<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Annual Report
Treasury Plus
MONEY MARKET
Fund
Class E
March 31, 1999
<PAGE>
Treasury Plus Money Market Fund TABLE OF CONTENTS
- ------------------------------------------------------------------------
LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Treasury Plus Money Market Fund..............................3
PORTFOLIOS OF INVESTMENTS
Treasury Plus Money Market Fund..............................5
STAGECOACH FUNDS
Statement of Assets and Liabilities..........................8
Statement of Operations......................................9
Statements of Changes in Net Assets.........................10
Financial Highlights........................................12
Notes to Financial Statements...............................18
INDEPENDENT AUDITORS' REPORT....................................25
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
i
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ii
<PAGE>
LETTER TO SHAREHOLDERS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
We're pleased to provide you with this annual report for the period ended
March 31, 1999. The report provides information about your investment over the
12-month period, including economic and market trends, a performance summary, a
portfolio review and a strategic outlook.
The Stagecoach Funds experienced another year of significant growth, with net
assets increasing from $25 billion to $29 billion during the 12-month period
ended March 31, 1999. We believe our success can be partly attributed to the
confidence and support of our shareholders generated by the continued positive
performance of many of the Funds. Of course, we'll do our best to provide
prudent management to maintain and earn that confidence.
The 12-month period that ended March 31, 1999 was marked by significant
volatility. Stocks marched steadily upward early in the period, but later
surrendered some of those gains during a sell-off in the stock market last
summer. Last summer and fall, global financial turmoil disrupted the U.S.
financial markets, but the economy still benefited from overseas flight to
capital and aggressive monetary easing by the Federal Reserve Board that drove
interest rates down to historic lows. By the end of the year, the stock market
had set new highs as broad stock indexes were propelled higher by a series of
upbeat earnings reports, and the economy's two-tiered performance produced solid
economic growth. Overall, bond yields are significantly lower than they were a
year ago, and fundamentals still point toward healthy growth during the balance
of 1999. The combination of subdued inflation, moderating economic growth and
strong foreign demand should set the stage for lower interest rates.
During the 12-month period ended March 31, 1999, stocks, as measured by the
S&P 500 Index,(1) returned 18.49%. The U.S. Government bond market increased
1
<PAGE>
Treasury Plus Money Market Fund LETTER TO SHAREHOLDERS
- ------------------------------------------------------------------------
7.01% as measured by the Lehman Brothers Long Government Bond Index(2) during
the period. Most shorter-dated money market yields dropped late in the period,
while yields on longer-dated papers rose.
According to the Investment Company Institute, an estimated 44 million U.S.
households, or 77.3 million individual investors, owned mutual funds in 1998.
Many of these investors have benefited from unprecedented growth in the market.
While the latest signs of economic strength are positive, investors should
manage their expectations. The challenges of investing in today's markets make
mutual funds one of the most popular investment vehicles. We recommend that you
continually review your investment portfolio with your financial consultant to
determine an appropriate mix of investments to meet your ongoing needs.
Over the years, the Stagecoach Funds have built a reputation for innovation,
leadership and commitment to investors. We understand you have a variety of
investment options and we appreciate your confidence in selecting us to help you
meet your financial goals. Thank you again for your continued investment with
the Stagecoach Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President of
Stagecoach Funds
1 The "S&P 500 Index" is a trademark of the 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.
2
<PAGE>
INVESTMENT ADVISOR COMMENTARY Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND - CLASS E
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 Fund is managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has more than a decade of experience in managing taxable
money market mutual funds at First Interstate Bank and Union Capital Advisors.
He holds a B.A. in Finance from California State University, Los Angeles.
PERFORMANCE SUMMARY
For the 12-month period ending March 31, 1999, the Stagecoach Treasury Plus
Money Market Fund's cumulative total return was 4.62%. The seven-day current
yield for the Fund as of March 31, 1999, was 4.24%.
Keep in mind that past performance is no guarantee of future results.
PORTFOLIO REVIEW
Throughout the period, there were several events that affected the financial
markets. Perhaps the most significant was the series of interest rate cuts by
the Federal Reserve Board (the Fed) late in 1998. These cuts were a result of
serious credit/liquidity problems overseas and problems with several large U.S.
hedge funds. It was clear the Fed was committed to maintaining liquidity in the
markets by lowering interest rates. By adding later-dated securities to our
portfolios, we were able to maintain competitive yields in the low interest rate
environment.
The Fund always maintains a core position in repurchase agreements and other
short-dated securities when they are trading at the upper end of their expected
range.
3
<PAGE>
Treasury Plus Money Market Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
STRATEGIC OUTLOOK
With international and domestic markets relatively stable and inflation under
control, interest rates are expected to remain in a fairly narrow trading range.
However, as proven in late 1998, the Fed stands ready to provide necessary
liquidity by further lowering interest rates if global markets continue to
experience credit/ liquidity problems.
The Fund is well positioned given current international economic conditions
and low interest rates. We believe interest rates may remain unchanged at least
until year-end, and we will maintain the Fund's longer than average maturity
structure. We believe it's prudent to focus more on credit quality, stability,
capital preservation and liquidity, rather than purely on yield.
Figures quoted represent past performance, which is no guarantee of future
results. The Fund is neither insured nor guaranteed by the U.S. Government.
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. There is no guarantee such reductions
will continue.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.
4
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 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 - 57.61%
U.S. TREASURY BILLS - 29.84%
$50,000,000 U.S. Treasury Bills 4.39 %# 05/27/99 $ 49,655,055
75,000,000 U.S. Treasury Bills 4.40 # 06/10/99 74,354,688
250,000,000 U.S. Treasury Bills 4.54 # 04/22/99 249,307,583
275,000,000 U.S. Treasury Bills 4.58 # 04/19/99 274,337,563
--------------
$ 647,654,889
U.S. TREASURY NOTES - 27.77%
$20,000,000 U.S. Treasury Notes 5.38 % 01/31/00 $ 20,074,989
50,000,000 U.S. Treasury Notes 5.50 02/29/00 50,292,250
50,000,000 U.S. Treasury Notes 5.63 11/30/99 50,328,335
30,000,000 U.S. Treasury Notes 5.88 08/31/99 30,085,890
60,000,000 U.S. Treasury Notes 6.00 06/30/99 60,237,737
69,300,000 U.S. Treasury Notes 6.38 04/30/99 69,343,387
60,000,000 U.S. Treasury Notes 6.38 07/15/99 60,161,614
84,635,000 U.S. Treasury Notes 6.50 04/30/99 84,698,665
50,000,000 U.S. Treasury Notes 6.75 06/30/99 50,252,783
25,000,000 U.S. Treasury Notes 7.00 04/15/99 25,014,003
50,000,000 U.S. Treasury Notes 7.13 02/29/00 50,986,190
50,000,000 U.S. Treasury Notes 7.75 01/31/00 51,194,716
--------------
$ 602,670,559
TOTAL U.S. TREASURY SECURITIES $1,250,325,448
(Cost $1,250,325,448)
</TABLE>
5
<PAGE>
Treasury Plus Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 42.32%
$138,620,00 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 138,620,000
208,190,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.90 04/01/99 208,190,000
290,697,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 290,697,000
280,947,573 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 280,947,573
--------------
TOTAL REPURCHASE AGREEMENTS $ 918,454,573
(Cost $918,454,573)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,168,780,021)* 99.93% $2,168,780,021
(Notes 1 and 3)
Other Assets and Liabilities, Net 0.07 1,554,944
------ --------------
TOTAL NET ASSETS 100.00% $2,170,334,965
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</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.
6
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7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Treasury Plus Money Market Fund MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS
MONEY MARKET
FUND
<S> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost
(includes repurchase agreements of
$918,454,573) $2,168,780,021
Cash 12,037
RECEIVABLES:
Interest 10,119,139
Organization expenses, net of
amortization 37,822
Prepaid expenses 11,420
TOTAL ASSETS 2,178,960,439
LIABILITIES
Payables:
Distribution to shareholders 7,316,571
Due to distributor (Note 2) 225,453
Due to adviser (Note 2) 753,702
Other 329,748
TOTAL LIABILITIES 8,625,474
TOTAL NET ASSETS $2,170,334,965
NET ASSETS CONSIST OF:
Paid-in capital $2,170,334,963
TOTAL NET ASSETS $2,170,334,965
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $ 543,902,576
Shares outstanding - Class A 543,944,617
Net asset value and offering price per
share - Class A $ 1.00
Net assets - Administrative Class $ 100,108,945
Shares outstanding - Administrative
Class 100,094,495
Net asset value and offering price per
share - Administrative Class $ 1.00
Net assets - Class E $ 584,451,000
Shares outstanding - Class E 584,444,940
Net asset value and offering price per
share - Class E $ 1.00
Net assets - Institutional Class $ 493,986,652
Shares outstanding - Institutional Class 494,123,741
Net asset value and offering price per
share - Institutional Class $ 1.00
Net assets - Service Class $ 447,885,792
Shares outstanding - Service Class 447,903,025
Net asset value and offering price per
share - Service Class $ 1.00
- -----------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED
MARCH 31, 1999 Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY
PLUS
MONEY MARKET
FUND
<S> <C>
INVESTMENT INCOME
Interest $113,540,868
TOTAL INVESTMENT INCOME 113,540,868
EXPENSES (NOTE 2)
Advisory fees 5,484,252
Administration fees 1,535,588
Custody fees 366,353
Shareholder servicing fees 4,437,186
Portfolio accounting fees 500,237
Transfer agency fees 1,692,060
Distribution fees 12,962
Organization costs 25,216
Legal and audit fees 206,661
Registration fees 256,359
Directors' fees 2,746
Shareholder reports 130,621
Other 109,350
Total Expenses 14,759,591
Less:
Waived fees and reimbursed expenses (3,680,209)
NET EXPENSES 11,079,382
NET INVESTMENT INCOME 102,461,486
Net realized gain (loss) on sale of
investments 94,206
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $102,555,692
- ---------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Treasury Plus Money Market Fund STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND
-------------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 102,461,486 $ 92,254,980
Net realized gain (loss) on sale of
investments 94,206 104,070
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 102,555,692 92,359,050
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (21,822,781) (7,909,738)
ADMINISTRATIVE CLASS (6,110,905) (2,844,289)(2)
CLASS E (28,595,708) (35,555,799)
INSTITUTIONAL CLASS (24,663,853) (25,427,944)
SERVICE CLASS (21,268,239) (20,517,210)
From net realized gain on sale of
investments
CLASS A (28,818) (1,806)
ADMINISTRATIVE CLASS (6,270) 0(2)
CLASS E (34,041) (30,443)
INSTITUTIONAL CLASS (29,922) (24,671)
SERVICE CLASS (27,945) (15,375)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold -- Class A 1,880,148,228 1,005,876,144
Reinvestment of dividends -- Class A 4,574,374 1,522,843
Cost of shares redeemed -- Class A (1,722,403,471) (692,285,990)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS -- CLASS A 162,319,131 315,112,997
Proceeds from shares sold --
Administrative Class 211,237,826 267,085,382(2)
Reinvestment of dividends --
Administrative Class 6,183,801 2,351,192(2)
Cost of shares redeemed --
Administrative Class (294,254,788) (92,509,640)(2)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS --
ADMINISTRATIVE CLASS (76,833,161) 176,926,934(2)
Proceeds from shares sold -- Class E 1,690,444,889 1,732,685,997
Reinvestment of dividends -- Class E 0 0
Cost of shares redeemed -- Class E (1,821,543,593) (1,837,801,845)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS -- CLASS E (131,098,704) (105,115,848)
Proceeds from shares sold --
Institutional Class 5,020,036,817 1,810,109,209
Reinvestment of dividends --
Institutional Class 5,523,692 3,525,822
Cost of shares redeemed --
Institutional Class (5,033,058,755) (1,761,790,304)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS -- INSTITUTIONAL CLASS (7,498,246) 51,844,727
Proceeds from shares sold -- Service
Class 3,847,684,188 2,944,938,309
Reinvestment of dividends -- Service
Class 5,368,260 1,738,759
Cost of shares redeemed -- Service
Class (3,772,268,891) (3,062,973,983)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS -- SERVICE CLASS 80,783,557 (116,296,915)
INCREASE (DECREASE) IN NET ASSETS 27,639,787 322,503,670
NET ASSETS:
Beginning net assets 2,142,695,178 1,820,191,508
ENDING NET ASSETS $ 2,170,334,965 $ 2,142,695,178
</TABLE>
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------
</TABLE>
(1) "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.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
10
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11
<PAGE>
Treasury Plus Money Market Fund FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (1)
CLASS A
----------------------
YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31,
1999 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.62% 5.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $543,903 $381,594
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.62%
Ratio of net investment income to average net assets 4.50% 4.93%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.79% 0.85%
Ratio of net investment income to average net assets prior to waived
fees and reimbursed expenses 4.36% 4.70%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL 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.
12
<PAGE>
FINANCIAL HIGHLIGHTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
CLASS A (CONT.) ADMINISTRATIVE CLASS
---------------------- ----------------------
SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1997 (2) 1996 (3) 1999 1998 (4)
<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) 2.42% 4.95% 4.85% 1.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $66,486 $53,706 $100,109 $176,942
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.55% 0.55% 0.43% 0.40%
Ratio of net investment
income to average net
assets 4.81% 4.96% 4.80% 5.17%
- ----------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.75% 0.67% 0.63% 0.56%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.61% 4.84% 4.60% 5.01%
- ----------------------------------------------------------------------------
</TABLE>
(1) 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL 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.
13
<PAGE>
Treasury Plus Money Market Fund FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND(1)
(CONT.)
CLASS E
----------------------------------
PERIOD
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 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) 0.05 0.05 0.00
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.00
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) 0.00
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.62% 4.99% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $584,451 $715,554 $820,657
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets 4.54% 4.87% 4.86%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.78% 0.84% 0.88%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.41% 4.68% 4.63%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
14
<PAGE>
FINANCIAL HIGHLIGHTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
INSTITUTIONAL CLASS
----------------------------------------------------------
SIX MONTHS PERIOD
YEAR ENDED YEAR ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1999 1998 1997 (3) 1996 1995 (4)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 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 0.05 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (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 (0.05) (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) 5.04% 5.41% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $493,987 $501,494 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.92% 5.28% 5.11% 5.21% 5.42%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.41% 0.40% 0.39% 0.59% 0.69%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.76% 5.13% 4.97% 4.87% 4.99%
- ----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
15
<PAGE>
Treasury Plus Money Market Fund FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (1)
(CONT.)
SERVICE CLASS
----------------------
YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31,
1999 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.83% 5.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $447,886 $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 4.70% 5.07%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.70% 0.65%
Ratio of net investment income to average net assets prior to waived
fees and reimbursed expenses 4.45% 4.87%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
16
<PAGE>
FINANCIAL HIGHLIGHTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
SERVICE CLASS (CONT.)
----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30,
1997 (2) 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 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 RESPONSIBILITES. 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., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
17
<PAGE>
Treasury Plus Money Market Fund NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and is currently comprised of thirty-one separate series. These financial
statements represent the Treasury Plus Money Market Fund (the "Fund"), a
diversified series of the Company.
Prior to August 1, 1998 the Treasury Plus Money Market Fund was known as the
"Treasury Money Market Mutual Fund".
Effective at the close of business on December 12, 1997, the Funds of Overland
Express Funds, Inc. were consolidated into the Company in a tax-free exchange
for shares of designated classes of the corresponding Stagecoach fund. Effective
on September 6, 1996 the Pacifica Funds Trust was consolidated into the Company
in a tax-free exchange for shares of designated classes of the corresponding
Stagecoach fund.
The Fund offers Class A, Administrative Class, Class E, Institutional Class,
and Service Class shares. The separate classes of shares differ principally in
the 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
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
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 Fund invests only in securities with remaining maturities not exceeding
397 days (thirteen months). Certain floating- and variable-rate instruments in
the portfolio 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 Fund uses the amortized cost method to value its 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 Fund seeks to maintain a constant net asset value
of $1.00 per share, although there is no assurance that it 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.
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 the Fund's Portfolio of
Investments. The Fund 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 in the Fund 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.
19
<PAGE>
Treasury Plus Money Market Fund NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at March 31, 1999.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund. The differences between the income 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 Fund and its
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 the Fund commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into an advisory contract on behalf of the Fund with
WFB. Pursuant to the contract, WFB has agreed to provide the Fund with daily
portfolio management. Under the contract, WFB is entitled to be paid a monthly
advisory fee at an annual rate of 0.25% of the Fund's average daily net assets.
On August 1, 1998, Wells Capital Management Incorporated ("WCM"), a wholly-owned
subsidiary of WFB, began acting as investment sub-advisor to the Fund. WCM is
entitled to receive from WFB, as compensation for its sub-advisory services to
the Fund, a monthly fee at the annual rate of 0.05% of the Fund's average daily
net assets up to $960 million and 0.04% of the Fund's
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
average daily net assets in excess of $960 million. WCM's minimum annual fee is
$120,000 for the Fund. This minimum annual fee does not increase the advisory
fees paid by the Funds to WFB.
The Company has entered into a contract on behalf of the Fund with WFB,
whereby WFB is responsible for providing custody and portfolio accounting
services for the Fund. Pursuant to the contract, 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 the Fund. For portfolio accounting
services, WFB is entitled to a monthly base fee of $2,000 plus an annual fee of
0.07% of the first $50 million of the Fund's average daily net assets, 0.045% of
the next $50 million, and 0.02% of the Fund's average daily net assets in excess
of $100 million.
The Company has entered into a contract on behalf of the Fund with WFB,
whereby WFB provides transfer agency services for the Fund. 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, Class E and
Service Class shares of the Fund, and 0.02% of the average daily net assets of
the Administrative Class and Institutional Class shares of the Fund.
Transfer agency fees paid on behalf of the Fund for the year ended March 31,
1999 were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
CLASS A CLASS CLASS E CLASS CLASS
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 482,998 $ 25,533 $ 629,732 $ 100,032 $ 453,765
</TABLE>
The Company has entered into a contract on behalf of the Fund with WFB,
whereby WFB has agreed to provide shareholder services for the Fund. Pursuant to
the contract, WFB is entitled to receive shareholder servicing fees at an annual
rate of 0.30% of the average daily net assets of the Class A and Class E shares
of the Fund, 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 Fund.
Shareholder servicing fees paid on behalf of the Fund for the year ended March
31, 1999 were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE SERVICE
CLASS A CLASS CLASS E CLASS
- ------------------------------------------------
<S> <C> <C> <C>
$1,448,993 $ 191,467 $1,889,196 $ 907,530
</TABLE>
Prior to March 25, 1999, the Company had entered into administration
agreements on behalf of the Funds whereby WFB as administrator and Stephens Inc.
("Stephens") as co-administrator provided each Fund with administration
services. Under the prior arrangement, WFB and Stephens were entitled to receive
monthly fees at the annual rates of 0.03% and 0.04%, respectively, of each
Fund's average daily net assets.
21
<PAGE>
Treasury Plus Money Market Fund NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB will act as
the sole Administrator of the Funds and is entitled to receive monthly fees at
an annual rate of 0.15% of the average daily net assets of the Funds.
The Company has adopted separate Distribution Plans for Class A and Class E
shares of the Fund pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan").
The Plan for the Class A shares of the Fund provides that the Fund may pay to
Stephens, shares as compensation for distribution-related services or as
reimbursement for distribution-related expenses, up to 0.05% of the average
daily net assets attributable to the Class A shares.
Under the Plan for Class E shares of the 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.
The 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 year ended March 31, 1999, the Fund paid distribution fees of $12,962
for Class A shares.
Registration fees paid on behalf of the Fund for the year ended March 31, 1999
were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
CLASS A CLASS CLASS E CLASS CLASS
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 42,337 $ 102,067 $ 10,357 $ 21,735 $ 79,863
</TABLE>
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the year ended March 31, 1999 was waived by WFB. Waived fees and
reimbursed expenses continue at the discretion of WFB.
Certain officers and one director of the Company are also officers of
Stephens. As of March 31, 1999, Stephens owned 144,780 shares of the Fund.
3. CAPITAL SHARE TRANSACTIONS
As of March 31, 1999, there were over 242 billion shares of $0.001 par value
capital stock authorized by the Company. As of March 31, 1999, the Fund was
authorized to issue 10 billion shares of $0.001 par value capital stock for each
class of shares.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
Capital share transactions for the Fund were as follows:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND
---------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998 (2)
- -------------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,880,148,228 1,005,879,507
Shares issued in reinvestment of dividends --
Class A 4,574,374 1,522,843
Shares redeemed -- Class A (1,722,403,471) (692,284,609)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 162,319,131 315,117,741
Shares sold -- Administrative Class(1) 211,237,826 267,085,382
Shares issued in reinvestment of dividends --
Administrative Class(1) 6,183,801 2,351,192
Shares redeemed -- Administrative Class(1) (294,254,788) (92,508,918)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (76,833,161) 176,927,656
Shares sold -- Class E 1,690,444,889 1,732,685,998
Shares issued in reinvestment of dividends --
Class E 0 0
Shares redeemed -- Class E (1,821,543,593) (1,837,799,382)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS E (131,098,704) (105,113,384)
Shares sold -- Institutional Class 5,020,036,817 1,810,109,209
Shares issued in reinvestment of dividends --
Institutional Class 5,523,692 3,525,822
Shares redeemed -- Institutional Class (5,033,058,755) (1,761,788,362)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (7,498,246) 51,846,669
Shares sold -- Service Class 3,847,684,188 2,944,938,308
Shares issued in reinvestment of dividends --
Service Class 5,368,260 1,738,759
Shares redeemed -- Service Class (3,772,268,891) (3,062,972,733)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 80,783,557 (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.
23
<PAGE>
Treasury Plus Money Market Fund NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
4. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Family of
Funds with the Norwest Advantage Family of Funds following last November's
merger of Wells Fargo & Company and Norwest Corporation. The Company will
present the reorganization to Fund shareholders for their approval at a special
shareholders' meeting that is planned for August 1999.
24
<PAGE>
INDEPENDENT AUDITORS' REPORT Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Stagecoach Funds, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of the Treasury Plus Money Market Fund
(one of the funds comprising Stagecoach Funds, Inc.) as of March 31, 1999, and
the related statement of operations for the year then ended, the statement of
changes in net assets for each of the years in the two-year period then ended,
and financial highlights for the periods indicated herein. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. All years or periods
indicated in the accompanying financial highlights ending prior to October 1,
1995 were audited by other auditors whose report dated November 15, 1995
expressed an unqualified opinion on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards required that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1999, by correspondence with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Treasury Plus Money Market Fund of Stagecoach Funds, Inc. as of March 31, 1999,
the results of its operations, the changes in its net assets, and its financial
highlights for the periods indicated herein, in conformity with generally
accepted accounting principles.
[KPMG LLP SIGNATURE]
San Francisco, California
May 7, 1999
25
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LIST OF ABBREVIATIONS
- ------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which
may have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
CONNIE LEE -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MTN -- Medium Term Note
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
</TABLE>
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services and/or certain other services for the Stagecoach Funds. Wells
Capital Management Incorporated ("WCM") provides investment sub-advisory
services for certain Stagecoach Funds. The Funds are distributed by
STEPHENS INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and WCM are not
affiliated with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Stagecoach Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
STAGECOACH FUNDS-Registered
Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
SC MME AR (5/99)
