STAGECOACH FUNDS INC /AK/
497, 1999-08-20
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                             STAGECOACH FUNDS, INC.

                                 Small Cap Fund

                Class A, Class B, Class C and Institutional Class

                     Supplement dated August 19, 1999 to the
                         Prospectuses dated May 1, 1999
                                       and
                     Supplement dated August 19, 1999 to the
                     Statement of Additional Information for
                Class A, Class B, Class C and Institutional Class
                                dated May 1, 1999



        Effective  August 2,  1999,  Chris  Greene  replaces  Kenneth  Lee as a
        portfolio manager for the day-to-day  management of the Small Cap Fund.
        Mr.  Greene  joined  Wells Fargo Bank,  N.A./Wells  Capital  Management
        Incorporated ("Wells Fargo/WCM") in 1997, as a portfolio co-manager for
        the  Strategic  Growth  Fund and an analyst  for the  firm's  small cap
        equity  team.  From  1993 to  1996,  Mr.  Greene  provided  fundamental
        security  analysis for Hambrecht & Quist,  an  investment  banking firm
        focusing  on growth  companies.  Mr.  Greene  has over  seven  years of
        investment   experience  and  over  two  years  of  equity   investment
        management experience.





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                                 August 19, 1999


                                                    Writer's Direct Dial Number
                                                         (202) 887-1537
Via EDGAR

Securities and Exchange Commission
450 Fifth Street,  NW
Washington, DC  20549

              Re:    Stagecoach Funds, Inc.
                     Registration Nos. 33-42927; 811-6419

Ladies and Gentlemen:

In connection with the registration of Stagecoach  Funds, Inc. under the
Investment  Company Act of 1940,  and the issuance of securities by it
under the Securities  Act  of  1933,  and  pursuant  to  17  C.F.R.
230.497(e), we  are transmitting  herewith  for filing a  supplement
dated  August 19,  1999 to the Prospectuses dated May 1, 1999 and the Statement
of Additional Information dated May 1, 1999 for the Class A, Class B, Class C
and Institutional  Class shares of the Stagecoach Small Cap Fund (the "Fund").

        This  supplement is being filed to disclose a portfolio  manager change
for the Fund.

        If you have any questions, please contact the undersigned at the number
indicated above.

                                                             Very truly yours,

                                                             /s/ Janis E. Fonda

                                 Janis E. Fonda




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