<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Annual Report
MONEY MARKET
Funds
National Tax-Free Money Market Fund
Prime Money Market Fund
Treasury Plus Money Market Fund
Institutional Class
March 31, 1999
<PAGE>
Money Market Funds TABLE OF CONTENTS
- ------------------------------------------------------------------------
LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Prime Money Market Fund......................................3
Treasury Plus Money Market Fund..............................3
National Tax-Free Money Market Fund..........................6
PORTFOLIOS OF INVESTMENTS
National Tax-Free Money Market Fund..........................8
Prime Money Market Fund.....................................14
Treasury Plus Money Market Fund.............................18
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................20
Statement of Operations.....................................21
Statements of Changes in Net Assets.........................22
Financial Highlights........................................24
Notes to Financial Statements...............................33
INDEPENDENT AUDITORS' REPORT....................................42
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
i
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
<PAGE>
LETTER TO SHAREHOLDERS Money Market Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
We're pleased to provide you with this annual report for the period ended
March 31, 1999. The report provides information about your investment over the
12-month period, including economic and market trends, a performance summary, a
portfolio review and a strategic outlook.
The Stagecoach Funds experienced another year of significant growth, with net
assets increasing from $25 billion to $29 billion during the 12-month period
ended March 31, 1999. We believe our success can be partly attributed to the
confidence and support of our shareholders generated by the continued positive
performance of many of the Funds. Of course, we'll do our best to provide
prudent management to maintain and earn that confidence.
The 12-month period that ended March 31, 1999 was marked by significant
volatility. Stocks marched steadily upward early in the period, but later
surrendered some of those gains during a sell-off in the stock market last
summer. Last summer and fall, global financial turmoil disrupted the U.S.
financial markets, but the economy still benefited from overseas flight to
capital and aggressive monetary easing by the Federal Reserve Board that drove
interest rates down to historic lows. By the end of the year, the stock market
had set new highs as broad stock indexes were propelled higher by a series of
upbeat earnings reports, and the economy's two-tiered performance produced solid
economic growth. Overall, bond yields are significantly lower than they were a
year ago, and fundamentals still point toward healthy growth during the balance
of 1999. The combination of subdued inflation, moderating economic growth and
strong foreign demand should set the stage for lower interest rates.
During the 12-month period ended March 31, 1999, stocks, as measured by the
S&P 500 Index,(1) returned 18.49%. The U.S. Government bond market increased
1
<PAGE>
Money Market Funds LETTER TO SHAREHOLDERS
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7.01% as measured by the Lehman Brothers Long Government Bond Index(2) during
the period. Most shorter-dated money market yields dropped late in the period,
while yields on longer-dated papers rose.
According to the Investment Company Institute, an estimated 44 million U.S.
households, or 77.3 million individual investors, owned mutual funds in 1998.
Many of these investors have benefited from unprecedented growth in the market.
While the latest signs of economic strength are positive, investors should
manage their expectations. The challenges of investing in today's markets make
mutual funds one of the most popular investment vehicles. We recommend that you
continually review your investment portfolio with your financial consultant to
determine an appropriate mix of investments to meet your ongoing needs.
Over the years, the Stagecoach Funds have built a reputation for innovation,
leadership and commitment to investors. We understand you have a variety of
investment options and we appreciate your confidence in selecting us to help you
meet your financial goals. Thank you again for your continued investment with
the Stagecoach Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President of
Stagecoach Funds
1 The "S&P 500 Index" is a trademark of the Standard and Poor's Corporation. The
S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
2 The Lehman Brothers Long Government Bond Index is an unmanaged index composed
of U.S. Treasury bonds with 20-year or longer maturities.
2
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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PRIME MONEY MARKET FUND - INSTITUTIONAL CLASS
TREASURY PLUS MONEY MARKET FUND - INSTITUTIONAL CLASS
TWO STAGECOACH MONEY MARKET FUNDS (EACH, A "FUND," COLLECTIVELY, THE "FUNDS")
WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach Prime Money Market Fund seeks to provide investors with
maximized current income to the extent consistent with preservation of capital
and maintenance of liquidity.
The Stagecoach Treasury Plus Money Market Fund seeks to provide investors with
current income and stability of principal. The name of the Fund changed from
Stagecoach Treasury Money Market Mutual Fund on August 1, 1998.
The Funds are managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has more than a decade of experience in managing taxable
money market mutual funds at First Interstate Bank and Union Capital Advisors.
He holds a B.A. in Finance from California State University, Los Angeles.
PERFORMANCE SUMMARY
For the 12-month period ending March 31, 1999, the Stagecoach Money Market
Funds' cumulative total returns were as follows:
- --------------------------------------------------
<TABLE>
<S> <C>
PRIME MONEY MARKET FUND 5.31%
TREASURY PLUS MONEY MARKET FUND 5.04%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of March
31, 1999, were as follows:
- --------------------------------------------------
<TABLE>
<S> <C>
PRIME MONEY MARKET FUND 4.79%
TREASURY PLUS MONEY MARKET FUND 4.64%
</TABLE>
3
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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Keep in mind that past performance is no guarantee of future results.
PORTFOLIO REVIEW
Throughout the period, there were several events that affected the financial
markets. Perhaps the most significant was the series of interest rate cuts by
the Federal Reserve Board (the Fed) late in 1998. These cuts were a result of
serious credit/liquidity problems overseas and problems with several large U.S.
hedge funds. It was clear the Fed was committed to maintaining liquidity in the
markets by lowering interest rates. By adding later-dated securities to our
portfolios, we were able to maintain competitive yields in the low interest rate
environment.
The Funds always maintain a core position in repurchase agreements and other
short-dated securities when they are trading at the upper end of their expected
range.
STRATEGIC OUTLOOK
With international and domestic markets relatively stable and inflation under
control, interest rates are expected to remain in a fairly narrow trading range.
However, as proven in late 1998, the Fed stands ready to provide necessary
liquidity by further lowering interest rates if global markets continue to
experience credit/ liquidity problems. The Funds are well positioned given
current international economic conditions and low interest rates. We believe
interest rates may remain unchanged at least until year-end, and we will
maintain the Funds' longer than average maturity structure. We believe it's
prudent to focus more on credit quality, stability, capital preservation and
liquidity, rather than purely on yield.
Figures quoted represent past performance, which is no guarantee of future
results. The Funds are neither insured nor guaranteed by the U.S. Government.
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Funds' returns would have been lower. There is no guarantee such reductions
will continue.
4
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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An investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Funds seek to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Funds.
5
<PAGE>
Money Market Funds INVESTMENT ADVISOR COMMENTARY
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NATIONAL TAX-FREE MONEY MARKET FUND - INSTITUTIONAL CLASS
The Stagecoach National Tax-Free Money Market Fund seeks to provide investors
with a high level of income exempt from federal income tax, while preserving
capital and liquidity.
The Fund is managed by Kevin Shaughnessy of Wells Capital Management
Incorporated. Mr. Shaughnessy joined Wells Fargo Bank in 1996 from Lehman
Brothers. He holds a B.S. degree in Business Administration and an M.B.A. in
Finance from California State University, Hayward. Mr. Shaughnessy has more than
10 years of experience in the investment industry and is a Chartered Financial
Analyst candidate.
PERFORMANCE SUMMARY
The cumulative total return for the 12-month period ended March 31, 1999, for
the Stagecoach National Tax-Free Money Market Fund was 3.01%. The seven-day
current yield for the Stagecoach National Tax-Free Money Market Fund as of March
31, 1999, was 2.86%.
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, in order to match a 2.86% tax-free
yield, an investor in the maximum 39.60% federal income tax bracket would need
to earn 4.74% on a taxable investment. Keep in mind that past performance is no
guarantee of future results.
PORTFOLIO REVIEW
As a result of the low interest rate environment and in anticipation of an
interest rate decrease by the Federal Reserve Board, we lengthened each Fund's
weighted average maturity early in the 12-month period. Weighted average
maturity is an indication of a fund's sensitivity to interest rates.
Considering seasonal influences in the market, our strategy to increase
maturity early in the period was made in an attempt to capture higher yields
offered by securities such as one-year tax-exempt notes and commercial paper. In
addition, we decreased our exposure
6
<PAGE>
INVESTMENT ADVISOR COMMENTARY Money Market Funds
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to variable-rate securities. During the first quarter of 1999, most
shorter-dated money market yields dropped, while yields on longer-dated paper
rose. Yields were lower in January and February, while slightly higher in March.
In anticipation of shareholders drawing on their funds during tax season, we
shortened maturities late in the period.
STRATEGIC OUTLOOK
Since yields have already declined in the money fund market, we will continue
to maintain longer maturities in our Funds and will increase our fixed-rate
exposure if we feel security prices are attractive. We believe the Federal
Reserve Board will remain neutral in its outlook toward interest rates. With the
expectation that short-term issuance of notes will remain thin, we will focus on
maintaining our strong position in liquid paper to handle cash outflows.
Overall, we feel the Funds are positioned well given the international
economic condition and low interest rate environment. We intend to maintain our
emphasis on preservation of principal, high liquidity, credit quality and the
highest possible tax-exempt returns for our clients.
Figures quoted represent past performance, which is no guarantee of future
results. The Fund is neither insured nor guaranteed by the U.S. Government.
A portion of the Fund's distributions may be subject to federal, state, and/ or
local taxes or the alternative minimum tax (AMT).
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Fund's returns would have been lower. There is no guarantee such reductions
will continue.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.
7
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES - 90.62%
ALABAMA - 1.46%
$ 1,300,000 Stevenson AL IDA The Mead Corporation Series C 3.35 % 11/01/33 $ 1,300,000
ARIZONA - 3.38%
$ 2,000,000 Arizona School District Tax Antic Financing
Project COP Series A 4.10 % 07/30/99 $ 2,003,377
1,000,000 Arizona Tax Antic Notes COP Series B 4.20 07/30/99 1,004,107
--------------
$ 3,007,484
CALIFORNIA - 3.38%
$ 2,000,000 California Higher Education Authority Series
E-5 3.80 % 12/01/25 $ 2,000,000
1,000,000 California State PCFA Stanislaus Project AMT
LOC - Swiss Bank 3.05 12/01/17 1,000,000
--------------
$ 3,000,000
COLORADO - 3.38%
$ 2,500,000 Colorado State HFFA Revenue North Colorado
Medical Center 3.00 % 05/15/20 $ 2,500,000
500,000 Douglas County CO MFHR Autumn Chase Project 3.10 07/01/06 500,000
--------------
$ 3,000,000
FLORIDA - 9.98%
$ 1,875,000 Florida State COP Series 117 3.09 % 07/01/27 $ 1,875,000
1,000,000 Indian River FL CP 2.90 05/03/99 1,000,000
3,500,000 Palm Beach FL CP 2.85 06/01/99 3,500,000
2,495,000 Tampa FL Sports Authority Revenue Series 98 3.05 01/01/27 2,495,000
--------------
$ 8,870,000
</TABLE>
8
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
GEORGIA - 5.30%
$ 2,000,000 Dougherty County GA School District 3.90 % 03/01/00 $ 2,014,298
700,000 Georgia Municipal Gas Authority Revenue Gas
Portfolio II Project Series A 2.90 11/01/06 700,000
2,000,000 Georgia Municipal Gas Authority Revenue Gas
Portfolio II Project Series C 2.90 01/01/08 2,000,000
--------------
$ 4,714,298
HAWAII - 2.53%
$ 2,250,000 Hawaii State GO 3.16 % 03/01/14 $ 2,250,000
ILLINOIS - 5.19%
$ 2,310,000 Illinois HFFA 2.80 % 05/19/99 $ 2,310,000
1,300,000 Illinois HFFA Loyola University Health System
Series B 2.90 07/01/24 1,300,000
1,000,000 Illinois State Toll Highway Authority Revenue
Series B 3.05 01/01/17 1,000,000
--------------
$ 4,610,000
INDIANA - 6.48%
$ 1,000,000 Fort Wayne IN Hospital Authority Revenue
Parkview Memorial Hospital Series B 3.00 % 01/01/16 $ 1,000,000
3,500,000 Indiana State Environmental Development
Financing Authority Revenue 3.00 08/05/99 3,500,000
360,000 Indianapolis IN Resource Recovery Revenue 3.35 12/01/16 360,000
900,000 Princeton IN PCR PSI Energy Incorporated 3.30 04/01/22 900,000
--------------
$ 5,760,000
</TABLE>
9
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
IOWA - 1.35%
$ 1,200,000 Iowa Financing Authority 3.35 % 05/01/25 $ 1,200,000
LOUISIANA - 3.94%
$ 1,000,000 De Soto Parish LA PCR Central Louisiana
Electric Company Series A 2.95 % 07/01/18 $ 1,000,000
1,500,000 Plaquemines LA Port Harbor & Terminal District 3.60 03/15/06 1,500,000
1,000,000 St. Charles Parish LA PCR Shell Oil Company
Norco Project 3.30 09/01/23 1,000,000
--------------
$ 3,500,000
MAINE - 3.99%
$ 3,545,000 Regular Waste ME Solid Waste Recovery Revenue
Series M 3.15 % 07/01/04 $ 3,545,000
MARYLAND - 5.40%
$ 2,000,000 Maryland State GO 3.07 % 08/01/12 $ 2,000,000
2,800,000 Maryland State GO CP 3.10 04/21/99 2,800,000
--------------
$ 4,800,000
MICHIGAN - 3.71%
$ 2,800,000 Michigan State GO CP 2.60 % 05/05/99 $ 2,800,000
500,000 Michigan State Strategic Fund Limited
Obligation Revenue 3.30 09/01/30 500,000
--------------
$ 3,300,000
MISSOURI - 1.12%
$ 1,000,000 Missouri State Health & Educational Facilities
Revenue St. Francis Medical Center LOC -
Credit Local De France Series A 3.15 % 06/01/26 $ 1,000,000
</TABLE>
10
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
NEW YORK - 5.42%
$ 1,200,000 New York City GO Series B-2 3.30 % 08/15/03 $ 1,200,000
1,400,000 New York NY GO Subseries A-8 3.30 08/01/18 1,400,000
1,215,000 New York State Subseries A-8 LOC - Sanwa Bank
Ltd 3.30 08/01/17 1,215,000
1,000,000 Suffolk County NY Industrial Development
Revenue Target Rock Corporation 2.80 02/01/07 1,000,000
--------------
$ 4,815,000
NORTH CAROLINA - 3.26%
$ 1,800,000 Greensboro NC Enterprise System Revenue Series
B 3.10 % 06/01/24 $ 1,800,000
700,000 North Carolina Community Medical Care Revenue
Baptist Hospitals Project Series B 3.05 06/01/22 700,000
300,000 North Carolina Medical Care Community Hospital
Revenue Moses H. Cone Memorial Hospital
Project 3.10 09/01/02 300,000
100,000 Wake County NC PCR Carolina Power & Light
Company Project 3.15 03/01/17 100,000
--------------
$ 2,900,000
OHIO - 1.12%
$ 1,000,000 Ohio Air Quality 2.90 % 05/03/99 $ 1,000,000
PENNSYLVANIA - 3.49%
$ 2,000,000 Allegheny County PA International Airport
Revenue MBIA Insured 5.00 % 01/01/00 $ 2,025,723
1,050,000 Northampton County PA Higher Education
Authority Revenue MBIA Insured 6.75 11/15/99 1,074,024
--------------
$ 3,099,747
</TABLE>
11
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
SOUTH CAROLINA - 2.14%
$ 1,500,000 South Carolina Educational Facility Authority
for Private Non-profit Furman University
Project Series B 3.00 % 10/01/26 $ 1,500,000
400,000 South Carolina Jobs Economic Development
Authority Hospital Facility Tuomey Regional
Medical Center Series B 3.00 11/01/25 400,000
--------------
$ 1,900,000
TEXAS - 3.94%
$ 2,500,000 Brazos TX Higher Education Authority Series B-1 3.00 % 06/01/23 $ 2,500,000
1,000,000 Panhandle-Plains TX Higher Education Student
Loan Revenue Series B 3.00 06/01/23 1,000,000
--------------
$ 3,500,000
UTAH - 0.56%
$ 500,000 Utah Student Loan Revenue Series A 3.10 % 11/01/23 $ 500,000
VIRGINIA - 3.14%
$ 2,787,000 Hampton VA Redevelopment & MFHR Avalon Pointe
Project FNMA Collateralized 3.00 % 06/15/26 $ 2,787,000
</TABLE>
12
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
WASHINGTON - 6.51%
$ 815,000 Washington State GO Series E 5.75 % 07/01/99 $ 819,147
2,000,000 Washington State Healthcare Facility Authority
Revenue Fred Hutchinson Cancer Center 3.35 01/01/29 2,000,000
1,200,000 Washington State Healthcare Facility Authority
Revenue Sisters Providence Series C 3.15 10/01/05 1,200,000
1,680,000 Washington State Power Supply Revenue Nuclear
Project No. 3 Series B 7.25 07/01/15 1,764,627
--------------
$ 5,783,774
WISCONSIN - 0.45%
$ 400,000 Oak Creek WI PCR Wisconsin Electric Power
Company Project 3.00 % 08/01/16 $ 400,000
--------------
TOTAL MUNICIPAL SECURITIES $ 80,542,303
(Cost $80,542,303)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $80,542,303)* 90.62% $ 80,542,303
(Notes 1 and 3)
Other Assets and Liabilities, Net 9.38 8,336,284
------ --------------
TOTAL NET ASSETS 100.00% $ 88,878,587
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</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.
13
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 10.61%
$90,000,000 Abbey National Treasury Service 4.80 % 07/15/99 $ 89,983,574
75,000,000 Bank of America Corporation 4.83 04/27/99 74,998,451
40,000,000 Commercial Bank 4.82 07/13/99 39,993,326
30,000,000 First Union National Bank 4.87 09/28/99 30,000,000
75,000,000 Key Bank 4.83 10/04/99 74,985,081
40,000,000 National Rural Utilities 4.98 11/23/99 40,000,000
25,000,000 Sigma Finance 5.13 08/23/99 25,000,000
35,000,000 Sigma Finance 5.20 08/26/99 35,000,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 409,960,432
(Cost $409,960,432)
COMMERCIAL PAPER - 42.01%
$50,000,000 Abbey National Corporation of North America 4.83 %# 05/07/99 $ 49,758,500
75,000,000 Associates First Capital 4.83 # 05/11/99 74,597,500
25,000,000 Atlantis One Funding Corporation 4.81 # 04/27/99 24,909,542
27,274,000 Atlantis One Funding Corporation 4.85 # 05/14/99 27,110,788
100,000,000 Atlantis One Funding Corporation 5.05 # 04/23/99 99,691,389
30,000,000 Bank of America Corporation 4.85 # 08/20/99 29,430,125
50,000,000 Bank of America Corporation 4.85 # 11/10/99 48,497,847
50,000,000 CC USA Incorporated 4.85 # 06/11/99 49,521,736
25,000,000 Commercial Credit Company++ 4.87 # 05/07/99 24,879,500
75,000,000 Corporate Asset Funding++ 4.83 # 04/21/99 74,798,750
24,978,000 Enterprise Funding Corporation++ 4.85 # 06/07/99 24,752,539
30,000,000 Ford Motor Credit Company 4.83 # 06/15/99 29,698,125
50,000,000 Ford Motor Credit Corporation 4.83 # 04/16/99 49,899,375
70,000,000 Ford Motor Credit Corporation 4.85 # 06/28/99 69,170,111
15,000,000 General Electric Capital Services Incorporated 4.67 # 04/20/99 14,963,029
25,000,000 General Electric Capital Services Incorporated 4.78 # 07/14/99 24,654,778
9,000,000 General Electric Capital Services Incorporated 4.82 # 07/08/99 8,881,910
40,000,000 Goldman Sachs Group LP 4.86 # 04/07/99 39,967,600
50,000,000 Goldman Sachs Group LP 4.97 # 04/01/99 50,000,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$26,432,000 Greenwich Funding Corporation++ 4.86 %# 06/07/99 $ 26,192,923
50,406,000 Greenwich Funding Corporation++ 4.87 # 05/07/99 50,160,523
50,000,000 Morgan Stanley Dean Witter 4.86 # 05/14/99 49,709,750
80,000,000 Morgan Stanley Dean Witter 4.87 # 04/08/99 79,924,244
50,000,000 National City Credit Corporation 4.82 # 05/04/99 49,779,083
30,000,000 National City Credit Corporation 4.84 # 04/07/99 29,975,800
29,641,000 Park Avenue Receivables Corporation++ 4.84 # 04/14/99 29,589,194
75,000,000 Preferred Receivables Funding++ 4.86 # 05/21/99 74,493,750
73,416,000 Riverwoods Funding Corporation 4.86 # 05/14/99 72,989,820
50,000,000 Salomon Smith Barney Holdings 4.80 # 04/20/99 49,873,333
31,000,000 Sheffield Receivables Corporation++ 4.87 # 04/19/99 30,924,515
20,600,000 Sheffield Receivables Corporation++ 4.87 # 04/22/99 20,541,479
40,000,000 Sigma Finance Corporation 4.84 # 04/30/99 39,844,044
50,000,000 Variable Funding Corporation++ 4.82 # 05/13/99 49,716,500
50,000,000 WCP Funding Incorporated++ 4.83 # 05/03/99 49,785,333
20,475,000 WCP Funding Incorporated++ 4.86 # 05/07/99 20,375,492
45,602,000 Windmill Funding Corporation++ 4.85 # 04/14/99 45,522,133
9,000,000 Windmill Funding Corporation++ 4.85 # 05/12/99 8,950,288
29,300,000 Xerox Corporation 4.70 # 04/16/99 29,242,621
--------------
TOTAL COMMERCIAL PAPER $1,622,773,969
(Cost $1,622,773,969)
CORPORATE BONDS & NOTES - 14.63%
$15,000,000 Abbey National Treasury Service 5.64 % 07/15/99 $ 15,012,866
25,000,000 Bank of America Corporation 5.00 01/06/00 24,996,299
10,000,000 FCC National Bank 5.67 06/01/99 9,998,000
100,000,000 First Union National Bank 5.25 09/17/99 100,000,000
50,000,000 Huntington National Bank 4.97 10/26/99 49,991,592
40,000,000 Huntington National Bank 5.74 05/05/99 39,998,394
50,000,000 IBM Credit Corporation 5.27 04/07/00 49,964,318
50,000,000 JP Morgan & Company Incorporated 4.86 09/15/99 50,000,000
50,000,000 Sigma Finance Incorporated 5.04 02/02/00 50,000,000
30,000,000 Sigma Finance Incorporated 5.23 03/29/00 30,000,000
</TABLE>
15
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
$50,000,000 CC USA Incorporated 5.78 % 06/11/99 $ 49,998,065
25,000,000 Centari Corporation 5.75 04/23/99 25,000,000
30,000,000 First National Bank 5.73 05/19/99 29,996,970
40,000,000 IBM Credit Corporation 4.67 10/29/99 39,990,173
--------------
TOTAL CORPORATE BONDS & NOTES $ 564,946,677
(Cost $564,946,677)
CERTIFICATES OF DEPOSIT - 21.29%
$50,000,000 Abn-Amro Bank NV 5.30 % 03/09/00 $ 49,981,928
29,000,000 Barclays Bank PLC 5.79 05/04/99 29,001,127
34,250,000 Bayerische Hypoverins Bank 5.27 03/03/00 34,225,674
50,000,000 Beta Finance 5.15 02/18/00 49,989,627
20,000,000 Centari Corporation 5.78 04/19/99 20,000,000
30,000,000 Chase Manhattan Bank 4.87 04/21/99 30,000,000
30,000,000 Chase Manhattan Bank 5.06 05/12/99 30,000,000
65,000,000 Chase Manhattan Bank 5.10 04/20/99 65,000,000
30,000,000 CIBC 5.04 06/29/99 30,000,000
100,000,000 CIBC 5.07 04/13/99 100,000,000
90,000,000 Deutsche Bank 4.88 05/04/99 90,000,000
30,000,000 FCC National Bank 4.82 04/22/99 30,000,000
60,000,000 National Westminster Bank 5.13 03/17/00 59,986,153
50,000,000 National Westminster Bank 5.14 04/14/00 49,975,044
9,100,000 Northern Trust Company 4.78 04/05/99 9,100,000
50,000,000 Old Kent Bank 5.00 08/18/99 50,000,000
25,000,000 Swiss Bank 5.75 05/07/99 24,998,819
50,000,000 U.S. Bank N.A. 4.86 04/28/99 50,000,000
20,000,000 U.S. Bank N.A. 4.89 05/10/99 20,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT $ 822,258,372
(Cost $822,258,372)
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 12.41%
$219,989,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 219,989,000
40,798,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 40,798,000
218,754,000 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 218,754,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 479,541,000
(Cost $479,541,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $3,899,480,450)* (Note 1) 100.95% $3,899,480,450
Other Assets and Liabilities, Net (0.95) (36,567,316)
------ --------------
TOTAL NET ASSETS 100.00% $3,862,913,134
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</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.
17
<PAGE>
Treasury Plus Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 57.61%
U.S. TREASURY BILLS - 29.84%
$50,000,000 U.S. Treasury Bills 4.39 %# 05/27/99 $ 49,655,055
75,000,000 U.S. Treasury Bills 4.40 # 06/10/99 74,354,688
250,000,000 U.S. Treasury Bills 4.54 # 04/22/99 249,307,583
275,000,000 U.S. Treasury Bills 4.58 # 04/19/99 274,337,563
--------------
$ 647,654,889
U.S. TREASURY NOTES - 27.77%
$20,000,000 U.S. Treasury Notes 5.38 % 01/31/00 $ 20,074,989
50,000,000 U.S. Treasury Notes 5.50 02/29/00 50,292,250
50,000,000 U.S. Treasury Notes 5.63 11/30/99 50,328,335
30,000,000 U.S. Treasury Notes 5.88 08/31/99 30,085,890
60,000,000 U.S. Treasury Notes 6.00 06/30/99 60,237,737
69,300,000 U.S. Treasury Notes 6.38 04/30/99 69,343,387
60,000,000 U.S. Treasury Notes 6.38 07/15/99 60,161,614
84,635,000 U.S. Treasury Notes 6.50 04/30/99 84,698,665
50,000,000 U.S. Treasury Notes 6.75 06/30/99 50,252,783
25,000,000 U.S. Treasury Notes 7.00 04/15/99 25,014,003
50,000,000 U.S. Treasury Notes 7.13 02/29/00 50,986,190
50,000,000 U.S. Treasury Notes 7.75 01/31/00 51,194,716
--------------
$ 602,670,559
TOTAL U.S. TREASURY SECURITIES $1,250,325,448
(Cost $1,250,325,448)
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 42.32%
$138,620,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 % 04/01/99 $ 138,620,000
208,190,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.90 04/01/99 208,190,000
290,697,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 290,697,000
280,947,573 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 280,947,573
--------------
TOTAL REPURCHASE AGREEMENTS $ 918,454,573
(Cost $918,454,573)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,168,780,021)* 99.93% $2,168,780,021
(Notes 1 and 3)
Other Assets and Liabilities, Net 0.07 1,554,944
------ --------------
TOTAL NET ASSETS 100.00% $2,170,334,965
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Money Market Funds STATEMENT OF ASSETS AND LIABILITIES - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL
TAX-FREE PRIME TREASURY PLUS
MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $479,541,000 for the Prime Money
Market Fund and $918,454,573 for the
Treasury Plus Money Market Fund) $80,542,303 $3,899,480,450 $2,168,780,021
Cash 566,915 69,313 12,037
RECEIVABLES
Interest 436,185 30,030,609 10,119,139
Investment securities sold 8,950,000 0 0
Organization expenses, net of
amortization 14,179 20,485 37,822
Prepaid expenses 15,575 13,585 11,420
TOTAL ASSETS 90,525,157 3,929,614,442 2,178,960,439
LIABILITIES
Payables:
Investment securities purchased 1,300,000 49,975,044 0
Distribution to shareholders 186,740 14,820,663 7,316,571
Due to distributor (Note 2) 3,061 307,109 225,453
Due to adviser (Note 2) 49,764 1,180,252 753,702
Other 107,005 418,240 329,748
TOTAL LIABILITIES 1,646,570 66,701,308 8,625,474
TOTAL NET ASSETS $88,878,587 $3,862,913,134 $2,170,334,965
NET ASSETS CONSIST OF:
Paid-in capital $88,889,603 $3,862,876,341 $2,170,334,963
Undistributed net realized gain (loss)
on investments (11,016) 36,793 2
TOTAL NET ASSETS $88,878,587 $3,862,913,134 $2,170,334,965
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $64,949,916 $ 577,213,058 $ 543,902,576
Shares outstanding - Class A 64,954,149 577,312,890 543,944,617
Net asset value and offering price per
share - Class A $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A $ 467,150,923 $ 100,108,945
Shares outstanding - Administrative
Class N/A 467,089,055 100,094,495
Net asset value and offering price per
share - Administrative Class N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A $ 584,451,000
Shares outstanding - Class E N/A N/A 584,444,940
Net asset value and offering price per
share - Class E N/A N/A $ 1.00
Net assets - Institutional Class $23,928,671 $1,704,093,157 $ 493,986,652
Shares outstanding - Institutional Class 23,935,454 1,704,157,744 494,123,741
Net asset value and offering price per
share - Institutional Class $ 1.00 $ 1.00 $ 1.00
Net assets - Service Class N/A $1,114,455,996 $ 447,885,792
Shares outstanding - Service Class N/A 1,114,564,632 447,903,025
Net asset value and offering price per
share - Service Class N/A $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
STATEMENT OF OPERATIONS -
FOR THE YEAR ENDED MARCH 31, 1999 Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TREASURY
TAX-FREE PRIME PLUS
MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 3,367,704 $165,658,866 $113,540,868
TOTAL INVESTMENT INCOME 3,367,704 165,658,866 113,540,868
EXPENSES (NOTE 2)
Advisory fees 308,938 7,637,553 5,484,252
Administration fees 72,162 2,138,516 1,535,588
Custody fees 17,216 510,193 366,353
Shareholder servicing fees 158,092 4,180,782 4,437,186
Portfolio accounting fees 80,957 672,501 500,237
Transfer agency fees 71,207 1,737,787 1,692,060
Distribution fees 2,407 19,201 12,962
Organization costs 8,800 13,660 25,216
Legal and audit fees 22,314 216,330 206,661
Registration fees 36,072 390,714 256,359
Directors' fees 2,531 2,746 2,746
Shareholder reports 61,591 56,565 130,621
Other 7,571 107,842 109,350
Total Expenses 849,858 17,684,390 14,759,591
Less:
Waived fees and reimbursed expenses (288,766) (4,583,494) (3,680,209)
NET EXPENSES 561,092 13,100,896 11,079,382
NET INVESTMENT INCOME 2,806,612 152,557,970 102,461,486
Net realized gain (loss) on sale of
investments (327) 94,589 94,206
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,806,285 $152,652,559 $102,555,692
- --------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
-------------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,806,612 $ 2,217,909
Net realized gain (loss) on sale of
investments (327) (10,252)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,806,285 2,207,657
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,624,736) (1,076,631)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS (1,181,876) (1,141,278)(4)
SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS 0 0(4)
SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 234,230,273 243,931,011
Reinvestment of dividends - Class A 1,622,320 999,129
Cost of shares redeemed - Class A (230,195,239) (220,887,156)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 5,657,354 24,042,984
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class 506,716,299 436,296,534(4)
Reinvestment of dividends -
Institutional Class 214,647 226,125(4)
Cost of shares redeemed -
Institutional Class (537,304,518) (382,213,633)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (30,373,572) 54,309,026(4)
Proceeds from shares sold - Service
Class N/A N/A
Reinvestment of dividends - Service
Class N/A N/A
Cost of shares redeemed - Service
Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS (24,716,545) 78,341,758
NET ASSETS:
Beginning net assets 113,595,132 35,253,374
ENDING NET ASSETS $ 88,878,587 $ 113,595,132
- ----------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(3) "PROCEEDS FROM SHARES SOLD" INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
----------------------------------- -----------------------------------
FOR THE FOR THE
FOR THE YEAR ENDED FOR THE YEAR ENDED
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (2) MARCH 31, 1999 1998 (3)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 152,557,970 $ 89,057,989 $ 102,461,486 $ 92,254,980
Net realized gain (loss) on sale of
investments 94,589 205,613 94,206 104,070
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 152,652,559 89,263,602 102,555,692 92,359,050
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (27,896,647) (17,766,272) (21,822,781) (7,909,738)
ADMINISTRATIVE CLASS (28,624,366) (11,412,448)(4) (6,110,905) (2,844,289)(4)
CLASS E N/A N/A (28,595,708) (35,555,799)
INSTITUTIONAL CLASS (55,769,695) (30,624,015) (24,663,853) (25,427,944)
SERVICE CLASS (40,267,262) (29,255,254) (21,268,239) (20,517,210)
From net realized gain on sale of
investments
CLASS A (20,169) 0 (28,818) (1,806)
ADMINISTRATIVE CLASS (21,999) 0(4) (6,270) 0(4)
CLASS E N/A N/A (34,041) (30,443)
INSTITUTIONAL CLASS (44,180) 0 (29,922) (24,671)
SERVICE CLASS (36,688) 0 (27,945) (15,375)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 3,566,811,184 2,095,338,042 1,880,148,228 1,005,876,144
Reinvestment of dividends - Class A 7,603,683 3,165,358 4,574,374 1,522,843
Cost of shares redeemed - Class A (3,589,517,754) (1,783,218,311) (1,722,403,471) (692,285,990)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (15,102,887) 315,285,089 162,319,131 315,112,997
Proceeds from shares sold -
Administrative Class 1,792,211,104 1,388,222,454(4) 211,237,826 267,085,382(4)
Reinvestment of dividends -
Administrative Class 27,149,796 9,420,477(4) 6,183,801 2,351,192(4)
Cost of shares redeemed -
Administrative Class (1,953,181,855) (796,735,143)(4) (294,254,788) (92,509,640)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS (133,820,955) 600,907,788(4) (76,833,161) 176,926,934(4)
Proceeds from shares sold - Class E N/A N/A 1,690,444,889 1,732,685,997
Reinvestment of dividends - Class E N/A N/A 0 0
Cost of shares redeemed - Class E N/A N/A (1,821,543,593) (1,837,801,845)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A (131,098,704) (105,115,848)
Proceeds from shares sold -
Institutional Class 10,313,551,923 2,512,557,623 5,020,036,817 1,810,109,209
Reinvestment of dividends -
Institutional Class 19,732,250 8,027,719 5,523,692 3,525,822
Cost of shares redeemed -
Institutional Class (9,431,689,997) (2,256,346,296) (5,033,058,755) (1,761,790,304)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 901,594,176 264,239,046 (7,498,246) 51,844,727
Proceeds from shares sold - Service
Class 2,945,429,480 2,169,506,716 3,847,684,188 2,944,938,309
Reinvestment of dividends - Service
Class 20,604,434 1,912,601 5,368,260 1,738,759
Cost of shares redeemed - Service
Class (2,505,257,696) (2,143,905,641) (3,772,268,891) (3,062,973,983)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS 460,776,218 27,513,676 80,783,557 (116,296,915)
INCREASE (DECREASE) IN NET ASSETS 1,213,418,105 1,208,151,212 27,639,787 322,503,670
NET ASSETS:
Beginning net assets 2,649,495,029 1,441,343,817 2,142,695,178 1,820,191,508
ENDING NET ASSETS $ 3,862,913,134 $ 2,649,495,029 $ 2,170,334,965 $ 2,142,695,178
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(3) "PROCEEDS FROM SHARES SOLD" INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET FUND
CLASS A
-------------------------------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (2)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
------------- ---------------- ----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.03 0.01
Net realized gain (loss) on
investments 0.00 0.00 0.00
------------- ---------------- ----------------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.03) (0.01)
Distributions from net realized gain 0.00 0.00 0.00
------------- ---------------- ----------------
TOTAL FROM DISTRIBUTIONS (0.03) (0.03) (0.01)
------------- ---------------- ----------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
------------- ---------------- ----------------
------------- ---------------- ----------------
TOTAL RETURN (NOT ANNUALIZED) 2.60% 2.93% 1.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $64,950 $59,293 $35,253
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 0.70% 0.70%(6) 0.64%(6)
Ratio of net investment income to
average net assets 2.56% 2.87%(6) 2.68%(6)
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 0.97% 1.13%(6) 1.58%(6)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 2.29% 2.44%(6) 1.74%(6)
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
24
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET
CLASS A FUND (CONT.) PRIME MONEY MARKET FUND (1)
(CONT.) INSTITUTIONAL CLASS CLASS A
---------- ---------------------- ----------------------------------------------
PERIOD PERIOD SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30
1996 (3) 1999 1998 (4) 1999 1998 1997 (2) 1996 (5)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.01 0.03 0.01 0.05 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.01 0.03 0.01 0.05 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.01) (0.03) (0.01) (0.05) (0.05) (0.02) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.01) (0.03) (0.01) (0.05) (0.05) (0.02) (0.05)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 1.51% 3.01% 0.91% 4.83% 5.24% 2.49% 5.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $4,975 $23,929 $54,302 $577,213 $592,317 $277,044 $264,900
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.62 (6) 0.30% 0.30% 0.72% 0.61% 0.55% 0.55%
Ratio of net investment
income to average net
assets 2.71 (6) 3.02% 3.05% 4.71% 5.11% 4.95% 5.06%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 3.56 (6) 0.62% 0.52% 0.78% 0.83% 0.75% 0.68%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses (0.23 (6) 2.70% 2.83% 4.65% 4.89% 4.75% 4.93%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
25
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)
(CONT.)
ADMINISTRATIVE CLASS INSTITUTIONAL
---------------------- CLASS
PERIOD ----------
YEAR ENDED ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 (2) 1999
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.02 0.05
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.02) (0.05)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02) (0.05)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.12% 1.57% 5.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $467,151 $600,975 $1,704,093
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.43% 0.40% 0.25%
Ratio of net investment income to average net assets 5.02% 5.34% 5.12%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.59% 0.55% 0.39%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.86% 5.19% 4.98%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
26
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)(CONT.)
INSTITUTIONAL CLASS (CONT.) SERVICE CLASS
---------------------------------------------- ----------------------------------
SIX MONTHS PERIOD SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1998 1997 (3) 1996 1995 (4) 1999 1998 1997 (3)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.03 0.05 0.01 0.05 0.05 0.03
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.03 0.05 0.01 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.03) (0.05) (0.01) (0.05) (0.05) (0.03)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.03) (0.05) (0.01) (0.05) (0.05) (0.03)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.58% 2.64% 5.39% 5.65%** 5.10% 5.37% 2.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $802,511 $538,195 $423,959 $30,606 $1,114,456 $653,693 $626,105
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.26% 0.45% 0.45% 0.45%
Ratio of net investment
income to average net
assets 5.46% 5.25% 5.33% 5.67% 4.93% 5.24% 5.04%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.41% 0.38% 0.60% 0.69% 0.68% 0.65% 0.60%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 5.30% 5.12% 4.98% 5.24% 4.70% 5.04% 4.89%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
27
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)
(CONT.)
SERVICE CLASS (CONT.)
----------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
SEPT. 30, SEPT. 30, SEPT. 30,
1996 1995 1994 (3)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.19% 5.60% 3.71%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $740,760 $614,101 $565,305
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.41% 0.41%
Ratio of net investment income to average net assets 5.14% 5.47% 3.67%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.62% 0.68% 0.89%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.97% 5.20% 3.19%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
28
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2)
CLASS A ADMINISTRATIVE CLASS
---------------------------------------------- ---------------------- CLASS E
SIX MONTHS PERIOD ----------
YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (4) 1996 (5) 1999 1998 (6) 1999
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.02 0.05 0.05 0.02 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.02 0.05 0.05 0.02 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.02) (0.05) (0.05) (0.02) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02) (0.05) (0.05) (0.02) (0.05)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 4.62% 5.06% 2.42% 4.95% 4.85% 1.52% 4.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $543,903 $381,594 $66,486 $53,706 $100,109 $176,942 $584,451
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.62% 0.55% 0.55% 0.43% 0.40% 0.65%
Ratio of net investment
income to average net
assets 4.50% 4.93% 4.81% 4.96% 4.80% 5.17% 4.54%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.79% 0.85% 0.75% 0.67% 0.63% 0.56% 0.78%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 4.36% 4.70% 4.61% 4.84% 4.60% 5.01% 4.41%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
29
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND(1)
(CONT.)
CLASS E (CONT.) INSTITUTIONAL
---------------------- CLASS
PERIOD ----------
YEAR ENDED ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31,
1998 1997 (2) 1999
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.00 0.05
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.00 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) 0.00 (0.05)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) 0.00 (0.05)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.99% 0.11% 5.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $715,554 $820,657 $493,987
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.25%
Ratio of net investment income to average net assets 4.87% 4.86% 4.92%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.84% 0.88% 0.41%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.68% 4.63% 4.76%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
30
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
INSTITUTIONAL CLASS (CONT.) SERVICE CLASS
---------------------------------------------- ----------------------------------
SIX MONTHS PERIOD SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, MARCH 31,
1998 1997 (3) 1996 1995 (4) 1999 1998 1997 (3)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.03 0.05 0.01 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.03 0.05 0.01 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.03) (0.05) (0.01) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.03) (0.05) (0.01) (0.05) (0.05) (0.02)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.41% 2.58% 5.26% 5.51%** 4.83% 5.20% 2.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $501,494 $449,647 $540,689 $36,443 $447,886 $367,111 $483,401
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.26% 0.45% 0.45% 0.45%
Ratio of net investment
income to average net
assets 5.28% 5.11% 5.21% 5.42% 4.70% 5.07% 4.91%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.40% 0.39% 0.59% 0.69% 0.70% 0.65% 0.61%
Ratio of net investment
income to average net
assets prior to waived
fees and reimbursed
expenses 5.13% 4.97% 4.87% 4.99% 4.45% 4.87% 4.75%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
31
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND(1)
(CONT.)
SERVICE CLASS (CONT.)
----------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
SEPT. 30, MARCH 31, MARCH 31,
1996 1995 1995 (2)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.03% 5.42% 3.75%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,340,325 $1,001,707 $690,630
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.42% 0.43%
Ratio of net investment income to average net assets 4.98% 5.32% 3.72%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.60% 0.66% 0.90%
Ratio of net investment income to average net assets prior
to waived fees and reimbursed expenses 4.83% 5.08% 3.25%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and is currently comprised of thirty-one separate series. These financial
statements represent the National Tax-Free Money Market, Prime Money Market, and
Treasury Plus Money Market Funds (each, a "Fund", collectively, the "Funds"),
each a diversified series of the Company.
Prior to August 1, 1998 the National Tax-Free Money Market, Prime Money Market
and Treasury Plus Money Market Funds were known as the "National Tax-Free Money
Market Mutual", "Prime Money Market Mutual" and "Treasury Money Market Mutual"
Funds, respectively.
Effective at the close of business on December 12, 1997, the Funds of Overland
Express Funds, Inc. were consolidated into the Company in a tax-free exchange
for shares of designated classes of the corresponding Stagecoach fund. Also, at
the close of business on December 12, 1997, funds structured as a "feeder" fund
in a "master-feeder"structure were restructured to invest directly in a
portfolio of securities, rather than to invest in a portfolio of securities
through a "master" portfolio. Effective on September 6, 1996 the Pacifica Funds
Trust was consolidated into the Company in a tax-free exchange for shares of
designated classes of the corresponding Stagecoach fund.
The National Tax-Free Money Market Fund offers Class A and Institutional Class
shares. The Prime Money Market and Treasury Plus Money Market Funds offer Class
A, Administrative Class, Institutional Class, and Service Class shares. The
Treasury Plus Money Market Fund also offers Class E shares. The separate classes
of shares differ principally in the 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.
33
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
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 (thirteen months). Certain floating- and variable-rate instruments in
the portfolios may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer at
par value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a constant
net asset value of $1.00 per share, although there is no assurance that they
will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered.
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 by the Funds are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
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 March 31, 1999. The National
Tax-Free Money Market Fund had estimated net capital loss carryforwards at March
31, 1999 as follows:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARDS
- ---------------------------------------------------------------------------
<S> <C> <C>
National Tax-Free Money Market Fund 2004 $6,351
2005 437
2006 3,692
2007 535
</TABLE>
Any loss carryforwards from Overland are included in the Fund's carryforwards
as shown above. The Company's Board of Directors intends to offset net capital
gains with each capital loss carryforward, and no capital gain distribution
shall be made until each such carryforward has been fully utilized or expires.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent that these
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.
35
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
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 separate advisory contracts on behalf of the
Funds with WFB. Pursuant to the contracts, WFB has agreed to provide the Funds
with daily portfolio management. Under the contracts, WFB is entitled to be paid
a monthly advisory fee at an annual percentage rate of 0.30% of the average
daily net assets of the National Tax-Free Money Market Fund and 0.25% of the
average daily net assets of the Prime Money Market and Treasury Plus Money
Market Funds. On August 1, 1998, Wells Capital Management Incorporated ("WCM"),
a wholly-owned subsidiary of WFB, began acting as investment sub-advisor to the
Funds. WCM is entitled to receive from WFB, as compensation for its sub-advisory
services to the Funds, a monthly fee at the annual rate of 0.05% of the Funds'
average daily net assets up to $960 million and 0.04% of the Funds' average
daily net assets in excess of $960 million. 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 contracts on behalf of each Fund with WFB,
whereby WFB is responsible for providing custody and portfolio accounting
services for the Funds. Pursuant to the contracts, WFB is entitled to certain
transaction charges plus a monthly fee for custody services at an annual rate of
0.0167% of the average daily net assets of each Fund. For portfolio accounting
services, WFB is entitled to a monthly base fee from each Fund of $2,000 plus an
annual fee of 0.07% of the first $50 million of each Fund's average daily net
assets, 0.045% of the next $50 million, and 0.02% of each Fund's average daily
net assets in excess of $100 million.
The Company has entered into a contract on behalf of the Funds with WFB,
whereby WFB provides transfer agency services for the Funds. Under the transfer
agency contract, WFB is entitled to receive transfer agency fees at an annual
rate of 0.10% of the average daily net assets of the Class A shares of the
Funds, 0.10% of the average daily net assets of the Service Class shares of the
Prime Money Market and Treasury Plus Money Market Funds and the Class E shares
of the Treasury Plus Money Market Fund, and 0.02% of the average daily net
assets of the Institutional Class shares of the Funds and the Administrative
Class shares of the Prime Money Market and Treasury Plus Money Market Funds.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
The transfer agency fees paid on behalf of the Funds for the year ended March
31, 1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
National Tax-Free Money
Market Fund $ 63,237 N/A N/A $ 7,970 N/A
Prime Money Market Fund 593,229 $ 114,105 N/A 215,692 $ 814,761
Treasury Plus Money Market
Fund 482,998 25,533 $ 629,732 100,032 453,765
</TABLE>
The Company has entered into contracts on behalf of the Funds with WFB,
whereby WFB has agreed to provide shareholder services for the Funds. Pursuant
to the contracts, WFB is entitled to receive shareholder servicing fees at an
annual rate of 0.30% of the average daily net assets of the Class A shares of
the Prime Money Market and Treasury Plus Money Market Funds and the Class E
shares of the Treasury Plus Money Market Fund, 0.25% of average daily net assets
of the Class A shares of the National Tax-Free Money Market Fund, 0.15% of the
average daily net assets of the Administrative Class shares and 0.20% of the
average daily net assets of the Service Class shares of the Prime Money Market
and Treasury Plus Money Market Funds.
The shareholder servicing fees paid on behalf of the Funds for the year ended
March 31, 1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE SERVICE
FUND CLASS A CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
National Tax-Free Money Market
Fund $ 158,092 N/A N/A N/A
Prime Money Market Fund 1,779,596 $ 771,664 N/A $1,629,522
Treasury Plus Money Market
Fund 1,448,993 191,467 $1,889,196 907,530
</TABLE>
Prior to March 25, 1999, the Company had entered into administration agreement
on behalf of the Funds whereby WFB as administrator and Stephens Inc.
("Stephens") as co-administrator provided each Fund with administration
services. Under the prior arrangement, WFB and Stephens were entitled to receive
monthly fees at the annual rates of 0.03% and 0.04%, respectively, of each
Fund's average daily net assets.
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 asset of the Funds.
The Company has adopted separate Distribution Plans for Class A shares of the
Funds and the Class E shares of the Treasury Plus Money Market Fund pursuant to
Rule 12b-1 under the 1940 Act (each, a "Plan"). The Plan for the
37
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
Class A shares of the Funds provides that each Fund may pay to Stephens, as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, up to 0.05% of the average daily net assets
attributable to the Class A shares.
Under the Plan for Class E shares of the Treasury Plus Money Market Fund, the
Fund may pay to Stephens, as compensation for distribution-related services or
as reimbursement for distribution-related expenses, a monthly fee at an annual
rate of up to 0.10% of the average daily net assets attributable to its Class E
shares.
Each Fund may participate in joint distribution activities with other Funds,
in which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
For the year ended March 31, 1999, the Treasury Plus Money Market Fund paid
distribution fees of $12,962 for Class A shares. Distribution fees for the Class
A shares of the National Tax-Free Money Market and Prime Money Market Funds for
the year ended March 31, 1999, are disclosed in the Statement of Operations.
The registration fees paid on behalf of the Funds for the year ended March 31,
1999, were as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
National Tax-Free Money
Market Fund $ 20,714 N/A N/A $ 15,358 N/A
Prime Money Market Fund 33,237 $ 261,023 N/A 41,427 $ 55,027
Treasury Plus Money Market
Fund 42,337 102,067 $ 10,357 21,735 79,863
</TABLE>
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the year ended March 31, 1999 was waived by WFB. Waived fees and
reimbursed expenses continue at the discretion of WFB.
Certain officers and one director of the Company are also officers of
Stephens. As of March 31, 1999, Stephens owned 265 shares of the National
Tax-Free Money Market Fund, 1,580,593 shares of the Prime Money Market Fund and
144,780 shares of the Treasury Plus Money Market Fund.
3. CAPITAL SHARE TRANSACTIONS
As of March 31, 1999, there were over 242 billion shares of $0.001 par value
capital stock authorized by the Company. As of March 31, 1999, each Fund was
authorized to issue 10 billion shares of $0.001 par value capital stock for each
class of shares.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY
MARKET FUND
---------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MARCH 31, MARCH 31,
1999 1998 (2)
- -----------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 234,230,273 243,931,477
Shares issued in reinvestment of dividends --
Class A 1,622,320 999,129
Shares redeemed -- Class A (230,195,239) (220,887,156)
NET INCREASE(DECREASE) IN SHARES OUTSTANDING --
CLASS A 5,657,354 24,043,450
Shares sold -- Institutional Class(1) 506,716,299 436,296,534
Shares issued in reinvestment of dividends --
Institutional Class(1) 214,647 226,125
Shares redeemed -- Institutional Class(1) (537,304,518) (382,213,633)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS(1) (30,373,572) 54,309,026
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 65,805,624 FOR INSTITUTIONAL CLASS SHARES AS A RESULT
OF THE CONSOLIDATION OF THE OVERLAND NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND.
39
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------
FOR THE YEAR
FOR THE YEAR ENDED
ENDED MARCH 31,
MARCH 31, 1999 1998 (2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 3,566,811,184 2,095,335,772
Shares issued in reinvestment of dividends -- Class
A 7,603,683 3,165,358
Shares redeemed -- Class A (3,589,517,754) (1,783,218,311)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (15,102,887) 315,282,819
Shares sold -- Administrative Class(1) 1,792,211,104 1,388,224,676
Shares issued in reinvestment of dividends --
Administrative Class(1) 27,149,796 9,420,477
Shares redeemed -- Administrative Class(1) (1,953,181,855) (796,735,143)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (133,820,955) 600,910,010
Shares sold -- Institutional Class 10,313,551,923 2,512,557,618
Shares issued in reinvestment of dividends --
Institutional Class 19,732,250 8,027,719
Shares redeemed -- Institutional Class (9,431,689,997) (2,256,346,296)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS 901,594,176 264,239,041
Shares sold -- Service Class 2,945,429,480 2,169,506,710
Shares issued in reinvestment of dividends --
Service Class 20,604,434 1,912,601
Shares redeemed -- Service Class (2,505,257,696) (2,143,905,641)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 460,776,218 27,513,670
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 524,867,072 FOR CLASS A SHARES AND 878,274,456 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
MONEY MARKET FUND.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET
FUND
------------------------------
FOR THE YEAR
FOR THE YEAR ENDED
ENDED MARCH 31,
MARCH 31, 1999 1998 (2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,880,148,228 1,005,879,507
Shares issued in reinvestment of dividends -- Class
A 4,574,374 1,522,843
Shares redeemed -- Class A (1,722,403,471) (692,284,609)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 162,319,131 315,117,741
Shares sold -- Administrative Class(1) 211,237,826 267,085,382
Shares issued in reinvestment of dividends --
Administrative Class(1) 6,183,801 2,351,192
Shares redeemed -- Administrative Class(1) (294,254,788) (92,508,918)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (76,833,161) 176,927,656
Shares sold -- Class E 1,690,444,889 1,732,685,998
Shares issued in reinvestment of dividends -- Class
E 0 0
Shares redeemed -- Class E (1,821,543,593) (1,837,799,382)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS E (131,098,704) (105,113,384)
Shares sold -- Institutional Class 5,020,036,817 1,810,109,209
Shares issued in reinvestment of dividends --
Institutional Class 5,523,692 3,525,822
Shares redeemed -- Institutional Class (5,033,058,755) (1,761,788,362)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (7,498,246) 51,846,669
Shares sold -- Service Class 3,847,684,188 2,944,938,308
Shares issued in reinvestment of dividends --
Service Class 5,368,260 1,738,759
Shares redeemed -- Service Class (3,772,268,891) (3,062,972,733)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 80,783,557 (116,295,666)
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 354,332,437 FOR CLASS A SHARES AND 206,192,634 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
U.S. TREASURY MONEY MARKET FUND.
4. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Family of
Funds with the Norwest Advantage Family of Funds following last November's
merger of Wells Fargo & Company and Norwest Corporation. The Company will
present the reorganization to Fund shareholders for their approval at a special
shareholders' meeting that is planned for August 1999.
41
<PAGE>
Money Market Funds INDEPENDENT AUDITORS' REPORT
- ------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Stagecoach Funds, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of the National Tax-Free Money Market
Fund, Prime Money Market Fund, and Treasury Plus Money Market Fund (three of the
funds comprising Stagecoach Funds, Inc.) as of March 31, 1999, and the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the years in the two-year period then ended, and financial
highlights for the periods indicated herein. These financial statements and
financial highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. For the Prime Money Market Fund and
the Treasury Plus Money Market Fund, all years or periods indicated in the
accompanying financial highlights ending prior to October 1, 1995 were audited
by other auditors whose report dated November 15, 1995 expressed an unqualified
opinion on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards required that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1999, by correspondence with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Stagecoach Funds, Inc. as of March 31, 1999, the
results of their operations, the changes in their net assets, and their
financial highlights for the periods indicated herein, in conformity with
generally accepted accounting principles.
[LOGO]
San Francisco, California
May 7, 1999
42
<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
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MTN -- Medium Term Note
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
</TABLE>
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services and/or certain other services for the Stagecoach Funds. Wells
Capital Management Incorporated ("WCM") provides investment sub-advisory
services for certain Stagecoach Funds. The Funds are distributed by
STEPHENS INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and WCM are not
affiliated with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Stagecoach Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-260-5969. Read the prospectus carefully before you invest or send money.
STAGECOACH FUNDS-Registered
Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
SC MMI AR (5/99)
