASS B 69,374 16,027 1,999
Shares sold -- Institutional Class 60,599 75,496 1,818,383
Shares issued in reinvestment of dividends --
Institutional Class 169 111 584
Shares redeemed -- Institutional Class (230,141) (192,725) (327,320)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (169,373) (117,118) 1,491,647
</TABLE>
- ---------------------
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE BOND FUND
<S> <C> <C> <C>
------------------------------------------
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPT. 30, MARCH 31, SEPT. 30, 1996
1997 1997 (1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 2,052,597 1,057,092 6,024,391
Shares issued in reinvestment of dividends --
Class A 425,973 453,949 685,330
Shares redeemed -- Class A (2,497,044) (3,229,101) (5,635,998)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (18,474) (1,718,060) 1,073,723
Shares sold -- Class B 1,714,316 879,927 1,559,230
Shares issued in reinvestment of dividends --
Class B 76,219 63,451 73,909
Shares redeemed -- Class B (336,966) (278,515) (372,322)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS B 1,453,569 664,863 1,260,817
Shares sold -- Institutional Class 48,307 231,443 10,233,225
Shares issued in reinvestment of dividends --
Institutional Class 15,105 17,209 39
Shares redeemed -- Institutional Class (1,369,843) (1,263,973) (338,844)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (1,306,431) (1,015,321) 9,894,420
</TABLE>
(1) "SHARES SOLD" INCLUDES 3,249,037 FOR CLASS A AND 10,183,266 FOR THE
INSTITUTIONAL CLASS, AS A RESULT OF THE MERGER OF THE PACIFICA CALIFORNIA
TAX-EXEMPT FUND.
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE INCOME FUND
<S> <C> <C> <C>
------------------------------------------
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPT. 30, MARCH 31, SEPT. 30, 1996
1997 1997 (2)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,361,669 1,071,029 4,281,601
Shares issued in reinvestment of dividends --
Class A 106,146 121,088 199,260
Shares redeemed -- Class A (1,437,387) (2,630,399) (3,992,269)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 30,428 (1,438,282) 488,592
Shares sold -- Institutional Class 81,742 45,913 1,002,052
Shares issued in reinvestment of dividends --
Institutional Class 2,480 2,624 0
Shares redeemed -- Institutional Class (110,310) (346,660) (5,243)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (26,088) (298,123) 996,809
</TABLE>
(2) "SHARES SOLD" INCLUDES 488,921 FOR CLASS A AND 963,872 FOR THE INSTITUTIONAL
CLASS, AS A RESULT OF THE MERGER OF THE PACIFICA SHORT-TERM CALIFORNIA
TAX-EXEMPT FUND.
---------------------
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
<TABLE>
<CAPTION>
NATIONAL TAX-FREE FUND
<S> <C> <C> <C>
------------------------------------------
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED FOR THE
SEPT. 30, MARCH 31, YEAR ENDED
1997 1997 SEPT. 30, 1996
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 20,170 12,514 16,315
Shares issued in reinvestment of dividends --
Class A 5,132 5,388 12,154
Shares redeemed -- Class A (26,364) (36,331) (644,452)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (1,062) (18,429) (615,983)
Shares sold -- Class B 30,369 14,844 3
Shares issued in reinvestment of dividends --
Class B 367 16 0
Shares redeemed -- Class B (59) (2,938) 0
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS B 30,677 11,922 3
Shares sold -- Institutional Class 42,218 80,275 603,337
Shares issued in reinvestment of dividends --
Institutional Class 3,306 3,930 6,841
Shares redeemed -- Institutional Class (102,816) (67,239) (142,281)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (57,292) 16,966 467,897
</TABLE>
<TABLE>
<CAPTION>
OREGON TAX-FREE FUND
<S> <C> <C> <C>
---------------------------------------
<CAPTION>
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1997 1997 1996
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 34,484 42,353 80,771
Shares issued in reinvestment of dividends --
Class A 29,456 36,482 71,455
Shares redeemed -- Class A (270,504) (248,818) (1,158,830)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (206,564) (169,983) (1,006,604)
Shares sold -- Class B 28,061 28,610 3
Shares issued in reinvestment of dividends --
Class B 582 99 0
Shares redeemed -- Class B 0 0 0
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS B 28,643 28,709 3
Shares sold -- Institutional Class 31,127 44,591 633,826
Shares issued in reinvestment of dividends --
Institutional Class 2,515 2,838 4,545
Shares redeemed -- Institutional Class (60,123) (63,838) (119,874)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (26,481) (16,409) 518,497
</TABLE>
- ---------------------
74
<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
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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 TFA AR (11/97)
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<S> <C>
STAGECOACH
FUNDS-REGISTERED TRADEMARK-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
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-C- 1997 Stagecoach Funds
