<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
[GRAPHIC]
September 30, 1999
INSTITUTIONAL CLASS
<PAGE>
Money Market Funds TABLE OF CONTENTS
- ------------------------------------------------------------------------
LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Prime Money Market Fund......................................3
Treasury Plus Money Market Fund..............................3
National Tax-Free Money Market Fund..........................6
PORTFOLIOS OF INVESTMENTS
National Tax-Free Money Market Fund..........................8
Prime Money Market Fund.....................................14
Treasury Plus Money Market Fund.............................18
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................20
Statement of Operations.....................................21
Statements of Changes in Net Assets.........................22
Financial Highlights........................................24
Notes to Financial Statements...............................36
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS..................47
LIST OF ABBREVIATIONS...........................................49
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
i
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
ii
<PAGE>
LETTER TO SHAREHOLDERS Money Market Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
It's a pleasure to provide you with the semi-annual report for the period
ended September 30, 1999. The report includes information about your investment
over the six-month period, including economic and market trends, a performance
summary, a portfolio review and a strategic outlook.
Several noteworthy events happened during the period, including the Dow Jones
Industrial Average surpassing 10,000 points for the first time in its 104-year
history in March, and the Federal Reserve Board (the "Fed") raising short-term
interest rates twice between April 1, 1999, and September 30, 1999.
Despite the two interest rate increases during the period, the nation's
economy remained strong. Earnings for U.S. companies were robust, we had a
budget surplus, inflation and unemployment remained low, and Americans seemed
confident about the future. We were also in the midst of a prolonged bull
market, which made U.S. capital markets attractive to investors both at home and
abroad. By the end of the period, however, stocks suffered a setback, hurt by
worries over the Fed tightening and higher interest rates early in the period,
and by a weaker dollar and rising commodity prices in September 1999. By late
September, both the DJIA and the S&P 500 Index were off about 10% from their
summer peaks. Investors can expect some potential volatility toward the end of
the year due to Y2K concerns.
The interest rate increases were good news for the bond markets, which had
discounted the Fed tightening in response to a strong economy before the rate
increases. The increases helped restore order to the bond market, which had seen
prices tumble and yields rise above 6% on the benchmark 30-year U.S. Treasury
bond. The higher the bond yields move, the more likely investors will be to
switch from stocks to the safety of bonds.
1
<PAGE>
Money Market Funds LETTER TO SHAREHOLDERS
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In addition, the short-term Treasury market experienced higher yields late in
the six-month period. However, during the last half of September there was a
rally in the six-month bills as the three-month bills were experiencing
maturities in late December. Consequently, investors stayed away from the late
December maturities due to Y2K concerns and reinvestment risk in late December.
Third quarter short-term agency yields rose more than short-term Treasury
yields, widening the spread between agencies' discount notes and T-Bills. Agency
spreads widened out considerably in the front-end, primarily due to Y2K
concerns. The spread in the three-month sector stood at 68 basis points, while
the one-year spread was 60 basis points.
As you read through this report and review the performance of the Funds within
your portfolio, we encourage you to keep long-term goals in mind when making
investment decisions. 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.
Thank you again for your continued investment with the Stagecoach Funds. At
the close of business November 5, 1999, the Stagecoach Funds were reorganized
into the Wells Fargo Funds. The next annual or semi-annual report you receive
will reflect the Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Executive Vice President
Mutual Fund Group
Wells Fargo Bank, N.A.
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President
Stagecoach Funds, Inc.
2
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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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 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 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.
3
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
PERFORMANCE SUMMARY
For the six-month period ended September 30, 1999, the Stagecoach Money Market
Funds' cumulative total returns(1) were as follows:
<TABLE>
<CAPTION>
------------------------------------------------------
<S> <C>
PRIME MONEY MARKET FUND 2.48%
TREASURY PLUS MONEY MARKET FUND 2.33%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of
September 30, 1999, were the following:
<TABLE>
<CAPTION>
------------------------------------------------------
<S> <C>
PRIME MONEY MARKET FUND 5.22%
TREASURY PLUS MONEY MARKET FUND 4.73%
</TABLE>
Keep in mind that past performance is no guarantee of future results.
PORTFOLIO REVIEW
The Federal Reserve Board (the "Fed") raised the Federal Funds Rate on
August 24 from 5.00% to 5.25%, as anticipated. This move by the Fed, along with
the June 30 Federal Funds Rate increase from 4.75% to 5.00%, caused the money
market yield curve to become steeper. The Fed described these rate increases as
a partial effort to undo the three rate decreases it made last fall to address
the economic turmoil overseas. Another factor causing money market yields to
increase is that borrowers are avoiding purchasing securities that mature in
late December due to potential Y2K problems, thus increasing the demand for
securities of other maturities. The Funds performed favorably compared to their
benchmarks because they maintained weighted average maturities which were longer
than average.
STRATEGIC OUTLOOK
The Fed was expected to increase short-term interest rates once again in
November in its continued fight against inflation and to restrain long-term
interest rates. Inflation is expected to average little more than 2% this year
and 2.5% next year. Going forward, the Funds will continue to take advantage of
the relatively steep yield curve by maintaining weighted average maturities
longer
4
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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than average, while maintaining high credit quality. To maintain adequate
liquidity, the Funds will continue to hold core positions of overnight
repurchase agreements. We believe it's prudent to continue to focus more on
credit quality, stability, capital preservation and liquidity, rather than
yield.
(1) Figures quoted represent past performance, which is no guarantee of future
results. The Funds are neither insured nor guaranteed by the U.S.
Government.
A portion of the Funds' distributions may be subject to federal, state,
and/or local taxes or the alternative minimum tax (AMT).
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these
reductions, the Funds' returns would have been lower. There is no guarantee
such reductions will continue.
An investment in the Funds is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Funds.
5
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
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NATIONAL TAX-FREE MONEY MARKET FUND - INSTITUTIONAL CLASS
The Stagecoach National Tax-Free Money Market Fund seeks to provide investors
with a high level of income exempt from federal income tax, while preserving
capital and liquidity.
The 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 B.S. degree in Business Administration and an M.B.A. in
Finance from California State University, Hayward. Mr. Shaughnessy has more than
10 years of experience in the investment industry and is a Chartered Financial
Analyst candidate.
PERFORMANCE SUMMARY
The cumulative total return(1) for the six-month period ended September 30,
1999, for the Stagecoach National Tax-Free Money Market Fund was 1.49%. The
seven-day current yield for the Stagecoach National Tax-Free Money Market Fund
as of September 30, 1999, was 3.36%.
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, in order to match a 3.36% tax-free
yield, an investor in the maximum 39.60% federal income tax bracket would need
to earn 5.56% on a taxable investment. Keep in mind that past performance is no
guarantee of future results.
PORTFOLIO REVIEW
Short-term municipal security yields fell significantly during the first two
weeks of the third quarter. This was due primarily to reinvestment of coupon
income from tax-exempt money market funds. However, by mid-July, the downward
trend was reversed, and yields began a climb that ended in a 75 basis point
increase by the end of the quarter. In response to this volatility, the Fund
increased its allocation to floating rate instruments. When rates reached their
high point in September, the Fund purchased fixed-rate notes at attractive
prices to replace its positions in maturing notes.
6
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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STRATEGIC OUTLOOK
Looking forward, the Fund will continue to emphasize purchasing floating rate
notes since the fourth quarter of the year is typically characterized by a
strong need for liquidity from tax-exempt money market funds. In the current
economic environment, we expect short-term municipal rates to continue to push
upward. We intend to maintain our emphasis on preservation of principal, high
liquidity, credit quality and the highest possible tax-exempt returns for our
clients.
(1) Figures quoted represent past performance, which is no guarantee of future
results. The Fund is neither insured nor guaranteed by the U.S. Government.
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. 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.
7
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES - 98.29%
ALABAMA - 0.79%
$1,000,000 Alabama State Public School & College
Authority Revenue Series 101 3.90% 11/01/13 $ 1,000,000
CALIFORNIA - 1.59%
$2,000,000 Irvine Ranch CA Water District 3.50% 10/01/05 $ 2,000,000
COLORADO - 0.40%
$ 500,000 Douglas County CO MFHR Autumn Chase
Project 3.70% 07/01/06 $ 500,000
DISTRICT OF COLUMBIA - 1.19%
$1,500,000 District of Columbia GO 4.25% 06/01/03 $ 1,500,000
FLORIDA - 7.44%
$2,000,000 Broward County FL Port Everglades
Facilities AMBAC Insured 3.90% 09/01/27 $ 2,000,000
1,875,000 Florida State GO 3.85 07/01/27 1,875,000
1,000,000 Orange County FL GO 3.95 10/01/10 1,000,000
2,000,000 Palm Beach FL GO 3.25 10/07/99 2,000,000
2,495,000 Tampa FL Sports Authority Revenue
Series 98 3.85 01/01/27 2,495,000
------------
$ 9,370,000
GEORGIA - 1.99%
$ 500,000 Clayton County GA MFHR 3.85% 08/01/06 $ 500,000
2,000,000 Dougherty County GA USD 3.90 03/01/00 2,006,488
------------
$ 2,506,488
HAWAII - 1.79%
$2,250,000 Hawaii State GO 3.85% 03/01/14 $ 2,250,000
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (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)
IOWA - 1.91%
$2,000,000 Polk County IA GO 3.85% 12/01/15 $ 2,000,000
400,000 Iowa Financing Authority Revenue 4.10 02/01/32 400,000
------------
$ 2,400,000
ILLINOIS - 9.07%
$1,925,000 Chicago Water 4.15% 12/01/99 $ 1,927,973
5,000,000 Illinois HFFA 3.90 08/15/25 5,000,000
4,500,000 Illinois HFFA 3.75 01/01/16 4,500,000
------------
$ 11,427,973
INDIANA - 2.62%
$1,500,000 Indianapolis IN Airport Authority Revenue 3.90% 02/23/00 $ 1,500,000
1,800,000 Indiana HFFA 3.70 02/15/26 1,800,000
------------
$ 3,300,000
LOUISIANA - 2.46%
$ 600,000 Ascension Parish LA PCR 3.95% 09/01/23 $ 600,000
1,000,000 De Soto Parish LA PCR 3.60 11/30/99 1,000,000
1,500,000 Plaquemines LA Port Harbor & Terminal
District 3.05 03/15/00 1,500,000
------------
$ 3,100,000
MAINE - 2.62%
$3,300,000 Regional Waste Systems Recovery Revenue 3.90% 07/01/12 $ 3,300,000
MARYLAND - 1.59%
$2,000,000 Maryland State GO 3.85% 08/01/12 $ 2,000,000
MASSACHUSETTS - 0.79%
$1,000,000 Baltimore MA Tax-Exempt 3.20% 10/07/99 $ 1,000,000
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
MICHIGAN - 0.48%
$ 600,000 Michigan State Higher Education 3.75% 10/01/13 $ 600,000
MINNESOTA - 1.35%
$ 700,000 Cohasset MN Power Revenue 3.95% 06/01/20 $ 700,000
1,000,000 Minneapolis MN GO 5.30 11/01/99 1,001,481
------------
$ 1,701,481
MISSOURI - 4.53%
$4,500,000 Missouri State Health & Educational
Facilities Authority Revenue Series B 4.00% 10/01/24 $ 4,500,000
1,200,000 Missouri HFFA 3.50 04/29/00 1,201,875
------------
$ 5,701,875
NEW MEXICO - 1.20
$1,500,000 New Mexico State GO 4.00% 06/30/00 $ 1,508,336
NEW YORK - 3.09%
$1,500,000 C. Rochester NY CP 3.35% 10/05/99 $ 1,500,000
1,395,000 New York State Dorm Authority Revenue 3.65 02/15/13 1,395,000
1,000,000 New York NY GO 3.80 02/17/00 1,000,000
------------
$ 3,895,000
NORTH CAROLINA - 1.27%
$ 900,000 North Carolina Medical Care Community
Hospital 3.85% 10/01/23 $ 900,000
400,000 North Carolina Medical Care Community
Hospital 3.75 10/01/20 400,000
300,000 North Carolina Medical Care Community
Hospital 3.85 09/01/02 300,000
------------
$ 1,600,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (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)
OHIO - 1.68%
$1,000,000 Hamilton County OH 5.90% 12/01/99 $ 1,004,403
1,115,000 Ohio State Air Quality Revenue 3.10 11/04/99 1,115,000
------------
$ 2,119,403
OREGON - 1.51%
$ 900,000 Oregon GO 3.20% 04/13/00 $ 900,000
1,000,000 Portland OR Sewer Revenue 3.85 06/01/14 1,000,000
------------
$ 1,900,000
PENNSYLVANIA - 5.05%
$1,100,000 Allegheny County PA IDA Series C 3.95% 07/01/27 $ 1,100,000
2,000,000 Allegheny County PA International Airport
Revenue MBIA Insured 5.00 01/01/00 2,008,605
1,050,000 Northampton County PA Higher Education
Authority Revenue 6.75 11/15/99 1,054,742
2,200,000 Pennsylvania State GO 3.75 06/01/29 2,200,000
------------
$ 6,363,347
RHODE ISLAND - 2.75%
$3,345,000 Rhode Island GO 6.00% 05/15/00 $ 3,467,288
SOUTH CAROLINA - 1.19%
$1,500,000 South Carolina Educational Facilities 3.85% 10/01/26 $ 1,500,000
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
TEXAS - 12.40%
$3,000,000 Dallas TX GO 3.35% 10/20/99 $ 3,000,000
1,005,000 Dallas TX Waterworks 7.00 10/01/99 1,005,000
900,000 Gulf Coast TX GO 4.00 06/01/24 900,000
700,000 Gulf Coast TX GO 3.85 06/01/20 700,000
2,500,000 Houston Water 3.35 10/05/99 2,500,000
2,500,000 Panhandle-Plains TX Higher Education
Student Loan Revenue Series B 3.75 06/01/23 2,500,000
1,000,000 Panhandle-Plains TX Higher Education
Student Loan Revenue Series B 3.75 06/01/21 1,000,000
1,500,000 South Texas Higher Education Authority
Revenue 3.80 12/01/29 1,500,000
2,500,000 Texas State GO 4.50 08/31/00 2,517,688
------------
$ 15,622,688
VERMONT - 2.38%
$3,000,000 Vermont HFA 3.70% 09/07/00 $ 3,000,000
VIRGINIA - 2.38%
$3,000,000 Virginia State Public Building Authority
Series 131 3.85% 08/01/19 $ 3,000,000
WASHINGTON - 9.72%
$2,000,000 Anacortes WA Tax-Exempt CP 3.40% 10/06/99 $ 2,000,000
1,680,000 Washington Power 7.25 01/01/00 1,730,670
4,300,000 Washington State Healthcare Facilities 3.75 10/01/05 4,300,000
2,210,000 Washington State Healthcare Facilities 3.75 10/01/05 2,210,000
1,000,000 Washington State Healthcare Facilities 3.90 08/01/14 1,000,000
1,000,000 Washington State HFA 4.10 07/01/25 1,000,000
------------
$ 12,240,670
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (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)
WISCONSIN - 6.14%
$1,100,000 Carlton WI PCR 3.90% 09/01/05 $ 1,100,000
5,000,000 Milwaukee WI GO 3.90 09/07/00 5,000,000
1,630,000 Wisconsin State HFA 3.77 01/01/16 1,630,000
------------
$ 7,730,000
WYOMING - 4.92%
$3,000,000 Sublette County WY PCR 3.85% 11/01/14 $ 3,000,000
3,200,000 Uinta County WY PCR 3.75 08/15/20 3,200,000
------------
$ 6,200,000
TOTAL MUNICIPAL SECURITIES $123,804,549
(Cost $123,804,549)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $123,804,549)* (Notes 1 and 3) 98.29% $123,804,549
Other Assets and Liabilities, Net 1.71 2,147,896
------ ------------
TOTAL NET ASSETS 100.00% $125,952,445
====== ============
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT
TO A DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES.
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
(UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 20.09%
$ 50,000,000 Abn-Amro Bank NV 5.30% 03/09/00 $ 49,991,570
34,250,000 Bayerische Hypo Verinsbank NY 5.27 03/03/00 34,238,883
50,000,000 Beta Finance Incorporated 5.15 02/18/00 49,995,504
25,000,000 Chase Manhattan USA 5.61 01/18/00 25,000,000
50,000,000 Chase USA 5.38 10/01/99 50,000,000
30,000,000 Credit Suisse First Boston 5.60 01/25/00 30,000,467
75,000,000 Dresdner Bank AG NY 5.31 12/09/99 75,000,000
25,000,000 Natexis Bank 5.28 12/07/99 25,000,906
60,000,000 National Westminster Plc NY 5.13 03/17/00 59,993,373
50,000,000 National Westminster Plc NY 5.14 04/14/00 49,987,094
50,000,000 RaboBank Nederland NY 5.03 01/18/00 50,001,458
160,000,000 Southtrust Bank 5.69 10/01/99 160,000,000
60,000,000 Southtrust Bank 5.63 10/01/99 60,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT $ 719,209,255
(Cost $719,209,255)
COMMERCIAL PAPER - 56.23%
$ 48,500,000 Apreco Incorporated 5.36% 10/20/99 $ 48,362,799
40,000,000 Atlantis One Funding Corporation 5.78# 02/10/00 39,152,267
65,000,000 BankAmerica 5.19# 11/03/99 64,690,762
50,000,000 BankAmerica 4.85# 11/10/99 49,730,556
64,859,000 Barton Capital Corporation 5.35 10/12/99 64,752,974
58,101,000 Barton Capital Corporation 5.80 03/06/00 56,631,805
35,000,000 Bavaria Universal Funding 5.28 02/15/00 34,998,711
30,000,000 Beta Finance Incorporated 6.15 09/14/00 30,000,000
67,597,000 Compass Securitization 5.40 11/09/99 67,201,558
24,966,000 Compass Securitization LLC 5.22# 12/17/99 24,688,820
85,000,000 Corporate Receivables Corporation++ 5.34 10/15/99 84,823,483
50,000,000 Corporate Receivables Corporation 5.36 10/07/99 49,955,333
75,000,000 Credit Suisse First Boston 5.81 03/06/00 73,099,647
49,000,000 CXC Incorporated 5.34 10/14/99 48,905,504
50,000,000 Dresdner Bank AG 5.30 10/06/99 49,963,194
35,000,000 Dresdner U.S. Finance 4.88# 01/14/00 34,501,833
145,000,000 Ford Motor Credit 5.31 10/07/99 144,871,675
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Prime Money Market
Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$ 70,000,000 GE Capital Services Incorporated 5.33% 11/04/99 $ 69,647,628
75,000,000 GE Financial Assurance 5.33 10/13/99 74,866,750
25,000,000 GE Capital Services Incorporated 4.87# 01/24/00 24,611,076
50,000,000 Goldman Sachs Group LP 5.15# 10/19/99 49,871,250
35,000,000 Goldman Sachs Group LP 5.63# 02/03/00 34,316,406
25,000,000 Goldman Sachs Group LP 6.10 09/25/00 25,000,000
12,000,000 Goldman Sachs Group LP 6.07 08/31/00 12,000,000
75,000,000 Grand Funding Corporation 5.87 01/05/00 73,826,001
50,000,000 Grand Funding Corporation 5.78 03/03/00 48,763,723
20,000,000 Greenwich Funding Corporation++ 5.35 10/06/99 19,985,139
40,000,000 JP Morgan & Company 5.12# 12/08/99 39,613,156
45,000,000 Moat Funding LLC 5.73# 05/09/00 43,417,088
30,000,000 Mont Blanc Capital 5.35 10/07/99 29,973,250
29,956,000 Monte Rosa Capital 5.35 10/12/99 29,907,030
25,000,000 Morgan Stanley/Dean Witter 5.45# 01/19/00 24,583,680
30,000,000 Moriarty Ltd 5.35 10/20/99 29,915,292
40,000,000 Old Line Funding Corporation 5.81 01/27/00 39,238,245
30,000,000 Perry Funding Corporation 5.87 03/08/00 29,222,226
35,000,000 Salomon Smith Barney Holdings 5.42# 01/18/00 34,425,630
125,000,000 Sheffield Receivables Corporation++ 5.36 10/01/99 125,000,000
50,000,000 Special Purpose A/R Corporation 5.95 02/18/00 48,843,057
50,000,000 Trident Capital Finance 5.36 10/14/99 49,903,222
29,949,000 Triple A One Funding 5.38 11/02/99 29,805,777
60,000,000 UBS Finance Incorporated 5.63 10/01/99 60,000,000
--------------
TOTAL COMMERCIAL PAPER $2,013,066,547
(Cost $2,013,066,547)
CORPORATE BONDS & NOTES - 10.50%
$ 12,500,000 Abbey National Treasury Services 5.13% 05/04/00 $ 12,495,013
30,000,000 Abbey National Treasury Services 5.65 07/24/00 29,988,306
25,000,000 BankAmerica 5.00 01/06/00 24,998,718
58,300,000 CC USA Incorporated 5.61 06/07/00 58,300,000
20,000,000 Goldman Sachs Group LP 6.00 08/07/00 20,000,000
50,000,000 IBM Credit Corporation 5.27 04/07/00 49,981,872
</TABLE>
15
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
(UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
$ 40,000,000 IBM Credit Corporation 4.67% 10/29/99 $ 39,998,696
50,000,000 Sigma Finance Incorporated 5.04 02/02/00 50,000,000
30,000,000 Sigma Finance Incorporated 5.23 03/29/00 30,000,000
25,000,000 Sigma Finance Incorporated 5.44 05/24/00 25,000,000
35,000,000 Texaco Capital Corporation 5.11 05/03/00 34,986,081
--------------
TOTAL CORPORATE BONDS & NOTES $ 375,748,686
(Cost $375,748,686)
VARIABLE AND FLOATING RATE BONDS - 11.45%
$ 50,000,000 Comerica Bank 5.43% 09/25/00 $ 49,966,149
30,000,000 Goldman Sachs Group LP 5.47 09/15/00 29,997,130
50,000,000 Huntington National Bank 5.29 10/26/99 49,998,990
75,000,000 KeyBank N.A. 5.33 10/04/99 74,999,759
125,000,000 National City Bank 5.42 09/29/00 124,902,187
40,000,000 National Rural Utilities 5.32 11/23/99 40,000,000
40,000,000 Special Purpose A/R Corporation 5.53 02/24/00 40,000,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 409,864,216
(Cost $409,864,216)
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Prime Money Market
Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 1.33%
$ 30,916,000 Goldman Sachs Pooled Repurchase
Agreement - 102% Collateralized by
U.S. Government Securities 5.28% 10/01/99 $ 30,916,000
5,374,000 JP Morgan Securities Incorporated
Repurchase Agreement - 102%
Collateralized by U.S. Government
Securities 5.25 10/01/99 5,374,000
11,228,000 Morgan Stanley & Company Repurchase
Agreement - 102% Collateralized by
U.S. Government Securities 5.20 10/01/99 11,228,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 47,518,000
(Cost $47,518,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $3,565,406,704)* (Note 1) 99.60% $3,565,406,704
Other Assets and Liabilities, Net 0.40 14,438,739
------ --------------
TOTAL NET ASSETS 100.00% $3,579,845,443
====== ==============
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
++ 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.
# 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.
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS -
Treasury Plus Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 55.72%
U.S. TREASURY BILLS - 33.69%
$605,000,000 U.S. Treasury Bills 4.00%# 10/07/99 $ 604,570,500
60,000,000 U.S. Treasury Bills 4.71# 01/06/00 59,217,533
40,000,000 U.S. Treasury Bills 4.65# 12/23/99 39,554,566
20,000,000 U.S. Treasury Bills 4.76# 01/13/00 19,725,555
--------------
$ 723,068,154
U.S. TREASURY NOTES - 22.03%
$130,000,000 U.S. Treasury Notes 7.13% 02/29/00 $ 131,146,706
125,000,000 U.S. Treasury Notes 7.75 01/31/00 126,192,730
65,000,000 U.S. Treasury Notes 7.75 11/30/99 65,315,366
50,000,000 U.S. Treasury Notes 5.50 02/29/00 50,132,125
50,000,000 U.S. Treasury Notes 5.63 11/30/99 50,081,071
30,000,000 U.S. Treasury Notes 5.38 07/31/00 29,968,820
20,000,000 U.S. Treasury Notes 5.38 01/31/00 20,029,996
--------------
$ 472,866,814
TOTAL U.S. TREASURY SECURITIES $1,195,934,968
(Cost $1,195,934,968)
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 44.30%
$ 5,808,000 Goldman Sachs Pooled Repurchase
Agreement - 102% Collateralized by
U.S. Government Securities 5.28 10/01/99 $ 5,808,000
208,190,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by
U.S. Government Securities 5.28 10/01/99 208,190,000
380,379,000 JP Morgan Securities Incorporated
Repurchase Agreement - 102%
Collateralized by U.S. Government
Securities 5.25 10/01/99 380,379,000
356,614,000 Morgan Stanley & Company Repurchase
Agreement - 102% Collateralized by
U.S. Government Securities 5.20 10/01/99 356,614,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 950,991,000
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,146,925,968)* (Notes 1 and 3) 100.02% $2,146,925,968
Other Assets and Liabilities, Net (0.02) (507,490)
------ --------------
TOTAL NET ASSETS 100.00% $2,146,418,478
====== ==============
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES.
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Money Market Funds SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL PRIME TREASURY PLUS
TAX-FREE 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 $479,541,000 for the Prime Money
Market Fund and $918,454,573 for the
Treasury Plus Money Market Fund) $123,804,549 $3,565,406,704 $2,146,925,968
Cash 1,581,805 52,344 12,875
RECEIVABLES
Interest 786,005 21,709,051 5,884,623
Organization expenses, net of
amortization 0 13,636 25,179
TOTAL ASSETS 126,172,359 3,587,181,735 2,152,848,645
LIABILITIES
Payables:
Distribution to shareholders 42,935 5,770,118 5,055,097
Due to distributor (Note 2) 3,792 123,517 98,998
Due to adviser (Note 2) 56,598 1,171,173 795,190
Other 116,589 271,484 480,882
TOTAL LIABILITIES 219,914 7,336,292 6,430,167
TOTAL NET ASSETS $125,952,445 $3,579,845,443 $2,146,418,478
NET ASSETS CONSIST OF:
Paid-in capital $125,963,410 $3,579,852,422 $2,146,418,478
Undistributed net realized gain (loss)
on investments (10,965) (6,979) 0
TOTAL NET ASSETS $125,952,445 $3,579,845,443 $2,146,418,478
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $104,759,240 $ 483,356,697 $ 586,180,875
Shares outstanding - Class A 104,763,434 483,463,122 586,222,928
Net asset value and offering price per
share - Class A $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A $ 361,365,090 $ 74,766,729
Shares outstanding - Administrative
Class N/A 361,308,015 74,752,284
Net asset value and offering price per
share - Administrative Class N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A $ 628,328,155
Shares outstanding - Class E N/A N/A 628,322,078
Net asset value and offering price per
share - Class E N/A N/A $ 1.00
Net assets - Institutional Class $21,193,205 $1,236,186,946 $ 567,988,280
Shares outstanding - Institutional Class 21,199,975 1,236,267,382 568,123,381
Net asset value and offering price per
share - Institutional Class $ 1.00 $ 1.00 $ 1.00
Net assets - Service Class N/A $1,498,936,710 $ 289,154,439
Shares outstanding - Service Class N/A 1,499,061,880 289,173,661
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.
20
<PAGE>
STATEMENT OF OPERATIONS -
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL PRIME TREASURY PLUS
TAX-FREE MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $1,821,019 $95,329,438 $58,344,854
TOTAL INVESTMENT INCOME 1,821,019 95,329,438 58,344,854
EXPENSES (NOTE 2)
Advisory fees 167,784 4,624,393 3,009,213
Administration fees 75,473 2,458,922 1,571,067
Custody fees 9,410 308,911 201,017
Shareholder servicing fees 104,920 2,495,407 2,258,194
Portfolio accounting fees 42,031 400,784 271,751
Transfer agency fees 33,675 687,607 568,488
Distribution fees 0 0 0
Organization costs 3,689 6,288 11,608
Legal and audit fees 2,642 142,841 115,050
Registration fees 3,340 73,301 62,703
Directors' fees 375 214 943
Shareholder reports 48,250 28,212 131,804
Other 1,423 62,429 41,901
Total Expenses 493,012 11,289,309 8,243,739
Less:
Waived fees and reimbursed expenses (157,389) (3,490,553) (2,388,429)
NET EXPENSES 335,623 7,798,756 5,855,310
NET INVESTMENT INCOME 1,485,396 87,530,682 52,489,544
Net realized gain (loss) on sale of
investments 51 (6,979) (2)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,485,447 $87,523,703 $52,489,542
- ----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
-----------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 1,485,396 $ 2,806,612
Net realized gain (loss) on sale of
investments 51 (327)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 1,485,447 2,806,285
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,071,125) (1,624,736)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS (414,271) (1,181,876)
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
SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 159,343,901 234,230,273
Reinvestment of dividends - Class A 1,194,654 1,622,320
Cost of shares redeemed - Class A (120,729,269) (230,195,239)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 39,809,286 5,657,354
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 177,951,972 506,716,299
Reinvestment of dividends -
Institutional Class 105,445 214,647
Cost of shares redeemed -
Institutional Class (180,792,896) (537,304,518)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (2,735,479) (30,373,572)
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 37,073,858 (24,716,545)
NET ASSETS:
Beginning net assets 88,878,587 113,595,132
ENDING NET ASSETS $125,952,445 $ 88,878,587
- -----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
------------------------------------- -------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999 SEPT. 30, 1999 MARCH 31, 1999
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 87,530,682 $ 152,557,970 $ 52,489,544 $ 102,461,486
Net realized gain (loss) on sale of
investments (6,979) 94,589 (2) 94,206
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 87,523,703 152,652,559 52,489,542 102,555,692
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (12,317,278) (27,896,647) (12,074,264) (21,822,781)
ADMINISTRATIVE CLASS (10,270,127) (28,624,366) (1,839,553) (6,110,905)
CLASS E N/A N/A (11,694,246) (28,595,708)
INSTITUTIONAL CLASS (33,781,023) (55,769,695) (15,954,588) (24,663,853)
SERVICE CLASS (31,199,047) (40,267,262) (10,926,893) (21,268,239)
From net realized gain on sale of
investments
CLASS A 0 (20,169) 0 (28,818)
ADMINISTRATIVE CLASS 0 (21,999) 0 (6,270)
CLASS E N/A N/A 0 (34,041)
INSTITUTIONAL CLASS 0 (44,180) 0 (29,922)
SERVICE CLASS 0 (36,688) 0 (27,945)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 1,386,504,174 3,566,811,184 1,106,353,627 1,880,148,228
Reinvestment of dividends - Class A 2,696,837 7,603,683 2,680,280 4,574,374
Cost of shares redeemed - Class A (1,483,050,777) (3,589,517,754) (1,066,755,596) (1,722,403,471)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (93,849,766) (15,102,887) 42,278,311 162,319,131
Proceeds from shares sold -
Administrative Class 801,755,997 1,792,211,104 70,547,602 211,237,826
Reinvestment of dividends -
Administrative Class 11,108,370 27,149,796 2,079,789 6,183,801
Cost of shares redeemed -
Administrative Class (918,645,406) (1,953,181,855) (97,969,603) (294,254,788)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS (105,781,039) (133,820,955) (25,342,212) (76,833,161)
Proceeds from shares sold - Class E N/A N/A 757,333,746 1,690,444,889
Reinvestment of dividends - Class E N/A N/A 1 0
Cost of shares redeemed - Class E N/A N/A (713,456,607) (1,821,543,593)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A 43,877,140 (131,098,704)
Proceeds from shares sold -
Institutional Class 24,131,440,370 10,313,551,923 25,808,059,953 5,020,036,817
Reinvestment of dividends -
Institutional Class 16,511,504 19,732,250 7,101,906 5,523,692
Cost of shares redeemed -
Institutional Class (24,615,842,236) (9,431,689,997) (25,741,160,218) (5,033,058,755)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (467,890,362) 901,594,176 74,001,641 (7,498,246)
Proceeds from shares sold - Service
Class 2,096,987,938 2,945,429,480 1,843,924,737 3,847,684,188
Reinvestment of dividends - Service
Class 24,601,508 20,604,434 3,941,144 5,368,260
Cost of shares redeemed - Service
Class (1,737,092,198) (2,505,257,696) (2,006,597,246) (3,772,268,891)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS 384,497,248 460,776,218 (158,731,365) 80,783,557
INCREASE (DECREASE) IN NET ASSETS (283,067,691) 1,213,418,105 (23,916,487) 27,639,787
NET ASSETS:
Beginning net assets 3,862,913,134 2,649,495,029 2,170,334,965 2,142,695,178
ENDING NET ASSETS $3,579,845,443 $3,862,913,134 $ 2,170,334,965 $2,142,695,178
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<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
ENDED YEAR ENDED
SEPT. 30, MARCH 31,
1999 1999
<S> <C> <C>
- --------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.03
Net realized gain (loss) on investments 0.00 0.00
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.01 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.03)
Distributions from net realized gain 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (0.01) (0.03)
--------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
========= =========
TOTAL RETURN (NOT ANNUALIZED) 1.28% 2.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $104,759 $64,950
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.70% 0.70%
Ratio of net investment income to average net assets 2.55% 2.56%
- --------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.95% 0.97%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 2.30% 2.29%
- --------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
The accompanying notes are an integral part of these financial statements.
24
<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.)
CLASS A (CONT.) INSTITUTIONAL CLASS
------------------------------- ---------------------------------
(UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31,
1998 1997 (1) 1996 (4) 1999 1999 1998 (2)
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.01 0.01 0.01 0.03 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.01 0.01 0.01 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.01) (0.01) (0.01) (0.03) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.01) (0.01) (0.01) (0.03) (0.01)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.93% 1.36% 1.51% 1.49% 3.01% 0.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $59,293 $35,253 $4,975 $21,193 $23,929 $54,302
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.70%(3) 0.64%(3) 0.62%(3) 0.30% 0.30% 0.30%
Ratio of net investment
income to average net
assets 2.87%(3) 2.68%(3) 2.71%(3) 2.93% 3.02% 3.05%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.13%(3) 1.58%(3) 3.56%(3) 0.65% 0.62% 0.52%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 2.44%(3) 1.74%(3) (0.23)%(3) 2.58% 2.70% 2.83%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET
FUND (1)
CLASS A
-----------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
SEPT. 30, MARCH 31,
1999 1999
<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) 2.22% 4.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $483,357 $577,213
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.75% 0.72%
Ratio of net investment income to average net assets 4.39% 4.71%
- -------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.80% 0.78%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.34% 4.65%
- -------------------------------------------------------------------------------------
</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., 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.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1) (CONT.)
CLASS A (CONT.) ADMINISTRATIVE CLASS
-------------------------------- ---------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31,
1998 1997 (2) 1996 (3) 1999 1999 1998 (4)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.02 0.05 0.02 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.02 0.05 0.02 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.02) (0.05) (0.02) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02) (0.05) (0.02) (0.05) (0.02)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 5.24% 2.49% 5.09% 2.38% 5.12% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $592,317 $277,044 $264,900 $361,365 $467,151 $600,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.61% 0.55% 0.55% 0.45% 0.43% 0.40%
Ratio of net investment
income to average net
assets 5.11% 4.95% 5.06% 4.68% 5.02% 5.34%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.83% 0.75% 0.68% 0.63% 0.59% 0.55%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.89% 4.75% 4.93% 4.50% 4.86% 5.19%
- ------------------------------------------------------------------------------------------------
</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., 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.
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>
PRIME MONEY MARKET FUND (1) (CONT.)
INSTITUTIONAL CLASS
-------------------------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31,
1999 1999 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) 0.02 0.05 0.05
Net realized gain (loss) on investments 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.05) (0.05)
Distributions from net realized gain 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED) 2.48% 5.31% 5.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,236,187 $1,704,093 $802,511
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.25% 0.25% 0.25%
Ratio of net investment income to average net
assets 4.89% 5.12% 5.46%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.45% 0.39% 0.41%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 4.69% 4.98% 5.30%
- ------------------------------------------------------------------------------------------
</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., 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.
The accompanying notes are an integral part of these financial statements.
28
<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 (CONT.) SERVICE CLASS
------------------------------- ---------------------------------
(UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31,
1997 (2) 1996 1995 (3) 1999 1999 1998
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.05 0.01 0.02 0.05 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.01 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.05) (0.01) (0.02) (0.05) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.01) (0.02) (0.05) (0.05)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.64% 5.39% 5.65%** 2.38% 5.10% 5.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $538,195 $423,959 $30,606 $1,498,937 $1,114,456 $653,693
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.26% 0.45% 0.45% 0.45%
Ratio of net investment
income to average net
assets 5.25% 5.33% 5.67% 4.70% 4.93% 5.24%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.38% 0.60% 0.69% 0.70% 0.68% 0.65%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 5.12% 4.98% 5.24% 4.45% 4.70% 5.04%
- -----------------------------------------------------------------------------------------------
</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., 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.
The accompanying notes are an integral part of these financial statements.
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.)
SERVICE CLASS (CONT.)
-------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30,
1997 (2) 1996 1995
<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 0.05
Net realized gain (loss) on investments 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.05) (0.05)
Distributions from net realized gain 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.05)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED) 2.54% 5.19% 5.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $626,105 $740,760 $614,101
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45% 0.41%
Ratio of net investment income to average net
assets 5.04% 5.14% 5.47%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.60% 0.62% 0.68%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 4.89% 4.97% 5.20%
- ------------------------------------------------------------------------------------------
</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., 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) 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.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (4)
CLASS A
-------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1999 1999 1998 1997 (2) 1996 (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) 0.02 0.05 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.02) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.02) (0.05)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.13% 4.62% 5.06% 2.42% 4.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $586,181 $543,903 $381,594 $66,486 $53,706
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.62% 0.55% 0.55%
Ratio of net investment
income to average net
assets 4.20% 4.50% 4.93% 4.81% 4.96%
- -------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.81% 0.79% 0.85% 0.75% 0.67%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.04% 4.36% 4.70% 4.61% 4.84%
- -------------------------------------------------------------------------------------
</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., 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) 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.
The accompanying notes are an integral part of these financial statements.
31
<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
-------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1999 1999 1998 (1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.05 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.05) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.02)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED) 2.23% 4.85% 1.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $74,767 $100,109 $176,942
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.43% 0.40%
Ratio of net investment income to average net
assets 4.40% 4.80% 5.17%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.71% 0.63% 0.56%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 4.14% 4.60% 5.01%
- ------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(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 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.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
The accompanying notes are an integral part of these financial statements.
32
<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.)
CLASS E INSTITUTIONAL CLASS
-------------------------------------------- ---------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1999 1999 1998 1997 (3) 1999 1999 1998
<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) 0.02 0.05 0.05 0.00 0.02 0.05 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 0.02 0.05 0.05 0.00 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) 0.00 (0.02) (0.05) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) 0.00 (0.02) (0.05) (0.05)
--------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.13% 4.62% 4.99% 0.11% 2.33% 5.04% 5.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $628,328 $584,451 $715,554 $820,657 $567,988 $493,987 $501,494
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.65% 0.65% 0.25% 0.25% 0.25%
Ratio of net investment
income to average net
assets 4.20% 4.54% 4.87% 4.86% 4.59% 4.92% 5.28%
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.81% 0.78% 0.84% 0.88% 0.45% 0.41% 0.40%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.04% 4.41% 4.68% 4.63% 4.39% 4.76% 5.13%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(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 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.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (3)
(CONT.)
INSTITUTIONAL CLASS (CONT.)
-------------------------------------
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, SEPT. 30,
1997 (1) 1996 1995 (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) 0.03 0.05 0.01
Net realized gain (loss) on investments 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.05) (0.01)
Distributions from net realized gain 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.05) (0.01)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED) 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.25% 0.25% 0.26%
Ratio of net investment income to average net
assets 5.11% 5.21% 5.42%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.39% 0.59% 0.69%
Ratio of net investment income to average net
assets prior to waived fees and reimbursed
expenses 4.97% 4.87% 4.99%
- ------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND OPERATED AS 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.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (3) (CONT.)
SERVICE CLASS
------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1999 1999 1998 1997 (1) 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.05 0.05 0.02 0.05 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.02) (0.05) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.02) (0.05) (0.05)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.23% 4.83% 5.20% 2.47% 5.03% 5.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $289,154 $447,886 $367,111 $483,401 $1,340,325 $1,001,707
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.45% 0.45% 0.45% 0.45% 0.42%
Ratio of net investment
income to average net
assets 4.39% 4.70% 5.07% 4.91% 4.98% 5.32%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.71% 0.70% 0.65% 0.61% 0.60% 0.66%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.13% 4.45% 4.87% 4.75% 4.83% 5.08%
- ------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND OPERATED AS 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.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and currently offers thirty-one 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.
Effective at the close of business on December 12, 1997, the Funds of Overland
Express, Inc. were consolidated into the Company in a tax-free exchange for
shares of designated classes of the corresponding Stagecoach fund. Also, at the
close of business on December 12, 1997, funds structured as a "feeder" fund in a
"master-feeder" structure were restructured to invest directly in a portfolio of
securities, rather than to invest in a portfolio of securities through a
"master" portfolio. 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 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.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
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 (13 months). Certain floating- and variable-rate instruments in the
portfolios may have maturities in excess of 397 days, but carry a demand feature
that permits the holder to tender the instruments back to the issuer at par
value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a constant
net asset value of $1.00 per share, although there is no assurance that they
will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered. Bond discounts are accreted and premiums are
amortized under provisions of the Internal Revenue Code of 1986, as amended (the
"Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a 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
37
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
value equal to or greater than the resale price. The repurchase agreements held
by the Funds are collateralized by instruments such as U.S. Treasury or federal
agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Any distributions to shareholders from net
realized capital gains are declared and distributed at least annually.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at December 31, 1998. The
National Tax-Free Money Market Fund had estimated net capital loss carryforwards
at December 31, 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
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and with
the various states are amortized on a straight-line basis over 60 months from
the date each Fund commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into an advisory contract on behalf of the Funds with
WFB. Pursuant to the contract, WFB has agreed to provide the Funds with daily
portfolio management. Under the contract, 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 $1 billion and 0.04% of the Funds' average daily net assets in
excess of $1 billion. 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 a contract on behalf of the Funds with WFB,
whereby WFB is responsible for providing portfolio accounting services for the
Funds. Pursuant to the contract, 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. On June 3, 1999, WFB and Forum
Accounting Services ("Forum") entered into an agreement, whereby WFB desires
that Forum performs certain fund accounting services for WFB with respect to
each Fund and Class thereof. A fixed monthly fee, and a basis point fee of
0.0025% of the average annual daily net assets of each Fund will also be
charged. The Company, on behalf of the applicable Fund, reimburses Forum for all
out-of-pocket and ancillary expenses reasonably incurred in providing the
services described in the Sub Fund Accounting Agreement. On September 1, 1999,
Forum began providing services for the National Tax-Free Money Market, Prime
Money Market, and Treasury Plus Money Market Funds.
On June 4, 1999, the Company entered into contracts on behalf of each Fund
with Norwest Bank Minnesota, N.A. ("Norwest Bank"), whereby Norwest
39
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
Bank is responsible for providing custody services for the Funds. Pursuant to
the contracts, Norwest Bank is entitled to a monthly fee for custody services at
the annual rate of 0.0167% of the average daily net assets of each Fund and to
an additional fixed fee for certain funds. Prior to June 4, 1999, WFB performed
the above services for the same fees.
On July 17, 1999, Boston Financial Data Services ("BFDS") replaced WFB as the
transfer agent for the Company. Under the transfer agency contract, BFDS is
entitled to receive, on a monthly basis, transfer agency fees based on the
number of accounts and transactions of each Fund. WFB will continue to provide
sub-transfer agency services to the Funds. Prior to July 17, 1999 the Company
had entered into a contract on behalf of the Funds with WFB, whereby WFB
provided transfer agency services for the Funds. Under the prior transfer agency
contract, WFB was 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.
The transfer agency fees paid on behalf of the Funds for the six months ended
September 30, 1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL
FUND CLASS A CLASS CLASS E CLASS SERVICE CLASS
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
National Tax-Free Money Market Fund $ 31,619 N/A N/A $ 2,056 N/A
Prime Money Market Fund 174,556 30,514 N/A 89,352 $ 393,185
Treasury Plus Money Market Fund 181,112 5,591 $172,047 47,764 161,974
</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 the average daily net
assets of the Class A shares of the National Tax-Free Money Market 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 Prime Money
Market and Treasury Plus Money Market Funds.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
The shareholder servicing fees paid on behalf of the Funds for the six months
ended September 30, 1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
FUND CLASS A CLASS CLASS E SERVICE CLASS
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
National Tax-Free Money Market Fund $104,920 N/A N/A N/A
Prime Money Market Fund 840,927 $328,817 N/A 1,325,663
Treasury Plus Money Market Fund 862,011 62,723 835,378 498,082
</TABLE>
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
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. 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 the Funds with administrative services. For these
services, 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.
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 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.
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, 1999, the Treasury Plus Money Market
Fund paid no distribution fees for the Class A shares. 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, 1999, are disclosed in the
Statement of Operations.
41
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The registration fees paid on behalf of the Funds for the six months ended
September 30, 1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL
FUND CLASS A CLASS CLASS E CLASS SERVICE CLASS
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
National Tax-Free Money Market Fund $ 892 N/A N/A $2,448 N/A
Prime Money Market Fund 3,453 $61,603 N/A 1,792 $6,453
Treasury Plus Money Market Fund 7,309 40,151 $7,245 4,155 3,843
</TABLE>
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the six months ended September 30, 1999 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, 1999, Stephens owned 267 shares of the National
Tax-Free Money Market Fund, 1,609,583 shares of the Prime Money Market Fund, and
147,335 shares of the Treasury Plus Money Market Fund.
3. CAPITAL SHARE TRANSACTIONS
As of September 30, 1999, there were over 242 billion shares of $0.001 par
value capital stock authorized by the Company. As of September 30, 1999, each
Fund was authorized to issue 10 billion shares of $0.001 par value capital stock
for each class of shares.
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
- -----------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 159,343,900 234,230,273
Shares issued in reinvestment of dividends
-- Class A 1,194,654 1,622,320
Shares redeemed -- Class A (120,729,269) (230,195,239)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS A 39,809,285 5,657,354
Shares sold -- Institutional Class 177,941,972 506,716,299
Shares issued in reinvestment of dividends
-- Institutional Class 105,445 214,647
Shares redeemed -- Institutional Class (180,782,896) (537,304,518)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- INSTITUTIONAL CLASS (2,735,479) (30,373,572)
</TABLE>
43
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------------
(UNAUDITED)
FOR THE
SIX MONTHS ENDED FOR THE YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
- -----------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,386,504,172 3,566,811,184
Shares issued in reinvestment of dividends
-- Class A 2,696,837 7,603,683
Shares redeemed -- Class A (1,483,050,777) (3,589,517,754)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS A (93,849,768) (15,102,887)
Shares sold -- Administrative Class 801,755,996 1,792,211,104
Shares issued in reinvestment of dividends
-- Administrative Class 11,108,370 27,149,796
Shares redeemed -- Administrative Class (918,645,406) (1,953,181,855)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- ADMINISTRATIVE CLASS (105,781,040) (133,820,955)
Shares sold -- Institutional Class 24,131,440,370 10,313,551,923
Shares issued in reinvestment of dividends
-- Institutional Class 16,511,504 19,732,250
Shares redeemed -- Institutional Class (24,615,842,236) (9,431,689,997)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- INSTITUTIONAL CLASS (467,890,362) 901,594,176
Shares sold -- Service Class 2,096,987,938 2,945,429,480
Shares issued in reinvestment of dividends
--
Service Class 24,601,508 20,604,434
Shares redeemed -- Service Class (1,737,092,198) (2,505,257,696)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- SERVICE CLASS 384,497,248 460,776,218
</TABLE>
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND
------------------------------------
(UNAUDITED)
FOR THE
SIX MONTHS ENDED FOR THE YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
- -----------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,106,353,677 1,880,148,228
Shares issued in reinvestment of dividends
-- Class A 2,680,280 4,574,374
Shares redeemed -- Class A (1,066,755,646) (1,722,403,471)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS A 42,278,311 162,319,131
Shares sold -- Administrative Class 70,547,603 211,237,826
Shares issued in reinvestment of dividends
-- Administrative Class 2,079,789 6,183,801
Shares redeemed -- Administrative Class (97,969,603) (294,254,788)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- ADMINISTRATIVE CLASS (25,342,211) (76,833,161)
Shares sold -- Class E 757,333,745 1,690,444,889
Shares issued in reinvestment of dividends
-- Class E 1 0
Shares redeemed -- Class E (713,456,607) (1,821,543,593)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- CLASS E 43,877,139 (131,098,704)
Shares sold -- Institutional Class 25,808,059,952 5,020,036,817
Shares issued in reinvestment of dividends
-- Institutional Class 7,101,906 5,523,692
Shares redeemed -- Institutional Class (25,741,162,218) (5,033,058,755)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- INSTITUTIONAL CLASS 73,999,640 (7,498,246)
Shares sold -- Service Class 1,843,924,738 3,847,684,188
Shares issued in reinvestment of dividends
--
Service Class 3,941,144 5,368,260
Shares redeemed -- Service Class (2,006,595,246) (3,772,268,891)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
-- SERVICE CLASS (158,729,364) 80,783,557
</TABLE>
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 Company with the
Norwest Advantage Funds following last November's merger of Wells Fargo &
Company and Norwest Corporation. The Company presented the
reorganiza-
45
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
tion to Company's shareholders and gained approval at a special shareholders'
meeting in August, 1999. At the close of business November 5, 1999, the
Stagecoach National Tax-Free Money Market Fund (Class I) and Norwest Advantage
Municipal Money Market Fund (Service Class) were reorganized to form the Wells
Fargo National Tax-Free Institutional Money Market Fund. The Stagecoach Prime
Money Market Fund (Classes I, Admin, and Service) and Norwest Advantage Cash
Investment Fund were reorganized to form the Wells Fargo Cash Investment Money
Market Fund. The Stagecoach Treasury Plus Money Market Fund (Classes I, Admin,
and Service) and Norwest Advantage Treasury Plus Fund were reorganized to form
the Wells Fargo Treasury Plus Institutional Money Market Fund. These financial
statements are applicable to the Wells Fargo Funds having former Stagecoach
Funds as accounting survivors. Please see your Wells Fargo Funds prospectus for
details about your Fund.
46
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS
The required majority of shareholders of each Fund voted to approve the
reorganization of their Fund into a Fund of the Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Fund
family and the Norwest Advantage Fund family after the merger of Wells Fargo &
Company and Norwest Corporation in November, 1998. Under the reorganization,
each of the Money Market Funds listed below will transfer all of its assets and
liabilities to a corresponding Wells Fargo Funds Trust Fund.
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAIN
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
National Tax-Free Money Market 55,480,679 2,227,485 1,305,588
Prime Money Market 1,848,974,930 42,370,079 51,408,782
Treasury Plus Money Market 1,483,214,344 26,470,452 14,389,361
</TABLE>
47
<PAGE>
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48
<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
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
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
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
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
WEBS -- World Equity Benchmark Shares
</TABLE>
49
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
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.
- -C- Stagecoach Funds
STAGECOACH FUNDS-Registered Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
LOGO SC MMI SAR (11/99)
