STAGECOACH FUNDS - Prospectus Supplement dated February 17, 1998
The following Prospectuses are supplemented as indicated below:
California Tax-Free Money Market Trust Prospectus, March 19, 1997
National Tax-Free Money Market Trust Prospectus, July 1, 1997 Tax-Free
Income Funds Prospectus, December 15, 1997 Equity Funds Prospectus,
December 15, 1997 Income Funds Prospectus, December 15, 1997 Allocation
Funds Prospectus, December 15, 1997 Money Market Mutual Funds
Prospectus, December 15, 1997 Equity Index Fund Prospectus, December 15,
1997
All Prospectuses listed above:
Effective February 1, 1998, Wells Fargo Bank's compensation as
Administrator of the Funds is reduced to 0.03% and Stephens Inc.'s compensation
as Co-Administrator is increased to 0.04%. All references to these fees in the
Prospectuses and SAIs for the Funds, and the expense tables, shall be amended to
reflect these changes.
Tax-Free Income Funds Prospectus:
Effective February 1, 1998, all Funds may invest in municipal
obligations rated in the four highest credit categories as determined by
nationally recognized securities rating organizations.
For shares of the Short-Term Municipal Income Fund, the "Shareholder
Servicing Plan" section of the "Organization and Management of the Funds" is
clarified to indicate that this Fund has a Shareholder Administrative Servicing
Plan, and that where fees are paid pursuant to this Plan, no fees are paid
pursuant to any Distribution Plan applicable to these shares.
Equity Funds Prospectus:
Effective February 1, 1998 -- Steve Enos is no longer a portfolio
manager for the Small Cap Fund. Scott Smith replaces Tamyra Thomas as co-manager
for the income portion of the Balanced Fund. Also for the Small Cap Fund, under
"Investment Policies", the policy to sell the stock of companies whose market
capitalization grows above $2 billion is changed to state that we will sell such
stock if this capitalization is maintained for 60 days or more.
Income Funds Prospectus
Effective February 1, 1998, Scott Smith replaces Tamyra Thomas as
portfolio manager for the Intermediate Bond Fund.
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For Class A shares of the Variable Rate Government Fund and the Single
Class shares of the Short-Term Government-Corporate Income Fund, the
"Shareholder Servicing Plan" section of the "Organization and Management of the
Funds" is clarified to indicate that these Funds have a Shareholder
Administrative Servicing Plan, and that where fees are paid pursuant to this
Plan, no fees are paid pursuant to any Distribution Plan applicable to these
shares.
Allocation Funds Prospectus
For Class A shares of the Index Allocation Fund, the "Shareholder
Servicing Plan" section of the "Organization and Management of the Funds" is
clarified to indicate that this Fund has a Shareholder Administrative Servicing
Plan, and that where fees are paid pursuant to this Plan, no fees are paid
pursuant to any Distribution Plan applicable to these shares.
