<PAGE>
- ------------------
ANNUAL
- ------------------
REPORT
- ------------------
MONEY
- ------------------
MARKET
- ------------------
FUNDS
- ------------------
Money Market
Mutual Fund
Prime
Money Market
Mutual Fund
Treasury
Money Market
Mutual Fund
INSTITUTIONAL CLASS
MARCH 31, 1997
<PAGE>
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER Q & A
Money Market Mutual Fund -- Institutional Class 3
Prime Money Market Mutual Fund -- Institutional Class 3
Treasury Money Market Mutual Fund -- Institutional Class 3
PORTFOLIOS OF INVESTMENTS
Money Market Mutual Fund 5
Prime Money Market Mutual Fund 9
Treasury Money Market Mutual Fund 12
STAGECOACH FUNDS
Statement of Assets and Liabilities 15
Statements of Operations 16
Statements of Changes in Net Assets 18
Financial Highlights 20
Notes to Financial Statements 27
Independent Auditors' Report 39
LIST OF ABBREVIATIONS 41
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>
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- ---------------------
ii
<PAGE>
LETTER TO SHAREHOLDERS
- ------------------
TO OUR SHAREHOLDERS:
Welcome to the 1997 Stagecoach Funds Annual Report.
This Report, dated March 31, 1997, comes to you six months after the previous
Annual Report dated September 30, 1996. As we explained in the Shareholder
Letter at that time, for administrative reasons, the Stagecoach Funds have
shifted their financial year-end to March 31. This change does not otherwise
affect the operation, nor does it affect the investment objectives, of the
Funds.
The recently completed reporting period saw market volatility and the long-
expected increase in the federal funds target rate. After months of debate on
the rate of economic growth and the potential for increased rates of inflation,
the Federal Reserve Board acted in March to raise rates by 0.25%. The Fed's
action capped a six month period which showed only modest total return for the
fixed-income market.
The equity market, as measured by the Standard & Poor's 500 Index, fell 7.20% in
March from its January high. While this environment offered some challenges, we
feel that much of the "bad news" has been greatly exaggerated. For example, the
S&P 500 Index still enjoyed a 1997 year-to-date return through March 31 of
2.69%. The positive return for the six-month period ended March 31, 1997 was
11.24%. The news is similar concerning the further market correction that
occurred after the reporting period. As of early May, the market had recouped
much of its March and April losses.
Of course, equity issues do not rise and fall in unison. Large company stocks
have fared well recently as investor dollars sought their greater security and
reduced volatility. Various sectors such as technology and finance stocks have
fluctuated acutely in recent months. Value stocks have outperformed growth
stocks, in contrast to recent years.
It is all too easy to be confused by such a variety of returns and apparently
conflicting information. That's why it is so important to truly understand the
investment philosophies and long-range goals that govern your Fund. We have
always felt that the more you understand your investment, the less likely you
are to be unduly concerned with short-term developments.
The following pages discuss what factors have affected the returns for the
Stagecoach Funds during the reporting period. These commentaries were written
for you -- our shareholders -- as part of the Stagecoach Funds commitment to
education, information and service as we help you meet your financial goals.
STAGECOACH FUNDS
MAY 1997
---------------------
1
<PAGE>
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2
<PAGE>
STAGECOACH MONEY MARKET MUTUAL FUNDS
- --------------------
INVESTMENT ADVISER Q&A
MONEY MARKET MUTUAL FUND -- INSTITUTIONAL CLASS
PRIME MONEY MARKET MUTUAL FUND -- INSTITUTIONAL CLASS
TREASURY MONEY MARKET MUTUAL FUND -- INSTITUTIONAL CLASS
WHAT WERE THE SEVEN-DAY CURRENT YIELDS AS OF MARCH 31, 1997?
Seven-day current yields for the Funds for the period ended March 31, 1997 and
for the period ended September 30, 1996, are as follows:
<TABLE>
<CAPTION>
MARCH 31, SEPT. 30,
FUND 1997 1996
<S> <C> <C>
- ----------------------------------------------------
Money Market Mutual Fund 4.80% 4.88%
Prime MMMF 5.32% 5.29%
Treasury MMMF 5.28% 5.10%
</TABLE>
THE FEDERAL FUNDS TARGET RATE, SET BY THE FEDERAL RESERVE, IS THE GREATEST
INFLUENCE ON MONEY MARKET YIELDS. THE RATE REMAINED UNCHANGED THROUGHOUT MOST OF
THE YEAR AND YET MONEY MARKET YIELDS FLUCTUATED. WHY?
There are a number of reasons. If the economy is expected to grow rapidly, rates
usually move higher in anticipation of a Fed rate hike. Cash flows into money
market mutual funds are another important factor. The dynamics of supply and
demand as managers invest shareholders' cash can drive yields higher or drag
them lower, particularly for variable rate securities. It is important to keep
an eye on the general trend in yields rather than draw conclusions based on a
single-day "snap shot" of current yields. The Wall Street Journal's Market Diary
section, for example, publishes a useful graph tracking interest rates for
investors interested in following this sort of information.
WHAT DOES "WEIGHTED AVERAGE MATURITY" TELL US ABOUT THE FUNDS? HOW HAS IT
CHANGED DURING THE PERIOD?
Weighted average maturity is a measure of the average length of time before
securities in a portfolio mature on a dollar for dollar basis. It is one of the
measures of a Fund's sensitivity to interest rate changes. Funds with longer
maturities generally are more sensitive to interest rate fluctuations.
Typically, for a money market mutual fund, managers will increase maturity to
lock in higher rates or shorten maturity if they anticipate higher rates being
available soon. Market forces may also make one range relatively more attractive
than another. For the most part, the weighted average maturity for this Fund has
been fairly steady and in the short-to-intermediate range.
SINCE THE FEDERAL RESERVE RAISED THE FEDERAL FUNDS TARGET RATE IN MARCH, DO YOU
EXPECT FURTHER ACTION?
The Federal Reserve has rarely effected only a single increase when changing
monetary policy, so additional increases are likely. However, the federal funds
target rate is relatively high compared to the Consumer Price Index (the prime
measure of inflation), so we believe that substantial increases are unlikely.
---------------------
3
<PAGE>
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- ---------------------
4
<PAGE>
MONEY MARKET MUTUAL FUND
- -------------------------------------------------
PORTFOLIO OF INVESTMENTS - MARCH 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSITS - 11.40%
$50,000,000 Barclays Bank Plc 5.79 % 01/16/98 $ 49,995,212
100,000,000 Canadian Imperial Holdings Inc 5.32 04/22/97 99,998,293
54,000,000 Commerzbank Finance Inc 5.39 05/30/97 53,999,521
100,000,000 Commerzbank Finance Inc 5.80 01/15/98 100,022,745
7,000,000 Societe Generale (Yankee) 5.72 10/20/97 7,004,260
50,000,000 Societe Generale (Yankee) 5.74 10/27/97 50,013,640
50,000,000 Societe Generale (Yankee) 5.79 01/13/98 49,990,425
100,000,000 Societe Generale (Yankee) 5.81 01/13/98 99,990,425
100,000,000 Union Bank of California 5.50 04/28/97 100,000,000
--------------
TOTAL CERTIFICATES OF DEPOSITS $ 611,014,521
COMMERCIAL PAPER - 65.34%
$75,000,000 Abbey National North America 5.46 %(F) 04/02/97 $ 74,988,625
100,000,000 ABN-Ambro North America Finance Inc 5.34 (F) 04/08/97 99,896,167
50,000,000 ABN-Ambro North America Finance Inc 5.35 (F) 04/15/97 49,895,972
50,000,000 ABN-Ambro North America Finance Inc 5.50 (F) 12/08/97 48,082,639
60,000,000 American Express Corp 5.32 (F) 05/12/97 59,636,467
50,000,000 American Express Corp 5.35 (F) 09/19/97 48,729,375
20,000,000 ANZ Delaware Inc 5.31 (F) 04/03/97 19,994,100
50,000,000 Asset Securitization Cooperative Corp++ 5.27 (F) 05/19/97 49,648,667
75,000,000 Asset Securitization Cooperative Corp++ 5.31 (F) 04/10/97 74,900,438
27,000,000 Asset Securitization Cooperative Corp++ 5.35 (F) 04/15/97 26,943,825
30,000,000 Asset Securitization Cooperative Corp++ 5.40 (F) 04/16/97 29,932,500
75,000,000 Bankers Trust New York Corp 5.35 (F) 08/15/97 73,484,167
40,000,000 Bankers Trust New York Corp 5.47 (F) 11/25/97 38,553,489
42,045,000 Barclays US Funding Corp 5.62 (F) 04/11/97 41,979,363
25,000,000 Cargill Inc 5.29 (F) 05/13/97 24,845,708
40,000,000 CC USA Inc++ 5.28 (F) 04/21/97 39,882,667
25,000,000 Ciesco LP++ 5.27 (F) 04/14/97 24,952,424
35,000,000 Ciesco LP++ 5.30 (F) 05/12/97 34,788,736
50,000,000 Ciesco LP++ 5.33 (F) 05/22/97 49,622,458
100,000,000 CIT Group Holdings Inc 5.26 (F) 04/22/97 99,693,167
80,000,000 CIT Group Holdings Inc 5.55 (F) 04/03/97 79,975,333
</TABLE>
---------------------
5
<PAGE>
MONEY MARKET MUTUAL FUND
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$50,000,000 CIT Group Holdings Inc 5.60 %(F) 12/23/97 $ 49,951,530
40,000,000 Corporate Asset Funding Co Inc++ 5.30 (F) 05/15/97 39,740,889
20,000,000 Corporate Asset Funding Co Inc++ 5.59 (F) 04/29/97 19,913,044
40,000,000 Corporate Asset Funding Co Inc++ 5.60 (F) 05/06/97 39,782,222
45,000,000 Corporate Receivables Corp++ 5.34 (F) 04/08/97 44,953,275
75,000,000 Corporate Receivables Corp++ 5.34 (F) 04/14/97 74,855,375
40,000,000 Corporate Receivables Corp++ 5.35 (F) 04/03/97 39,988,178
50,000,000 Corporate Receivables Corp++ 5.60 (F) 05/06/97 49,727,778
50,000,000 Du Pont Corp 5.29 (F) 05/07/97 49,735,500
50,000,000 Du Pont Corp 5.29 (F) 05/12/97 49,698,764
17,000,000 Du Pont Corp 5.30 (F) 05/06/97 16,912,403
75,000,000 Ford Motor Credit Corp 5.28 (F) 04/18/97 74,813,000
150,000,000 Ford Motor Credit Corp 5.34 (F) 05/01/97 149,332,500
75,000,000 General Electric Capital Corp 5.33 (F) 04/28/97 74,700,188
100,000,000 General Electric Capital Corp 5.33 (F) 05/05/97 99,496,611
32,000,000 Glaxo Holdings Plc 5.27 (F) 05/27/97 31,737,671
20,000,000 Glaxo Holdings Plc 5.35 (F) 04/17/97 19,952,444
75,000,000 Goldman Sachs & Co 5.30 (F) 04/07/97 74,933,750
100,000,000 Goldman Sachs & Co 5.55 (F) 04/04/97 99,953,750
66,356,000 Greenwich Asset Funding Inc++ 5.35 (F) 04/28/97 66,089,747
35,081,000 Greenwich Asset Funding Inc++ 5.36 (F) 04/07/97 35,049,661
20,000,000 Greenwich Asset Funding Inc++ 5.38 (F) 05/30/97 19,823,656
50,000,000 Household Finance Corp 5.46 (F) 05/28/97 50,000,000
125,000,000 Merrill Lynch & Co 5.30 (F) 05/14/97 124,208,681
50,000,000 Merrill Lynch & Co 5.33 (F) 04/04/97 49,977,792
70,000,000 Merrill Lynch & Co 6.75 (F) 04/01/97 70,000,000
100,000,000 National Australia Funding Inc 5.34 (F) 04/16/97 99,777,500
29,375,000 Prefco Corp 5.34 (F) 05/13/97 29,191,994
45,000,000 Preferred Receivables Funding Corp 5.46 (F) 04/21/97 44,863,500
51,274,000 Receivables Capital Corp++ 5.35 (F) 05/13/97 50,953,965
70,000,000 Receivables Capital Corp++ 5.36 (F) 04/15/97 69,854,089
25,000,000 Riverwoods Funding Corp 5.25 (F) 04/25/97 24,912,500
35,000,000 Riverwoods Funding Corp 5.34 (F) 04/16/97 34,922,125
46,000,000 RTZ America Inc++ 5.27 (F) 04/14/97 45,912,459
50,000,000 RTZ America Inc++ 5.29 (F) 04/09/97 49,941,222
50,000,000 RTZ America Inc++ 5.29 (F) 04/18/97 49,875,097
58,400,000 Sheffield Receivables Corp++ 5.33 (F) 04/10/97 58,322,182
</TABLE>
- ------------------------
6
<PAGE>
MONEY MARKET MUTUAL FUND
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$50,000,000 Sweden (Kingdom of) 5.44 %(F) 11/28/97 $ 48,179,111
47,000,000 Transamerica Corp 5.32 (F) 04/01/97 47,000,000
100,000,000 Unifunding Corp 5.34 (F) 05/09/97 99,436,333
100,000,000 Walt Disney Co 5.35 (F) 07/07/97 98,558,472
18,000,000 WCP Funding Inc++ 5.35 (F) 04/14/97 17,965,225
25,000,000 WCP Funding Inc++ 5.35 (F) 04/15/97 24,947,983
--------------
TOTAL COMMERCIAL PAPER $3,500,368,453
CORPORATE SHORT-TERM NOTES - 7.09%
$100,000,000 Bankers Trust New York Corp 5.60 % 11/07/97 $ 99,932,310
100,000,000 Comercial Bank of Detroit 5.34 02/05/98 99,932,370
95,000,000 FCC National Bank 5.62 02/20/98 94,954,068
85,000,000 First Bank N.A. 5.39 03/06/98 84,960,050
--------------
TOTAL CORPORATE SHORT-TERM NOTES $ 379,778,798
SHORT-TERM FEDERAL AGENCIES - 1.87%
$100,000,000 Federal National Mortgage Assoc 5.56 % 11/21/97 $ 99,951,600
VARIABLE AND FLOATING RATE BONDS - 7.87%
$50,000,000 Abbey National North America 5.32 % 05/21/97 $ 49,993,024
50,000,000 Abbey National North America 5.43 07/17/97 49,965,650
50,000,000 American Express Co 5.41 01/09/98 50,000,000
47,000,000 Federal Home Loan Bank 5.58 08/08/97 46,968,298
125,000,000 PNC Funding Corp 5.34 05/15/97 124,907,600
100,000,000 Sony Capital Corp 5.51 09/04/97 100,000,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 421,834,572
U.S. TREASURY BILLS - 1.87%
$100,000,000 U.S. Treasury Bills 4.98 %(F) 04/03/97 $ 99,971,181
</TABLE>
---------------------
7
<PAGE>
MONEY MARKET MUTUAL FUND
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 4.93%
$149,693,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.50 % 04/01/97 $ 149,693,000
33,761,000 HSBC Securities Inc Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.37 04/01/97 33,761,000
56,309,000 JP Morgan Securities Inc Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.30 04/01/97 56,309,000
24,466,000 Morgan Stanley & Co Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.20 04/01/97 24,466,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 264,229,000
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $5,377,148,125)* (Note 1) 100.37% $5,377,148,125
Other Assets and Liabilities, Net (0.37) (19,887,547)
------ --------------
TOTAL NET ASSETS 100.00% $5,357,260,578
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(F) YIELD TO MATURITY.
++ THESE SECURITIES ARE NOT REGISTERED UNDER THE SECURITIES ACT OF 1933.
RULE 144A UNDER THAT ACT PERMITS THESE SECURITIES TO BE RESOLD IN
TRANSACTIONS EXEMPT FROM REGISTRATION TO QUALIFIED INSTITUTIONAL
BUYERS. THESE SECURITIES WERE DEEMED LIQUID BY THE INVESTMENT ADVISER
IN ACCORDANCE WITH PROCEDURES APPROVED BY THE FUND'S BOARD OF
DIRECTORS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
- ------------------------
8
<PAGE>
PRIME MONEY MARKET MUTUAL FUND
- -------------------------------------------------
PORTFOLIO OF INVESTMENTS - MARCH 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSITS - 16.30%
$60,000,000 Commerzbank Finance Inc 5.80 % 01/15/98 $ 60,013,647
30,000,000 Deutsche Bank (Yankee) 6.11 07/11/97 30,000,000
25,000,000 Huntington National Bank 5.33 04/14/97 25,000,000
40,000,000 Northern Trust Co 5.50 11/21/97 40,000,000
30,000,000 Societe Generale (Yankee) 6.09 07/30/97 30,000,000
50,000,000 Union Bank of California 6.00 04/04/97 50,000,000
--------------
TOTAL CERTIFICATES OF DEPOSITS $ 235,013,647
COMMERCIAL PAPER - 45.48%
$50,000,000 Asset Securitization Cooperative Corp++ 5.34 %(F) 04/14/97 $ 49,903,583
10,000,000 Associates Corp of North America 5.32 (F) 09/25/97 9,738,433
12,000,000 CC USA Inc++ 5.29 (F) 05/27/97 11,901,253
7,000,000 CC USA Inc++ 5.29 (F) 08/26/97 6,848,794
25,000,000 Ciesco LP 5.30 (F) 04/03/97 24,992,639
20,000,000 CIT Group Holdings Inc 5.26 (F) 04/22/97 19,938,633
30,000,000 Corporate Asset Funding Co Inc++ 5.25 (F) 04/04/97 29,986,875
50,000,000 Daimler Benz North America Corp 5.27 (F) 07/21/97 49,187,542
60,000,000 General Electric Capital Corp 5.33 (F) 04/28/97 59,760,150
40,000,000 Goldman Sachs & Co 5.34 (F) 05/28/97 39,661,800
25,000,000 IBM Credit Corp 5.30 (F) 04/04/97 24,988,958
25,000,000 Merrill Lynch & Co 5.28 (F) 06/04/97 24,765,333
45,000,000 Merrill Lynch & Co 5.34 (F) 06/06/97 44,559,450
18,800,000 Prefco Corp 5.27 (F) 04/25/97 18,733,949
55,000,000 Receivables Capital Corp++ 5.36 (F) 04/15/97 54,885,356
50,000,000 Reed Elsevier Inc++ 5.33 (F) 05/13/97 49,689,083
15,000,000 Riverwoods Funding Corp 5.34 (F) 04/16/97 14,966,625
37,000,000 Sweden (Kingdom of) 5.34 (F) 07/29/97 36,346,888
30,000,000 Swedish Export Credit Corp 5.34 (F) 05/14/97 29,808,650
55,000,000 Transamerica Financial Corp 5.33 (F) 04/22/97 54,828,998
--------------
TOTAL COMMERCIAL PAPER $ 655,492,992
</TABLE>
---------------------
9
<PAGE>
PRIME MONEY MARKET MUTUAL FUND
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE NOTES - 8.68%
$60,000,000 Barclays Bank Plc 5.62 % 02/20/98 $ 59,970,990
30,000,000 Beta Finance Inc 5.80 01/15/98 30,000,000
35,000,000 Society National Bank 6.13 11/21/97 35,106,619
--------------
TOTAL CORPORATE NOTES $ 125,077,609
FEDERAL AGENCIES - 1.02%
$15,000,000 Federal Farm Credit Bank 5.54 % 08/19/97 $ 14,694,917
VARIABLE AND FLOATING RATE BONDS - 20.80%
$60,000,000 Abbey National North America 5.61 % 10/10/97 $ 59,959,386
60,000,000 Bankers Trust New York Corp 5.60 11/20/97 59,973,576
50,000,000 CIT Group Holdings Inc 5.58 11/20/97 49,961,300
50,000,000 Federal Farm Credit Bank 5.54 11/06/97 49,971,000
30,000,000 First Bank of North Dakota 5.38 12/17/97 29,978,868
50,000,000 PNC Bank Corp 5.34 07/02/97 49,960,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 299,804,130
REPURCHASE AGREEMENTS - 7.60%
$72,419,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.50 % 04/01/97 $ 72,419,000
7,151,000 HSBC Securities Inc Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.37 04/01/97 7,151,000
15,000,000 JP Morgan Securities Inc Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.30 04/01/97 15,000,000
15,000,000 Morgan Stanley & Co Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.20 04/01/97 15,000,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 109,570,000
</TABLE>
- ------------------------
10
<PAGE>
PRIME MONEY MARKET MUTUAL FUND
<TABLE>
<C> <S> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $1,439,653,295)* (Note 1) 99.88% $1,439,653,295
Other Assets and Liabilities, Net 0.12 1,690,522
------ --------------
TOTAL NET ASSETS 100.00% $1,441,343,817
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
++ THESE SECURITIES ARE NOT REGISTERED UNDER THE SECURITIES ACT OF 1933.
RULE 144A UNDER THAT ACT PERMITS THESE SECURITIES TO BE RESOLD IN
TRANSACTIONS EXEMPT FROM REGISTRATION TO QUALIFIED INSTITUTIONAL
BUYERS. THESE SECURITIES WERE DEEMED LIQUID BY THE INVESTMENT ADVISER
IN ACCORDANCE WITH PROCEDURES APPROVED BY THE FUND'S BOARD OF
DIRECTORS.
(F) YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
---------------------
11
<PAGE>
TREASURY MONEY MARKET MUTUAL FUND
- -------------------------------------------------
PORTFOLIO OF INVESTMENTS - MARCH 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 58.94%
U.S. TREASURY BILLS - 33.69%
$215,000,000 U.S. Treasury Bills 4.94 %(F) 04/17/97 $ 214,501,267
195,000,000 U.S. Treasury Bills 4.98 (F) 04/03/97 194,942,419
75,000,000 U.S. Treasury Bills 5.14 (F) 05/01/97 74,685,000
30,000,000 U.S. Treasury Bills 5.18 (F) 05/15/97 29,817,400
100,000,000 U.S. Treasury Bills 5.20 (F) 05/29/97 99,184,778
--------------
$ 613,130,864
U.S. TREASURY NOTES - 25.25%
$29,600,000 U.S. Treasury Notes 5.50 % 09/30/97 $ 29,608,025
50,000,000 U.S. Treasury Notes 5.63 06/30/97 49,955,366
183,900,000 U.S. Treasury Notes 5.88 07/31/97 184,193,206
135,000,000 U.S. Treasury Notes 6.50 05/15/97 135,144,139
59,850,000 U.S. Treasury Notes 7.88 01/15/98 60,773,240
--------------
$ 459,673,976
TOTAL U.S. TREASURY SECURITIES $1,072,804,840
(Cost $1,072,804,840)
</TABLE>
- ------------------------
12
<PAGE>
TREASURY MONEY MARKET MUTUAL FUND
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 41.17%
$172,575,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.50 % 04/01/97 $ 172,575,000
187,452,000 HSBC Securities Inc Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.37 04/01/97 187,452,000
232,766,000 JP Morgan Securities Inc Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 6.30 04/01/97 232,766,000
156,530,000 Morgan Stanley & Co Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 6.20 04/01/97 156,530,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 749,323,000
(Cost $749,323,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $1,822,127,840)* (Note 1) 100.11% $1,822,127,840
Other Assets and Liabilities, Net (0.11) (1,936,332)
------ --------------
TOTAL NET ASSETS 100.00% $1,820,191,508
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(F) YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
---------------------
13
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
- ------------------------
14
<PAGE>
STATEMENT OF ASSETS & LIABILITIES - MARCH 31, 1997
<TABLE>
<CAPTION>
PRIME TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
MUTUAL FUND MUTUAL FUND MUTUAL FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) (includes repurchase
agreements of $749,323,000 for the
Treasury Money Market Mutual Fund) $5,377,148,125 $1,439,653,295 $1,822,127,840
Cash 1,209 1,043 1,484
Receivables:
Interest 13,485,487 9,546,939 6,944,677
Organization expenses, net of
amortization 22,529 47,805 114,138
Prepaid expenses 239,896 199,837 446,262
TOTAL ASSETS 5,390,897,246 1,449,448,919 1,829,634,401
LIABILITIES
Payables:
Distribution to shareholders 19,498,486 5,867,709 6,609,856
Due to sponsor and distributor (Note
2) 2,651,988 400,531 512,522
Due to adviser (Note 2) 11,158,762 1,595,466 1,919,921
Other 327,432 241,396 400,594
TOTAL LIABILITIES 33,636,668 8,105,102 9,442,893
TOTAL NET ASSETS
$5,357,260,578 $1,441,343,817 $1,820,191,508
NET ASSETS CONSIST OF:
Paid-in capital $5,358,875,881 $1,441,486,118 $1,820,190,491
Undistributed net realized gain (loss)
on investments (1,615,303) (142,301) 1,017
TOTAL NET ASSETS $5,357,260,578 $1,441,343,817 $1,820,191,508
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE PER SHARE
Net assets - Class A $4,640,147,686 $ 277,043,797 $ 66,486,164
Shares outstanding - Class A 4,640,420,884 277,132,958 66,507,745
Net asset value and offering price per
share - Class A $ 1.00 $ 1.00 $ 1.00
Net assets - Class E N/A N/A $ 820,657,027
Shares outstanding - Class E N/A N/A 820,657,027
Net asset value and offering price per
share - Class E N/A N/A $ 1.00
Net assets - Institutional Class $ 9,331,703 $ 538,194,693 $ 449,647,328
Shares outstanding - Institutional Class 9,322,837 538,324,527 449,775,318
Net asset value and offering price per
share - Institutional Class $ 1.00 $ 1.00 $ 1.00
Net assets - Class S/Service Class $ 707,781,189 $ 626,105,327 $ 483,400,989
Shares outstanding - Class S/Service
Class 707,819,915 626,274,744 483,415,134
Net asset value and offering price per
share - Class S/Service Class $ 1.00 $ 1.00 $ 1.00
INVESTMENT AT COST $5,377,148,125 $1,439,653,295 $1,822,127,840
- -------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
15
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
MONEY MARKET MUTUAL FUND
-----------------------------
FOR THE SIX FOR THE NINE
MONTHS ENDED MONTHS ENDED
MARCH 31, SEPT. 30,
1997 1996
- --------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest $134,418,916 $157,416,270
TOTAL INVESTMENT INCOME 134,418,916 157,416,270
EXPENSES (NOTE 2)
Advisory fees 9,835,346 11,593,678
Administration fees 980,282 872,577
Custody fees 414,360 489,652
Shareholder servicing fees 7,194,978 8,436,247
Portfolio accounting fees 522,389 625,939
Transfer agency fees 1,687,292 1,927,196
Distribution fees 3,097,961 4,067,866
Amortization of organization expenses 8,108 12,191
Legal and audit fees 261,415 388,102
Registration fees 328,411 242,858
Directors' fees 2,490 3,743
Shareholder reports 124,483 187,179
Other 54,331 50,607
TOTAL EXPENSES 24,511,846 28,897,835
Less:
Waived fees and reimbursed expenses (3,603,285) (3,884,553)
Net Expenses 20,908,561 25,013,282
NET INVESTMENT INCOME 113,510,355 132,402,988
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on sale of
investments 215,989 740,929
NET GAIN (LOSS) ON INVESTMENTS 215,989 740,929
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $113,726,344 $133,143,917
- --------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ---------------------
16
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
PRIME MONEY MARKET MUTUAL TREASURY MONEY MARKET MUTUAL
FUND FUND
--------------------------- ----------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31, SEPT. 30,
1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $41,277,920 $76,400,197 $48,772,796 $105,450,049
TOTAL INVESTMENT INCOME 41,277,920 76,400,197 48,772,796 105,450,049
EXPENSES (NOTE 2)
Advisory fees 1,880,042 3,399,237 2,270,318 4,516,348
Administration fees 400,123 1,230,872 483,198 1,745,759
Custody fees 125,587 159,830 151,657 252,183
Shareholder servicing fees 1,046,569 3,335,692 1,345,644 4,608,283
Portfolio accounting fees 180,938 20,916 212,691 0
Transfer agency fees 283,831 43,131 285,007 82,755
Distribution fees 70,734 62,301 60,389 13,064
Amortization of organization
expenses 6,832 0 12,694 7,954
Legal and audit fees 18,800 39,536 16,408 47,635
Registration fees 115,588 134,969 209,163 218,636
Directors' fees 2,300 2,912 6,201 2,910
Shareholder reports 8,400 0 8,269 12,326
Other 12,166 115,064 6,682 63,074
TOTAL EXPENSES 4,151,910 8,544,460 5,068,321 11,570,927
Less:
Waived fees and reimbursed expenses (1,159,325) (2,901,214) (1,401,326) (4,051,564)
Net Expenses 2,992,585 5,643,246 3,666,995 7,519,363
NET INVESTMENT INCOME 38,285,335 70,756,951 45,105,801 97,930,686
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on sale of
investments (39,213) 0 1,017 39,272
NET GAIN (LOSS) ON INVESTMENTS (39,213) 0 1,017 39,272
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $38,246,122 $70,756,951 $45,106,818 $ 97,969,958
- ---------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
17
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET MUTUAL FUND
------------------------------------------------------
FOR THE NINE
FOR THE SIX MONTHS ENDED FOR THE
MONTHS ENDED SEPT. 30, 1996 YEAR ENDED
MARCH 31, 1997 (1) DEC. 31, 1995
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 113,510,355 $ 132,402,988 $ 163,787,562
Net realized gain (loss) on sale of
investments 215,989 740,929 (1,181,926)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 113,726,344 133,143,917 162,605,636
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (98,818,921) (113,221,991) (150,704,682)
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS (276,412) (62,154) 0
CLASS S/SERVICE CLASS (14,415,022) (19,122,485) (13,082,880)
In excess of net investment income
CLASS A 0 0 0
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS 0 0 0
CLASS S/SERVICE CLASS 0 0 0
From realized gain on sale of
investments
CLASS A 0 0 0
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS 0 0 0
CLASS S/SERVICE CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 1,566,360,081 2,061,107,506 2,284,498,553
Reinvestment of dividends - Class A 93,188,135 111,610,934 146,963,258
Cost of shares redeemed - Class A (819,490,109) (1,266,041,632) (1,881,800,747)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 840,058,107 906,676,808 549,661,064
Proceeds from shares sold - Class E N/A N/A N/A
Reinvestment of dividends - Class E N/A N/A N/A
Cost of shares redeemed - Class E N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A N/A
Proceeds from shares sold -
Institutional Class 2,187,477 19,474,700 0
Reinvestment of dividends -
Institutional Class 279,884 0 0
Cost of shares redeemed -
Institutional Class (11,728,408) (882,494) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (9,261,047) 18,592,206 0
Proceeds from shares sold - Class
S/Service Class 813,386,639 1,063,771,625 1,211,993,101
Reinvestment of dividends - Class
S/Service Class 14,334,388 19,240,628 10,735,965
Cost of shares redeemed - Class
S/Service Class (819,204,427) (1,002,807,161) (603,630,843)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS 8,516,600 80,205,092 619,098,223
INCREASE (DECREASE) IN NET ASSETS 839,529,649 1,006,211,393 1,167,577,361
NET ASSETS:
Beginning net assets 4,517,730,929 3,511,519,536 2,343,942,175
ENDING NET ASSETS $5,357,260,578 $ 4,517,730,929 $ 3,511,519,536
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $194,880,059 FOR CLASS A AND
$19,474,700 FOR THE INSTITUTIONAL CLASS, AS A RESULT OF THE PACIFICA MONEY
MARKET FUND AND PACIFICA ASSET PRESERVATION FUND MERGERS.
The accompanying notes are an integral part of these financial statements.
- ---------------------
18
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME MONEY MARKET MUTUAL FUND
-------------------------------------------------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1997 SEPT. 30, 1996 SEPT. 30, 1995
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 38,285,335 $ 70,756,951 $ 31,628,024
Net realized gain (loss) on sale of
investments (39,213) 0 0
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 38,246,122 70,756,951 31,628,024
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (7,008,067) (14,569,914) 0
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS (13,890,812) (21,372,473) (299,809)
CLASS S/SERVICE CLASS (17,386,456) (34,814,564) (31,328,215)
In excess of net investment income
CLASS A 0 (17,515) 0
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS 0 (29,352) 0
CLASS S/SERVICE CLASS 0 (56,259) 0
From realized gain on sale of
investments
CLASS A 0 0 0
CLASS E N/A N/A N/A
INSTITUTIONAL CLASS 0 0 0
CLASS S/SERVICE CLASS 0 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 332,738,149 831,565,415 0
Reinvestment of dividends - Class A 240,495 916,433 0
Cost of shares redeemed - Class A (320,827,816) (567,563,822) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 12,150,828 264,918,026 0
Proceeds from shares sold - Class E N/A N/A N/A
Reinvestment of dividends - Class E N/A N/A N/A
Cost of shares redeemed - Class E N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A N/A
Proceeds from shares sold -
Institutional Class 1,593,666,413 5,079,644,286 104,661,000
Reinvestment of dividends -
Institutional Class 1,847,923 176,187 0
Cost of shares redeemed -
Institutional Class (1,481,265,875) (4,686,437,789) (74,055,000)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 114,248,461 393,382,684 30,606,000
Proceeds from shares sold - Class
S/Service Class 1,211,666,872 2,007,890,215 8,252,511,223
Reinvestment of dividends - Class
S/Service Class 90,409 117,361 0
Cost of shares redeemed - Class
S/Service Class (1,326,393,380) (1,881,188,708) (8,203,819,000)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS (114,636,099) 126,818,868 48,692,223
INCREASE (DECREASE) IN NET ASSETS 11,723,977 785,016,452 79,298,223
NET ASSETS:
Beginning net assets 1,429,619,840 644,603,388 565,305,165
ENDING NET ASSETS $ 1,441,343,817 $ 1,429,619,840 $ 644,603,388
- ----------------------------------------------------------------------------------------------------
<CAPTION>
TREASURY MONEY MARKET MUTUAL FUND
--------------------------------------------------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1997 SEPT. 30, 1996 SEPT. 30, 1995
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 45,105,801 $ 97,930,686 $ 49,027,757
Net realized gain (loss) on sale of
investments 1,017 39,272 0
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 45,106,818 97,969,958 49,027,757
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,327,300) (2,763,079) 0
CLASS E (905,615) 0 0
INSTITUTIONAL CLASS (12,730,969) (62,003,165) (265,033)
CLASS S/SERVICE CLASS (30,141,918) (33,164,442) (48,762,724)
In excess of net investment income
CLASS A 0 (293) 0
CLASS E 0 0 0
INSTITUTIONAL CLASS 0 (14,701) 0
CLASS S/SERVICE CLASS 0 (4,695) 0
From realized gain on sale of
investments
CLASS A (1,075) 0 0
CLASS E 0 0 0
INSTITUTIONAL CLASS (12,378) 0 0
CLASS S/SERVICE CLASS (25,819) 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 101,803,141 265,329,368 0
Reinvestment of dividends - Class A 117,496 303,969 0
Cost of shares redeemed - Class A (89,139,342) (211,928,115) 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 12,781,295 53,705,222 0
Proceeds from shares sold - Class E 892,833,080 0 0
Reinvestment of dividends - Class E 0 0 0
Cost of shares redeemed - Class E (72,176,053) 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E 820,657,027 0 0
Proceeds from shares sold -
Institutional Class 998,327,768 4,920,884,222 120,817,000
Reinvestment of dividends -
Institutional Class 978,929 1,018,863 0
Cost of shares redeemed -
Institutional Class (1,090,336,130) (4,417,665,197) (84,374,000)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (91,029,433) 504,237,888 36,443,000
Proceeds from shares sold - Class
S/Service Class 2,043,006,993 3,893,787,080 20,388,947,721
Reinvestment of dividends - Class
S/Service Class 348,407 227,942 0
Cost of shares redeemed - Class
S/Service Class (2,900,254,375) (3,555,407,931) (20,077,871,000)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS (856,898,975) 338,607,091 311,076,721
INCREASE (DECREASE) IN NET ASSETS (114,528,342) 896,569,784 347,519,721
NET ASSETS:
Beginning net assets 1,934,719,850 1,038,150,066 690,630,345
ENDING NET ASSETS $ 1,820,191,508 $ 1,934,719,850 $ 1,038,150,066
- ----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
---------------------
19
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET MUTUAL FUND
------------------------------------------
CLASS A
------------------------------------------
SIX NINE
MONTHS MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1997 1996 (1) 1995 1994
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
--------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.03 0.05 0.04
Net realized and unrealized gain (loss) on
investments 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.03 0.05 0.04
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.03) (0.05) (0.04)
Distributions from net realized gain 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.05) (0.04)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL RETURN (NOT ANNUALIZED) 2.36 % 3.55 % 5.34 % 3.74 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $4,640,148 $3,799,908 $2,892,621 $2,343,942
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.75 % 0.75 % 0.75 % 0.69 %
Ratio of net investment income to average
net assets 4.71 % 4.66 % 5.13 % 4.12 %
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses 0.90 % 0.88 % 0.83 % 0.89 %
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 4.56 % 4.53 % 5.05 % 3.92 %
- ------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(2) THE CLASS A SHARES COMMENCED OPERATIONS ON JULY 1, 1992.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(4) THE CLASS S SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
The accompanying notes are an integral part of these financial statements.
- ---------------------
20
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET MUTUAL FUND (CONT.)
---------------------------------------------------------------------------
CLASS A (CONT.) INSTITUTIONAL CLASS CLASS S
-------------------- -------------------- -------------------------------
SIX SIX SIX NINE
YEAR MONTHS MONTHS PERIOD MONTHS MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, DEC. 31,
1993 1992 (2) 1997 1996 (3) 1997 1996 (1) 1995 (4)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.02 0.02 0.00 0.02 0.03 0.03
Net realized and
unrealized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.02 0.02 0.00 0.02 0.03 0.03
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.02) (0.02) (0.00) (0.02) (0.03) (0.03)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.02) (0.02) (0.00) (0.02) (0.03) (0.03)
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (NOT
ANNUALIZED) 2.70 % 1.50 % 2.38 % 0.29 % 2.02 % 3.03 % 2.73 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $317,474 $236,269 $9,332 $18,592 $707,781 $699,231 $618,899
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.58 % 0.20 % 0.73 % 0.74 % 1.43 % 1.42 % 1.43 %
Ratio of net investment
income to average net
assets 2.67 % 2.98 % 4.71 % 5.03 % 4.02 % 3.98 % 4.40 %
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.00 % 0.94 % 0.82 % 0.77 % 1.56 % 1.55 % 1.53 %
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 2.25 % 2.24 % 4.62 % 5.00 % 3.89 % 3.85 % 4.30 %
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(2) THE CLASS A SHARES COMMENCED OPERATIONS ON JULY 1, 1992.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON SEPTEMBER 6,
1996.
(4) THE CLASS S SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
The accompanying notes are an integral part of these financial statements.
---------------------
21
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET
MUTUAL FUND (1)
--------------------
CLASS A
--------------------
SIX
MONTHS YEAR
ENDED ENDED
MARCH 31, SEPT. 30,
1997 1996 (2)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.05
Net realized and unrealized gain (loss) on investments 0.00 0.00
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.05)
Distributions from net realized gain 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05)
--------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
--------- ---------
--------- ---------
TOTAL RETURN (NOT ANNUALIZED) 2.49 % 5.09 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $277,044 $264,900
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.55 % 0.55 %
Ratio of net investment income to average net assets 4.95 % 5.06 %
- ----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.75 % 0.68 %
Ratio of net investment income to average net assets prior to
waived fees and reimbursed expenses 4.75 % 4.93 %
- ----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS "PACIFIC AMERICAN LIQUID ASSETS, INC." THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN
MONEY MARKET PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND
ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF STAGECOACH
FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(2) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
- ---------------------
22
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET MUTUAL FUND (1) (CONT.)
---------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------- ------------------------------------------
SIX SIX SIX
MONTHS YEAR PERIOD MONTHS YEAR YEAR MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30,
1997 1996 1995 (3) 1997 1996 1995 1994 (4)
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.05 0.01 0.03 0.05 0.05 0.02
Net realized and
unrealized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.01 0.03 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.05) (0.01) (0.03) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.01) (0.03) (0.05) (0.05) (0.02)
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (NOT
ANNUALIZED) 2.64 % 5.39 % 5.65 % 2.54 % 5.19 % 5.60 % 3.71%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $538,195 $423,959 $30,606 $626,105 $740,760 $614,101 $565,305
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25 % 0.25 % 0.26 % 0.45 % 0.45 % 0.41 % 0.41 %
Ratio of net investment
income to average net
assets 5.25 % 5.33 % 5.67 % 5.04 % 5.14 % 5.47 % 3.67 %
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.38 % 0.60 % 0.69 % 0.60 % 0.62 % 0.68 % 0.89 %
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 5.12 % 4.98 % 5.24 % 4.89 % 4.97 % 5.20 % 3.19 %
- ---------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS "PACIFIC AMERICAN LIQUID ASSETS, INC." THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN
MONEY MARKET PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND
ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF STAGECOACH
FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(2) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(3) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
---------------------
23
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET TREASURY MONEY
MUTUAL FUND (1) MARKET
(CONT.) MUTUAL FUND (2)
-------------------- --------------------
SERVICE CLASS CLASS A
(CONT.) --------------------
-------------------- SIX
YEAR YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1994 1993 1997 1996 (3)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
--------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.03 0.02 0.05
Net realized and unrealized gain (loss) on
investments 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.03 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.03) (0.02) (0.05)
Distributions from net realized gain 0.00 0.00 0.00 0.00
--------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.03) (0.02) (0.05)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
--------- --------- --------- ---------
--------- --------- --------- ---------
TOTAL RETURN (NOT ANNUALIZED) 3.00 % 3.32 % 2.42 % 4.95 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $527,599 $468,479 $66,486 $53,706
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.41 % 0.41 % 0.55 % 0.55 %
Ratio of net investment income to average
net assets 2.96 % 3.27 % 4.81 % 4.96 %
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior
to waived fees and reimbursed expenses 0.89 % 0.89 % 0.75 % 0.67 %
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 2.48 % 2.79 % 4.61 % 4.84 %
- ------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS "PACIFIC AMERICAN LIQUID ASSETS, INC." THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN
MONEY MARKET PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND
ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF STAGECOACH
FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(2) THE FUND OPERATED AS PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994 WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND,
AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF
STAGECOACH FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE
CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT
MANAGEMENT, INC.
(3) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE CLASS E SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(5) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
The accompanying notes are an integral part of these financial statements.
- ---------------------
24
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET MUTUAL FUND (2) (CONT.)
---------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
CLASS E ------------------------------- -------------------------------
--------- SIX SIX
PERIOD MONTHS YEAR PERIOD MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30,
1997 (4) 1997 1996 1995 (5) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.00 0.03 0.05 0.01 0.02 0.05 0.05
Net realized and
unrealized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.00 0.03 0.05 0.01 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 (0.03) (0.05) (0.01) (0.02) (0.05) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS 0.00 (0.03) (0.05) (0.01) (0.02) (0.05) (0.05)
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (NOT
ANNUALIZED) 0.11% 2.58 % 5.26 % 5.51%** 2.47 % 5.03 % 5.42 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $820,657 $449,647 $540,689 $36,443 $483,401 $1,340,325 $1,001,707
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65 % 0.25 % 0.25 % 0.26 % 0.45 % 0.45 % 0.42 %
Ratio of net investment
income to average net
assets 4.86 % 5.11 % 5.21 % 5.42 % 4.91 % 4.98 % 5.32 %
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.88 % 0.39 % 0.59 % 0.69 % 0.61 % 0.60 % 0.66 %
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.63 % 4.97 % 4.87 % 4.99 % 4.75 % 4.83 % 5.08 %
- ---------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS "PACIFIC AMERICAN LIQUID ASSETS, INC." THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN
MONEY MARKET PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND
ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF STAGECOACH
FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(2) THE FUND OPERATED AS PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994 WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND,
AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF
STAGECOACH FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE
CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT
MANAGEMENT, INC.
(3) THE CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE CLASS E SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(5) THE INSTITUTIONAL CLASS SHARES COMMENCED OPERATIONS ON AUGUST 11,
1995.
The accompanying notes are an integral part of these financial statements.
---------------------
25
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
MUTUAL FUND (1) (CONT.)
-------------------------------
SERVICE CLASS (CONT.)
-------------------------------
SIX
MONTHS YEAR YEAR
ENDED ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1994 (2) 1994 1993
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.03 0.03
Net realized and unrealized gain (loss) on investments 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.03 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.03) (0.03)
Distributions from net realized gain 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.03)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
--------- --------- ---------
--------- --------- ---------
TOTAL RETURN (NOT ANNUALIZED) 3.75 %** 2.81 % 3.13 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $690,630 $654,950 $614,237
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.43 % 0.43 % 0.43 %
Ratio of net investment income to average net assets 3.72 % 2.77 % 3.04 %
- -----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.90 % 0.90 % 0.91 %
Ratio of net investment income to average net assets
prior to waived fees and reimbursed expenses 3.25 % 2.30 % 2.56 %
- -----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994 WHEN IT WAS REORGANIZED AS THE "PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO", A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY
1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND,
AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A FUND OF
STAGECOACH FUNDS, INC. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE
CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT
MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
- ---------------------
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 the following nineteen separate diversified funds:
the Aggressive Growth, Asset Allocation, Balanced, Corporate Stock, Diversified
Income, Equity Value, Ginnie Mae, Growth and Income, Government Money Market
Mutual, Intermediate Bond, Money Market Mutual, Money Market Trust, National
Tax-Free, National Tax-Free Money Market Mutual, Prime Money Market Mutual,
Short-Intermediate U.S. Government Income, Small Cap, Treasury Money Market
Mutual, and U.S. Government Allocation Funds; and five non-diversified funds:
the Arizona Tax-Free, California Tax-Free Bond, California Tax-Free Income,
California Tax-Free Money Market Mutual, and Oregon Tax-Free Funds. These
financial statements represent the Money Market Mutual, Prime Money Market
Mutual, and Treasury Money Market Mutual Funds (the "Funds").
The Company changed its fiscal year-end from September 30 to March 31.
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 Prime Money Market Mutual and
Treasury Money Market Mutual Funds were established to acquire all of the assets
and assume all of the liabilities of the Pacifica Prime Money Market and
Treasury Money Market Funds, respectively (collectively, the "Predecessor
Funds"). Additionally, the Stagecoach Money Market Mutual Fund acquired all of
the assets and assumed all of the liabilities of the Pacifica Money Market and
Asset Preservation Funds. These acquisitions were accomplished in separate
exchanges for shares of the respective Fund. All performance and financial data
for the Prime Money Market Mutual and Treasury Money Market Mutual Funds prior
to September 6, 1996 refers to the Predecessor Funds.
The Money Market Mutual Fund offers Class A, Institutional Class, and Class S
shares. The Prime Money Market Mutual and Treasury Money Market Mutual Funds
offer Class A, Institutional Class, and Service Class shares. Additionally, the
Treasury Money Market Mutual Fund commenced offering Class E shares on March 24,
1997. The four classes of shares differ principally in the applicable
distribution, transfer agency and
share-
---------------------
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
holder servicing fees. Shareholders of each class also bear certain expenses
that pertain to that particular class. All shareholders bear the common expenses
of the Fund and earn income from the portfolio pro rata based on the average
daily net assets of each class, without distinction between share classes.
Dividends are determined separately for each class based on income and expenses
allocable to each class. Gains are allocated to each class pro rata based upon
net assets of each class on the date of distribution. No class has preferential
dividend rights. Differences in per share dividend rates generally result from
the relative weightings of pro rata income and gain allocations and from
differences in separate class expenses, including distribution, transfer agency
and shareholder servicing 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 for investment
companies.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
INVESTMENT POLICY AND SECURITY VALUATION
The Funds invest in securities with remaining maturities not exceeding 397 days
(thirteen months), including obligations of the U.S. government, bankers
acceptances, commercial paper and certain floating- and variable-rate
instruments. Certain of these floating-and variable-rate instruments may carry a
demand feature that would permit the holder to tender them back to the issuer at
par value prior to maturity.
Each Fund uses the amortized cost method to value its portfolio securities and
seeks to maintain a constant net asset value of $1.00 per share; however, there
can be no assurance that the Funds will meet this goal. The amortized cost
method involves valuing a security at its cost plus accretion of discount or
minus amortization of premium over the period until maturity, which approximates
market value.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded 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 and
premiums are accreted or amortized as required by the Internal Revenue Code.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are
- ---------------------
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS
treated as collateralized financing transactions and are recorded at their
contracted resale amounts. These repurchase agreements, if any, are detailed in
each Fund's Portfolio of Investments. The Funds may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo Bank,
N.A. ("WFB"). The repurchase agreement must be fully collateralized based on
values that are marked to market daily. The collateral may be held by an agent
bank under a tri-party agreement. It is the custodian's responsibility to value
collateral daily and to take action to obtain additional collateral as necessary
to maintain market value equal to or greater than the resale price. The
repurchase agreements entered into and held in the Funds at March 31, 1997, were
collateralized by U.S. government obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from each Fund's net investment income are declared daily and
distributed monthly. Any distributions to shareholders from net realized capital
gains are declared and distributed annually.
FEDERAL INCOME TAXES
Each Fund of the Company 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 Internal Revenue 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>
CAPITAL
YEAR LOSS
FUND EXPIRES CARRYFORWARD
<S> <C> <C>
- ------------------------------------------------------------------------------------------------
Money Market Mutual Fund 2003 $ 305,788
2004 701,461
Prime Money Market Mutual Fund 1998 1,928
1999 525
2000 60,951
2001 56,414
2002 622
</TABLE>
Any loss carryforwards from Pacifica are included in the corresponding
Stagecoach Fund's carryforwards as shown above. The Board of Directors intends
to offset net capital gains with each capital loss carryforward until each
carryforward has been fully utilized or expires. No capital gain distribution
shall be made until the capital loss carryforward has been fully utilized or has
expired.
---------------------
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund. The differences between the income and gains distributed on a book
versus tax basis, if any, are shown as excess distributions of net investment
income and net realized gain on the sale 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 generally accepted
accounting principles. 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.
Such expenses are being amortized by each Fund on a straight-line basis over 60
months from the date the Fund and/or class commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into separate advisory contracts on behalf of each Fund
with WFB. Pursuant to the contracts, WFB has agreed to furnish to the Funds
investment guidance and policy direction in connection with daily portfolio
management. Under such contracts, WFB is entitled to be paid monthly advisory
fees at the annual rate of 0.40% of the average daily net assets of the Money
Market Mutual Fund and 0.25% of the average daily net assets of the Prime Money
Market Mutual and Treasury Money Market Mutual Funds.
For the period from October 1, 1995 to March 31, 1996, the Prime Money Market
Mutual and Treasury Money Market Mutual Funds were advised by First Interstate
Capital Management ("FICM"). Pursuant to the advisory contracts, the Funds paid
an advisory fee at an annual rate of 0.30% of the first $500 million of each
Fund's average daily net assets, 0.25% of the next $500 million, and 0.20% of
each Fund's average daily net assets in excess of $1 billion. On April 1, 1996,
First Interstate Bancorp ("FIB") was merged with and into Wells Fargo & Company
("Wells Fargo"); and FICM and First Interstate Bank of California ("FICAL")
became indirect, wholly-owned subsidiaries of Wells Fargo. In connection with
this merger, FICM changed its name to Wells Fargo Investment Management, Inc
("WFIM"). For the period from April 1, 1996 to September 5, 1996, such advisory
fees were paid to WFIM.
- ---------------------
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Company has entered into a contract on behalf of the Funds with WFB, whereby
WFB is responsible for providing custody and portfolio accounting services for
the Funds. For providing custody service, WFB is entitled to be compensated 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 of $2,000
plus 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 the average daily net assets in
excess of $100 million.
For the period from October 1, 1995 to March 31, 1996, FICAL served as the
custodian for the Prime Money Market Mutual and Treasury Money Market Mutual
Funds. Pursuant to the contracts, the Funds paid a custodian fee based on net
assets and certain transaction charges. For the period from April 1, 1996 to
September 5, 1996, such custodian fees were paid to WFB.
The Company has entered into a contract on behalf of the Funds with WFB, whereby
WFB has agreed to act as transfer agent for the Funds. Under the transfer agency
contract, WFB is entitled to receive transfer agency fees at an annual rate of
0.10% of the average daily net assets of the Class A shares of the Funds and
0.02% of the average daily net assets of the Institutional Class and Class S
shares of the Money Market Mutual Fund, the Institutional Class and Service
Class shares of the Prime Money Market Mutual Fund, and the Class E,
Institutional Class, and Service Class shares of the Treasury Money Market
Mutual Fund. Prior to February 1, 1997, under a contract with the Money Market
Mutual Fund, WFB was entitled to be paid a per account fee plus other related
costs with a minimum monthly fee of $3,000 unless net assets of the Fund were
under $20 million. For as long as the net assets remained under $20 million, a
Fund would not be charged any transfer agency fees by WFB. Prior to February 1,
1997, under the contracts with the Prime Money Market Mutual and Treasury Money
Market Mutual Funds, WFB was entitled to be paid transfer agency fees at an
annual rate of 0.07% of average daily net assets attributable to the Class A
shares, and 0.02% and 0.04% of average daily net assets attributable to
Institutional Class and Service Class shares, respectively.
The transfer agency fees of the Funds for the six months ended March 31, 1997,
were as follows:
<TABLE>
<CAPTION>
TRANSFER
TRANSFER AGENCY FEES
TRANSFER TRANSFER AGENCY FEES CLASS S/
AGENCY FEES AGENCY FEES INSTITUTIONAL SERVICE
FUND CLASS A CLASS E CLASS CLASS
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Money Market Mutual Fund $1,442,326 N/A $ 2,633 $242,333
Prime Money Market Mutual Fund 113,094 N/A 52,819 117,918
Treasury Money Market Mutual Fund 22,176 $3,729 49,802 209,300
</TABLE>
---------------------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
For the period from October 1, 1995 to September 5, 1996, the Prime Money Market
Mutual and Treasury Money Market Mutual Funds retained Furman Selz LLC ("Furman
Selz") to perform transfer agency services.
The Company has entered into contracts on behalf of the Funds with WFB, whereby
WFB has agreed to provide shareholder services for the Funds. WFB is entitled to
be compensated for these services based on an annual rate not to exceed 0.30% of
the Class A shares of the Money Market Mutual Fund's average daily net assets,
0.25% of the average daily net assets attributable to Class A shares of the
Prime Money Market Mutual Fund, Class A and Class E shares of the Treasury Money
Market Mutual Fund, and the Institutional Class and Class S shares of the Money
Market Mutual Fund, and 0.20% of the average daily net assets attributable to
the Service Class shares of the Prime Money Market Mutual and Treasury Money
Market Mutual Funds.
The shareholder servicing fees of the Funds for the six months ended March 31,
1997, were as follows:
<TABLE>
<CAPTION>
SHAREHOLDER
SERVICING
SHAREHOLDER SHAREHOLDER SHAREHOLDER FEES
SERVICING SERVICING SERVICING FEES CLASS S/
FEES FEES INSTITUTIONAL SERVICE
FUND CLASS A CLASS E CLASS CLASS
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Money Market Mutual Fund $ 6,287,325 N/A $14,717 $ 892,936
Prime Money Market
Mutual Fund 353,671 N/A N/A 692,898
Treasury Money Market
Mutual Fund 68,907 $ 46,608 N/A 1,230,129
</TABLE>
The shareholder servicing fees of the Funds for the periods ended September 30,
1996, were as follows:
<TABLE>
<CAPTION>
SHAREHOLDER
SHAREHOLDER SERVICING
SHAREHOLDER SERVICING FEES
SERVICING FEES CLASS S/
FEES INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Money Market Mutual Fund* $ 7,257,001 $ 2,443 $ 1,176,803
Prime Money Market Mutual Fund** 801,388 1,652,003 882,301
Treasury Money Market Mutual Fund** 153,899 1,432,124 3,022,260
</TABLE>
* INFORMATION PRESENTED IS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996.
** INFORMATION PRESENTED IS FOR THE YEAR ENDED SEPTEMBER 30, 1996.
For the period from October 1, 1995 to September 5, 1996, various banks, trust
companies, broker-dealers or other financial organizations (collectively,
"Service Organizations") also provided administrative services for the Prime
Money Market Mutual and Treasury Money Market Mutual Funds, such as
maintain-
- ---------------------
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ing shareholder accounts and records. The Funds paid fees to Service
Organizations in amounts up to an annual rate of 0.25% of the average daily net
assets of the Funds' shares owned by shareholders with whom the Service
Organization had a servicing relationship.
Subject to the overall supervision of the Company's Board of Directors, WFB as
administrator and Stephens Inc. ("Stephens") as co-administrator provide each
Fund with supervisory, administrative and distribution services. For these
administrative 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. Prior to February 1, 1997, Stephens provided substantially the
same services as sole administrator to the Funds. Under the previous agreements,
Stephens was entitled to receive a monthly fee at the annual rate of 0.03% of
the average daily net assets of the Money Market Mutual Fund and 0.05% of the
average daily net assets of the Prime Money Market Mutual and Treasury Money
Market Mutual Funds.
For the period from April 15, 1996 to September 5, 1996, Furman Selz provided
administrative services for the operation of the Prime Money Market Mutual and
Treasury Money Market Mutual Funds. As compensation for such services, each Fund
paid Furman Selz an annual fee, payable monthly, of up to 0.15% of the average
daily net assets of the Fund. For the period from October 1, 1995 to April 15,
1996, The Dreyfus Corporation ("Dreyfus") provided administrative services for
the operation of the Prime Money Market Mutual and Treasury Money Market Mutual
Funds. As compensation for such services, the Funds paid Dreyfus an annual fee,
payable monthly, of up to 0.10% of the average daily net assets of the Funds.
The Company has adopted Distribution Plans pursuant to Rule 12b-1 under the 1940
Act for Class A shares of the Funds, Class S shares of the Money Market Mutual
Fund and Class E shares of the Treasury Money Market Mutual Fund. The
Distribution Plan for the Class A shares of the Funds provides that the Funds
may defray all or part of the cost of preparing, printing and distributing
prospectuses and other promotional materials by paying on an annual basis up to
0.05% of the average daily net assets attributable to the Class A shares of the
Funds. Each Fund may participate in joint distribution activities with any of
the other funds, in which event, expenses reimbursed out of the assets of one
Fund may be attributable, in part, to the distribution-related activities of
another fund. Generally, the expenses attributable to joint distribution
activities are allocated among all of the funds in proportion to their relative
net asset sizes.
---------------------
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The separate Class S Distribution Plan for the Money Market Mutual Fund provides
that the Fund may pay, as compensation for distribution-related services, a
monthly fee at an annual rate of up to 0.75% of the Fund's average daily net
assets attributable to Class S shares. Distribution fees for the periods listed
below for the Money Market Mutual Fund were as follows:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
FEES FEES
PERIOD CLASS A CLASS S
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1997 $ 419,154 $ 2,678,807
For the Nine Months Ended September 30, 1996 480,748 3,587,118
</TABLE>
The separate Class E Distribution Plan for the Treasury Money Market Mutual Fund
provides that the Fund may pay, as compensation for distribution-related
services, a monthly fee at an annual rate of up to 0.25% of the Fund's average
daily net assets attributable to Class E shares. Distribution fees for the
Treasury Money Market Mutual Fund for the six months ended March 31, 1997, were
as follows:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
FEES FEES
FUND CLASS A CLASS E
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Treasury Money Market Mutual Fund $ 13,781 $ 46,608
</TABLE>
For the period from October 1, 1995 to September 5, 1996, the Prime Money Market
Mutual and Treasury Money Market Mutual Funds had adopted Distribution Plans
pursuant to Rule 12b-1 under the 1940 Act. The Plans provided
for payments by each Fund equal to 0.05% of the average daily net assets of the
Class A shares of the Prime Money Market Mutual and Treasury Money Market Mutual
Funds.
FEES WAIVED
All amounts shown as waived fees and reimbursed expenses on the Statements of
Operations for the six months ended March 31, 1997 were waived and/or reimbursed
by WFB. The following amounts of fees were waived for the periods ended
September 30, 1996.
<TABLE>
<CAPTION>
FEES WAIVED FEES WAIVED
FUND BY FIB BY WFB
<S> <C> <C>
- ------------------------------------------------------------------------------------------------
Money Market Mutual Fund* N/A $ 3,884,553
Prime Money Market Mutual Fund** $ 1,553,968 1,347,246
Treasury Money Market Mutual Fund** 2,173,591 1,877,973
</TABLE>
* INFORMATION PRESENTED IS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996.
** INFORMATION PRESENTED IS FOR THE YEAR ENDED SEPTEMBER 30, 1996.
- ---------------------
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Waived fees and reimbursed expenses continue at the discretion of WFB and
Stephens. WFB and Stephens have each 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 do not exceed, on an annual basis,
0.55%, 0.45% and 0.25% of the average daily net assets attributable to the Class
A, Service Class, and Institutional Class shares, respectively, of the Prime
Money Market Mutual and Treasury Money Market Mutual Funds, and 0.73% of the
average net assets attributable to the Institutional Class shares of the Money
Market Mutual Fund through August 31, 1997.
Certain officers and directors of the Company are also officers of Stephens. At
March 31, 1997, Stephens owned 11,996 shares of the Money Market Mutual Fund, 76
shares of the Prime Money Market Mutual Fund and 76 shares of the Treasury Money
Market Mutual Fund.
---------------------
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
As of March 31, 1997, there were 91 billion shares of $.001 par value capital
stock authorized by the Company. At March 31, 1997, the Prime Money Market
Mutual and Treasury Money Market Mutual Funds were authorized to issue 5 billion
shares of $.001 par value capital stock for each class of shares. The Money
Market Mutual Fund was authorized to issue 10 billion Class A shares, 5 billion
Institutional Class shares and 5 billion Class S shares of $0.001 par value
capital stock for each class of shares.
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
MONEY MARKET MUTUAL FUND
<S> <C> <C> <C>
-------------------------------------------------
<CAPTION>
FOR THE NINE
FOR THE SIX MONTHS ENDED FOR THE
MONTHS ENDED SEPT. 30, 1996 YEAR ENDED DEC.
MARCH 31, 1997 (1) 31, 1995
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,566,357,293 2,061,102,906 2,284,460,229
Shares issued in reinvestment of
dividends -- Class A 93,188,134 111,610,934 146,963,258
Shares redeemed -- Class A (819,490,109) (1,266,036,895) (1,881,762,423)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A 840,055,318 906,676,945 549,661,064
Shares sold -- Institutional Class 2,187,477 19,474,700 N/A
Shares issued in reinvestment of
dividends -- Institutional Class 279,884 0 N/A
Shares redeemed -- Institutional Class (11,728,407) (890,817) N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS (9,261,046) 18,583,883 N/A
Shares sold -- Class S 813,386,639 1,063,771,625 1,211,984,821
Shares issued in reinvestment of
dividends -- Class S 14,334,388 19,240,628 10,735,964
Shares redeemed -- Class S (819,204,427) (1,002,807,161) (603,622,562)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS S 8,516,600 80,205,092 619,098,223
</TABLE>
(1) "SHARES SOLD" INCLUDES 194,882,553 FOR CLASS A AND 19,474,700 FOR THE
INSTITUTIONAL CLASS, AS A RESULT OF THE PACIFICA MONEY MARKET FUND AND
PACIFICA ASSET PRESERVATION FUND MERGERS.
- ---------------------
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PRIME MONEY MARKET MUTUAL FUND
--------------------------------------------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1997 SEPT. 30, 1996 SEPT. 30, 1995
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 332,735,076 831,632,592 N/A
Shares issued in reinvestment of
dividends -- Class A 240,495 916,433 N/A
Shares redeemed -- Class A (320,827,816) (567,563,822) N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A 12,147,755 264,985,203 N/A
Shares sold -- Institutional Class 1,593,660,723 5,079,737,453 104,661,000
Shares issued in reinvestment of
dividends -- Institutional Class 1,847,923 176,187 0
Shares redeemed -- Institutional Class (1,481,265,875) (4,686,437,789) (74,055,000)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS 114,242,771 393,475,851 30,606,000
Shares sold -- Service Class 1,211,658,277 2,007,890,215 8,252,511,223
Shares issued in reinvestment of
dividends -- Service Class 90,409 117,361 0
Shares redeemed -- Service Class (1,326,393,380) (1,881,188,709) (8,203,819,000)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- SERVICE CLASS (114,644,694) 126,818,867 48,692,223
</TABLE>
---------------------
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
TREASURY MONEY MARKET MUTUAL FUND
------------------------------------------------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1997 SEPT. 30, 1996 SEPT. 30, 1995
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 101,803,385 265,329,368 N/A
Shares issued in reinvestment of
dividends -- Class A 117,496 303,969 N/A
Shares redeemed -- Class A (89,139,342) (211,928,115) N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A 12,781,539 53,705,222 N/A
Shares sold -- Class E 892,833,080 N/A N/A
Shares issued in reinvestment of
dividends -- Class E 0 N/A N/A
Shares redeemed -- Class E (72,176,053) N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS E 820,657,027 N/A N/A
Shares sold -- Institutional Class 998,327,613 4,920,884,222 120,817,000
Shares issued in reinvestment of
dividends -- Institutional Class 978,929 1,018,863 0
Shares redeemed -- Institutional Class (1,090,336,130) (4,417,665,197) (84,374,000)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS (91,029,588) 504,237,888 36,443,000
Shares sold -- Service Class 2,043,006,904 3,893,787,080 20,388,947,721
Shares issued in reinvestment of
dividends -- Service Class 348,407 227,942 0
Shares redeemed -- Service Class (2,900,254,375) (3,555,407,931) (20,077,871,000)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- SERVICE CLASS (856,899,064) 338,607,091 311,076,721
</TABLE>
- ---------------------
38
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
STAGECOACH FUNDS, INC.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the Money Market Mutual Fund, Prime Money
Market Mutual Fund, and Treasury Money Market Mutual Fund (three of the funds
comprising Stagecoach Funds, Inc.) as of March 31, 1997, and the related
statements of operations of the Money Market Mutual Fund for the six months
ended March 31, 1997, and the nine months ended September 30, 1996, and the
Prime Money Market Mutual Fund and Treasury Money Market Mutual Fund for the six
months ended March 31, 1997, and the year ended September 30, 1996, the
statements of changes in net assets of the Money Market Mutual Fund for the six
months ended March 31, 1997, the nine months ended September 30, 1996, and the
year ended December 31, 1995, and the Prime Money Market Mutual Fund and
Treasury Money Market Mutual Fund for the six months ended March 31, 1997, and
the year ended September 30, 1996, and financial highlights for the periods
indicated herein. These financial statements and financial highlights are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. For the Prime Money Market Mutual Fund and Treasury Money Market Mutual
Fund, all years or periods indicated in the accompanying financial statements
and financial highlights ending prior to October 1, 1995, were audited by other
auditors whose reports dated November 15, 1995, and May 4, 1994, expressed
unqualified opinions on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1997, by correspondence with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Stagecoach Funds, Inc. as of March 31, 1997, the
results of their operations, the changes in their net assets and their financial
highlights for the periods indicated herein, except as noted above, in
conformity with generally accepted accounting principles.
[SIG]
[KPMG Peat Marwick LLP]
SAN FRANCISCO, CALIFORNIA
MAY 9, 1997
---------------------
39
<PAGE>
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- ---------------------
40
<PAGE>
LIST OF ABBREVIATIONS
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
CONNIE LEE -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
</TABLE>
---------------------
41
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
- ---------------------
42
<PAGE>
Wells Fargo 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 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.
SCF 082 (5/97)
<TABLE>
<S> <C>
STAGECOACH
FUNDS-REGISTERED TRADEMARK-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
</TABLE>
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-C- 1997 Stagecoach Funds
