<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Semi-Annual Report
MONEY MARKET
Funds
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
- ------------------------------------------------------------------------
LETTER TO SHAREHOLDERS................................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
National Tax-Free Money Market Fund................................4
Prime Money Market Fund............................................7
Treasury Plus Money Market Fund....................................7
PORTFOLIOS OF INVESTMENTS
National Tax-Free Money Market Fund...............................11
Prime Money Market Fund...........................................17
Treasury Plus Money Market Fund...................................21
STAGECOACH FUNDS
Statement of Assets and Liabilities...............................24
Statement of Operations...........................................25
Statements of Changes in Net Assets...............................26
Financial Highlights..............................................28
Notes to Financial Statements.....................................39
LIST OF ABBREVIATIONS................................................50
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
i
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
ii
<PAGE>
LETTER TO SHAREHOLDERS Money Market Funds
- ------------------------------------------------------------------------
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
<PAGE>
Money Market Funds LETTER TO SHAREHOLDERS
- ------------------------------------------------------------------------
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,
[SIGNATURE]
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
[SIGNATURE]
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
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
3
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
NATIONAL TAX-FREE MONEY MARKET FUND - INSTITUTIONAL CLASS
The Stagecoach National Tax-Free Money Market Fund (the "Fund") seeks to
provide investors with a high level of income exempt from federal income tax,
while preserving capital and liquidity.
The Fund is 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 return for the six-month period ended September 30, 1998
for the Fund was 1.59%. The seven-day current yield for the Stagecoach National
Tax-Free Money Market Fund as of September 30, 1998 was 3.49%.
This tax-free yield is generally higher than the after-tax return on a
comparable taxable investment. For example, an investor in the maximum federal
income tax bracket of 39.60% would need to earn 5.78% from a taxable investment
to match a 3.49% tax-free yield. 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 the 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.
4
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
- ------------------------------------------------------------------------
Based on international economic problems, particularly in the Asian markets,
the importance of the Fund's credit quality component increased. As a result, we
sold the Fund's 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.
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 the
Fund and will increase our fixed-rate exposure if we feel security prices are
attractive.
Overall, we feel the Fund is positioned well given the international economic
turmoil and low interest rate environment. As a result, we intend to maintain
the Fund at its 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 Fund is 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 Fund's distributions may be subject to federal, state, and/or
local taxes or the alternative minimum tax (AMT).
The Fund's 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 Fund's 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 Fund will meet this objective.
5
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
6
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
- ------------------------------------------------------------------------
PRIME MONEY MARKET FUND - INSTITUTIONAL CLASS
TREASURY PLUS MONEY MARKET FUND - INSTITUTIONAL CLASS
TWO STAGECOACH MONEY MARKET FUNDS (EACH, A "FUND", COLLECTIVELY, THE "FUNDS")
WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
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.
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>
PRIME MONEY MARKET FUND 2.74%
TREASURY PLUS MONEY MARKET FUND 2.66%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of
September 30, 1998 were the following:
- --------------------------------------------------
<TABLE>
<S> <C>
PRIME MONEY MARKET FUND 5.34%
TREASURY PLUS MONEY MARKET FUND 4.89%
</TABLE>
7
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
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 later 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-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 the Funds, we did not add to
our foreign positions during the period and do not hold any positions that have
had their credit quality 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
8
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
- ------------------------------------------------------------------------
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 decrease rates more than will actually occur.
We feel 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.
9
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
10
<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 - 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>
11
<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)
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>
12
<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)
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>
13
<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)
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>
14
<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)
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.
15
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
16
<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>
17
<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>
18
<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>
19
<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.
20
<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>
21
<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.
22
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
23
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Money Market Funds SEPTEMBER 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL
TAX-FREE PRIME TREASURY PLUS
MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $1,110,142,000 for the Treasury
Plus Money Market Fund) $85,996,348 $2,921,676,643 $2,403,011,729
Cash 278,889 51,297 1,566,545
RECEIVABLES:
Interest 557,999 24,256,286 9,102,615
Organization expenses, net of
amortization 18,567 27,297 50,395
Prepaid expenses 11,419 233,566 126,289
TOTAL ASSETS 86,863,222 2,946,245,089 2,413,857,573
LIABILITIES
Payables:
Distribution to shareholders 291,254 11,619,783 8,360,543
Due to distributor (Note 2) 25,140 299,000 264,738
Due to adviser (Note 2) 34,201 930,718 829,047
Other 121,580 392,326 215,143
TOTAL LIABILITIES 472,175 13,241,827 9,669,471
TOTAL NET ASSETS $86,391,047 $2,933,003,262 $2,404,188,102
NET ASSETS CONSIST OF:
Paid-in capital $86,401,527 $2,932,885,608 $2,404,110,855
Undistributed net realized gain (loss)
on investments (10,480) 117,654 77,247
TOTAL NET ASSETS $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 $59,645,422 $ 581,549,036 $ 581,265,946
Shares outstanding - Class A 59,649,258 581,636,356 581,289,633
Net asset value and offering price per
share - Class A $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A $ 599,970,348 $ 121,534,091
Shares outstanding - Administrative
Class N/A 599,893,177 121,516,083
Net asset value and offering price per
share - Administrative Class N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A $ 641,108,691
Shares outstanding - Class E N/A N/A 641,080,992
Net asset value and offering price per
share - Class E N/A N/A $ 1.00
Net assets - Institutional Class $26,745,625 $ 925,807,499 $ 489,466,553
Shares outstanding - Institutional Class 26,752,269 925,843,328 489,584,505
Net asset value and offering price per
share - Institutional Class $ 1.00 $ 1.00 $ 1.00
Net assets - Service Class N/A $ 825,676,379 $ 570,812,821
Shares outstanding - Service Class N/A 825,760,726 570,815,495
Net asset value and offering price per
share - Service Class N/A $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<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 MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 1,907,885 $ 76,749,461 $ 60,034,265
TOTAL INVESTMENT INCOME 1,907,885 76,749,461 60,034,265
EXPENSES (NOTE 2)
Advisory fees 165,877 3,389,813 2,728,006
Administration fees 38,766 949,147 763,840
Custody fees 9,249 226,442 182,233
Shareholder servicing fees 79,001 2,005,965 2,202,259
Portfolio accounting fees 41,510 302,018 249,072
Transfer agency fees 36,356 771,257 832,218
Distribution fees 2,407 19,201 12,962
Organization costs 4,412 6,848 12,642
Legal and audit fees 17,862 54,863 69,044
Registration fees 33,090 159,436 70,189
Directors' fees 2,242 2,242 2,242
Shareholder reports 20,957 37,101 18,049
Other 8,643 43,189 22,875
TOTAL EXPENSES 460,372 7,967,522 7,165,631
Less:
Waived fees and reimbursed expenses (167,183) (2,120,395) (1,661,924)
Net Expenses 293,189 5,847,127 5,503,707
NET INVESTMENT INCOME (LOSS) 1,614,696 70,902,334 54,530,558
Net realized gain (loss) on sale of
investments 209 52,414 44,455
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,614,905 $ 70,954,748 $ 54,575,013
- --------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL 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) $ 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)(4)
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(4)
SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 135,918,933 243,931,011
Reinvestment of dividends - Class A 842,890 999,129
Cost of shares redeemed - Class A (136,409,360) (220,887,156)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 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(4)
Reinvestment of dividends -
Institutional Class 129,209 226,125(4)
Cost of shares redeemed -
Institutional Class (268,306,279) (382,213,633)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (27,556,757) 54,309,026(4)
Proceeds from shares sold - Service
Class N/A N/A
Reinvestment of dividends - Service
Class N/A N/A
Cost of shares redeemed - Service
Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - 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) "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.
(3) "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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
26
<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 (2) SEPT. 30, 1998 1998 (3)
<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)(4) (3,745,050) (2,844,289)(4)
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)
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(4) 0 0(4)
CLASS E N/A N/A 0 (30,443)
INSTITUTIONAL CLASS 0 0 0 (24,671)
SERVICE CLASS 0 0 0 (15,375)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 2,215,555,629 2,095,338,042 1,081,309,546 1,005,876,144
Reinvestment of dividends - Class A 4,622,094 3,165,358 2,161,851 1,522,843
Cost of shares redeemed - Class A (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 (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(4) 109,208,132 267,085,382(4)
Reinvestment of dividends -
Administrative Class 15,049,612 9,420,477(4) 3,809,439 2,351,192(4)
Cost of shares redeemed -
Administrative Class (906,539,934) (796,735,143)(4) (168,429,144) (92,509,640)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS (1,016,832) 600,907,788(4) (55,411,573) 176,926,934(4)
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 - Service
Class 1,239,666,820 2,169,506,716 2,021,662,608 2,944,938,309
Reinvestment of dividends - Service
Class 7,773,160 1,912,601 2,235,917 1,738,759
Cost of shares redeemed - 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 - 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) "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.
(3) "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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL 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 (2)
<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) 1.39% 2.93% 1.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $59,645 $59,293 $35,253
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 0.70% 0.70%(5) 0.64%(5)
Ratio of net investment income to
average net assets 2.75% 2.87%(5) 2.68%(5)
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 0.99% 1.13%(5) 1.58%(5)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 2.46% 2.44%(5) 1.74%(5)
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(6) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
28
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX FREE MONEY MARKET
FUND (CONT.) PRIME MONEY MARKET FUND (1)
CLASS A INSTITUTIONAL CLASS CLASS A
(CONT.) ---------------------- ----------------------------------------------
---------- (UNAUDITED) (UNAUDITED)
PERIOD SIX MONTHS PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1996 (6) 1998 1998 (4) 1998 1998 1997 (2) 1996 (3)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.01 0.02 0.01 0.02 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.01 0.02 0.01 0.02 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.01) (0.02) (0.01) (0.02) (0.05) (0.02) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.02) (0.01) (0.02) (0.05) (0.02) (0.05)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 1.51% 1.59% 0.91% 2.52% 5.24% 2.49% 5.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $4,975 $26,746 $54,302 $581,549 $592,317 $277,044 $264,900
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.62%(5) 0.30% 0.30% 0.68% 0.61% 0.55% 0.55%
Ratio of net investment
income to average net
assets 2.71%(5) 3.13% 3.05% 4.97% 5.11% 4.95% 5.06%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 3.56%(5) 0.61% 0.52% 0.78% 0.83% 0.75% 0.68%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses (0.23)%(5) 2.82% 2.83% 4.87% 4.89% 4.75% 4.93%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(6) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
29
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET
FUND (1) (CONT.)
ADMINISTRATIVE CLASS
----------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
SEPT. 30, MARCH 31,
1998 1998 (4)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.02
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.02)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.02)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.66% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $599,970 $600,975
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.42% 0.40%
Ratio of net investment income to average net assets 5.24% 5.34%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.56% 0.55%
Ratio of net investment income to average net assets prior to waived
fees and reimbursed expenses 5.10% 5.19%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
30
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)(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 (2) 1996 1995 (3)
<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) 2.74% 5.58% 2.64% 5.39% 5.65%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $925,807 $802,511 $538,195 $423,959 $30,606
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 5.41% 5.46% 5.25% 5.33% 5.67%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.40% 0.41% 0.38% 0.60% 0.69%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 5.26% 5.30% 5.12% 4.98% 5.24%
- ----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
31
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)
(CONT.)
SERVICE CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
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) 0.03 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) 2.64% 5.37% 2.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $825,676 $653,693 $626,105
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45% 0.45%
Ratio of net investment income to average net assets 5.21% 5.24% 5.04%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.68% 0.65% 0.60%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.98% 5.04% 4.89%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND 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 SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
32
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1) TREASURY PLUS MONEY MARKET FUND (2)
(CONT.) CLASS A
SERVICE CLASS (CONT.) ----------------------------------------------
---------------------------------- (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS
YEAR ENDED YEAR ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1996 1995 1994 (5) 1998 1998 1997 (3) 1996 (4)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.02 0.02 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.02 0.02 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.02) (0.02) (0.05) (0.02) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02) (0.02) (0.05) (0.02) (0.05)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.19% 5.60% 3.71%** 2.45% 5.06% 2.42% 4.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $740,760 $614,101 $565,305 $581,266 $381,594 $66,486 $53,706
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.41% 0.41% 0.65% 0.62% 0.55% 0.55%
Ratio of net investment
income to average net
assets 5.14% 5.47% 3.67% 4.85% 4.93% 4.81% 4.96%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.62% 0.68% 0.89% 0.78% 0.85% 0.75% 0.67%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.97% 5.20% 3.19% 4.72% 4.70% 4.61% 4.84%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC.
(2) THE FUND 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 SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
33
<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.)
ADMINISTRATIVE CLASS CLASS E
---------------------- ----------
(UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS
ENDED ENDED ENDED
SEPT. 30, MARCH 31, SEPT. 30,
1998 1998 (4) 1998
<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 0.02 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.02 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.02) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.02) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.57% 1.52% 2.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $121,534 $176,942 $641,109
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.41% 0.40% 0.65%
Ratio of net investment income to average net assets 5.08% 5.17% 4.85%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.58% 0.56% 0.77%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.91% 5.01% 4.73%
- -----------------------------------------------------------------------------------------------
</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 AUGUST 11, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
34
<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
CLASS E (CONT.) ----------------------------------------------------------
---------------------- (UNAUDITED)
PERIOD SIX MONTHS SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1998 1997 (5) 1998 1998 1997 (1) 1996 1995 (3)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.00 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 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.00 0.03 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) 0.00 (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 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) 0.00 (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 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 4.99% 0.11% 2.66% 5.41% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $715,554 $820,657 $489,467 $501,494 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.87% 4.86% 5.25% 5.28% 5.11% 5.21% 5.42%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.84% 0.88% 0.40% 0.40% 0.39% 0.59% 0.69%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.68% 4.63% 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 AUGUST 11, 1995.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
35
<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 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.
36
<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 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.
37
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
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 National Tax-Free Money Market, Prime Money
Market, and Treasury Plus Money Market Funds (each, a "Fund", collectively, the
"Funds"), each a diversified series of the Company.
Prior to August 1, 1998 the National Tax-Free Money Market, Prime Money Market
and Treasury Plus Money Market Funds were known as the "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, 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 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 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 Prime Money Market and Treasury
39
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
Plus Money Market Funds were established to acquire all of the assets and assume
all of the liabilities of the Pacifica Prime Money Market and Treasury Money
Market Funds, respectively (collectively, the "Predecessor Funds"). These
acquisitions were accomplished in separate exchanges for shares of the
respective Fund. All performance and financial data for the Prime Money Market
and Treasury Plus Money Market Funds for periods prior to September 6, 1996
refers to the Predecessor Funds.
The National Tax-Free Money Market Fund offers Class A and Institutional Class
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 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.
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
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
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
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
41
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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
National Tax-Free Money Market Fund had net capital loss carryforwards at
September 30, 1998 as follows:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARDS
- ---------------------------------------------------------------------------
<S> <C> <C>
National Tax-Free Money Market Fund 2003 $ 6,351
2004 437
2006 3,692
</TABLE>
Any loss carryforwards from Overland are included in the Fund's 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 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.
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
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, WFB is entitled to be paid
a monthly advisory fee at an annual percentage rate of 0.30% of the average
daily net assets of the National Tax-Free Money Market Fund and 0.25% of the
average daily net assets of the Prime Money Market and Treasury Plus Money
Market Funds. 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.
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 an annual
rate of 0.10% of the average daily net assets of the Class A shares of the
Funds, 0.10% of the average daily net assets of the Service Class shares of the
Prime Money Market and Treasury Plus Money Market Funds and the Class E shares
of the Treasury Plus Money Market Fund, and 0.02% of the average daily net
assets of the Institutional Class shares of the Funds and the Administrative
Class shares of the Prime Money Market and Treasury Plus Money Market Funds.
43
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The transfer agency fees paid on behalf of the Funds for the six months ended
September 30, 1998, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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>
The Company has entered into contracts on behalf of the Funds with WFB,
whereby WFB has agreed to provide shareholder services for the Funds. Pursuant
to the contracts, WFB is entitled to receive shareholder servicing fees at an
annual rate of 0.30% of the average daily net assets of the Class A shares of
the Prime Money Market and Treasury Plus Money Market Funds and the Class E
shares of the Treasury Plus Money Market Fund, 0.25% of average daily net assets
of the Class A shares of the National Tax-Free Money Market Fund and of the
Institutional Class shares of the Prime Money Market and Treasury Plus Money
Market Funds, 0.15% of the average daily net assets of the Administrative Class
shares and 0.20% of the average daily net assets of the Service Class shares of
the Prime Money Market and Treasury Plus Money Market Funds and of the
Institutional Class shares of the National Tax-Free Money Market Fund.
The shareholder servicing fees paid on behalf of the Funds for the six months
ended September 30, 1998, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE SERVICE
FUND CLASS A CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
National Tax-Free 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>
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 and the Class E shares of the Treasury Plus Money Market Fund pursuant to
Rule 12b-1 under the 1940 Act (each, a "Plan"). The Plan for the Class A shares
of the Funds provides that each Fund may pay to Stephens, as
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
compensation for distribution-related services or as reimbursement for
distribution-related expenses, up to 0.05% of the average daily net assets
attributable to the Class A 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. Prior to September 1, 1997, the Fund paid, for distribution-related
services, a monthly fee at an annual rate of up to 0.25% of the average daily
net assets attributable to its Class E shares.
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.
For the six months ended September 30, 1998, the Treasury Plus Money Market
Fund paid distribution fees of $12,962 and $0 for the Class A and Class E
shares, respectively. Distribution fees for the Class A shares of the 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.
The registration fees paid on behalf of the Funds for the six months ended
September 30, 1998, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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>
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 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.
45
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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.
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY
MARKET FUND
---------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, MARCH 31,
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.
46
<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.
47
<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.
48
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
49
<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>
50
<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
1-800-260-5969. 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 MMI SAR (11/98)
