<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Semi-Annual Report
MONEY MARKET
Funds
California Tax-Free Money Market Fund
Government Money Market Fund
Money Market Fund
National Tax-Free Money Market Fund
Prime Money Market Fund
Treasury Plus Money Market Fund
September 30, 1998
<PAGE>
Money Market Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Government Money Market Fund.................................3
Money Market Fund............................................3
Prime Money Market Fund......................................3
Treasury Plus Money Market Fund..............................3
California Tax-Free Money Market Fund........................6
National Tax-Free Money Market Fund..........................6
PORTFOLIOS OF INVESTMENTS
California Tax-Free Money Market Fund........................9
Government Money Market Fund................................22
Money Market Fund...........................................24
National Tax-Free Money Market Fund.........................30
Prime Money Market Fund.....................................35
Treasury Plus Money Market Fund.............................39
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................42
Statement of Operations.....................................44
Statements of Changes in Net Assets.........................46
Financial Highlights........................................50
Notes to Financial Statements...............................66
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
ii
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LETTER TO SHAREHOLDERS Money Market Funds
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TO OUR SHAREHOLDERS
Thank you for your investment in the Stagecoach Funds.
We are pleased to present this Semi-Annual Report to you for the period ended
September 30, 1998. This report provides information about your investment,
including economic and market trends over the period as well as a performance
summary, portfolio review, and strategic outlook for each Fund.
During the six-month period ended September 30, 1998, global economic events
finally caught up with U.S. financial markets. Most acutely affected were
stocks, as measured by the S&P 500 Index,(1) with a decrease of 6.95%. By
contrast, fixed income securities did well, due to a "flight to quality" in
which investors sought to invest in U.S. Treasury securities. For example,
government bonds performed well during this period, with returns of 12.74% as
measured by the Lehman Brothers Long Government Bond Index.(2)
Throughout the period, the continued uncertainty in Asia's financial markets
spread into global economies, such as Russia and Latin America. Thus far, there
has been minimal evidence of a slowdown in the U.S. economy. However, over the
past six months, pressure built on the Federal Reserve Board (the Fed) to ease
monetary policy, as there was the potential for global and financial strains to
affect the U.S. market. As a result, the Fed decreased a key short-term interest
rate once on September 29, 1998 and again on October 15, 1998. This signaled an
important change in policy meant to impact the economy and hopefully stimulate
growth.
According to the Investment Company Institute, during 1997, U.S. households
invested 65% of their total net purchases of financial products in mutual
funds.(3) Many of these investors have benefited from unprecedented growth in
the market with little exposure to significant declines. However, the large
swings we have seen recently will test conservative and aggressive
1
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Money Market Funds LETTER TO SHAREHOLDERS
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investors alike. It will become increasingly important to stay focused on the
long-term, evaluate the investment risk of your portfolio, and remain true to
your investment plan.
In our ongoing commitment to provide you with quality investment options, we
introduced two new Stagecoach Funds during the past six months. We launched the
Corporate Bond Fund in April 1998 and the Strategic Income Fund in July 1998.
We encourage you to review this Semi-Annual Report as we believe you will find
it useful and informative. We also recommend that you continually review your
investment portfolio with your financial consultant to determine an appropriate
mix of investments to meet your ongoing needs. Thank you for your continued
investment with the Stagecoach Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President of
Stagecoach Funds
1 The "S&P 500 Index" is a trademark of Standard and Poor's Corporation. The S&P
500 Index is an unmanaged index of 500 widely held common stocks representing,
among others, industrial, financial, utility and transportation companies
listed or traded on national exchanges or over-the-counter markets.
2 The Lehman Brothers Long Government Bond Index is an unmanaged index composed
of U.S. Treasury bonds with 20-year or longer maturities.
3 Investment Company Institute, Mutual Fund Fact Book, 1998.
2
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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GOVERNMENT MONEY MARKET FUND - CLASS A
MONEY MARKET FUND - CLASS A
PRIME MONEY MARKET FUND - CLASS A
TREASURY PLUS MONEY MARKET FUND - CLASS A
FOUR STAGECOACH MONEY MARKET FUNDS (EACH, A "FUND", COLLECTIVELY, THE "FUNDS")
WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach Government Money Market Fund seeks to provide investors with as
high a level of current income as is consistent with preservation of capital and
liquidity.
The Stagecoach Money Market Fund seeks to provide investors with a high level
of income, while preserving capital and liquidity, by investing in high-quality,
short-term instruments.
The Stagecoach Prime Money Market Fund seeks to provide investors with
maximized current income to the extent consistent with preservation of capital
and maintenance of liquidity.
The Stagecoach Treasury Plus Money Market Fund seeks to provide investors with
current income and stability of principal. The name of the Fund changed from
Stagecoach Treasury Money Market Mutual Fund on August 1, 1998.
The Funds are managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has over a decade of experience in managing taxable money
market mutual funds at First Interstate Bank and Union Capital Advisors. He
holds a BA in Finance from California State University, Los Angeles.
3
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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PERFORMANCE SUMMARY
For the six-month period ending September 30, 1998 the Stagecoach Money Market
Funds' cumulative total returns were as follows:
- --------------------------------------------------
<TABLE>
<S> <C>
GOVERNMENT MONEY MARKET FUND 2.44%
MONEY MARKET FUND 2.48%
PRIME MONEY MARKET FUND 2.52%
TREASURY PLUS MONEY MARKET FUND 2.45%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of
September 30, 1998 were the following:
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<TABLE>
<S> <C>
GOVERNMENT MONEY MARKET FUND 4.67%
MONEY MARKET FUND 4.87%
PRIME MONEY MARKET FUND 4.84%
TREASURY PLUS MONEY MARKET FUND 4.49%
</TABLE>
Keep in mind that past performance is no guarantee of future results.
PORTFOLIO REVIEW
Throughout the period, the U.S. economy was subject to volatile market
conditions caused by international economic turmoil in markets such as Asia,
Russia and Latin America. One outcome of these conditions was a "flight to
quality" in which investors moved into treasury securities, driving interest
rates down rapidly. The problems overseas and an anticipation of an interest
rate cut by the Federal Reserve Board (the Fed) which eventually occurred on
September 29, led us to lengthen the weighted average maturities of our Funds by
adding longer dated securities. Weighted average maturity is an indication of a
fund's sensitivity to interest rates. By adding later dated securities to our
portfolios, we were able to maintain competitive yields in the low interest rate
environment.
The effects of the flight to quality had a particularly strong impact on the
U.S. Treasury market, causing treasury yields to decline more than any other
type of short-
4
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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term security. Our strategy was to hold larger positions in repurchase
agreements in the Treasury Plus Money Market Fund in order to increase yield and
liquidity. We were still able to maintain a high credit quality in the Fund's
portfolio since the repurchase agreements are backed by U.S. Treasury
securities.
With a strict focus on high credit quality for all four Funds, we did not add
to our foreign positions during the period and do not hold any positions that
have had their credit rating downgraded. We will continue to avoid securities
that could be adversely affected by problems overseas. By maintaining high
credit quality, liquidity and longer maturities, we were able to maintain
stability and competitive yields for the period.
STRATEGIC OUTLOOK
We feel the concern over global markets will continue to work its way into our
domestic economy and affect consumer spending. We will continue to maintain
longer average maturities in our Funds as we expect the Fed to continue to ease
monetary policy. We will monitor interest rates, being particularly mindful that
the market might anticipate the Fed to lower rates more than will actually
occur.
The Funds are well positioned given the current international economic
conditions and low interest rate environment. As a result, we intend to maintain
the Funds at their current positioning with a bias toward a defensive posture
and increased liquidity. We believe under these uncertain economic conditions,
it is prudent to focus more on credit quality and stability rather than purely
on yield. As always, we will continue to focus on capital preservation and
liquidity.
The Funds are neither insured nor guaranteed by the U.S. Government. Figures
quoted represent past performance, which is no guarantee of future results.
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Funds' returns would have been lower.
Money market funds seek to maintain a stable net asset value of $1.00 per share;
however, there can be no assurance that the Funds will meet this objective.
5
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
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CALIFORNIA TAX-FREE MONEY MARKET FUND - CLASS A
NATIONAL TAX-FREE MONEY MARKET FUND - CLASS A
TWO STAGECOACH TAX-FREE MONEY MARKET FUNDS (EACH, A "FUND", COLLECTIVELY, THE
"FUNDS") WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach California Tax-Free Money Market Fund seeks to obtain a high
level of income exempt from federal income tax and California personal income
tax, while preserving capital and liquidity, by investing in high-quality,
short-term, U.S. dollar-denominated money market instruments, primarily
municipal obligations.
The Stagecoach National Tax-Free Money Market Fund seeks to provide investors
with a high level of income exempt from federal income tax, while preserving
capital and liquidity.
The Funds are managed by Kevin Shaughnessy of Wells Capital Management
Incorporated. Mr. Shaughnessy joined Wells Fargo Bank in 1996 from Lehman
Brothers. He holds a BS in Business Administration and an MBA in Finance from
California State University, Hayward. Mr. Shaughnessy has over 10 years of
experience in the investment industry and is a Chartered Financial Analyst
candidate.
PERFORMANCE SUMMARY
The cumulative total returns for the six-month period ended September 30, 1998
for the Stagecoach tax-free money market funds were as follows:
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<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 1.35%
NATIONAL TAX-FREE MONEY MARKET FUND 1.39%
</TABLE>
6
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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The seven-day current yields for the Stagecoach tax-free money market funds as
of September 30, 1998 were as follows:
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<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 2.86%
NATIONAL TAX-FREE MONEY MARKET FUND 3.09%
</TABLE>
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, an investor in the maximum combined
federal and California income tax bracket of 45.22% would need to earn 5.22%
from a taxable investment to match a 2.86% tax-free yield. In order to match a
3.09% tax-free yield, an investor in the maximum 39.60% federal income tax
bracket would need to earn 5.12% on a taxable investment. Keep in mind that past
performance is no guarantee of future results.
PORTFOLIO REVIEW
As a result of the low interest rate environment and in anticipation of an
interest rate decrease by the Federal Reserve Board, which occurred on September
29, 1998, we lengthened each Fund's weighted average maturity during the
six-month reporting period. Weighted average maturity is an indication of a
fund's sensitivity to interest rates. Our strategy to increase maturity was made
in an attempt to capture higher yields offered by securities such as one-year
tax-exempt notes and commercial paper. In addition, we decreased our exposure to
variable-rate securities during the period.
Based on international economic problems, particularly in the Asian markets,
the importance of each Fund's credit quality component increased. As a result,
we sold the Funds' Japanese exposures at the beginning of the year and continue
to avoid such securities. While they may offer higher yields than other
securities, we feel it is more important to remain proactive and protective of
credit quality.
7
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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STRATEGIC OUTLOOK
We feel the concern over global markets will eventually work its way into our
domestic economy and consumer spending. Since yields have already declined in
the money fund market, we will continue to maintain longer maturities in our
Funds and will increase our fixed-rate exposure if we feel security prices are
attractive.
In California, there are stronger ties to the Pacific Rim than in other
states, so we believe the slowdown in Asia could have a greater impact on the
California economy. We do not, however, expect a credit deterioration in
California and believe the California Tax-Free Money Market Fund is diversified
appropriately among issuers and liquidity providers.
Overall, we feel both Funds are positioned well given the international
economic turmoil and low interest rate environment. As a result, we intend to
maintain the Funds at their current positioning with a bias toward longer
maturity and fixed-rate securities. As always, we will continue to focus on
safety of principal, credit quality and liquidity as we strive to deliver a high
level of tax-free income.
The Funds are neither insured nor guaranteed by the U.S. Government. Figures
quoted represent past performance, which is no guarantee of future results.
A portion of the Funds' distributions may be subject to federal, state, and/or
local taxes or the alternative minimum tax (AMT).
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Funds' returns would have been lower.
Money market funds seek to maintain a stable net asset value of $1.00 per share;
however, there can be no assurance that the Funds will meet this objective.
8
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 97.89%
$ 9,200,000 ABAG Financing Authority Nonprofit Corporation
COP 3.10 % 08/01/23 $ 9,200,000
4,520,000 Alameda-Contra Costa County Financing Authority
COP 3.55 07/01/16 4,520,000
1,400,000 Alameda-Contra Costa County School Financing
Authority Series C 3.55 07/01/25 1,400,000
1,700,000 Alhambra CA IDA 3.20 05/01/07 1,700,000
3,100,000 Anaheim CA CP 3.50 12/10/98 3,100,000
2,705,000 Anaheim CA COP AMBAC Insured 3.00 08/01/08 2,705,000
4,900,000 Anaheim CA Public Improvement COP AMBAC Insured 3.00 08/01/19 4,900,000
4,500,000 Barstow CA MFHR 3.25 12/01/20 4,500,000
20,000,000 California Community College Financing
Authority 3.60 09/30/99 20,000,000
9,225,000 California Educational Facilities Authority
Revenue Stanford University Series M 5.00 12/01/98 9,248,916
4,390,000 California Educational Facilities Authority
Revenue Series L3 3.00 10/01/15 4,390,000
2,100,000 California HFFA Revenue Insured Hospital
Adventist Series A 4.00 09/01/28 2,100,000
400,000 California HFFA Revenue Insured Hospital
Adventist Series B 4.00 09/01/28 400,000
3,900,000 California HFFA Revenue Insured Catholic West
Series B 3.00 07/01/05 3,900,000
3,300,000 California HFFA Revenue Catholic West Series D 3.00 07/01/18 3,300,000
6,185,000 California HFFA Revenue Catholic Healthcare
Series B 3.00 07/01/06 6,185,000
700,000 California HFFA Revenue Sutter Series D 3.55 07/01/22 700,000
10,000,000 California HFFA Revenue Scripps Healthcare
Series A 3.10 10/01/22 10,000,000
8,000,000 California HFFA Catholic West Series C 3.00 07/01/11 8,000,000
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$10,200,000 California HFFA Revenue Catholic Healthcare
Series A 3.00 % 07/01/09 $ 10,200,000
20,000,000 California HFFA Revenue Catholic Healthcare
Series B 3.00 07/01/16 20,000,000
7,000,000 California HFFA Revenue Catholic Healthcare
Series C 3.00 07/01/12 7,000,000
13,200,000 California HFFA Revenue Catholic Healthcare
Series D 3.00 07/01/21 13,200,000
1,100,000 California HFFA Revenue Santa Barbara Cottage
Series C 3.70 09/01/15 1,100,000
10,450,000 California HFFA Revenue Catholic Healthcare
Series B 3.00 07/01/20 10,450,000
5,100,000 California HFFA Revenue Children's Hospital 3.60 11/01/21 5,100,000
2,600,000 California HFFA Revenue Adventist Health System
Series B 3.70 08/01/21 2,600,000
1,500,000 California HFFA Revenue St. Joseph Health
System Series B 3.55 07/01/09 1,500,000
200,000 California HFFA Revenue Sutter Series B 3.55 03/01/20 200,000
8,270,000 California HFFA Revenue Scripps Memorial
Hospital Series B 3.33 12/01/15 8,270,000
2,000,000 California HFA Multi Unit Rent 3.75 08/01/10 2,000,000
2,100,000 California HFA Revenue Multi-Family FNMA
Collateralized 3.00 07/15/13 2,100,000
4,575,000 California HFA Revenue COP 4.10 08/01/26 4,575,000
7,300,000 California PCFA Revenue Solid Waste Disposal 3.70 10/01/31 7,300,000
8,750,000 California PCR CP 3.10 01/05/99 8,750,000
2,500,000 California PCR 3.20 10/05/98 2,500,000
1,000,000 California PCR 2.80 10/08/98 1,000,000
16,000,000 California PCR 3.30 10/06/98 16,000,000
600,000 California PCR Southern California Edison
Series C 4.15 02/28/08 600,000
500,000 California PCR Shell Oil Project Series A 3.75 10/01/09 500,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 900,000 California PCR Pacific Gas & Electric 3.75 % 02/01/16 $ 900,000
400,000 California PCR 3.25 10/01/98 400,000
8,000,000 California PCR 3.10 10/01/98 8,000,000
100,000,000 California School Cash Reserve Pool Series A 4.50 07/02/99 100,549,501
2,700,000 California School Financing Corporation Project
Series B 3.10 07/01/24 2,700,000
70,000,000 California State GO 4.00 06/30/99 70,432,600
2,325,000 California State Economic Development Financing
Authority Revenue Independent System Project
A 4.00 04/01/08 2,325,000
9,000,000 California State Economic Development Financing
Authority Revenue System Project A 3.40 10/02/98 9,000,000
45,000 California State Custodial CR 152 3.92 11/01/24 45,000
265,000 California State Custodial CR 153 3.92 11/01/24 265,000
10,120,000 California State Custodial CR 153D 3.92 11/01/24 10,120,000
50,800,000 California State GO CP 3.25 11/04/98 50,800,000
7,300,000 California State GO CP 2.95 12/08/98 7,300,000
20,500,000 California State GO CP 3.30 11/02/98 20,500,000
20,000,000 California State GO 3.20 11/03/98 20,000,000
65,000,000 California State GO 3.05 10/05/98 65,000,000
4,500,000 California State Public Works Revenue 3.71 09/01/17 4,500,000
4,955,000 California State Custodial CR 152D 3.92 11/01/24 4,955,000
2,900,000 California Statewide CDA Revenue COP 3.80 12/01/09 2,900,000
1,000,000 California Statewide CDA Revenue St. Joseph
Health System 3.10 07/01/08 1,000,000
100,000 California Statewide CDA Revenue St. Joseph
Health System Group 3.55 07/01/24 100,000
52,900,000 California Statewide CDA Revenue 3.80 09/30/99 52,900,000
5,000,000 Chula Vista CA IDA Revenue CP 3.15 01/13/99 5,000,000
6,000,000 Chula Vista CA IDA Revenue CP 3.15 01/05/99 6,000,000
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$10,700,000 Chula Vista CA IDA Revenue San Diego Gas &
Electric Company Series B 3.20 % 12/01/27 $ 10,700,000
900,000 Chula Vista CA IDA Revenue San Diego Gas &
Electric Company Series A 4.00 07/01/21 900,000
1,300,000 Chula Vista CA IDA Revenue 4.20 12/01/21 1,300,000
2,900,000 Montebello CA IDA Sunclipse Project 3.20 04/01/15 2,900,000
8,700,000 Moorpark CA MFHR Le Club Apartments Project
Series A 3.65 11/01/15 8,700,000
5,100,000 Colton CA RDA COP Las Palomas Association
Project 3.70 11/01/15 5,100,000
500,000 Colton CA RDA Issue A 3.50 05/01/10 500,000
3,000,000 Contra Costa County CA Water District CP 3.25 01/05/99 3,000,000
745,000 Contra Costa County CA MFHR El Cerrito Royale
Project Series A 3.90 12/01/17 745,000
2,000,000 Duarte CA RDA Revenue Johnson Duarte Series B 3.35 12/01/14 2,000,000
2,200,000 Dublin CA Housing Revenue Series A 3.45 06/01/28 2,200,000
26,100,000 Eagle Tax-Exempt Trust Series 94C0503 3.92 09/01/03 26,100,000
4,700,000 Eagle Tax-Exempt Trust Series 96C0503 3.92 09/01/03 4,700,000
2,700,000 Eastern Municipal Water District Revenue Series
B 3.60 07/01/20 2,700,000
150,000 Fairfield CA IDA Revenue Herman Rowland 3.50 04/01/05 150,000
2,500,000 Foothill Eastern CA Transportation Corridor
Agency Revenue Series E 3.05 01/02/35 2,500,000
1,000,000 Foothill Eastern CA Transportation Corridor
Agency Revenue Series B 3.60 01/02/35 1,000,000
2,000,000 Fremont CA Family Resource Center COP 3.55 08/01/28 2,000,000
6,800,000 Fullerton CA IDA Revenue Sunclipse Incorporated
Project Series A 3.20 07/01/15 6,800,000
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 7,050,000 Hayward CA HFA Revenue Multi-Family Barrington
Hills Series A 3.20 % 06/15/25 $ 7,050,000
4,000,000 Hayward CA MFHR Shorewood 3.60 08/01/14 4,000,000
3,570,000 Huntington Beach CA Housing Revenue Seabridge
Villas Series A 4.00 02/01/10 3,570,000
500,000 Irvine CA GO 3.80 10/01/05 500,000
1,000,000 Irvine CA Water District Revenue 3.80 10/01/10 1,000,000
2,300,000 Irvine CA Improvement Bond District No. 94-13 3.80 09/02/22 2,300,000
828,000 Irvine CA Improvement Bond 3.80 09/02/15 828,000
8,600,000 Irvine CA Public Facilities Revenue 3.50 11/01/10 8,600,000
1,500,000 Irvine CA Revenue East Investment Company 3.70 12/01/05 1,500,000
2,900,000 Irvine CA Water District Revenue 3.80 08/01/16 2,900,000
8,100,000 Irvine CA Water District Revenue 3.80 01/01/21 8,100,000
7,500,000 Kern County CA TRAN 4.75 10/01/98 7,500,000
1,800,000 Kern County CA COP 3.00 08/01/06 1,800,000
100,000 Lancaster CA Westwood Park Apartments 3.70 12/01/07 100,000
3,800,000 Livermore CA MFHR 3.00 07/15/18 3,800,000
12,900,000 Long Beach CA CP 3.15 01/13/99 12,900,000
3,000,000 Long Beach CA CP 3.20 02/04/99 3,000,000
3,000,000 Long Beach CA Harbor Revenue 3.55 01/07/99 3,000,000
16,000,000 Los Angeles CA DW & P 3.55 10/07/98 16,000,000
15,000,000 Los Angeles CA DW & P 3.10 10/01/98 15,000,000
15,200,000 Los Angeles CA DW & P 3.25 01/05/99 15,200,000
10,000,000 Los Angeles CA USD 3.70 07/01/21 10,000,000
13,000,000 Los Angeles CA Wastewater System Revenue 3.40 11/10/98 13,000,000
22,875,000 Los Angeles CA CP Wastewater System Revenue 3.25 01/05/99 22,875,000
24,000,000 Los Angeles CA MFHR Promenade Towers 3.50 04/01/09 24,000,000
4,000,000 Los Angeles CA DW & P 3.10 01/07/99 4,000,000
1,800,000 Los Angeles CA MFHR 3.65 07/01/15 1,800,000
2,515,000 Los Angeles CA MFHR Series C 4.25 12/01/10 2,515,000
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 2,000,000 Los Angeles CA Pension Obligation Series A 3.00 % 06/30/07 $ 2,000,000
23,900,000 Los Angeles CA Pension Obligation Series C 3.00 06/30/07 23,900,000
10,200,000 Los Angeles CA USD COP 3.10 12/01/17 10,200,000
100,000,000 Los Angeles County CA TRAN Series A 4.50 06/30/99 100,595,560
13,500,000 Los Angeles County CA Pension Obligation 3.00 06/30/07 13,500,000
1,600,000 Los Angeles County CA CP 3.35 10/02/98 1,600,000
12,500,000 Los Angeles County CA CP 3.35 10/01/98 12,500,000
6,900,000 Los Angeles County CA Housing Revenue Sand
Canyon Ranch Project Series F 3.30 11/01/06 6,900,000
21,000,000 Los Angeles County CA Metropolitan
Transportation 3.30 10/02/98 21,000,000
7,300,000 Los Angeles County CA Metropolitan
Transportation Series A 3.60 07/01/20 7,300,000
500,000 Los Angeles County CA MFHR Issue A 3.50 07/01/14 500,000
22,000,000 Los Angeles County CA Transportation Revenue 3.00 07/01/12 22,000,000
600,000 Metropolitan Water District Southern California 3.55 10/07/98 600,000
2,000,000 Metropolitan Water District Southern California 3.40 01/13/99 2,000,000
7,000,000 Metropolitan Water District Southern California 3.25 01/05/99 7,000,000
21,600,000 Metropolitan Water District Southern California 3.55 10/07/98 21,600,000
4,000,000 Metropolitan Water District Southern California 3.20 10/02/98 4,000,000
11,000,000 Metropolitan Water District Southern California 3.30 10/06/98 11,000,000
3,000,000 Metropolitan Water District Southern California 3.25 01/05/99 3,000,000
33,775,000 Metropolitan Water District Southern California
Series A 3.60 06/01/23 33,775,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 5,300,000 Modesto CA MFHR Westdale Commons Series A 3.70 % 12/01/15 $ 5,300,000
8,800,000 Ontario CA MFHR Series A 3.70 08/01/07 8,800,000
900,000 Orange County CA Apartment Development Revenue
Miguel Summit 1 Series A 3.30 11/01/09 900,000
6,700,000 Orange County CA Apartment Development Revenue
Harbor Pointe Issue D 3.70 06/15/28 6,700,000
10,000,000 Orange County CA CP Municipal Water District 3.20 10/05/98 10,000,000
11,000,000 Orange County CA Apartment Development Revenue
Seaside Meadow Series C 3.35 08/01/08 11,000,000
2,700,000 Orange County CA Apartment Development Revenue
Miguel Summit 2 Series B 3.50 11/01/09 2,700,000
3,200,000 Orange County CA Apartment Development Revenue
Monarch Bay Apartments Project 3.70 10/01/07 3,200,000
9,500,000 Orange County CA Apartment Development Revenue
Bear Brands Apartments Project Series Z 3.35 11/01/07 9,500,000
7,249,000 Orange County CA Apartment Development Revenue
Harbor Point Issue D 3.50 12/01/06 7,249,000
22,800,000 Orange County CA Apartment Development Revenue
Ref 1991 - A 2.70 12/01/06 22,800,000
3,100,000 Orange County CA Sanitation District COP 3.80 08/01/15 3,100,000
60,700,000 Orange County CA Sanitation District COP 3.60 08/01/13 60,700,000
3,300,000 Orange County CA Sanitation District COP 3.80 08/01/16 3,300,000
2,335,000 Redlands CA Water Treatment Facilities Project
COP 3.10 09/01/15 2,335,000
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 3,200,000 Redlands CA MFHR COP 3.65 % 02/01/16 $ 3,200,000
30,000,000 Riverside County CA GO 4.50 09/30/99 30,345,615
1,543,000 Riverside County CA Public Facility Revenue
Series B COP 3.00 12/01/15 1,543,000
5,600,000 Riverside County CA Public Facility Revenue
Series C COP 3.00 12/01/15 5,600,000
1,900,000 Riverside County CA Public Facility Revenue
Series D COP 3.90 12/01/15 1,900,000
3,940,000 Riverside County CA HFA Revenue COP 3.00 07/15/18 3,940,000
10,000,000 Riverside County CA COP 3.00 10/05/98 10,000,000
1,130,000 Riverside County CA COP 3.15 12/07/98 1,130,000
20,000,000 Riverside County CA COP Series A 3.80 09/30/99 20,000,000
23,432,000 Sacramento CA MUD 3.00 10/01/98 23,432,000
6,600,000 Sacramento County CA COP 3.50 06/01/20 6,600,000
400,000 San Bernardino County CA Western Properties
Project 11 3.70 05/01/05 400,000
1,900,000 San Bernardino County CA Woodview Apartments
Project I 4.25 04/01/07 1,900,000
700,000 San Bernardino County CA MFHR Western
Properties Project III 3.70 08/01/05 700,000
100,000 San Bernardino County CA MFHR Western
Properties Project IV 3.70 08/01/05 100,000
5,000,000 San Bernardino County CA MFHR Alta Loma
Heritage Series A 3.50 02/01/23 5,000,000
2,185,000 San Bernardino County CA MFHR Gold West Phase
Series B 3.50 05/01/17 2,185,000
4,925,000 San Bernardino County CA MFHR 3.50 05/01/17 4,925,000
9,400,000 San Diego CA CP Water Authority Revenue 3.40 01/07/99 9,400,000
1,000,000 San Diego CA CP TRANS 3.20 10/02/98 1,000,000
30,000,000 San Diego CA COP Area Local Gov't Series A25 3.80 09/30/99 30,000,000
4,300,000 San Diego CA MFHR 3.65 12/01/08 4,300,000
2,920,000 San Diego CA MFHR La Cima Apartments 3.65 12/01/08 2,920,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 5,200,000 San Diego CA MFHR Mira Mesa Apartments Series E 4.25 % 04/01/07 $ 5,200,000
3,500,000 San Diego CA MFHR University Town Center
Apartments 3.40 10/01/15 3,500,000
2,635,000 San Diego CA MFHR Flores 4.00 06/01/05 2,635,000
4,200,000 San Diego CA Transportation Revenue 3.40 01/07/99 4,200,000
7,000,000 San Diego CA USD 3.25 10/02/98 7,000,000
19,705,000 San Francisco CA CP City & County Airport 3.10 01/05/99 19,705,000
10,000,000 San Francisco Airport CA 3.80 01/01/27 10,000,000
8,000,000 San Francisco Airport CA 4.40 05/01/29 8,000,000
13,550,000 San Francisco CA Housing Revenue Winterland
Project 3.30 06/01/06 13,550,000
15,255,000 San Francisco CA City & County RDA Rincon
Center Project B 3.30 12/01/06 15,255,000
14,500,000 San Francisco CA City & County RDA Fillmore
Center A-1 3.25 12/01/17 14,500,000
3,000,000 San Francisco CA City & County RDA Fillmore
Center A-2 3.30 12/01/17 3,000,000
5,750,000 San Francisco CA City & County RDA Fillmore
Center B-2 3.30 12/01/17 5,750,000
8,010,000 San Francisco CA City & County RDA Yerba Buena
Garden 3.10 09/01/06 8,010,000
18,700,000 San Francisco CA City & County RDA Fillmore
Center B-1 3.25 12/01/17 18,700,000
3,150,000 San Jacinto CA USD 3.70 09/01/14 3,150,000
9,000,000 San Joaquin County CA CP Transportation
Authority Sales Tax Revenue 3.15 12/03/98 9,000,000
1,300,000 San Jose CA MFHR Kimberly Woods Apartment
Project 3.70 11/01/08 1,300,000
6,000,000 San Jose CA Merged Area Redevelopment Project
Series A 3.05 07/01/26 6,000,000
6,800,000 San Jose CA Merged Area Redevelopment Project
Series B 3.40 07/01/26 6,800,000
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 7,300,000 San Jose/Santa Clara Clean Water Financing
Authority 3.00 % 11/15/20 $ 7,300,000
2,200,000 San Leandro CA MFHR 3.70 10/01/07 2,200,000
6,600,000 Santa Barbara County CA TRAN Series A 4.50 10/01/98 6,600,000
4,900,000 Santa Clara CA Electric Revenue Series A 3.05 07/01/10 4,900,000
1,500,000 Santa Clara CA Electric Revenue Series B 3.05 07/01/10 1,500,000
4,700,000 Santa Clara CA Electric Revenue Series C 3.05 07/01/10 4,700,000
20,000,000 Santa Clara County CA Financing Authority
Revenue Series 41 3.75 11/15/22 20,000,000
7,500,000 Santa Clara County CA El Camino Hospital
District Medical Center Project Series A 3.40 08/01/15 7,500,000
9,600,000 Santa Clara County CA El Camino Hospital
District Medical Center Project Series B 3.40 08/01/15 9,600,000
1,000,000 Santa Clara County CA MFHR Foxchase Apartment 3.60 11/01/07 1,000,000
4,475,000 Simi Valley CA MFHR Series A 3.50 07/01/23 4,475,000
2,500,000 Simi Valley CA Public Financing Lease Revenue 3.05 09/01/15 2,500,000
17,200,000 Southern California Public Power Authority
Revenue Palo Verde Project Series B 3.00 07/01/09 17,200,000
26,620,000 Southern California Public Power Authority
Revenue Palo Verde Project Series C 3.00 07/01/17 26,620,000
4,900,000 Southern California Public Power Authority
Revenue Transmission Project 3.00 07/01/19 4,900,000
6,300,000 Tracy CA MFHR Sycamore Village Apartments
Series A 3.25 05/01/15 6,300,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 1,000,000 Turlock CA Irrigation District COP Series A 3.05 % 01/01/26 $ 1,000,000
4,615,000 Turlock CA Irrigation District COP 3.05 01/01/14 4,615,000
300,000 Tustin CA Bond Act 1915 3.80 09/02/13 300,000
18,000,000 University of California GO CP 3.15 12/17/98 18,000,000
25,000,000 University of California GO CP 3.55 10/06/98 25,000,000
2,500,000 University of California GO CP 3.20 10/02/98 2,500,000
6,600,000 University of California GO CP 3.35 01/13/99 6,600,000
13,800,000 University of California GO CP 3.25 01/04/99 13,800,000
20,000,000 University of California GO CP 3.25 01/04/99 20,000,000
6,100,000 Vacaville CA MFHR Western Properties Sycamore 3.70 04/01/05 6,100,000
8,300,000 Walnut Creek CA MFHR Creekside Apartments 3.70 04/01/07 8,300,000
7,000,000 Water Utility Improvements Lease Revenue 3.15 05/01/28 7,000,000
20,100,000 West Basin CA Water District Revenue 2.95 08/01/27 20,100,000
1,500,000 West Covina CA RDA Revenue Public Parking
Project 3.50 08/01/18 1,500,000
12,000,000 West Covina CA RDA Revenue 3.25 09/01/05 12,000,000
--------------
TOTAL MUNICIPAL SECURITIES $2,024,159,193
(cost $2,024,159,193)
VARIABLE AND FLOATING RATE BONDS "AMT" - 4.49%
$ 3,000,000 Anaheim CA HFA Revenue Sage Project Series A 3.90 % 12/01/16 $ 3,000,000
10,000,000 Anaheim CA HFA Revenue Park Vista Series A 3.90 12/15/23 10,000,000
4,200,000 Big Bear Lake CA IDA Revenue Southwest Gas
Corporation Project Series A 3.10 12/01/28 4,200,000
16,300,000 California PCR Pacific Gas & Electric Company
Series A 3.15 12/01/16 16,300,000
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS "AMT" (CONTINUED)
$ 3,800,000 California PCR Pacific Gas & Electric Company
Series B 3.20 % 12/01/16 $ 3,800,000
1,000,000 California PCR Pacific Gas & Electric Company
Series B 3.75 11/01/26 1,000,000
1,900,000 California PCR Refunded Pacific Gas & Electric
Company Series D 3.25 01/01/10 1,900,000
200,000 California PCR Stanislaus Project 3.65 12/01/17 200,000
800,000 California PCR Honeylake Power 4.20 09/01/18 800,000
3,000,000 California PCR Colma Energy Solid Waste
Disposal Colmac Energy Project Series A 3.10 12/01/16 3,000,000
6,000,000 California PCR Sanger Project Series A "AMT" 3.10 09/01/20 6,000,000
4,200,000 California PCR Colma Energy Solid Waste
Disposal Colmac Energy Project Series B 3.10 12/01/16 4,200,000
7,800,000 California PCR Shell Oil Waste Disposal Revenue
Series A 3.70 10/01/24 7,800,000
1,800,000 California Statewide CDA Revenue Chevron 3.75 12/15/24 1,800,000
1,600,000 California Statewide CDA 4.25 08/01/11 1,600,000
1,100,000 Concord CA MFHR Bel-Air Apartments Issue A 3.90 12/01/16 1,100,000
4,400,000 Escondido CA Community Development 3.90 10/01/16 4,400,000
1,300,000 Fowler CA IDA Revenue Sweet Citrus Incorporated 4.05 12/01/05 1,300,000
1,100,000 Los Angeles CA MFHR Loans to Lenders Series B 4.10 12/01/26 1,100,000
14,800,000 Los Angeles County CA Housing Revenue Sierra
Project 3.35 12/01/08 14,800,000
2,000,000 Rancho Mirage CA RDA COP 3.90 10/01/16 2,000,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS "AMT" (CONTINUED)
$ 1,160,000 San Bernardino County CA IDA Transamerican
Plastic Series V 3.45 % 12/01/06 $ 1,160,000
1,500,000 San Jose CA MFHR Almaden Lake Village
Apartments Series A 3.35 03/01/32 1,500,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 92,960,000
(Cost $92,960,000)
PUERTO RICO MUNICIPAL SECURITIES - 0.75%
$15,500,000 Puerto Rico Highway Revenue 3.10 % 07/01/28 $ 15,500,000
(Cost $15,500,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,132,619,193)* 103.13% $2,132,619,193
(Note 1)
Other Assets and Liabilities, Net (3.13) (64,823,185)
------ --------------
TOTAL NET ASSETS 100.00% $2,067,796,008
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A
DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
PORTFOLIO OF INVESTMENTS -
Government Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCIES - 45.39%
$ 2,000,000 Federal Home Loan Bank 5.83 % 12/17/98 $ 2,000,265
1,370,000 Federal Home Loan Bank 5.63 04/09/99 1,369,261
3,000,000 Federal Home Loan Bank 5.57 03/09/99 2,999,973
2,000,000 Federal Home Loan Bank 5.57 04/07/99 1,999,075
5,000,000 Federal Home Loan Bank 4.99 08/19/99 4,992,935
3,000,000 Federal Home Loan Bank 5.66 11/09/98 2,999,781
2,000,000 Federal National Mortgage Association 5.76 11/04/98 2,000,071
1,300,000 Federal National Mortgage Association 5.48 11/02/98 1,298,858
5,000,000 Student Loan Mortgage Association 5.03 11/05/98 4,999,952
5,000,000 Student Loan Mortgage Association 5.03 11/12/98 5,000,000
--------------
TOTAL FEDERAL AGENCIES $ 29,660,171
(Cost $29,660,171)
VARIABLE AND FLOATING RATE BONDS - 40.35%
$ 3,000,000 Federal Farm Credit Bank 5.50 % 11/02/98 $ 3,000,341
3,000,000 Federal Farm Credit Bank 5.24 02/25/99 2,999,408
5,000,000 Federal Home Loan Mortgage Corporation 5.31 12/02/98 4,953,931
1,300,000 Federal National Mortgage Association 5.32 05/19/99 1,257,060
4,000,000 Federal National Mortgage Association 5.23 02/25/99 3,915,883
6,000,000 Federal National Mortgage Association 5.01 10/20/98 4,999,887
4,000,000 Federal National Mortgage Association 5.01 08/19/99 3,997,406
1,300,000 Federal National Mortgage Association 5.45 08/04/99 1,242,131
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 26,366,047
(cost $26,366,047)
</TABLE>
22
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Government Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 13.99%
$ 760,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.45 % 10/01/98 $ 760,000
926,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.35 10/01/98 926,000
7,452,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.30 10/01/98 7,452,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 9,138,000
(Cost $9,138,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $65,164,217)* 99.73% $ 65,164,217
(Note 1)
Other Assets and Liabilities, Net 0.27 174,838
------ --------------
TOTAL NET ASSETS 100.00% $ 65,339,055
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
23
<PAGE>
PORTFOLIO OF INVESTMENTS -
Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER - 45.86%
$79,200,000 Abbey National Corporation - North America 4.39 %# 10/05/98 $ 79,152,393
100,000,000 Asset Securitization Corporation++ 5.44 # 11/06/98 99,449,000
20,000,000 Associates Corporation of North America 5.43 # 11/03/98 19,898,800
50,000,000 CC USA Incorporated++ 4.89 # 10/08/98 49,946,431
43,500,000 CC USA Incorporated++ 5.50 # 01/06/99 42,857,698
39,500,000 CC Incorporated++ 5.50 # 01/08/99 38,904,735
25,000,000 Ciesco LP++ 5.34 # 10/22/98 24,919,500
49,500,000 Commercial Credit 4.96 # 10/09/98 49,439,500
50,000,000 Commercial Credit 5.45 # 11/13/98 49,671,528
50,000,000 Commercial Credit 5.40 # 11/06/98 49,726,500
50,000,000 Corporate Asset Funding Corporation++ 5.41 # 10/30/98 49,777,667
75,000,000 Corporate Asset Funding Corporation++ 4.81 # 10/07/98 74,930,813
55,000,000 Corporate Asset Funding Corporation++ 5.48 # 11/23/98 54,553,844
75,000,000 Corporate Asset Funding Corporation++ 5.44 # 11/06/98 74,586,750
35,000,000 Corporate Receivables Corporation++ 5.17 # 10/13/98 34,935,600
32,000,000 Corporate Receivables Corporation++ 4.48 # 10/05/98 31,980,373
40,000,000 Corporate Receivables Corporation++ 4.97 # 10/09/98 39,950,933
50,000,000 Corporate Receivables Corporation++ 5.48 # 11/20/98 49,617,362
95,000,000 Dresdner U.S. Finance Incorporated 4.79 # 10/07/98 94,912,758
35,000,000 Falcon Assets Securitization Corporation++ 4.91 # 10/08/98 34,962,297
95,000,000 Ford Motor Credit Corporation 5.33 # 10/23/98 94,680,694
110,000,000 Ford Motor Credit Corporation 4.65 # 10/06/98 109,915,972
170,000,000 Ford Motor Credit Corporation 5.50 # 02/02/99 166,797,011
50,000,000 General Electric Capital Corporation 5.50 # 01/05/99 49,269,334
125,000,000 General Electric Capital Corporation 5.49 # 01/07/99 123,138,681
55,000,000 General Electric Capital Corporation 5.51 # 02/11/99 53,886,494
75,000,000 General Electric Capital Corporation 2.75 # 10/02/98 74,988,708
50,000,000 General Electric Capital Corporation 5.46 # 11/18/98 49,633,333
50,000,000 General Electric Capital Corporation 5.50 # 01/05/99 49,269,333
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$100,000,000 Goldman Sachs & Company 4.66 %# 10/06/98 $ 99,923,472
195,000,000 Goldman Sachs & Company 5.43 # 11/13/98 193,724,632
125,000,000 Goldman Sachs & Company 5.47 # 11/24/98 123,970,625
50,000,000 Greenwich Asset Funding Incorporated++ 4.47 # 10/05/98 49,969,389
80,000,000 Greenwich Asset Funding Incorporated++ 5.43 # 12/07/98 79,190,044
100,000,000 IBM Credit Corporation 5.31 # 10/20/98 99,709,194
45,000,000 Merrill Lynch & Company Incorporated 5.20 # 10/14/98 44,910,300
34,500,000 Merrill Lynch & Company Incorporated 5.21 # 10/15/98 34,426,074
50,000,000 Merrill Lynch & Company Incorporated 5.46 # 11/16/98 49,648,611
50,000,000 Merrill Lynch & Company Incorporated 5.46 # 11/17/98 49,640,972
97,520,000 Monte Rosa Capital Corporation++ 5.24 # 10/15/98 97,310,112
75,000,000 Monte Rosa Capital Corporation++ 5.48 # 11/16/98 74,471,000
44,324,000 Monte Rosa Capital Corporation++ 5.44 # 11/20/98 43,987,261
50,000,000 Morgan Stanley 5.35 # 10/23/98 49,831,333
125,000,000 Morgan Stanley 5.35 # 01/22/99 122,912,639
46,700,000 Motorola 5.43 # 11/20/98 46,345,858
11,990,000 National Rural 4.87 # 10/08/98 11,977,201
40,000,000 NationsBank Corporation 5.51 # 01/06/99 39,408,300
50,000,000 Receivables Capital Corporation 5.35 # 10/23/98 49,831,333
45,600,000 Rio Tinto America Incorporated 5.25 # 10/16/98 45,495,120
22,000,000 Rio Tinto America Incorporated 5.40 # 10/28/98 21,908,920
27,000,000 Rio Tinto America Incorporated 5.44 # 11/06/98 26,851,230
75,000,000 Riverwoods 5.45 # 11/12/98 74,518,750
40,000,000 Sheffield Receivables Corporation++ 5.47 # 11/23/98 39,676,111
77,000,000 Sigma Finance Incorporated++ 5.48 # 11/16/98 76,456,893
42,000,000 Sigma Finance Incorporated++ 5.49 # 11/30/98 41,614,300
50,000,000 Sigma Finance Incorporated++ 5.53 # 01/26/99 49,106,250
70,000,000 Suntrust Incorporated 5.30 # 10/19/98 69,806,800
33,000,000 USAA Capital 5.31 # 10/20/98 32,904,034
45,000,000 Unifunding 5.43 # 11/04/98 44,765,613
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS -
Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$50,000,000 Variable Funding Capital Corporation++ 5.16 %# 10/13/98 $ 49,908,167
75,000,000 WCP Funding Incorporation++ 5.35 # 10/23/98 74,747,000
25,000,000 WCP Funding Incorporation++ 4.97 # 10/09/98 24,969,333
62,565,000 Windmill Funding Corporation++ 5.46 # 11/13/98 62,153,235
41,529,000 Windmill Funding Corporation++ 5.45 # 11/23/98 41,193,953
--------------
TOTAL COMMERCIAL PAPER $3,953,018,102
(Cost $3,953,018,102)
CORPORATE BONDS - 22.05%
$50,000,000 Abbey National Treasury 5.64 % 07/15/99 $ 50,117,222
60,000,000 Bank America 5.60 01/12/99 60,000,000
100,000,000 Beta Finance 5.07 10/02/98 100,000,000
15,000,000 CC USA MTN 5.78 06/11/99 14,997,932
45,000,000 Centari Corporation MTN 5.75 04/23/99 45,000,000
78,000,000 CIT Group FRN 5.32 01/27/99 77,979,827
50,000,000 FCC National Bank 5.67 06/01/99 49,960,172
99,300,000 FCC National Bank 5.45 03/10/99 99,300,000
50,000,000 FCC National Bank 5.63 01/08/99 50,000,000
46,000,000 First National Bank of Chicago 5.75 05/10/99 45,986,669
70,000,000 First National Bank of Chicago 5.73 05/19/99 69,966,213
180,000,000 First Union National Bank 5.35 09/09/99 180,000,000
75,000,000 First Union National Bank 5.25 09/17/99 75,000,000
115,000,000 First Union National Bank 5.63 02/04/99 115,000,000
19,000,000 Huntington National Bank 5.13 12/09/98 18,999,479
48,000,000 Huntington National Bank 5.74 05/05/99 47,987,757
50,000,000 IBM Credit Corporation 5.12 11/16/98 50,000,000
95,500,000 IBM Credit Corporation 5.58 08/27/99 95,455,102
165,000,000 JP Morgan & Company Incorporated 5.61 09/15/99 165,000,000
50,000,000 Morgan Guaranty Company Bank Note 5.55 02/04/99 49,954,491
100,000,000 Morgan Guaranty Trust Company 5.71 01/08/99 99,989,693
160,000,000 NationsBank Corporation 5.83 12/22/98 159,978,433
140,000,000 NationsBank Corporation 5.83 12/29/98 139,973,876
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
$20,000,000 NationsBank Corporation 5.50 % 02/04/99 $ 20,000,000
20,000,000 Sigma Finance 5.95 11/20/98 20,000,000
--------------
TOTAL CORPORATE BONDS $1,900,646,865
(Cost $1,900,646,865)
VARIABLE AND FLOATING RATE BONDS - 19.11%
$60,000,000 Abbey National 5.55 % 07/15/99 $ 59,970,068
150,000,000 Abbey National 5.54 07/26/99 149,896,471
65,000,000 Abbey National Treasury 5.54 08/17/99 64,956,121
30,000,000 American Express Centurion 5.14 12/15/98 30,000,000
25,000,000 American Express Centurion 5.47 04/26/99 25,000,000
50,000,000 American Express Centurion 5.61 09/10/99 50,000,000
100,000,000 CIT Group Holdings 5.32 02/10/99 99,982,402
97,000,000 Comerica Bank 5.12 12/14/98 96,996,303
34,000,000 Commercial Bank 5.58 07/13/99 33,984,302
100,000,000 Walt Disney 5.61 02/10/99 99,991,161
55,000,000 First National Bank 5.62 09/28/99 55,000,000
40,000,000 Ford Motor Credit Corporation 5.71 01/07/99 40,000,000
20,000,000 Beta Finance 5.01 11/30/98 20,000,000
100,000,000 IBM Credit Corporation 5.29 02/22/99 99,974,975
50,000,000 Key Bank 5.13 12/15/98 49,999,014
74,000,000 Key Bank 5.30 02/24/99 73,979,872
60,000,000 NationsBank Corporation 5.57 06/25/99 59,979,047
75,000,000 Pepsico Incorporated 5.50 08/19/99 74,922,072
150,000,000 Royal Bank of Canada 5.29 02/09/99 149,963,392
75,000,000 Sigma Finance 5.03 08/23/99 75,000,000
65,000,000 Sigma Finance 4.94 08/26/99 65,000,000
45,000,000 Sigma Finance 5.20 11/05/98 45,000,000
50,000,000 JP Morgan & Company Incorporated 5.50 12/16/98 50,000,000
78,000,000 Wachovia Corporation 5.44 05/14/99 77,966,823
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $1,647,562,023
(Cost $1,647,562,023)
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS -
Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSITS - 9.47%
$19,000,000 Abbey National 5.55 % 01/26/99 $ 18,997,078
100,000,000 American Express Centurion Bank 5.42 12/16/98 100,000,000
50,000,000 Bayerische Landesbank 5.34 03/23/99 49,981,589
20,000,000 Canadian Bank 5.94 10/21/98 19,999,960
50,000,000 Harris Trust Bank 5.56 10/09/98 50,000,000
50,000,000 Harris Trust Bank 5.50 11/10/98 50,000,000
100,000,000 Northern Trust 5.55 10/19/98 100,000,000
65,500,000 RaboBank Nederland 5.71 05/05/99 65,465,649
70,000,000 RaboBank Nederland 5.74 05/19/99 69,970,436
142,000,000 Societe Generale 5.60 01/13/99 141,988,358
50,000,000 Societe Generale 5.91 10/15/98 49,999,083
100,000,000 Swiss Bank 5.64 03/12/99 99,972,348
--------------
TOTAL CERTIFICATES OF DEPOSITS $ 816,374,501
(Cost $816,374,501)
FEDERAL AGENCIES - 2.30%
$26,000,000 Federal National Mortgage Association 5.01 % 08/19/99 $ 25,983,141
125,000,000 Federal Home Loan Mortgage Corporation Discount
Note 5.01 03/19/99 122,112,917
50,000,000 Federal Home Loan Mortgage Corporation Discount
Note 4.68 10/07/98 49,954,583
--------------
TOTAL FEDERAL AGENCIES $ 198,050,641
(Cost $198,050,641)
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 0.92%
$ 8,568,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.45 % 10/01/98 $ 8,568,000
251,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.35 10/01/98 251,000
451,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.30 10/01/98 451,000
69,789,000 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.35 10/01/98 69,789,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 79,059,000
(Cost $79,059,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $8,594,711,132)* 99.71% $8,594,711,132
(Note 1)
Other Assets and Liabilities, Net 0.29 25,161,783
------ --------------
TOTAL NET ASSETS 100.00% $8,619,872,915
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
++ REPRESENTS COMMERCIAL PAPER SOLD WITHIN TERMS OF PRIVATE PLACEMENT
MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION 4(2) OF THE
SECURITIES ACT OF 1933, THAT MAY BE RESOLD TO QUALIFIED INSTITUTIONAL
BUYERS. THIS SECURITY WAS 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.
29
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES - 99.54%
ARIZONA - 7.86%
$ 2,000,000 Arizona School District COP Series A 4.10 % 07/30/99 $ 2,008,498
2,755,000 Salt River AZ Agricultural Improvement & Power
District Series A 7.00 01/01/99 2,777,867
2,000,000 Maricopa AZ CP 3.50 12/15/98 2,000,000
--------------
$ 6,786,365
CALIFORNIA - 4.98%
$ 500,000 California HFFA Revenue Series C 3.55 % 07/01/22 $ 500,000
2,000,000 California Higher Education Student Loan
Revenue Series E-5 3.80 12/01/25 2,000,000
1,800,000 Irvine Ranch CA Water District GO 3.80 04/01/33 1,800,000
--------------
$ 4,300,000
COLORADO - 1.39%
$ 1,200,000 Colorado HFFA Revenue Series C MBIA Insured 3.90 % 10/01/14 $ 1,200,000
CONNECTICUT - 3.32%
$ 2,870,000 Connecticut State HFA 3.80 % 05/15/18 $ 2,870,000
FLORIDA - 9.61%
$ 3,300,000 Dade County FL MFHR 3.50 % 05/15/05 $ 3,300,000
500,000 Dade County FL MFHR 4.05 07/01/06 500,000
1,000,000 Indian River FL CP 3.60 01/07/99 1,000,000
3,500,000 Palm Beach FL CP 3.40 01/05/99 3,500,000
--------------
$ 8,300,000
</TABLE>
30
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
GEORGIA - 6.59%
$ 700,000 Georgia Municipal Gas Authority Revenue 3.50 % 11/01/06 $ 700,000
3,995,000 Georgia Municipal Gas CP 3.35 12/01/98 3,995,000
1,000,000 Georgia State Municipal Electric Authority 3.55 01/07/99 1,000,000
--------------
$ 5,695,000
HAWAII - 3.47%
$ 3,000,000 Hawaii State Department of Budget & Finance
Queens Health System Series A Special Purpose
Revenue 3.90 % 07/01/26 $ 3,000,000
INDIANA - 2.89%
$ 2,500,000 Indiana HFFA Revenue Deaconess Hospital
Incorporated 3.55 % 01/01/22 $ 2,500,000
KANSAS - 1.70%
$ 1,470,000 Topeka KS MFHR Revenue Topeka Retirement Center 3.90 % 01/01/09 $ 1,470,000
KENTUCKY - 3.82%
$ 3,300,000 Kentucky Higher Education Student Loan
Corporation Insured Student Loan Revenue 3.60 % 06/01/26 $ 3,300,000
LOUISIANA - 1.16%
$ 1,000,000 De Soto Parish LA PCR 3.50 % 07/01/18 $ 1,000,000
MASSACHUSETTS - 4.63%
$ 4,000,000 Massachusetts State Water CP 3.60 % 10/06/98 $ 4,000,000
MICHIGAN - 1.97%
$ 1,700,000 Grand Rapids MI Water Supply System Revenue
Series O FGIC Insured 3.50 % 01/01/20 $ 1,700,000
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
MISSOURI - 1.45%
$ 1,250,000 Missouri State Health & Educational Facilities
Authority Revenue Christian Health Services
Series A 3.65 % 11/01/19 $ 1,250,000
NEBRASKA - 4.75%
$ 4,100,000 Lancaster County NB Hospital Authority Revenue
Bryan Memorial Hospital Project 3.50 % 06/01/12 $ 4,100,000
NEW HAMPSHIRE - 2.32%
$ 2,000,000 New Hampshire State CP 3.55 % 11/09/98 $ 2,000,000
NEW JERSEY - 2.32%
$ 2,000,000 New Jersey Economic Revenue 3.90 % 05/01/01 $ 2,000,000
NEW YORK - 6.83%
$ 1,000,000 New York NY GO Series B 3.95 % 08/15/22 $ 1,000,000
2,500,000 New York City Health & Hospital Corporation
Series A 3.35 02/15/26 2,500,000
1,400,000 New York City Municipal Water Financing
Authority Water & Sewer System Revenue 4.00 06/15/24 1,400,000
1,000,000 New York State Government Assistance 3.25 04/01/23 1,000,000
--------------
$ 5,900,000
NORTH CAROLINA - 6.48%
$ 3,000,000 Charlotte NC "AMT" 3.60 % 07/01/17 $ 3,000,000
2,000,000 North Carolina Eastern Municipal Power Agency 3.35 12/01/98 2,000,000
600,000 North Carolina CP 3.60 01/04/99 600,000
--------------
$ 5,600,000
OHIO - 1.15%
$ 1,000,000 Ohio State Air Quality Control CP 3.55 % 01/07/99 $ 1,000,000
</TABLE>
32
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
OREGON - 2.58%
$ 1,225,000 Multnomah County OR COP 6.50 % 12/15/98 $ 1,227,689
1,000,000 Multnomah County OR School District COP Series
B 6.60 12/15/98 1,002,126
--------------
$ 2,229,816
SOUTH CAROLINA - 3.32%
$ 2,865,000 South Carolina State Public Service Authority
Revenue 4.00 % 01/01/99 $ 2,867,725
TENNESSEE - 3.24%
$ 1,200,000 Memphis TN Revenue Refunded Series A 3.75 % 08/01/07 $ 1,200,000
1,600,000 Metro Nashville TN Industrial Development Board
Revenue Chimneytop II 4.00 09/01/06 1,600,000
--------------
$ 2,800,000
TEXAS - 6.37%
$ 4,500,000 Gulf Coast TX CP 3.50 % 12/09/98 $ 4,500,000
1,000,000 Brazos River TX PCR Series A 4.25 03/01/26 1,000,000
--------------
$ 5,500,000
UTAH - 2.89%
$ 2,500,000 Utah State CP 3.35 % 12/09/98 $ 2,500,000
WASHINGTON - 0.95%
$ 815,000 Washington State GO 5.75 % 07/01/99 $ 827,442
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
WYOMING - 1.50%
$ 100,000 Lincoln County WY GO 4.10 % 11/01/14 $ 100,000
1,200,000 Uinta County WY PCR 4.00 08/15/20 1,200,000
--------------
$ 1,300,000
TOTAL MUNICIPAL SECURITIES $ 85,996,348
(Cost $85,996,348)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $85,996,348)* 99.54% $ 85,996,348
(Note 1)
Other Assets and Liabilities, Net 0.46 394,699
------ --------------
TOTAL NET ASSETS 100.00% $ 86,391,047
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A
DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER - 35.25%
$88,000,000 Asset Securitization Corporation++ 5.41 %# 10/30/98 $ 87,608,693
35,000,000 Asset Securitization Corporation++ 5.41 # 11/23/98 34,719,689
10,000,000 Associates First Capital Corporation 5.43 # 11/03/98 9,949,400
15,500,000 Beta Finance Incorporated++ 5.50 # 01/06/99 15,271,134
20,000,000 CC USA Incorporated 2.75 # 10/02/98 19,996,989
50,000,000 Commercial Credit Corporation 4.97 # 10/09/98 49,938,722
25,000,000 Commercial Credit Corporation 5.43 # 11/05/98 24,866,076
35,000,000 Corporate Receivables Corporation++ 5.40 # 10/28/98 34,855,100
20,000,000 Ford Motor Credit Corporation 4.65 # 10/06/98 19,984,722
20,000,000 General Electric Corporation 5.49 # 01/07/99 19,702,189
100,000,000 General Electric Capital Corporation 5.46 # 11/19/98 99,251,389
15,000,000 Goldman Sachs Group LP 5.40 # 11/13/98 14,902,354
60,000,000 Goldman Sachs Group LP 5.47 # 11/24/98 59,505,900
60,000,000 Goldman Sachs Group LP 5.41 # 11/04/98 59,688,900
60,000,000 IBM Credit Corporation 5.31 # 10/20/98 59,825,517
25,000,000 Merrill Lynch & Company Incorporated 5.46 # 11/16/98 24,824,306
30,000,000 Merrill Lynch & Company Incorporated 5.46 # 11/17/98 29,784,583
20,000,000 Monte Rosa Capital Corporation++ 5.25 # 10/15/98 19,956,833
25,000,000 JP Morgan & Company Incorporated 5.35 # 10/23/98 24,915,667
100,000,000 Morgan Stanley 5.35 # 01/22/99 98,330,111
89,175,000 Preferred Receivables Funding Corporation 5.20 # 10/14/98 88,997,245
24,515,000 Preferred Receivables Funding Corporation 4.88 # 10/08/98 24,488,783
50,000,000 Province of Quebec 5.50 # 01/06/99 49,261,722
10,000,000 Suntrust Bank 5.47 # 11/17/98 9,928,064
25,000,000 WCP Funding Incorporated++ 5.48 # 11/23/98 24,797,201
28,743,000 Windmill Funding Corporation++ 5.45 # 11/09/98 28,571,428
--------------
TOTAL COMMERCIAL PAPER $1,033,922,717
(Cost $1,033,922,717)
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS -
Prime Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS - 23.63%
$15,000,000 Abbey National Treasury Service 5.64 % 07/15/99 $ 15,035,167
50,000,000 CC USA Incorporated 5.78 06/11/99 49,993,106
25,000,000 Centari Corporation 5.75 04/23/99 25,000,000
50,000,000 CIT Group Holdings Incorporated 5.32 01/27/99 49,987,068
10,500,000 Comerica Bank Detroit 5.97 10/27/98 10,499,706
10,000,000 FCC National Bank 5.67 06/01/99 9,992,034
50,000,000 FCC National Bank 5.63 01/08/99 50,000,000
10,437,000 FCC National Bank 6.05 11/04/98 10,439,957
11,533,000 FCC National Bank 6.17 10/15/98 11,534,923
5,766,000 FCC National Bank 5.94 11/05/98 5,767,095
30,000,000 First National Bank of Chicago 5.73 05/19/99 29,985,480
100,000,000 First Union Bank 5.25 09/17/99 100,000,000
25,000,000 Huntington National Bank 5.13 12/09/98 24,999,315
40,000,000 Huntington National Bank 5.74 05/05/99 39,989,798
25,000,000 IBM Credit Corporation 5.12 11/16/98 25,000,000
15,000,000 IBM Credit Corporation 6.12 12/15/98 15,007,085
50,000,000 JP Morgan & Company Incorporated 5.61 09/15/99 50,000,000
60,000,000 Morgan Guaranty Trust Company 5.71 01/08/99 59,993,816
40,000,000 NationsBank Corporation 5.83 12/22/98 39,994,608
20,000,000 NationsBank Corporation 5.50 02/04/99 20,000,000
50,000,000 Sigma Finance Incorporated 5.14 10/15/98 50,000,000
--------------
TOTAL CORPORATE BONDS $ 693,219,159
(Cost $693,219,159)
CERTIFICATES OF DEPOSITS - 14.28%
$25,000,000 Abbey National Treasury Service 5.55 % 01/26/99 $ 24,996,156
50,000,000 ANZ Banking Group 5.64 02/24/99 50,001,963
29,000,000 Barclays Bank PLC 5.79 05/04/99 29,007,345
20,000,000 Centari Corporation 5.78 04/19/99 20,000,000
40,000,000 Canadian Imperial Bank of Commerce 5.57 10/09/98 40,000,000
30,000,000 Dresdner Bank 5.95 10/20/98 30,000,297
65,000,000 Suntrust Bank 5.75 10/01/98 65,000,000
50,000,000 Harris Trust & Savings 5.56 10/09/98 50,000,000
50,000,000 Societe Generale NY 5.60 01/13/99 49,995,901
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSITS (CONTINUED)
$25,000,000 Swiss Bank Corporation 5.75 % 05/07/99 $ 24,992,851
35,000,000 Swiss Bank Corporation 5.64 03/12/99 34,990,322
--------------
TOTAL CERTIFICATES OF DEPOSITS $ 418,984,834
(Cost $418,984,834)
VARIABLE AND FLOATING RATE BONDS - 17.22%
$90,000,000 Abbey National Treasury Service 5.55 % 07/15/99 $ 89,955,102
30,000,000 American Express Centurion 5.14 12/21/98 30,000,000
20,000,000 Beta Finance 5.01 11/30/98 20,000,000
40,000,000 Commercial Bank 5.58 07/13/99 39,981,532
30,000,000 First National Bank of Chicago 5.62 09/28/99 30,000,000
60,000,000 Ford Motor Credit Corporation 5.71 01/07/99 60,000,000
50,000,000 Ford Motor Credit Corporation 5.45 12/23/98 49,996,703
50,000,000 Key Bank N.A. 5.13 12/15/98 49,999,014
75,000,000 NationsBank Corporation 5.58 04/27/99 74,987,605
25,000,000 Sigma Finance Incorporated 5.03 08/23/99 25,000,000
35,000,000 Sigma Finance Incorporated 4.94 08/26/99 35,000,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 504,919,956
(Cost $504,919,956)
FEDERAL AGENCIES - 3.09%
$51,900,000 Federal Home Loan Mortgage Corporation 5.01 % 03/19/99 $ 50,701,283
40,000,000 Federal Home Loan Mortgage Corporation 5.40 10/07/98 39,963,667
--------------
TOTAL FEDERAL AGENCIES $ 90,664,950
(Cost $90,664,950)
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS -
Prime Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
BANKER'S ACCEPTANCE - 2.20%
$17,000,000 Bank of America 5.25 % 11/18/98 $ 16,879,413
48,000,000 Bank of America 5.25 11/17/98 47,666,613
--------------
TOTAL BANKER'S ACCEPTANCE $ 64,546,027
(Cost $64,546,027)
REPURCHASE AGREEMENTS - 3.94%
$114,435,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.45 % 10/01/98 $ 114,435,000
984,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.30 10/01/98 984,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 115,419,000
(Cost $115,419,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,921,676,643)* 99.61% $2,921,676,643
(Note 1)
Other Assets and Liabilities, Net 0.39 11,326,619
------ --------------
TOTAL NET ASSETS 100.00% $2,933,003,262
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
++ REPRESENTS COMMERCIAL PAPER SOLD WITHIN TERMS OF PRIVATE PLACEMENT
MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION 4(2) OF THE
SECURITIES ACT OF 1933, THAT MAY BE RESOLD TO QUALIFIED INSTITUTIONAL
BUYERS. THIS SECURITY WAS 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
STATEMENTS.
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1998 (UNAUDITED) Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 53.77%
U.S. TREASURY NOTES - 19.95%
$14,340,000 U.S. Treasury Notes 7.13 % 10/15/98 $ 14,347,734
44,640,000 U.S. Treasury Notes 6.38 01/15/99 44,767,367
25,000,000 U.S. Treasury Notes 7.00 04/15/99 25,196,042
60,000,000 U.S. Treasury Notes 6.38 07/15/99 60,441,745
84,635,000 U.S. Treasury Notes 6.50 04/30/99 85,098,217
25,000,000 U.S. Treasury Notes 5.50 11/15/98 25,038,213
75,000,000 U.S. Treasury Notes 5.63 11/30/98 75,017,127
49,775,000 U.S. Treasury Notes 6.25 03/31/99 49,957,818
69,300,000 U.S. Treasury Notes 6.38 04/30/99 69,615,675
30,000,000 U.S. Treasury Notes 5.88 08/31/99 30,188,733
--------------
$ 479,668,671
U.S. TREASURY BILLS - 33.82%
$365,000,000 U.S. Treasury Bills 4.98 %# 10/15/98 $ 364,453,281
100,000,000 U.S. Treasury Bills 5.00 # 10/01/98 100,000,000
50,000,000 U.S. Treasury Bills 4.95 # 10/22/98 49,924,167
300,000,000 U.S. Treasury Bills 4.98 # 11/05/98 298,823,611
--------------
$ 813,201,058
TOTAL U.S. TREASURY SECURITIES $1,292,869,729
(Cost $1,292,869,729)
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS -
Treasury Plus Money Market Fund SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 46.18%
$172,361,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.45 % 10/01/98 $ 172,361,000
284,088,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.35 10/01/98 284,088,000
330,272,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 5.30 10/01/98 330,272,000
323,421,000 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 5.35 10/01/98 323,421,000
--------------
TOTAL REPURCHASE AGREEMENTS $1,110,142,000
(Cost $1,110,142,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,403,011,729)* 99.95% $2,403,011,729
(Note 1)
Other Assets and Liabilities, Net 0.05 1,176,373
------ --------------
TOTAL NET ASSETS 100.00% $2,404,188,102
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
41
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Money Market Funds SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
CALIFORNIA MONEY
TAX-FREE MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $9,138,000 for the Government
Money Market Fund and $1,110,142,000
for the Treasury Plus Money Market
Fund) $2,132,619,193 $65,164,217
Cash 757,258 12,539
RECEIVABLES:
Interest 11,427,273 497,476
Organization expenses, net of
amortization 0 0
Prepaid expenses 44,799 26,819
TOTAL ASSETS 2,144,848,523 65,701,051
LIABILITIES
Payables:
Investment securities purchased 70,432,600 0
Distribution to shareholders 4,331,865 255,903
Due to distributor (Note 2) 1,132,657 49,985
Due to adviser (Note 2) 1,033,781 32,017
Other 121,612 24,091
TOTAL LIABILITIES 77,052,515 361,996
TOTAL NET ASSETS $2,067,796,008 $65,339,055
NET ASSETS CONSIST OF:
Paid-in capital $2,068,098,640 $65,333,645
Undistributed net realized gain (loss)
on investments (302,632) 5,410
TOTAL NET ASSETS $2,067,796,008 $65,339,055
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A(1) $2,067,796,008 $65,339,055
Shares outstanding - Class A(1) 2,068,103,447 65,334,860
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A
Shares outstanding - Administrative
Class N/A N/A
Net asset value and offering price per
share - Administrative Class N/A N/A
Net assets - Class E N/A N/A
Shares outstanding - Class E N/A N/A
Net asset value and offering price per
share - Class E N/A N/A
Net assets - Institutional Class N/A N/A
Shares outstanding - Institutional Class N/A N/A
Net asset value and offering price per
share - Institutional Class N/A N/A
Net assets - Class S/Service Class N/A N/A
Shares outstanding - Class S/Service
Class N/A N/A
Net asset value and offering price per
share - Class S/Service Class N/A N/A
- ---------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
SEPTEMBER 30, 1998 (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL
MONEY TAX-FREE PRIME TREASURY PLUS
MARKET MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $9,138,000 for the Government
Money Market Fund and $1,110,142,000
for the Treasury Plus Money Market
Fund) $8,594,711,132 $85,996,348 $2,921,676,643 $2,403,011,729
Cash 63,852 278,889 51,297 1,566,545
RECEIVABLES:
Interest 64,971,617 557,999 24,256,286 9,102,615
Organization expenses, net of
amortization 7,497 18,567 27,297 50,395
Prepaid expenses 872,546 11,419 233,566 126,289
TOTAL ASSETS 8,660,626,644 86,863,222 2,946,245,089 2,413,857,573
LIABILITIES
Payables:
Investment securities purchased 0 0 0 0
Distribution to shareholders 34,300,462 291,254 11,619,783 8,360,543
Due to distributor (Note 2) 1,561,929 25,140 299,000 264,738
Due to adviser (Note 2) 4,870,398 34,201 930,718 829,047
Other 20,940 121,580 392,326 215,143
TOTAL LIABILITIES 40,753,729 472,175 13,241,827 9,669,471
TOTAL NET ASSETS $8,619,872,915 $86,391,047 $2,933,003,262 $2,404,188,102
NET ASSETS CONSIST OF:
Paid-in capital $8,620,228,366 $86,401,527 $2,932,885,608 $2,404,110,855
Undistributed net realized gain (loss)
on investments (355,451) (10,480) 117,654 77,247
TOTAL NET ASSETS $8,619,872,915 $86,391,047 $2,933,003,262 $2,404,188,102
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A(1) $7,538,159,919 $59,645,422 $ 581,549,036 $ 581,265,946
Shares outstanding - Class A(1) 7,537,772,661 59,649,258 581,636,356 581,289,633
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A $ 599,970,348 $ 121,534,091
Shares outstanding - Administrative
Class N/A N/A 599,893,177 121,516,083
Net asset value and offering price per
share - Administrative Class N/A N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A N/A $ 641,108,691
Shares outstanding - Class E N/A N/A N/A 641,080,992
Net asset value and offering price per
share - Class E N/A N/A N/A $ 1.00
Net assets - Institutional Class N/A $26,745,625 $ 925,807,499 $ 489,466,553
Shares outstanding - Institutional Class N/A 26,752,269 925,843,328 489,584,505
Net asset value and offering price per
share - Institutional Class N/A $ 1.00 $ 1.00 $ 1.00
Net assets - Class S/Service Class $1,081,712,996 N/A $ 825,676,379 $ 570,812,821
Shares outstanding - Class S/Service
Class 1,081,664,684 N/A 825,760,726 570,815,495
Net asset value and offering price per
share - Class S/Service Class $ 1.00 N/A $ 1.00 $ 1.00
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
Money Market Funds ENDED SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA
TAX-FREE GOVERNMENT
MONEY MONEY
MARKET MARKET
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Interest $35,075,995 $1,920,802
TOTAL INVESTMENT INCOME 35,075,995 1,920,802
EXPENSES (NOTE 2)
Advisory fees 5,257,249 86,276
Administration fees 736,878 24,157
Custody fees 186,527 5,763
Shareholder servicing fees 3,158,048 86,276
Portfolio accounting fees 241,369 33,829
Transfer agency fees 1,052,683 34,510
Distribution fees 0 2,624
Organization costs 0 0
Legal and audit fees 53,862 14,117
Registration fees 50,137 9,026
Directors' fees 2,242 2,242
Shareholder reports 65,666 7,521
Other 26,636 4,010
TOTAL EXPENSES 10,831,297 310,351
Less:
Waived fees and reimbursed expenses (3,988,596) (51,832)
Net Expenses 6,842,701 258,519
NET INVESTMENT INCOME (LOSS) 28,233,294 1,662,283
Net realized gain (loss) on sale of
investments (132,473) 5,410
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $28,100,821 $1,667,693
- -----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 1998 (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TREASURY
TAX-FREE PRIME PLUS
MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET
FUND FUND FUND FUND
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $230,761,981 $1,907,885 $76,749,461 $60,034,265
TOTAL INVESTMENT INCOME 230,761,981 1,907,885 76,749,461 60,034,265
EXPENSES (NOTE 2)
Advisory fees 16,297,370 165,877 3,389,813 2,728,006
Administration fees 2,852,040 38,766 949,147 763,840
Custody fees 683,172 9,249 226,442 182,233
Shareholder servicing fees 11,964,101 79,001 2,005,965 2,202,259
Portfolio accounting fees 845,700 41,510 302,018 249,072
Transfer agency fees 4,090,838 36,356 771,257 832,218
Distribution fees 3,932,270 2,407 19,201 12,962
Organization costs 2,258 4,412 6,848 12,642
Legal and audit fees 109,154 17,862 54,863 69,044
Registration fees 206,291 33,090 159,436 70,189
Directors' fees 2,242 2,242 2,242 2,242
Shareholder reports 174,178 20,957 37,101 18,049
Other 61,674 8,643 43,189 22,875
TOTAL EXPENSES 41,221,288 460,372 7,967,522 7,165,631
Less:
Waived fees and reimbursed expenses (7,141,931) (167,183) (2,120,395) (1,661,924)
Net Expenses 34,079,357 293,189 5,847,127 5,503,707
NET INVESTMENT INCOME (LOSS) 196,682,624 1,614,696 70,902,334 54,530,558
Net realized gain (loss) on sale of
investments 156,717 209 52,414 44,455
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $196,839,341 $1,614,905 $70,954,748 $54,575,013
- --------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND
-----------------------------------
(UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 28,233,294 $ 46,259,216
Net realized gain (loss) on sale of
investments (132,473) (95,156)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 28,100,821 46,164,060
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (28,233,294) (46,259,216)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(3) 1,762,690,634 2,490,901,512
Reinvestment of dividends - Class A(3) 24,669,412 43,220,033
Cost of shares redeemed - Class A(3) (1,838,312,924) (1,799,455,338)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(3) (50,952,878) 734,666,207
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A
Proceeds from shares sold - Class
S/Service Class N/A N/A
Reinvestment of dividends - Class
S/Service Class N/A N/A
Cost of shares redeemed - Class
S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS (51,085,351) 734,571,051
NET ASSETS:
Beginning net assets 2,118,881,359 1,384,310,308
ENDING NET ASSETS $ 2,067,796,008 $ 2,118,881,359
- --------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $364,044,910 AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS CALIFORNIA TAX-FREE MONEY MARKET
FUND.
(2) THE INSTITUTIONAL CLASS CEASED OPERATIONS ON SEPTEMBER 29, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
------------------------------- MONEY MARKET FUND
(UNAUDITED) -----------------------------------
FOR THE SIX FOR THE (UNAUDITED)
MONTHS ENDED YEAR ENDED FOR THE SIX FOR THE
SEPT. 30, MARCH 31, MONTHS ENDED YEAR ENDED
1998 1998 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 1,662,283 $ 3,271,740 $ 196,682,624 $ 304,465,191
Net realized gain (loss) on sale of
investments 5,410 892 156,717 495,081
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,667,693 3,272,632 196,839,341 304,960,272
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,662,283) (3,271,740) (174,695,301) (267,569,450)
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A (188,647)(2)
CLASS S/SERVICE CLASS N/A N/A (21,987,323) (36,707,094)
From net realized gain on sale of
investments
CLASS A 0 (167) 0 0
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A 0(2)
CLASS S/SERVICE CLASS N/A N/A 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(3) 93,418,341 199,262,173 2,823,931,654 4,063,160,668
Reinvestment of dividends - Class A(3) 896,492 1,543,518 169,460,507 255,837,441
Cost of shares redeemed - Class A(3) (105,848,785) (184,162,738) (2,166,953,712) (2,247,997,951)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(3) (11,533,952) 16,642,953 826,438,449 2,071,000,158
Proceeds from shares sold -
Administrative Class N/A N/A N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A N/A N/A
Proceeds from shares sold - Class E N/A N/A N/A N/A
Reinvestment of dividends - Class E N/A N/A N/A N/A
Cost of shares redeemed - Class E N/A 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 N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A 2,301,111(2)
Reinvestment of dividends -
Institutional Class N/A N/A N/A 215,236(2)
Cost of shares redeemed -
Institutional Class N/A N/A N/A (11,839,183)(2)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A (9,322,836)(2)
Proceeds from shares sold - Class
S/Service Class N/A N/A 1,127,405,636 1,708,294,353
Reinvestment of dividends - Class
S/Service Class N/A N/A 21,395,167 35,725,155
Cost of shares redeemed - Class
S/Service Class N/A N/A (1,018,279,890) (1,500,695,653)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A 130,520,913 243,323,855
INCREASE (DECREASE) IN NET ASSETS (11,528,542) 16,643,678 957,116,079 2,305,496,258
NET ASSETS:
Beginning net assets 76,867,597 60,223,919 7,662,756,836 5,357,260,578
ENDING NET ASSETS $ 65,339,055 $ 76,867,597 $ 8,619,872,915 $ 7,662,756,836
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $364,044,910 AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS CALIFORNIA TAX-FREE MONEY MARKET
FUND.
(2) THE INSTITUTIONAL CLASS CEASED OPERATIONS ON SEPTEMBER 29, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET
FUND
-------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, MARCH 31,
1998 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 1,614,696 $ 2,217,909
Net realized gain (loss) on sale of
investments 209 (10,252)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,614,905 2,207,657
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (874,234) (1,076,631)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS (740,462) (1,141,278)(2)
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS 0 0(2)
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(3) 135,918,933 243,931,011
Reinvestment of dividends - Class A(3) 842,890 999,129
Cost of shares redeemed - Class A(3) (136,409,360) (220,887,156)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(3) 352,463 24,042,984
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class 240,620,313 436,296,534(2)
Reinvestment of dividends -
Institutional Class 129,209 226,125(2)
Cost of shares redeemed -
Institutional Class (268,306,279) (382,213,633)(2)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (27,556,757) 54,309,026(2)
Proceeds from shares sold - Class
S/Service Class N/A N/A
Reinvestment of dividends - Class
S/Service Class N/A N/A
Cost of shares redeemed - Class
S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS (27,204,085) 78,341,758
NET ASSETS:
Beginning net assets 113,595,132 35,253,374
ENDING NET ASSETS $ 86,391,047 $ 113,595,132
- ----------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
(4) "PROCEEDS FROM SHARES SOLD" INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(5) "PROCEEDS FROM SHARES SOLD" INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
----------------------------------- -----------------------------------
(UNAUDITED) FOR THE (UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31, MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (4) SEPT. 30, 1998 1998 (5)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 70,902,334 $ 89,057,989 $ 54,530,558 $ 92,254,980
Net realized gain (loss) on sale of
investments 52,414 205,613 44,455 104,070
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 70,954,748 89,263,602 54,575,013 92,359,050
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (14,832,711) (17,766,272) (10,965,795) (7,909,738)
ADMINISTRATIVE CLASS (15,992,577) (11,412,448)(2) (3,745,050) (2,844,289)(2)
CLASS E N/A N/A (16,092,371) (35,555,799)
INSTITUTIONAL CLASS (23,011,637) (30,624,015) (13,112,231) (25,427,944)
CLASS S/SERVICE CLASS (17,065,409) (29,255,254) (10,615,111) (20,517,210)
From net realized gain on sale of
investments
CLASS A 0 0 0 (1,806)
ADMINISTRATIVE CLASS 0 0(2) 0 0(2)
CLASS E N/A N/A 0 (30,443)
INSTITUTIONAL CLASS 0 0 0 (24,671)
CLASS S/SERVICE CLASS 0 0 0 (15,375)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(3) 2,215,555,629 2,095,338,042 1,081,309,546 1,005,876,144
Reinvestment of dividends - Class A(3) 4,622,094 3,165,358 2,161,851 1,522,843
Cost of shares redeemed - Class A(3) (2,230,957,143) (1,783,218,311) (883,807,250) (692,285,990)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(3) (10,779,420) 315,285,089 199,664,147 315,112,997
Proceeds from shares sold -
Administrative Class 890,473,490 1,388,222,454(2) 109,208,132 267,085,382(2)
Reinvestment of dividends -
Administrative Class 15,049,612 9,420,477(2) 3,809,439 2,351,192(2)
Cost of shares redeemed -
Administrative Class (906,539,934) (796,735,143)(2) (168,429,144) (92,509,640)(2)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS (1,016,832) 600,907,788(2) (55,411,573) 176,926,934(2)
Proceeds from shares sold - Class E N/A N/A 624,324,787 1,732,685,997
Reinvestment of dividends - Class E N/A N/A 0 0
Cost of shares redeemed - Class E N/A N/A (698,787,438) (1,837,801,845)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A (74,462,651) (105,115,848)
Proceeds from shares sold -
Institutional Class 2,539,311,384 2,512,557,623 1,144,914,382 1,810,109,209
Reinvestment of dividends -
Institutional Class 8,205,210 8,027,719 2,795,464 3,525,822
Cost of shares redeemed -
Institutional Class (2,424,236,834) (2,256,346,296) (1,159,747,327) (1,761,790,304)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 123,279,760 264,239,046 (12,037,481) 51,844,727
Proceeds from shares sold - Class
S/Service Class 1,239,666,820 2,169,506,716 2,021,662,608 2,944,938,309
Reinvestment of dividends - Class
S/Service Class 7,773,160 1,912,601 2,235,917 1,738,759
Cost of shares redeemed - Class
S/Service Class (1,075,467,669) (2,143,905,641) (1,820,202,498) (3,062,973,983)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS 171,972,311 27,513,676 203,696,027 (116,296,915)
INCREASE (DECREASE) IN NET ASSETS 283,508,233 1,208,151,212 261,492,924 322,503,670
NET ASSETS:
Beginning net assets 2,649,495,029 1,441,343,817 2,142,695,178 1,820,191,508
ENDING NET ASSETS $ 2,933,003,262 $ 2,649,495,029 $ 2,404,188,102 $ 2,142,695,178
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
(4) "PROCEEDS FROM SHARES SOLD" INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(5) "PROCEEDS FROM SHARES SOLD" INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND
CLASS A
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1998 1998 1997 (1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.03 0.01
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.01 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.03) (0.01)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.03) (0.01)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 1.35% 2.91% 1.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $2,067,796 $2,118,881 $1,384,310
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets 2.68% 2.85% 2.72%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.03% 1.05% 1.03%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 2.30% 2.45% 2.34%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND (CONT.) GOVERNMENT MONEY MARKET FUND (2)
CLASS A (CONT.) CLASS A
---------------------------------- ----------------------------------
NINE (UNAUDITED)
MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED ENDED
SEPT. 30, DEC. 31, DEC. 31, SEPT. 30, MARCH 31, MARCH 31,
1996 (3) 1995 1994 1998 1998 1997 (1)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.03 0.02 0.02 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.03 0.02 0.02 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.03) (0.02) (0.02) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.02) (0.02) (0.05) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.04% 3.23% 2.28% 2.44% 4.93% 2.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $1,161,431 $1,031,004 $869,745 $65,339 $76,868 $60,224
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.62% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets 2.69% 3.18% 2.26% 4.82% 4.83% 4.62%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.02% 1.01% 1.08% 0.90% 1.00% 1.00%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.32% 2.82% 1.80% 4.67% 4.58% 4.37%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND (2)
(CONT.)
CLASS A (CONT.)
----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPT. 30, SEPT. 30, SEPT. 30,
1996 1995 1994
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.03
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.03)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.03)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.75% 5.22% 3.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $65,036 $109,368 $194,276
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.77% 0.79% 0.77%
Ratio of net investment income to average net assets 4.74% 5.08% 3.07%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.80% 0.81% 0.79%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.71% 5.06% 3.05%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS A
----------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS SIX MONTHS MONTHS
ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1998 1998 1997 (1) 1996 (3) 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.05 0.02 0.03 0.05 0.04
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.02 0.03 0.05 0.04
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.02) (0.03) (0.05) (0.04)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.02) (0.03) (0.05) (0.04)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.48% 5.07% 2.36% 3.55% 5.34% 3.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $7,538,160 $6,711,584 $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% 0.75% 0.75% 0.69%
Ratio of net investment
income to average net
assets 4.91% 4.95% 4.71% 4.66% 5.13% 4.12%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.92% 0.93% 0.90% 0.88% 0.83% 0.89%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.74% 4.77% 4.56% 4.53% 5.05% 3.92%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS S
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1998 1998 1997 (1)
<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 0.04 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.04 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.04) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.04) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.14% 4.37% 2.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,081,713 $951,172 $707,781
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.42% 1.42% 1.43%
Ratio of net investment income to average net assets 4.24% 4.28% 4.02%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.63% 1.62% 1.56%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.03% 4.08% 3.89%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
(CONT.) NATIONAL TAX-FREE MONEY MARKET FUND
CLASS S (CONT.) CLASS A
---------------------- ----------------------------------------------
NINE (UNAUDITED)
MONTHS PERIOD SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED ENDED ENDED
SEPT. 30, DEC. 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1996 (3) 1995 (2) 1998 1998 1997 (1) 1996 (4)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.03 0.01 0.03 0.01 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.03 0.01 0.03 0.01 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.03) (0.01) (0.03) (0.01) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.03) (0.01) (0.03) (0.01) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 3.03% 2.73% 1.39% 2.93% 1.36% 1.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $699,231 $618,899 $59,645 $59,293 $35,253 $4,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.42% 1.43% 0.70% 0.70%(5) 0.64%(5) 0.62%(5)
Ratio of net investment
income to average net
assets 3.98% 4.40% 2.75% 2.87%(5) 2.68%(5) 2.71%(5)
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.55% 1.53% 0.99% 1.13%(5) 1.58%(5) 3.56%(5)
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 3.85% 4.30% 2.46% 2.44%(5) 1.74%(5) (0.23)%(5)
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE
MONEY MARKET FUND
(CONT.)
INSTITUTIONAL CLASS
----------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
SEPT. 30, MARCH 31,
1998 1998 (2)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.01
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.01)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.01)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 1.59% 0.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $26,746 $54,302
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.30% 0.30%
Ratio of net investment income to average net assets 3.13% 3.05%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.61% 0.52%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 2.82% 2.83%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3)
CLASS A ADMINISTRATIVE CLASS
---------------------------------------------- ----------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED YEAR ENDED ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31,
1998 1998 1997 (1) 1996 (4) 1998 1998 (2)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.05 0.02 0.05 0.03 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.02 0.05 0.03 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.02) (0.05) (0.03) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.02) (0.05) (0.03) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.52% 5.24% 2.49% 5.09% 2.66% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $581,549 $592,317 $277,044 $264,900 $599,970 $600,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.68% 0.61% 0.55% 0.55% 0.42% 0.40%
Ratio of net investment
income to average net
assets 4.97% 5.11% 4.95% 5.06% 5.24% 5.34%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.78% 0.83% 0.75% 0.68% 0.56% 0.55%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.87% 4.89% 4.75% 4.93% 5.10% 5.19%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3)
(CONT.)
INSTITUTIONAL CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1998 1998 1997 (1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.05 0.03
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.05) (0.03)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.03)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.74% 5.58% 2.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $925,807 $802,511 $538,195
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.25% 0.25% 0.25%
Ratio of net investment income to average net assets 5.41% 5.46% 5.25%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.40% 0.41% 0.38%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 5.26% 5.30% 5.12%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3) (CONT.)
INSTITUTIONAL CLASS SERVICE CLASS
(CONT.) ----------------------------------------------
---------------------- (UNAUDITED)
PERIOD SIX MONTHS SIX MONTHS
YEAR ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1996 1995 (2) 1998 1998 1997 (1) 1996
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.01 0.03 0.05 0.03 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.01 0.03 0.05 0.03 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.01) (0.03) (0.05) (0.03) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.01) (0.03) (0.05) (0.03) (0.05)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.39% 5.65%** 2.64% 5.37% 2.54% 5.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $423,959 $30,606 $825,676 $653,693 $626,105 $740,760
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.26% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment
income to average net
assets 5.33% 5.67% 5.21% 5.24% 5.04% 5.14%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.60% 0.69% 0.68% 0.65% 0.60% 0.62%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.98% 5.24% 4.98% 5.04% 4.89% 4.97%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
The accompanying notes are an integral part of these financial statements.
59
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET
FUND (3) (CONT.)
SERVICE CLASS (CONT.)
----------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1995 1994 (4)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.02
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.02)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.60% 3.71%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $614,101 $565,305
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.41% 0.41%
Ratio of net investment income to average net assets 5.47% 3.67%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.68% 0.89%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 5.20% 3.19%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2)
CLASS A ADMINISTRATIVE CLASS
---------------------------------------------- ----------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED YEAR ENDED ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31,
1998 1998 1997 (1) 1996 (5) 1998 1998 (6)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.05 0.02 0.05 0.03 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.02 0.05 0.03 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.02) (0.05) (0.03) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.02) (0.05) (0.03) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.45% 5.06% 2.42% 4.95% 2.57% 1.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $581,266 $381,594 $66,486 $53,706 $121,534 $176,942
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.62% 0.55% 0.55% 0.41% 0.40%
Ratio of net investment
income to average net
assets 4.85% 4.93% 4.81% 4.96% 5.08% 5.17%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.78% 0.85% 0.75% 0.67% 0.58% 0.56%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.72% 4.70% 4.61% 4.84% 4.91% 5.01%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) 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 SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND(2)
(CONT.)
CLASS E
----------------------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1998 1998 1997 (3)
<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 0.05 0.00
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.05 0.00
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.05) 0.00
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.45% 4.99% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $641,109 $715,554 $820,657
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets 4.85% 4.87% 4.86%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.77% 0.84% 0.88%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.73% 4.68% 4.63%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2) (CONT.)
INSTITUTIONAL CLASS
----------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1998 1998 1997 (1) 1996 1995 (4)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.05 0.03 0.05 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.05) (0.03) (0.05) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.03) (0.05) (0.01)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.66% 5.41% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $489,467 $501,494 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 5.25% 5.28% 5.11% 5.21% 5.42%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.40% 0.40% 0.39% 0.59% 0.69%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 5.10% 5.13% 4.97% 4.87% 4.99%
- ----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (2)
(CONT.)
SERVICE CLASS
----------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
SEPT. 30, MARCH 31,
1998 1998
<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 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) 2.56% 5.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $570,813 $367,111
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45%
Ratio of net investment income to average net assets 5.05% 5.07%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.68% 0.65%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 4.82% 4.87%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2) (CONT.)
SERVICE CLASS (CONT.)
----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30,
1997 (1) 1996 1995 1994 (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) 0.02 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.02)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.47% 5.03% 5.42% 3.75%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $483,401 $1,340,325 $1,001,707 $690,630
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.45% 0.42% 0.43%
Ratio of net investment
income to average net
assets 4.91% 4.98% 5.32% 3.72%
- ----------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.61% 0.60% 0.66% 0.90%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.75% 4.83% 5.08% 3.25%
- ----------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and is currently comprised of thirty-three separate series. These
financial statements represent the California Tax-Free Money Market, Government
Money Market, Money Market, National Tax-Free Money Market, Prime Money Market
and Treasury Plus Money Market Funds (each, a "Fund", collectively, the
"Funds"), each, with the exception of the California Tax-Free Money Market Fund,
a diversified series of the Company. The California Tax-Free Money Market Fund
is a non-diversified series of the Company.
Prior to August 1, 1998 the California Tax-Free Money Market, Government Money
Market, Money Market, National Tax-Free Money Market, Prime Money Market and
Treasury Plus Money Market Funds were known as the "California Tax-Free Money
Market Mutual", "Government Money Market Mutual", "Money Market Mutual",
"National Tax-Free Money Market Mutual", "Prime Money Market Mutual" and
"Treasury Money Market Mutual" Funds, respectively.
At a meeting held on July 23, 1997, the Boards of Directors of Overland
Express Funds, Inc. ("Overland") and the Company approved a consolidation
agreement providing for the transfer of the assets and liabilities of each
Overland fund to a corresponding fund of the Company in exchange for shares of
designated classes of the corresponding Stagecoach fund (the "Consolidation").
The Consolidation was subsequently approved by Overland shareholders. As a
result of this Consolidation, effective at the close of business on December 12,
1997, the Stagecoach California Tax-Free Money Market, Stagecoach National
Tax-Free Money Market, Stagecoach Prime Money Market and Stagecoach Treasury
Plus Money Market Funds acquired all of the assets and assumed all of the
liabilities of the Overland California Tax-Free Money Market, Overland National
Tax-Free Institutional Money Market, Overland Money Market and Overland U.S.
Treasury Money Market Funds, respectively. All acquisitions were accomplished in
separate tax-free exchanges for shares of the respective Fund.
At the time of the Consolidation, the National Tax-Free Money Market Fund,
structured as a "feeder" Fund in a "master-feeder" structure, was restructured
to invest directly in a portfolio of securities, rather than to invest in
portfolio securities through a "master" portfolio (the "Master Portfolio"). The
Master
66
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
Portfolio distributed all of its assets and liabilities in-kind to its
interestholders and wound up its affairs (the "Dissolution"). The Dissolution
occurred at the close of business on December 12, 1997.
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 Government Money Market, Prime Money
Market and Treasury Plus Money Market Funds were established to acquire all of
the assets and assume all of the liabilities of the Pacifica Government Money
Market, Prime Money Market and Treasury Money Market Funds, respectively
(collectively, the "Predecessor Funds"). Additionally, the Stagecoach Money
Market 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 Government Money Market and Treasury Plus
Money Market Funds for periods prior to September 6, 1996 refers to the
Predecessor Funds.
The Money Market Fund offers Class A and Class S shares. The Prime Money
Market and Treasury Plus Money Market Funds offer Class A, Administrative Class,
Institutional Class, and Service Class shares. The Treasury Plus Money Market
Fund also offers Class E shares. The National Tax-Free Money Market Fund offers
Class A and Institutional Class shares. The California Tax-Free Money Market and
Government Money Market Funds offer a single class of shares. The separate
classes of shares differ principally in the applicable sales charges (if any),
distribution fees, shareholder servicing fees and transfer agency fees.
Shareholders of each class also bear certain expenses that pertain to that
particular class. All shareholders bear the common expenses of the Fund and earn
income from the portfolio pro rata based on the average daily net assets of each
class, without distinction between share classes. Dividends are determined
separately for each class based on income and expenses allocable to each class.
Realized gains are allocated to each class pro rata based on the 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 realized gain and loss allocations
and from differences in separate class expenses, including distribution,
shareholder servicing and transfer agency fees.
67
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The following significant accounting policies are consistently followed by the
Company in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Funds invest only in securities with remaining maturities not exceeding
397 days (thirteen months). Certain floating- and variable-rate instruments in
the portfolios may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer at
par value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a constant
net asset value of $1.00 per share, although there is no assurance that they
will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered. Bond discounts are accreted and premiums are
amortized under provisions of the Internal Revenue Code of 1986, as amended (the
"Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in 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 agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a
68
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
tri-party agreement. It is the custodian's responsibility to value collateral
daily and to take action to obtain additional collateral as necessary to
maintain market value equal to or greater than the resale price. The repurchase
agreements held by the Funds are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Any distributions to shareholders from net
realized capital gains are declared and distributed at least annually.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at September 30, 1998. The
following Funds had net capital loss carryforwards at September 30, 1998:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARDS
- ---------------------------------------------------------------------------
<S> <C> <C>
California Tax-Free Money Market Fund 2002 $ 92,680
2003 31,569
2005 144,877
2006 33,505
Money Market Fund 2003 355,450
National Tax-Free Money Market Fund 2003 6,351
2004 437
2006 3,692
</TABLE>
Any net capital loss carryforwards from Pacifica and Overland are included in
the Funds' carryforwards as shown above. The Company's Board of Directors
intends to offset net capital gains with each capital loss carryforward, and no
capital gain distribution shall be made until each such carryforward has been
fully utilized or expires.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income
69
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
tax purposes, the fiscal year in which amounts are distributed may differ from
the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and with
the various states are amortized on a straight-line basis over 60 months from
the date each Fund commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into separate advisory contracts on behalf of the
Funds with WFB. Pursuant to the contracts, WFB has agreed to provide the Funds
with daily portfolio management. Under the contracts with the Funds, WFB is
entitled to be paid a monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY
FUND NET ASSETS
- -------------------------------------------------------------------------
<S> <C>
California Tax-Free Money Market Fund 0.50
Government Money Market Fund 0.25
Money Market Fund 0.40
National Tax-Free Money Market Fund 0.30
Prime Money Market Fund 0.25
Treasury Plus Money Market Fund 0.25
</TABLE>
On August 1, 1998, Wells Capital Management Incorporated ("WCM"), a
wholly-owned subsidiary of WFB, began acting as investment sub-advisor to the
Funds. WCM is entitled to receive from WFB, as compensation for its sub-advisory
services to the Funds, a monthly fee at the annual rate of 0.05% of the Funds'
average daily net assets up to $960 million and 0.04% of the Funds' average
daily net assets in excess of $960 million. WCM's minimum annual fee is $120,000
for each Fund. This minimum annual fee does not increase the advisory fees paid
by the Funds to WFB.
70
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
The Company has entered into contracts on behalf of each Fund with WFB,
whereby WFB is responsible for providing custody and portfolio accounting
services for the Funds. Pursuant to the contracts, WFB is entitled to certain
transaction charges plus a monthly fee for custody services at an annual rate of
0.0167% of the average daily net assets of each Fund. For portfolio accounting
services, WFB is entitled to a monthly base fee from each Fund of $2,000 plus an
annual fee of 0.07% of the first $50 million of each Fund's average daily net
assets, 0.045% of the next $50 million, and 0.02% of each Fund's average daily
net assets in excess of $100 million.
The Company has entered into a contract on behalf of the Funds with WFB,
whereby WFB provides transfer agency services for the Funds. Under the transfer
agency contract, WFB is entitled to receive transfer agency fees at the
following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY NET ASSETS
-------------------------------------------------------
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A* CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
California Tax-Free Money
Market Fund 0.10 N/A N/A N/A N/A
Government Money Market
Fund 0.10 N/A N/A N/A N/A
Money Market Fund 0.10 N/A N/A N/A 0.10
National Tax-Free Money
Market Fund 0.10 N/A N/A 0.02 N/A
Prime Money Market Fund 0.10 0.02 N/A 0.02 0.10
Treasury Plus Money
Market Fund 0.10 0.02 0.10 0.02 0.10
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The transfer agency fees paid on behalf of the Funds for the six months ended
September 30, 1998 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $3,556,488 N/A N/A N/A $ 534,350
National Tax-Free Money
Market Fund 31,600 N/A N/A $ 4,756 N/A
Prime Money Market Fund 298,018 $ 61,058 N/A 85,109 327,072
Treasury Plus Money
Market Fund 224,848 14,755 $ 331,766 49,960 210,889
</TABLE>
71
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
Transfer agency fees for the California Tax-Free Money Market and Government
Money Market Funds for the six months ended September 30, 1998, are disclosed in
the Statement of Operations.
The Company has entered into contracts on behalf of the Funds with WFB,
whereby WFB has agreed to provide shareholder services for the Funds. Pursuant
to the contracts, WFB is entitled to receive shareholder servicing fees at the
following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY NET ASSETS
----------------------------------------------
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A* CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Tax-Free Money
Market Fund 0.30 N/A N/A N/A
Government Money Market Fund 0.25 N/A N/A N/A
Money Market Fund 0.30 N/A N/A 0.25
National Tax-Free Money Market
Fund 0.25 N/A N/A N/A
Prime Money Market Fund 0.30 0.15 N/A 0.20
Treasury Plus Money Market Fund 0.30 0.15 0.30 0.20
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The shareholder servicing fees paid on behalf of the Funds for the six months
ended September 30, 1998 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market Fund $10,669,468 N/A N/A $1,294,633
Prime Money Market Fund 894,055 $ 457,766 N/A 654,144
Treasury Plus Money Market Fund 674,545 110,636 $ 995,300 421,778
</TABLE>
Shareholder servicing fees for the California Tax-Free Money Market,
Government Money Market and National Tax-Free Money Market Funds for the six
months ended September 30, 1998 are disclosed in the Statement of Operations.
The Company has entered into administration agreements on behalf of the Funds
whereby WFB as administrator and Stephens Inc. ("Stephens") as co-administrator
provide each Fund with administration services. For these services, WFB and
Stephens are entitled to receive monthly fees at the annual rates of 0.03% and
0.04%, respectively, of each Fund's average daily net assets.
The Company has adopted separate Distribution Plans for Class A shares of the
Funds, Class E shares of the Treasury Plus Money Market Fund and Class S shares
of the Money Market Fund pursuant to Rule 12b-1 under the 1940 Act
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
(each, a "Plan"). The Plans for the California Tax-Free Money Market Fund and
the Class A shares of the Money Market Fund provide that such Funds may defray
all or part of the cost of preparing, printing and distributing prospectuses and
other promotional materials by paying for costs incurred on an annual basis of
up to 0.05% of the average daily net assets attributable to such shares. These
Plans for the Class A shares provide only for reimbursement of actual expenses.
The Plans for the Class A shares of the Government Money Market, National
Tax-Free Money Market, Prime Money Market and Treasury Plus Money Market Funds
provide that such Funds may pay to Stephens, as compensation for
distribution-related services or as reimbursement for distribution-related
expenses, up to 0.05% of the average daily net assets attributable to such
shares.
Under the Plan for Class S shares of the Money Market Fund, the Fund may pay
to Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, a monthly fee at an annual rate
of 0.75% of the average daily net assets attributable to its Class S shares.
Under the Plan for Class E shares of the Treasury Plus Money Market Fund, the
Fund may pay to Stephens, as compensation for distribution-related services or
as reimbursement for distribution-related expenses, a monthly fee at an annual
rate of up to 0.10% of the average daily net assets attributable to its Class E
shares.
Each Fund may participate in joint distribution activities with other Funds,
in which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
Distribution fees paid on behalf of the Funds for the six months ended
September 30, 1998 were as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS E CLASS S
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Money Market Fund $ 48,371 N/A $ 3,883,899
Treasury Plus Money Market Fund 12,962 $0 N/A
</TABLE>
Distribution fees for the California Tax-Free Money Market, Government Money
Market, National Tax-Free Money Market and Prime Money Market Funds for the six
months ended September 30, 1998 are disclosed in the Statement of Operations.
73
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The registration fees paid on behalf of the Funds for the six months ended
September 30, 1998 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $ 146,171 N/A N/A N/A $ 60,120
National Tax-Free Money
Market Fund 20,055 N/A N/A $ 13,035 N/A
Prime Money Market Fund 29,079 $ 60,165 N/A 40,110 30,082
Treasury Plus Money
Market Fund 10,027 30,081 $ 10,027 10,027 10,027
</TABLE>
Registration fees for the California Tax-Free Money Market and Government
Money Market Funds for the six months ended September 30, 1998 are disclosed in
the Statement of Operations.
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the period ended September 30, 1998 was waived by WFB. Waived
fees and reimbursed expenses continue at the discretion of WFB and Stephens.
Certain officers and one director of the Company are also officers of
Stephens. As of September 30, 1998, Stephens owned 108,813 shares of the
California Tax-Free Money Market Fund, 26 shares of the Government Money Market
Fund, 12,673 shares of the Money Market Fund, 260 shares of the National
Tax-Free Money Market Fund, 1,538,854 shares of the Prime Money Market Fund and
140,046 shares of the Treasury Plus Money Market Fund.
3. CAPITAL SHARE TRANSACTIONS
As of September 30, 1998, there were over 242 billion shares of $0.001 par
value capital stock authorized by the Company. As of September 30, 1998, each
Fund was authorized to issue 10 billion shares of $0.001 par value capital stock
for each class of shares.
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY
MARKET FUND
------------------------------
(UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (1)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,762,690,634 2,490,900,820
Shares issued in reinvestment of dividends 24,669,412 43,220,033
Shares redeemed -- Class A (1,838,312,924) (1,799,455,338)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (50,952,878) 734,665,515
</TABLE>
(1) "SHARES SOLD" INCLUDES 364,044,218 AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND CALIFORNIA TAX-FREE MONEY MARKET FUND.
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, 1998 MARCH 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 93,418,342 199,262,173
Shares issued in reinvestment of dividends 896,492 1,543,518
Shares redeemed -- Class A (105,848,785) (184,162,738)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (11,533,951) 16,642,953
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, 1998 MARCH 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 2,823,931,652 4,063,073,840
Shares issued in reinvestment of dividends --
Class A 169,460,507 255,837,441
Shares redeemed -- Class A (2,166,953,712) (2,247,997,951)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 826,438,447 2,070,913,330
Shares sold -- Class S 1,127,405,638 1,708,294,353
Shares issued in reinvestment of dividends --
Class S 21,395,167 35,725,154
Shares redeemed -- Class S (1,018,279,890) (1,500,695,653)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS S 130,520,915 243,323,854
</TABLE>
75
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET
FUND
------------------------------
(UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 135,918,933 243,931,477
Shares issued in reinvestment of dividends --
Class A 842,890 999,129
Shares redeemed -- Class A (136,409,360) (220,887,156)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 352,463 24,043,450
Shares sold -- Institutional Class(1) 240,620,313 436,296,534
Shares issued in reinvestment of dividends --
Institutional Class(1) 129,209 226,125
Shares redeemed -- Institutional Class(1) (268,306,279) (382,213,633)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS(1) (27,556,757) 54,309,026
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 65,805,624 FOR INSTITUTIONAL CLASS SHARES AS A RESULT
OF THE CONSOLIDATION OF THE OVERLAND NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND.
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------
(UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 2,215,555,628 2,095,335,772
Shares issued in reinvestment of dividends --
Class A 4,622,094 3,165,358
Shares redeemed -- Class A (2,230,957,143) (1,783,218,311)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (10,779,421) 315,282,819
Shares sold -- Administrative Class(1) 890,473,489 1,388,224,676
Shares issued in reinvestment of dividends --
Administrative Class(1) 15,049,612 9,420,477
Shares redeemed -- Administrative Class(1) (906,539,934) (796,735,143)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (1,016,833) 600,910,010
Shares sold -- Institutional Class 2,539,311,384 2,512,557,618
Shares issued in reinvestment of dividends --
Institutional Class 8,205,210 8,027,719
Shares redeemed -- Institutional Class (2,424,236,834) (2,256,346,296)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS 123,279,760 264,239,041
Shares sold -- Service Class 1,239,666,821 2,169,506,710
Shares issued in reinvestment of dividends --
Service Class 7,773,160 1,912,601
Shares redeemed -- Service Class (1,075,467,669) (2,143,905,641)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 171,972,312 27,513,670
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 524,867,072 FOR CLASS A SHARES AND 878,274,456 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
MONEY MARKET FUND.
77
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET
FUND
------------------------------
(UNAUDITED) FOR THE
FOR THE SIX YEAR ENDED
MONTHS ENDED MARCH 31,
SEPT. 30, 1998 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,081,309,546 1,005,879,507
Shares issued in reinvestment of dividends --
Class A 2,161,851 1,522,843
Shares redeemed -- Class A (883,807,250) (692,284,609)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 199,664,147 315,117,741
Shares sold -- Administrative Class(1) 109,208,132 267,085,382
Shares issued in reinvestment of dividends --
Administrative Class(1) 3,809,439 2,351,192
Shares redeemed -- Administrative Class(1) (168,429,144) (92,508,918)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (55,411,573) 176,927,656
Shares sold -- Class E 624,324,787 1,732,685,998
Shares issued in reinvestment of dividends --
Class E 0 0
Shares redeemed -- Class E (698,787,438) (1,837,799,382)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS E (74,462,651) (105,113,384)
Shares sold -- Institutional Class 1,144,914,381 1,810,109,209
Shares issued in reinvestment of dividends --
Institutional Class 2,795,464 3,525,822
Shares redeemed -- Institutional Class (1,159,747,327) (1,761,788,362)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (12,037,482) 51,846,669
Shares sold -- Service Class 2,021,662,608 2,944,938,308
Shares issued in reinvestment of dividends --
Service Class 2,235,917 1,738,759
Shares redeemed -- Service Class (1,820,202,498) (3,062,972,733)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 203,696,027 (116,295,666)
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 354,332,437 FOR CLASS A SHARES AND 206,192,634 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
U.S. TREASURY MONEY MARKET FUND.
78
<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
FRN -- Floating Rate Notes
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
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MTN -- Medium Term Note
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>
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services and/or certain other services for the Stagecoach Funds. Wells
Capital Management Incorporated ("WCM") provides investment sub-advisory
services for certain Stagecoach Funds. The Funds are distributed by STEPHENS
INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and WCM are 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
1-800-222-8222. Read the prospectus carefully before you invest or send money.
STAGECOACH FUNDS-Registered
Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
SC MMA SAR (11/98)
