<PAGE>
STAGECOACH FUNDS-Registered Trademark-
Semi-Annual Report
MONEY MARKET
Fund
September 30, 1999
CLASS S
<PAGE>
Money Market Fund TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Money Market Fund............................................3
PORTFOLIO OF INVESTMENTS
Money Market Fund............................................5
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................11
Statement of Operations.....................................12
Statements of Changes in Net Assets.........................13
Financial Highlights........................................14
Notes to Financial Statements...............................18
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS..................24
LIST OF ABBREVIATIONS...........................................26
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
ii
<PAGE>
LETTER TO SHAREHOLDERS Money Market Fund
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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 Fund 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 Fund
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MONEY MARKET FUND - CLASS S
The Stagecoach Money Market Fund (the "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 Fund is managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has more than a decade of experience in managing taxable
money market mutual funds at First Interstate Bank and Union Capital Advisors.
He holds a B.A. in Finance from California State University,
Los Angeles.
PERFORMANCE SUMMARY
For the six-month period ended September 30, 1999, the Stagecoach Money Market
Fund's cumulative total return(1) was 1.88%. The seven-day current yield for the
Fund as of September 30, 1999, was 4.04%.
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 Fund performed favorably compared to its
benchmark because it maintained a weighted average maturity which was longer
than average.
3
<PAGE>
Money Market Fund INVESTMENT ADVISOR COMMENTARY
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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 Fund 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 Fund 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 Fund is neither insured nor guaranteed by the U.S. Government.
A portion of the Fund's distributions may be subject to federal, state,
and/or local taxes or the alternative minimum tax (AMT).
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these
reductions, the Fund's returns would have been lower. There is no guarantee
such reductions will continue.
An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
4
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PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
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<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>
5
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED)
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<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>
6
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
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<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>
7
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED)
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<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>
8
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
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<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>
9
<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>
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>
<TABLE>
<C> <S>
++ REPRESENTS COMMERCIAL PAPER SOLD WITHIN TERMS OF PRIVATE
PLACEMENT MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION
4(2) OF THE SECURITIES ACT OF 1933, THAT MAY BE RESOLD TO
QUALIFIED INSTITUTIONAL BUYERS. THIS SECURITY WAS DEEMED
LIQUID BY THE INVESTMENT ADVISER IN ACCORDANCE WITH
PROCEDURES APPROVED BY THE FUND'S BOARD OF DIRECTORS.
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR
FINANCIAL STATEMENT PURPOSES.
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES -
SEPTEMBER 30, 1999 (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND
<S> <C>
ASSETS
INVESTMENTS:
In securities, at market value and cost $11,656,499,606
Cash 1,995
RECEIVABLES
Interest 62,479,655
Organization expenses, net of amortization 2,995
Prepaid expenses 0
TOTAL ASSETS 11,718,984,251
LIABILITIES
Payables:
Distribution to shareholders 199,214
Due to distributor (Note 2) 1,290,053
Due to adviser (Note 2) 6,492,482
Other 537,685
TOTAL LIABILITIES 8,519,434
TOTAL NET ASSETS $11,710,464,817
NET ASSETS CONSIST OF:
Paid-in capital $11,710,829,082
Undistributed net realized gain (loss) on investments (364,265)
TOTAL NET ASSETS $11,710,464,817
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $10,300,342,017
Shares outstanding - Class A 10,299,962,747
Net asset value and offering price per share - Class A $ 1.00
Net assets - Class S $ 1,410,122,800
Shares outstanding - Class S 1,410,075,428
Net asset value and offering price per share - Class S $ 1.00
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
The accompanying notes are an integral part of these financial
statements.
</TABLE>
11
<PAGE>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS
Money Market Fund ENDED SEPTEMBER 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND
<S> <C>
INVESTMENT INCOME
Interest $ 283,606,138
TOTAL INVESTMENT INCOME 283,606,138
EXPENSES (NOTE 2)
Advisory fees 21,991,896
Administration fees 7,332,287
Custody fees 920,919
Shareholder servicing fees 16,171,387
Portfolio accounting fees 1,130,428
Transfer agency fees 5,459,450
Distribution fees 4,838,029
Organization costs 2,074
Legal and audit fees 354,660
Registration fees 564,833
Directors' fees 563
Shareholder reports 452,840
Other 156,253
Total Expenses 59,375,619
Less:
Waived fees and reimbursed expenses (13,805,083)
NET EXPENSES 45,570,536
NET INVESTMENT INCOME 238,035,602
Net realized gain (loss) on sale of investments 0
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 238,035,602
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
The accompanying notes are an integral part of these financial
statements.
</TABLE>
12
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 $ 238,035,602 $ 403,472,313
Net realized gain (loss) on sale of investments (18,538) 166,441
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 238,017,064 403,638,754
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (213,898,417) (359,769,107)
CLASS S (24,137,185) (43,703,206)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 2,814,654,711 5,518,795,093
Reinvestment of dividends - Class A 245,238,072 351,157,967
Cost of shares redeemed - Class A (1,897,346,133) (3,443,871,290)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A 1,162,546,650 2,426,081,770
Proceeds from shares sold - Class S 1,436,103,846 2,191,020,851
Reinvestment of dividends - Class S 27,679,726 43,441,848
Cost of shares redeemed - Class S (1,212,248,090) (2,027,066,523)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS S 251,535,482 207,396,176
INCREASE (DECREASE) IN NET ASSETS 1,414,063,594 2,633,644,387
NET ASSETS:
Beginning net assets 10,296,401,223 7,662,756,836
ENDING NET ASSETS $11,710,464,817 $10,296,401,223
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
The accompanying notes are an integral part of these financial
statements.
</TABLE>
13
<PAGE>
Money Market Fund 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
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% 4.79%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $10,300,342 $9,137,812
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 0.75% 0.75%
Ratio of net investment income to
average net assets 4.41% 4.67%
- -----------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 1.00% 0.93%
Ratio of net investment income (loss) to
average net assets prior to waived
fees and reimbursed expenses 4.16% 4.49%
- -----------------------------------------------------------------
</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.
14
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Fund
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS A (CONT.)
--------------------------------------------
SIX MONTHS NINE MONTHS
YEAR ENDED ENDED ENDED YEAR ENDED
MARCH 31, MARCH 31, SEPT. 30, DEC. 31,
1998 1997 (1) 1996 (2) 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 0.03 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.02 0.03 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.02) (0.03) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02) (0.03) (0.05)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 5.07% 2.36% 3.55% 5.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $6,711,584 $4,640,148 $3,799,908 $2,892,621
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.75% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets 4.95% 4.71% 4.66% 5.13%
- --------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.93% 0.90% 0.88% 0.83%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.77% 4.56% 4.53% 5.05%
- --------------------------------------------------------------------------
</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.
15
<PAGE>
Money Market Fund FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND (CONT.)
CLASS S
--------------------------
(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 0.04
Net realized gain (loss) on
investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.04
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.04)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.04)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
========== ==========
TOTAL RETURN (NOT ANNUALIZED) 1.88% 4.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,410,123 $1,158,589
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 1.42% 1.42%
Ratio of net investment income to
average net assets 3.74% 4.01%
- --------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 1.66% 1.62%
Ratio of net investment income (loss) to
average net assets prior to waived
fees and reimbursed expenses 3.50% 3.81%
- --------------------------------------------------------------------
</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.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Fund
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND (CONT.)
CLASS S (CONT.)
--------------------------------------------
SIX MONTHS NINE MONTHS PERIOD
YEAR ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, DEC. 31,
1998 1997 (1) 1996 (2) 1995 (3)
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.04 0.02 0.03 0.03
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.04 0.02 0.03 0.03
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.04) (0.02) (0.03) (0.03)
Distributions from net
realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.04) (0.02) (0.03) (0.03)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED) 4.37% 2.02% 3.03% 2.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $951,172 $707,781 $699,231 $618,899
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.42% 1.43% 1.42% 1.43%
Ratio of net investment
income to average net
assets 4.28% 4.02% 3.98% 4.40%
- --------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.62% 1.56% 1.55% 1.53%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.08% 3.89% 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.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Money Market Fund 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 Fund (the "Fund"), a diversified series of
the Company.
Prior to August 1, 1998 the Money Market Fund was known as the "Money Market
Mutual Fund".
Effective on September 6, 1996 the Pacifica Funds Trust was consolidated into
the Company in a tax-free exchange for shares of designated classes of the
corresponding Stagecoach fund.
The Fund offers Class A and Class S shares. The separate classes of shares
differ principally in the applicable sales charges (if any), distribution fees,
shareholder servicing fees and transfer agency fees. Shareholders of each class
also bear certain expenses that pertain to that particular class. All
shareholders bear the common expenses of the Fund and earn income from the
portfolio pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains are
allocated to each class pro rata based on the net assets of each class on the
date of distribution. No class has preferential dividend rights. Differences in
per share dividend rates generally result from the relative weightings of pro
rata income and realized gain and loss allocations and from differences in
separate class expenses, including distribution, shareholder servicing and
transfer agency fees.
The following significant accounting policies are consistently followed by the
Company in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
SECURITY VALUATION
The Fund invests only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolio may have maturities in excess of 397 days, but carry a demand feature
that permits the holder to tender the instruments back to the issuer at par
value prior to maturity.
The Fund uses the amortized cost method to value its portfolio securities. The
amortized cost method involves valuing a security at its cost, plus accretion of
discount or minus amortization of premium over the period until maturity, which
approximates market value. The Fund seeks to maintain a constant net asset value
of $1.00 per share, although there is no assurance that it will be able to do
so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered. 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 the Fund's Portfolio of
Investments. The Fund may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and to take action to obtain additional collateral as necessary to maintain
market value equal to or greater than the resale price. The repurchase
agreements held by the Fund are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Any distributions to shareholders from net
realized capital gains are declared and distributed at least annually.
FEDERAL INCOME TAXES
The Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
19
<PAGE>
Money Market Fund NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at December 31, 1998.
The Fund had an estimated net capital loss carryforward at December 31, 1998
of $345,728 that will expire in the year 2003. The Company's Board of Directors
intends to offset net capital gains with each capital loss carryforward, and no
capital gain distribution shall be made until each such carryforward has been
fully utilized or expires.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by
the Fund. The differences between the income or gains distributed on a book
versus tax basis are shown as excess distributions of net investment income and
net realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. The amount of distributions from net investment income
and net realized capital gains are determined in accordance with federal income
tax regulations, which may differ from GAAP. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Fund and its
initial registration with the Securities and Exchange Commission and with the
various states are amortized on a straight-line basis over 60 months from the
date the Fund commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into an advisory contract on behalf of the Fund with
WFB. Pursuant to the contract, WFB has agreed to provide the Fund with daily
portfolio management. Under the contract, WFB is entitled to be paid a monthly
advisory fee at an annual rate of 0.40% of the Fund's average daily net assets.
On August 1, 1998, Wells Capital Management Incorporated ("WCM"), a wholly-owned
subsidiary of WFB, began acting as investment sub-advisor to the Fund. WCM is
entitled to receive from WFB, as compensation for its sub-advisory services to
the Fund, a monthly fee at the annual rate of 0.05% of the Fund's average daily
net assets up to $1 billion and 0.04% of the Fund's average
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Money Market Fund
- ------------------------------------------------------------------------
daily net assets in excess of $1 billion. WCM's minimum annual fee is $120,000
for the Fund. This minimum annual fee does not increase the advisory fees paid
by the Fund 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. 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 the
Fund and each Class thereof. A fixed monthly fee, and a basis point fee of
0.0025% of the average annual daily net assets of the Fund will also be charged.
The Company, on behalf of the 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 Money Market Fund.
On June 4, 1999, the Company entered into a contract on behalf of the Fund
with Norwest Bank Minnesota, N.A. ("Norwest Bank"), whereby Norwest Bank is
responsible for providing custody services for the Fund. Pursuant to the
contract, 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 the Fund and to an
additional fixed fee for the Fund. 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 the Fund. WFB will continue to provide
sub-transfer agency services to the Fund. Prior to July 17, 1999 the Company had
entered into a contract on behalf of the Fund with WFB, whereby WFB provided
transfer agency services for the Fund. Under the prior transfer agency contract,
WFB was entitled to receive transfer agency fees at an annual rate of 0.10% of
the average daily net assets of the Fund.
The transfer agency fees paid on behalf of the Fund for the six months ended
September 30, 1999 were $5,049,893 for the Class A shares and $409,557 for the
Class S shares.
The Company has entered into a contract on behalf of the Fund with WFB,
whereby WFB has agreed to provide shareholder services for the Fund. Pursuant to
the contract, WFB is entitled to receive shareholder servicing fees at an annual
rate of 0.30% of the average daily net assets of the Class A shares of the Fund
and 0.25% of the average daily net assets of the Class S shares of the Fund.
21
<PAGE>
Money Market Fund NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
Shareholder servicing fees paid on behalf of the Fund for the six months ended
September 30, 1999 were $14,558,710 for the Class A shares and $1,612,677 for
the Class S shares.
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Fund. Under the Administration Agreement, WFB will act as
sole Administrator of the Fund and is entitled to receive monthly fees at an
annual rate of 0.15% of the average daily net assets of the Fund. Prior to
March 25, 1999, the Company had entered into an administration agreement on
behalf of the Fund whereby WFB as administrator and Stephens Inc. ("Stephens")
as co-administrator provided the Fund 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 the Fund's average daily net assets.
The Company has adopted separate Distribution Plans for Class A and Class S
shares of the Fund pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan").
The Plan for Class A shares of the Fund provides that the Fund 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 the Class A shares of the
Fund.
Under the Plan for Class S shares of the Fund, the Fund may pay to Stephens,
as compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.75% of the
average daily net assets attributable to its Class S shares.
The Fund may participate in joint distribution activities with other Funds, in
which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
Distribution fees paid on behalf of the Fund for the six months ended
September 30, 1999 were $0 for the Class A shares and $4,838,029 for the
Class S shares.
The registration fees paid on behalf of the Fund for the six months ended
September 30, 1999 were $496,574 for the Class A shares and $68,259 for the
Class S shares.
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 13,266 shares of the Fund.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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, the
Fund was authorized to issue 10 billion shares of $0.001 par value capital stock
for each class of shares. Capital shares are issued and redeemed at a constant
$1.00 net asset value as disclosed in the Statement of Changes in Net Assets.
Capital share transactions for the Fund were as follows:
<TABLE>
<CAPTION>
MONEY MARKET FUND
-------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS 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>
4. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Fund into a new portfolio 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 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. 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.
23
<PAGE>
Money Market Fund NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS
The required majority of shareholders of the Fund voted to approve the
reorganization of the 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, the
Money Market Fund 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>
Money Market 5,218,145,844 210,462,140 548,126,096
</TABLE>
24
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
25
<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>
26
<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 MMS SAR (11/99)
