<PAGE>
STAGECOACH FUNDS-Registered Trademark-
Semi-Annual Report
MONEY MARKET Trusts
California Tax-Free Money Market Trust
Money Market Trust
National Tax-Free Money Market Trust
September 30, 1999
<PAGE>
Money Market Trusts TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS.......................................... 1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
California Tax-Free Money Market Trust...................... 3
National Tax-Free Money Market Trust........................ 3
Money Market Trust.......................................... 6
PORTFOLIOS OF INVESTMENTS
California Tax-Free Money Market Trust.......................8
Money Market Trust..........................................17
National Tax-Free Money Market Trust........................20
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................30
Statement of Operations.....................................31
Statements of Changes in Net Assets.........................32
Financial Highlights........................................34
Notes to Financial Statements...............................38
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS..................43
LIST OF ABBREVIATIONS...........................................44
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
<PAGE>
LETTER TO SHAREHOLDERS Money Market Trusts
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
It's a pleasure to provide you with the semi-annual report for the period
ended September 30, 1999. The report includes information about your investment
over the six-month period, including economic and market trends, a performance
summary, a portfolio review and a strategic outlook.
Several noteworthy events happened during the period, including the Dow Jones
Industrial Average surpassing 10,000 points for the first time in its 104-year
history in March, and the Federal Reserve Board (the "Fed") raising short-term
interest rates twice between April 1, 1999, and September 30, 1999.
Despite the two interest rate increases during the period, the nation's
economy remained strong. Earnings for U.S. companies were robust, we had a
budget surplus, inflation and unemployment remained low, and Americans seemed
confident about the future. We were also in the midst of a prolonged bull
market, which made U.S. capital markets attractive to investors both at home and
abroad. By the end of the period, however, stocks suffered a setback, hurt by
worries over the Fed tightening and higher interest rates early in the period,
and by a weaker dollar and rising commodity prices in September 1999. By late
September, both the DJIA and the S&P 500 Index were off about 10% from their
summer peaks. Investors can expect some potential volatility toward the end of
the year due to Y2K concerns.
The interest rate increases were good news for the bond markets, which had
discounted the Fed tightening in response to a strong economy before the rate
increases. The increases helped restore order to the bond market, which had seen
prices tumble and yields rise above 6% on the benchmark 30-year U.S. Treasury
bond. The higher the bond yields move, the more likely investors will be to
switch from stocks to the safety of bonds.
1
<PAGE>
Money Market Trusts LETTER TO SHAREHOLDERS
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In addition, the short-term Treasury market experienced higher yields late in
the six-month period. However, during the last half of September there was a
rally in the six-month bills as the three-month bills were experiencing
maturities in late December. Consequently, investors stayed away from the late
December maturities due to Y2K concerns and reinvestment risk in late December.
Third quarter short-term agency yields rose more than short-term Treasury
yields, widening the spread between agencies' discount notes and T-Bills. Agency
spreads widened out considerably in the front-end, primarily due to Y2K
concerns. The spread in the three-month sector stood at 68 basis points, while
the one-year spread was 60 basis points.
As you read through this report and review the performance of the Funds within
your portfolio, we encourage you to keep long-term goals in mind when making
investment decisions. We recommend that you continually review your investment
portfolio with your financial consultant to determine an appropriate mix of
investments to meet your ongoing needs.
Thank you again for your continued investment with the Stagecoach Funds. At
the close of business November 5, 1999, the Stagecoach Funds were reorganized
into the Wells Fargo Funds. The next annual or semi-annual report you receive
will reflect the Wells Fargo Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Executive Vice President
Mutual Fund Group
Wells Fargo Bank, N.A.
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President
Stagecoach Funds, Inc.
2
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Trusts
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CALIFORNIA TAX-FREE MONEY MARKET TRUST
NATIONAL TAX-FREE MONEY MARKET TRUST
TWO STAGECOACH TAX-FREE MONEY MARKET TRUSTS (EACH, A "TRUST," COLLECTIVELY,
THE "TRUSTS") WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND
ANALYSIS.
The Stagecoach California Tax-Free Money Market Trust 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 Trust seeks to obtain a high
level of income exempt from federal income tax, while preserving capital and
liquidity, by investing in high-quality, U.S. dollar-denominated money market
instruments, primarily municipal obligations.
Kevin Shaughnessy of Wells Capital Management Incorporated manages the
California Tax-Free Money Market Trust. 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. Mary Gail Walton manages the
National Tax-Free Money Market Trust. Ms. Walton's career spans 14 years and
includes extensive experience in tax-exempt portfolio management. Before joining
Wells Fargo, Ms. Walton was employed at Dean Witter Reynolds, Inc. and Ragen
MacKenzie, Inc. She received a B.A. from the University of Washington and is a
candidate for the Chartered Financial Analyst designation. She is a member of
the Association for Investment Management and Research (AIMR) and the Security
Analysts of San Francisco.
3
<PAGE>
Money Market Trusts INVESTMENT ADVISOR COMMENTARY
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PERFORMANCE SUMMARY
The cumulative total returns(1) for the six-month period ended September 30,
1999, for the Stagecoach Tax-Free Money Market Trusts were as follows:
- --------------------------------------------------
<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET TRUST 1.41%
NATIONAL TAX-FREE MONEY MARKET TRUST 1.54%
</TABLE>
The seven-day current yields for the Stagecoach Tax-Free Money Market Trusts
as of September 30, 1999, were as follows:
- --------------------------------------------------
<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET TRUST 3.07%
NATIONAL TAX-FREE MONEY MARKET TRUST 3.45%
</TABLE>
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, an investor in the maximum combined
federal and California income tax bracket of 45.22% would need to earn 5.60%
from a taxable investment to match a 3.07% tax-free yield. In order to match a
3.45% tax-free yield, an investor in the maximum 39.60% federal income tax
bracket would need to earn 5.71% on a taxable investment. Keep in mind that past
performance is no guarantee of future results.
PORTFOLIO REVIEW
Short-term municipal security yields fell significantly during the first two
weeks of the third quarter of 1999. This was due primarily to reinvestment of
coupon income from tax-exempt money market funds. However, by mid-July, the
downward trend was reversed, and yields began a climb that ended in a 75 basis
point increase by the end of the quarter. In response to this volatility, the
Trusts increased their allocations to floating rate instruments. When rates
reached their high point in September, the Trusts purchased fixed-rate notes at
attractive prices to replace their positions in maturing notes.
4
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Trusts
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STRATEGIC OUTLOOK
Looking forward, the Trusts will continue to emphasize purchasing floating
rate notes since the fourth quarter of the year is typically characterized by a
strong need for liquidity from tax-exempt money market funds. In the current
economic environment, we expect short-term municipal rates to continue to push
upward. We intend to maintain our emphasis on preservation of principal, high
liquidity, credit quality and the highest possible tax-exempt returns for our
clients.
(1) Figures quoted represent past performance, which is no guarantee of future
results. The Trusts are neither insured nor guaranteed by the U.S.
Government.
A portion of the Trusts' distributions may be subject to federal, state,
and/or local taxes or the alternative minimum tax (AMT).
The Trusts' 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 Trusts' returns would have been lower. There is no guarantee
such reductions will continue.
An investment in the Trusts is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Trusts seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Trusts.
5
<PAGE>
Money Market Trusts INVESTMENT ADVISOR COMMENTARY
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MONEY MARKET TRUST
The Money Market Trust (the "Trust") seeks to provide investors with current
income and stability of principal, by investing in high-quality, U.S. dollar-
denominated money market instruments with remaining maturities not exceeding 397
days (13 months).
The Trust is managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has more than a decade of experience in managing taxable
money market mutual funds at First Interstate Bank and Union Capital Advisors.
He holds a B.A. degree in Finance from California State University,
Los Angeles.
PERFORMANCE SUMMARY
For the six-month period ended September 30, 1999, the Stagecoach Money Market
Trust's cumulative total return(1) was 2.51%. The seven-day current yield for
the Trust was 5.25% as of September 30, 1999. 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 Trust performed favorably compared to its
benchmark because it maintained a weighted average maturity which was longer
than average.
6
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Trusts
- ------------------------------------------------------------------------
STRATEGIC OUTLOOK
The Fed was expected to meet to discuss another increase to short-term
interest rates once again in November in its continued fight against inflation
and to restrain long-term interest rates. Going forward, the Trust will continue
to take advantage of the relatively steep yield curve by maintaining a longer
weighted average maturity, while maintaining high credit quality. To maintain
adequate liquidity, the Trust will continue to hold 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 Trust is neither insured nor guaranteed by the U.S. Government.
The Trust's manager has voluntarily waived all or a portion of its
management fees or assumed responsibility for other expenses, which reduces
operating expenses and increases total return to shareholders. Without these
reductions, the Trust's returns would have been lower. There is no guarantee
such reductions will continue.
An investment in the Trust is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Trust seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Trust.
7
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 93.97%
$ 5,000,000 ABN Amro Munitops COP 1998-20 3.50% 07/05/06 $ 5,000,000
2,800,000 Alameda CA School Finance Authority
Revenue Series A 3.55 07/01/18 2,800,000
555,000 Alameda CA School Finance Authority
Revenue Series B 3.55 07/01/16 555,000
4,545,000 Anaheim CA MFHR Monterey Apartments
Series B 3.45 05/15/27 4,545,000
3,500,000 Anaheim CA Public Improvement COP LOC -
Industrial Bank of Japan Limited 3.20 08/01/19 3,500,000
12,000,000 California Community College Financing
Authority Series A 4.00 06/30/00 12,078,983
4,600,000 California DW&P 2.90 10/13/99 4,600,000
1,035,000 California Educational Facilities
Authority Revenue Stanford University
Series M 5.25 12/01/99 1,039,307
2,000,000 California Health Facilities Financing
Authority Revenue Hospital Adventist
Series C 3.70 09/01/15 2,000,000
3,625,000 California HFA Revenue AMT Series 83 2.95 08/01/25 3,625,000
585,000 California HFA Revenue AMT Series B 3.00 02/01/00 585,000
2,815,000 California HFFA Catholic Healthcare
Series B 3.40 07/01/12 2,815,000
2,000,000 California HFFA Revenue Catholic
Healthcare Series A MBIA Insured 3.40 07/01/21 2,000,000
2,000,000 California HFFA Series B FNMA
Collateralized 3.25 07/15/13 2,000,000
1,000,000 California Housing Financing Agency
Revenue Series D 3.02 04/30/00 1,000,000
13,560,000 California Housing Financing Agency
Revenue Series E 3.40 08/01/00 13,560,000
2,575,000 California Housing Financing Agency
Revenue Series J 3.20 08/01/20 2,575,000
4,300,000 California Infrastructure & Economic
Development Fish House Ponds 3.10 09/01/24 4,300,000
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 3,100,000 California PCR AMT Pacific Gas & Electric
Series D 3.40% 01/01/10 $ 3,100,000
2,700,000 California PCR Daily Refunded 3.70 11/01/26 2,700,000
4,000,000 California PCR Financing Authority 3.30 09/01/17 4,000,000
1,800,000 California Pollution Control Finance
Authority Revenue 3.75 02/01/16 1,800,000
3,000,000 California Revenue Wateruse Finance
Authority 3.60 05/01/28 3,000,000
18,840,000 California School Cash Reserve Program
Series A 4.00 07/03/00 18,963,974
1,500,000 California School Facilities COP
Series A 3.45 07/01/22 1,500,000
10,595,000 California School Facilities COP
Series C 3.45 07/01/22 10,595,000
1,195,000 California School Facilities Financing
Corporation Series B Bayerische 3.45 07/01/24 1,195,000
2,200,000 California State COP Series 55 FGIC
Insured 3.52 02/01/13 2,200,000
27,000,000 California State Development Authority
Revenue Series A 3.50 10/01/26 27,000,000
6,200,000 California State Health Facility Revenue
Series B AMBAC Insured 3.50 07/01/12 6,200,000
2,100,000 California State HFFA Revenue Scripps
Hospital 3.10 10/01/21 2,100,000
3,700,000 California State HFFA Revenue Scripps
Memorial Hospital Series B 3.10 12/01/15 3,700,000
1,200,000 California State HFFA Santa Barbara
Cottage LOC Credit Suisse 3.40 09/01/15 1,200,000
900,000 California State PCFA Solid Waste
Disposal Revenue Colmac Energy Project
Series A LOC - Swiss Bank AMT 3.30 12/01/16 900,000
1,500,000 California State PCFA Solid Waste
Disposal Revenue Shell Oil Company
Martinez Project AMT AMBAC Insured 3.75 12/01/24 1,500,000
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 4,700,000 California State PCFA Solid Waste
Disposal Revenue Shell Oil Company
Martinez Project Series A AMT 3.75% 10/01/24 $ 4,700,000
5,100,000 California State PCR MBIA Insured 3.70 06/01/10 5,100,000
1,800,000 California State PCR Pacific Gas &
Electric 3.70 11/01/26 1,800,000
7,400,000 California State PCR Sierra Pacific
Industries 3.40 02/01/13 7,400,000
10,400,000 California State Public Works 3.62 09/01/17 10,400,000
6,000,000 California State Revenue Anticipation
Notes Series A 4.00 06/30/00 6,030,600
1,000,000 California Statewide CDA COP 3.80 06/01/26 1,000,000
5,000,000 California Statewide CDA St Joseph Health
System 3.35 07/01/08 5,000,000
3,130,000 California Statewide Community
Development Authority 3.82 12/01/41 3,130,000
3,515,000 California Statewide Community
Development Authority Series 151 3.52 08/01/11 3,515,000
7,000,000 California Statewide Community
Development Tax Revenue Anticipation
Notes Series C-2 4.00 09/29/00 7,037,700
5,000,000 California Statewide Community
Development Tax Revenue Anticipation
Notes Series A-1 4.00 06/30/00 5,029,619
5,100,000 California State PCR MBIA Insured 3.70 06/01/10 5,100,000
3,500,000 Central Valley School Financing Authority
Tax Revenue 3.50 01/27/00 3,507,554
2,000,000 Chula Vista CA Charter City Revenue Home
Depot Incorporated 3.25 12/01/10 2,000,000
2,000,000 Chula Vista CA CP 3.40 01/18/00 2,000,000
3,440,000 Chula Vista CA MFHR Series A 3.40 03/01/05 3,440,000
3,000,000 Contra Costa County CA CP 3.25 02/09/00 3,000,000
400,000 Fremont CA MFHR Creekside Village
Apartments LOC - National Westminster
Bank Plc 3.25 09/01/07 400,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 1,000,000 Golden Empire Schools Financing Authority
Kern High School District Series A 3.65% 12/01/24 $ 1,000,000
1,300,000 Irvine CA Development Revenue 3.30 09/02/11 1,300,000
2,900,000 Irvine CA Improvement Bond Act 1915 3.50 09/02/23 2,900,000
3,580,000 Irvine CA Public Facilities &
Infrastructure Authority Lease Revenue 3.30 11/01/10 3,580,000
1,300,000 Irvine Ranch CA Water District
Consolidated Bonds 3.50 10/01/05 1,300,000
540,000 Irvine Ranch CA Water District LOC - Bank
of America 3.50 04/01/33 540,000
3,575,000 Kern County CA COP Public Facilities
Project Series B 3.40 08/01/06 3,575,000
3,460,000 Livermore CA MFHR 3.25 07/15/18 3,460,000
7,500,000 Long Beach CA Health Facilities Memorial
Health Services 3.50 10/01/16 7,500,000
3,200,000 Los Angeles CA Convention & Exhibition
Center Authority Lease Revenue 3.70 08/15/18 3,200,000
2,500,000 Los Angeles CA CP 3.25 02/09/00 2,500,000
6,460,000 Los Angeles CA DW&P Series 144 3.52 06/15/29 6,460,000
3,100,000 Los Angeles CA MFHR Fountain Park Project 3.35 04/15/33 3,100,000
4,000,000 Los Angeles CA USD Series A26 Regulation
D 3.35 10/01/99 4,000,000
6,160,000 Los Angeles CA USD Series E-19 3.70 09/29/00 6,160,000
5,000,000 Los Angeles CA Wastewater Systems Revenue
Series A 7.00 02/01/11 5,157,728
2,000,000 Los Angeles County CA School Financing
Authority COP Series A 4.00 06/30/00 2,012,580
8,745,000 Los Angeles County CA Metropolitan
Transportation Authority Sales Tax
Revenue Series 106 FSA Insured 3.49 07/01/28 8,745,000
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 5,595,000 Los Angeles County CA Metropolitan
Transportation Authority Sales Tax
Revenue Series A 3.40% 07/01/20 $ 5,595,000
1,000,000 Mt. Diablo CA USD Tax Revenue
Anticipation Notes 3.50 01/28/00 1,002,108
12,000,000 Los Angeles County CA Tax Revenue
Anticipation Notes 4.00 06/30/00 12,056,806
6,500,000 Metropolitan Water CP 3.35 03/06/00 6,500,000
2,500,000 Metropolitan Water District CP 3.05 10/27/99 2,500,000
2,000,000 Metropolitan Water District CP 3.35 03/06/00 2,000,000
5,000,000 Metropolitan Water District Southern
California Series 116 3.56 07/01/21 5,000,000
1,855,000 Metropolitan Water District Southern
California Series SG-128 3.52 07/01/30 1,855,000
4,600,000 Modesto-San Juan-Redding Public Power
Agency Series F 3.60 07/01/22 4,600,000
1,600,000 Newport Beach CA Memorial Hospital
Series A 3.85 10/01/26 1,600,000
8,000,000 Northern California Public Power Revenue
Series SSP 35A 3.56 07/01/28 8,000,000
1,800,000 Orange County CA Apartment Development
Revenue Series U 3.45 11/01/09 1,800,000
2,700,000 Orange County CA HFA The Lakes Apartments
LOC - Citibank 3.30 12/01/06 2,700,000
8,500,000 Orange County CA Laguna Summit Apartments
Series X 3.45 11/01/09 8,500,000
3,000,000 Otay CA Water District COP Capital
Projects 3.30 09/01/26 3,000,000
6,000,000 Regents of the University of California
CP 3.30 02/08/00 6,000,000
1,300,000 Riverside County CA COP Series A 3.20 12/01/15 1,300,000
3,300,000 Riverside County CA IDA Universal Forest
Project 3.90 08/01/29 3,300,000
3,400,000 Riverside County CA MFHR Woodcreek
Series D 3.25 07/15/18 3,400,000
500,000 Sacramento CA MFHR Smoketree 3.25 04/15/10 500,000
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 2,600,000 Sacramento County CA Administration
Center & Courthouse Project LOC - Union
Bank of Switzerland 3.55% 06/01/20 $ 2,600,000
3,100,000 Sacramento County CA MFHR Series C 3.40 04/15/07 3,100,000
2,000,000 Salinas CA MFHR Mariner Village 3.25 04/01/05 2,000,000
2,200,000 San Bernardino County CA COP Housing
Authority Revenue 3.25 07/01/15 2,200,000
1,400,000 San Bernardino County CA COP Medical
Center Financing Project 3.10 08/01/26 1,400,000
1,650,000 San Bernardino County CA GO 7.65 01/01/15 1,702,210
2,725,000 San Bernardino County CA MFHR Rosewood
Apartments Series A 3.30 05/15/29 2,725,000
3,550,000 San Diego CA COP Tax Revenue Anticipation
Notes Series B 4.00 07/28/00 3,565,498
3,315,000 San Francisco CA City & County Common
International Airport 3.25 03/07/00 3,315,000
3,720,000 San Francisco CA City & County Common
International Airport 3.30 03/07/00 3,720,000
785,000 San Francisco CA City & County Finance
Authority Revenue 3.65 09/01/06 785,000
1,200,000 San Francisco CA City & County
Redevelopment Agency South Harbor
Project 3.45 12/01/16 1,200,000
4,745,000 San Francisco CA GO AMT 2.95 05/01/19 4,745,000
2,000,000 San Francisco CA MFHR Filmore Center
Apartments LOC - Citibank 3.10 12/01/17 2,000,000
8,000,000 San Francisco County CA International
Airport COP Series 31 FGIC Insured 3.52 05/01/29 8,000,000
3,500,000 San Jose/Santa Clara Clean Water
Financing Authority 3.20 11/15/11 3,500,000
3,500,000 San Jose CA MFHR Fairway Glen Series A 3.45 11/01/07 3,500,000
2,600,000 San Jose CA Redevelopment Agency Project
A 3.65 07/01/26 2,600,000
1,000,000 San Jose CA Redevelopment Agency Project
B 3.25 07/01/26 1,000,000
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 5,200,000 San Juan Project Revenue Series A 3.30% 07/01/22 $ 5,200,000
1,500,000 Santa Ana CA Industrial Development
Authority 3.60 11/01/18 1,500,000
900,000 Santa Clara CA Electric Revenue
Series 85B LOC - National Westminster
Bank Plc 3.30 07/01/10 900,000
2,800,000 Santa Clara CA Transit System LOC -
Sumitomo Bank Limited 3.60 06/01/15 2,800,000
2,000,000 Santa Clara County CA Finance Authority
Lease Revenue Project B 3.35 11/15/25 2,000,000
3,600,000 Santa Clara County CA MFHR Foxchase
Apartments Series E FGIC Insured 3.40 11/01/07 3,600,000
15,860,000 Santa Clara County CA Series A18
Regulation D 3.70 09/29/00 15,860,000
3,500,000 Simi Valley CA MFHR Community Development
Agency Revenue 3.45 05/01/10 3,500,000
3,945,000 Simi Valley CA Public Finance Lease
Revenue 3.65 09/01/15 3,945,000
2,421,000 Southeast CA Revenue Recovery Facility
Series A 3.30 12/01/18 2,421,000
1,781,000 Southeast Resource Recovery Facility
Lease Revenue Series B AMT 3.35 12/01/18 1,781,000
3,970,000 Southern California Public Power
Authority Revenue Palo Verde Project
AMBAC Insured 3.20 07/01/17 3,970,000
3,000,000 Southern California Public Power Palo
Verde Project Series A 4.00 07/01/00 3,014,198
2,400,000 Southern California State Public Power
Authority Palo Verde Project Series B
AMBAC Insured 3.20 07/01/09 2,400,000
1,895,000 State of California CP 3.20 10/05/99 1,895,000
10,000,000 State of California CP 3.20 10/06/99 10,000,000
14,050,000 State of California CP 3.20 11/08/99 14,050,000
4,795,000 State of California CP 3.30 11/08/99 4,795,000
1,670,000 Tehachapi CA Community Facilities
District Special Tax No. 89-1 7.40 10/01/14 1,720,100
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) California Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 1,125,000 Turlock CA Irrigation District Revenue
Series A LOC - Canadian Imperial Bank
of Commerce 3.30% 01/01/14 $ 1,125,000
2,000,000 Turlock CA COP Irrigation Project
Series A 3.30 01/01/26 2,000,000
5,600,000 University of California CP 2.85 10/05/99 5,600,000
2,700,000 Vallecitos CA Water District COP Twin
Oaks Reservoir Project 3.40 07/01/30 2,700,000
1,245,000 Vallejo CA MFHR Highlands 3.50 06/01/07 1,245,000
1,000,000 Vallejo CA MFHR Revenue Series A 3.25 05/15/22 1,000,000
2,100,000 Vallejo CA MFHR Revenue Series C 3.40 01/01/08 2,100,000
2,000,000 West Basin CA MUD COP Phase III 3.15 08/01/29 2,000,000
400,000 West Basin CA Municipal Water District
Revenue Project B 3.15 08/01/27 400,000
------------
TOTAL CALIFORNIA MUNICIPAL SECURITIES $539,600,965
(Cost $539,600,965)
PUERTO RICO MUNICIPAL SECURITIES - 6.77%
$15,200,000 Puerto Rico Commonwealth Government
Development 3.10% 12/01/15 $ 15,200,000
3,120,000 Puerto Rico Commonwealth Highway &
Transportation Authority Series 88 2.90 07/01/28 3,120,000
1,300,000 Puerto Rico Commonwealth Highway &
Transportation Authority Series A AMBAC
Insured 3.45 07/01/28 1,300,000
5,705,000 Puerto Rico Commonwealth COP Series 125 2.89 07/01/27 5,705,000
3,350,000 Puerto Rico Commonwealth COP Series 87 3.49 07/01/16 3,350,000
1,880,000 Puerto Rico Commonwealth Highway &
Transportation Authority 3.52 07/01/28 1,880,000
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS -
California Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (CONTINUED)
$ 3,720,000 Puerto Rico Commonwealth Infrastructure
Financing Authority Series 139 3.47% 07/01/28 $ 3,720,000
4,600,000 Puerto Rico Commonwealth Series 120 MBIA
Insured 3.49 07/01/23 4,600,000
------------
TOTAL PUERTO RICO MUNICIPAL SECURITIES $ 38,875,000
(Cost $38,875,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $578,475,965)* (Note 1) 100.74% $578,475,965
Other Assets and Liabilities, Net (0.74) (4,242,683)
------ ------------
TOTAL NET ASSETS 100.00% $574,233,282
====== ============
- ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT
TO A DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial
statements.
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 4.58%
$20,000,000 KeyBank N.A. 5.38% 10/13/99 $ 19,999,731
(Cost $19,999,731)
COMMERCIAL PAPER - 59.85%
$5,000,000 BankAmerica Corporation 5.19%# 11/03/99 $ 4,976,213
5,000,000 Barton Capital Corporation 5.37 10/18/99 4,987,321
15,000,000 Bear Stearns Companies 5.29# 03/03/00 14,660,558
10,000,000 Beta Finance Incorporated 5.73# 02/23/00 9,769,208
15,000,000 Certain Funding Corporation 5.38# 11/12/99 14,905,850
10,000,000 CitiCorp 5.34# 10/07/99 9,991,100
15,000,000 Corporate Receivables Corporation++ 5.34 10/15/99 14,968,850
10,000,000 Ford Motor Credit 5.31# 10/07/99 9,991,150
20,000,000 GE Capital Services Incorporated 4.85# 01/18/00 19,706,306
10,000,000 Goldman Sachs Group LP 5.15# 10/19/99 9,974,250
7,600,000 Goldman Sachs Group LP 5.55# 01/14/00 7,476,975
15,000,000 Greenwich Funding Corporation++ 5.35 10/06/99 14,988,854
10,000,000 JP Morgan & Company 5.12# 12/08/99 9,903,289
15,000,000 Monte Rosa Capital Corporation 5.35 10/12/99 14,975,479
15,000,000 Perry IV Funding 5.86# 03/16/00 14,592,242
15,000,000 Salomon Smith Barney Holdings 5.15# 10/05/99 14,991,417
15,000,000 Sheffield Receivables Corporation++ 5.36 10/14/99 14,970,967
15,000,000 Triple A One Funding 5.38# 11/02/99 14,928,267
8,000,000 Wachovia Corporation 5.22# 02/10/00 7,846,880
15,000,000 Walt Disney Company 4.78# 11/08/99 14,924,317
8,000,000 Windmill Funding Corporation++ 5.37 11/08/99 7,954,653
10,000,000 Windmill Funding Corporation++ 5.60 01/05/00 9,850,667
------------
TOTAL COMMERCIAL PAPER $261,334,813
(Cost $261,334,813)
CORPORATE BONDS & NOTES - 21.05%
$10,000,000 Beta Finance Incorporated 6.15% 10/06/00 $ 10,000,000
8,000,000 First USA Bank 5.99 09/21/00 7,997,764
5,962,000 Ford Motor Credit 9.25 03/01/00 6,060,150
3,000,000 Goldman Sachs Group LP 6.07 09/01/00 3,000,000
</TABLE>
17
<PAGE>
Money Market Trust 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)
$7,850,000 Huntington National Bank 6.10% 11/29/99 $ 7,864,749
10,000,000 NationsBank N.A. 5.41 04/05/00 9,997,986
20,000,000 Sigma Finance Incorporated 5.39 03/10/00 20,000,000
10,000,000 Special Purpose A/R Corporation 5.53 02/24/00 10,000,000
10,000,000 Texaco Capital Corporation 5.11 05/03/00 9,996,023
7,000,000 U.S. Bank N.A. 5.92 10/02/00 6,994,620
------------
TOTAL CORPORATE BONDS & NOTES $ 91,911,292
(Cost $91,911,292)
SHORT-TERM FEDERAL AGENCIES - 5.26%
$3,000,000 Federal Home Loan Banks 5.14% 03/29/00 $ 3,001,037
20,000,000 Student Loan Mortgage Association 5.26 11/05/99 20,000,000
------------
TOTAL SHORT-TERM FEDERAL AGENCIES $ 23,001,037
(Cost $23,001,037)
CERTIFICATES OF DEPOSIT - 6.87%
$10,000,000 Chase Manhattan USA 5.55% 01/18/00 $ 10,000,000
20,000,000 Regions Bank 5.62 10/01/99 20,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT $ 30,000,000
(Cost $30,000,000)
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 2.51%
$10,896,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28 10/01/99 $ 10,896,000
64,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 64,000
------------
TOTAL REPURCHASE AGREEMENTS $ 10,960,000
(Cost $10,960,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $437,206,873)* (Note 1) 100.12% $437,206,873
Other Assets and Liabilities, Net (0.12) (544,487)
------ ------------
TOTAL NET ASSETS 100.00% $436,662,386
====== ============
- ------------------------------------------------------------------------------------------------------
</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.
19
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES - 99.62%
ALABAMA - 0.58%
$1,375,000 Alabama State Public School & College Authority Revenue
Series 101 3.90% 11/01/13 $ 1,375,000
ALASKA - 0.34%
$ 800,000 Anchorage AK Higher Education Revenue Pacific
University 3.75% 07/01/17 $ 800,000
ARIZONA - 1.01%
$ 600,000 Apache County AZ IDA Tucson Electric Power Series 83-A 3.80% 12/15/18 $ 600,000
1,800,000 Maricopa County AZ PCR Arizona Public Service Co
Series D LOC - Bank of America 3.90 05/01/29 1,800,000
--------------------
$ 2,400,000
CALIFORNIA - 0.96%
$2,000,000 California Higher Education Series D-2 3.50% 04/01/00 $ 2,000,000
285,000 California State HFFA St. Joseph Health Center
Series A 3.45 07/01/13 285,000
--------------------
$ 2,285,000
COLORADO - 1.30%
$1,000,000 Adams County CO IDA 3.70% 11/01/08 $ 1,000,000
1,600,000 Colorado State HFFA Catholic Healthcare Series B 3.85 12/01/25 1,600,000
500,000 Douglas County CO MFHR Autumn Chase Project 3.70 07/01/06 500,000
--------------------
$ 3,100,000
DISTRICT OF COLUMBIA - 0.71%
$1,700,000 District Of Columbia Series B-2 4.25% 06/01/03 $ 1,700,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) National Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
FLORIDA - 5.16%
$1,800,000 Broward County FL Port Everglades Facilities AMBAC
Insured 3.90% 09/01/27 $ 1,800,000
5,485,000 Jacksonville FL Electric Authority Revenue Series 127 3.85 10/01/32 5,485,000
5,000,000 Tampa FL Sports Authority Revenue Series 98 3.85 01/01/27 5,000,000
--------------------
$ 12,285,000
GEORGIA - 2.61%
$ 500,000 Clayton County GA MFHR 3.85% 08/01/06 $ 500,000
5,000,000 Richmond County GA Development Authority Revenue
Solidwaste Disposal 3.75 07/01/32 5,000,000
700,000 Savannah GA Downtown Development Authority Revenue 3.65 09/01/05 700,000
--------------------
$ 6,200,000
HAWAII - 0.79%
$1,875,000 Hawaii State GO 3.85% 03/01/14 $ 1,875,000
ILLINOIS - 8.82%
$2,000,000 Chicago IL O'Hare Airport Revenue 3.77% 01/01/15 $ 2,000,000
1,000,000 Chicago IL Park District Capital Improvement 6.73 01/01/04 1,009,750
1,000,000 Illinois HFFA 3.50 10/07/99 1,000,000
1,275,000 Illinois HFFA 3.80 11/15/24 1,275,000
2,600,000 Illinois HFFA Revenue Advocate Healthcare Project
Series B 3.75 08/15/22 2,600,000
1,900,000 Illinois HFFA Series B 4.05 01/01/20 1,900,000
8,995,000 Illinois HFFA Series C 3.75 01/01/16 8,995,000
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
$1,000,000 Illinois State Toll Highway Authority Revenue Series B 3.85% 01/01/17 $ 1,000,000
1,200,000 Schaumburg IL MFHR Windsong Apartments Project 3.84 02/01/24 1,200,000
--------------------
$ 20,979,750
INDIANA - 3.06%
$ 300,000 Indiana State Development Financing Authority Revenue 3.85% 10/01/17 $ 300,000
3,470,000 Indianapolis Economic Development Revenue 3.85 03/01/13 3,470,000
3,500,000 Indianapolis IN Airport Authority Revenue 3.90 11/15/31 3,500,000
--------------------
$ 7,270,000
IOWA - 0.84%
$2,000,000 Iowa Financing Authority Revenue SFMR 3.00% 01/01/29 $ 2,000,000
KENTUCKY - 1.45%
$1,950,000 Kentucky Higher Education Student Loan Corporation
Series A 3.85% 06/01/26 $ 1,950,000
1,500,000 Kentucky State Development Authority Pooled Loan
Program Series A 3.80 12/01/15 1,500,000
--------------------
$ 3,450,000
LOUISIANA - 6.64%
$2,800,000 Louisiana Public Facilities Authority 4.00% 09/01/23 $ 2,800,000
10,000,000 Louisiana State Offshore Terminal Deepwater Authority
Revenue 3.85 10/01/19 10,000,000
3,000,000 Plaquemines LA Port Harbor & Terminal District 3.05 03/15/06 3,000,000
--------------------
$ 15,800,000
</TABLE>
22
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) National Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
MAINE - 0.29%
$ 700,000 Regional Waste Recovery Revenue Series K 3.90% 07/01/12 $ 700,000
MARYLAND - 5.26%
$5,000,000 Maryland Community Development Administration MFHR
Avalon Ridge Apartments Project 3.75% 06/15/26 $ 5,000,000
7,500,000 Maryland State Community Development Residential
Housing Series B 3.15 01/14/00 7,500,000
--------------------
$ 12,500,000
MASSACHUSETTS - 0.84%
$1,000,000 Baltimore MA Tax-Exempt 3.20% 10/07/99 $ 1,000,000
1,000,000 Massachusetts State Health & Educational Facilities
Authority Revenue Northeastern University Series C 6.80 10/01/99 1,000,000
--------------------
$ 2,000,000
MICHIGAN - 1.14%
$2,700,000 Detroit MI Sewage Disposal Revenue Series A 3.85% 07/01/23 $ 2,700,000
MINNESOTA - 2.14%
$1,000,000 Cohasset MN Power & Light Co Series A 3.95% 06/01/20 $ 1,000,000
1,000,000 Duluth MN Economic Development Authority 3.95 06/01/19 1,000,000
1,500,000 Duluth MN GO 8.38 02/15/20 1,559,260
1,520,000 Duluth MN Tax Increment Revenue 3.80 09/01/10 1,520,000
--------------------
$ 5,079,260
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
MISSISSIPPI - 0.45%
$1,075,000 Jackson County MS PCR Chevron USA Inc Project 3.75% 12/01/16 $ 1,075,000
MISSOURI - 3.43%
$ 700,000 Columbia MO Special Obligation Series A 3.70% 06/01/08 $ 700,000
2,000,000 Missouri HFFA 3.50 04/29/00 2,003,125
1,750,000 Missouri State Health & Educational Facilities
Authority Revenue Series A 3.80 11/01/19 1,750,000
3,700,000 Missouri State Health & Educational Facilities
Authority Revenue Series B 4.00 10/01/24 3,700,000
--------------------
$ 8,153,125
NEBRASKA - 2.10%
$5,000,000 Omaha Public Power Distirct Revenue Series 122 3.05% 02/01/14 $ 5,000,000
NEW JERSEY - 2.08%
$4,945,000 New Jersey State GO 3.77% 02/15/11 $ 4,945,000
NEW MEXICO - 1.86%
$ 200,000 Albuquerque NM Gross Receipts Lodgers Tax Revenue 3.70% 07/01/23 $ 200,000
1,300,000 Farmington NM PCR Series A 3.75 05/01/24 1,300,000
2,900,000 New Mexico State GO 4.00 06/30/00 2,916,116
--------------------
$ 4,416,116
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) National Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
NEW YORK - 4.92%
$3,500,000 Long Island NY Electric Power Systems Authority Revenue 3.75% 05/01/33 $ 3,500,000
1,500,000 New York GO 3.80 08/01/13 1,500,000
1,700,000 New York NY Muni Water Finance Authority Water & Sewer
System Revenue FGIC Insured 3.75 06/15/24 1,700,000
5,000,000 New York State Dorm Authority Revenue 3.65 02/15/13 5,000,000
--------------------
$ 11,700,000
NORTH CAROLINA - 5.76%
$1,000,000 North Carolina Community Medical Care Revenue Baptist
Hospitals Project Series A 3.85% 06/01/12 $ 1,000,000
6,500,000 North Carolina CP 3.35 10/05/99 6,500,000
6,200,000 North Carolina Medical Care Community Hospital 3.85 10/01/23 6,200,000
--------------------
$ 13,700,000
OHIO - 0.84%
$2,000,000 Clermont County OH Hospital Facilities Revenue Mercy
Health System Series B 3.90% 09/01/21 $ 2,000,000
OKLAHOMA - 0.50%
$1,200,000 Muskogee OK Industrial Pollution Oklahoma Gas &
Electric Company Series A 3.90% 01/01/25 $ 1,200,000
OREGON - 1.47%
$1,000,000 Oregon GO 3.20% 04/13/00 $ 1,000,000
2,495,000 Portland Sewer Revenue 3.85 06/01/14 2,495,000
--------------------
$ 3,495,000
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
PENNSYLVANIA - 5.18%
$4,000,000 Allegheny County PA IDA Series C 3.95% 07/01/27 $ 4,000,000
3,000,000 Allegheny County PA International Airport Revenue MBIA
Insured 5.00 01/01/00 3,012,908
2,175,000 Montgomery County PA Higher Education & Health
Authority Hospital Revenue Bonds Series A 7.63 02/01/20 2,208,135
1,100,000 Pennsylvania State Higher Education Facilities
Authority Revenue 3.85 01/01/26 1,100,000
2,000,000 South Fork Municipal Authority Hospital Revenue 3.75 07/01/28 2,000,000
--------------------
$ 12,321,043
SOUTH CAROLINA - 0.67%
$1,600,000 South Carolina Jobs Economic Development Authority
Hospital Facility Tuomey Regional Medical Center
Series B 3.80% 11/01/25 $ 1,600,000
TEXAS - 10.14%
$1,565,000 City of Rochester Tax-Exempt CP 3.35% 10/05/99 $ 1,565,000
2,000,000 Dallas CP 3.35 10/20/99 2,000,000
2,000,000 Greater Texas Student Loan Corporation Series A 3.00 04/01/05 2,000,000
1,700,000 Harris County TX GO 7.00 11/01/03 1,705,346
1,800,000 Harris County TX Toll Road Series D 3.75 08/01/15 1,800,000
2,500,000 Houston Water & Sewer 3.35 10/05/99 2,500,000
1,500,000 Panhandle-Plains TX Higher Education Authority Student
Loan Revenue Series B 3.75 06/01/21 1,500,000
1,000,000 Panhandle-Plains TX Higher Education Student Loan
Revenue Series B 3.75 06/01/23 1,000,000
1,000,000 South Texas Higher Education Authority Revenue 3.80 12/01/03 1,000,000
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS -
SEPTEMBER 30, 1999 (UNAUDITED) National Tax-Free Money Market Trust
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
$3,500,000 South Texas Higher Education Authority Revenue 3.80% 12/01/29 $ 3,500,000
5,500,000 Texas State GO 4.50 08/31/00 5,538,920
--------------------
$ 24,109,266
UTAH - 1.30%
$1,100,000 Salt Lake City UT GO 3.75% 01/01/20 $ 1,100,000
2,000,000 Utah County Environmental Improvement Revenue 3.10 11/01/17 2,000,000
--------------------
$ 3,100,000
VERMONT - 0.84%
$2,000,000 Vermont HFA 3.70% 09/07/00 $ 2,000,000
VIRGINIA - 1.68%
$1,000,000 Fairfax County VA Water Authority Revenue 6.13% 01/01/29 $ 1,007,589
3,000,000 Virginia State Public Building Authority Series 131 3.85 08/01/19 3,000,000
--------------------
$ 4,007,589
WASHINGTON - 6.96%
$2,000,000 Anacortes WA Tax-Exempt CP 3.40% 10/06/99 $ 2,000,000
1,200,000 Port Seattle WA 3.77 01/01/05 1,200,000
1,900,000 Port Seattle WA Revenue Series B 5.90 11/01/99 1,904,754
1,625,000 Seattle WA Sewer Revenue Series T 6.88 01/01/13 1,672,596
2,370,000 Seattle WA V/R 3.60 12/01/18 2,370,000
1,000,000 Tacoma WA Electric System Revenue 7.38 01/01/08 1,010,678
2,200,000 Washington State Healthcare Facilities 3.75 10/01/05 2,200,000
1,000,000 Washington State Healthcare Facilities 3.90 08/01/14 1,000,000
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS -
National Tax-Free Money Market Trust SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
$1,200,000 Washington State MFHR Inglenook Court Project LOC -
Bank of America 4.10% 07/01/25 $ 1,200,000
2,000,000 Washington State Nonprofit Housing Revenue Emerald
Height Project 4.05 01/01/21 2,000,000
--------------------
$ 16,558,028
WISCONSIN - 5.50%
$1,600,000 Carlton PCR 3.90% 09/01/05 $ 1,600,000
5,500,000 Kenosha WI USD No. 1 Tax & Revenue Antic 3.00 10/29/99 5,500,000
5,000,000 Milwaukee WI GO 3.90 09/07/00 5,000,000
975,000 Sheboygan WI PCR 3.85 07/01/25 975,000
--------------------
$ 13,075,000
TOTAL MUNICIPAL SECURITIES $ 236,954,177
(Cost $236,954,177)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $236,954,177)* (Notes 1 and 3) 99.62% $ 236,954,177
Other Assets and Liabilities, Net 0.38 906,912
------ --------------------
TOTAL NET ASSETS 100.00% $ 237,861,089
====== ====================
- -------------------------------------------------------------------------------------------------------------
</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.
28
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
29
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
Money Market Trusts SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL
TAX-FREE MONEY TAX-FREE
MONEY MARKET MARKET MONEY MARKET
TRUST TRUST TRUST
<S> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost $578,475,965 $437,206,873 $236,954,177
Cash 332,685 16,001 118,620
RECEIVABLES
Dividends and Interest 2,989,414 1,735,228 1,506,706
Organizational expenses, net of
amortization 11,859 0 16,418
Prepaid expenses 0 0 362
TOTAL ASSETS 581,809,923 438,958,102 238,596,283
LIABILITIES
Payables:
Investment securities purchased 6,030,600 0 0
Distribution to shareholders 1,283,052 1,928,306 598,958
Due to distributor (Note 2) 18,259 14,847 7,449
Due to adviser (Note 2) 58,779 55,779 22,505
Other 185,951 296,784 106,282
TOTAL LIABILITIES 7,576,641 2,295,716 735,194
TOTAL NET ASSETS $574,233,282 $436,662,386 $237,861,089
NET ASSETS CONSIST OF:
Paid-in capital $574,294,260 $436,662,386 $237,860,913
Undistributed net realized gain (loss)
on investments (60,978) 0 176
TOTAL NET ASSETS $574,233,282 $436,662,386 $237,861,089
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net Assets $574,233,282 $436,662,386 $237,861,089
Shares outstanding 574,294,260 436,739,145 237,860,913
Net asset value and offering price per
share $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 1999 (UNAUDITED) Money Market Trusts
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA NATIONAL
TAX-FREE MONEY TAX-FREE
MONEY MARKET MARKET MONEY MARKET
TRUST TRUST TRUST
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 8,304,264 $ 11,536,439 $ 3,551,084
TOTAL INVESTMENT INCOME 8,304,264 11,536,439 3,551,084
EXPENSES (NOTE 2)
Advisory fees 1,377,056 560,561 270,415
Administration fees 369,639 295,323 144,223
Custody fees 46,251 37,445 18,200
Shareholder servicing fees 553,899 448,449 217,958
Portfolio accounting fees 86,223 75,678 52,629
Transfer agency fees 42,321 30,341 15,832
Organization costs 2,295 0 2,648
Legal and audit fees 26,207 29,124 11,164
Registration fees 66,480 880 42,950
Directors' fees 1,622 366 278
Shareholder reports 21,164 911 1,022
Other 9,153 6,641 2,693
Total Expenses 2,602,310 1,485,719 780,012
Less:
Waived fees and reimbursed expenses (2,048,402) (1,037,270) (562,013)
NET EXPENSES 553,908 448,449 217,999
NET INVESTMENT INCOME 7,750,356 11,087,990 3,333,085
Net realized gain (loss) on sale of
investments (56,929) 0 176
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 7,693,427 $ 11,087,990 $ 3,333,261
- ------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
Money Market Trusts STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET TRUST
-------------------------------------------
(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 $ 7,750,356 $ 16,202,137
Net realized gain (loss) on sale of
investments (56,929) (1,896)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 7,693,427 16,200,241
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (7,750,356) (16,202,137)
From net realized gain on sale of
investments 0 0
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 719,972,290 1,227,641,270
Reinvestment of dividends 362,539 502,038
Cost of shares redeemed (695,333,537) (1,315,293,065)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS 25,001,292 (87,149,757)
INCREASE (DECREASE) IN NET ASSETS 24,944,363 (87,151,653)
NET ASSETS:
Beginning net assets 549,288,919 636,440,572
ENDING NET ASSETS $574,233,282 $ 549,288,919
- -------------------------------------------------------------------------------------------
</TABLE>
Shares issued and redeemed at constant $1.00 NAV
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Trusts
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET TRUST NATIONAL TAX-FREE MONEY MARKET TRUST
------------------------------------- -----------------------------------------
(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 $ 11,087,990 $ 27,272,039 $ 3,333,085 $ 7,036,095
Net realized gain (loss) on sale of
investments 0 11,709 176 4,735
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 11,087,990 27,283,748 3,333,261 7,040,830
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (11,087,990) (27,272,039) (3,333,085) (7,036,095)
From net realized gain on sale of
investments 0 (52,582) 0 (12,103)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 363,811,433 1,712,425,682 275,931,233 649,353,822
Reinvestment of dividends 1 5 163 206
Cost of shares redeemed (399,071,811) (1,871,232,124) (271,616,021) (645,247,726)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS (35,260,377) (158,806,437) 4,315,375 4,106,302
INCREASE (DECREASE) IN NET ASSETS (35,260,377) (158,847,310) 4,315,551 4,098,934
NET ASSETS:
Beginning net assets 471,922,763 630,770,073 233,545,538 229,446,604
ENDING NET ASSETS $436,662,386 $ 471,922,763 $237,861,089 $233,545,538
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Shares issued and redeemed at constant $1.00 NAV
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
Money Market Trusts FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE
MONEY MARKET TRUST (2)
-----------------------
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
SEPT. 30, MARCH 31,
1999 1999
<S> <C> <C>
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.03)
--------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
========= =========
TOTAL RETURN (NOT ANNUALIZED) 1.41% 2.93%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $574,233 $549,289
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.20% 0.20%
Ratio of net investment income to average net assets 2.79% 2.91%
- -------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.94% 0.91%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 2.05% 2.20%
- -------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS THE MONEY MARKET FUND OF WESTCORE TRUST AND WAS
ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS COMMENCEMENT
OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF PACIFICA FUNDS
TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL MANAGEMENT,
INC. ("FICM") ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS WELLS FARGO
INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL
MANAGEMENT, INC. THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST
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.
(2) THE FUND COMMENCED OPERATIONS ON MAY 5, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Trusts
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA
TAX-FREE
MONEY
MARKET
TRUST (2)
(CONT.) MONEY MARKET TRUST (1)
---------- --------------------------------------------
(UNAUDITED)
PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1998 1999 1999 1998 1997 (3)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.02 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.02) (0.05) (0.05) (0.03)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 2.94% 2.51% 5.35% 5.62% 2.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $636,441 $436,662 $471,923 $630,770 $807,003
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment
income to average net
assets 3.18% 4.95% 5.20% 5.46% 5.28%
- -------------------------------------------------------------------------------------
Ratio of expenses to
average net assets prior
to waived fees and
reimbursed expenses 0.85% 0.66% 0.61% 0.61% 0.61%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 2.53% 4.49% 4.79% 5.05% 4.87%
- -------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS THE MONEY MARKET FUND OF WESTCORE TRUST AND WAS
ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS COMMENCEMENT
OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF PACIFICA FUNDS
TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL MANAGEMENT,
INC. ("FICM") ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS WELLS FARGO
INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL
MANAGEMENT, INC. THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST
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.
(2) THE FUND COMMENCED OPERATIONS ON MAY 5, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
Money Market Trusts FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET TRUST (1)
(CONT.)
-----------------------
FOUR MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1996 1995 (2)
<S> <C> <C>
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.02)
--------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
========= =========
TOTAL RETURN (NOT ANNUALIZED) 5.43% 5.70%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,143,767 $286,863
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.18% 0.19%
Ratio of net investment income to average net assets 5.33% 5.70%
- -------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.55% 1.11%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.96% 4.78%
- -------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS THE MONEY MARKET FUND OF WESTCORE TRUST AND WAS
ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS COMMENCEMENT
OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF PACIFICA FUNDS
TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL MANAGEMENT,
INC. ("FICM") ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS WELLS FARGO
INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL
MANAGEMENT, INC. THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST
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.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(3) THE FUND COMMENCED OPERATIONS ON NOVEMBER 10, 1997.
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Trusts
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY
MARKET
TRUST (1) NATIONAL TAX-FREE
(CONT.) MONEY MARKET TRUST (3)
---------- --------------------------------
(UNAUDITED)
SIX MONTHS PERIOD
YEAR ENDED ENDED YEAR ENDED ENDED
MAY 31, SEPT. 30, MARCH 31, MARCH 31,
1995 1999 1999 1998
<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 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.02) (0.03) (0.01)
--------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED) 5.05% 1.54% 3.16% 1.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $290,483 $237,861 $233,546 $229,447
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.17% 0.20% 0.20% 0.20%
Ratio of net investment
income to average net
assets 5.06% 3.04% 3.09% 3.32%
- -------------------------------------------------------------------------
Ratio of expenses to
average net assets prior
to waived fees and
reimbursed expenses 1.07% 0.71% 0.68% 0.63%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.16% 2.53% 2.61% 2.89%
- -------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS THE MONEY MARKET FUND OF WESTCORE TRUST AND WAS
ADVISED BY FIRST INTERSTATE BANK OF OREGON, N.A. FROM ITS COMMENCEMENT
OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF PACIFICA FUNDS
TRUST ON OCTOBER 1, 1995, WHEN FIRST INTERSTATE CAPITAL MANAGEMENT,
INC. ("FICM") ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. IN
CONNECTION WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS
FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED AS WELLS FARGO
INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS CAPITAL
MANAGEMENT, INC. THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST
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.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MAY 31 TO SEPTEMBER 30.
(3) THE FUND COMMENCED OPERATIONS ON NOVEMBER 10, 1997.
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
Money Market Trusts 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 Money Market Trust and National Tax-Free Money Market
Trust, diversified series of the Company, and the California Tax-Free Money
Market Trust, a non-diversified series of the Company (each, a "Fund",
collectively, the "Funds").
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 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.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Trusts
- ------------------------------------------------------------------------
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered. Bond discounts are accreted and premiums are
amortized under provisions of the Internal Revenue Code of 1986, as amended (the
"Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and to take action to obtain additional collateral as necessary to maintain
market value equal to or greater than the resale price. The repurchase
agreements held in 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 California Tax-Free Money Market Trust had estimated net capital loss
carryforward at December 31, 1998 of $6,489 expiring in 2005 and $8,418 expiring
in 2006. 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.
39
<PAGE>
Money Market Trusts NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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 an annual rate of 0.50% of the average daily net assets of the
California Tax-Free Money Market Trust and 0.25% of the average daily net assets
of the Money Market Trust and National Tax-Free Money Market Trust. On
August 1, 1998, Wells Capital Management Incorporated ("WCM"), a wholly-owned
subsidiary of WFB, began acting as investment sub-advisor to the Funds. WCM is
entitled to receive from WFB, as compensation for its sub-advisory services to
the Funds, a monthly fee at the annual rate of 0.05% of the Funds' average daily
net assets up to $1 billion and 0.04% of the Funds' average daily net assets in
excess of $1 billion. WCM's minimum annual fee is $120,000 for each Fund. This
minimum annual fee does not increase the advisory fees paid by the Funds to WFB.
The Company has entered into a contract on behalf of the Fund with WFB,
whereby WFB is responsible for providing portfolio accounting services for the
Fund. Pursuant to the contract, WFB is entitled to a monthly base fee of $2,000
plus an annual fee of 0.07% of the first $50 million of the Fund's average daily
net assets, 0.045% of the next $50 million, and 0.02% of the Fund's average
daily net assets in excess of $100 million.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Trusts
- ------------------------------------------------------------------------
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
provided transfer agency services for the Funds. Under the transfer agency
contract, WFB was entitled to receive transfer agency fees at an annual rate of
0.02% of the average daily net assets of the Funds.
The Company has entered into contracts on behalf of the Funds with WFB,
whereby WFB has agreed to provide shareholder services for the Funds. Pursuant
to the contracts, WFB is entitled to receive shareholder servicing fees at an
annual rate of 0.20% of the average daily net assets of the Funds.
On March 25,1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB will act as
the sole Administrator of the Funds and is entitled to receive monthly fees at
an annual rate of 0.15% of the average daily net assets of the Funds. Prior to
March 25, 1999, the Company had entered into administration agreements on behalf
of the Funds whereby WFB as administrator and Stephens Inc. ("Stephens") as
co-administrator provided each Fund with administration services. 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 entered into a "defensive" Distribution Plan (the "Plan") on
behalf of the Funds. The Plan contemplates that, to the extent any portion of
the fees payable by a Fund pursuant to its servicing plan is deemed to be
"primarily intended to result in the sale of shares" of a Fund, such fees are
approved and payable pursuant to the Plan and in accordance with Rule 12b-1
under the 1940 Act. The maximum authorized fee under the Plan is 0.20% of each
Fund's average daily net assets. The Plan will not result in any separate
payment of fees by the Funds.
41
<PAGE>
Money Market Trusts NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the period ended September 30, 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 10 shares of the California
Tax-Free Money Market Trust, 27 shares of the Money Market Trust, and 1 share of
the National Tax-Free Money Market Trust.
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.
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 Trust was reorganized to form the Wells Fargo
California Tax-Free Money Market Trust. The Stagecoach Money Market Trust was
reorganized to form the Wells Fargo Money Market Trust. The Stagecoach National
Tax-Free Money Market Trust was reorganized to form the Wells Fargo National
Tax-Free Money Market Trust. 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.
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Trusts
- ------------------------------------------------------------------------
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 Trust 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 Trust 347,019,885 316,935 676,531
Money Market Trust 389,238,233 149,217 49,285
National Tax-Free Money Market Trust 145,936,079 128,765 175,993
</TABLE>
43
<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>
44
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services and/ or certain other services for the Stagecoach Funds. Wells
Capital Management Incorporated ("WCM") provides investment sub-advisory
services for certain Stagecoach Funds. The Funds are distributed by STEPHENS
INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and WCM are not affiliated with
Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Stagecoach Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-260-5969. Read the prospectus carefully before you invest or send money.
- -C- Stagecoach Funds
STAGECOACH FUNDS-Registered Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
LOGO SC MMT SAR (11/99)
