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Semi-Annual Report
MONEY MARKET Funds
California Tax-Free Money Market Fund
Government Money Market Fund
Money Market Fund
National Tax-Free Money Market Fund
Prime Money Market Fund
Treasury Plus Money Market Fund
September 30, 1999
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Money Market Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Government Money Market Fund.................................3
Money Market Fund............................................3
Prime Money Market Fund......................................3
Treasury Plus Money Market Fund..............................3
California Tax-Free Money Market Fund........................6
National Tax-Free Money Market Fund..........................6
PORTFOLIOS OF INVESTMENTS
California Tax-Free Money Market Fund........................9
Government Money Market Fund................................24
Money Market Fund...........................................26
National Tax-Free Money Market Fund.........................32
Prime Money Market Fund.....................................38
Treasury Plus Money Market Fund.............................42
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................44
Statement of Operations.....................................46
Statements of Changes in Net Assets.........................48
Financial Highlights........................................52
Notes to Financial Statements...............................70
SHAREHOLDER'S MEETING AND PROXY VOTING RESULTS..................84
LIST OF ABBREVIATIONS...........................................85
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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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.
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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.
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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GOVERNMENT MONEY MARKET FUND - CLASS A
MONEY MARKET FUND - CLASS A
PRIME MONEY MARKET FUND - CLASS A
TREASURY PLUS MONEY MARKET FUND - CLASS A
FOUR STAGECOACH MONEY MARKET FUNDS (EACH, A "FUND," COLLECTIVELY, THE "FUNDS")
WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach Government Money Market Fund seeks to provide investors with as
high a level of current income as is consistent with preservation of capital and
liquidity.
The Stagecoach Money Market Fund seeks to provide investors with a high level
of income, while preserving capital and liquidity, by investing in high-quality,
short-term instruments.
The Stagecoach Prime Money Market Fund seeks to provide investors with
maximized current income to the extent consistent with preservation of capital
and maintenance of liquidity.
The Stagecoach Treasury Plus Money Market Fund seeks to provide investors with
current income and stability of principal.
The 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.
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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PERFORMANCE SUMMARY
For the six-month period ended September 30, 1999, the Stagecoach Money Market
Funds' cumulative total returns(1) were as follows:
<TABLE>
<S> <C>
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GOVERNMENT MONEY MARKET FUND 2.17%
MONEY MARKET FUND 2.23%
PRIME MONEY MARKET FUND 2.22%
TREASURY PLUS MONEY MARKET FUND 2.13%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of
September 30, 1999, were the following:
<TABLE>
<S> <C>
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GOVERNMENT MONEY MARKET FUND 4.53%
MONEY MARKET FUND 4.71%
PRIME MONEY MARKET FUND 4.72%
TREASURY PLUS MONEY MARKET FUND 4.33%
</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 a weighted average maturity which was longer
than average.
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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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 a weighted average maturity
longer than average, while maintaining high credit quality. To maintain adequate
liquidity, the Funds will continue to maintain a core position 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.
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
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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CALIFORNIA TAX-FREE MONEY MARKET FUND - CLASS A
NATIONAL TAX-FREE MONEY MARKET FUND - CLASS A
TWO STAGECOACH TAX-FREE MONEY MARKET FUNDS (EACH, A "FUND," COLLECTIVELY, THE
"FUNDS") WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach California Tax-Free Money Market Fund seeks to obtain a high
level of income exempt from federal income tax and California personal income
tax, while preserving capital and liquidity, by investing in high-quality,
short-term, U.S. dollar-denominated money market instruments, primarily
California municipal obligations.
The Stagecoach National Tax-Free Money Market Fund seeks to provide investors
with a high level of income exempt from federal income tax, while preserving
capital and liquidity.
The Funds are managed by Kevin Shaughnessy of Wells Capital Management
Incorporated. Mr. Shaughnessy joined Wells Fargo Bank in 1996 from Lehman
Brothers. He holds a 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 returns(1) for the six-month period ended September 30,
1999, for the Stagecoach Tax-Free Money Market Funds were as follows:
<TABLE>
<S> <C>
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CALIFORNIA TAX-FREE MONEY MARKET FUND 1.20%
NATIONAL TAX-FREE MONEY MARKET FUND 1.28%
</TABLE>
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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The seven-day current yields for the Stagecoach Tax-Free Money Market Funds as
of September 30, 1999, were as follows:
<TABLE>
<S> <C>
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CALIFORNIA TAX-FREE MONEY MARKET FUND 2.72%
NATIONAL TAX-FREE MONEY MARKET FUND 3.01%
</TABLE>
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, an investor in the maximum combined
federal and California income tax bracket of 45.22% would need to earn 4.97%
from a taxable investment to match a 2.72% tax-free yield. In order to match a
3.01% tax-free yield, an investor in the maximum 39.60% federal income tax
bracket would need to earn 4.98% on a taxable investment. Keep in mind that past
performance is no guarantee of future results.
PORTFOLIO REVIEW
The yields on short-term tax exempt money market instruments increased
significantly in April and September. In both of these months, money market
funds tend to lose assets due to tax payments, and the decrease in demand drives
up the yields. In response to the volatility experienced during the period, the
Funds increased their allocation to floating rate instruments. When rates
reached their high point in September, the Funds purchased fixed-rate notes at
attractive prices to replace their positions in maturing notes.
In California, the economy remained strong. As a result, some municipalities
reduced the size of their annual note financings during the period. This created
a slight shortage of California paper for money market funds in which to invest
and kept yields on California paper low relative to national paper.
STRATEGIC OUTLOOK
Looking forward, the Funds 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-
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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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 Funds are neither insured nor guaranteed by the U.S.
Government.
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.
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PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 95.24%
$6,900,000 ABAG Finance Authority for Nonprofit Corporation
California Lucile Salter Packard Project AMBAC
Insured 3.40% 08/01/23 $ 6,900,000
3,000,000 ABAG Financing Authority COP Series C 3.85 10/01/27 3,000,000
8,176,000 ABN Amro Munitops COP - 1998-25 3.20 07/05/06 8,176,000
17,995,000 ABN Amro Munitops COP 1998-20 3.50 07/05/06 17,995,000
1,700,000 Alhambra CA IDA Sunclipse LOC - Bank of America 3.10 05/01/07 1,700,000
3,105,000 Anaheim CA COP Police Facilities 3.20 08/01/08 3,105,000
11,850,000 Anaheim CA CP 2.90 10/13/99 11,850,000
5,000,000 Anaheim CA CP 3.00 11/10/99 5,000,000
1,700,000 Anaheim CA HFA AMT 3.30 07/15/20 1,700,000
25,000,000 Anaheim CA Housing Revenue LOC - Citibank AMT 3.35 12/15/23 25,000,000
6,800,000 Anaheim CA Public Improvement COP LOC - Industrial Bank
of Japan Limited 3.20 08/01/19 6,800,000
3,000,000 Barstow CA MFHR Desert Vista Apartments LOC - Federal
Home Loan Bank of San Francisco 3.40 12/01/20 3,000,000
4,200,000 CAC PCR CP 3.25 01/26/00 4,200,000
2,750,000 CA EDFA COP 3.52 06/01/27 2,750,000
5,495,000 CA EDFA COP Series 147 3.52 10/01/27 5,495,000
30,000,000 California Community College Financing Authority
Series A 4.00 06/30/00 30,197,458
3,000,000 California DW&P 3.52 12/01/24 3,000,000
11,785,000 California DW&P Series 119 3.56 12/01/22 11,785,000
4,390,000 California Educational Facilities Authority Revenue 3.75 10/01/15 4,390,000
3,600,000 California Health Facility 3.70 09/01/28 3,600,000
6,355,000 California HFA 3.10 08/01/16 6,355,000
2,510,000 California HFA Revenue AMT Series B 3.00 02/01/00 2,510,000
3,580,000 California HFA Series J-1 3.62 02/01/29 3,580,000
4,230,000 California HFFA 3.25 07/15/13 4,230,000
15,600,000 California HFFA 3.40 07/01/22 15,600,000
</TABLE>
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PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$7,700,000 California HFFA FSA Insured 3.50% 07/01/22 $ 7,700,000
6,100,000 California HFFA Catholic Healthcare Series B 3.40 07/01/12 6,100,000
700,000 California HFFA Revenue Catholic Healthcare Series A
MBIA Insured 3.40 07/01/21 700,000
1,000,000 California HFFA Series B FNMA Collateralized 3.25 07/15/13 1,000,000
1,550,000 California HFFA Series C FNMA Collateralized 3.25 07/15/13 1,550,000
4,000,000 California Housing Financing Agency Revenue Series D 3.02 04/30/00 4,000,000
55,000,000 California Housing Financing Agency Revenue Series E 3.40 08/01/00 55,000,000
10,000,000 California Housing Financing Agency Revenue Series J 3.20 08/01/20 10,000,000
24,160,000 California PCR 3.45 06/01/14 24,160,000
4,785,000 California PCR 3.45 02/01/18 4,785,000
5,000,000 California PCR 3.55 12/01/18 5,000,000
3,800,000 California PCR AMT 3.35 12/01/16 3,800,000
1,900,000 California PCR AMT Pacific Gas & Electric Series D 3.40 01/01/10 1,900,000
4,300,000 California PCR Daily Refunded 3.70 11/01/26 4,300,000
5,000,000 California PCR Financing Authority 3.30 09/01/17 5,000,000
400,000 California Pollution Control 3.45 10/01/09 400,000
800,000 California Pollution Control Finance Authority Revenue 3.70 12/01/18 800,000
2,100,000 California Pollution Control Finance Authority Revenue 3.75 02/01/16 2,100,000
7,000,000 California Revenue Wateruse Finance Authority 3.60 05/01/28 7,000,000
23,000,000 California School Cash Reserve Program Series A 4.00 07/03/00 23,151,349
3,100,000 California School Facilities COP Series A 3.45 07/01/22 3,100,000
2,695,000 California School Facilities Financing Corporation
Series B Bayerische 3.45 07/01/24 2,695,000
</TABLE>
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PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$15,565,000 California State 3.52% 02/01/15 $ 15,565,000
24,995,000 California State COP Series 55 FGIC Insured 3.52 02/01/13 24,995,000
45,000 California State Custodial Receipt CR-152 3.62 11/01/24 45,000
4,955,000 California State Custodial Receipt CR-152D 3.62 11/01/24 4,955,000
265,000 California State Custodial Receipt CR-153 3.62 11/01/24 265,000
11,675,000 California State Custodial Receipt CR-153D 3.62 11/01/24 11,675,000
1,300,000 California State Development Authority Revenue
Series A 3.50 10/01/26 1,300,000
4,950,000 California State Eagle Trust Private Placement 3.62 09/01/03 4,950,000
5,700,000 California State Health Facility Finance Authority
Revenue Series D 3.40 07/01/18 5,700,000
2,000,000 California State HFA Home Mortgage Revenue MBIA Insured 3.75 08/01/10 2,000,000
2,600,000 California State HFFA Adventist Health System LOC
Toronto Dominion Bank 3.40 08/01/21 2,600,000
7,100,000 California State HFFA Childrens Hospital MBIA Insured 3.40 11/01/21 7,100,000
4,800,000 California State HFFA Memorial Health Services 3.45 10/01/24 4,800,000
5,800,000 California State HFFA Revenue Catholic Healthcare West
Series B MBIA Insured 3.40 07/01/16 5,800,000
3,800,000 California State HFFA Revenue Scripps Hospital 3.10 10/01/21 3,800,000
8,270,000 California State HFFA Revenue Scripps Memorial Hospital
Series B 3.10 12/01/15 8,270,000
1,100,000 California State HFFA Santa Barbara Cottage LOC Credit
Suisse 3.40 09/01/15 1,100,000
</TABLE>
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PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$1,300,000 California State HFFA St. Joseph's Health Center
Series A 3.45% 07/01/13 $ 1,300,000
1,025,000 California State HFFA St. Joseph's Health Systems 3.50 07/01/13 1,025,000
2,100,000 California State HFFA St. Joseph's Health Systems
Series B 3.50 07/01/09 2,100,000
2,000,000 California State PCFA Pacific Gas & Electric Series A
AMT 3.30 12/01/16 2,000,000
17,500,000 California State PCFA Sanger Project Series 90-A LOC -
Credit Suisse 3.30 09/01/20 17,500,000
2,000,000 California State PCFA Solid Waste Disposal Revenue
Shell Oil Company Martinez Project AMT AMBAC Insured 3.75 12/01/24 2,000,000
2,200,000 California State PCFA Southern California Edison
Series D 4.05 02/28/08 2,200,000
11,225,000 California State PCR Pacific Gas & Electric 3.70 11/01/26 11,225,000
4,500,000 California State Public Works 3.62 09/01/17 4,500,000
3,815,000 California State Public Works Board Lease Regents of
the University of California Series A 7.00 09/01/15 4,008,660
3,000,000 California State Public Works Board Lease Revenue
Department of Corrections 7.00 09/01/09 3,152,289
27,000,000 California State Revenue Anticipation Notes Series A 4.00 06/30/00 27,137,700
5,000,000 California State Rural Water Financing Authority Public
Projects Construction 4.25 03/01/00 5,023,167
3,300,000 California Statewide Authority Revenue COP John Muir
AMBAC Insured 3.45 08/15/27 3,300,000
2,700,000 California Statewide CDA Barton Hospital LOC - Banque
Nationale de Paris 3.65 12/01/09 2,700,000
</TABLE>
12
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PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$1,000,000 California Statewide CDA St. Joseph Health System 3.35% 07/01/08 $ 1,000,000
1,700,000 California Statewide CDA St. Joseph Health System Group 3.50 07/01/24 1,700,000
56,000,000 California Statewide Community Development Tax Revenue
Anticipation Notes Series A-1 4.00 06/30/00 56,290,378
28,000,000 California Statewide Community Development Tax Revenue
Anticipation Notes Series C-2 4.00 09/29/00 28,150,803
21,530,000 California Statewide Community IDA 3.65 10/01/33 21,530,000
2,500,000 California Statewide Community IDA Del Mesa Farms
Project Series A 3.35 05/01/19 2,500,000
20,395,000 California Statewide Community MFHR 3.82 05/01/36 20,395,000
24,100,000 California TRAN Financing Authority 3.60 10/01/27 24,100,000
5,000,000 Camarillo CA MFHR Heritage Park 3.30 07/15/19 5,000,000
16,420,000 Camarillo CA Revenue AMT 3.40 10/15/26 16,420,000
45,000 Central Valley School Financing Authority Tax Revenue 3.50 01/27/00 45,094
8,000,000 Chula Vista CA CP 3.40 01/18/00 8,000,000
10,700,000 Chula Vista CA IDR San Diego Gas & Electric 3.40 12/01/27 10,700,000
3,300,000 Chula Vista CA MFHR Series A 3.40 03/01/05 3,300,000
5,100,000 Colton CA RDFA Las Palomas Associates Project LOC -
Bank of America 3.25 11/01/15 5,100,000
500,000 Colton CA RDFA MFHR LOC - Federal Home Loan Bank of San
Francisco 3.25 05/01/10 500,000
1,100,000 Concord CA MFHR Bel Air Apartments LOC - Bank of
America AMT 3.35 12/01/16 1,100,000
745,000 Contra Costa County CA MFHR El Cerrito Royale LOC -
Bank of America 3.35 12/01/17 745,000
3,000,000 Contra Costa County CA MFHR Lakeshore Series C 3.25 11/15/12 3,000,000
</TABLE>
13
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PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$1,400,000 Contra Costa County CA School Finance Authority Revenue
Series C 3.55% 07/01/25 $ 1,400,000
2,000,000 Duarte CA RDFA COP Johnson Duarte Partners Project
Series B LOC - Bank of America 3.25 12/01/14 2,000,000
2,200,000 Dublin CA MFHR Park Sierra Series A 3.35 06/01/28 2,200,000
26,100,000 Eagle Trust Series 94 MBIA Insured 3.62 09/01/03 26,100,000
1,300,000 East Side Santa Clara County Unified High School
District Tax Revenue Anticipation Notes 4.25 10/01/99 1,300,000
4,400,000 Escondido CA CDA LOC - Bank of America AMT 3.35 10/12/16 4,400,000
150,000 Fairfield CA IDA Herman G Rowland Project LOC - Bank of
America 2.92 04/01/05 150,000
1,100,000 Fowler CA IDA Bee Sweet Citrus Incorporated LOC - Bank
of America AMT 3.40 12/01/05 1,100,000
2,000,000 Fremont CA COP Family Resource Center Financing Project 3.55 08/01/28 2,000,000
6,800,000 Fullerton CA IDA Sunclipse Incorporated LOC - Bank of
America 3.10 07/01/15 6,800,000
1,000,000 Golden Empire Schools Financing Authority Kern High
School District Series A 3.65 12/01/24 1,000,000
7,050,000 Hayward CA Housing Authority 3.30 06/15/25 7,050,000
9,000,000 Hayward CA MFHR FGIC Insured 3.40 08/01/14 9,000,000
3,605,000 Huntington Beach CA MFHR Seabridge Villas LOC - Bank of
America 4.00 02/01/10 3,605,000
8,300,000 Irvine CA IDA Improvement Bond LOC - National
Westminster Bank Plc 3.50 09/02/15 8,300,000
1,500,000 Irvine CA IDA Irvine East Investment Company LOC - Bank
of America 3.35 12/01/05 1,500,000
4,100,000 Irvine CA Improvement Building Assessment District 3.50 09/02/22 4,100,000
4,935,000 Irvine California Improvement Bond 3.50 09/02/22 4,935,000
</TABLE>
14
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PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$8,200,000 Irvine CA Public Facilities & Infrastructure Authority
Lease Revenue Capital Improvement Project 3.30% 11/01/10 $ 8,200,000
800,000 Irvine Ranch CA Water District LOC - Bank of America 3.50 04/01/33 800,000
2,000,000 Irvine Ranch CA Water District LOC - Dai-Ichi Kangyo
Bank Ltd 3.50 09/02/20 2,000,000
2,800,000 Irvine Ranch CA Water District LOC - Sumitomo Bank Ltd 3.50 10/01/10 2,800,000
1,080,000 Kern County CA COP Public Facilities Project Series B 3.40 08/01/06 1,080,000
1,600,000 Kern County CA COP Public Facilities Project Series D 3.40 08/01/06 1,600,000
41,735,000 Kern County CA Tax Revenue Anticipation Notes 4.00 06/30/00 41,881,229
100,000 Lancaster CA HFA MFHR Westwood Park Apartments LOC -
Bank of America 3.25 12/01/07 100,000
5,040,000 Livermore CA MFHR 3.25 07/15/18 5,040,000
12,000,000 Los Angeles CA Convention & Exhibition Center Authority
Lease Revenue 3.70 08/15/18 12,000,000
22,875,000 Los Angeles CA CP 3.25 02/09/00 22,875,000
49,200,000 Los Angeles CA DW&P CP 3.25 03/06/00 49,200,000
35,500,000 Los Angeles CA DW&P Series 144 3.52 06/15/29 35,500,000
8,000,000 Los Angeles CA MFHR Fountain Park Project 3.35 04/15/33 8,000,000
1,800,000 Los Angeles CA MFHR Masselin Manor LOC - Bank of
America 3.45 07/01/15 1,800,000
17,800,000 Los Angeles CA Pension Obligation Series C AMBAC
Insured 3.20 06/30/07 17,800,000
35,000,000 Los Angeles CA Tax Revenue Anticipation Notes 4.00 06/30/00 35,164,137
31,000,000 Los Angeles CA USD Series A26 Regulation D 3.35 10/01/99 31,000,000
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS -
California 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>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$36,000,000 Los Angeles CA USD Series E-19 3.70% 09/29/00 $ 36,000,000
14,800,000 Los Angeles County CA HFA MFHR Park Sierra LOC -
Citibank AMT 3.40 12/01/08 14,800,000
6,900,000 Los Angeles County CA HFA MFHR Sand Canyon Ranch
Project LOC - Citibank 3.30 11/01/06 6,900,000
15,205,000 Los Angeles County CA Metropolitan Transportation
Authority Sales Tax Revenue Series A 3.40 07/01/20 15,205,000
18,700,000 Los Angeles County CA Pension Obligation Series A AMBAC
Insured 3.20 06/30/07 18,700,000
10,000,000 Los Angeles County CA School Financing Authority COP
Series A 4.00 06/30/00 10,062,902
67,200,000 Los Angeles County CA Tax Revenue Anticipation Notes 4.00 06/30/00 67,522,260
500,000 Los Angeles County CA Transportation Commission Sales
Tax Revenue FGIC Insured 3.20 07/01/12 500,000
14,000,000 Los Angeles County CP 3.30 02/08/00 14,000,000
4,800,000 Los Angeles USD 3.50 07/01/19 4,800,000
7,700,000 Metropolitan Water CP 3.35 03/06/00 7,700,000
4,750,000 Metropolitan Water District 3.52 07/01/27 4,750,000
9,995,000 Metropolitan Water District COP Series 154 3.49 07/01/27 9,995,000
2,000,000 Metropolitan Water District CP 3.05 10/27/99 2,000,000
8,000,000 Metropolitan Water District CP 3.35 03/06/00 8,000,000
9,700,000 Metropolitan Water District Southern California
Series A 3.40 07/01/28 9,700,000
7,200,000 Metropolitan Water District Southern California
Series SG-128 3.52 07/01/30 7,200,000
5,200,000 Modesto CA MFHR Westdale Commons Apartments LOC -
Federal Home Loan Bank of San Francisco 3.50 12/01/15 5,200,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$7,450,000 Modesto-San Juan-Redding Public Power Agency
Series A22-Regulation D 3.70% 07/01/17 $ 7,450,000
2,900,000 Montebello CA LOC - Bank of America 3.10 04/01/15 2,900,000
2,900,000 Monterey County CA Financing Authority Revenue 3.45 09/01/36 2,900,000
4,900,000 Newport Beach CA Memorial Hospital Series C 3.85 10/01/26 4,900,000
32,505,000 Northern California Public Power Revenue Series SSP 35A 3.56 07/01/28 32,505,000
10,200,000 Oak CA Joint Powers Financing Authority Lease Revenue
Series A-1 3.30 08/01/21 10,200,000
8,800,000 Ontario CA MFHR Park Centre Apartments LOC - Bank of
New York 3.25 08/01/07 8,800,000
4,880,000 Orange County CA Aliso Creek Project Series B 3.40 11/01/05 4,880,000
900,000 Orange County CA Apartment Development Revenue
Series U 3.45 11/01/09 900,000
10,000,000 Orange County CA Apartment Development Series 2 FNMA
Collateralized 3.30 11/15/28 10,000,000
11,500,000 Orange County CA HFA Bear Brand Apartments Project
Series Z LOC - Fuji Bank Limited 3.25 11/01/07 11,500,000
7,249,000 Orange County CA HFA Harbor Pointe Apartment Issue D
LOC - Citibank 3.30 12/01/06 7,249,000
3,200,000 Orange County CA HFA Monarch Bay Apartments LOC -
Mitsubishi Bank Limited 3.25 10/01/07 3,200,000
2,700,000 Orange County CA HFA Niguel Summit Apartment LOC - Bank
of America 3.45 11/01/09 2,700,000
11,000,000 Orange County CA HFA Seaside Meadow Apartments
Series C LOC - Bank of America 3.25 08/01/08 11,000,000
22,800,000 Orange County CA HFA The Lakes Apartments LOC -
Citibank 3.30 12/01/06 22,800,000
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS -
California 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>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$9,900,000 Orange County CA Hidden Hills Series C 3.45% 11/01/09 $ 9,900,000
6,700,000 Orange County CA Housing Authority Oasis Martinique
Series I 3.45 06/15/28 6,700,000
1,000,000 Orange County CA Sanitation District FGIC Insured 3.60 08/01/17 1,000,000
14,302,000 Orange County CA Sanitation District LOC - National
Westminster Bank Plc 3.50 08/01/15 14,302,000
2,800,000 Orange County CA Sanitation District Multiple Credit
Enhancements 3.50 08/01/16 2,800,000
3,400,000 Port Oak CA Revenue Series A-1 Regulation D 3.80 11/01/22 3,400,000
10,500,000 Rancho CA Water Distribution Financing Authority
Revenue Series A FGIC Insured 3.40 08/15/29 10,500,000
25,000,000 Regents of University California CP 3.25 02/08/00 25,000,000
2,245,000 Riverside County CA Asset Leasing Corporation COP
Series 148 3.52 06/01/16 2,245,000
13,148,000 Riverside County CA COP Series B 3.25 12/01/15 13,148,000
1,800,000 Riverside County CA COP Series C 3.20 12/01/15 1,800,000
10,800,000 Riverside County CA COP Series D 3.25 12/01/15 10,800,000
4,740,000 Riverside County CA MFHR Woodcreek Series D 3.25 07/15/18 4,740,000
3,800,000 Sacramento County CA Administration Center & Courthouse
Project LOC - Union Bank of Switzerland 3.55 06/01/20 3,800,000
6,300,000 Sacramento County CA MFHR Hidden Oaks Apartments 3.40 05/15/19 6,300,000
12,000,000 Sacramento County CA MFHR Series C 3.40 04/15/07 12,000,000
5,000,000 Sacramento County CA MFHR Stonecreek Apartments 3.30 11/15/27 5,000,000
50,000,000 Sacramento County CA Series A21 Regulation D 3.70 09/29/00 50,000,000
5,500,000 San Bernardino County CA COP Medical Center Financing
Project 3.10 08/01/26 5,500,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$5,000,000 San Bernardino CA Alta Loma Apartments LOC - Federal
Home Loan Bank of Atlanta 3.40% 02/01/23 $ 5,000,000
1,600,000 San Bernardino County CA COP Housing Authority Revenue 3.25 07/01/15 1,600,000
2,185,000 San Bernardino County CA MFHR LOC - Federal Home Loan
Bank of San Francisco 3.50 05/01/17 2,185,000
4,925,000 San Bernardino County CA MFHR Series A LOC - Federal
Home Loan Bank of San Francisco 3.50 05/01/17 4,925,000
6,115,000 San Bernardino County CA MFHR Green Valley Apartments 3.30 05/15/29 6,115,000
13,000,000 San Diego CA COP Tax Revenue Anticipation Notes
Series B 4.00 07/28/00 13,056,753
8,965,000 San Diego CA CP 3.25 03/07/00 8,965,000
21,915,000 San Diego CA MFHR Nobel Courts 3.40 12/01/22 21,915,000
3,500,000 San Diego CA Multi Family Apartments LOC - Bank of
America 3.50 10/01/15 3,500,000
5,475,000 San Francisco CA City & County Finance Authority
Revenue 3.65 09/01/06 5,475,000
11,410,000 San Francisco CA City & County International Airport
Revenue 3.63 01/01/27 11,410,000
5,750,000 San Francisco CA MFHR Filmore Center Apartments LOC -
Bank of Nova Scotia 3.20 12/01/17 5,750,000
2,200,000 San Francisco CA MFHR Filmore Center Apartments LOC -
Citibank 3.10 12/01/17 2,200,000
3,000,000 San Francisco CA MFHR Filmore Center Apartments LOC -
Citibank 3.20 12/01/17 3,000,000
13,300,000 San Francisco CA MFHR Winterland Project LOC - Citibank 3.30 06/01/06 13,300,000
10,500,000 San Francisco County CA International Airport COP
Series 31 FGIC Insured 3.52 05/01/29 10,500,000
3,055,000 San Jacinto CA USD Series A 3.50 09/01/14 3,055,000
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS -
California 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>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$3,000,000 San Joaquin County CA Tax Revenue Anticipation Notes 3.50% 12/31/99 $ 3,005,198
1,300,000 San Jose CA MFHR Kimberly Woods Apartments LOC - Bank
of America 3.25 11/01/08 1,300,000
1,500,000 San Jose CA Multifamily Housing Revenue AMT 3.45 03/01/32 1,500,000
6,000,000 San Jose CA Redevelopment Agency Project A 3.65 07/01/26 6,000,000
6,800,000 San Jose CA Redevelopment Agency Project B 3.25 07/01/26 6,800,000
7,300,000 San Jose/Santa Clara Clean Water Financing Authority 3.20 11/15/11 7,300,000
2,000,000 San Juan Project Revenue Series B 3.30 07/01/18 2,000,000
2,200,000 San Leandro CA MFHR Haas Avenue Apartments LOC - Bank
of America 3.25 10/01/07 2,200,000
14,645,000 San Mateo County CA JT Powers Authority Lease Revenue
Series 123 FSA Insured 3.49 07/15/29 14,645,000
14,300,000 Santa Clara CA Electric Revenue Series 85B LOC -
National Westminster Bank Plc 3.30 07/01/10 14,300,000
3,495,000 Santa Clara CA Redevelopment Agency Tax Allocation
Series 164 3.52 06/01/23 3,495,000
1,000,000 Santa Clara CA Transit System LOC - Sumitomo Bank
Limited 3.60 06/01/15 1,000,000
1,500,000 Santa Clara CA USD Tax Revenue Anticipation Notes 4.25 10/01/99 1,500,000
6,100,000 Santa Clara County CA Finance Authority Lease Revenue
Project B 3.35 11/15/25 6,100,000
7,300,000 Santa Clara County CA Hospital District Facility
Revenue Series A 3.20 08/01/15 7,300,000
1,000,000 Santa Clara County CA MFHR Foxchase Apartments
Series E FGIC Insured 3.40 11/01/07 1,000,000
2,300,000 Santa Clara County CA Tax Revenue Anticipation Notes 4.50 10/01/99 2,300,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$12,000,000 Simi Valley CA MFHR Community Development Agency
Revenue 3.45% 05/01/10 $ 12,000,000
4,475,000 Simi Valley CA MFHR Creekside Village Apartments LOC -
Bank of America 3.30 07/01/23 4,475,000
3,000,000 Simi Valley CA MFHR Lincoln Wood Ranch LOC - Sumitomo
Bank 3.55 06/01/10 3,000,000
1,655,000 Simi Valley CA Public Finance Lease Revenue 3.65 09/01/15 1,655,000
6,000,000 Southeast Resource Recovery Facility Lease Revenue
Series B AMT 3.35 12/01/18 6,000,000
16,100,000 Southern California Public Power Authority Revenue Palo
Verde Project AMBAC Insured 3.20 07/01/17 16,100,000
11,370,000 Southern California State Public Power Authority Palo
Verde Project Series B AMBAC Insured 3.20 07/01/09 11,370,000
8,575,000 Southern California Waterworks Revenue Series A AMBAC
Insured 3.40 06/01/23 8,575,000
22,005,000 State of California CP 2.75 10/05/99 22,005,000
12,900,000 State of California CP 2.85 10/07/99 12,900,000
6,000,000 State of California CP 3.20 10/05/99 6,000,000
15,000,000 State of California CP 3.20 11/08/99 15,000,000
16,910,000 State of California CP 3.25 11/09/99 16,910,000
16,000,000 State of California CP 3.30 11/08/99 16,000,000
6,300,000 Tracy CA MFHR Sycamore Village Apartments LOC - Bank of
America 3.35 05/01/15 6,300,000
900,000 Turlock CA COP Irrigation Project Series A 3.30 01/01/26 900,000
4,515,000 Turlock CA Irrigation District Revenue Series A LOC -
Canadian Imperial Bank of Commerce 3.30 01/01/14 4,515,000
1,911,000 Tustin CA Improvement Bond 3.50 09/02/13 1,911,000
2,585,000 University of California COP Series 159 3.00 09/01/28 2,585,000
2,000,000 University of California CP 2.80 10/05/99 2,000,000
10,000,000 University of California CP 3.35 01/18/00 10,000,000
4,800,000 Vallejo CA MFHR Highlands 3.50 06/01/07 4,800,000
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS -
California 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>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$5,000,000 Vallejo CA MFHR Revenue Series C 3.40% 01/01/08 $ 5,000,000
8,300,000 Walnut Creek CA MFHR Creekside Drive Apartments LOC -
Bank of America 3.35 04/01/07 8,300,000
8,000,000 West Basin CA MUD COP Phase III 3.15 08/01/29 8,000,000
18,300,000 West Basin CA Municipal Water District Revenue Project
B 3.15 08/01/27 18,300,000
11,900,000 West Covina CA RDA COP Barranca LOC - Citibank 3.25 09/01/05 11,900,000
1,500,000 West Covina CA Redevelopment Agency Lease Revenue 3.25 08/01/18 1,500,000
--------------
TOTAL CALIFORNIA MUNICIPAL SECURITIES $2,151,160,377
(Cost $2,151,160,377)
PUERTO RICO MUNICIPAL SECURITIES - 5.30%
$18,800,000 Puerto Rico Commonwealth Government Development 3.10% 12/01/15 $ 18,800,000
21,100,000 Puerto Rico Commonwealth Highway & Transportation
Authority Series A AMBAC Insured 3.45 07/01/28 21,100,000
20,055,000 Puerto Rico Commonwealth COP Series 87 3.49 07/01/16 20,055,000
3,805,000 Puerto Rico Commonwealth Highway & Transportation
Authority Revenue 2.90 07/01/26 3,805,000
6,090,000 Puerto Rico Commonwealth Highway & Transportation
Authority Revenue 3.40 07/01/15 6,090,000
12,000,000 Puerto Rico Commonwealth Infrastructure Financing
Authority Series 139 3.47 07/01/28 12,000,000
27,115,000 Puerto Rico Commonwealth Series 120 MBIA Insured 3.49 07/01/23 27,115,000
4,850,000 Puerto Rico Electric Power Authority Revenue 3.50 07/01/12 4,850,000
</TABLE>
22
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (CONTINUED)
$4,200,000 Puerto Rico Electric Power Authority Revenue Series C 2.89% 07/01/13 $ 4,200,000
1,715,000 Puerto Rico Public Financing Corporation 3.52 06/01/19 1,715,000
--------------
TOTAL PUERTO RICO MUNICIPAL SECURITIES $ 119,730,000
(Cost $119,730,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,270,890,377)* (Note 1) 100.54% $2,270,890,377
Other Assets and Liabilities, Net (0.54) (12,117,589)
------ --------------
TOTAL NET ASSETS 100.00% $2,258,772,788
====== ==============
- -------------------------------------------------------------------------------------------------------
</TABLE>
+ 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.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
PORTFOLIO OF INVESTMENTS -
Government Money Market Fund SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES - 68.29%
FEDERAL FARM CREDIT BANKS - 13.05%
$5,000,000 Federal Farm Credit Banks 5.15% 10/05/99 $ 4,997,139
3,000,000 Federal Farm Credit Banks 5.20 10/01/99 3,000,000
-----------
$ 7,997,139
FEDERAL HOME LOAN BANKS - 25.94%
$3,000,000 Federal Home Loan Banks 5.20% 10/06/99 $ 2,997,833
2,000,000 Federal Home Loan Banks 5.20 10/08/99 1,997,978
2,000,000 Federal Home Loan Banks 5.26# 01/07/00 1,971,362
1,500,000 Federal Home Loan Banks 5.44 08/10/00 1,428,827
2,000,000 Federal Home Loan Banks 5.14 03/29/00 2,000,691
2,000,000 Federal Home Loan Banks 4.79 02/04/00 1,997,912
1,500,000 Federal Home Loan Banks 4.95 02/17/00 1,499,726
1,000,000 Federal Home Loan Banks 5.26 05/26/00 999,812
1,000,000 Federal Home Loan Banks 5.15 05/19/00 999,559
-----------
$15,893,700
FEDERAL HOME LOAN MORTGAGE CORPORATION - 11.34%
$2,000,000 Federal Home Loan Mortgage Corporation 5.24%# 01/19/00 $ 1,967,978
2,000,000 Federal Home Loan Mortgage Corporation 5.67 02/14/00 1,957,914
1,000,000 Federal Home Loan Mortgage Corporation 5.05# 12/10/99 990,180
1,000,000 Federal Home Loan Mortgage Corporation 5.40# 02/02/00 981,400
700,000 Federal Home Loan Mortgage Corporation 5.51# 08/01/00 667,322
400,000 Federal Home Loan Mortgage Corporation 5.55 08/04/00 381,009
-----------
$ 6,945,803
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.26%
$2,000,000 Federal National Mortgage Association 4.98% 04/20/00 $ 1,999,537
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) Government Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES (CONTINUED)
STUDENT LOAN MORTGAGE ASSOCIATION - 14.70%
$2,000,000 Student Loan Mortgage Association 4.90% 02/10/00 $ 1,999,479
7,000,000 Student Loan Mortgage Association 5.27 11/04/99 6,999,865
-----------
$ 8,999,344
TOTAL SHORT-TERM FEDERAL AGENCIES $41,835,523
(Cost $41,835,524)
REPURCHASE AGREEMENTS - 31.70%
$4,536,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28 10/01/99 4,536,000
11,949,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 11,949,000
2,931,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities
5.20 10/01/99 2,931,000
-----------
TOTAL REPURCHASE AGREEMENTS $19,416,000
(Cost $19,416,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $61,251,523)* (Notes 1 and 3) 99.99% $61,251,523
Other Assets & Liabilities, Net 0.01 8,803
------ -----------
TOTAL NET ASSETS 100.00% $61,260,326
====== ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
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 - 20.12%
$75,000,000 Branch Bank 5.01% 01/10/00 $ 75,001,856
50,000,000 Branch Bank 5.02 01/21/00 49,994,841
25,000,000 Canadian Imperial Bank of Commerce 5.10 02/22/00 24,996,198
139,000,000 Canadian Imperial Bank of Commerce 5.10 04/12/00 138,964,411
145,000,000 Chase Manhattan USA 5.61 01/18/00 145,000,000
173,800,000 Chase Manhattan USA 4.93 10/05/99 173,800,000
150,000,000 Chase USA 5.38 10/01/99 150,000,000
75,000,000 Commerz Bank NY 5.22 05/12/00 74,980,063
25,000,000 Commerz Bank NY 5.09 02/16/00 24,996,812
85,000,000 Commerz Bank NY 5.15 04/20/00 84,977,350
9,550,000 Commerz Bank NY 5.16 05/05/00 9,544,536
149,000,000 Dresdner Bank AG 5.31 12/09/99 149,000,000
49,000,000 Natexis Bank 5.28 12/07/99 49,001,777
80,000,000 National Westminster Plc NY 5.13 03/17/00 79,991,164
50,000,000 National Westminster Plc NY 5.14 04/14/00 49,987,094
50,000,000 Old Kent Bank 4.90 10/06/99 50,000,000
298,500,000 PNC Bank Corporation 5.56 10/01/99 298,500,000
50,000,000 RaboBank Nederland NY 5.03 01/18/00 50,001,458
99,500,000 RaboBank Nederland NY 5.13 03/24/00 99,477,029
378,500,000 Regions Bank 5.63 10/01/99 378,500,000
199,000,000 SouthTrust Bank 5.33 10/14/99 199,000,000
---------------
TOTAL CERTIFICATES OF DEPOSIT $ 2,355,714,589
(Cost $2,355,714,589)
COMMERCIAL PAPER - 58.98%
$105,000,000 Aegon Funding Corporation 5.79% 03/15/00 $ 102,196,675
100,000,000 American Express Centurion Bank 5.32 10/07/99 100,000,000
50,000,000 Apreco Incorporated 5.36 10/08/99 49,947,889
50,000,000 Apreco Incorporated 5.36 11/05/99 49,739,445
111,413,000 Atlantis One Funding 5.78# 02/10/00 109,051,787
146,059,000 Atlantis One Funding 5.77 02/16/00 142,828,419
23,373,000 Atlantis One Funding 5.77 02/15/00 22,859,775
74,000,000 BankAmerica Corporation 5.19# 11/03/99 73,647,945
150,000,000 BankAmerica FSB 5.17# 10/07/99 149,870,750
53,983,000 Barton Capital Corporation 5.18# 10/14/99 53,882,022
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$96,293,000 Barton Capital Corporation 5.35% 10/04/99 $ 96,250,069
50,202,000 Barton Capital Corporation 5.37 10/18/99 50,074,696
47,357,000 Barton Capital Corporation 5.36 10/05/99 47,328,796
80,000,000 Bavaria Universal Funding Corporation 5.28 02/15/00 79,997,053
25,200,000 Bavaria Universal Funding Corporation 5.19# 10/13/99 25,156,404
30,500,000 Bavaria Universal Funding Corporation 5.19# 10/15/99 30,438,441
39,000,000 Bavaria Universal Funding Corporation 5.35 10/01/99 39,000,000
65,000,000 BBL North America Funding 5.35 11/08/99 64,632,931
185,000,000 Bear Stearns Companies 5.29# 03/03/00 180,813,553
109,000,000 Beta Finance Incorporated 6.15 09/14/00 109,000,000
49,300,000 CC (USA) Incorporated 5.81 03/30/00 47,859,879
26,400,000 Certain Funding 5.18# 10/15/99 26,346,818
64,000,000 CitiCorp 5.34 10/07/99 63,943,040
100,000,000 Corporate Asset Funding 5.33 10/08/99 99,896,361
100,000,000 Corporate Receivables Corporation++ 5.17# 10/13/99 99,827,667
80,000,000 Corporate Receivables Corporation++ 5.35 11/15/99 79,465,000
75,000,000 Corporate Receivables Corporation++ 5.34 10/04/99 74,966,625
30,000,000 Corporate Receivables Corporation++ 5.35 11/17/99 29,790,458
100,000,000 Credit Suisse First Boston 5.81 03/02/00 97,530,751
24,000,000 Credit Suisse First Boston 5.81 03/06/00 23,391,887
50,000,000 CXC Incorporated++ 5.33 10/14/99 49,903,764
50,000,000 CXC Incorporated++ 5.33 10/15/99 49,896,361
40,774,000 Delaware Funding Corporation 5.35 11/10/99 40,531,621
50,000,000 Dorada Finance Incorporated 5.81 03/28/00 48,555,570
300,000,000 Dresdner U.S. Finance 5.30 10/06/99 299,779,167
33,072,000 Enterprise Funding Corporation 5.81 03/15/00 32,185,983
75,000,000 Eureka Securitization 5.34 10/21/99 74,777,500
50,000,000 Eureka Securitization 5.34 10/08/99 49,948,083
35,000,000 Eureka Securitization 5.35 11/02/99 34,833,556
16,600,000 First USA Bank 5.99 09/21/00 16,595,359
</TABLE>
27
<PAGE>
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>
COMMERCIAL PAPER (CONTINUED)
$150,000,000 Ford Motor Credit 5.31% 10/07/99 $ 149,867,250
92,387,000 GE Capital International Funding 5.33 11/04/99 91,921,934
30,000,000 GE Capital Services Incorporated 4.88# 11/30/99 29,756,000
50,000,000 GE Capital Services Incorporated 4.87# 01/24/00 49,222,152
128,500,000 GE Capital Services Incorporated 5.33 11/04/99 127,853,146
75,000,000 GE Financial Assurance 5.33 10/13/99 74,866,750
50,676,000 Giro Funding US Corporation 5.28# 11/03/99 50,430,728
139,000,000 Goldman Sachs Group 5.15# 10/19/99 138,642,075
60,000,000 Goldman Sachs Group 6.10 09/25/00 60,000,000
79,000,000 Goldman Sachs Group 5.63# 02/03/00 77,457,031
49,000,000 Grand Funding Corporation 5.44# 01/10/00 48,252,151
85,000,000 Grand Funding Corporation 5.45# 01/20/00 83,571,646
51,896,000 Greenwich Funding Corporation++ 4.85# 01/10/00 51,189,854
120,673,000 Greenwich Funding Corporation++ 5.35 10/06/99 120,583,333
100,000,000 JP Morgan & Company 5.07# 12/06/99 99,070,500
78,044,000 KBC Commercial Paper Trust 5.25 10/13/99 77,908,984
125,000,000 Moat Funding LLC 5.73# 05/09/00 120,603,021
35,000,000 Mont Blanc Capital 5.36 10/14/99 34,932,256
95,716,000 Monte Rosa Capital Corporation 5.36 10/22/99 95,416,728
37,598,000 Monte Rosa Capital Corporation 5.35 10/07/99 37,564,475
49,000,000 Monte Rosa Capital Corporation 5.36 10/14/99 48,905,158
48,000,000 Monte Rosa Capital Corporation 5.87 01/21/00 47,123,414
100,000,000 Morgan Stanley/Dean Witter 5.45# 01/19/00 98,334,722
100,000,000 Moriarity LTD 5.35 11/10/99 99,405,556
70,000,000 Moriarity LTD 5.35 10/20/99 69,802,347
200,000,000 Moriarity LTD 5.29# 11/02/99 199,059,555
50,000,000 National City Corporation 5.30 10/29/99 49,793,889
31,000,000 Old Line Funding Corporation 5.81 01/27/00 30,409,640
16,000,000 Perry Funding Corporation 5.87 03/08/00 15,585,188
28,257,000 Pooled Accounts Receivable Capital 5.40 11/08/99 28,095,935
40,000,000 Salomon Smith Barney Holdings 5.42# 01/18/00 39,343,578
85,000,000 Salomon Smith Barney Holdings 5.15# 10/05/99 84,951,361
75,000,000 Salomon Smith Barney Holdings 5.73 02/16/00 73,352,625
50,000,000 Salomon Smith Barney Holdings 5.78 03/09/00 48,715,557
70,000,000 Sheffield Receivables Corporation++ 5.36 10/04/99 69,968,733
54,200,000 Sheffield Receivables Corporation++ 5.36 10/07/99 54,151,581
35,000,000 Sheffield Receivables Corporation++ 5.36 10/14/99 34,932,256
100,000,000 Sigma Finance Corporation 5.20# 10/12/99 99,841,264
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$71,750,000 Sigma Finance Corporation 5.40% 11/05/99 $ 71,373,313
100,000,000 Special Purpose A/R Corporation 5.54 03/09/00 100,000,000
77,744,000 Sydney Capital Corporation 5.37 10/13/99 77,604,838
67,460,000 Sydney Capital Corporation 5.37 10/21/99 67,258,744
38,985,000 Sydney Capital Corporation 5.35 10/14/99 38,909,683
70,986,000 Thames Asset Global Securitization Incorporated++ 5.38 11/10/99 70,561,662
69,077,000 Thames Asset Global Securitization Incorporated++ 5.18# 10/06/99 69,027,303
55,006,000 Thames Asset Global Securitization Incorporated++ 5.18# 10/15/99 54,895,193
75,000,000 Trident Capital Finance 5.36 10/14/99 74,854,833
39,171,000 Triple A One Funding 5.34 10/06/99 39,141,948
29,044,000 Triple A One Funding 5.34 11/12/99 28,863,056
238,500,000 UBS Finance Incorporated 5.63 10/01/99 238,500,000
100,000,000 Variable Funding Corporation++ 5.23# 10/07/99 99,912,833
100,000,000 WCP Funding 5.81 02/03/00 97,982,640
50,000,000 WCP Funding 5.33 10/12/99 49,918,570
---------------
TOTAL COMMERCIAL PAPER $ 6,906,429,089
(Cost $6,906,429,089)
CORPORATE BONDS & NOTES - 9.33%
$65,000,000 Abbey National Treasury Services 5.13% 05/04/00 $ 64,974,071
90,000,000 Abbey National Treasury Services 5.65 07/24/00 89,964,919
75,000,000 Beta Finance Incorporated 5.26 03/06/00 75,000,000
75,000,000 Credit Bank 5.75 07/14/00 75,000,000
75,000,000 FCC National Bank 5.14 03/22/00 74,988,060
80,000,000 First Union Bank 5.80 07/03/00 80,000,000
9,585,000 Ford Motor 8.38 01/15/00 9,667,709
140,000,000 Goldman Sachs Group LP 6.00 08/07/00 140,000,000
60,000,000 IBM Credit Corporation 4.67 10/29/99 59,998,044
2,000,000 John Deere Capital Corporation 5.73 07/13/00 1,999,140
21,445,000 Salomon Incorporated 6.70 07/05/00 21,546,284
55,000,000 Sigma Finance Incorporated 5.19 02/25/00 55,000,000
75,000,000 Sigma Finance Incorporated 6.10 09/22/00 75,000,000
80,000,000 Sigma Finance Incorporated 5.23 03/29/00 80,000,000
</TABLE>
29
<PAGE>
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)
$100,000,000 Sigma Finance Incorporated 5.44% 05/24/00 $ 100,000,000
20,000,000 Texaco Capital Corporation 5.11 05/03/00 19,992,046
70,000,000 US Bank 5.92 09/20/00 69,946,210
---------------
TOTAL CORPORATE BONDS & NOTES $ 1,093,076,483
(Cost $1,093,076,483)
SHORT-TERM FEDERAL AGENCIES - 0.21%
$10,000,000 Federal Home Loan Bank 5.26% 05/26/00 $ 9,998,124.00
7,500,000 Federal Home Loan Bank 4.79 02/04/00 7,492,170
4,300,000 Federal Home Loan Mortgage Corporation 5.51# 08/01/00 4,099,267
3,000,000 Federal National Mortgage Association 4.98 04/20/00 2,999,305
---------------
TOTAL SHORT-TERM FEDERAL AGENCIES $ 24,588,866
(Cost $24,588,866)
VARIABLE AND FLOATING RATE BONDS - 10.33%
$70,000,000 American Express Centurion Bank 5.38% 12/14/99 $ 70,000,000
75,000,000 American Express Centurion Bank 5.45 04/24/00 75,000,000
100,000,000 BankAmerica Corporation 5.42 03/16/00 99,991,010
70,000,000 BankAmerica Corporation 5.41 04/05/00 69,985,905
50,000,000 Comerica Bank Detroit 5.43 09/25/00 49,966,149
25,000,000 Comerica Bank Detroit 5.33 02/08/00 24,996,050
150,000,000 Comerica Bank Detroit 5.37 01/10/00 149,987,740
100,000,000 Deutsche Bank AG 5.39 04/17/00 99,968,112
140,000,000 Goldman Sachs Group LP 5.47 09/15/00 139,986,612
80,000,000 KeyBank N.A. 5.38 10/13/99 79,998,924
150,000,000 KeyBank N.A. 5.38 10/14/99 149,999,478
125,000,000 KeyBank N.A. 5.33 10/04/99 124,999,599
75,000,000 Special Purpose A/R Corporation 5.53 02/24/00 75,000,000
---------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 1,209,879,579
(Cost $1,209,879,579)
</TABLE>
30
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 0.57%
$38,309,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28% 10/01/99 $ 38,309,000
10,000,000 HSBC Securities Incorporated Repurchase Agreement -
102% Collateralized by U.S. Government Securities 5.28 10/01/99 10,000,000
3,647,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 3,647,000
14,855,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 14,855,000
---------------
TOTAL REPURCHASE AGREEMENTS $ 66,811,000
(Cost $66,811,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $11,656,499,606)* (Note 1) 99.54% $11,656,499,606
Other Assets and Liabilities, Net 0.46 53,965,211
------ ---------------
TOTAL NET ASSETS 100.00% $11,710,464,817
====== ===============
- --------------------------------------------------------------------------------------------------------
</TABLE>
++ 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.
31
<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>
32
<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>
33
<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>
34
<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>
35
<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>
36
<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>
+ 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.
The accompanying notes are an integral part of these financial statements.
37
<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>
38
<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>
39
<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>
40
<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>
++ 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.
41
<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>
42
<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>
# 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.
43
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Money Market Funds SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA GOVERNMENT
TAX-FREE MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $19,416,000 for the Government
Money Market Fund, $66,811,000 for
the Money Market Fund, $47,518,000
for the Prime Money Market Fund, and
$950,991,000 for the Treasury Plus
Money Market Fund) $2,270,890,377 $ 61,251,523
Cash 1,806,803 12,714
RECEIVABLES
Interest 11,894,641 181,626
Investment securities sold 8,350,000 0
Organization expenses, net of
amortization 0 0
Prepaid expenses 974 0
TOTAL ASSETS 2,292,942,795 61,445,863
LIABILITIES
Payables:
Investment securities purchased 27,137,700 0
Distribution to shareholders 4,653,484 71,674
Due to distributor (Note 2) 975,503 1,883
Due to adviser (Note 2) 1,168,132 26,122
Other 235,188 85,858
TOTAL LIABILITIES 34,170,007 185,537
TOTAL NET ASSETS $2,258,772,788 $ 61,260,326
NET ASSETS CONSIST OF:
Paid-in capital $2,259,327,879 $ 61,260,326
Undistributed net realized gain (loss)
on investments (555,091) 0
TOTAL NET ASSETS $2,258,772,788 $ 61,260,326
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A(1) $2,258,772,788 $ 61,260,326
Shares outstanding - Class A(1) 2,259,332,692 61,261,540
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A
Shares outstanding - Administrative
Class N/A N/A
Net asset value and offering price per
share -
Administrative Class N/A N/A
Net assets - Class E N/A N/A
Shares outstanding - Class E N/A N/A
Net asset value and offering price per
share - Class E N/A N/A
Net assets - Institutional Class N/A N/A
Shares outstanding - Institutional Class N/A N/A
Net asset value and offering price per
share -
Institutional Class N/A N/A
Net assets - Class S/Service Class N/A N/A
Shares outstanding - Class S/Service
Class N/A N/A
Net asset value and offering price per
share -
Class S/Service Class N/A N/A
- ----------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
SEPTEMBER 30, 1999 (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY NATIONAL PRIME TREASURY PLUS
MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $19,416,000 for the Government
Money Market Fund, $66,811,000 for
the Money Market Fund, $47,518,000
for the Prime Money Market Fund, and
$950,991,000 for the Treasury Plus
Money Market Fund) $11,656,499,606 $123,804,549 $3,565,406,704 $2,146,925,968
Cash 1,995 1,581,805 52,344 12,875
RECEIVABLES
Interest 62,479,655 786,005 21,709,051 5,884,623
Investment securities sold 0 0 0 0
Organization expenses, net of
amortization 2,995 0 13,636 25,179
Prepaid expenses 0 0 0 0
TOTAL ASSETS 11,718,984,251 126,172,359 3,587,181,735 2,152,848,645
LIABILITIES
Payables:
Investment securities purchased 0 0 0 0
Distribution to shareholders 199,214 42,935 5,770,118 5,055,097
Due to distributor (Note 2) 1,290,053 3,792 123,517 98,998
Due to adviser (Note 2) 6,492,482 56,598 1,171,173 795,190
Other 537,685 116,589 271,484 480,882
TOTAL LIABILITIES 8,519,434 219,914 7,336,292 6,430,167
TOTAL NET ASSETS $11,710,464,817 $125,952,445 $3,579,845,443 $2,146,418,478
NET ASSETS CONSIST OF:
Paid-in capital $11,710,829,082 $125,963,410 $3,579,852,422 $2,146,418,478
Undistributed net realized gain (loss)
on investments (364,265) (10,965) (6,979) 0
TOTAL NET ASSETS $11,710,464,817 $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(1) $10,300,342,017 $104,759,240 $ 483,356,697 $ 586,180,875
Shares outstanding - Class A(1) 10,299,962,747 104,763,434 483,463,122 586,222,928
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A $ 361,365,090 $ 74,766,729
Shares outstanding - Administrative
Class N/A N/A 361,308,015 74,752,284
Net asset value and offering price per
share -
Administrative Class N/A N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A N/A $ 628,328,155
Shares outstanding - Class E N/A N/A N/A 628,322,078
Net asset value and offering price per
share - Class E N/A N/A N/A $ 1.00
Net assets - Institutional Class N/A $ 21,193,205 $1,236,186,946 $ 567,988,280
Shares outstanding - Institutional Class N/A 21,199,975 1,236,267,382 568,123,381
Net asset value and offering price per
share -
Institutional Class N/A $ 1.00 $ 1.00 $ 1.00
Net assets - Class S/Service Class $ 1,410,122,800 N/A $1,498,936,710 $ 289,154,439
Shares outstanding - Class S/Service
Class 1,410,075,428 N/A 1,499,061,880 289,173,661
Net asset value and offering price per
share -
Class S/Service Class $ 1.00 N/A $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
Money Market Funds ENDED SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Interest $35,769,513 $ 1,474,120
TOTAL INVESTMENT INCOME 35,769,513 1,474,120
EXPENSES (NOTE 2)
Advisory fees 5,867,039 72,943
Administration fees 1,566,956 38,701
Custody fees 207,119 4,873
Shareholder servicing fees 3,527,958 72,943
Portfolio accounting fees 266,030 31,429
Transfer agency fees 852,762 18,963
Distribution fees 0 0
Organization costs 0 0
Legal and audit fees 97,350 2,593
Registration fees 48,791 15,957
Directors' fees 387 451
Shareholder reports 65,230 30,267
Other 51,334 914
TOTAL EXPENSES 12,550,956 290,034
Less:
Waived fees and reimbursed expenses (4,907,048) (71,281)
Net Expenses 7,643,908 218,753
NET INVESTMENT INCOME 28,125,605 1,255,367
Net realized gain (loss) on sale of
investments (263,738) 0
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $27,861,867 $ 1,255,367
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 1999 (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY NATIONAL PRIME TREASURY PLUS
MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $283,606,138 $ 1,821,019 $95,329,438 $58,344,854
TOTAL INVESTMENT INCOME 283,606,138 1,821,019 95,329,438 58,344,854
EXPENSES (NOTE 2)
Advisory fees 21,991,896 167,784 4,624,393 3,009,213
Administration fees 7,332,287 75,473 2,458,922 1,571,067
Custody fees 920,919 9,410 308,911 201,017
Shareholder servicing fees 16,171,387 104,920 2,495,407 2,258,194
Portfolio accounting fees 1,130,428 42,031 400,784 271,751
Transfer agency fees 5,459,450 33,675 687,607 568,488
Distribution fees 4,838,029 0 0 0
Organization costs 2,074 3,689 6,288 11,608
Legal and audit fees 354,660 2,642 142,841 115,050
Registration fees 564,833 3,340 73,301 62,703
Directors' fees 563 375 214 943
Shareholder reports 452,840 48,250 28,212 131,804
Other 156,253 1,423 62,429 41,901
TOTAL EXPENSES 59,375,619 493,012 11,289,309 8,243,739
Less:
Waived fees and reimbursed expenses (13,805,083) (157,389) (3,490,553) (2,388,429)
Net Expenses 45,570,536 335,623 7,798,756 5,855,310
NET INVESTMENT INCOME 238,035,602 1,485,396 87,530,682 52,489,544
Net realized gain (loss) on sale of
investments 0 51 (6,979) (2)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $238,035,602 $ 1,485,447 $87,523,703 $52,489,542
- ------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA 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 $ 28,125,605 $ 52,641,127
Net realized gain (loss) on sale of
investments (263,738) (121,194)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 27,861,867 52,519,933
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (28,125,605) (52,641,127)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold -
Class A(1) 2,167,271,072 3,191,791,394
Reinvestment of dividends -
Class A(1) 24,256,502 45,918,774
Cost of shares redeemed - Class A(1) (2,178,613,925) (3,110,347,456)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(1) 12,913,649 127,362,712
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A
Proceeds from shares sold -
Class S/Service Class N/A N/A
Reinvestment of dividends -
Class S/Service Class N/A N/A
Cost of shares redeemed -
Class S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS 12,649,911 127,241,518
NET ASSETS:
Beginning net assets 2,246,122,877 2,118,881,359
ENDING NET ASSETS $2,258,772,788 $2,246,122,877
- -------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND 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 $ 1,255,367 $ 3,008,619 $ 238,035,602 $ 403,472,313
Net realized gain (loss) on sale of
investments 0 5,410 (18,538) 166,441
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 1,255,367 3,014,029 238,017,064 403,638,754
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,255,367) (3,008,619) (213,898,417) (359,769,107)
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A
CLASS S/SERVICE CLASS N/A N/A (24,137,185) (43,703,206)
From net realized gain on sale of
investments
CLASS A 0 (5,410) 0 0
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A
CLASS S/SERVICE CLASS N/A N/A 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold -
Class A(1) 110,806,760 211,809,887 2,814,654,711 5,518,795,093
Reinvestment of dividends -
Class A(1) 982,612 1,726,275 245,238,072 351,157,967
Cost of shares redeemed - Class A(1) (109,365,639) (231,567,166) (1,897,346,133) (3,443,871,290)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(1) 2,423,733 (18,031,004) 1,162,546,650 2,426,081,770
Proceeds from shares sold -
Administrative Class N/A N/A N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A N/A N/A
Proceeds from shares sold - Class E N/A N/A N/A N/A
Reinvestment of dividends - Class E N/A N/A N/A N/A
Cost of shares redeemed - Class E N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A N/A
Proceeds from shares sold -
Class S/Service Class N/A N/A 1,436,103,846 2,191,020,851
Reinvestment of dividends -
Class S/Service Class N/A N/A 27,679,726 43,441,848
Cost of shares redeemed -
Class S/Service Class N/A N/A (1,212,248,090) (2,027,066,523)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A 251,535,482 207,396,176
INCREASE (DECREASE) IN NET ASSETS 2,423,733 (18,031,004) 1,414,063,594 2,633,644,387
NET ASSETS:
Beginning net assets 58,836,593 76,867,597 10,296,401,223 7,662,756,836
ENDING NET ASSETS $ 61,260,326 $ 58,836,593 $11,710,464,817 $10,296,401,223
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
49
<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)
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS 0 0
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold -
Class A(1) 159,343,901 234,230,273
Reinvestment of dividends -
Class A(1) 1,194,654 1,622,320
Cost of shares redeemed - Class A(1) (120,729,269) (230,195,239)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(1) 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 -
Class S/Service Class N/A N/A
Reinvestment of dividends -
Class S/Service Class N/A N/A
Cost of shares redeemed -
Class S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS 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>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
50
<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)
CLASS S/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)
CLASS S/SERVICE CLASS 0 (36,688) 0 (27,945)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold -
Class A(1) 1,386,504,174 3,566,811,184 1,106,353,627 1,880,148,228
Reinvestment of dividends -
Class A(1) 2,696,837 7,603,683 2,680,280 4,574,374
Cost of shares redeemed - Class A(1) (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(1) (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 -
Class S/Service Class 2,096,987,938 2,945,429,480 1,843,924,737 3,847,684,188
Reinvestment of dividends -
Class S/Service Class 24,601,508 20,604,434 3,941,144 5,368,260
Cost of shares redeemed -
Class S/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 - CLASS S/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 $ 2,146,418,478 $2,170,334,965
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET FUND
CLASS A
--------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1999 1999 1998 1997 (1)
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.02 0.03 0.01
Net realized gain (loss) on investments 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 0.01 0.02 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.02) (0.03) (0.01)
Distributions from net realized gain 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.02) (0.03) (0.01)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
=========== =========== =========== ===========
TOTAL RETURN (NOT ANNUALIZED) 1.20% 2.49% 2.91% 1.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $2,258,773 $2,246,123 $2,118,881 $1,384,310
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to
average net assets 2.38% 2.46% 2.85% 2.72%
- ----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 1.06% 1.03% 1.05% 1.03%
Ratio of net investment income (loss) to
average net assets prior to waived fees
and reimbursed expenses 1.97% 2.08% 2.45% 2.34%
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT
MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY
MARKET FUND (CONT.) GOVERNMENT MONEY MARKET FUND (2)
CLASS A (CONT.) CLASS A
------------------------- -------------------------------------------------------
(UNAUDITED)
NINE MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, DEC. 31, SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1996 (3) 1995 1999 1999 1998 1997 (1) 1996
<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 0.03 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 0.00 0.00
----------- ----------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.03 0.02 0.05 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.03) (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 0.00 0.00
----------- ----------- ------- ------- ------- ------- -------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (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 $1.00 $1.00
=========== =========== ======= ======= ======= ======= =======
TOTAL RETURN (NOT
ANNUALIZED) 2.04% 3.23% 2.17% 4.68% 4.93% 2.32% 4.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $1,161,431 $1,031,004 $61,260 $58,837 $76,868 $60,224 $65,036
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.75% 0.75% 0.75% 0.75% 0.77%
Ratio of net investment
income to average net
assets 2.69% 3.18% 4.30% 4.59% 4.83% 4.62% 4.74%
- ---------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.02% 1.01% 0.99% 0.94% 1.00% 1.00% 0.80%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.32% 2.82% 4.06% 4.40% 4.58% 4.37% 4.71%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT
MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS A
-------------------------------------
(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) 2.23% 4.79% 5.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $10,300,342 $9,137,812 $6,711,584
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.75% 0.75% 0.75%
Ratio of net investment income to average net
assets 4.41% 4.67% 4.95%
- -----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.00% 0.93% 0.93%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 4.16% 4.49% 4.77%
- -----------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS A (CONT.) CLASS S
----------------------------------- -----------------------------------------------
(UNAUDITED)
SIX MONTHS NINE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, DEC. 31, SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1997 (1) 1996 (2) 1995 1999 1999 1998 1997 (1)
<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 0.03 0.05 0.02 0.04 0.04 0.02
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 0.03 0.05 0.02 0.04 0.04 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.03) (0.05) (0.02) (0.04) (0.04) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.05) (0.02) (0.04) (0.04) (0.02)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 2.36% 3.55% 5.34% 1.88% 4.10% 4.37% 2.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $4,640,148 $3,799,908 $2,892,621 $1,410,123 $1,158,589 $951,172 $707,781
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.75% 0.75% 0.75% 1.42% 1.42% 1.42% 1.43%
Ratio of net investment
income to average net
assets 4.71% 4.66% 5.13% 3.74% 4.01% 4.28% 4.02%
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.90% 0.88% 0.83% 1.66% 1.62% 1.62% 1.56%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.56% 4.53% 5.05% 3.50% 3.81% 4.08% 3.89%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CLASS S (CONT.)
----------------------
NINE MONTHS PERIOD
ENDED ENDED
SEPT. 30, DEC. 31,
1996 (2) 1995 (3)
<S> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.03
Net realized gain (loss) on investments 0.00 0.00
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.03)
Distributions from net realized gain 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (0.03) (0.03)
--------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
========= =========
TOTAL RETURN (NOT ANNUALIZED) 3.03% 2.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $699,231 $618,899
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.42% 1.43%
Ratio of net investment income to average net assets 3.98% 4.40%
- ------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 1.55% 1.53%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 3.85% 4.30%
- ------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
CLASS A
-------------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1999 1999 1998 1997 (1) 1996 (4)
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
----------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.01 0.03 0.03 0.01 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00
----------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.01 0.03 0.03 0.01 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.01) (0.03) (0.03) (0.01) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00
----------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.03) (0.03) (0.01) (0.01)
----------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
=========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 1.28% 2.60% 2.93% 1.36% 1.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $104,759 $64,950 $59,293 $35,253 $4,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.70% 0.70% 0.70%(5) 0.64%(5) 0.62%(5)
Ratio of net investment
income to average net
assets 2.55% 2.56% 2.87%(5) 2.68%(5) 2.71%(5)
- --------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.95% 0.97% 1.13%(5) 1.58%(5) 3.56%(5)
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.30% 2.29% 2.44%(5) 1.74%(5) (0.23)%(5)
- --------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
(CONT.)
INSTITUTIONAL CLASS
-------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1999 1999 1998 (2)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.03 0.01
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.01 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.03) (0.01)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.03) (0.01)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
========== ========== ==========
TOTAL RETURN (NOT ANNUALIZED) 1.49% 3.01% 0.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $21,193 $23,929 $54,302
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets 2.93% 3.02% 3.05%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.65% 0.62% 0.52%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 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) 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3)
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 (1) 1996 (4)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 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) 2.22% 4.83% 5.24% 2.49% 5.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $483,357 $577,213 $592,317 $277,044 $264,900
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.75% 0.72% 0.61% 0.55% 0.55%
Ratio of net investment
income to average net
assets 4.39% 4.71% 5.11% 4.95% 5.06%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.80% 0.78% 0.83% 0.75% 0.68%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.34% 4.65% 4.89% 4.75% 4.93%
- ------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
59
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3) (CONT.)
ADMINISTRATIVE CLASS
----------------------------------------
(UNAUDITED)
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1999 1999 1998 (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) 0.02 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) 2.38% 5.12% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $361,365 $467,151 $600,975
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 4.68% 5.02% 5.34%
- ---------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.63% 0.59% 0.55%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 4.50% 4.86% 5.19%
- ---------------------------------------------------------------------------------------------
</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 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (3) (CONT.)
INSTITUTIONAL CLASS
------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1999 1999 1998 1997 (1) 1996 1995 (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) 0.02 0.05 0.05 0.03 0.05 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
------------ ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.03) (0.05) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
------------ ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.03) (0.05) (0.01)
------------ ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============ ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 2.48% 5.31% 5.58% 2.64% 5.39% 5.65%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $1,236,187 $1,704,093 $802,511 $538,195 $423,959 $30,606
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.89% 5.12% 5.46% 5.25% 5.33% 5.67%
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.45% 0.39% 0.41% 0.38% 0.60% 0.69%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.69% 4.98% 5.30% 5.12% 4.98% 5.24%
- ------------------------------------------------------------------------------------------------------
</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 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (2)(CONT.)
SERVICE 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) 2.38% 5.10% 5.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,498,937 $1,114,456 $653,693
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45% 0.45%
Ratio of net investment income to average net
assets 4.70% 4.93% 5.24%
- -------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.70% 0.68% 0.65%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 4.45% 4.70% 5.04%
- -------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) 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.
(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.
62
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (2)(CONT.) TREASURY PLUS MONEY MARKET FUND (3)
SERVICE CLASS (CONT.) CLASS A
------------------------------------ ------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31,
1997 (1) 1996 1995 1999 1999
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
------------ ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.05 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00
------------ ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.05 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (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 (0.03) (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) 2.54% 5.19% 5.60% 2.13% 4.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $626,105 $740,760 $614,101 $586,181 $543,903
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.45% 0.41% 0.65% 0.65%
Ratio of net investment
income to average net
assets 5.04% 5.14% 5.47% 4.20% 4.50%
- --------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.60% 0.62% 0.68% 0.81% 0.79%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.89% 4.97% 5.20% 4.04% 4.36%
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) 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.
(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.
63
<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.)
CLASS A (CONT.)
-------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
MARCH 31, MARCH 31, SEPT. 30,
1998 1997 (1) 1996 (4)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.02 0.05
Net realized gain (loss) on investments 0.00 0.00 0.00
----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.02) (0.05)
Distributions from net realized gain 0.00 0.00 0.00
----------- ----------- -----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02) (0.05)
----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
=========== =========== ===========
TOTAL RETURN (NOT ANNUALIZED) 5.06% 2.42% 4.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $381,594 $66,486 $53,706
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.62% 0.55% 0.55%
Ratio of net investment income to average net
assets 4.93% 4.81% 4.96%
- -------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.85% 0.75% 0.67%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 4.70% 4.61% 4.84%
- -------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND OPERATED AS 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (3) (CONT.)
ADMINISTRATIVE CLASS CLASS E
----------------------------------- -----------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, MARCH 31,
1999 1999 1998 (2) 1999 1999
<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 0.02 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 0.02 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.02) (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) (0.02) (0.02) (0.05)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 2.23% 4.85% 1.52% 2.13% 4.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $74,767 $100,109 $176,942 $628,328 $584,451
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.43% 0.40% 0.65% 0.65%
Ratio of net investment
income to average net
assets 4.40% 4.80% 5.17% 4.20% 4.54%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.71% 0.63% 0.56% 0.81% 0.78%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.14% 4.60% 5.01% 4.04% 4.41%
- ------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND OPERATED AS 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (2)(CONT.)
CLASS E (CONT.)
------------------------
PERIOD
YEAR ENDED ENDED
MARCH 31, MARCH 31,
1998 1997 (3)
<S> <C> <C>
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.00
Net realized gain (loss) on investments 0.00 0.00
----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.00
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) 0.00
Distributions from net realized gain 0.00 0.00
----------- -----------
TOTAL FROM DISTRIBUTIONS (0.05) 0.00
----------- -----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
=========== ===========
TOTAL RETURN (NOT ANNUALIZED) 4.99% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $715,554 $820,657
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65%
Ratio of net investment income to average net assets 4.87% 4.86%
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.84% 0.88%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.68% 4.63%
- ---------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN
JULY 1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET
FUND, AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES
OF STAGECOACH FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996
REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
66
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2)(CONT.)
INSTITUTIONAL CLASS
-----------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1999 1999 1998 1997 (1) 1996 1995 (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) 0.02 0.05 0.05 0.03 0.05 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.03) (0.05) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.03) (0.05) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 2.33% 5.04% 5.41% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $567,988 $493,987 $501,494 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.59% 4.92% 5.28% 5.11% 5.21% 5.42%
- -----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.45% 0.41% 0.40% 0.39% 0.59% 0.69%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.39% 4.76% 5.13% 4.97% 4.87% 4.99%
- -----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN
JULY 1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET
FUND, AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES
OF STAGECOACH FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996
REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY 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.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
67
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (2)(CONT.)
SERVICE CLASS
------------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
SEPT. 30, MARCH 31,
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) 2.23% 4.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $289,154 $447,886
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45%
Ratio of net investment income to average net assets 4.39% 4.70%
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.71% 0.70%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.13% 4.45%
- ---------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN
JULY 1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET
FUND, AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES
OF STAGECOACH FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996
REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY 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.
68
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2)(CONT.)
SERVICE CLASS (CONT.)
----------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1998 1997 (1) 1996 1995
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.02 0.05 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.02 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.02) (0.05) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02) (0.05) (0.05)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 5.20% 2.47% 5.03% 5.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $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% 0.42%
Ratio of net investment
income to average net
assets 5.07% 4.91% 4.98% 5.32%
- -----------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.65% 0.61% 0.60% 0.66%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.87% 4.75% 4.83% 5.08%
- -----------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN
JULY 1995, THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET
FUND, AND ON SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES
OF STAGECOACH FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996
REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY 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.
69
<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 California Tax-Free Money Market, Government Money
Market, Money Market, National Tax-Free Money Market, Prime Money Market and
Treasury Plus Money Market Funds (each, a "Fund", collectively, the "Funds"),
each with the exception of the California Tax-Free Money Market Fund, a
diversified series of the Company. The California Tax-Free Money Market Fund is
a non-diversified series of the Company.
Prior to August 1, 1998 the California Tax-Free Money Market, Government Money
Market, Money Market, National Tax-Free Money Market, Prime Money Market and
Treasury Plus Money Market Funds were known as the "California Tax-Free Money
Market Mutual", "Government Money Market Mutual", "Money Market Mutual",
"National Tax-Free Money Market Mutual", "Prime Money Market Mutual" and
"Treasury Money Market Mutual" Funds, respectively.
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 "feeder" funds 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 Money Market Fund offers Class A and Class S shares. The Prime Money
Market and Treasury Plus Money Market Funds offer Class A, Administrative Class,
Institutional Class, and Service Class shares. The Treasury Plus Money Market
Fund also offers Class E shares. The National Tax-Free Money Market Fund offers
Class A and Institutional Class shares. The California Tax-Free Money Market and
Government Money Market Funds offer a single class of shares. The separate
classes of shares differ principally in the applicable sales charges (if any),
distribution fees, shareholder servicing fees and transfer agency fees.
Shareholders of each class also bear certain expenses that pertain to that
particular class. All shareholders bear the common expenses of the Fund and earn
income from the portfolio pro rata based on the average daily net assets of
70
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
each class, without distinction between share classes. Dividends are determined
separately for each class based on income and expenses allocable to each class.
Realized gains are allocated to each class pro rata based on the net assets of
each class on the date of distribution. No class has preferential dividend
rights. Differences in per share dividend rates generally result from the
relative weightings of pro rata income and realized gain and loss allocations
and from differences in separate class expenses, including distribution,
shareholder servicing and transfer agency fees.
The following significant accounting policies are consistently followed by the
Company in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Funds invest only in securities with remaining maturities not exceeding
397 days (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
71
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and to take action to obtain additional collateral as necessary to maintain
market value equal to or greater than the resale price. The repurchase
agreements held by the Funds are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Any distributions to shareholders from net
realized capital gains are declared and distributed at least annually.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
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
following Funds had estimated net capital loss carryforwards at December 31,
1998:
<TABLE>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARDS
- --------------------------------------------------------------------------
<S> <C> <C>
California Tax-Free Money Market Fund 2002 $ 92,680
2003 31,569
2005 144,877
2006 25,929
Money Market Fund 2003 345,728
National Tax-Free Money Market Fund 2003 6,351
2004 437
2006 3,692
</TABLE>
Any loss carryforwards from Pacifica and Overland are included in the Funds'
carryforwards as shown above. The Company's Board of Directors intends to offset
net capital gains with each capital loss carryforward, and no capital gain
distribution shall be made until each such carryforward has been fully utilized
or expires.
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and with
the various states are amortized on a straight-line basis over 60 months from
the date each Fund commenced operations.
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 the following annual rates:
<TABLE>
% OF AVERAGE DAILY
FUND NET ASSETS
- ---------------------------------------------------------------------
<S> <C>
California Tax-Free Money Market Fund 0.50
Government Money Market Fund 0.25
Money Market Fund 0.40
National Tax-Free Money Market Fund 0.30
Prime Money Market Fund 0.25
Treasury Plus Money Market Fund 0.25
</TABLE>
On August 1, 1998, Wells Capital Management Incorporated ("WCM"), a
wholly-owned subsidiary of WFB, began acting as investment sub-advisor to the
Funds. WCM is entitled to receive from WFB, as compensation for its sub-
advisory services to the Funds, a monthly fee at the annual rate of 0.05% of the
Funds' average daily net assets up to $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.
73
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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 each 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 Government Money Market, Money Market,
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 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
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
provided transfer agency services for the Funds. Under the transfer agency
contract, WFB was entitled to receive transfer agency fees at the following
annual rates:
<TABLE>
% OF AVERAGE DAILY NET ASSETS
-------------------------------------------------------------------
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A* CLASS CLASS E CLASS CLASS
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
California Tax-Free Money Market
Fund 0.10 N/A N/A N/A N/A
Government Money Market Fund 0.10 N/A N/A N/A N/A
Money Market Fund 0.10 N/A N/A N/A 0.10
National Tax-Free Money Market
Fund 0.10 N/A N/A 0.02 N/A
Prime Money Market Fund 0.10 0.02 N/A 0.02 0.10
Treasury Plus Money Market Fund 0.10 0.02 0.10 0.02 0.10
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The transfer agency fees paid on behalf of the Funds for the six months ended
September 30, 1999 were as follows:
<TABLE>
% OF AVERAGE DAILY NET ASSETS
-------------------------------------------------------------------
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $5,049,893 N/A N/A N/A $ 409,557
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>
Transfer agency fees for the California Tax-Free Money Market and Government
Money Market Funds for the six months ended September 30, 1999, are disclosed in
the Statement of Operations.
75
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The Company has entered into a contract on behalf of the Funds with WFB,
whereby WFB has agreed to provide shareholder services for the Funds. Pursuant
to the contract, WFB is entitled to receive shareholder servicing fees at the
following annual rates:
<TABLE>
% OF AVERAGE DAILY NET ASSETS
--------------------------------------------------
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A* CLASS CLASS E CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Tax-Free Money
Market Fund 0.30 N/A N/A N/A
Government Money Market Fund 0.25 N/A N/A N/A
Money Market Fund 0.30 N/A N/A 0.25
National Tax-Free Money Market
Fund 0.25 N/A N/A N/A
Prime Money Market Fund 0.30 0.15 N/A 0.20
Treasury Plus Money Market
Fund 0.30 0.15 0.30 0.20
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The shareholder servicing fees paid on behalf of the Funds for the six months
ended September 30, 1999 were as follows:
<TABLE>
% OF AVERAGE DAILY NET ASSETS
--------------------------------------------------
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A CLASS CLASS E CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market Fund $14,558,710 N/A N/A $1,612,677
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>
Shareholder servicing fees for the California Tax-Free Money Market,
Government Money Market and National Tax-Free Money Market Funds for the six
months ended September 30, 1999 are disclosed in the Statement of Operations.
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, Class E shares of the Treasury Plus Money Market Fund and Class S shares
of the Money Market Fund pursuant to Rule 12b-1 under the 1940 Act
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
(each, a "Plan"). The Plans for the California Tax-Free Money Market Fund and
the Class A shares of the Money Market Fund provide that such Funds may defray
all or part of the cost of preparing, printing and distributing prospectuses and
other promotional materials by paying for costs incurred on an annual basis of
up to 0.05% of the average daily net assets attributable to such shares. These
Plans for the Class A shares provide only for reimbursement of actual expenses.
The Plans for the Class A shares of the Government Money Market, National
Tax-Free Money Market, Prime Money Market and Treasury Plus Money Market Funds
provide that such Funds may pay to Stephens, as compensation for
distribution-related services or as reimbursement for distribution-related
expenses, up to 0.05% of the average daily net assets attributable to such
shares.
Under the Plan for Class S shares of the Money Market Fund, the Fund may pay
to Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, a monthly fee at an annual rate
of 0.75% of the average daily net assets attributable to its Class S shares.
Under the Plan for Class E shares of the Treasury Plus Money Market Fund, the
Fund may pay to Stephens, as compensation for distribution-related services or
as reimbursement for distribution-related expenses, a monthly fee at an annual
rate of up to 0.10% of the average daily net assets attributable to its Class E
shares.
Each Fund may participate in joint distribution activities with other Funds,
in which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
Distribution fees paid on behalf of the Funds for the six months ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS E CLASS S
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Money Market Fund $ 0 N/A $4,838,029
Treasury Plus Money Market Fund 0 $0 N/A
</TABLE>
Distribution fees for the California Tax-Free Money Market, Government Money
Market, National Tax-Free Money Market and Prime Money Market Funds for the six
months ended September 30, 1999 are disclosed in the Statement of Operations.
77
<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>
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $ 496,574 N/A N/A N/A $ 68,259
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>
Registration fees for the California Tax-Free Money Market and Government
Money Market Funds for the six months ended September 30, 1999 are disclosed in
the Statement of Operations.
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the 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 111,827 shares of the
California Tax-Free Money Market Fund, 27 shares of the Government Money Market
Fund, 13,266 shares of the Money Market Fund, 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.
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
CALIFORNIA TAX-FREE MONEY MARKET
FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
- --------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 2,167,271,072 3,191,791,394
Shares issued in reinvestment of dividends 24,256,508 45,918,774
Shares redeemed -- Class A (2,178,613,925) (3,110,347,456)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 12,913,655 127,362,712
GOVERNMENT MONEY MARKET FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
<S> <C> <C>
- --------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 110,806,760 211,809,887
Shares issued in reinvestment of dividends 982,612 1,726,275
Shares redeemed -- Class A (109,365,639) (231,567,166)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 2,423,733 (18,031,004)
MONEY MARKET FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
SEPT. 30, 1999 MARCH 31, 1999
<S> <C> <C>
- --------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 2,814,655,415 5,518,795,093
Shares issued in reinvestment of dividends --
Class A 245,238,072 351,157,967
Shares redeemed -- Class A (1,897,346,724) (3,443,871,290)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 1,162,546,763 2,426,081,770
Shares sold -- Class S 1,436,103,847 2,191,020,851
Shares issued in reinvestment of dividends --
Class S 27,679,726 43,441,848
Shares redeemed -- Class S (1,212,248,090) (2,027,066,523)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS S 251,535,483 207,396,176
</TABLE>
79
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
NATIONAL TAX-FREE MONEY MARKET
FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
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>
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
PRIME MONEY MARKET FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
ENDED 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>
81
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
TREASURY PLUS MONEY MARKET FUND
--------------------------------
(UNAUDITED) FOR
THE
SIX MONTHS FOR THE
ENDED 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 reorganization 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
California Tax-Free Money Market Fund was reorganized to form
82
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Funds
- ------------------------------------------------------------------------
the Wells Fargo California Tax-Free Money Market Fund. The Stagecoach Government
Money Market Fund and Norwest Advantage U.S. Government Fund were reorganized to
form the Wells Fargo Government Money Market Fund. The Stagecoach Money Market
Fund, Stagecoach Prime Money Market Fund (Class A), and Norwest Advantage Ready
Cash Investment Fund (Classes A and B) were reorganized to form the Wells Fargo
Money Market Fund. The Stagecoach National Tax-Free Money Market Fund (Class A)
and Norwest Advantage Municipal Money Market Fund (Class A) were reorganized to
form the Wells Fargo National Tax-Free Money Market Fund. The Stagecoach
Treasury Plus Money Market Fund (Classes A and E) was reorganized to form the
Wells Fargo Treasury Plus 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.
83
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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>
- ----------------------------------------------------------------------------
California Tax-Free Money Market 1,088,808,893 35,679,371 55,062,437
Government Money Market 42,114,487 301,827 397,566
Money Market 5,218,145,844 210,462,140 548,126,096
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>
84
<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>
85
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
86
<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
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