<PAGE>
SEPTEMBER 30, 1999
STAGECOACH FUNDS-Registered Trademark-
Annual Report
EQUITY Funds
Balanced Fund
Diversified Equity Income Fund
Equity Index Fund
Equity Value Fund
Growth Fund
International Equity Fund
Small Cap Fund
Strategic Growth Fund
[GRAPHIC]
SEPTEMBER 30, 1999
EQUITY FUNDS
<PAGE>
Equity Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
PERFORMANCE AT A GLANCE AND
INVESTMENT ADVISOR COMMENTARY
Balanced Fund................................................3
Diversified Equity Income Fund...............................9
Equity Index Fund...........................................14
Equity Value Fund...........................................19
Growth Fund.................................................24
International Equity Fund...................................29
Small Cap Fund..............................................35
Strategic Growth Fund.......................................40
PORTFOLIOS OF INVESTMENTS
Balanced Fund...............................................45
Diversified Equity Income Fund..............................53
Equity Index Fund...........................................59
Equity Value Fund...........................................81
Growth Fund.................................................87
International Equity Fund...................................94
Small Cap Fund.............................................100
Strategic Growth Fund......................................108
STAGECOACH FUNDS
Statement of Assets and Liabilities........................116
Statement of Operations....................................118
Statements of Changes in Net Assets........................120
Financial Highlights.......................................126
Notes to Financial Statements..............................155
INDEPENDENT AUDITORS' REPORT...................................177
NOTICE TO SHAREHOLDERS (UNAUDITED).............................178
SHAREHOLDERS' MEETING AND PROXY RESULTS (UNAUDITED)............179
LIST OF ABBREVIATIONS..........................................181
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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ii
<PAGE>
LETTER TO SHAREHOLDERS Equity Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
It's a pleasure to provide you with the annual report for the period ended
September 30, 1999. The report includes information about your investment over
the twelve-month period, including economic and market trends, a performance
summary, a portfolio review and a strategic outlook.
Several noteworthy events happened during the period, including the Dow Jones
Industrial Average (DJIA) surpassing 10,000 points for the first time in its
104-year history in March, and the Federal Reserve Board (the "Fed") raising
short-term interest rates twice between April 1, 1999, and September 30, 1999.
Despite the two interest rate increases during the period, the nation's
economy remained strong. Earnings for U.S. companies were robust, we had a
budget surplus, inflation and unemployment remained low, and Americans seemed
confident about the future. We were also in the midst of a prolonged bull
market, which made U.S. capital markets attractive to investors both at home and
abroad. By the end of the period, however, stocks suffered a setback, hurt by
worries over the Fed tightening and higher interest rates early in the period,
and by a weaker dollar and rising commodity prices in September 1999. By late
September, both the DJIA and the S&P 500 Index were off from their summer peaks.
Investors can expect some potential volatility toward the end of the year due to
Y2K concerns. While U.S. companies generally have been preparing for the Year
2000, the effects of the Year 2000 cannot be predicted.
The interest rate increases were good news for the bond markets, which had
discounted the Fed tightening in response to a strong economy before the rate
increases. Although the DJIA reached record highs during the period, stocks have
not outperformed bonds since the May-June period. The interest rate increases
helped restore order to the bond market, which had seen prices tumble and yields
rise above 6% on the
1
<PAGE>
Equity Funds LETTER TO SHAREHOLDERS
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benchmark 30-year U.S. Treasury bond. The higher the bond yields move, the more
likely investors will be to switch from stocks to the safety of bonds.
As you read through this report and review the performance of the Funds within
your portfolio, we encourage you to keep long-term goals in mind when making
investment decisions. We recommend that you continually review your investment
portfolio with your financial consultant to determine an appropriate mix of
investments to meet your ongoing needs. At the close of business November 5,
1999, the Stagecoach Funds were reorganized into the Wells Fargo Funds. The next
annual or semi-annual report you receive will reflect the Wells Fargo Funds.
Thank you again for your continued investment with the Stagecoach Funds.
Sincerely,
[SIGNATURE]
Michael J. Hogan
Executive Vice President,
Mutual Fund Group
Wells Fargo Bank, N.A.
[SIGNATURE]
R. Greg Feltus
Chairman and President
Stagecoach Funds, Inc.
2
<PAGE>
PERFORMANCE AT A GLANCE Balanced Fund
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BALANCED FUND
AVERAGE ANNUAL RETURNS(%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C>
CLASS A 3.13% 10.28% 10.42%
CLASS B 2.54% 9.58% 9.69%
INSTITUTIONAL CLASS 3.30% 10.44% 10.50%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C>
CLASS A (2.83)% 8.98% 9.71%
CLASS B (1.99)% 9.34% 9.69%
INSTITUTIONAL CLASS N/A N/A N/A
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH S&P 500 INDEX (4) LEHMAN BROTHERS STAGECOACH
BALANCED FUND GOVERNMENT/ BALANCED FUND
CLASS A SHARES CORPORATE INSTITUTIONAL
BOND INDEX (5) CLASS SHARES
<S> <C> <C> <C> <C>
Inception $9,425 $10,000 $10,000 $10,000
Jul-90 $9,463 $9,968 $10,124 $10,040
Aug-90 $9,105 $9,067 $9,977 $9,660
Sep-90 $8,954 $8,626 $10,060 $9,500
Oct-90 $8,954 $8,589 $10,193 $9,501
Nov-90 $9,346 $9,144 $10,415 $9,916
Dec-90 $9,561 $9,399 $10,572 $10,145
Jan-91 $9,785 $9,808 $10,691 $10,382
Feb-91 $10,163 $10,510 $10,783 $10,783
Mar-91 $10,338 $10,764 $10,857 $10,969
Apr-91 $10,318 $10,790 $10,982 $10,948
May-91 $10,534 $11,255 $11,032 $11,177
Jun-91 $10,249 $10,740 $11,020 $10,875
Jul-91 $10,557 $11,240 $11,158 $11,201
Aug-91 $10,795 $11,506 $11,415 $11,453
Sep-91 $10,815 $11,314 $11,653 $11,474
Oct-91 $10,925 $11,466 $11,757 $11,591
Nov-91 $10,584 $11,004 $11,874 $11,230
Dec-91 $11,333 $12,262 $12,275 $12,024
Jan-92 $11,384 $12,034 $12,093 $12,079
Feb-92 $11,548 $12,190 $12,157 $12,253
Mar-92 $11,414 $11,953 $12,090 $12,111
Apr-92 $11,632 $12,304 $12,163 $12,341
May-92 $11,601 $12,364 $12,399 $12,308
Jun-92 $11,509 $12,180 $12,580 $12,211
Jul-92 $11,833 $12,678 $12,902 $12,555
Aug-92 $11,613 $12,418 $13,017 $12,322
Sep-92 $11,791 $12,564 $13,195 $12,511
Oct-92 $11,813 $12,607 $12,993 $12,533
Nov-92 $12,108 $13,037 $12,981 $12,847
Dec-92 $12,329 $13,197 $13,205 $13,082
Jan-93 $12,687 $13,307 $13,493 $13,461
Feb-93 $12,893 $13,488 $13,773 $13,679
Mar-93 $13,229 $13,773 $13,820 $14,036
Apr-93 $13,131 $13,440 $13,926 $13,932
May-93 $13,371 $13,800 $13,919 $14,187
Jun-93 $13,579 $13,840 $14,235 $14,407
Jul-93 $13,689 $13,784 $14,327 $14,524
Aug-93 $14,152 $14,307 $14,656 $15,016
Sep-93 $14,130 $14,198 $14,707 $14,992
Oct-93 $14,319 $14,491 $14,768 $15,192
Nov-93 $14,241 $14,353 $14,601 $15,110
Dec-93 $14,637 $14,527 $14,665 $15,530
Jan-94 $15,082 $15,021 $14,885 $16,002
Feb-94 $14,865 $14,613 $14,560 $15,772
Mar-94 $14,306 $13,976 $14,204 $15,178
Apr-94 $14,257 $14,155 $14,086 $15,127
May-94 $14,318 $14,387 $14,059 $15,191
Jun-94 $14,148 $14,035 $14,027 $15,011
Jul-94 $14,417 $14,496 $14,307 $15,297
Aug-94 $14,724 $15,090 $14,313 $15,622
Sep-94 $14,455 $14,721 $14,148 $15,336
Oct-94 $14,405 $15,052 $14,133 $15,284
Nov-94 $14,046 $14,504 $14,107 $14,903
Dec-94 $14,080 $14,719 $14,201 $14,939
Jan-95 $14,028 $15,100 $14,473 $14,884
Feb-95 $14,461 $15,688 $14,809 $15,343
Mar-95 $14,670 $16,150 $14,908 $15,565
Apr-95 $14,869 $16,625 $15,115 $15,776
May-95 $15,306 $17,289 $15,749 $16,240
Jun-95 $15,400 $17,690 $15,875 $16,339
Jul-95 $15,694 $18,276 $15,813 $16,652
Aug-95 $15,761 $18,322 $16,015 $16,723
Sep-95 $15,990 $19,095 $16,179 $16,965
Oct-95 $15,855 $19,026 $16,416 $16,865
Nov-95 $16,368 $19,861 $16,687 $17,367
Dec-95 $16,562 $20,243 $16,933 $17,585
Jan-96 $16,781 $20,932 $17,038 $17,818
Feb-96 $16,767 $21,126 $16,676 $17,818
Mar-96 $17,041 $21,329 $16,536 $18,109
Apr-96 $17,234 $21,643 $16,422 $18,328
May-96 $17,495 $22,199 $16,394 $18,606
Jun-96 $17,496 $22,283 $16,614 $18,607
Jul-96 $16,970 $21,298 $16,652 $18,062
Aug-96 $17,205 $21,748 $16,611 $18,312
Sep-96 $17,757 $22,970 $16,906 $18,903
Oct-96 $18,392 $23,604 $17,300 $19,580
Nov-96 $19,306 $25,386 $17,618 $20,554
Dec-96 $19,201 $24,883 $17,423 $20,458
Jan-97 $19,566 $26,436 $17,444 $20,847
Feb-97 $19,740 $26,645 $17,480 $21,033
Mar-97 $19,203 $25,553 $17,272 $20,466
Apr-97 $19,635 $27,076 $17,525 $20,909
May-97 $20,515 $28,730 $17,688 $21,847
Jun-97 $20,933 $30,008 $17,900 $22,303
Jul-97 $22,222 $32,394 $18,448 $23,679
Aug-97 $21,610 $30,580 $18,241 $23,026
Sep-97 $22,252 $32,253 $18,527 $23,712
Oct-97 $21,652 $31,175 $18,824 $23,088
Nov-97 $22,155 $32,619 $18,923 $23,625
Dec-97 $22,587 $33,180 $19,122 $24,091
Jan-98 $22,660 $33,545 $19,392 $24,150
Feb-98 $23,705 $35,963 $19,353 $25,285
Mar-98 $24,482 $37,805 $19,413 $26,128
Apr-98 $24,334 $38,190 $19,510 $25,951
May-98 $24,187 $37,533 $19,719 $25,793
Jun-98 $24,251 $39,057 $19,920 $25,871
Jul-98 $23,601 $38,643 $19,936 $25,196
Aug-98 $21,746 $33,059 $20,325 $23,212
Sep-98 $22,858 $35,178 $20,906 $24,389
Oct-98 $23,493 $38,038 $20,758 $25,069
Nov-98 $24,147 $40,344 $20,882 $25,770
Dec-98 $24,713 $42,667 $20,934 $26,382
Jan-99 $24,859 $44,464 $21,083 $26,539
Feb-99 $24,190 $43,076 $20,581 $25,822
Mar-99 $24,666 $44,799 $20,684 $26,334
Apr-99 $25,845 $46,533 $20,736 $27,597
May-99 $25,277 $45,435 $20,522 $26,988
Jun-99 $25,813 $47,907 $20,459 $27,564
Jul-99 $25,030 $46,411 $20,401 $26,725
Aug-99 $24,162 $46,181 $20,385 $25,795
Sep-99 $23,574 $44,916 $20,568 $25,193
</TABLE>
3
<PAGE>
Balanced Fund PERFORMANCE AT A GLANCE
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BALANCED FUND
The Stagecoach Balanced Fund (the "Fund") seeks to provide investors with both
capital appreciation and current income resulting in a high total investment
return consistent with prudent investment risk and a balanced investment
approach. The Fund invests in equity securities and debt instruments. This
flexibility provides portfolio managers with the ability to invest where
opportunities may arise.
Gregg Giboney manages the equity portion of the Fund, while Scott Smith
manages the bond portion. Mr. Giboney has been in the securities industry for 12
years. He holds a BA from Washington State University and an MBA from the
University of Portland. Mr. Giboney is a Chartered Financial Analyst and is a
board member and past President of the Portland Society of Financial Analysts.
Mr. Smith has more than 12 years of experience in the securities industry,
specializing in intermediate, corporate and government bonds. Mr. Smith received
a BA from the University of San Diego and is a Chartered Financial Analyst.
PERFORMANCE SUMMARY
The Stagecoach Balanced Fund Class A shares posted a cumulative return of
3.13% for the one-year reporting period, excluding sales charges. Because the
Fund invests in both stocks and bonds, the performance will typically fall
between the S&P 500 Index(4) and the Lehman Brothers Government/Corporate Bond
Index(5). During the reporting period, the Fund's performance was closer to the
Lehman Brothers Government/Corporate Bond Index, which returned (1.62)% for the
period, while the S&P 500 Index returned 27.81%.
The Fund's Class A shares distributed $0.30 in dividend income over the
one-year period and $1.29 in capital gains. Keep in mind that past performance
is no guarantee of future returns.
4
<PAGE>
PERFORMANCE AT A GLANCE Balanced Fund
- ------------------------------------------------------------------------
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 97
PORTFOLIO TURNOVER RATIO 72%
WEIGHTED MEDIAN MARKET CAP -- EQUITY ONLY
($B) $27.5
</TABLE>
The equity portion of the portfolio comprised approximately 57 percent of the
Fund's total assets at the end of the 12-month period. The Fund's performance
late in the period was driven by the underperformance of the healthcare and
finance sectors. The Fund was overweighted in the finance sector at the
beginning of the quarter, but exposure was trimmed midway through the quarter.
While this move mitigated some of the weakness in the finance sector, individual
stock holdings did not perform well within the sector. During the third quarter
of 1999, the Federal Reserve Board (the "Fed") raised short-term interest rates,
which hurt stocks in the utilities, deep cyclical and finance sectors. Growing
investor uncertainty linked to possible further rate hikes hurt value stocks
more than growth-style stocks. Finally, increasing concern over the impact of
Y2K on stock performance throughout the remainder of the year and into early
2000 contributed to volatility in the markets as investors anticipate where they
should be positioned for the turn of the century.
Stocks in the communications, technology and energy sectors performed well
during the period. Rising crude oil prices contributed to inflation concerns.
Consumer spending also was high, helping the performance of technology and auto
stocks. Earlier in the period, the Fund's performance was positively impacted by
an emphasis on regional telephone companies within the utility sector; selective
purchases of companies with greater economic sensitivity; and timely sales of
stocks with high valuation and/or deteriorating fundamentals.
5
<PAGE>
Balanced Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
TOP FIVE EQUITY INDUSTRY HOLDINGS(6) (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
FINANCE 29%
COMMUNICATION 15%
CAPITAL GOODS 13%
ENERGY 12%
UTILITIES 10%
</TABLE>
TOP TEN EQUITY HOLDINGS(7) (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
MOBIL CORPORATION 2.9%
AT & T CORPORATION 2.2%
CITIGROUP INCORPORATED 2.2%
CHASE MANHATTAN CORPORATION 2.0%
PROVIDIAN FINANCIAL CORPORATION 1.8%
COSTCO WHOLESALE COMPANY 1.7%
CANADIAN NATIONAL RAILWAY CORPORATION 1.6%
ENRON CORPORATION 1.6%
AMERITECH COMPANY 1.4%
GTE CORPORATION 1.3%
</TABLE>
Y2K-related costs and other company-specific factors (slower revenue growth or
higher costs) affecting investments in industries within the value universe have
depressed returns. In the short term, investors may seek refuge in high quality,
stable growth companies as a way to hedge the Y2K risks presented by the turn of
the century. Also, those same fears could lead to increased stores of goods such
as canned goods, batteries and other consumable items. This will boost fourth
quarter earnings of selected consumer stocks, but any such boost would likely be
short-lived.
STRATEGIC OUTLOOK
Interest rate pressures are expected to persist due to ongoing signs of a
strong economy. The primary impact of higher, short-term interest rates should
be to slow corporate earnings growth, which may limit increases in the stock
market. We will continue to weigh opportunities on a case by case basis,
focusing on specific stocks we believe are poised for growth. We also believe
that Asia's
6
<PAGE>
PERFORMANCE AT A GLANCE Balanced Fund
- ------------------------------------------------------------------------
improving financial condition bodes well for financial stocks, with certain
stocks offering attractive values at current prices.
(1) Performance shown for the Class A shares of the Stagecoach Balanced Fund for
periods prior to September 6, 1996 reflects performance of the Investor
shares of the Pacifica Balanced Fund, a predecessor portfolio with the same
investment objective and policies as the Stagecoach Balanced Fund.
Performance shown or advertised for the Class B and Institutional
Class shares of the Stagecoach Balanced Fund for periods prior to
September 6, 1996 reflects performance of the Investor shares of the
predecessor portfolio, with expenses of the Investor shares adjusted to
reflect Class B and Institutional Class sales charges and expenses,
respectively.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance
including sales charge assumes the Class B share sales charge for the
corresponding time period. There are no sales charges for the Institutional
Class shares.
(3) The returns for Class B shares of the Fund will vary from the results shown
due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach Balanced
Fund Class A shares since inception of the predecessor portfolio with the S&P
500 Index and the Lehman Brothers Government/Corporate Bond Index. The chart
assumes a hypothetical $10,000 initial investment in Class A and Institutional
shares and reflects all operating expenses and, for Class A shares, assumes
the maximum initial sales charge of 5.75%. The Fund is a professionally
managed mutual fund.
(4) 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. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(5) The Lehman Brothers Government/Corporate Bond Index invests in U.S.
Treasuries, agencies, publicly issued U.S. corporate and Yankee
7
<PAGE>
Balanced Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
debentures and secured notes that meet specified maturity, liquidity and
quality requirements. You cannot invest directly in an index.
(6) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(7) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
8
<PAGE>
Diversified Equity Income Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
DIVERSIFIED EQUITY INCOME FUND
AVERAGE ANNUAL RETURNS(%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (11/18/92)
<S> <C> <C> <C>
CLASS A 5.58% 13.73% 12.68%
CLASS B 4.89% 13.04% 12.00%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (11/18/92)
<S> <C> <C> <C>
CLASS A (0.49)% 12.40% 11.71%
CLASS B 0.21% 12.79% 12.00%
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH DIVERSIFIED EQUITY INCOME FUND CLASS A SHARES S&P 500 INDEX (4)
<S> <C> <C>
Inception $9,425 $10,000
Nov-92 $9,510 $10,000
Dec-92 $9,718 $10,123
Jan-93 $9,822 $10,207
Feb-93 $9,831 $10,346
Mar-93 $10,079 $10,565
Apr-93 $9,936 $10,309
May-93 $10,221 $10,585
Jun-93 $10,234 $10,616
Jul-93 $10,282 $10,574
Aug-93 $10,693 $10,975
Sep-93 $10,606 $10,891
Oct-93 $10,944 $11,116
Nov-93 $10,741 $11,010
Dec-93 $10,917 $11,143
Jan-94 $11,271 $11,522
Feb-94 $11,065 $11,209
Mar-94 $10,568 $10,720
Apr-94 $10,707 $10,858
May-94 $10,905 $11,036
Jun-94 $10,720 $10,766
Jul-94 $11,060 $11,119
Aug-94 $11,450 $11,575
Sep-94 $11,243 $11,292
Oct-94 $11,202 $11,546
Nov-94 $10,799 $11,125
Dec-94 $10,925 $11,290
Jan-95 $10,997 $11,583
Feb-95 $11,464 $12,034
Mar-95 $11,803 $12,388
Apr-95 $12,089 $12,753
May-95 $12,406 $13,262
Jun-95 $12,524 $13,569
Jul-95 $12,823 $14,019
Aug-95 $12,915 $14,054
Sep-95 $13,381 $14,647
Oct-95 $13,235 $14,595
Nov-95 $13,930 $15,235
Dec-95 $14,222 $15,528
Jan-96 $14,541 $16,056
Feb-96 $14,819 $16,205
Mar-96 $15,096 $16,361
Apr-96 $15,353 $16,602
May-96 $15,610 $17,028
Jun-96 $15,567 $17,093
Jul-96 $14,736 $16,337
Aug-96 $15,254 $16,682
Sep-96 $15,978 $17,620
Oct-96 $16,097 $18,106
Nov-96 $17,182 $19,473
Dec-96 $17,366 $19,087
Jan-97 $17,354 $20,278
Feb-97 $17,574 $20,439
Mar-97 $16,817 $19,601
Apr-97 $17,002 $20,769
May-97 $18,438 $22,038
Jun-97 $19,105 $23,018
Jul-97 $20,420 $24,848
Aug-97 $19,757 $23,457
Sep-97 $20,631 $24,740
Oct-97 $19,813 $23,914
Nov-97 $20,350 $25,021
Dec-97 $20,876 $25,451
Jan-98 $20,766 $25,731
Feb-98 $22,242 $27,586
Mar-98 $23,232 $28,999
Apr-98 $23,000 $29,295
May-98 $22,583 $28,791
Jun-98 $22,674 $29,960
Jul-98 $21,433 $29,642
Aug-98 $18,975 $25,359
Sep-98 $20,263 $26,984
Oct-98 $20,956 $29,178
Nov-98 $21,623 $30,946
Dec-98 $21,909 $32,729
Jan-99 $21,594 $34,107
Feb-99 $21,030 $33,043
Mar-99 $21,703 $34,364
Apr-99 $23,568 $35,694
May-99 $23,582 $34,852
Jun-99 $23,887 $36,748
Jul-99 $22,957 $35,601
Aug-99 $22,194 $35,424
Sep-99 $21,395 $34,453
</TABLE>
9
<PAGE>
Diversified Equity Income Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
DIVERSIFIED EQUITY INCOME FUND
The Stagecoach Diversified Equity Income Fund (the "Fund") seeks to earn
current income and a growing stream of income over time, consistent with the
preservation of capital. The Fund invests in income-producing equity securities
and debt instruments, including common stocks and preferred and convertible
securities. Since the Fund offers a conservative approach to equity investing,
at least 90% of the Fund's equity portfolio will be invested in large company
stocks that are generally well-established in their industry and offer high
dividend potential.
Allen Wisniewski manages the Fund. Mr. Wisniewski has more than 13 years of
experience in the securities industry, with a focus on equities. Mr. Wisniewski
received his BA and MBA in Economics and Finance from the University of
California at Los Angeles. He is a Chartered Financial Analyst and a member of
the Los Angeles Society of Financial Analysts. Mr. Wisniewski brings disciplined
investment expertise to equity investing.
PERFORMANCE SUMMARY
The Stagecoach Diversified Equity Income Fund Class A Shares posted a
cumulative return of 5.58% for the one-year reporting period, excluding sales
charges. This was below the performance of the S&P 500 Index(4), which returned
27.81% for the same period.
The Fund distributed $0.31 in dividend income for Class A shares over the
one-year period and $1.64 in capital gains. Keep in mind that past performance
is no guarantee of future returns.
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 65
PORTFOLIO TURNOVER RATIO 33%
WEIGHTED MEDIAN MARKET CAP -- EQUITY ONLY
($B) $19.2
</TABLE>
The Fund is designed specifically to generate a growing stream of income over
time through a diversified portfolio of equity and debt securities, with an
emphasis
10
<PAGE>
PERFORMANCE AT A GLANCE Diversified Equity Income Fund
- ------------------------------------------------------------------------
on income-producing equity securities. The market and the Fund experienced a
strong first half of the year, but the third quarter of 1999 was quite
challenging. While the second quarter witnessed a resurgence in value stocks,
led by industrial companies, this change proved to be short lived, as value
stocks significantly underperformed growth stocks during the third quarter. The
Fund's emphasis on value stocks contributed to weaker relative performance
during the quarter. The finance sector, which was the Fund's largest, and basic
materials experienced significant weakness. Technology was the market leader,
and while the Fund's holdings in Philips Electronics and Thomas & Betts
performed well, this is a sector in which the Fund does not have much
representation because of its low yield.
Energy stocks were affected by falling gasoline prices during the fourth
quarter of 1998. The situation improved during the first quarter of 1999 as
gasoline prices, along with the share prices of the Fund's energy stocks,
recovered. Despite these dramatic price swings, energy stocks provide attractive
yields, which is one of the Fund's goals.
11
<PAGE>
Diversified Equity Income Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 28%
ENERGY 13%
UTILITIES 11%
CAPITAL GOODS 11%
COMMUNICATION 10%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
ALLTEL CORPORATION 3.5%
IBM CORPORATION 3.3%
GTE CORPORATION 3.2%
HOUSEHOLD INTERNATIONAL INC. 3.0%
DUKE ENERGY CORPORATION 3.0%
KIMBERLY-CLARK CORPORATION 2.6%
AT & T CORPORATION 2.6%
EASTMAN KODAK COMPANY 2.5%
CIGNA CORPORATION 2.4%
PHILIPS ELECTRONICS 2.4%
</TABLE>
STRATEGIC OUTLOOK
The earnings outlook is quite positive going forward, even though there were a
few holdings that experienced earnings disappointments during the quarter. The
earnings picture is much improved from this time last year, and this should bode
well for economically sensitive companies in the future, especially with a
stronger global economy. The rise in interest rates this year was difficult for
financial stocks; however, the bad news with respect to the Federal Reserve
Board's tightenings was already priced into these stocks. Better relative
performance is expected going forward. The Fund's emphasis on higher yielding
stocks with good dividend growth, and low relative P/E ratios, offers the
potential for attractive future returns with less risk relative to the market.
(1) Performance shown for the Class B shares of the Stagecoach Diversified
Equity Income Fund for periods prior to January 1, 1995 reflects performance
of the Class A shares of the Fund adjusted to reflect Class B sales charges
and expenses.
12
<PAGE>
PERFORMANCE AT A GLANCE Diversified Equity Income Fund
- ------------------------------------------------------------------------
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance
including sales charge assumes the Class B share sales charge for the
corresponding time period.
(3) The returns for Class B shares of the Diversified Equity Income Fund will
vary from the results shown due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach Diversified
Equity Income Fund Class A shares since inception of the predecessor portfolio
with the S&P 500 Index. The chart assumes a hypothetical $10,000 initial
investment in Class A reflects all operating expenses and assumes the maximum
initial sales charge of 5.75%. The Fund is a professionally managed mutual
fund.
(4) 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. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
13
<PAGE>
PERFORMANCE AT A GLANCE Equity Index Fund
- ------------------------------------------------------------------------
EQUITY INDEX FUND
AVERAGE ANNUAL RETURNS (%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
1-YEAR 5-YEAR 10-YEAR
<S> <C> <C> <C>
CLASS A 26.82% 23.84% 15.66%
CLASS B 25.86% 23.09% 14.95%
CLASS O 27.22% 24.07% 15.87%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
1-YEAR 5-YEAR 10-YEAR
<S> <C> <C> <C>
CLASS A 19.53% 22.38% 14.98%
CLASS B 20.86% 22.91% 14.95%
CLASS O N/A N/A N/A
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH EQUITY INDEX FUND CLASS A SHARES S&P 500 INDEX (4)
<S> <C> <C>
Jan-84 $9,425 $10,000
Feb-84 $9,510 $9,648
Mar-84 $9,529 $9,815
Apr-84 $9,585 $9,908
May-84 $9,642 $9,360
Jun-84 $9,708 $9,563
Jul-84 $9,774 $9,444
Aug-84 $9,840 $10,488
Sep-84 $9,830 $10,490
Oct-84 $9,849 $10,531
Nov-84 $9,736 $10,413
Dec-84 $9,953 $10,687
Jan-85 $10,622 $11,520
Feb-85 $10,782 $11,661
Mar-85 $10,829 $11,668
Apr-85 $10,763 $11,657
May-85 $11,395 $12,331
Jun-85 $11,555 $12,524
Jul-85 $11,517 $12,506
Aug-85 $11,404 $12,399
Sep-85 $11,037 $12,011
Oct-85 $11,499 $12,566
Nov-85 $12,271 $13,428
Dec-85 $12,856 $14,078
Jan-86 $12,893 $14,156
Feb-86 $13,836 $15,214
Mar-86 $14,524 $16,063
Apr-86 $14,326 $15,882
May-86 $15,080 $16,727
Jun-86 $15,316 $17,010
Jul-86 $14,458 $16,059
Aug-86 $15,523 $17,249
Sep-86 $14,354 $15,823
Oct-86 $15,052 $16,736
11/28/86 $15,042 $17,143
12/31/86 $15,014 $16,705
1/30/87 $16,880 $18,955
2/27/87 $17,521 $19,704
3/31/87 $17,945 $20,272
4/30/87 $17,738 $20,092
5/29/87 $17,898 $20,266
6/30/87 $18,775 $21,290
7/31/87 $19,661 $22,368
8/31/87 $20,386 $23,203
9/30/87 $19,934 $22,694
10/30/87 $15,693 $17,807
11/30/87 $14,430 $16,339
12/31/87 $15,495 $17,582
1/29/88 $16,126 $18,322
2/29/88 $16,852 $19,176
3/31/88 $16,324 $18,583
4/29/88 $16,484 $18,789
5/31/88 $16,607 $18,952
6/30/88 $17,342 $19,821
7/29/88 $17,257 $19,746
8/31/88 $16,673 $19,076
9/30/88 $17,361 $19,889
10/31/88 $17,813 $20,442
11/30/88 $17,559 $20,151
12/30/88 $17,842 $20,503
1/31/89 $19,114 $22,004
2/28/89 $18,633 $21,456
3/31/89 $19,039 $21,956
4/28/89 $20,000 $23,096
5/31/89 $20,773 $24,031
6/30/89 $20,650 $23,894
7/31/89 $22,450 $26,052
8/31/89 $22,856 $26,561
9/29/89 $22,743 $26,453
10/31/89 $22,205 $25,839
11/30/89 $22,639 $26,366
12/31/89 $23,157 $26,999
1/31/90 $21,602 $25,186
2/28/90 $21,857 $25,511
3/31/90 $22,422 $26,187
4/30/90 $21,847 $25,533
5/31/90 $23,940 $28,023
6/30/90 $23,760 $27,834
7/31/90 $23,676 $27,745
8/31/90 $21,527 $25,237
9/30/90 $20,481 $24,008
10/31/90 $20,377 $23,906
11/30/90 $21,659 $25,451
12/31/90 $22,243 $26,161
1/31/91 $23,176 $27,300
2/28/91 $24,797 $29,252
3/31/91 $25,353 $29,961
4/30/91 $25,391 $30,032
5/31/91 $26,428 $31,327
6/30/91 $25,221 $29,892
7/31/91 $26,362 $31,286
8/31/91 $26,956 $32,027
9/30/91 $26,494 $31,491
10/31/91 $26,824 $31,914
11/30/91 $25,740 $30,628
12/31/91 $28,633 $34,131
1/31/92 $28,077 $33,495
2/29/92 $28,416 $33,929
3/31/92 $27,850 $33,269
4/30/92 $28,636 $34,246
5/31/92 $28,749 $34,414
6/30/92 $28,308 $33,902
7/31/92 $29,432 $35,287
8/31/92 $28,813 $34,564
9/30/92 $29,126 $34,970
10/31/92 $29,202 $35,091
11/30/92 $30,169 $36,286
12/31/92 $30,521 $36,731
1/31/93 $30,745 $37,038
2/28/93 $31,143 $37,543
3/31/93 $31,766 $38,335
4/30/93 $30,985 $37,409
5/31/93 $31,776 $38,409
6/30/93 $31,842 $38,522
7/31/93 $31,685 $38,367
8/31/93 $32,852 $39,823
9/30/93 $32,577 $39,517
10/31/93 $33,218 $40,335
11/30/93 $32,873 $39,951
12/31/93 $33,240 $40,434
1/31/94 $34,338 $41,808
2/28/94 $33,391 $40,674
3/31/94 $31,918 $38,900
4/30/94 $32,302 $39,399
5/31/94 $32,798 $40,045
6/30/94 $31,983 $39,064
7/31/94 $33,000 $40,347
8/31/94 $34,312 $42,001
9/30/94 $33,460 $40,974
10/31/94 $34,175 $41,895
11/30/94 $32,918 $40,369
12/31/94 $33,379 $40,968
1/31/95 $34,207 $42,029
2/28/95 $35,514 $43,666
3/31/95 $36,525 $44,952
4/28/95 $37,560 $46,275
5/31/95 $39,022 $48,121
6/30/95 $39,885 $49,238
7/31/95 $41,171 $50,870
8/31/95 $41,246 $50,997
9/29/95 $42,933 $53,148
10/31/95 $42,761 $52,958
11/30/95 $44,578 $55,281
12/29/95 $45,393 $56,345
1/31/96 $46,893 $58,261
2/29/96 $47,298 $58,803
3/31/96 $47,716 $59,368
4/30/96 $48,375 $60,240
5/31/96 $49,562 $61,788
6/30/96 $49,714 $62,023
7/31/96 $47,488 $59,282
8/31/96 $48,436 $60,533
9/30/96 $51,114 $63,935
10/31/96 $52,474 $65,699
11/30/96 $56,365 $70,659
12/31/96 $55,225 $69,260
1/31/97 $58,591 $73,582
2/28/97 $59,001 $74,164
3/31/97 $56,546 $71,123
4/30/97 $59,863 $75,362
5/31/97 $63,443 $79,966
6/30/97 $66,261 $83,525
7/31/97 $71,402 $90,165
8/31/97 $67,369 $85,116
9/30/97 $70,985 $89,772
10/31/97 $68,570 $86,773
11/30/97 $71,660 $90,791
12/31/97 $72,834 $92,352
1/31/98 $73,599 $93,368
2/28/98 $78,854 $100,100
3/31/98 $82,830 $105,225
4/30/98 $83,619 $106,299
5/31/98 $82,123 $104,470
6/30/98 $85,454 $108,712
7/31/98 $84,497 $107,559
8/31/98 $72,264 $92,017
9/30/98 $76,851 $97,915
10/31/98 $82,982 $105,876
11/30/98 $87,965 $112,292
12/31/98 $92,989 $118,760
1/31/99 $96,799 $123,760
2/28/99 $93,746 $119,899
3/31/99 $97,429 $124,694
4/30/99 $101,145 $129,520
5/29/99 $98,697 $126,463
6/30/99 $104,086 $133,343
7/31/99 $100,799 $129,180
8/31/99 $100,251 $128,541
9/30/99 $97,459 $125,017
</TABLE>
14
<PAGE>
PERFORMANCE AT A GLANCE Equity Index Fund
- ------------------------------------------------------------------------
EQUITY INDEX FUND
The Stagecoach Equity Index Fund (the "Fund") seeks to approximate, to the
extent practicable, the total rate of return of substantially all common stocks
comprising the Standard & Poor's 500 Composite Index (the S&P 500 Index). We
invest in substantially all of the common stocks listed on the S&P 500 Index and
attempt to achieve a 95 percent correlation between the performance of the S&P
500 Index and our investment results, before expenses.
The Equity Index Fund is sub-advised by Barclays Global Fund Advisors, one of
the largest providers of index products in the world.
PERFORMANCE SUMMARY
The Stagecoach Equity Index Fund Class A posted a cumulative return of 26.82%
for the 12-month reporting period, excluding sales charges. This is below the
S&P 500 Index(4), which returned 27.81% for the same period. The Fund's Class A
shares distributed $0.53 in dividend income over the 12-month period and $3.33
in capital gains.
The broad stock indexes rebounded nicely from a brief setback in February,
with the Dow Jones Industrial Average breaking the 10,000 level and other equity
benchmarks hitting new highs during the period. The best-performing sectors
within the S&P 500 Index were technology and consumer cyclicals, while utilities
and healthcare were among the poorest performing sectors.
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 506
PORTFOLIO TURNOVER RATIO 6%
WEIGHTED MEDIAN MARKET CAP ($B) $7.5
</TABLE>
The Fund offers instant diversification across the most widely held
industrial, transportation, financial and utilities stocks because it invests in
many of the stocks held in the S&P 500 Index. Although value stocks made a brief
comeback during the second quarter of 1999, large capitalization stocks held in
the portfolio
15
<PAGE>
Equity Index Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
continued to perform strongly during the 12-month period as investors flocked to
the security of larger names and solid earnings growth. During the third quarter
of 1999, the Federal Reserve Board (the "Fed") raised short-term interest rates,
which also hurt stocks in the utilities, deep cyclical and finance sectors.
Growing investor uncertainty linked to possible further rate hikes hurt value
stocks more than growth-style stocks. Finally, increasing concern over the
impact of Y2K on stock performance throughout the remainder of the year and into
early 2000 contributed to volatility in the markets as investors anticipate
where they should be positioned for the turn of the century.
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
TECHNOLOGY 24%
FINANCE 16%
HEALTHCARE 11%
CONSUMER CYCLICALS 8%
TELECOMMUNICATIONS 8%
CONSUMER NON-CYCLICALS 8%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.3%
GENERAL ELECTRIC COMPANY 3.6%
INTEL CORPORATION 2.3%
CISCO SYSTEMS INCORPORATED 2.0%
IBM CORPORATION 2.0%
WAL-MART STORES INCORPORATED 2.0%
LUCENT TECHNOLOGIES INCORPORATED 1.8%
EXXON CORPORATION 1.7%
MERCK & COMPANY INCORPORATED 1.4%
CITIGROUP INCORPORATED 1.4%
</TABLE>
STRATEGIC OUTLOOK
Interest rate pressures may persist due to ongoing signs of a strong economy.
The primary impact of higher short-term rates should be to slow corporate
earnings growth, which may limit increases in the stock market. Y2K-related
costs and other company specific factors
16
<PAGE>
PERFORMANCE AT A GLANCE Equity Index Fund
- ------------------------------------------------------------------------
(slower revenue growth or higher costs) affecting investments in industries
within the value universe have depressed returns. In the short term, investors
may seek refuge in high quality stable growth names as a way to hedge the Y2K
risks posed by the turn of the century. Also, those same fears could lead to
increased storage of goods such as canned foods, batteries and other consumable
items. This may boost fourth quarter earnings of selected consumer stocks, but
any such boost would be short lived.
As always, we will continue to weigh opportunities on a case by case basis,
focusing on specific stocks we believe are poised for growth. We also believe
that Asia's improving financial condition bodes well for financial stocks, with
certain stocks offering attractive values at current prices.
(1) Performance shown for the Class A shares of the Stagecoach Equity Index Fund
reflects performance of the Stagecoach Corporate Stock Fund, a predecessor
portfolio with the same investment objective and policies as the Stagecoach
Equity Index Fund. Prior to January 1, 1992, performance shown or advertised
for the Class A shares of the Stagecoach Equity Index Fund reflects
performance of the Corporate Stock Fund of the Wells Fargo Investment Trust
for Retirement Programs, a predecessor portfolio of the Stagecoach Corporate
Stock Fund. Performance shown for Class O shares of the Stagecoach Equity
Index Fund for periods prior to February 1, 1999, reflects performance of
the Class B shares adjusted to reflect Class O shares charges and expenses.
Performance shown for the Class B shares of the Stagecoach Equity Index Fund
for periods prior to February 17, 1998 reflects performance of the Class A
shares of the Fund adjusted to reflect Class B sales charges and expenses.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance
including sales charge assumes the Class B share sales charge for the
corresponding time period.
17
<PAGE>
Equity Index Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
(3) The returns for Class B shares of the Fund will vary from the results shown
due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach Equity Index
Fund Class A shares since inception of the predecessor portfolio with the S&P
500 Index. The chart assumes a hypothetical $10,000 initial investment in
Class A shares and reflects all operating expenses and assumes the maximum
initial sales charge of 5.75%. The Fund is a professionally managed mutual
fund.
(4) "Standard & Poor's," "S&P," "S&P 500," Standard & Poor's 500 and 500 are
trademarks of McGraw-Hill, Inc. and have been licensed. The Fund is not
sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in
the Fund. You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
18
<PAGE>
Equity Value Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
EQUITY VALUE FUND
AVERAGE ANNUAL RETURNS (%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C>
CLASS A 4.34% 13.58% 12.60%
CLASS B 3.68% 12.89% 11.88%
CLASS C 3.69% 12.89% 11.87%
INSTITUTIONAL CLASS 4.51% 13.78% 12.71%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C>
CLASS A (1.66)% 12.25% 11.88%
CLASS B (1.10)% 12.65% 11.88%
CLASS C 2.73% 12.89% 11.87%
INSTITUTIONAL CLASS N/A N/A N/A
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH S&P 500 INDEX (4) STAGECOACH
EQUITY VALUE EQUITY VALUE
FUND CLASS A SHARES FUND INSTITUTIONAL
CLASS SHARES
<S> <C> <C> <C>
Inception $9,425 $10,000 $10,000
Jul-90 $9,378 $9,968 $9,950
Aug-90 $8,360 $9,067 $8,870
Sep-90 $7,992 $8,626 $8,480
Oct-90 $7,908 $8,589 $8,390
Nov-90 $8,477 $9,144 $8,994
Dec-90 $8,771 $9,399 $9,306
Jan-91 $9,030 $9,808 $9,581
Feb-91 $9,604 $10,510 $10,190
Mar-91 $9,882 $10,764 $10,485
Apr-91 $9,776 $10,790 $10,373
May-91 $10,084 $11,255 $10,699
Jun-91 $9,603 $10,740 $10,188
Jul-91 $10,018 $11,240 $10,630
Aug-91 $10,260 $11,506 $10,886
Sep-91 $10,154 $11,314 $10,773
Oct-91 $10,222 $11,466 $10,845
Nov-91 $9,600 $11,004 $10,186
Dec-91 $10,595 $12,262 $11,241
Jan-92 $10,744 $12,034 $11,400
Feb-92 $10,944 $12,190 $11,611
Mar-92 $10,804 $11,953 $11,463
Apr-92 $11,064 $12,304 $11,739
May-92 $10,934 $12,364 $11,601
Jun-92 $10,724 $12,180 $11,379
Jul-92 $11,046 $12,678 $11,720
Aug-92 $10,674 $12,418 $11,325
Sep-92 $10,846 $12,564 $11,507
Oct-92 $10,977 $12,607 $11,647
Nov-92 $11,452 $13,037 $12,151
Dec-92 $11,712 $13,197 $12,426
Jan-93 $12,149 $13,307 $12,890
Feb-93 $12,347 $13,488 $13,100
Mar-93 $12,826 $13,773 $13,609
Apr-93 $12,617 $13,440 $13,387
May-93 $13,035 $13,800 $13,831
Jun-93 $13,192 $13,840 $13,997
Jul-93 $13,339 $13,784 $14,153
Aug-93 $13,959 $14,307 $14,811
Sep-93 $13,907 $14,198 $14,755
Oct-93 $14,139 $14,491 $15,002
Nov-93 $14,097 $14,353 $14,957
Dec-93 $14,735 $14,527 $15,634
Jan-94 $15,368 $15,021 $16,305
Feb-94 $15,213 $14,613 $16,141
Mar-94 $14,550 $13,976 $15,438
Apr-94 $14,610 $14,155 $15,501
May-94 $14,754 $14,387 $15,654
Jun-94 $14,449 $14,035 $15,330
Jul-94 $14,762 $14,496 $15,662
Aug-94 $15,231 $15,090 $16,160
Sep-94 $14,948 $14,721 $15,860
Oct-94 $14,864 $15,052 $15,771
Nov-94 $14,332 $14,504 $15,206
Dec-94 $14,483 $14,719 $15,367
Jan-95 $14,328 $15,100 $15,202
Feb-95 $14,884 $15,688 $15,792
Mar-95 $15,272 $16,150 $16,204
Apr-95 $15,689 $16,625 $16,646
May-95 $16,170 $17,289 $17,157
Jun-95 $16,275 $17,690 $17,268
Jul-95 $16,942 $18,276 $17,976
Aug-95 $17,007 $18,322 $18,045
Sep-95 $17,427 $19,095 $18,490
Oct-95 $17,046 $19,026 $18,100
Nov-95 $17,795 $19,861 $18,908
Dec-95 $17,976 $20,243 $19,112
Jan-96 $18,306 $20,932 $19,476
Feb-96 $18,539 $21,126 $19,724
Mar-96 $19,033 $21,329 $20,264
Apr-96 $19,418 $21,643 $20,689
May-96 $19,707 $22,199 $21,011
Jun-96 $19,543 $22,283 $20,836
Jul-96 $18,673 $21,298 $19,895
Aug-96 $19,129 $21,748 $20,380
Sep-96 $19,969 $22,970 $21,280
Oct-96 $20,947 $23,604 $22,339
Nov-96 $22,619 $25,386 $24,122
Dec-96 $22,711 $24,883 $24,213
Jan-97 $23,589 $26,436 $25,166
Feb-97 $23,956 $26,645 $25,540
Mar-97 $23,090 $25,553 $24,627
Apr-97 $23,762 $27,076 $25,344
May-97 $25,603 $28,730 $27,306
Jun-97 $26,598 $30,008 $28,380
Jul-97 $28,747 $32,394 $30,673
Aug-97 $27,705 $30,580 $29,578
Sep-97 $28,790 $32,253 $30,732
Oct-97 $27,295 $31,175 $29,137
Nov-97 $28,163 $32,619 $30,063
Dec-97 $28,917 $33,180 $30,862
Jan-98 $28,755 $33,545 $30,708
Feb-98 $30,969 $35,963 $33,072
Mar-98 $32,736 $37,805 $34,967
Apr-98 $32,381 $38,190 $34,593
May-98 $31,863 $37,533 $34,043
Jun-98 $31,715 $39,057 $33,887
Jul-98 $29,974 $38,643 $32,030
Aug-98 $25,744 $33,059 $27,512
Sep-98 $27,080 $35,178 $28,942
Oct-98 $28,803 $38,038 $30,787
Nov-98 $30,027 $40,344 $32,097
Dec-98 $30,856 $42,667 $32,986
Jan-99 $30,488 $44,464 $32,595
Feb-99 $29,405 $43,076 $31,440
Mar-99 $29,832 $44,799 $31,899
Apr-99 $32,205 $46,533 $34,433
May-99 $31,395 $45,435 $33,587
Jun-99 $32,596 $47,907 $34,860
Jul-99 $31,250 $46,411 $33,441
Aug-99 $29,449 $46,181 $31,514
Sep-99 $28,255 $44,916 $30,247
</TABLE>
19
<PAGE>
Equity Value Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
EQUITY VALUE FUND
The Stagecoach Equity Value Fund (the "Fund") seeks to provide investors with
long-term capital appreciation. The Fund invests in common stocks, debt
securities and foreign companies, implementing a value strategy that targets
"out of favor" stocks. Our portfolio managers believe these companies are
underpriced relative to market indicators, making them hidden opportunities for
capital appreciation.
Allen Wisniewski and Gregg Giboney manage the Fund. Mr. Wisniewski has more
than 13 years of experience in the securities industry, with a focus on
equities. Mr. Wisniewski received his BA and MBA in Economics and Finance from
the University of California at Los Angeles. He is a Chartered Financial Analyst
and a member of the Los Angeles Society of Financial Analysts. Mr. Giboney has
been in the securities industry for 12 years. He holds a BA from Washington
State University and an MBA from the University of Portland. Mr. Giboney is a
Chartered Financial Analyst and is a board member and past President of the
Portland Society of Financial Analysts. The Fund managers work together to bring
disciplined investment expertise to equity investing.
PERFORMANCE SUMMARY
The Stagecoach Equity Value Fund Class A Shares posted a cumulative return of
4.34% for the one-year reporting period, excluding sales charges. This is below
the S&P 500 Index(4), a broad-based stock index used for comparison. The S&P 500
Index returned 27.81% for the same period.
The performance of the Fund during the 12-month period was affected by extreme
changes in market volatility and sentiment. There were times when the value
strategy was favored and times when the market ignored the fundamental value of
such stocks.
The Fund distributed $0.14 in dividend income for Class A shares over the
one-year period and $1.26 in capital gains. Keep in mind that past performance
is no guarantee of future returns.
20
<PAGE>
PERFORMANCE AT A GLANCE Equity Value Fund
- ------------------------------------------------------------------------
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 74
PORTFOLIO TURNOVER RATIO 72%
WEIGHTED MEDIAN MARKET CAP ($B) $27.5
</TABLE>
The fourth quarter of 1998 was a time of weakness for value stocks.
Significant global economic uncertainty was at the top of a lengthy list of
problems worrying investors. During this time, investors had an extreme
preference for safety, as indicated by large cash flows into very large liquid
stocks, while ignoring many less expensive stocks with favorable fundamental
characteristics. Similarly, investors have opted for safety in the middle to
later part of 1999 as well. As opposed to 1998, when the market seemed worried
about economic weakness, the market was very concerned during the period about
too much economic growth, higher interest rates and potential Y2K problems.
Again, fundamentals had been put aside. The strongest performance for value
stocks came in the second quarter of 1999, when the global economic environment
began improving and Y2K seemed far off as an investment issue.
The 12-month period was difficult for most financial stocks. The extreme
swings in economic optimism and pessimism made performance difficult for what is
usually the largest sector of the Fund. Results were mixed for consumer and
cyclical issues, with larger stocks generally outperforming smaller issues.
Issues in communications and energy sectors posted some of the best performance
among the Fund's holdings.
21
<PAGE>
Equity Value Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 28%
CAPITAL GOODS 15%
COMMUNICATION 14%
ENERGY 11%
UTILITIES 9%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
IBM CORPORATION 4.0%
MOBIL CORPORATION 3.1%
AT & T CORPORATION 3.0%
CITIGROUP INCORPORATED 2.8%
GTE CORPORATION 2.6%
PROVIDIAN FINANCIAL CORPORATION 2.6%
CANADIAN NATIONAL RAILWAY COMPANY 2.4%
AMERITECH CORPORATION 2.3%
HONEYWELL INCORPORATED 2.2%
ENRON CORPORATION 2.1%
</TABLE>
STRATEGIC OUTLOOK
Looking ahead, the passing of December 31, 1999 should lead to an improved
environment for a value strategy. From a value investment perspective, Y2K
appears to have put a cloud over current economic growth and optimism, which
usually favors a value strategy.
For the Fund's strategy, benefits of moving past Y2K will more than offset any
"post Y2K" adjustments experienced within the economy. The Fund's objectives
continue to include seeking securities with compelling valuation, a near-term
catalyst to move the stock price higher, and strong, effective management teams.
(1) Performance shown for the Class A shares of the Stagecoach Equity Value Fund
for periods prior to September 6, 1996 reflects performance of the Investor
shares of the Pacifica Equity Value Fund, a predecessor portfolio with the
same investment objective and policies as the Stagecoach Equity Value Fund.
Performance shown or advertised for the Class B shares of the Stagecoach
Equity Value Fund for periods prior to September 6, 1996 reflects
performance of Investor shares of the predecessor portfolio, with
22
<PAGE>
PERFORMANCE AT A GLANCE Equity Value Fund
- ------------------------------------------------------------------------
expenses of the Investor shares adjusted to reflect Class B sales charges and
expenses. Performance shown or advertised for Class C shares of the
Stagecoach Equity Value Fund for the periods prior to April 1, 1998 reflects
performance of the Class B shares, adjusted for Class C sales charges and
expenses. Performance shown for the Institutional Class shares of the
Stagecoach Equity Value Fund for periods prior to September 6, 1996 reflects
the performance of the Institutional Class shares of the predecessor
portfolio.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for
Class C shares is 1.00%. Class B and C share performance including sales
charge assumes the sales charge for the corresponding time period. There are
no sales charges for the Institutional Class shares.
(3) The returns for Class B and Class C shares of the Fund will vary from the
results shown due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach U.S.
Government Income Fund Class A and Institutional shares since inception of the
predecessor portfolio with the S&P 500 Index. The chart assumes a hypothetical
$10,000 initial investment in Class A and Class I shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 5.75%. The Fund is a professionally managed mutual fund.
(4) 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. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
23
<PAGE>
Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
GROWTH FUND
AVERAGE ANNUAL RETURNS (%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (8/2/90)
<S> <C> <C> <C>
CLASS A 29.54% 20.35% 16.30%
CLASS B 28.68% 19.62% 15.58%
INSTITUTIONAL CLASS 29.69% 20.38% 16.32%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (8/2/90)
<S> <C> <C> <C>
CLASS A 22.09% 18.93% 15.55%
CLASS B 23.68% 19.42% 15.58%
INSTITUTIONAL CLASS N/A N/A N/A
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH GROWTH FUND CLASS A SHARES S&P 500 INDEX (4) STAGECOACH GROWTH FUND INSTITUTIONAL CLASS SHARES
<S> <C> <C> <C>
Inception $9,425 $10,000 $10,000
Aug-90 $9,482 $9,096 $10,060
Sep-90 $9,500 $8,653 $10,080
Oct-90 $9,548 $8,617 $10,130
Nov-90 $9,585 $9,174 $10,170
Dec-90 $9,698 $9,429 $10,290
Jan-91 $10,066 $9,840 $10,680
Feb-91 $10,443 $10,543 $11,080
Mar-91 $10,565 $10,799 $11,210
Apr-91 $10,603 $10,824 $11,250
May-91 $11,037 $11,291 $11,710
Jun-91 $10,499 $10,774 $11,140
Jul-91 $11,037 $11,276 $11,710
Aug-91 $11,310 $11,543 $12,000
Sep-91 $11,197 $11,350 $11,880
Oct-91 $11,395 $11,503 $12,090
Nov-91 $10,905 $11,039 $11,570
Dec-91 $12,102 $12,302 $12,840
Jan-92 $12,045 $12,073 $12,780
Feb-92 $12,271 $12,229 $13,020
Mar-92 $12,030 $11,991 $12,764
Apr-92 $12,352 $12,343 $13,106
May-92 $12,514 $12,404 $13,277
Jun-92 $12,215 $12,219 $12,960
Jul-92 $12,796 $12,718 $13,577
Aug-92 $12,548 $12,458 $13,314
Sep-92 $12,735 $12,604 $13,512
Oct-92 $12,974 $12,648 $13,766
Nov-92 $13,463 $13,079 $14,284
Dec-92 $13,729 $13,239 $14,566
Jan-93 $14,075 $13,350 $14,934
Feb-93 $13,778 $13,532 $14,619
Mar-93 $14,051 $13,817 $14,909
Apr-93 $13,714 $13,483 $14,551
May-93 $14,032 $13,844 $14,888
Jun-93 $13,769 $13,885 $14,609
Jul-93 $13,670 $13,829 $14,504
Aug-93 $14,368 $14,353 $15,245
Sep-93 $14,364 $14,243 $15,241
Oct-93 $14,855 $14,538 $15,761
Nov-93 $14,505 $14,399 $15,389
Dec-93 $14,888 $14,573 $15,796
Jan-94 $15,463 $15,069 $16,407
Feb-94 $15,221 $14,660 $16,150
Mar-94 $14,350 $14,021 $15,225
Apr-94 $14,522 $14,201 $15,408
May-94 $14,512 $14,434 $15,397
Jun-94 $14,183 $14,080 $15,048
Jul-94 $14,620 $14,542 $15,512
Aug-94 $15,088 $15,138 $16,008
Sep-94 $14,898 $14,768 $15,807
Oct-94 $15,021 $15,100 $15,937
Nov-94 $14,562 $14,550 $15,450
Dec-94 $14,844 $14,766 $15,750
Jan-95 $14,918 $15,149 $15,828
Feb-95 $15,634 $15,738 $16,588
Mar-95 $15,967 $16,202 $16,941
Apr-95 $16,199 $16,679 $17,188
May-95 $16,949 $17,344 $17,983
Jun-95 $17,357 $17,747 $18,416
Jul-95 $17,866 $18,335 $18,956
Aug-95 $18,142 $18,381 $19,249
Sep-95 $18,765 $19,156 $19,909
Oct-95 $18,180 $19,088 $19,289
Nov-95 $18,903 $19,925 $20,056
Dec-95 $19,135 $20,309 $20,302
Jan-96 $19,556 $20,999 $20,749
Feb-96 $20,310 $21,194 $21,549
Mar-96 $20,355 $21,398 $21,597
Apr-96 $21,076 $21,712 $22,362
May-96 $21,631 $22,270 $22,951
Jun-96 $21,161 $22,355 $22,452
Jul-96 $19,850 $21,367 $21,061
Aug-96 $20,466 $21,818 $21,714
Sep-96 $21,517 $23,044 $22,790
Oct-96 $22,202 $23,680 $23,517
Nov-96 $23,656 $25,468 $25,057
Dec-96 $23,291 $24,964 $24,664
Jan-97 $24,752 $26,521 $26,211
Feb-97 $24,064 $26,731 $25,492
Mar-97 $23,208 $25,635 $24,594
Apr-97 $24,223 $27,163 $25,675
May-97 $25,819 $28,822 $27,379
Jun-97 $26,406 $30,105 $27,994
Jul-97 $28,670 $32,498 $30,402
Aug-97 $26,963 $30,678 $28,596
Sep-97 $28,058 $32,356 $29,755
Oct-97 $27,161 $31,276 $28,813
Nov-97 $27,585 $32,724 $29,273
Dec-97 $27,728 $33,287 $29,427
Jan-98 $28,223 $33,653 $29,938
Feb-98 $29,833 $36,079 $31,651
Mar-98 $31,250 $37,926 $33,169
Apr-98 $31,477 $38,313 $33,399
May-98 $30,982 $37,654 $32,875
Jun-98 $32,516 $39,183 $34,506
Jul-98 $32,304 $38,768 $34,288
Aug-98 $27,715 $33,166 $29,418
Sep-98 $29,037 $35,292 $30,815
Oct-98 $31,461 $38,161 $33,395
Nov-98 $33,560 $40,474 $35,628
Dec-98 $35,831 $42,805 $38,031
Jan-99 $37,180 $44,607 $39,477
Feb-99 $35,946 $43,215 $38,166
Mar-99 $37,714 $44,944 $40,061
Apr-99 $38,817 $46,683 $41,238
May-99 $37,566 $45,581 $39,911
Jun-99 $39,788 $48,061 $42,261
Jul-99 $38,652 $46,561 $41,068
Aug-99 $38,701 $46,330 $41,113
Sep-99 $37,615 $45,060 $39,964
</TABLE>
24
<PAGE>
PERFORMANCE AT A GLANCE Growth Fund
- ------------------------------------------------------------------------
GROWTH FUND
The Stagecoach Growth Fund (the "Fund") seeks to earn current income and
achieve long-term capital appreciation by investing primarily in common stocks
and preferred stocks, and debt securities that are convertible into common
stocks. The Fund maintains a large company emphasis. These companies represent
some of America's best-known firms with long histories of increasing earnings.
Kelli Hill manages the Stagecoach Growth Fund. Ms. Hill has 15 years of
experience in the securities industry. Prior to joining Wells Fargo in 1987,
Ms. Hill was an institutional equity trader for E.F. Hutton. Ms. Hill holds a BA
from the University of Southern California and is a Chartered Financial Analyst
Level II candidate.
PERFORMANCE SUMMARY
The Stagecoach Growth Fund Class A shares posted a cumulative return of 29.54%
for the one-year reporting period, excluding sales charges. This is above the
S&P 500 Index(4), which returned 27.81% for the same period. The Fund
distributed $0.01 in dividend income for Class A shares over the one-year period
and $3.28 in capital gains.
The Fund finished the one-year period ended September 30, 1999 strongly. With
the exception of the second quarter of 1999, the market had narrow leadership
throughout the period. Technology has been the clear leader over the period,
followed by communications services, capital goods and consumer cyclicals.
Laggards during the period included utilities, healthcare and transportation.
Stock selection during the period was responsible for virtually all of the
Fund's outperformance.
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 96
PORTFOLIO TURNOVER RATIO 38%
WEIGHTED MEDIAN MARKET CAP ($B) $85.8
</TABLE>
25
<PAGE>
Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
A global recovery over the past 12 months has had a major impact on the debt
and equity markets. As a result, cyclicals and capital goods have been the
market leaders, and the Fund has been positioned to benefit from this trend.
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
TECHNOLOGY 24%
FINANCE 14%
CAPITAL GOODS 11%
CONSUMER STAPLES 11%
HEALTHCARE 10%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.5%
GENERAL ELECTRIC COMPANY 3.5%
AMERICAN INTERNATIONAL GROUP INCORPORATED 3.0%
INTEL CORPORATION 2.8%
CISCO SYSTEMS INCORPORATED 2.4%
ALLIED SIGNAL INCORPORATED 2.3%
IBM CORPORATION 2.3%
TYCO INTERNATIONAL LIMITED 2.2%
SBC COMMUNICATIONS INCORPORATED 2.1%
LUCENT TECHNOLOGIES INCORPORATED 2.0%
</TABLE>
In leading sectors, owning the right stocks has been the key to the Fund's
outperformance during the period. In technology, large holdings such as Texas
Instruments, Nortel Networks and Cisco Systems contributed to the Fund's
performance. In the capital goods sector, Allied Signal, Tyco and Danaher were
the largest contributors. During the period, the Fund went from underweight
positions in energy and capital goods to overweight positions, and from an
overweight position in healthcare to an underweight position. The Fund's
underweight position in healthcare, which was one of the weaker performing
sectors during the period, positively contributed to the Fund's performance.
26
<PAGE>
PERFORMANCE AT A GLANCE Growth Fund
- ------------------------------------------------------------------------
STRATEGIC OUTLOOK
The current market environment is reminiscent of last year as the growth style
was down in the third quarter, and then finished with a strong rally through
year-end. As we position the style into the fourth quarter, we plan to take
advantage of market fundamentals by stressing stock selection. As always, we
will continue to focus on the companies with accelerated earnings that we
believe to be consistent and stable.
(1) Performance shown for the Class A shares of the Stagecoach Growth Fund for
periods prior to January 1, 1992, reflects performance of the shares of the
Select Stock Fund of Wells Fargo Investment Trust for Retirement Programs, a
predecessor portfolio with the same investment objective and policies as the
Stagecoach Growth Fund. Performance shown or advertised for the Class B
shares of the Stagecoach Growth Fund for the periods from January 1, 1992 to
January 1, 1995 reflects performance of the Class A shares of the Fund
adjusted to reflect Class B sales charges and expenses. Performance shown or
advertised for the Class B shares of the Stagecoach Growth Fund for periods
prior to January 1, 1992, reflects performance of the shares of the
predecessor portfolio, with expenses adjusted to reflect Class B sales
charges and expenses. Performance shown or advertised for Institutional
Class shares of the Stagecoach Growth Fund for the period prior to
September 6, 1996 reflects performance of the Class A shares (as described
above) adjusted for Institutional Class share expenses.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance
including sales charge assumes the Class B share sales charge for the
corresponding time period. There are no sales charges for the Institutional
Class shares.
(3) The returns for Class B shares of the Fund will vary from the results shown
due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach Growth
Fund Class A and Institutional shares since inception of the predecessor
portfolio with the S&P 500 Index. The chart assumes a hypothetical $10,000
initial investment in Class A
27
<PAGE>
Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
and Class I shares and reflects all operating expenses and, for Class A shares,
assumes the maximum initial sales charge of 5.75%. The Fund is a
professionally managed mutual fund.
(4) 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. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
28
<PAGE>
International Equity Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
AVERAGE ANNUAL RETURNS (%) (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR (9/24/97)
<S> <C> <C>
CLASS A 35.68% 12.59%
CLASS B 34.84% 11.88%
CLASS C 34.84% 11.88%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR (9/24/97)
<S> <C> <C>
CLASS A 27.90% 9.34%
CLASS B 29.84% 10.54%
CLASS C 33.84% 11.88%
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH INTERNATIONAL EQUITY FUND CLASS A SHARES MSCI EAFE INDEX (4)
<S> <C> <C>
Inception $9,425 $10,000
9/30/97 $9,510 $10,140
10/31/97 $8,954 $9,360
11/30/97 $9,029 $9,265
12/31/97 $9,116 $9,345
1/31/98 $9,323 $9,772
2/28/98 $9,955 $10,400
3/31/98 $10,416 $10,720
4/30/98 $10,605 $10,807
5/31/98 $10,596 $10,757
6/30/98 $10,746 $10,841
7/31/98 $10,869 $10,954
8/31/98 $9,134 $9,599
9/30/98 $8,823 $9,307
10/31/98 $9,606 $10,280
11/30/98 $10,162 $10,809
12/31/98 $10,577 $11,238
1/31/99 $10,756 $11,208
2/28/99 $10,567 $10,943
3/31/99 $10,897 $11,403
4/30/99 $11,312 $11,867
5/29/99 $10,926 $11,258
6/30/99 $11,548 $11,700
7/31/99 $11,906 $12,051
8/31/99 $11,802 $12,098
9/30/99 $11,972 $12,222
</TABLE>
29
<PAGE>
International Equity Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
The Stagecoach International Equity Fund (the "Fund") seeks to earn total
return, with an emphasis on capital appreciation, over the long-term by
investing in equity securities of non-U.S. companies. Stock selection for the
Fund is driven by company fundamentals, not country allocation. Target companies
generally have a history of effective management, prudent financial and
accounting policies, and an ability to capitalize on a changing business
environment.
Katherine Schapiro, CFA, and Stacey Ho, CFA, manage the International Equity
Fund. Ms. Schapiro has 18 years of investment experience, with extensive
international investment expertise. Ms. Schapiro is a graduate of Stanford
University, a Chartered Financial Analyst, and President of the Security
Analysts of San Francisco.
Ms. Ho has 10 years of experience in the investment industry and has dedicated
her investment management career to international money management. She received
a BS degree from San Diego State University, an MS from Stanford University, and
an MBA from the University of California in Los Angeles. Ms. Ho is also a
Chartered Financial Analyst.
PERFORMANCE SUMMARY
The Stagecoach International Equity Fund Class A shares posted a 35.68%
cumulative return for the 12-month reporting period that ended September 30,
1999, excluding sales charges. This is above the benchmark for the Fund, the
Morgan Stanley Capital International Europe, Australasia and Far East Index
("MSCI EAFE Index")(4), which returned 30.95% for the same period, and the
Lipper International Fund Index(5), which returned 29.80% over this time frame.
Several factors contributed to the Fund's performance during the period. The
first was the explosive growth in telecommunications equipment and wireless
services where many European companies are product leaders. Major holdings in
the Fund such as Ericsson (Sweden), Nokia (Finland) and Vodaphone (Great
Britain), were
30
<PAGE>
PERFORMANCE AT A GLANCE International Equity Fund
- ------------------------------------------------------------------------
all beneficiaries of this trend. Another important development was the strong
turn in the global electronics cycle, boosting the returns for companies such as
ST Microelectronics (Netherlands), Phillips Electronics (Netherlands) and ARM
Holdings (Great Britain). Stock selection was a positive attribute in the Fund's
Latin American holdings, led by Telefonos de Mexico and Aracruz of Brazil,
despite Brazil's currency devaluation in January of 1999.
The most dramatic change since September 30, 1998, was the turnaround in the
Asian markets. During the period, the Fund's investments in Japanese companies
were more than doubled to nearly 20% of the Fund's assets, and the Fund's
holdings in other Asian countries were increased from last year. Gains from
several of the Fund's key holdings in the Asian region contributed significantly
to the Fund's relative performance including Sony, Seven-Eleven Japan, Takefuji
and Secom (Japan), as well as DBS Group in Singapore.
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 69
PORTFOLIO TURNOVER 41%
WEIGHTED MEDIAN MARKET CAP ($B) $22.5
</TABLE>
The beneficial change in the international investment environment was a
combination of lower interest rates in the U.S. and Europe, stabilization of the
global currency crisis and the return of investor confidence in global financial
markets. The Fund was well positioned to weather the financial storms of late
1997 and 1998 with a heavier emphasis on European companies and avoiding the
most troubled areas of the world. In the first months of 1999, profits among the
European holdings were recognized, seeing that European equities were sporting
excessive valuations despite slowing growth forecasts. In contrast, the crisis
appeared over for several Asian countries and the reasons to minimize
investments in the region had diminished. Initial investments in Korea and
Taiwan, and increased holdings in Singapore and Japan, reflected confidence in
Asia's recovery story.
31
<PAGE>
International Equity Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
Outside of telecommunications and electronics, the Fund has benefited from
other trends in the global markets. The Internet, with its communications,
service and cost-savings capabilities, is just beginning to take hold outside of
the U.S. The Fund has investments in companies such as Softbank (Japan), Fujitsu
(Japan), and Singapore Press (Singapore), to take advantage of this explosive
industry. Financial services also is a growth industry around the world, and the
Fund's positions in AXA (France), Deutsche Bank (Germany), San Paolo-IMI
(Italy), Amvescap (Great Britain) and BSCH (Spain), are some of the investments
in this sector. Finally, several of the Fund's stocks have been involved in
merger and acquisition activity such as Total Petrofina (France), Select
Appointments (U.K.) and Veba (Germany).
TOP HOLDINGS BY COUNTRY (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
JAPAN 20%
GREAT BRITAIN 16%
FRANCE 13%
NETHERLANDS 7%
GERMANY 5%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
ST MICROELECTRONICS 3.2%
SEVEN ELEVEN JAPAN COMPANY LIMITED 2.5%
VODAFONE GROUP PLC ADR 2.5%
SONY CORPORATION 2.4%
TAKEFUJI CORP 2.3%
SELECT APPOINTMENTS HOLDINGS PLC 2.3%
SECOM COMPANY LIMITED 2.3%
DBS BANK LIMITED 2.2%
DEUTSCHE BANK AG -- REG 2.2%
ARM HOLDINGS PLC ADR 2.1%
</TABLE>
32
<PAGE>
PERFORMANCE AT A GLANCE International Equity Fund
- ------------------------------------------------------------------------
STRATEGIC OUTLOOK
The stage is set for improving global growth through the remainder of 1999 and
into 2000. Japan is an important factor in the global picture over the next 12
to 18 months. Most economists and strategists see brighter prospects ahead,
although sustained strength in the currency could derail the fragile recovery
just beginning. Nevertheless, the restructuring of Japanese corporations for
profitability, and deregulation of industries for more open competition, should
provide a floor for the market even if growth prospects fade in the near term.
In Europe, mergers and acquisitions activity will remain a dominant force.
Consolidation is expected across a variety of industries including energy,
utilities, banks and retailers, as well as telecommunications and multimedia
providers. The long-term implications are positive for improving productivity,
returns on equity and corporate profitability. As always, we will maintain our
disciplined investment strategy and continually assess the risks and rewards of
the Fund's investments.
(1) Performance shown for the Class C shares of the Stagecoach International
Equity Fund for periods prior to April 1, 1998, reflects performance of the
Class B shares, adjusted for Class C sales charges and expenses.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
An investment in the Stagecoach International Equity Fund presents certain
additional risks that may not be present in a mutual fund that invests
largely in domestic stocks. For example, investments in foreign and emerging
markets present special risks including: currency fluctuation, the potential
for diplomatic and political instability and liquidity risks, foreign
taxation and differences in auditing and other financial standards.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. The
33
<PAGE>
International Equity Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
maximum sales charge for Class C shares is 1.00%. Class B and Class C share
performance with sales charge assumes the sales charge for the corresponding
time period.
(3) The returns for Class B shares of the Fund will vary from the results shown
due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach
International Equity Fund Class A shares since inception of the predecessor
portfolio with the Morgan-Stanley Capital Investment-Europe, Australasia and
Far East Index. The chart assumes a hypothetical $10,000 investment in Class A
shares and reflects all operating expenses and assumes the maximum initial
sales charge of 5.75%. The Fund is a professionally managed mutual fund.
(4) The Morgan Stanley Capital International Europe, Australasia and Far East
Index is an unmanaged index comprised of common stocks sold on stock
exchanges and over-the-counter markets within the listed regions. The Index
presented here is not available directly for investment.
(5) The Lipper International Fund Index is comprised of funds that invest their
assets in securities with primary trading markets outside of the United
States. You cannot invest directly in an index.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
34
<PAGE>
PERFORMANCE AT A GLANCE Small Cap Fund
- ------------------------------------------------------------------------
SMALL CAP FUND
AVERAGE ANNUAL RETURNS (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 3-YEAR (11/1/94)
<S> <C> <C> <C>
CLASS A 58.81% 11.23% 25.16%
CLASS B 57.66% 10.48% 24.37%
CLASS C 57.69% 10.47% 24.36%
INSTITUTIONAL CLASS 59.98% 11.84% 26.21%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 3-YEAR (11/1/94)
<S> <C> <C> <C>
CLASS A 49.67% 9.05% 23.67%
CLASS B 52.66% 9.66% 24.19%
CLASS C 56.69% 10.47% 24.36%
INSTITUTIONAL CLASS N/A N/A N/A
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH SMALL RUSSELL STAGECOACH SMALL
CAP FUND 2000 INDEX (4) CAP FUND
CLASS A SHARES INSTITUTIONAL
CLASS SHARES
<S> <C> <C> <C>
Inception $9,425 $10,000 $10,000
Nov-94 $9,548 $9,596 $10,120
Dec-94 $9,943 $9,853 $10,560
Jan-95 $9,972 $9,729 $10,590
Feb-95 $10,518 $10,134 $11,170
Mar-95 $11,074 $10,307 $11,770
Apr-95 $11,385 $10,536 $12,100
May-95 $11,630 $10,717 $12,370
Jun-95 $12,856 $11,273 $13,670
Jul-95 $14,260 $11,923 $15,170
Aug-95 $14,288 $12,169 $15,200
Sep-95 $15,174 $12,387 $16,150
Oct-95 $14,703 $11,834 $15,650
Nov-95 $16,098 $12,331 $17,150
Dec-95 $16,814 $12,656 $17,910
Jan-96 $17,144 $12,642 $18,260
Feb-96 $18,134 $13,037 $19,320
Mar-96 $18,963 $13,303 $20,210
Apr-96 $21,489 $14,014 $22,910
May-96 $23,148 $14,566 $24,680
Jun-96 $21,404 $13,968 $22,830
Jul-96 $18,266 $12,748 $19,490
Aug-96 $20,217 $13,489 $21,580
Sep-96 $21,105 $14,016 $22,450
Oct-96 $19,685 $13,801 $20,930
Nov-96 $20,146 $14,369 $21,430
Dec-96 $20,776 $14,746 $22,110
Jan-97 $21,086 $15,041 $22,440
Feb-97 $19,187 $14,675 $20,430
Mar-97 $17,843 $13,982 $19,010
Apr-97 $16,884 $14,022 $18,000
May-97 $20,579 $15,582 $21,940
Jun-97 $22,252 $16,251 $23,730
Jul-97 $23,136 $17,006 $24,690
Aug-97 $23,869 $17,396 $25,470
Sep-97 $26,445 $18,669 $28,230
Oct-97 $24,546 $17,850 $26,210
Nov-97 $23,662 $17,733 $25,280
Dec-97 $23,081 $18,044 $24,668
Jan-98 $22,702 $17,759 $24,275
Feb-98 $24,228 $19,071 $25,921
Mar-98 $26,235 $19,857 $28,078
Apr-98 $26,163 $19,966 $28,013
May-98 $24,094 $18,890 $25,812
Jun-98 $24,832 $18,930 $26,618
Jul-98 $22,599 $17,396 $24,243
Aug-98 $16,937 $14,018 $18,174
Sep-98 $18,288 $15,116 $19,634
Oct-98 $18,288 $15,732 $19,645
Nov-98 $19,671 $16,557 $21,138
Dec-98 $21,702 $17,581 $23,339
Jan-99 $22,865 $17,815 $24,588
Feb-99 $20,418 $16,372 $21,973
Mar-99 $22,134 $16,628 $23,834
Apr-99 $24,216 $18,117 $26,084
May-99 $24,803 $18,382 $26,732
Jun-99 $27,360 $19,213 $29,501
Jul-99 $27,693 $18,686 $29,890
Aug-99 $27,382 $17,995 $29,548
Sep-99 $29,043 $17,999 $31,410
</TABLE>
35
<PAGE>
Small Cap Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
SMALL CAP FUND
The Stagecoach Small Cap Fund (the "Fund") seeks above-average, long-term
capital appreciation in order to provide investors with a rate of total return
exceeding that of the Russell 2000 Index, before fees and expenses over a time
horizon of three to five years. The Fund invests in growth-oriented common
stocks with market capitalizations that fall within the range of the Russell
2000 Index at the time of acquisition. Due to its relatively small size, the
Fund's investments may offer substantial growth potential, but they also entail
greater risk than larger, more established companies.
Tom Zeifang manages the Small Cap Fund. Mr. Zeifang joined Wells Capital
Management in 1995. Before that he spent three years as an analyst at Fleet
Investment Advisors and three years as an assistant portfolio manager at Marine
Midland Bank. Mr. Zeifang is responsible for portfolio management and
fundamental security analysis of the small and mid-cap growth equity team.
PERFORMANCE SUMMARY
The Stagecoach Small Cap Class A Shares posted a cumulative return of 58.81%
for the one-year reporting period, excluding sales charges, outperforming the
Russell 2000 Index(4), which returned 19.07% for the same period.
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 131
PORTFOLIO TURNOVER RATIO 249%
WEIGHTED MEDIAN MARKET CAP ($B) $1.1
</TABLE>
The Fund remained mostly sector-neutral midway through the 12-month period,
being underweighted in basic materials and materials processing sectors. This
positioning helped reduce commodity risk and positively affected performance.
During the first quarter of 1999, the only sector of the Russell 2000 Index to
generate a positive return was technology, which was largely driven by
internet-related issues. Later in the period, the Fund's
36
<PAGE>
PERFORMANCE AT A GLANCE Small Cap Fund
- ------------------------------------------------------------------------
emphasis was on retail, oil service and semiconductor stocks, which contributed
positively to the Fund's performance. During the third quarter of 1999, the Fund
performed well primarily because of its many large holdings that experienced
strong performances, including Broadvision, Mercury Interactive and Cumulus
Media. The Fund was slightly overweight in the technology sector and strongly
overweight in top-performing subsectors. The Fund stayed slightly underweight in
healthcare, although the biotechnology subsector remains a focus of the Fund as
this segment continues to demonstrate very positive fundamentals.
Internet advertising firms and radio companies are focus areas of the Fund's
consumer holdings and contributed to the Fund's performance. Software and
semiconductors remain important segments of the technology sector, while
biotechnology is a priority within the healthcare sector.
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
TECHNOLOGY 49%
CONSUMER CYCLICALS 13%
HEALTHCARE 10%
FINANCE 9%
CONSUMER STAPLES 7%
</TABLE>
TOP TEN EQUITY HOLDINGS(6) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
MERCURY INTERACTIVE CORPORATION 2.5%
BROADVISION INCORPORATED 2.2%
CUMULUS MEDIA INCORPORATED 2.1%
VIGNETTE CORPORATION 1.9%
MICROMUSE INCORPORATED 1.8%
ABACUS DIRECT CORPORATION 1.8%
POWER INTEGRATIONS INCORPORATED 1.8%
LAM RESEARCH CORPORATION 1.7%
EMMIS COMMUNICATIONS CORPORATION 1.5%
PHARMACYCLICS INCORPORATED 1.4%
</TABLE>
37
<PAGE>
Small Cap Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
STRATEGIC OUTLOOK
As of September 30, 1999, the Fund was overweighted in the most attractive
industries in this current economy, both domestic and international, and
continuing to significantly overweight the leading companies of such segments
may lead to continued strong performance. Small cap stocks appear to be in the
early stages of a rebound following a long bear market relative to large cap
stocks. The opportunities may be substantial over the long-run from current
levels.
(1) Performance shown for the Class A shares of the Stagecoach Small Cap Fund
for periods prior to September 16, 1996, reflects performance of the shares
of the Small Capitalization Growth Fund for BRP Employment Retirement Plans
(an unregistered bank collective investment fund), a predecessor portfolio
with the same investment objective and policies as the Stagecoach Small Cap
Fund. Performance shown or advertised for the Class B, Class C and
Institutional Class shares of the Stagecoach Small Cap Fund for periods
prior to September 16, 1996, reflects performance of shares of the
predecessor portfolio, with expenses adjusted to reflect Class B, Class C
and Institutional Class shares, respectively.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
There may be some additional risks associated with investments in smaller
and/or newer companies because their shares tend to be less liquid than
securities of larger companies. Furthermore, shares of small and new
companies are generally more sensitive to purchase and sales transactions
and changes in the issuer's financial condition and, therefore, the prices
of such stocks may be more volatile than those of larger company stocks.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for
Class C shares is 1.00%. Class B and C share performance including sales
charge assumes the sales charge for the corresponding time period. There are
no sales charges for the Institutional Class shares.
(3) The returns for Class B and Class C shares of the Fund will vary from the
results shown due to different expenses and load structures.
38
<PAGE>
PERFORMANCE AT A GLANCE Small Cap Fund
- ------------------------------------------------------------------------
The accompanying chart compares the performance of the Stagecoach Small Cap
Fund Class A and Institutional shares since inception of the predecessor
portfolio with the Russell 2000 Index. The chart assumes a hypothetical
$10,000 initial investment in Class A and Class I shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 5.75%. The Fund is a professionally managed mutual fund.
(4) The Russell 2000 Index is an unmanaged index of the 2,000 smallest stocks
(by market value) in the Russell 3000 Index. It currently represents 7% of
the U.S. equity markets, while the Russell 3000 comprises approximately 98%
of the U.S. equity markets. You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
39
<PAGE>
Strategic Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
STRATEGIC GROWTH FUND
AVERAGE ANNUAL RETURNS (as of September 30, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (1/20/93)
<S> <C> <C> <C>
CLASS A 37.91% 15.25% 16.39%
CLASS B 37.02% 14.44% 15.38%
CLASS C 36.94% 14.42% 15.36%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (1/20/93)
<S> <C> <C> <C>
CLASS A 30.01% 13.90% 15.37%
CLASS B 32.02% 14.21% 15.38%
CLASS C 35.94% 14.42% 15.36%
</TABLE>
GROWTH OF A $10,000 INVESTMENT(3)
----------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STAGECOACH STRATEGIC GROWTH FUND CLASS A SHARES S&P 500 INDEX (4)
<S> <C> <C>
Inception $9,425 $10,000
Jan-93 $9,444 $10,084
Feb-93 $9,661 $10,221
Mar-93 $10,170 $10,437
Apr-93 $10,085 $10,184
May-93 $11,095 $10,457
Jun-93 $11,207 $10,488
Jul-93 $11,235 $10,445
Aug-93 $11,982 $10,842
Sep-93 $12,749 $10,759
Oct-93 $12,759 $10,981
Nov-93 $12,343 $10,876
Dec-93 $12,871 $11,008
Jan-94 $13,544 $11,382
Feb-94 $13,563 $11,073
Mar-94 $12,257 $10,591
Apr-94 $12,354 $10,726
May-94 $12,345 $10,902
Jun-94 $11,457 $10,635
Jul-94 $11,760 $10,984
Aug-94 $12,871 $11,435
Sep-94 $12,832 $11,155
Oct-94 $13,446 $11,406
Nov-94 $13,105 $10,990
Dec-94 $13,415 $11,153
Jan-95 $13,213 $11,442
Feb-95 $13,950 $11,888
Mar-95 $14,646 $12,239
Apr-95 $14,879 $12,598
May-95 $15,343 $13,101
Jun-95 $17,220 $13,405
Jul-95 $18,805 $13,849
Aug-95 $18,977 $13,883
Sep-95 $19,451 $14,469
Oct-95 $18,835 $14,417
Nov-95 $19,254 $15,050
Dec-95 $19,118 $15,341
Jan-96 $19,425 $15,862
Feb-96 $20,323 $16,010
Mar-96 $20,402 $16,163
Apr-96 $23,073 $16,401
May-96 $24,017 $16,822
Jun-96 $22,232 $16,886
Jul-96 $19,277 $16,140
Aug-96 $20,459 $16,481
Sep-96 $22,062 $17,407
Oct-96 $21,016 $17,887
Nov-96 $21,790 $19,238
Dec-96 $21,091 $18,857
Jan-97 $21,882 $20,035
Feb-97 $19,534 $20,192
Mar-97 $17,863 $19,362
Apr-97 $17,634 $20,518
May-97 $20,737 $21,767
Jun-97 $21,160 $22,744
Jul-97 $23,370 $24,553
Aug-97 $23,668 $23,178
Sep-97 $26,049 $24,448
Oct-97 $24,309 $23,631
Nov-97 $23,382 $24,725
Dec-97 $22,722 $25,151
Jan-98 $22,118 $25,427
Feb-98 $24,053 $27,261
Mar-98 $25,624 $28,656
Apr-98 $25,602 $28,949
May-98 $23,393 $28,451
Jun-98 $24,736 $29,606
Jul-98 $23,018 $29,292
Aug-98 $17,349 $25,059
Sep-98 $18,919 $26,666
Oct-98 $19,193 $28,834
Nov-98 $20,650 $30,581
Dec-98 $23,245 $32,342
Jan-99 $23,837 $33,704
Feb-99 $21,902 $32,652
Mar-99 $23,496 $33,958
Apr-99 $24,236 $35,273
May-99 $23,621 $34,440
Jun-99 $25,704 $36,314
Jul-99 $24,941 $35,180
Aug-99 $25,476 $35,006
Sep-99 $26,091 $34,046
</TABLE>
40
<PAGE>
PERFORMANCE AT A GLANCE Strategic Growth Fund
- ------------------------------------------------------------------------
STRATEGIC GROWTH FUND
The Stagecoach Strategic Growth Fund (the "Fund") seeks to provide investors
with an above average level of long-term capital appreciation. The Fund invests
in equity securities of companies expected to experience strong growth in
revenues, earnings and assets. Managed with a mid-cap emphasis, at least 65
percent of the Fund's assets will be invested in companies with market
capilatizations that fall between the range of $470 million and $11.3 billion at
the time the stock is bought.
Tom Zeifang and Chris Greene manage the Strategic Growth Fund. Mr. Zeifang
joined Wells Capital Management in 1995. Before that he spent three years as an
analyst at Fleet Investment Advisors and three years as an assistant portfolio
manager at Marine Midland Bank. Before joining Wells Capital Management in 1997,
Mr. Greene was an analyst for Hambrecht & Quist. He graduated with a BA degree
in economics from Claremont McKenna College.
PERFORMANCE SUMMARY
The Stagecoach Strategic Growth Fund Class A shares posted a cumulative return
of 37.91% for the one-year reporting period, excluding sales charges. This is
above the S&P 500 Index(4) return of 27.81% for the same period.
An increased focus on high-quality, earnings-driven companies benefited the
Fund as the narrow leadership of the market increased the need for superior
bottom-up stock picking. Similar to the indices, a small number of companies led
the Fund performance. Large contributors included Charles Schwab, Yahoo!,
Providian and Ascend Communications. Large buys midway through the 12-month
period included Linear Technology, McKesson and Staples.
41
<PAGE>
Strategic Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
PORTFOLIO REVIEW (as of September 30, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 104
PORTFOLIO TURNOVER RATIO 302%
WEIGHTED MEDIAN MARKET CAP ($B) $2.5
</TABLE>
The Fund shifted assets up the market cap spectrum during the period as
positions became weighted relative to anticipated performance and volatility
rather than performance alone. At March 31, 1999, high absolute growth was less
important than consistent, visible growth. For this reason, the Fund became
disproportionately overweighted in companies we believed presented superior
opportunities in its available market cap range. During the third quarter of
1999, the Fund was overweighted in the technology sector and in top-performing
subsectors of the technology sector. The Fund stayed slightly underweighted in
the healthcare sector, although the biotechnology subsector remains a focus of
the Fund as this segment continues to demonstrate very positive fundamentals.
Internet advertising firms and radio companies were focus areas of the Fund's
consumer holdings late in the period and contributed to the Fund's performance.
Software and semiconductors remain important segments of the technology sector,
while biotechnology is a priority within the health care sector.
TOP FIVE EQUITY INDUSTRY HOLDINGS(5) (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
TECHNOLOGY 50%
CONSUMER CYCLICALS 12%
HEALTHCARE 11%
FINANCE 9%
ENERGY 6%
</TABLE>
42
<PAGE>
PERFORMANCE AT A GLANCE Strategic Growth Fund
- ------------------------------------------------------------------------
TOP TEN EQUITY HOLDINGS6 (as of September 30, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
AMFM INCORPORATED 2.8%
VIGNETTE CORPORATION 2.8%
MAXIM INTEGRATED PRODUCTS 2.7%
LAM RESEARCH CORPORATION 2.6%
MICROMUSE INCORPORATED 2.5%
LEXMARK INTERNATIONAL GROUP INCORPORATED 2.3%
MERCURY INTERACTIVE CORPORATION 2.2%
BROADVISION INCORPORATED 2.0%
MACROMEDIA INCORPORATED 1.9%
BIOGEN INCORPORATED 1.8%
</TABLE>
STRATEGIC OUTLOOK
Although small cap stocks showed signs of a possible rebound during the
period, the stock market's strength continues to be concentrated in large-cap
growth stocks. The focus away from small cap stocks has contributed to the
Fund's underperformance; however, we feel the current interest rate environment
is good for all companies, not just large corporations. We believe the
fundamentals continue to look good, and we see opportunity in the current
environment. The Fund is overweighted in the most attractive industries in this
current economy, and continuing to significantly overweight the leading
companies of such segments may lead to continued positive performance. We also
will continue to look for companies with a solid earnings outlook.
(1) Performance shown for the Class A shares of the Stagecoach Strategic Growth
Fund reflects performance of the Class A shares of the Overland Express
Strategic Growth Fund (the accounting survivor of a merger of the Funds on
December 12, 1997). Performance shown or advertised for the Class B shares
of the Stagecoach Fund reflects performance of the Class D shares of the
Overland Fund. For periods prior to July 1, 1993, Class B share performance
of the Stagecoach Fund reflects performance of the Class A shares of the
Overland Fund adjusted to reflect sales charges and expenses of the Class B
shares. Performance shown or advertised for the Class C shares of the
Stagecoach Fund for the period from July 1, 1993, to December 12, 1997,
reflects performance of the Class D shares of the Overland Fund; for periods
prior to July 1, 1993, Class C share performance of the
43
<PAGE>
Strategic Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
Stagecoach Fund reflects performance of the Class A shares of the Overland Fund
adjusted to reflect the sales charges and expenses of the Class C shares.
Investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost. Figures quoted represent past performance, which is no
guarantee of future results.
There may be some additional risks associated with investments in smaller
and/or newer companies because their shares tend to be less liquid than
securities of larger companies. Furthermore, shares of small and new
companies are generally more sensitive to purchase and sales transactions
and changes in the issuer's financial condition and, therefore, the prices
of such stocks may be more volatile than those of larger company stocks.
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.
(2) For Class A shares, the maximum front-end sales charge is 5.75%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for
Class C shares is 1.00%. Class B and Class C share performance with sales
charge assumes the sales charge for the corresponding time period.
(3) The returns for Class B and Class C shares of the Fund will vary from the
results shown due to different expenses and load structures.
The accompanying chart compares the performance of the Stagecoach Strategic
Growth Fund Class A shares since inception of the predecessor portfolio with
the S&P 500 Index. The chart assumes a hypothetical $10,000 initial investment
in Class A shares and reflects all operating expenses and assumes the maximum
initial sales charge of 5.75%. The Fund is a professionally managed mutual
fund.
(4) 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. The Fund is a professionally managed mutual fund.
You cannot invest directly in an index.
(5) The sector distribution chart is a breakdown of the Fund's investments based
on the S&P Sectors. This chart does not reflect the Fund's industry
breakdown. The breakdown of investments by industry is located in the
Portfolio of Investments section of this Annual Report.
(6) The Top Ten Equity holdings is calculated based on the securities market
value divided by total market value of the portfolio.
44
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 56.70%
CHEMICALS & ALLIED PRODUCTS - 1.91%
7,600 Dupont E I De Nemours $ 576,791 $ 462,650
15,000 Pharmacia & Upjohn Incorporated 397,019 744,375
------------ -----------
$ 973,810 $ 1,207,025
COMMUNICATIONS - 8.38%
13,425 Ameritech Corporation $ 658,079 $ 901,992
32,408 AT & T Corporation 1,699,400 1,409,748
9,700 Bell Atlantic Corporation 498,639 652,930
13,600 BellSouth Corporation 601,438 612,000
11,025 GTE Corporation 364,255 847,547
3,850 MCI WorldCom Incorporated+ 333,309 276,719
6,500 SBC Communications 332,607 331,905
5,100 Sprint Corporation (FON Group) 279,852 276,675
------------ -----------
$ 4,767,579 $ 5,309,516
DOMESTIC DEPOSITORY INSTITUTIONS - 6.96%
3,652 Banc One Company $ 200,603 $ 127,135
8,600 Bank Of America Company 513,561 478,913
16,400 Chase Manhattan Corporation 284,398 1,236,150
31,839 Citigroup Incorporated+ 981,104 1,400,872
4,750 First Union Corporation 180,785 168,922
18,250 Union BanCal Corporation+ 589,627 661,563
5,225 U.S. Bancorp 183,890 157,730
6,200 Washington Mutual Incorporated 180,816 181,350
------------ -----------
$ 3,114,784 $ 4,412,635
ELECTRIC, GAS & SANITARY SERVICES - 3.87%
9,400 Columbia Energy Group $ 467,039 $ 520,525
18,000 Montana Power Company 333,516 547,875
36,525 Pacificorp 651,322 735,065
14,300 Texas Utilities 631,469 533,569
6,075 Waste Management Incorporated 216,386 116,944
------------ -----------
$ 2,299,732 $ 2,453,978
</TABLE>
45
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS EXCEPT COMPUTER EQUIPMENT - 5.31%
28,625 American Power Conversion Company+ $ 427,248 $ 543,875
8,000 Emerson Electric Company 460,480 505,500
5,700 General Electric Company 109,127 675,805
4,250 Motorola Incorporated 378,864 374,000
6,969 Philips Electronics NV 535,755 703,869
11,325 Raytheon Company - Class B 625,678 562,003
------------ -----------
$ 2,537,152 $ 3,365,052
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.30%
5,775 Lockheed Martin Company $ 226,259 $ 188,770
FOOD & KINDRED PRODUCTS - 0.24%
5,350 Hercules Incorporated $ 210,654 $ 153,144
FOOD STORES - 0.90%
25,158 Delhaize America Incorporated+ $ 723,761 $ 569,200
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES - 1.11%
10,500 Avalonbay Communities Incorporated $ 346,948 $ 355,688
8,200 Equity Residential Properties Trust 355,034 347,475
------------ -----------
$ 701,982 $ 703,163
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.74%
8,050 Apple Computer Incorporated $ 307,159 $ 509,665
2,500 IBM Corporation 66,197 303,438
3,025 Minnesota Mining and Manufacturing Company 297,237 290,589
------------ -----------
$ 670,593 $ 1,103,692
</TABLE>
46
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE AGENTS, BROKERS & SERVICE - 0.35%
3,250 Marsh & McLennan Companies Incorporated+ $ 221,627 $ 222,625
INSURANCE CARRIERS - 2.73%
4,626 American International Group Incorporated $ 431,465 $ 402,085
5,650 CIGNA Corporation 355,002 439,288
24,200 Foundation Health Systems+ 221,705 228,388
51,350 Fremont General Corporation 697,309 487,825
4,200 Hartford Financial Services Group 189,026 171,675
------------ -----------
$ 1,894,507 $ 1,729,261
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION - 1.60%
33,400 Canadian National Rail Corporation $ 998,585 $ 1,012,438
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.26%
4,600 Eaton Company+ $ 416,855 $ 397,038
6,925 Honeywell Incorporated 507,597 770,839
6,350 Xerox Corporation 362,758 266,303
------------ -----------
$ 1,287,210 $ 1,434,180
MISCELLANEOUS RETAIL - 1.70%
15,000 Costco Wholesale Company+ $ 235,935 $ 1,080,000
NONDEPOSITORY CREDIT INSTITUTIONS - 4.86%
12,250 Federal National Mortgage Association $ 758,285 $ 767,922
12,325 Household International Incorporated 608,680 494,540
14,200 Providian Financial Corporation 97,744 1,124,463
16,050 SLM Holding Corporation 702,067 690,150
------------ -----------
$ 2,166,776 $ 3,077,075
</TABLE>
47
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION - 3.82%
6,100 Atlantic Richfield Company $ 360,295 $ 540,613
23,700 Enron Corporation 870,708 977,625
8,950 Transocean Offshore Incorporated 229,881 274,094
21,400 USX-Marathon Group 643,146 625,950
------------ -----------
$ 2,104,030 $ 2,418,282
PAPER & ALLIED PRODUCTS - 0.86%
10,350 Bowater Incorporated $ 599,627 $ 543,375
PETROLEUM REFINING & RELATED INDUSTRIES - 4.68%
17,900 Mobil Corporation $ 1,232,175 $ 1,803,425
10,900 Phillips Petroleum Company 516,744 531,375
10,000 Texaco Incorporated+ 407,520 631,250
------------ -----------
$ 2,156,439 $ 2,966,050
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &SERVICES - 0.84%
6,000 Morgan Stanley Dean Witter and Company+ $ 486,009 $ 535,125
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.69%
22,000 Owens-Illinois Incorporated+ $ 664,165 $ 435,875
TOBACCO PRODUCTS - 0.30%
5,600 Philip Morris $ 215,936 $ 191,450
TRANSPORTATION EQUIPMENT - 1.28%
13,725 Dana Corporation $ 588,080 $ 509,540
6,000 Ford Motor Company 120,918 301,125
------------ -----------
$ 708,998 $ 810,665
TOTAL COMMON STOCKS $ 29,966,150 $35,922,576
</TABLE>
48
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES - 18.54%
FOOD & KINDRED PRODUCTS - 2.18%
$1,500,000 Pepsi Bottling Group 7.00% 03/01/29 $ 1,381,875
INSURANCE CARRIERS - 1.93%
$1,300,000 Fremont General Corporation 7.88% 03/17/09 $ 1,220,375
MISCELLANEOUS BONDS - 2.92%
$1,000,000 EOP Operating Limited 6.80% 01/15/09 $ 920,000
1,000,000 MidAmerican Funding LLC 6.34 03/01/09 927,500
-----------
$ 1,847,500
NONDEPOSITORY CREDIT INSTITUTIONS - 5.44%
$1,000,000 Associates Corporation 6.32% 02/28/00 $ 1,002,730
1,500,000 ATT Capital Corporation 6.60 05/15/05 1,440,000
1,000,000 General Motors Acceptance Corporation 6.88 07/15/01 1,005,000
-----------
$ 3,447,730
PETROLEUM REFINING & RELATED INDUSTRIES - 3.03%
$1,000,000 Conoco Incorporated 6.95% 04/15/29 $ 927,500
1,000,000 Petroleum Geo-Services 8.15 07/15/29 993,750
-----------
$ 1,921,250
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.54%
$1,000,000 News America Incorporated 6.70% 05/21/04 $ 977,500
TRANSPORTATION EQUIPMENT - 1.50%
$1,000,000 Chrysler Corporation 7.40% 08/01/97 $ 952,500
-----------
TOTAL CORPORATE BONDS & NOTES $11,748,730
(Cost $12,281,669)
</TABLE>
49
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES - 9.79%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.45%
$ 18,732 FHLMC #220009 8.25% 08/01/01 $ 18,983
131,782 FHLMC # 291786 8.50 01/01/09 137,753
79,242 FHLMC # 546103 10.50 08/01/19 86,646
37,705 FHLMC #30347 8.50 12/01/02 39,413
-----------
$ 282,795
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 9.34%
$1,000,000 FNMA 4.63% 10/15/01 $ 973,760
239,077 FNMA #190526 6.00 01/01/01 232,127
304,337 FNMA #190588 6.50 01/01/09 298,439
108,447 FNMA #57843 8.00 06/01/08 110,683
6,989 FNMA #75336 9.50 02/01/09 7,434
42,107 FNMA #83785 8.00 08/01/18 42,975
1,985,412 FNMA #442618 6.00 10/01/28 1,850,146
2,443,987 FNMA #407932 7.00 12/01/27 2,401,218
-----------
$ 5,916,782
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 6,199,577
(Cost $6,375,842)
U.S. TREASURY SECURITIES - 11.11%
U.S. TREASURY BONDS - 5.48%
$1,500,000 U.S. Treasury Bonds 5.25% 02/15/29 $ 1,310,985
1,000,000 U.S. Treasury Bonds 5.63 02/15/06 979,670
1,000,000 U.S. Treasury Bonds 8.13 08/15/19 1,184,130
-----------
$ 3,474,785
</TABLE>
50
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES (CONTINUED)
U.S. TREASURY NOTES - 5.63%
$ 500,000 U.S. Treasury Notes 6.25% 02/15/03 $ 506,605
1,000,000 U.S. Treasury Notes 6.50 08/15/05 1,023,720
500,000 U.S. Treasury Notes 7.50 02/15/05 534,350
1,000,000 U.S. Treasury Notes 5.75 08/15/03 996,500
500,000 U.S. Treasury Notes 6.00 08/15/04 504,465
-----------
$ 3,565,640
TOTAL U.S. TREASURY SECURITIES $ 7,040,425
(Cost $7,307,539)
</TABLE>
51
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 3.19%
REPURCHASE AGREEMENTS - 3.19%
$2,023,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28% 10/01/99 $ 2,023,000
-----------
TOTAL SHORT-TERM INSTRUMENTS $ 2,023,000
(Cost $2,023,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $57,954,200)* (Notes 1 and 3) 99.33% $62,934,308
Other Asset and Liabilities, Net 0.67 421,992
------ -----------
TOTAL NET ASSETS 100.00% $63,356,300
====== ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 8,072,088
Gross Unrealized Depreciation (3,091,980)
-----------
NET UNREALIZED APPRECIATION $ 4,980,108
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK - 89.94%
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.11%
95,000 Sherwin Williams Company $ 2,195,249 $ 1,989,063
CHEMICALS & ALLIED PRODUCTS - 2.77%
55,000 American Home Products Incorporated $ 1,305,527 $ 2,282,500
43,770 Dupont E I De Nemours 2,483,262 2,664,437
------------- --------------
$ 3,788,789 $ 4,946,937
COMMUNICATIONS - 9.32%
90,000 Alltel Corporation $ 2,657,519 $ 6,333,750
105,000 AT & T Corporation 5,132,299 4,567,500
75,000 GTE Corporation 4,370,423 5,765,625
------------- --------------
$ 12,160,241 $ 16,666,875
DOMESTIC DEPOSITORY INSTITUTIONS - 8.82%
57,000 Bank Of America Corporation $ 3,325,829 $ 3,174,187
55,000 Chase Manhattan Corporation 2,540,113 4,145,625
37,500 Citigroup Incorporated 1,507,350 1,650,000
15,000 J.P. Morgan & Company 1,706,213 1,713,750
43,500 Union BanCal Corporation+ 1,305,000 1,576,875
120,000 Washington Mutual Incorporated 4,983,672 3,510,000
------------- --------------
$ 15,368,177 $ 15,770,437
ELECTRIC, GAS & SANITARY SERVICES - 10.30%
97,000 Duke Energy Corporation $ 4,395,370 $ 5,347,125
100,000 El Paso Energy Corporation 1,828,278 3,981,250
150,000 Southern Company+ 3,337,850 3,862,500
100,000 Texas Utilities Company 4,100,018 3,731,250
40,000 Williams Companies Incorporated 930,509 1,497,500
------------- --------------
$ 14,592,025 $ 18,419,625
</TABLE>
53
<PAGE>
Diversified Equity Income Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 7.12%
25,000 General Electric Corporation $ 808,718 $ 2,964,063
42,320 Philips Electronics 2,356,007 4,274,320
50,000 Raytheon Company 2,741,048 2,425,000
60,000 Thomas & Betts Corporation 2,603,239 3,060,000
------------- --------------
$ 8,509,012 $ 12,723,383
FOOD & KINDRED PRODUCTS - 0.80%
50,000 Hercules Incorporated $ 1,907,476 $ 1,431,250
FOOD STORES - 1.12%
50,400 Albertsons Incorporated $ 1,954,410 $ 1,993,950
GENERAL MERCHANDISE STORES - 0.62%
50,000 Consolidated Stores Corporation+ $ 1,008,055 $ 1,103,125
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.26%
48,000 IBM Corporation $ 4,100,070 $ 5,826,000
INSURANCE CARRIERS - 5.36%
55,000 CIGNA Corporation $ 3,157,057 $ 4,276,250
300,000 Fremont General Corporation 4,500,660 2,850,000
60,000 Hartford Financial Services Group 2,704,319 2,452,500
------------- --------------
$ 10,362,036 $ 9,578,750
</TABLE>
54
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.67%
38,000 Baxter International $ 1,517,395 $ 2,289,500
60,000 Eastman Kodak Company 4,314,309 4,526,250
45,000 Eaton Corporation+ 3,660,977 3,884,063
30,000 Honeywell Incorporated 2,165,832 3,339,375
35,000 Xerox Corporation 2,021,950 1,467,813
------------- --------------
$ 13,680,463 $ 15,507,001
NONDEPOSITORY CREDIT INSTITUTIONS - 5.19%
135,000 Household International Incorporated $ 3,487,018 $ 5,416,875
90,000 SLM Holding Corporation 3,511,150 3,870,000
------------- --------------
$ 6,998,168 $ 9,286,875
OIL & GAS EXTRACTION - 4.40%
42,000 Atlantic Richfield Company $ 2,843,848 $ 3,722,250
142,000 USX-Marathon Group 4,602,065 4,153,500
------------- --------------
$ 7,445,913 $ 7,875,750
PAPER & ALLIED PRODUCTS - 2.64%
90,000 Kimberly-Clark Corporation $ 4,166,047 $ 4,725,000
PETROLEUM REFINING & RELATED INDUSTRIES - 6.93%
110,000 Conoco Incorporated Class A $ 2,485,900 $ 3,052,500
92,131 Conoco Incorporated Class B 1,771,902 2,522,085
46,000 Royal Dutch Petroleum 1,158,635 2,716,875
65,000 Texaco Incorporated+ 3,529,184 4,103,125
------------- --------------
$ 8,945,621 $ 12,394,585
REAL ESTATE - 5.65%
50,000 Arden Realty Incorporated $ 1,146,000 $ 1,087,500
110,000 Duke Realty Investments 2,456,355 2,145,000
35,000 Equity Residential Properties Trust 1,426,030 1,483,125
100,000 Kilroy Realty Corporation+ 2,324,587 2,112,500
</TABLE>
55
<PAGE>
Diversified Equity Income Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
45,000 Smith, Charles E Residential Realty $ 1,213,490 $ 1,538,438
50,000 Spieker Properties Incorporated 1,617,140 1,734,375
------------- --------------
$ 10,183,602 $ 10,100,938
TOBACCO PRODUCTS - 2.10%
110,000 Philip Morris Company $ 3,658,175 $ 3,760,625
TRANSPORTATION EQUIPMENT - 3.76%
100,000 Dana Corporation $ 3,410,515 $ 3,712,500
60,000 Ford Motor Company 1,263,237 3,011,250
------------- --------------
$ 4,673,752 $ 6,723,750
TOTAL COMMON STOCKS $ 135,697,281 $ 160,823,919
</TABLE>
56
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES - 2.48%
CHEMICALS & ALLIED PRODUCTS - 0.27%
$ 500,000 Occidental Petroleum 6.40% 04/01/13 $ 489,375
DOMESTIC DEPOSITORY INSTITUTIONS - 0.55%
$ 500,000 Citigroup Incorporated 6.38% 10/01/02 $ 496,250
500,000 Mellon Financial Company 5.75 11/15/03 481,250
--------------
$ 977,500
GENERAL MERCHANDISE STORES - 0.29%
$ 500,000 Federated Department Stores 8.13% 10/15/02 $ 520,000
NONDEPOSITORY CREDIT INSTITUTIONS - 0.55%
$ 500,000 Ford Motor Credit Corporation 6.50% 02/28/02 $ 498,125.
500,000 Household Netherlands BV 6.20 12/01/03 488,125
--------------
$ 986,250
MISCELLANEOUS BONDS - 0.54%
$ 500,000 EOP Operating Limited 6.50% 06/15/04 $ 480,000
500,000 News America Incorporated 6.70 05/21/04 488,750
--------------
$ 968,750
RAILROAD TRANSPORTATION - 0.28%
$ 500,000 Union Pacific Corporation 7.25% 11/01/08 $ 494,375
--------------
TOTAL CORPORATE BONDS & NOTES $ 4,436,250
(Cost $4,595,414)
U.S. TREASURY SECURITIES - 4.16%
$4,400,000 U.S. Treasury Notes 5.75% 04/30/03 $ 4,391,288
3,000,000 U.S. Treasury Notes 6.50% 08/31/01 3,046,020
--------------
TOTAL U.S. TREASURY SECURITIES $ 7,437,308
(Cost $7,567,578)
</TABLE>
57
<PAGE>
Diversified Equity Income Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 3.33%
REPURCHASE AGREEMENTS - 3.33%
$3,493,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28% 10/01/99 $ 3,493,000
1,265,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 1,265,000
1,198,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 1,198,000
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 5,956,000
(Cost $5,956,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $153,816,273)* (Notes 1 and 3) 99.91% $ 178,653,477
Other Asset and Liabilities, Net 0.09 166,410
------ --------------
TOTAL NET ASSETS 100.00% $ 178,819,887
====== ==============
- -------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $32,171,100
Gross Unrealized Depreciation (7,333,896)
-----------
NET UNREALIZED APPRECIATION $24,837,204
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK - 97.45%
AGRICULTURAL PRODUCTION - CROP - 0.09%
15,226 Pioneer Hi-Bred International Incorporated $ 269,979 $ 606,185
AMUSEMENT & RECREATION SERVICES - 0.03%
7,447 Harrah's Entertainment Incorporated+ $ 69,244 $ 206,654
APPAREL & ACCESSORY STORES - 0.46%
53,669 Gap Incorporated $ 173,244 $ 1,717,408
10,046 Kohl's Corporation+ 575,308 664,292
13,362 Limited Incorporated 271,480 511,097
9,083 Nordstrom Incorporated 144,148 245,241
------------- ------------
$ 1,164,180 $ 3,138,038
APPAREL & OTHER FINISHED PRODUCTS MADE FROM
FABRICS & SIMILAR MATERIALS - 0.05%
4,100 Liz Claiborne Incorporated $ 124,261 $ 127,100
7,553 V. F. Corporation 155,013 234,143
------------- ------------
$ 279,274 $ 361,243
AUTOMOTIVE DEALERS & GASOLINE - 0.04%
9,650 Autozone Incorporated+ $ 263,253 $ 270,803
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
4,552 Ryder Systems Incorporated $ 120,312 $ 92,747
BUILDING CONSTRUCTION - GENERAL - 0.03%
3,770 Centex Corporation $ 39,505 $ 111,451
2,527 Kaufman & Broad Home Corporation 32,909 52,119
2,736 Pulte Corporation 23,125 59,508
------------- ------------
$ 95,539 $ 223,078
</TABLE>
59
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 1.14%
92,906 Home Depot Incorporated $ 1,005,008 $ 6,375,674
23,076 Lowes Companies 203,144 1,124,955
10,864 Sherwin Williams Company 104,089 227,465
------------- ------------
$ 1,312,241 $ 7,728,094
BUSINESS SERVICES - 8.96%
22,561 3-Com Corporation+ $ 1,057,033 $ 648,629
5,000 Adaptec Incorporated 197,502 198,438
3,947 Adobe Systems Incorporated 182,970 447,985
68,716 America Online Incorporated+ 5,808,228 7,146,464
3,323 Autodesk Incorporated 71,823 72,691
38,608 Automatic Data Processing Incorporated 370,297 1,722,882
14,581 BMC Software Incorporated+ 865,758 1,043,453
10,326 Cabletron Systems Incorporated+ 284,635 161,989
45,474 Cendant Corporation 1,147,703 807,164
9,008 Ceridian Corporation+ 143,318 224,074
33,760 Computer Associates International Incorporated 204,614 2,067,800
9,984 Computer Sciences Corporation+ 188,498 702,000
22,686 Compuware Corporation+ 876,604 591,254
5,075 De Luxe Corporation 181,119 172,550
8,144 Ecolab Incorporated 62,255 277,914
30,995 Electronic Data Systems Corporation 1,264,850 1,640,798
9,286 Equifax Incorporated 295,492 261,169
27,149 First Data Corporation 795,862 1,191,162
20,178 IMS Health Incorporated 249,438 460,311
17,480 Interpublic Group Company Incorporated 232,516 718,865
319,074 Microsoft Corporation+ 3,594,876 28,896,139
21,392 Novell Incorporated+ 509,778 442,547
11,108 Omnicom Group Incorporated 456,761 879,615
90,284 Oracle Corporation+ 296,049 4,107,922
17,064 Parametric Technology Corporation+ 352,836 230,364
14,583 Peoplesoft Incorporated+ 473,948 247,000
</TABLE>
60
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
1,662 Shared Medical Systems Corporation $ 51,700 $ 77,699
48,474 Sun Micro Systems Incorporated+ 233,938 4,508,082
17,781 Unisys Corporation+ 458,161 802,368
------------- ------------
$ 20,908,562 $ 60,749,328
CHEMICALS & ALLIED PRODUCTS - 10.90%
95,245 Abbott Laboratories $ 945,010 $ 3,500,254
14,583 Air Products & Chemicals Incorporated 236,265 423,818
3,466 Alberto-Culver Company 31,879 80,151
6,071 ALZA Corporation+ 181,117 259,915
81,988 American Home Products Corporation 1,165,125 3,402,502
32,012 Amgen Incorporated+ 580,284 2,608,978
7,320 Avery-Dennison Corporation 120,865 386,130
16,521 Avon Products Incorporated 164,688 409,927
124,356 Bristol Myers Squibb Company 1,662,805 8,394,030
14,732 Clorox Company 232,684 563,499
36,736 Colgate-Palmolive Company 355,082 1,680,672
13,824 Dow Chemical Company 750,240 1,570,752
61,140 Dupont E I De Nemours Company 1,821,898 3,721,898
4,999 Eastman Chemical Company 208,228 199,960
68,557 Eli Lilly & Company 1,060,261 4,387,648
68,265 Gillette Company 1,056,077 2,316,743
3,721 Great Lakes Chemical Corporation 182,607 141,631
6,680 International Flavors & Fragrances Incorporated 148,236 230,460
146,800 Merck & Company Incorporated 2,192,587 9,514,475
39,410 Monsanto Company 441,086 1,406,444
21,706 Occidental Petroleum Corporation 596,552 501,951
242,630 Pfizer Incorporated 1,143,910 8,719,516
31,956 Pharmacia & Upjohn Incorporated 1,017,906 1,585,817
11,062 PPG Industries Incorporated 284,812 663,720
9,942 Praxair Incorporated 178,367 457,332
83,139 Procter & Gamble Company 1,454,588 7,794,281
13,307 Rohm & Haas Company 281,554 480,715
92,122 Schering-Plough Corporation 467,861 4,018,822
</TABLE>
61
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
6,349 Sigma Aldrich Corporation $ 121,854 $ 201,581
8,373 Union Carbide Corporation 143,864 475,691
53,260 Warner-Lambert Company 555,232 3,535,133
5,700 Watson Pharmaceuticals Incorporated+ 248,407 174,206
4,579 W.R. Grace & Company+ 55,496 73,550
------------- ------------
$ 20,087,427 $ 73,882,202
COMMUNICATIONS - 9.21%
18,263 Alltel Corporation $ 697,953 $ 1,285,259
68,882 Ameritech Corporation 973,509 4,628,009
199,676 AT & T Corporation 3,770,156 8,685,906
97,220 Bell Atlantic Corporation 2,165,256 6,544,121
118,185 BellSouth Corporation 1,384,969 5,318,325
44,319 CBS Corporation+ 1,037,871 2,049,754
8,468 CenturyTel Incorporated 378,493 344,013
20,707 Clear Channel Communications Incorporated 916,524 1,653,972
46,340 Comcast Corporation 505,418 1,847,808
60,896 GTE Corporation 1,746,681 4,681,380
116,795 MCI WorldCom Incorporated+ 2,920,908 8,394,641
38,075 Media One Group Incorporated+ 555,757 2,600,998
19,912 Nextel Communications Incorporated+ 734,166 1,350,283
123,205 SBC Communications Incorporated 1,926,899 6,291,155
54,382 Sprint Corporation (FON Group) 805,061 2,950,224
27,435 Sprint Corporation (PCS Group)+ 395,734 2,045,622
31,606 US West Incorporated 636,512 1,803,517
------------- ------------
$ 21,551,867 $ 62,474,987
DOMESTIC DEPOSITORY INSTITUTIONS - 7.35%
10,550 AmSouth BanCorporation $ 343,751 $ 247,266
108,232 Bank Of America Corporation 2,255,880 6,027,170
46,348 Bank Of New York Company Incorporated 434,900 1,549,761
73,743 Bank One Corporation 1,986,981 2,567,178
18,530 BankBoston Corporation 326,744 803,739
19,400 BB&T Corporation 636,639 628,075
</TABLE>
62
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
52,189 Chase Manhattan Corporation $ 981,321 $ 3,933,746
211,412 Citigroup Incorporated 1,992,676 9,302,128
9,799 Comerica Incorporated 247,242 496,074
16,780 Fifth Third Bancorp 500,298 1,020,958
60,211 First Union Corporation 1,396,575 2,141,254
62,138 Firstar Corporation 1,838,118 1,592,286
35,752 Fleet Financial Group Incorporated 629,787 1,309,417
3,596 Golden West Financial Corporation 99,738 353,307
14,633 Huntington Bancshares Incorporated 416,885 388,689
10,999 J.P. Morgan & Company Incorporated 551,650 1,256,636
28,336 KeyCorp 476,138 731,423
32,592 Mellon Bank Corporation 304,384 1,099,980
39,216 National City Corporation 954,843 1,046,577
6,996 Northern Trust Corporation 484,443 584,166
18,931 PNC Bank Corporation 524,543 997,427
13,936 Regions Financial Corporation 493,105 418,080
6,678 Republic New York Corporation 196,103 410,280
10,200 SouthTrust Corporation 407,413 365,925
10,095 State Street Corporation 518,389 652,389
10,941 Summit Bancorp 546,974 354,899
19,990 Suntrust Banks Incorporated 729,816 1,314,343
16,744 Synovus Financial Corporation 361,434 312,904
8,667 Union Planters Corporation 432,350 353,180
45,553 U.S. Bancorp 733,378 1,375,131
12,768 Wachovia Corporation 648,471 1,003,884
36,718 Washington Mutual Incorporated 929,580 1,074,002
103,404 Wells Fargo & Company** 1,044,297 4,097,384
------------- ------------
$ 24,424,846 $ 49,809,658
EATING & DRINKING PLACES - 0.65%
8,764 Darden Restaurants Incorporated $ 59,705 $ 171,446
85,000 McDonald's Corporation 739,409 3,655,000
9,612 Tricon Global Restaurants Incorporated+ 84,434 393,491
7,852 Wendy's International Incorporated 107,209 207,097
------------- ------------
$ 990,757 $ 4,427,034
</TABLE>
63
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
ELECTRIC, GAS & SANITARY SERVICES - 2.52%
11,772 AES Corporation+ $ 438,533 $ 694,548
8,200 Allied Waste Industries Incorporated+ 147,231 95,838
8,646 Ameren Corporation 317,279 326,927
12,056 American Electric Power Company+ 354,361 411,411
9,538 Carolina Power & Light Company 225,168 337,407
13,401 Central & Southwest Corporation 269,546 283,096
9,992 Cinergy Corporation 220,459 282,899
7,100 CMS Energy Corporation 311,327 240,956
5,252 Columbia Energy Group 145,045 290,830
14,189 Consolidated Edison Company 352,807 588,844
6,035 Consolidated Natural Gas Company 241,075 376,433
9,413 Constellation Energy Group 199,315 264,741
12,210 Dominion Resources Incorporated 397,511 550,976
9,145 DTE Energy Company 206,961 330,363
22,769 Duke Energy Corporation 568,292 1,255,141
1,364 Eastern Enterprises 37,920 63,341
22,082 Edison International 399,793 536,869
15,540 Entergy Corporation 363,950 449,689
14,940 FirstEnergy Corporation 334,695 380,970
5,900 Florida Progress Corporation 249,424 272,875
11,375 FPL Group Incorporated 382,930 573,016
8,063 GPU Incorporated 247,759 263,055
7,160 New Century Energies Incorporated 346,034 239,413
11,721 Niagara Mohawk Holdings Incorporated+ 198,657 180,943
2,999 Nicor Incorporated 62,177 111,525
9,624 Northern States Power Company 179,710 207,518
2,006 Oneok Incorporated 37,343 60,807
24,097 Pacific Gas & Electric Company 609,027 623,510
18,643 PacifiCorp 358,735 375,190
12,117 PECO Energy Company 273,770 454,388
2,250 People's Energy Corporation 53,490 79,172
9,514 PP&L Resources Incorporated 245,556 257,473
13,980 Public Service Enterprise Group Incorporated 379,287 539,978
18,190 Reliant Energy Incorporated 344,760 492,267
</TABLE>
64
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
15,130 Sempra Energy $ 413,428 $ 314,893
6,943 Sonat Incorporated 173,784 275,550
43,269 Southern Company 628,313 1,114,177
17,684 Texas Utilities Company 664,439 659,834
13,685 Unicom Corporation 464,034 505,490
38,031 Waste Management Incorporated+ 1,754,482 732,097
26,911 Williams Companies Incorporated 362,099 1,007,481
------------- ------------
$ 13,960,506 $ 17,101,931
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 11.07%
7,000 ADC Telecommunications Incorporated+ $ 311,247 $ 293,563
9,042 Advanced Micro Devices Incorporated+ 188,590 155,409
5,374 Andrew Corporation+ 17,735 93,373
27,409 Emerson Electric Company 609,928 1,731,906
205,156 General Electric Company 3,533,759 24,323,808
10,551 General Instrument Corporation+ 206,436 507,767
45,571 Global Crossing Limited 856,913 1,207,625
206,952 Intel Corporation 1,052,351 15,379,121
8,917 LSI Logic Corporation+ 322,859 459,226
190,776 Lucent Technologies Incorporated 2,443,776 12,376,593
5,669 Maytag Corporation 121,524 188,849
15,411 Micron Technology Incorporated+ 387,242 1,025,795
37,748 Motorola Incorporated 868,154 3,321,824
10,492 National Semiconductor Corporation+ 172,203 320,006
2,627 National Service Industries Incorporated 67,302 82,751
4,300 Network Appliance Incorporated+ 225,940 307,988
83,032 Nortel Networks Corporation 1,142,346 4,234,632
9,700 QUALCOMM Incorporated+ 1,538,901 1,835,119
21,201 Raytheon Company 679,559 1,052,100
4,748 Scientific-Atlanta Incorporated 30,307 235,323
24,438 Tellabs Incorporated+ 324,600 1,391,439
49,048 Texas Instruments Incorporated 367,459 4,034,198
</TABLE>
65
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
3,601 Thomas & Betts Corporation $ 117,428 $ 183,651
4,803 Whirlpool Corporation 193,851 313,696
------------- ------------
$ 15,780,410 $ 75,055,762
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT &
RELATED SERVICES - 0.34%
10,523 Dun & Bradstreet Corporation $ 195,541 $ 314,375
2,844 EG & G Incorporated 54,345 113,227
4,780 Fluor Corporation 133,843 192,395
27,593 Halliburton Company 505,580 1,131,313
15,457 Paychex Incorporated 530,990 527,470
------------- ------------
$ 1,420,299 $ 2,278,780
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.58%
1,959 Ball Corporation $ 63,388 $ 86,318
6,037 Cooper Industries Incorporated 242,483 282,230
4,317 Crane Company 35,096 96,863
7,724 Crown Cork & Seal Company Incorporated 233,263 187,307
10,674 Fortune Brands Incorporated 243,071 344,237
15,750 Illinois Tool Works Incorporated 225,407 1,174,359
24,722 Lockheed Martin Corporation 450,197 808,100
25,673 Masco Corporation 454,103 795,863
3,829 Snap-On Incorporated 88,404 124,443
------------- ------------
$ 2,035,412 $ 3,899,720
FOOD & KINDRED PRODUCTS - 3.48%
2,323 Adolph Coors Company $ 47,439 $ 125,732
29,462 Anheuser-Busch Companies 588,800 2,064,181
39,068 Archer Daniels Midland Company 317,365 476,141
17,679 Bestfoods Incorporated 266,722 857,432
27,483 Campbell Soup Company 332,933 1,075,272
154,615 Coca Cola Company 1,815,969 7,431,183
26,257 Coca Cola Enterprises Incorporated 773,626 592,424
</TABLE>
66
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
30,683 ConAgra Incorporated $ 349,169 $ 692,285
9,634 General Mills Incorporated 322,711 781,558
22,775 Heinz (H. J.) Company 441,104 979,325
6,206 Hercules Incorporated 124,447 177,647
8,920 Hershey Foods Corporation 156,516 434,293
25,502 Kellogg Company 483,876 954,731
91,875 PepsiCo Incorporated 963,822 2,779,219
8,586 Quaker Oats Company 207,561 531,259
20,072 Ralston-Ralston Purina Group 259,514 558,253
57,066 Sara Lee Corporation 477,364 1,337,484
26,698 Seagrams Company Limited 672,218 1,214,759
7,321 William Wrigley Jr. Company 121,415 503,776
------------- ------------
$ 8,722,571 $ 23,566,954
FOOD STORES - 0.55%
26,339 Albertson's Incorporated $ 359,555 $ 1,042,037
2,409 Great Atlantic & Pacific Tea Company 86,405 73,023
51,666 Kroger Company+ 607,748 1,139,881
30,986 Safeway Incorporated+ 1,701,330 1,179,405
9,361 Winn-Dixie Stores Incorporated 156,537 277,905
------------- ------------
$ 2,911,575 $ 3,712,251
FURNITURE & FIXTURES - 0.13%
5,351 Johnson Controls Incorporated $ 92,171 $ 354,838
17,721 Newell Rubbermaid Incorporated 356,340 506,156
------------- ------------
$ 448,511 $ 860,994
GENERAL MERCHANDISE STORES - 2.86%
6,887 Consolidated Stores Corporation+ $ 300,642 $ 151,944
27,674 Dayton Hudson Corporation 263,015 1,662,170
6,738 Dillards Incorporated 157,888 136,866
14,142 Dollar General Corporation 413,644 436,634
12,911 Federated Department Stores Incorporated+ 352,463 564,049
</TABLE>
67
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
4,480 Harcourt General Incorporated $ 108,113 $ 186,480
16,270 J.C. Penney Company Incorporated 516,815 559,281
30,900 K Mart Corporation+ 587,372 361,144
21,171 May & Department Stores Company 321,729 771,418
24,103 Sears, Roebuck & Company 510,415 756,232
20,264 TJX Companies Incorporated 125,909 568,659
278,436 Wal-Mart Stores Incorporated 2,127,369 13,243,112
------------- ------------
$ 5,785,374 $ 19,397,989
HEALTH SERVICES - 0.20%
36,059 Columbia HCA Healthcare Corporation $ 956,476 $ 764,000
7,001 HCR Manor Care Incorporated+ 137,701 121,205
26,567 HealthSouth Corporation+ 570,254 161,062
19,415 Tenet Healthcare Corporation+ 365,932 340,976
------------- ------------
$ 2,030,363 $ 1,387,243
HEAVY CONSTRUCTION OTHER THAN BUILDING
CONSTRUCTION - CONTRACTORS - 0.02%
2,460 Foster Wheeler Corporation $ 58,568 $ 29,674
3,752 McDermott International Incorporated 94,759 75,978
------------- ------------
$ 153,327 $ 105,652
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.29%
12,700 Best Buy Company Incorporated+ $ 838,524 $ 788,194
12,636 Circuit City Stores Incorporated 96,326 533,081
12,352 Tandy Corporation 127,767 638,444
------------- ------------
$ 1,062,617 $ 1,959,719
</TABLE>
68
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING
PLACES - 0.12%
16,293 Hilton Hotels Corporation $ 137,890 $ 160,893
15,462 Marriott International 186,137 505,414
11,857 Mirage Resorts Incorporated+ 316,017 166,739
------------- ------------
$ 640,044 $ 833,046
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT - 9.30%
9,686 Apple Computer Incorporated+ $ 376,904 $ 613,245
23,248 Applied Materials Incorporated+ 327,667 1,810,438
20,598 Baker Hughes Incorporated 348,703 597,342
5,540 Black & Decker Corporation 125,603 253,109
1,480 Briggs & Stratton Corporation 29,106 86,395
4,586 Case Corporation 203,141 228,440
22,465 Caterpillar Incorporated 310,255 1,231,363
2,439 Cincinnati Milacron Incorporated 54,313 43,292
202,392 Cisco Systems Incorporated+ 1,682,944 13,876,502
106,311 Compaq Computer Corporation 846,065 2,438,509
2,484 Cummins Engine Company Incorporated 85,327 123,734
3,056 Data General Corporation+ 69,612 64,367
14,830 Deere & Company 251,712 573,736
159,168 Dell Computer Corporation+ 369,776 6,655,212
13,360 Dover Corporation 119,768 546,090
63,424 EMC Corporation+ 388,372 4,530,852
19,694 Gateway Incorporated+ 571,201 875,152
5,051 Harris Corporation 95,792 139,534
63,423 Hewlett-Packard Company 1,125,061 5,834,916
113,146 IBM Corporation 3,448,405 13,733,096
10,361 Ingersoll-Rand Company 150,752 569,207
7,350 Lexmark International Group Incorporated+ 495,604 591,675
25,246 Minnesota Mining and Manufacturing Company 941,844 2,425,194
7,820 Pall Corporation 100,992 181,326
6,877 Parker-Hannifin Corporation 100,009 308,176
</TABLE>
69
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
16,950 Pitney Bowes Incorporated $ 219,621 $ 1,032,891
14,351 Seagate Technology Incorporated+ 415,442 442,190
11,728 Silicon Graphics Incorporated+ 373,379 128,275
16,026 Solectron Corporation+ 765,394 1,150,867
5,636 Stanley Works 98,813 141,957
3,925 Timken Company 58,482 63,291
30,146 United Technologies Corporation 511,624 1,788,035
------------- ------------
$ 15,061,683 $ 63,078,408
INSURANCE AGENTS, BROKERS & SERVICE - 0.25%
16,044 Aon Corporation $ 390,752 $ 474,301
10,464 Humana Incorporated+ 292,485 71,940
16,405 Marsh & McLennan Companies Incorporated 471,375 1,123,743
------------- ------------
$ 1,154,612 $ 1,669,984
INSURANCE CARRIERS - 2.82%
8,989 Aetna Incorporated $ 749,785 $ 442,708
16,500 AFLAC Incorporated 849,728 690,938
50,513 Allstate Corporation 596,057 1,259,668
15,759 American General Corporation 366,447 995,772
96,923 American International Group Incorporated 1,687,431 8,426,243
10,265 Chubb Corporation 277,358 511,325
12,589 CIGNA Corporation 278,401 978,795
10,525 Cincinnati Financial Corporation 490,676 395,016
19,875 Conseco Incorporated 731,854 383,836
14,405 Hartford Financial Services Group 199,227 588,804
6,678 Jefferson-Pilot Corporation 91,480 421,966
12,732 Lincoln National Corporation 208,807 478,246
6,961 Loews Corporation 389,510 488,575
6,261 MBIA Incorporated 334,889 291,919
6,892 MGIC Investment Corporation 215,627 329,093
4,566 Progressive Corporation 499,041 372,985
8,586 Safeco Corporation 182,023 240,408
14,456 St. Paul Companies Incorporated 365,866 397,540
</TABLE>
70
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
8,662 Torchmark Corporation $ 119,786 $ 224,129
11,035 United Healthcare Corporation 520,859 537,267
14,940 UnumProvident Corporation 559,670 439,796
4,100 Wellpoint Health Networks Incorporated+ 354,181 233,700
------------- ------------
$ 10,068,703 $ 19,128,729
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY
PASSENGER TRANSPORTATION - 0.02%
20,719 Laidlaw Incorporated $ 189,742 $ 139,853
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.02%
6,902 Louisiana-Pacific Corporation $ 105,542 $ 107,844
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.96%
4,150 Allergan Incorporated $ 109,900 $ 456,500
3,550 Bausch & Lomb Incorporated 107,710 234,078
18,091 Baxter International Incorporated 412,687 1,089,983
15,576 Becton, Dickinson & Company 133,545 437,102
7,056 Biomet Incorporated 68,616 185,661
24,711 Boston Scientific Corporation+ 350,850 610,053
3,381 C. R. Bard Incorporated 78,146 159,118
8,424 Danaher Corporation 374,866 443,840
19,979 Eastman Kodak Company 797,943 1,507,166
4,496 Eaton Corporation 159,941 388,061
18,954 Guidant Corporation+ 276,510 1,016,408
7,934 Honeywell Incorporated 184,601 883,153
5,502 KLA-Tencor Corporation+ 412,845 357,630
4,498 Mallinckrodt Incorporated 93,952 135,783
73,462 Medtronic Incorporated 776,888 2,607,901
2,767 Millipore Corporation 52,126 103,935
6,270 PE Corporation - PE Biosystems Group 113,322 453,008
2,757 Polaroid Corporation 95,852 71,682
5,316 St. Jude Medical Incorporated+ 134,338 167,454
3,008 Tektronix Incorporated 62,404 100,768
</TABLE>
71
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
9,920 Thermo Electron Corporation+ $ 402,500 $ 133,300
41,344 Xerox Corporation 537,439 1,733,864
------------- ------------
$ 5,736,981 $ 13,276,448
METAL MINING - 0.29%
2,437 ASARCO Incorporated $ 61,228 $ 65,342
23,807 Barrick Gold Corporation 697,042 517,802
5,697 Cyprus Amax Minerals 147,322 111,804
10,417 Freeport-McMoran Copper & Gold Incorporated+ 286,774 162,115
14,790 Homestake Mining Company 202,465 135,883
11,320 Inco Limited Company 280,174 241,965
10,330 Newmont Mining Corporation 329,729 267,289
3,656 Phelps Dodge Corporation 114,032 201,309
19,377 Placer Dome Incorporated 287,882 288,233
------------- ------------
$ 2,406,648 $ 1,991,742
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT
FUELS - 0.03%
5,000 Vulcan Materials Company $ 241,335 $ 183,125
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.93%
2,540 Armstrong World Industries Incorporated $ 104,099 $ 114,141
12,354 Hasbro Incorporated 113,322 264,839
2,252 Jostens Incorporated 58,432 43,070
25,730 Mattel Incorporated 427,686 488,870
495 NACCO Industries Incorporated 19,539 34,588
51,716 Tyco International Limited 2,183,663 5,339,677
------------- ------------
$ 2,906,741 $ 6,285,185
</TABLE>
72
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
MISCELLANEOUS RETAIL - 0.77%
6,700 Bed Bath & Beyond Incorporated $ 233,751 $ 234,081
13,619 Costco Wholesale Corporation+ 276,961 980,568
24,532 CVS Corporation 532,746 1,001,212
2,462 Longs Drug Stores Incorporated 43,284 73,552
23,000 Office Depot Incorporated+ 518,949 234,313
16,281 Rite Aid Corporation 225,516 224,881
29,152 Staples Incorporated+ 551,949 635,878
15,838 Toys "R" Us Incorporated+ 372,751 237,570
62,636 Walgreen Company 201,268 1,589,389
------------- ------------
$ 2,957,175 $ 5,211,444
MOTION PICTURES - 1.23%
4,606 King World Productions Incorporated+ $ 53,772 $ 172,725
79,861 Time Warner Incorporated 1,703,960 4,851,556
128,944 Walt Disney Company 1,469,190 3,336,425
------------- ------------
$ 3,226,922 $ 8,360,706
NONDEPOSITORY CREDIT INSTITUTIONS - 2.35%
28,234 American Express Company $ 782,970 $ 3,801,002
45,358 Associates First Capital Corporation 862,889 1,632,888
12,396 Capital One Financial Corporation 512,253 483,444
7,042 Countrywide Credit Industries Incorporated 235,139 227,105
64,309 Federal National Mortgage Association 689,209 4,031,370
43,482 Federal Home Loan Mortgage Corporation 559,927 2,261,064
30,274 Household International Incorporated 353,656 1,214,744
50,005 MBNA Corporation 201,483 1,140,739
8,921 Providian Financial Corporation 48,860 706,432
10,443 SLM Holding Corporation 512,261 449,049
------------- ------------
$ 4,758,647 $ 15,947,837
</TABLE>
73
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
OIL & GAS EXTRACTION - 1.25%
7,597 Anadarko Petroleum Corporation $ 256,478 $ 232,183
6,704 Apache Corporation 242,511 289,529
20,208 Atlantic Richfield Company 925,654 1,790,934
11,172 Burlington Resources Incorporated 455,188 410,570
44,214 Enron Corporation 606,944 1,823,828
3,200 Helmerich & Payne Incorporated 41,221 81,000
5,434 Kerr-McGee Corporation 291,717 299,210
20,366 Nabisco Group Holdings Corporation 359,320 305,490
5,219 Rowan Companies Incorporated+ 43,356 84,809
34,339 Schlumberger Limited 915,859 2,139,749
7,200 Tosco Corporation 191,378 181,800
15,727 Union Pacific Resources Group Incorporated 314,138 252,615
19,382 USX-Marathon Group Incorporated 464,253 566,924
------------- ------------
$ 5,108,017 $ 8,458,641
PAPER & ALLIED PRODUCTS - 0.94%
3,295 Bemis Incorporated $ 42,793 $ 111,618
3,547 Boise Cascade Corporation 131,939 129,244
6,035 Champion International Corporation 202,281 310,048
13,891 Fort James Corporation 526,019 370,715
10,986 Georgia-Pacific Corporation 194,893 444,933
8,463 IKON Office Solutions Incorporated 179,764 90,448
25,836 International Paper Company 721,738 1,241,743
33,586 Kimberly-Clark Corporation 571,334 1,763,265
6,483 Mead Corporation 109,745 222,853
1,839 Potlatch Corporation 65,946 75,744
3,508 Temple-Inland Incorporated 122,422 212,234
10,722 Tenneco Incorporated 426,373 182,274
6,386 Westvaco Corporation 128,151 163,640
12,516 Weyerhaeuser Company 410,038 721,235
7,007 Willamette Industries Incorporated 239,859 302,177
------------- ------------
$ 4,073,295 $ 6,342,171
</TABLE>
74
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
PERSONAL SERVICES - 0.07%
6,240 H & R Block Incorporated $ 133,055 $ 271,050
16,447 Service Corporation International 214,599 173,720
------------- ------------
$ 347,654 $ 444,770
PETROLEUM REFINING & RELATED INDUSTRIES - 4.99%
5,689 Amerada Hess Corporation $ 226,635 $ 348,450
4,829 Ashland Incorporated 181,393 162,375
41,032 Chevron Corporation 1,334,353 3,641,590
13,404 Coastal Corporation 165,036 548,725
39,787 Conoco Incorporated 237,705 1,089,169
151,887 Exxon Corporation 3,764,568 11,533,919
49,042 Mobil Corporation 1,375,494 4,940,982
16,011 Phillips Petroleum Company 324,202 780,535
134,249 Royal Dutch Petroleum Company 2,359,293 7,929,082
5,903 Sunoco Incorporated 204,199 162,333
33,624 Texaco Incorporated 865,659 2,122,515
15,211 Unocal Corporation 329,861 563,758
------------- ------------
$ 11,368,398 $ 33,823,433
PRIMARY METAL INDUSTRIES - 0.45%
14,348 Alcan Aluminum Limited $ 275,817 $ 448,375
23,122 Alcoa Incorporated 398,755 1,435,009
12,341 Allegheny Teledyne Incorporated 234,144 208,254
8,106 Bethlehem Steel Corporation+ 125,286 59,782
8,237 Engelhard Corporation 73,047 149,810
5,530 Nucor Corporation 104,643 263,365
4,067 Reynolds Metals Company 203,918 245,545
5,570 USX-U.S. Steel Group Incorporated 154,144 143,428
5,785 Worthington Industries Incorporated 70,766 98,345
------------- ------------
$ 1,640,520 $ 3,051,913
</TABLE>
75
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.91%
4,470 American Greeting Company $ 84,261 $ 115,103
5,906 Dow Jones & Company Incorporated 229,601 315,233
17,615 Gannet Company Incorporated 402,636 1,218,738
4,950 Knight-Ridder Incorporated 134,484 271,630
12,378 McGraw-Hill Incorporated 203,917 598,785
3,292 Meredith Corporation 28,445 119,540
11,295 New York Times Company 168,741 423,563
8,457 R.R. Donnelley & Sons 192,196 244,195
4,608 Times Mirror Company 122,644 303,264
14,968 Tribune Company 159,610 744,658
43,554 Viacom Incorporated+ 786,533 1,840,157
------------- ------------
$ 2,513,068 $ 6,194,866
RAILROAD TRANSPORTATION - 0.45%
29,515 Burlington Northern Santa Fe Corporation $ 389,608 $ 811,663
13,753 CSX Corporation 311,740 582,783
6,700 Kansas City Southern Industries Incorporated 382,924 311,130
23,849 Norfolk Southern Corporation 332,971 584,300
15,583 Union Pacific Corporation 488,523 748,958
------------- ------------
$ 1,905,766 $ 3,038,834
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.29%
4,770 Cooper Tire & Rubber Company $ 62,765 $ 84,070
9,823 Goodyear Tire & Rubber Company 280,787 472,732
17,836 Nike Incorporated 158,009 1,014,423
3,500 Reebok International Limited+ 80,096 37,405
5,262 Sealed Air Corporation+ 288,339 270,005
3,638 Tupperware Corporation 59,496 73,670
------------- ------------
$ 929,492 $ 1,952,305
</TABLE>
76
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.18%
7,139 Bear Stearns Companies Incorporated $ 386,525 $ 274,405
51,034 Charles Schwab Corporation 480,126 1,719,208
15,944 Franklin Resources Incorporated 852,720 490,278
7,308 Lehman Brothers Holdings Incorporated 400,822 426,148
22,911 Merrill Lynch & Company Incorporated 401,171 1,539,333
35,830 Morgan Stanley Dean Witter & Company 916,084 3,195,588
8,900 Paine Webber Group Incorporated 382,859 322,625
------------- ------------
$ 3,820,307 $ 7,967,585
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.19%
15,138 Corning Incorporated $ 338,171 $ 1,037,899
3,416 Owens Corning 87,451 74,085
9,781 Owens-Illinois Incorporated+ 362,996 193,785
------------- ------------
$ 788,618 $ 1,305,769
TEXTILE MILL PRODUCTS - 0.01%
2,307 Russell Corporation $ 49,736 $ 32,730
1,137 Springs Industries Incorporated 39,683 38,587
------------- ------------
$ 89,419 $ 71,317
TOBACCO PRODUCTS - 0.81%
149,806 Philip Morris Incorporated $ 2,083,778 $ 5,121,493
11,322 UST Incorporated 178,821 341,783
------------- ------------
$ 2,262,599 $ 5,463,276
</TABLE>
77
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
TRANSPORTATION BY AIR - 0.34%
9,667 AMR Corporation+ $ 339,140 $ 526,852
8,997 Delta Air Lines Incorporated 316,498 436,355
18,590 FDX Corporation+ 327,656 720,363
31,731 Southwest Airlines Company 270,458 481,915
4,902 US Airways Group Incorporated+ 186,768 128,678
------------- ------------
$ 1,440,520 $ 2,294,163
TRANSPORTATION EQUIPMENT - 2.37%
34,632 Allied Signal Incorporated $ 427,293 $ 2,075,755
60,346 Boeing Company 1,002,814 2,572,248
6,097 Brunswick Corporation 111,578 151,663
10,434 Dana Corporation 220,091 387,362
34,867 Delphi Automotive Systems Corporation 392,336 560,050
2,208 Fleetwood Enterprises Incorporated 37,615 44,574
2,083 FMC Corporation+ 77,334 100,505
75,798 Ford Motor Company 1,201,244 3,804,112
11,486 General Dynamics Corporation 328,825 717,157
40,460 General Motors Corporation 1,343,335 2,546,450
11,337 Genuine Parts Company 206,404 301,139
5,289 Goodrich (B. F.) Company 162,669 153,380
5,728 ITT Industries Incorporated 73,209 182,222
4,258 Navistar International Corporation+ 104,785 197,997
4,331 Northrop Grummman Corporation 226,048 275,289
4,945 PACCAR Incorporated 83,316 251,577
12,048 Rockwell International Corporation 223,092 632,520
9,581 Textron Incorporated 174,782 741,330
7,548 TRW Incorporated 199,912 375,513
------------- ------------
$ 6,596,682 $ 16,070,843
WATER TRANSPORTATION - 0.25%
38,254 Carnival Corporation $ 1,654,913 $ 1,664,049
</TABLE>
78
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
WHOLESALE TRADE-DURABLE GOODS - 1.19%
5,995 Grainger (W. W.) Incorporated $ 108,737 $ 288,135
84,158 Johnson & Johnson 1,520,119 7,732,015
3,349 Pep Boys - Manny, Moe & Jack 59,882 49,815
------------- ------------
$ 1,688,738 $ 8,069,965
WHOLESALE TRADE-NONDURABLE GOODS - 0.74%
4,330 Brown-Forman Corporation $ 95,439 $ 270,084
16,928 Cardinal Health Incorporated 887,873 922,575
17,044 McKesson HBOC Incorporated 1,213,504 494,275
7,604 Supervalu Incorporated 101,721 165,862
21,010 Sysco Corporation 157,788 736,663
35,945 Unilever NV 729,275 2,448,753
------------- ------------
$ 3,185,600 $ 5,038,212
TOTAL COMMON STOCKS $ 244,716,827 $660,763,509
</TABLE>
79
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 2.40%
U.S. TREASURY BILLS
$15,284,000 U.S. Treasury Bills 4.45%# 11/04/99 $ 15,218,370
965,000 U.S. Treasury Bills 4.43# 12/23/99 954,520
75,000 U.S. Treasury Bills 4.81# 03/23/00 73,230
------------
TOTAL U.S. TREASURY SECURITIES $ 16,246,120
(Cost $16,247,813)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $260,964,640)* (Notes 1 and 3) 99.85% $677,009,629
Other Asset and Liabilities, Net 0.15 1,032,841
------ ------------
TOTAL NET ASSETS 100.00% $678,042,470
====== ============
- ------------------------------------------------------------------------------------------------------
</TABLE>
** SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $1,044,297
+ NON-INCOME EARNING SECURITIES
# YIELD TO MATURITY
* COST FOR FEDERAL INCOME TAX PURPOSES IS $260,966,854 AND NET
UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $428,085,366
Gross Unrealized Depreciation (12,042,591)
-----------
NET UNREALIZED APPRECIATION $416,042,775
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
80
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Value Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 96.20%
CHEMICALS & ALLIED PRODUCTS - 2.47%
47,000 Du Pont EI De Nemours Company $ 3,566,999 $ 2,861,125
48,925 Pharmacia & Upjohn Incorporated 1,294,944 2,427,903
------------- ------------
$ 4,861,943 $ 5,289,028
COMMUNICATIONS - 13.76%
73,775 Ameritech Corporation $ 3,610,618 $ 4,956,758
144,778 AT & T Corporation 8,147,201 6,297,843
56,500 Bell Atlantic Corporation 2,907,228 3,803,156
52,350 BellSouth Corporation 2,315,093 2,355,750
72,150 GTE Corporation 3,123,828 5,546,531
24,300 MCI WorldCom Incorporated+ 2,034,179 1,746,563
16,850 Media One Group Incorporated 1,180,511 1,151,066
38,400 SBC Communications Incorporated 1,964,940 1,960,800
30,750 Sprint Corporation (FON GROUP) 1,687,342 1,668,188
------------- ------------
$ 26,970,940 $ 29,486,655
DOMESTIC DEPOSITORY INSTITUTIONS - 9.20%
19,955 Bank One Corporation $ 1,122,496 $ 694,683
47,500 Bank of America Corporation 2,818,605 2,645,156
40,280 Chase Manhattan Corporation 1,020,118 3,036,105
136,575 Citigroup Incorporated 4,148,659 6,009,300
29,250 First Union Corporation 1,113,255 1,040,203
28,750 U.S. Bancorp 1,017,083 867,891
118,650 Union BanCal Corporation 3,918,006 4,301,063
38,500 Washington Mutual Incorporated 1,122,806 1,126,125
------------- ------------
$ 16,281,028 $ 19,720,526
ELECTRIC, GAS & SANITARY SERVICES - 5.95%
57,625 Columbia Energy Group $ 2,926,648 $ 3,190,984
212,825 PacifiCorp 3,796,171 4,283,103
85,050 Potomac Electric Power 2,358,181 2,163,459
83,375 Texas Utilities Company 3,678,987 3,110,930
------------- ------------
$ 12,759,987 $ 12,748,476
</TABLE>
81
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 8.34%
172,650 American Power Conversion Corporation $ 2,554,624 $ 3,280,350
46,300 Emerson Electric Company 2,665,028 2,925,581
29,475 General Electric Company 718,335 3,494,630
14,725 Lockheed Martin Corporation 647,226 481,323
25,400 Motorola Incorporated 2,295,561 2,235,200
40,572 Philips Electronics NV 3,141,599 4,097,772
27,500 Raytheon Company 1,535,408 1,364,688
------------- ------------
$ 13,557,781 $ 17,879,544
ENERGY - 0.49%
34,550 Montana Power Company $ 640,165 $ 1,051,616
FOOD STORES - 0.48%
45,591 Delhaize America Incorporated $ 1,350,307 $ 1,031,496
GENERAL MERCHANDISE STORES - 1.98%
58,925 Costco Wholesale Corporation $ 873,563 $ 4,242,600
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING
PLACES - 3.34%
63,800 Avalon Bay Communities Incorporated $ 2,109,821 $ 2,161,225
51,300 Equity Residential Properties 2,221,163 2,173,838
225,675 Park Place Entertainment 2,525,960 2,820,938
------------- ------------
$ 6,856,944 $ 7,156,001
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT- 6.11%
46,975 Apple Computer Incorporated+ $ 1,659,863 $ 2,974,105
69,425 IBM Corporation 2,235,588 8,426,459
17,600 Minnesota Mining and Manufacturing Company 1,729,381 1,690,700
------------- ------------
$ 5,624,832 $ 13,091,264
</TABLE>
82
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Value Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE AGENTS, BROKERS & SERVICE - 1.47%
68,750 A.G. Edwards & Sons Incorporated $ 1,230,000 $ 1,813,281
19,500 Marsh & McLennan Companies 1,329,762 1,335,750
------------- ------------
$ 2,559,762 $ 3,149,031
INSURANCE CARRIERS - 4.59%
39,768 American International Group Incorporated $ 3,577,998 $ 3,457,331
34,400 CIGNA Corporation 2,297,004 2,674,600
282,403 Fremont General Corporation 4,376,832 2,682,829
25,125 Hartford Financial Services Group 1,130,782 1,026,984
------------- ------------
$ 11,382,616 $ 9,841,744
LOCAL & SUBURBAN TRANSIT & INTERURBAN HIGHWAY PASSENGER TRANSPORTATION - 2.37%
167,450 Canadian National Railroad Company $ 5,081,540 $ 5,075,828
MEASURING, ANALYZING, AND CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 7.61%
49,600 Eaton Corporation $ 4,082,808 $ 4,281,100
41,500 Honeywell Incorporated 3,076,283 4,619,469
48,425 Johnson Controls Incorporated 1,477,983 3,211,183
55,900 Transocean Offshore Incorporated 1,435,792 1,711,938
59,425 Xerox Corporation 3,225,803 2,492,136
------------- ------------
$ 13,298,669 $ 16,315,826
NONDEPOSITORY CREDIT INSTITUTIONS - 7.63%
74,500 Federal National Mortgage Association $ 4,646,770 $ 4,670,219
71,750 Household International Incorporated 3,445,680 2,878,969
68,750 Providian Financial Corporation 478,410 5,444,141
77,900 SLM Holding Corporation 3,469,995 3,349,700
------------- ------------
$ 12,040,855 $ 16,343,029
</TABLE>
83
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
OIL & GAS EXTRACTION - 5.81%
37,950 Atlantic Richfield Company $ 2,241,509 $ 3,363,319
26,375 Burlington Resource Incorporated 1,137,290 969,281
108,350 Enron Corporation 3,975,135 4,469,438
124,725 USX-Marathon Group Incorporated 3,749,405 3,648,206
------------- ------------
$ 11,103,339 $ 12,450,244
PAPER & ALLIED PRODUCTS - 1.49%
60,900 Bowater Incorporated $ 3,416,079 $ 3,197,250
PETROLEUM REFINING & RELATED INDUSTRIES - 6.67%
26,225 Coastal Corporation $ 1,155,935 $ 1,073,585
45,750 Exxon Corporation 1,482,899 3,474,140
64,975 Mobil Corporation 5,146,428 6,546,230
65,800 Phillips Petroleum Company 3,112,588 3,207,750
------------- ------------
$ 10,897,850 $ 14,301,705
PRIMARY METAL INDUSTRIES - 0.52%
18,100 Alcoa Incorporated $ 1,145,643 $ 1,123,331
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.36%
27,150 Newell Rubbermaid Incorporated $ 1,148,094 $ 775,472
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICE -1.90%
45,625 Morgan Stanley Dean Witter & Company $ 3,844,066 $ 4,069,180
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.88%
95,475 Owens-Illinois Incorporated+ $ 1,722,513 $ 1,891,598
TOBACCO PRODUCTS - 0.53%
33,150 Phillip Morris Incorporated $ 1,278,264 $ 1,133,316
</TABLE>
84
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Equity Value Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION EQUIPMENT - 2.25%
83,025 Dana Corporation $ 3,511,623 $ 3,082,303
34,700 Ford Motor Company 894,515 1,741,505
------------- ------------
$ 4,406,138 $ 4,823,808
TOTAL COMMON STOCKS $ 173,102,918 $206,188,568
</TABLE>
85
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 3.24%
$ 157,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28% 10/01/99 $ 157,000
436,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 436,000
6,333,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 6,333,000
------------
TOTAL REPURCHASE AGREEMENTS $ 6,926,000
(Cost $6,926,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $180,028,918)* (Notes 1 and 3) 99.44% $213,114,568
Other Assets and Liabilities, Net 0.56 1,209,037
------ ------------
TOTAL NET ASSETS 100.00% $214,323,605
====== ============
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $180,523,749 AND NET
UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $42,758,936
Gross Unrealized Depreciation (10,168,117)
-----------
NET UNREALIZED APPRECIATION $32,590,819
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
86
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK - 92.61%
APPAREL & ACCESSORY STORES - 0.40%
24,000 Kohl's Corporation+ $ 1,735,440 $ 1,587,000
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 1.53%
64,100 Home Depot Incorporated $ 2,240,581 $ 4,398,863
33,000 Lowes Corporation 1,904,535 1,608,750
------------- ------------
$ 4,145,116 $ 6,007,613
BUSINESS SERVICES - 7.22%
45,029 America Online Incorporated+ $ 5,381,194 $ 4,683,015
53,500 Interpublic Group Companies Incorporated 1,989,968 2,200,188
195,869 Microsoft Corporation+ 7,540,596 17,738,385
31,202 Sun Microsystems Incorporated+ 1,799,245 2,901,785
12,000 Veritas Software Corporation+ 819,464 911,250
------------- ------------
$ 17,530,467 $ 28,434,623
CHEMICALS & ALLIED PRODUCTS - 10.08%
65,572 Abbott Laboratories $ 2,344,183 $ 2,409,770
15,000 Amgen Incorporated+ 943,125 1,222,500
78,984 Bristol-Myers Squibb Company 4,358,157 5,331,420
20,000 Clorox Company 874,194 765,000
81,600 Colgate-Palmolive Company+ 2,528,258 3,733,200
39,812 Dupont E I De Nemours 2,549,689 2,423,555
48,054 Eli Lilly & Company 3,657,382 3,075,455
78,276 Gillette Company 2,699,159 2,656,492
59,300 Merck & Company 3,349,621 3,843,380
45,358 Monsanto Corporation 1,811,341 1,618,714
147,701 Pfizer Incorporated 4,786,741 5,308,005
53,444 Procter & Gamble Company 4,346,964 5,010,375
52,325 Schering Plough Corporation 2,007,402 2,282,678
------------- ------------
$ 36,256,216 $ 39,680,544
</TABLE>
87
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
COMMUNICATIONS - 9.57%
83,921 AT & T Corporation $ 3,120,961 $ 3,650,564
90,952 Bell Atlantic Corporation 4,229,035 6,122,207
26,500 CBS Corporation 1,243,778 1,225,625
46,700 Clear Channel Communications+ 2,113,144 3,730,163
158,800 Fox Entertainment Group Incorporated+ 3,784,845 3,354,650
81,346 GTE Corporation 3,818,300 6,253,474
70,324 MCI Worldcom Incorporated+ 3,144,439 5,054,538
161,904 SBC Communications Incorporated 5,065,961 8,267,223
------------- ------------
$ 26,520,463 $ 37,658,444
DOMESTIC DEPOSITORY INSTITUTIONS - 4.10%
102,660 Chase Manhattan Corporation $ 6,017,350 $ 7,737,998
160,500 Citigroup Incorporated 6,823,622 7,062,000
51,500 Firstar Corporation 1,483,086 1,319,688
------------- ------------
$ 14,324,058 $ 16,119,686
EATING & DRINKING PLACES - 0.62%
57,100 McDonalds Corporation $ 1,752,622 $ 2,455,300
ELECTRIC, GAS & SANITARY SERVICES - 3.10%
74,600 AES Corporation+ $ 3,046,021 $ 4,401,400
106,486 Edison International 2,786,312 2,588,940
131,336 Pacific Gas & Electric Company 4,024,580 3,398,319
48,430 Williams Companies Incorporated 1,259,883 1,813,098
------------- ------------
$ 11,116,796 $ 12,201,757
</TABLE>
88
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 10.51%
116,042 General Electric Company $ 8,644,922 $ 13,758,230
147,916 Intel Corporation 6,720,821 10,992,008
123,500 Lucent Technologies Incorporated 4,580,845 8,012,063
70,036 Nortel Networks Corporation 1,943,753 3,571,835
61,194 Texas Instruments Incorporated 3,325,052 5,033,207
------------- ------------
$ 25,215,393 $ 41,367,343
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 0.15%
14,000 Halliburton Company $ 642,193 $ 574,000
FOOD & KINDRED PRODUCTS - 2.34%
41,500 Anheuser-Busch Companies $ 3,143,123 $ 2,907,594
95,920 Coca Cola Company 6,441,458 4,610,155
55,500 Pepsico Incorporated 2,218,402 1,678,875
------------- ------------
$ 11,802,983 $ 9,196,624
FOOD STORES - 0.63%
65,200 Safeway Incorporated+ $ 3,142,805 $ 2,481,675
FURNITURE & FIXTURES - 0.29%
17,000 Johnson Controls Incorporated $ 1,089,020 $ 1,127,313
GENERAL MERCHANDISE STORES - 3.60%
104,320 Dayton Hudson Corporation $ 3,034,967 $ 6,265,720
166,604 Wal-Mart Stores Incorporated 3,588,467 7,924,103
------------- ------------
$ 6,623,434 $ 14,189,823
</TABLE>
89
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT - 8.97%
13,000 Applied Materials Incorporated+ $ 1,023,335 $ 1,012,375
31,000 Baker Hughes Incorporated 1,079,361 899,000
137,330 Cisco Systems Incorporated+ 2,470,077 9,415,688
88,922 Dell Computer Corporation+ 3,325,062 3,718,050
38,368 EMC Corporation+ 797,099 2,740,914
39,538 Hewlett-Packard Company 3,225,550 3,637,495
75,082 IBM Corporation 5,568,078 9,113,078
45,200 Ingersoll-Rand Company 2,480,188 2,483,175
38,300 United Technologies Corporation 2,060,835 2,271,669
------------- ------------
$ 22,029,585 $ 35,291,444
INSURANCE CARRIERS - 3.23%
19,300 AFLAC Incorporated $ 876,677 $ 808,188
136,927 American International Group Incorporated 6,784,510 11,903,917
------------- ------------
$ 7,661,187 $ 12,712,105
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.71%
72,222 Baxter International Incorporated $ 3,380,329 $ 4,351,375
42,788 Danaher Corporation 1,406,527 2,254,393
19,000 Guidant Corporation+ 1,121,370 1,018,875
7,600 JDS Uniphase Corporation+ 624,364 864,975
27,600 Medtronic Incorporated 1,165,712 979,800
28,312 Xerox Corporation 1,387,748 1,187,335
------------- ------------
$ 9,086,050 $ 10,656,753
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.16%
82,300 Tyco International Limited $ 5,354,098 $ 8,497,475
</TABLE>
90
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
MOTION PICTURES - 1.16%
32,500 Time Warner Incorporated $ 2,147,405 $ 1,974,375
99,700 Walt Disney Company 3,154,298 2,579,738
------------- ------------
$ 5,301,703 $ 4,554,113
NONDEPOSITORY CREDIT INSTITUTIONS - 4.41%
45,500 Associates First Capital $ 1,960,325 $ 1,638,000
132,060 Federal Home Loan Mortgage Corporation 4,796,763 6,867,120
64,776 Federal National Mortage Association 3,986,035 4,060,646
119,326 Household International Incorporated 4,590,810 4,787,956
------------- ------------
$ 15,333,933 $ 17,353,722
OIL & GAS EXTRACTION - 0.30%
19,000 Schlumberger Limited $ 1,113,408 $ 1,183,938
PAPER & ALLIED PRODUCTS - 0.37%
30,500 International Paper Company $ 1,546,662 $ 1,465,906
PETROLEUM REFINING & RELATED INDUSTRIES - 7.65%
8,000 BP Amoco PLC $ 911,839 $ 886,500
61,073 Chevron Corporation 5,106,759 5,420,229
11,000 Coastal Corporation 437,223 450,313
84,853 Conoco Incorporated 1,842,293 2,322,851
104,578 Exxon Corporation 6,718,840 7,941,392
50,674 Mobil Corporation 3,665,274 5,105,406
108,816 Royal Dutch Petroleum 5,850,790 6,426,945
24,554 Texaco Incorporated 1,357,889 1,549,971
------------- ------------
$ 25,890,907 $ 30,103,607
PRIMARY METAL INDUSTRIES - 0.78%
49,732 Alcoa Incorporated $ 2,381,651 $ 3,086,492
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.25%
71,280 Gannet Company Incorporated $ 4,386,418 $ 4,931,685
</TABLE>
91
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.54%
92,192 Charles Schwab Corporation $ 994,582 $ 3,105,718
13,174 Goldman Sachs Group Incorporated 781,439 803,614
24,000 Morgan Stanley Dean Witter & Company 2,411,583 2,140,500
------------- ------------
$ 4,187,604 $ 6,049,832
TRANSPORTATION EQUIPMENT - 2.58%
152,206 Allied Signal Incorporated $ 4,207,940 $ 9,122,847
20,900 Ford Motor Company 1,064,033 1,048,919
------------- ------------
$ 5,271,973 $ 10,171,766
WHOLESALE TRADE-DURABLE GOODS - 1.37%
58,602 Johnson & Johnson $ 3,911,150 $ 5,384,059
------------- ------------
TOTAL COMMON STOCKS $ 275,353,335 $364,524,642
OTHER - 5.04%
UNIT INVESTMENT TRUSTS - 5.04%
154,500 S&P 500 Depositary Receipts $ 20,341,617 $ 19,838,773
</TABLE>
92
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.76%
REPURCHASE AGREEMENTS - 1.76%
$5,417,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government
Securities 5.28% 10/01/99 $ 5,417,000
13,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 13,000
1,500,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 1,500,000
------------
TOTAL SHORT-TERM INSTRUMENTS $ 6,930,000
(Cost $6,930,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $302,624,952)* (Notes 1 and 3) 99.41% $391,293,415
Other Asset and Liabilities, Net 0.59 2,337,604
------ ------------
TOTAL NET ASSETS 100.00% $393,631,019
====== ============
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $98,348,157
Gross Unrealized Depreciation (9,679,694)
-----------
NET UNREALIZED APPRECIATION $88,668,463
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
93
<PAGE>
International Equity Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 89.64%
AUSTRALIA - 1.67%
176,800 News Corporation Limited (Media - Broadcasting & Publishing) $ 1,134,519 $ 1,241,507
BRAZIL - 1.04%
37,000 Aracruz Celulose SA ADR (Forest Products & Paper) $ 669,109 $ 772,375
FINLAND - 1.62%
13,400 Nokia Corporation ADR (Communications Equipment) $ 398,259 $ 1,203,488
FRANCE - 12.83%
11,000 AXA UAP (Insurance) $ 1,097,118 $ 1,389,843
16,000 Canal Plus (Media - Broadcasting & Publishing) 780,242 954,640
6,200 Cap Gemini SA (Computer Software & Processing) 1,056,797 975,910
8,000 Equant NV (Computer Software & Processing)+ 357,982 651,000
20,300 Groupe Danone ADR (Beverages, Food & Tobacco) 675,269 983,281
29,000 ST Microelectronics (Electronics) 1,031,993 2,257,704
7,500 Suez Lyonnaise des Eaux (Industrial - Diversified) 1,393,395 1,212,443
8,900 Total Petrofina SA - Series B (Oil & Gas) 1,046,732 1,116,937
------------ -----------
$ 7,439,528 $ 9,541,758
GERMANY - 5.26%
3,088 Allianz AG (Insurance) $ 696,022 $ 888,057
23,111 Deutsche Bank AG - Reg (Banking) 1,206,998 1,548,518
15,000 Metro AG (Retailers) 754,098 781,707
12,700 Veba AG (Industrial - Diversified) 775,459 692,236
------------ -----------
$ 3,432,577 $ 3,910,518
</TABLE>
94
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
GREAT BRITAIN - 15.62%
145,000 Amvescap PLC (Financial Services) $ 971,329 $ 1,182,968
31,100 ARM Holdings PLC ADR (Electronics) 295,998 1,461,700
66,700 British Petroleum Co PLC (Oil & Gas) 1,042,352 1,217,922
75,000 British Telecommunications PLC (Communications) 1,218,188 1,135,463
10,000 Glaxo Holdings PLC ADR (Pharmaceuticals) 442,646 520,000
270,000 Invensys PLC (Manufacturing) 1,341,054 1,315,872
95,000 Select Appointments Holdings PLC (Commercial Services)+ 921,927 1,606,479
13,000 Smithkline Beecham PLC ADR (Pharmaceuticals) 599,937 749,125
185,000 TeleWest Communications PLC (Media - Broadcasting & Publishing)+ 656,378 677,748
73,800 Vodafone Group PLC ADR (Communications) 539,438 1,747,332
------------ -----------
$ 8,029,247 $11,614,609
GREECE - 0.80%
25,555 Hellenic Telecommunication Organization SA (Communications) $ 644,073 $ 595,495
HONG KONG - 1.97%
103,000 Cheung Kong Limited (Real Estate) $ 939,824 $ 858,567
53,000 HSBC Holdings PLC (Banking) 476,913 607,242
------------ -----------
$ 1,416,737 $ 1,465,809
HUNGARY - 1.28%
35,000 Matav RT ADR (Communications)+ $ 705,447 $ 953,750
IRELAND - 1.64%
82,400 Ryanair Holdings PLC (Airlines)+ $ 461,979 $ 762,472
10,000 Ryanair Holdings PLC ADR (Airlines)+ 250,000 458,750
------------ -----------
$ 711,979 $ 1,221,222
</TABLE>
95
<PAGE>
International Equity Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ISRAEL - 0.82%
35,000 Koor Industries Limited ADR (Conglomerate) $ 692,105 $ 610,313
ITALY - 3.23%
118,000 ENI SpA (Oil & Gas) $ 748,368 $ 739,187
68,200 San Paolo - IMI SpA (Banking) 1,006,065 884,915
9,000 Telecom Italia SpA ADR (Communications) 599,640 775,688
------------ -----------
$ 2,354,073 $ 2,399,790
JAPAN - 19.92%
42,000 Fujitsu Limited (Electronics) $ 1,026,749 $ 1,305,494
26,000 Honda Motor Company Limited (Automotive) 950,579 1,085,666
61,000 Marui Company Limited (Retailers) 985,630 1,135,363
1,000 Nippon Telegraph & Telephone Corporation (Communications) 884,800 1,226,477
18,000 Secom Company Limited (Commercial Services) 617,061 1,600,974
20,000 Seven Eleven Japan Company Limited (Retailers) 711,384 1,750,772
1,000 Shohkoh Fund & Company Limited (Financial Services) 750,721 744,312
2,000 Softbank Corporation (Computer Software & Processing) 560,742 758,356
11,300 Sony Corporation (Electronics) 1,094,053 1,683,204
23,000 Takeda Chemical Industries (Pharmeceuticals) 885,988 1,238,180
10,000 Takefuji Corporation (Financial Services) 718,407 1,659,957
27,000 Tokyo Electric Power Company Incorporated (Electric Utilities) 628,475 621,853
------------ -----------
$ 9,814,589 $14,810,608
MEXICO - 1.83%
34,000 Grupo Elektra SA de CV GDR (Retailers) $ 560,548 $ 163,625
333,500 Telefonos de Mexico SA (Communications) 1,122,554 1,193,763
------------ -----------
$ 1,683,102 $ 1,357,388
</TABLE>
96
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS - 6.63%
17,000 Koninklijke Ahold NV (Food Retailers) $ 475,892 $ 558,681
11,040 Koninklijke (Royal) Philips Electronics NV (Electronics) 946,900 1,115,040
14,800 Royal Dutch Petroleum (Oil & Gas) 820,044 874,125
19,757 Unilever NV (Consumer - Diversified) 1,379,029 1,342,698
16,800 United Pan-Europe Communications NV (Media, Broadcasting &
Publishing)+ 720,620 1,036,323
------------ -----------
$ 4,342,485 $ 4,926,867
NEW ZEALAND - 0.19%
81,900 Tranz Rail Holdings Limited (Transportation) $ 456,063 $ 141,507
NORWAY - 1.15%
45,400 Petroleum Geo-Services ASA (Oil & Gas)+ $ 1,133,241 $ 851,522
SINGAPORE - 3.34%
139,560 DBS Bank Limited (Banking) $ 711,755 $ 1,558,871
58,800 Singapore Press Holdings Limited (Media - Broadcasting &
Publishing) 669,957 926,418
------------ -----------
$ 1,381,712 $ 2,485,289
SOUTH KOREA - 0.84%
16,900 Korea Telecom Corporation ADR (Communications)+ $ 578,221 $ 625,300
SPAIN - 3.20%
60,000 Banco Santander Central Hispano SA (Banking) $ 455,610 $ 619,620
27,600 Superdiplo SA (Food Retailers)+ 691,687 565,651
74,907 Telefonica SA (Communications) 758,686 1,197,396
------------ -----------
$ 1,905,983 $ 2,382,667
</TABLE>
97
<PAGE>
International Equity Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
SWEDEN - 1.47%
35,000 Telefonaktiebolaget LM Ericsson ADR (Communications Equipment) $ 781,896 $ 1,093,750
SWITZERLAND - 2.80%
400 Nestle SA (Beverages, Food & Tobacco) $ 638,846 $ 750,349
900 Novartis AG - Registered Shares (Pharmaceuticals) 1,402,586 1,332,668
------------ -----------
$ 2,041,432 $ 2,083,017
TAIWAN - 0.50%
15,300 ASE Test Limited TDR (Electronics)+ $ 366,240 $ 371,027
------------ -----------
TOTAL COMMON STOCKS $ 52,112,617 $66,659,576
PREFERRED STOCKS - 2.92%
BRAZIL - 1.11%
9,191,630 Telecomunicacoes de Sao Paulo SA (Communications) $ 1,226,003 $ 823,570
GERMANY - 1.81%
3,000 SAP AG - Vorzug (Computer Software & Processing) $ 1,338,936 $ 1,349,645
------------ -----------
TOTAL PREFERRED STOCKS $ 2,564,939 $ 2,173,215
</TABLE>
98
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
MUTUAL FUNDS - 2.72%
UNITED STATES - 2.72%
145,000 WEBS - Japan Index Series $ 2,034,847 $ 2,020,937
------------ -----------
TOTAL MUTUAL FUNDS $ 2,034,847 $ 2,020,937
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $56,712,403)* (Notes 1 and 3) 95.28% $70,853,728
Other Assets and Liabilities, Net 4.72 3,509,298
------ -----------
TOTAL NET ASSETS 100.00% $74,363,026
====== ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME PRODUCING SECURITIES.
* COST FOR FEDERAL INCOME TAX IS $57,708,236 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $15,595,275
Gross Unrealized Depreciation (2,449,783)
-----------
NET UNREALIZED APPRECIATION $13,145,492
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
99
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK - 95.65%
APPAREL & ACCESSORY STORES - 0.21%
4,725 Children's Place+ $ 198,145 $ 125,803
AUTOMOTIVE DEALERS & GASOLINE - 0.95%
25,715 CSK Auto Corporation+ $ 629,999 $ 560,908
AUTOMOTIVE REPAIR & SERVICES - 0.54%
15,377 Avis Rent A Car Incorporated+ $ 402,089 $ 320,995
BUSINESS SERVICES - 23.44%
13,475 Active Software Incorporated+ $ 173,541 $ 322,558
10,700 Actuate Corporation+ 328,667 362,463
6,355 Agile Software Corporation+ 217,237 406,720
19,504 Bindview Development Corporation+ 360,711 383,985
9,350 Broadvision Incorporated+ 693,871 1,244,134
3,518 Commerce One Incorporated+ 172,430 343,775
14,825 Concur Technologies+ 468,438 422,513
4,450 Cybersource Corporation+ 94,020 246,419
19,197 Entrust Technologies Incorporated+ 493,112 430,733
6,600 Goto.Com Incorporated+ 161,381 344,025
13,927 High Speed Access Corporation+ 280,249 319,451
7,661 Homestore.Com Incorporated+ 212,366 319,368
15,000 Internap Network Services Corporation+ 300,000 669,375
15,000 International Integration Incorporated+ 298,259 491,250
5,530 Lamar Advertising Company+ 229,188 273,735
7,850 Liquid Audio Incorporated+ 312,840 290,450
22,440 Mercury Interactive Corporation+ 897,059 1,448,783
16,240 Micromuse Incorporated+ 746,135 1,043,420
10,500 NetZero Incorporated+ 221,175 273,000
23,201 Nova Corporation+ 649,908 580,025
25 PRI Automation Incorporated+ 913 903
13,700 Saleslogix Corporation+ 191,274 274,000
6,125 Security First Technology+ 254,707 238,109
5,319 SEI Investments Company 470,980 474,887
3,675 TMP Worldwide Incorporated+ 212,466 223,716
19,675 TSI International Software Limited+ 401,670 533,684
</TABLE>
100
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
11,529 USWeb Corporation+ $ 360,010 $ 395,589
10,875 Verticalnet Incorporated+ 357,468 402,375
12,100 Vignette Corporation+ 855,205 1,095,050
------------ -----------
$ 10,415,280 $13,854,495
CHEMICALS & ALLIED PRODUCTS - 6.27%
21,481 Cambrex Corporation $ 545,956 $ 567,904
22,425 Chirex Incorporated+ 704,613 578,845
8,125 Gilead Sciences Incorporated+ 502,791 521,523
12,100 ICN Pharmaceuticals Incorporated 371,077 207,969
2,950 IDEC Pharmaceuticals Corporation+ 283,339 277,392
6,450 King Pharmaceuticals Incorporated+ 248,477 225,750
18,335 Medicis Pharmaceutical+ 526,746 522,548
19,749 Pharmacyclics Incorporated+ 544,639 807,240
------------ -----------
$ 3,727,638 $ 3,709,171
COMMUNICATIONS - 13.31%
11,975 24/7 Media Incorporated+ $ 389,852 $ 453,553
9,600 AirGate PCS Incorporated+ 163,200 238,800
6,575 Aironet Wireless Communications Incorporated+ 75,680 138,075
10,050 Caprock Communications Corporation+ 363,828 233,663
7,000 Commonwealth Telephone Enterprises 341,792 308,000
12,655 Concentric Network Corporation+ 493,320 257,055
15,350 Crown Castle International Corporation+ 309,835 287,334
36,300 Cumulus Media Incorporated+ 910,602 1,186,556
12,616 Emmis Communications Corporation+ 609,327 833,445
12,034 Globix Corporation+ 527,580 562,590
15,943 Insight Communications+ 403,436 456,368
27,694 ITC Deltacom Incorporated+ 578,236 761,585
19,600 Macromedia Incorporated+ 824,122 801,150
25,225 Network Plus Corporation+ 474,242 348,420
25 Pacific Gateway Exchange+ 425 409
25,025 Skytel Communications Incorporated+ 538,185 458,270
</TABLE>
101
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
14,967 True North Communications $ 451,341 $ 544,425
------------ -----------
$ 7,455,003 $ 7,869,698
COMPUTER HARDWARE/SOFTWARE - 0.50%
5,512 Gadzoox Networks Incorporated+ $ 296,869 $ 296,959
DOMESTIC DEPOSITORY INSTITUTIONS - 3.57%
22,766 Commercial Federal Corporation $ 529,205 $ 446,783
35,599 Community First Bankshare 816,660 600,733
37,292 Firstfed Financial Corporation 772,291 647,949
17,090 Silicon Valley Bancshares 393,689 412,296
------------ -----------
$ 2,511,845 $ 2,107,761
EDUCATIONAL SERVICES - 0.39%
11,529 Devry Incorporated+ $ 299,438 $ 230,580
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 11.34%
18,000 Amkor Technology Incorporated+ $ 318,378 $ 290,250
10,125 Antec Corporation+ 344,854 537,891
7,950 Applied Micro Circuits+ 352,109 453,150
6,925 Burr-Brown Corporation+ 274,980 273,538
19,900 CTC Communications Corporation+ 336,636 327,106
13,925 Cypress Semiconductor Corporation+ 328,946 299,388
6,400 DII Group Incorporated+ 236,511 225,200
3,143 Globespan Incorporated+ 169,595 198,402
10,875 Lattice Semiconductor+ 348,859 322,852
8,575 Micrel Incorporated+ 342,081 371,941
9,011 Novellus Systems Incorporated+ 568,754 607,679
26,301 Nvidia Corporation+ 539,742 506,294
14,516 Power Integrations Incorporated+ 525,033 1,005,233
9,000 Power-One Incorporated+ 239,588 229,500
8,475 Terayon Communication Systems+ 371,484 414,216
5,000 Transwitch Corporation+ 254,523 285,000
</TABLE>
102
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
8,475 Unitrode Corporation+ $ 321,592 $ 355,950
------------ -----------
$ 5,873,665 $ 6,703,590
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 6.42%
8,350 Abacus Direct Corporation+ $ 852,938 $ 1,017,656
3,450 Affymetrix Incorporated+ 315,459 339,609
25,750 Cephalon Incorporated+ 468,285 462,697
5,975 Flycast Communications+ 178,047 271,863
11,530 Medquist Incorporated+ 428,640 385,534
5,725 Millennium Pharmaceutical+ 304,796 372,125
15,435 Navigant Consulting Company+ 570,928 715,798
5,175 The Profit Recovery Group+ 196,136 230,934
------------ -----------
$ 3,315,229 $ 3,796,216
FOOD & KINDRED PRODUCTS - 0.99%
20,357 American Italian Pasta Company+ $ 643,441 $ 582,719
GENERAL MERCHANDISE STORES - 1.87%
17,015 Ames Dept Stores Incorporated+ $ 632,736 $ 542,353
19,114 BJ's Wholesale Club Incorporated+ 512,784 565,058
------------ -----------
$ 1,145,520 $ 1,107,411
HEALTH SERVICES - 1.61%
43,191 Caremark Rx Incorporated+ $ 359,519 $ 242,949
3,667 Express Scripts Incorporated+ 243,667 286,943
12,875 Laser Vision Centers Incorporated+ 353,008 180,653
23,950 Novamed Eyecare Incorporated+ 222,165 243,991
------------ -----------
$ 1,178,359 $ 954,536
</TABLE>
103
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 2.00%
14,725 Rex Stores Corporation+ $ 519,518 $ 456,475
28,668 Tuesday Morning Corporation+ 546,682 723,867
------------ -----------
$ 1,066,200 $ 1,180,342
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT - 4.10%
3,075 Emulex Corporation+ $ 266,856 $ 264,066
15,875 Lam Research Corporation+ 888,330 968,375
9,815 Paradyne Networks Incorporated+ 252,201 274,820
6,300 Radware Limited+ 154,584 173,250
17,500 Visual Networks Incorporated+ 690,456 742,656
------------ -----------
$ 2,252,427 $ 2,423,167
INSURANCE CARRIERS - 0.47%
16,425 Miix Group Incorporated $ 253,993 $ 278,198
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.71%
16,678 Cerus Corporation+ $ 372,861 $ 387,764
21,837 Cymer Incorporated+ 601,015 757,471
11,668 Microchip Technology Incorporated+ 500,582 599,444
6,050 Optical Coating Lab Incorporated 526,182 556,978
26,475 Summit Technology Incorporated+ 530,352 484,823
------------ -----------
$ 2,530,992 $ 2,786,480
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.87%
26,550 Yankee Candle Company Incorporated+ $ 508,515 $ 512,747
MISCELLANEOUS RETAIL - 0.91%
10,400 Ashford.com Incorporated+ $ 135,150 $ 95,875
11,501 Zale Corporation+ 393,898 440,632
------------ -----------
$ 529,048 $ 536,507
</TABLE>
104
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
NONDEPOSITORY CREDIT INSTITUTIONS - 2.91%
44,867 Americredit Corporation+ $ 638,120 $ 670,200
22,359 Metris Companies Incorporated+ 612,890 658,193
16,025 Nextcard Incorporated+ 411,657 392,613
------------ -----------
$ 1,662,667 $ 1,721,006
OIL & GAS EXTRACTION - 2.94%
12,695 BJ Services Company+ $ 396,670 $ 403,860
12,875 Helmerich & Payne Incorporated 373,184 325,898
12,225 Newfield Exploration Company+ 364,710 402,660
50 Ocean Energy Incorporated+ 575 509
6,450 Stone Energy Corporation+ 325,498 328,144
14,096 UTI Energy Corporation+ 249,575 273,990
------------ -----------
$ 1,710,212 $ 1,735,061
PRIMARY METAL INDUSTRIES - 0.62%
11,300 Commscope Incorporated+ $ 350,308 $ 367,250
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.09%
8,345 Southwest Securities $ 418,209 $ 225,315
18,825 Waddle & Reed Financial 449,369 417,680
------------ -----------
$ 867,578 $ 642,995
TRANSPORTATION SERVICES - 0.54%
9,775 Cheap Tickets Incorporated+ $ 364,656 $ 316,466
WHOLESALE TRADE-DURABLE GOODS - 2.08%
11,475 Chemdex Corporation+ $ 219,595 $ 353,573
6,450 Cytyc Corporation+ 252,087 249,534
9,700 Insight Enterprises Incorporated+ 330,508 315,250
21,900 Wesco International Incorporated+ 390,392 309,338
------------ -----------
$ 1,192,582 $ 1,227,695
</TABLE>
105
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
WHOLESALE TRADE-NONDURABLE GOODS - 1.01%
12,660 Amerisource Health Corporation+ $ 368,805 $ 299,884
7,996 Barrett Resources Corporation+ 301,280 295,352
------------ -----------
$ 670,085 $ 595,236
TOTAL COMMON STOCKS $ 52,051,783 $56,543,992
</TABLE>
106
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 1.33%
REPURCHASE AGREEMENTS
$ 786,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities (Cost
$786,000) 5.28% 10/01/99 $ 786,000
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $52,837,783)* (Notes 1 and 3) 96.98% $57,329,992
Other Asset and Liabilities, Net 3.02 1,783,652
------ -----------
TOTAL NET ASSETS 100.00% $59,113,644
====== ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $53,189,564 AND NET UNREALIZED
APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 7,346,642
Gross Unrealized Depreciation (3,206,214)
-----------
NET UNREALIZED APPRECIATION $ 4,140,428
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
107
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK - 95.48%
APPAREL & ACCESSORY STORES - 0.65%
40,000 Ross Stores Incorporated $ 760,000 $ 805,000
BUSINESS SERVICES - 23.37%
20,942 Agile Software Corporation+ $ 1,175,922 $ 1,340,288
30,000 Bindview Development Corporation+ 644,278 590,625
19,025 Broadvision Incorporated+ 1,324,585 2,531,514
20,000 Check Point Software+ 1,297,188 1,688,750
29,275 Concur Technologies Incorporated+ 701,553 834,338
30,000 Entrust Technologies Incorporated+ 837,813 673,125
4,817 Gartner Group Incorporated+ 132,509 80,384
16,100 Homestore.Com Incorporated+ 378,125 671,169
22,500 Internap Network Services Corporation+ 1,168,760 1,004,063
52,500 International Integration Incorporated+ 976,266 1,719,375
15,000 Intuit Incorporated+ 1,387,500 1,314,845
42,775 Mercury Interactive Corporation+ 1,747,687 2,761,661
48,950 Micromuse Incorporated+ 2,111,663 3,145,038
20,000 Omnicom Group Incorporated 1,244,950 1,583,750
37,835 Saleslogix Corporation+ 340,515 756,700
20,000 TSI International Software Limited+ 375,000 542,500
21,500 Usweb Corporation+ 465,563 737,719
20,000 Verio Incorporated+ 547,500 620,000
20,000 Veritas Software Company+ 1,053,907 1,518,750
21,400 Verticalnet Incorporated+ 695,862 791,800
40,000 Vignette Corporation+ 2,841,651 3,619,997
40,000 Voyager.Net Incorporated+ 633,517 350,000
------------ ------------
$ 22,082,314 $ 28,876,391
CHEMICALS & ALLIED PRODUCTS - 6.89%
30,000 Biogen Incorporated+ $ 1,899,563 $ 2,364,375
17,500 Centocor Incorporated+ 687,957 1,024,844
30,000 Chirex Incorporated+ 960,000 774,375
28,000 Invitrogen Corporation+ 706,000 941,500
15,000 MedImmune Incorporated+ 794,250 1,494,845
</TABLE>
108
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
46,875 Pharmacyclics Incorporated+ $ 1,899,202 $ 1,916,015
------------ ------------
$ 6,946,972 $ 8,515,954
COMMUNICATIONS - 12.47%
24,650 24/7 Media Incorporated+ $ 719,869 $ 933,619
20,000 Aironet Wireless Communications+ 267,500 420,000
29,100 American Tower 739,673 569,269
59,865 AMFM Incorporated+ 3,123,392 3,644,282
50,000 Aspect Telecommunications+ 850,000 848,440
30,000 Crown Castle International Corporation+ 601,875 561,564
25,000 Cumulus Media Incorporated+ 683,438 817,188
10,000 Destia Commmunications Incorporated+ 132,500 125,000
25,000 Globix Corporation+ 928,422 1,168,750
40,000 ITC Deltacom Incorporated+ 925,000 1,100,000
59,850 Macromedia Incorporated+ 2,629,629 2,446,369
32,000 McLeod Incorporated+ 658,320 1,362,000
27,200 Nextlink Communication+ 680,432 1,410,150
------------ ------------
$ 12,940,050 $ 15,406,631
COMPUTER HARDWARE/SOFTWARE - 0.55%
20,000 Actuate Corporation+ $ 608,362 $ 677,500
DOMESTIC DEPOSITORY INSTITUTIONS - 4.14%
30,000 City National Corporation $ 1,120,091 $ 1,006,875
40,000 Firstar Corporation 988,300 1,025,000
15,000 Northern Trust Corporation 1,127,500 1,252,500
9,000 U.S. Trust Corporation 667,625 723,375
20,000 Zions Bancorporation+ 950,625 1,102,500
------------ ------------
$ 4,854,141 $ 5,110,250
</TABLE>
109
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 13.33%
35,400 Amkor Technology Incorporated+ $ 617,751 $ 570,825
17,000 Applied Micro Circuits Company+ 692,062 969,000
10,000 Broadcom Corporation+ 643,133 1,090,000
35,000 Cypress Semiconductor Corporation+ 904,726 752,500
50,000 Digital Microwave Corporation+ 746,095 784,375
20,000 Flextronics International Limited+ 915,000 1,163,750
12,500 Inet Technologies Incorporated+ 321,250 498,829
55,000 Maxim Integrated Products+ 3,804,999 3,470,159
79,450 Nvidia Corporation+ 1,443,330 1,529,413
27,000 Power Integrations Incorporated+ 1,866,123 1,869,749
15,000 Sanmina Corporation+ 873,176 1,160,625
15,450 Unitrode Corporation+ 680,715 648,900
30,000 Xilinx Incorporated+ 1,160,750 1,965,939
------------ ------------
$ 14,669,110 $ 16,474,064
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES - 3.33%
10,000 Abacus Direct Corporation+ $ 1,141,250 $ 1,218,750
20,000 Cephalon Incorporated+ 341,875 359,376
10,500 Millennium Pharmaceutical+ 487,594 682,500
40,000 Navigant Consulting Company+ 1,899,125 1,855,000
------------ ------------
$ 3,869,844 $ 4,115,626
FOOD & KINDRED PRODUCTS - 0.12%
5,000 American Italian Pasta Company+ $ 142,049 $ 143,121
GENERAL MERCHANDISE STORES - 2.79%
20,000 Ames Department Stores Incorporated+ $ 865,938 $ 637,500
50,000 Dollar General Corporation 1,049,992 1,543,750
45,000 TJX Company Incorporated 1,262,181 1,262,813
------------ ------------
$ 3,178,111 $ 3,444,063
</TABLE>
110
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
HEALTH SERVICES - 0.41%
50,000 Novamed Eyecare Incorporated+ $ 550,625 $ 509,375
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 3.86%
22,000 Best Buy Company Incorporated+ $ 1,288,320 $ 1,365,375
20,000 Circuit City Stores Incorporated 521,635 843,750
20,000 Tandy Corporation 562,335 1,033,750
60,350 Tuesday Morning Corporation+ 1,517,537 1,523,837
------------ ------------
$ 3,889,827 $ 4,766,713
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 7.32%
35,000 Baker Hughes Incorporated $ 1,019,288 $ 1,015,000
53,925 Lam Research Corporation+ 3,224,384 3,289,425
36,570 Lexmark International Group Incorporated+ 1,541,412 2,943,885
8,800 Radware Limited+ 315,975 242,000
36,575 Visual Networks Incorporated+ 1,451,125 1,552,152
------------ ------------
$ 7,552,184 $ 9,042,462
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.43%
42,000 Cymer Incorporated+ $ 1,061,560 $ 1,456,875
25,000 Guidant Corporation+ 1,070,263 1,340,625
12,500 JDS Uniphase Corporation+ 359,844 1,422,656
25,000 Summit Technology Incorporated+ 642,533 457,813
10,000 VISX Incorporated+ 821,250 790,938
------------ ------------
$ 3,955,450 $ 5,468,907
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.52%
33,400 Yankee Candle Company Incorporated+ $ 654,179 $ 645,038
</TABLE>
111
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
NONDEPOSITORY CREDIT INSTITUTIONS - 1.95%
55,000 Metris Companies Incorporated $ 1,316,556 $ 1,619,063
10,000 Providian Financial Corporation 858,738 791,875
------------ ------------
$ 2,175,294 $ 2,410,938
OIL & GAS EXTRACTION - 2.83%
35,000 Diamond Offshore Drilling $ 890,588 $ 1,168,125
22,600 Newfield Exploration Company+ 721,026 744,388
12,000 Stone Energy Corporation+ 613,083 610,500
50,000 UTI Energy Corporation+ 786,355 971,875
------------ ------------
$ 3,011,052 $ 3,494,888
RAILROAD TRANSPORTATION - 0.60%
16,000 Kansas City South Industries $ 780,835 $ 743,000
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.68%
65,000 Weatherford International+ $ 1,666,082 $ 2,080,000
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.87%
20,000 E Trade Group Incorporated+ $ 448,925 $ 470,000
50,000 Knight/Trimark Group Incorporated+ 1,463,439 1,481,250
30,000 T Rowe Price & Associates 1,069,688 823,125
35,000 Waddle & Reed Financial 722,531 776,563
------------ ------------
$ 3,704,583 $ 3,550,938
WHOLESALE TRADE-DURABLE GOODS - 0.98%
20,000 Chemdex Corporation+ $ 580,936 $ 616,250
15,000 Martin Marietta Materials Incorporated 776,607 599,063
------------ ------------
$ 1,357,543 $1,215,313
</TABLE>
112
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999 Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCK (CONTINUED)
WHOLESALE TRADE-NONDURABLE GOODS - 0.41%
28,000 U.S. Foodservice Corporation+ $ 610,065 $ 504,000
------------ ------------
TOTAL COMMON STOCKS $ 99,958,672 $118,000,172
</TABLE>
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 8.11%
REPURCHASE AGREEMENTS
$ 865,000 Goldman Sachs Pooled Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.28 10/01/99 $ 865,000
873,000 HSBC Securities Incorporated Repurchase Agreement -
102% Collateralized by U.S. Government Securities 5.28 10/01/99 873,000
5,980,000 JP Morgan Securities Incorporated Repurchase Agreement
- 102% Collateralized by U.S. Government Securities 5.25 10/01/99 5,980,000
2,306,000 Morgan Stanley & Company Repurchase Agreement - 102%
Collateralized by U.S. Government Securities 5.20 10/01/99 2,306,000
------------
TOTAL SHORT-TERM INSTRUMENTS $ 10,024,000
(Cost $10,024,000)
</TABLE>
113
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $109,982,672)* (Notes 1 and 3) 103.60% $128,024,172
Other Asset and Liabilities, Net (3.60) (4,444,029)
------ ------------
TOTAL NET ASSETS 100.00% $123,580,143
====== ============
- ------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES
* COST FOR FEDERAL INCOME TAX PURPOSES IS $110,469,745 AND NET
UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $20,857,147
Gross Unrealized Depreciation (3,312,720)
-----------
NET UNREALIZED APPRECIATION $17,554,427
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
114
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
115
<PAGE>
Equity Funds STATEMENT OF ASSETS AND LIABILITIES - SEPTEMBER 30, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED
EQUITY
BALANCED INCOME
FUND FUND
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $ 62,934,308 $178,653,477
Cash 6,326 6,337
Cash denominated in foreign currencies
(cost $1,956,389) 0 0
RECEIVABLES:
Cash collateral for securities loaned 0 23,937,713
Dividends and interest 370,390 803,992
Recoverable foreign withholding taxes 0 0
Fund shares sold 49,719 5,693
Investment securities sold 2,024,544 1,728,192
Variation margin on futures contracts 0 0
Organization expenses, net of
amortization 17,530 1,974
Prepaid expenses 0 0
Other receivables 0 0
TOTAL ASSETS 65,402,817 205,137,378
LIABILITIES
Payables:
Cash collateral for securities loaned 0 23,937,713
Investment securities purchased 1,587,838 1,706,213
Distribution to shareholders 21,893 53,796
Fund shares redeemed 276,978 187,446
Loss on foreign currency forward
contracts 0 0
Due to distributor (Note 2) 8,699 125,131
Due to adviser (Note 2) 58,132 172,711
Accrued expenses 91,245 126,615
Other payables 1,732 7,866
TOTAL LIABILITIES 2,046,517 26,317,491
TOTAL NET ASSETS $ 63,356,300 $178,819,887
NET ASSETS CONSIST OF:
Paid-in capital $ 51,163,860 $146,329,577
Undistributed net investment income
(loss) $ (103) $ (23)
Undistributed net realized gain (loss)
on investments and foreign currency
transactions 7,212,435 7,653,129
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 4,980,108 24,837,204
Net unrealized appreciation
(depreciation) of futures 0 0
TOTAL NET ASSETS $ 63,356,300 $178,819,887
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $ 25,548,699 $129,092,828
Shares outstanding - Class A 2,308,979 8,417,380
Net asset value per share - Class A $ 11.06 $ 15.34
Maximum offering price per share -
Class A $ 11.73(1) $ 16.28(1)
Net assets - Class B $ 10,323,831 $ 49,727,059
Shares outstanding - Class B 1,031,849 3,461,188
Net asset value and offering price per
share - Class B $ 10.01 $ 14.37
Net assets - Class C N/A N/A
Shares outstanding - Class C N/A N/A
Net asset value and offering price per
share - Class C N/A N/A
Net assets - Class O N/A N/A
Shares outstanding - Class O N/A N/A
Net asset value and offering price per
share - Class O N/A N/A
Net assets - Institutional Class $ 27,483,770 N/A
Shares outstanding - Institutional Class 2,491,892 N/A
Net asset value and offering price per
share - Institutional Class $ 11.03 N/A
INVESTMENT AT COST (NOTE 3) $ 57,954,200 $153,816,273
- --------------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
116
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES - SEPTEMBER 30, 1999 Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY EQUITY INTERNATIONAL
INDEX VALUE GROWTH EQUITY SMALL CAP
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $677,009,629 $213,114,568 $391,293,415 $ 70,853,728 $ 57,329,992
Cash 5,023 6,565 6,456 4,066,787 6,027
Cash denominated in foreign currencies
(cost $1,956,389) 0 0 0 1,970,528 0
RECEIVABLES:
Cash collateral for securities loaned 0 27,749,224 65,123,883 0 7,948,102
Dividends and interest 736,555 364,280 377,555 101,320 6,766
Recoverable foreign withholding taxes 0 0 0 28,427 0
Fund shares sold 1,724,298 68,066 135,061 178,410 1,816,757
Investment securities sold 429,658 10,763,661 2,805,790 693,908 1,645,982
Variation margin on futures contracts 219,600 0 0 0 0
Organization expenses, net of
amortization 0 16,487 1,541 23,651 20,082
Prepaid expenses 37,307 14,146 0 75,066 0
Other receivables 0 0 0 0 18,567
TOTAL ASSETS 680,162,070 252,096,997 459,743,701 77,991,825 68,792,275
LIABILITIES
Payables:
Cash collateral for securities loaned 0 27,749,224 65,123,883 0 7,948,102
Investment securities purchased 1,073,049 8,339,873 0 3,195,187 1,445,755
Distribution to shareholders 6,882 169,011 0 0 0
Fund shares redeemed 433,029 1,118,891 311,162 90,109 77,953
Loss on foreign currency forward
contracts 0 0 0 1,124 0
Due to distributor (Note 2) 65,132 45,460 202,712 187,436 18,891
Due to adviser (Note 2) 377,250 194,225 353,995 106,567 46,324
Accrued expenses 164,258 156,708 120,527 48,376 141,606
Other payables 0 0 403 0 0
TOTAL LIABILITIES 2,119,600 37,773,392 66,112,682 3,628,799 9,678,631
TOTAL NET ASSETS $678,042,470 $214,323,605 $393,631,019 $ 74,363,026 $ 59,113,644
NET ASSETS CONSIST OF:
Paid-in capital $236,764,225 $150,171,188 $254,950,968 $ 60,221,346 $ 50,930,724
Undistributed net investment income
(loss) 0 0 (270,938) 657,314 (559,288)
Undistributed net realized gain (loss)
on investments and foreign currency
transactions 26,036,831 31,066,767 50,282,526 (613,542) 4,249,999
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 416,044,989 33,085,650 88,668,463 14,097,908 4,492,209
Net unrealized appreciation
(depreciation) of futures (803,575) 0 0 0 0
TOTAL NET ASSETS $678,042,470 $214,323,605 $393,631,019 $ 74,363,026 $ 59,113,644
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $611,111,458 $ 31,764,476 $315,133,892 $ 35,779,475 $ 16,661,508
Shares outstanding - Class A 7,821,206 2,228,532 13,794,103 2,816,649 635,289
Net asset value per share - Class A $ 78.14 $ 14.25 $ 22.85 $ 12.70 $ 26.23
Maximum offering price per share -
Class A $ 82.91(1) $ 15.12(1) $ 24.24(1) $ 13.47(1) $ 27.83(1)
Net assets - Class B $ 66,930,764 $ 58,489,674 $ 60,909,361 $ 37,910,665 $ 18,718,128
Shares outstanding - Class B 855,983 5,008,244 3,781,751 3,023,801 727,625
Net asset value and offering price per
share - Class B $ 78.19 $ 11.67 $ 16.11 $ 12.54 $ 25.72
Net assets - Class C N/A $ 872,537 N/A $ 672,886 $ 1,710,946
Shares outstanding - Class C N/A 74,736 N/A 53,674 66,539
Net asset value and offering price per
share - Class C N/A $ 11.67 N/A $ 12.54 $ 25.71
Net assets - Class O $ 248 N/A N/A N/A N/A
Shares outstanding - Class O $ 3 N/A N/A N/A N/A
Net asset value and offering price per
share - Class O $ 78.73 N/A N/A N/A N/A
Net assets - Institutional Class N/A $123,196,918 $ 17,587,766 N/A $ 22,023,062
Shares outstanding - Institutional Class N/A 8,648,001 656,366 N/A 826,221
Net asset value and offering price per
share - Institutional Class N/A $ 14.25 $ 26.80 N/A $ 26.66
INVESTMENT AT COST (NOTE 3) $260,964,640 $180,028,918 $302,624,952 $ 56,712,403 $ 52,837,783
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
STRATEGIC
GROWTH
FUND
<S> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $128,024,172
Cash 6,328
Cash denominated in foreign currencies
(cost $1,956,389) 0
RECEIVABLES:
Cash collateral for securities loaned 21,878,280
Dividends and interest 52,923
Recoverable foreign withholding taxes 0
Fund shares sold 552,057
Investment securities sold 2,232,845
Variation margin on futures contracts 0
Organization expenses, net of
amortization 0
Prepaid expenses 20,452
Other receivables 10,996
TOTAL ASSETS 152,778,053
LIABILITIES
Payables:
Cash collateral for securities loaned 21,878,280
Investment securities purchased 6,537,815
Distribution to shareholders 0
Fund shares redeemed 441,037
Loss on foreign currency forward
contracts 0
Due to distributor (Note 2) 23,460
Due to adviser (Note 2) 130,593
Accrued expenses 186,725
Other payables 0
TOTAL LIABILITIES 29,197,910
TOTAL NET ASSETS $123,580,143
NET ASSETS CONSIST OF:
Paid-in capital $107,620,882
Undistributed net investment income
(loss) (903,783)
Undistributed net realized gain (loss)
on investments and foreign currency
transactions (1,178,456)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 18,041,500
Net unrealized appreciation
(depreciation) of futures 0
TOTAL NET ASSETS $123,580,143
COMPUTATION OF NET ASSET VALUE AND OFFER
Net assets - Class A $ 90,700,082
Shares outstanding - Class A 3,956,760
Net asset value per share - Class A $ 22.92
Maximum offering price per share -
Class A $ 24.32(1)
Net assets - Class B $ 20,229,610
Shares outstanding - Class B 732,697
Net asset value and offering price per
share - Class B $ 27.61
Net assets - Class C $ 12,650,451
Shares outstanding - Class C 458,676
Net asset value and offering price per
share - Class C $ 27.58
Net assets - Class O N/A
Shares outstanding - Class O N/A
Net asset value and offering price per
share - Class O N/A
Net assets - Institutional Class N/A
Shares outstanding - Institutional Class N/A
Net asset value and offering price per
share - Institutional Class N/A
INVESTMENT AT COST (NOTE 3) $109,982,672
- -----------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
117
<PAGE>
STATEMENTS OF OPERATIONS - FOR THE YEAR
Equity Funds ENDED SEPTEMBER 30 ,1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED
BALANCED EQUITY INCOME
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax
withholding of $81,700 for the
International Equity Fund) $ 910,745 $ 5,738,306
Interest 1,888,031 937,204
Securities lending income 6,682 4,187
TOTAL INVESTMENT INCOME 2,805,458 6,679,697
EXPENSES (NOTE 2)
Advisory fees 450,447 1,084,369
Administration fees 74,633 215,573
Custody fees 12,537 47,219
Shareholder servicing fees 187,685 650,621
Portfolio accounting fees 70,282 104,873
Transfer agency fees 77,505 332,899
Distribution fees 83,655 414,231
Organization costs 9,088 2,607
Legal and audit fees 49,624 70,536
Registration fees 48,986 46,172
Directors' fees 3,474 1,206
Shareholder reports 57,940 97,709
Other 6,032 12,092
TOTAL EXPENSES 1,131,888 3,080,107
Less:
Waived fees and reimbursed expenses (139,592) (104,331)
NET EXPENSES 992,296 2,975,776
NET INVESTMENT INCOME (LOSS) 1,813,162 3,703,921
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) from:
Investments 6,895,905 (815,308)
Foreign currency transactions 0 0
Net change in unrealized appreciation
(depreciation) of:
Investments (5,433,726) 11,770,734
Translation of other assets and
liabilities in foreign currencies 0 0
Futures 0 0
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS AND FUTURES 1,462,179 10,955,426
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $3,275,341 $ 14,659,347
- ----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
118
<PAGE>
STATEMENTS OF OPERATIONS - FOR THE YEAR
ENDED SEPTEMBER 30 ,1999 Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL STRATEGIC
EQUITY INDEX EQUITY VALUE GROWTH EQUITY SMALL CAP GROWTH
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax
withholding of $81,700 for the
International Equity Fund) $ 8,764,747 $ 5,281,417 $ 4,404,840 $ 881,295 $ 108,486 $ 335,138
Interest 373,576 250,052 400,490 135,355 181,811 277,090
Securities lending income 0 6,730 9,065 0 10,213 17,797
TOTAL INVESTMENT INCOME 9,138,323 5,538,199 4,814,395 1,016,650 300,510 630,025
EXPENSES (NOTE 2)
Advisory fees 1,647,315 1,375,903 1,923,826 641,910 453,180 656,359
Administration fees 680,944 270,800 424,923 74,139 69,322 130,943
Custody fees 0 45,955 69,885 89,998 43,613 52,922
Shareholder servicing fees 1,647,314 687,951 1,246,594 160,478 188,826 328,180
Portfolio accounting fees 193,283 116,533 145,189 67,193 70,258 87,752
Transfer agency fees 905,429 264,371 609,982 97,993 83,747 236,693
Distribution fees 319,991 551,498 421,534 296,017 135,334 323,543
Organization costs 0 8,522 2,708 19,998 11,207 0
Legal and audit fees 69,507 94,651 111,172 61,999 5,028 50,033
Registration fees 20,324 110,359 72,441 40,000 61,275 38,510
Directors' fees 2,422 186 427 4,599 398 1,210
Shareholder reports 109,774 172,944 112,698 29,999 53,779 142,297
Other 43,832 37,637 14,588 11,501 1,660 7,701
TOTAL EXPENSES 5,640,135 3,737,310 5,155,967 1,595,824 1,177,627 2,056,143
Less:
Waived fees and reimbursed expenses (644,006) (220,311) (141,608) (238,965) (303,695) (131,911)
NET EXPENSES 4,996,129 3,516,999 5,014,359 1,356,859 873,932 1,924,232
NET INVESTMENT INCOME (LOSS) 4,142,194 2,021,200 (199,964) (340,209) (573,422) (1,294,207)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) from:
Investments 30,876,204 29,851,190 51,072,520 1,514,412 10,238,590 11,181,065
Foreign currency transactions 0 0 0 (125,360) 0 0
Net change in unrealized appreciation
(depreciation) of:
Investments 107,155,799 (12,549,932) 54,639,066 17,337,993 26,628,803 33,553,590
Translation of other assets and
liabilities in foreign currencies 0 0 0 (48,109) 0 0
Futures (721,825) 0 0 0 0 0
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS AND FUTURES 137,310,178 17,301,258 105,711,586 18,678,936 36,867,393 44,734,655
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 141,452,372 $ 19,322,458 $ 105,511,622 $ 18,338,727 $ 36,293,971 $ 43,440,448
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
119
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND
----------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 1,813,162 $ 1,194,336 $ 2,754,974
Net realized gain (loss) on sale of
investments and foreign currency
transactions 6,895,905 1,325,963 12,381,862
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies (5,433,726) (8,868,973) 7,449,221
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,275,341 (6,348,674) 22,586,057
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (744,122) (446,512) (995,417)
CLASS B (208,611) (104,689) (87,737)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (860,532) (643,135) (1,671,820)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (3,135,558) 0 (3,617,920)
CLASS B (1,117,502) 0 (567,992)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (3,675,240) 0 (5,890,499)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 1,519,746 1,780,827 5,461,758
Reinvestment of dividends - Class A 4,006,305 428,485 4,463,706
Cost of shares redeemed - Class A (8,247,956) (3,594,469) (10,215,448)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (2,721,905) (1,385,157) (289,984)
Proceeds from shares sold - Class B 1,557,640 2,843,163 8,275,611
Reinvestment of dividends - Class B 1,360,787 83,450 614,957
Cost of shares redeemed - Class B (2,072,826) (669,280) (357,160)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 845,601 2,257,333 8,533,408
Proceeds from shares sold - Class C N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A
Proceeds from shares sold -
Institutional Class 4,113,186 2,656,634 6,665,487
Reinvestment of dividends -
Institutional Class 4,571,616 634,353 7,260,006
Cost of shares redeemed -
Institutional Class (14,808,347) (14,135,771) (23,971,016)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (6,123,545) (10,844,784) (10,045,523)
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (14,466,073) (17,515,618) 7,952,573
NET ASSETS:
Beginning net assets 77,822,373 95,337,991 87,385,418
ENDING NET ASSETS $63,356,300 $77,822,373 $95,337,991
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (103) 0 0
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
The accompanying notes are an integral part of these financial statements.
120
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND EQUITY INDEX
---------------------------------------------------------- ----------------
FOR THE FOR THE SIX FOR THE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998 SEPT. 30, 1999
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 3,703,921 $ 2,116,192 $ 3,656,312 $ 4,142,194
Net realized gain (loss) on sale of
investments and foreign currency
transactions (815,308) 10,658,254 26,201,980 30,876,204
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 11,770,734 (49,736,820) 47,022,615 107,155,799
Net unrealized appreciation
(depreciation) of futures 0 0 0 (721,825)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 14,659,347 (36,962,374) 76,880,907 141,452,372
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (2,972,382) (1,747,341) (3,113,133) (4,167,469)
CLASS B (731,562) (368,851) (543,179) 0
CLASS C N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A
CLASS O N/A N/A N/A 0
From net realized gain on sale of
investments
CLASS A (16,190,809) 0 (7,465,528) (26,108,859)
CLASS B (5,969,417) 0 (2,354,505) (1,095,863)
CLASS C N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A
CLASS O N/A N/A N/A 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 8,084,400 8,850,203 64,556,264 69,401,290
Reinvestment of dividends - Class A 19,389,690 1,453,903 10,009,274 31,362,005
Cost of shares redeemed - Class A (61,076,727) (34,097,957) (55,531,440) (115,068,851)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (33,602,637) (23,793,851) 19,034,098 (14,305,556)
Proceeds from shares sold - Class B 1,640,307 5,932,196 30,400,244 49,781,286
Reinvestment of dividends - Class B 6,721,310 267,182 2,742,890 1,083,255
Cost of shares redeemed - Class B (16,873,929) (6,463,251) (7,439,195) (4,874,045)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (8,512,312) (263,873) 25,703,939 45,990,496
Proceeds from shares sold - Class C N/A N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A 250
Reinvestment of dividends - Class O N/A N/A N/A 0
Cost of shares redeemed - Class O N/A N/A N/A 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A 250
INCREASE (DECREASE) IN NET ASSETS (53,319,772) (63,136,290) 108,142,599 141,765,371
NET ASSETS:
Beginning net assets 232,139,659 295,275,949 187,133,350 536,277,099
ENDING NET ASSETS $178,819,887 $232,139,659 $295,275,949 $678,042,470
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (23) 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
EQUITY INDEX
-------------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 2,692,064 $ 3,987,574
Net realized gain (loss) on sale of
investments and foreign currency
transactions 11,326,049 20,385,976
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies (56,175,420) 162,925,340
Net unrealized appreciation
(depreciation) of futures (207,200) 125,450
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (42,364,507) 187,424,340
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (2,683,558) (3,987,950)
CLASS B (8,506) 0(1)
CLASS C N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS O N/A N/A
From net realized gain on sale of
investments
CLASS A 0 (12,945,620)
CLASS B 0 0(1)
CLASS C N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS O N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 34,673,947 72,404,299
Reinvestment of dividends - Class A 2,520,476 16,700,188
Cost of shares redeemed - Class A (53,713,482) (87,341,942)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (16,519,059) 1,762,545
Proceeds from shares sold - Class B 16,483,152 3,707,259(1)
Reinvestment of dividends - Class B 1,719 0(1)
Cost of shares redeemed - Class B (1,324,968) (6,364)(1)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 15,159,903 3,700,895(1)
Proceeds from shares sold - Class C N/A N/A
Reinvestment of dividends - Class C N/A N/A
Cost of shares redeemed - Class C N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A
Proceeds from shares sold - Class O N/A N/A
Reinvestment of dividends - Class O N/A N/A
Cost of shares redeemed - Class O N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A
INCREASE (DECREASE) IN NET ASSETS (46,415,727) 175,954,210
NET ASSETS:
Beginning net assets 582,692,826 406,738,616
ENDING NET ASSETS $536,277,099 $582,692,826
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (376) (376)
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
The accompanying notes are an integral part of these financial statements.
121
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY VALUE FUND
----------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 2,021,200 $ 1,622,343 $ 2,994,304
Net realized gain (loss) on sale of
investments and foreign currency
transactions 29,851,190 (1,310,567) 43,722,211
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies (12,549,932) (63,146,441) 49,101,105
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,322,458 (62,834,665) 95,817,620
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (347,194) (273,664) (393,180)
CLASS B (1,539,520) (140,370) (144,346)
CLASS C (135,267) (1,933)(1) N/A
INSTITUTIONAL CLASS (2,142) (1,206,376) (2,611,274)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (3,538,387) 0 (4,313,021)
CLASS B (13,698,449) 0 (4,087,973)
CLASS C (6,065,329) 0(1) N/A
INSTITUTIONAL CLASS (109,507) 0 (22,663,930)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 2,964,282 8,134,009 29,437,145
Reinvestment of dividends - Class A 3,820,382 213,784 4,317,886
Cost of shares redeemed - Class A (17,801,986) (7,270,482) (9,521,581)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (11,017,322) 1,077,311 24,233,450
Proceeds from shares sold - Class B 5,260,255 22,457,036 62,552,854
Reinvestment of dividends - Class B 6,221,027 79,373 4,158,508
Cost of shares redeemed - Class B (24,273,622) (6,080,120) (2,617,789)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (12,792,340) 16,456,289 64,093,573
Proceeds from shares sold - Class C 493,290 1,535,006(1) N/A
Reinvestment of dividends - Class C 95,492 134(1) N/A
Cost of shares redeemed - Class C (920,285) (72,905)(1) N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (331,503) 1,462,235(1) N/A
Proceeds from shares sold -
Institutional Class 12,846,565 9,738,442 22,877,852
Reinvestment of dividends -
Institutional Class 12,753,772 516,248 20,970,848
Cost of shares redeemed -
Institutional Class (65,899,760) (33,188,018) (57,008,149)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (40,299,423) (22,933,328) (13,159,449)
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (70,553,926) (68,394,501) 136,771,470
NET ASSETS:
Beginning net assets 284,877,531 353,272,032 216,500,562
ENDING NET ASSETS $214,323,605 $284,877,531 $353,272,032
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) 0 0 0
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
122
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND
----------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (199,964) $ 697,433 $ 1,803,757
Net realized gain (loss) on sale of
investments and foreign currency
transactions 51,072,520 14,581,218 88,713,098
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 54,639,066 (43,668,473) 23,366,043
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 105,511,622 (28,389,822) 113,882,898
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (132,579) (736,408) (1,725,390)
CLASS B 0 0 (6,702)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (19,031) (39,683) (134,752)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (47,058,207) 0 (46,453,276)
CLASS B (7,706,288) 0 (6,167,386)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (2,310,431) 0 (3,047,106)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 24,458,931 13,601,157 85,211,489
Reinvestment of dividends - Class A 46,699,469 907,114 47,015,949
Cost of shares redeemed - Class A (101,716,364) (50,586,473) (99,180,720)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (30,557,964) (36,078,202) 33,046,718
Proceeds from shares sold - Class B 10,008,441 4,861,311 25,116,094
Reinvestment of dividends - Class B 7,535,252 383 6,089,528
Cost of shares redeemed - Class B (11,472,924) (5,006,990) (5,920,292)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 6,070,769 (145,296) 25,285,330
Proceeds from shares sold - Class C N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A
Proceeds from shares sold -
Institutional Class 4,328,154 804,633 4,254,007
Reinvestment of dividends -
Institutional Class 1,358,567 28,818 1,899,742
Cost of shares redeemed -
Institutional Class (4,290,259) (3,493,596) (10,544,641)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 1,396,462 (2,660,145) (4,390,892)
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS 25,194,353 (68,049,556) 110,289,442
NET ASSETS:
Beginning net assets 368,436,666 436,486,222 326,196,780
ENDING NET ASSETS $393,631,019 $368,436,666 $436,486,222
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (433,260) (81,686) (3,028)
- -------------------------------------------------------------------------------------------------------
<CAPTION>
INTERNATIONAL EQUITY FUND
----------------------------------------------------------------
FROM SEPT. 24, 1997
FOR THE FOR THE SIX (COMMENCEMENT OF
YEAR ENDED MONTHS ENDED OPERATIONS) TO
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (340,209) $ (83,770) $ (4,877)
Net realized gain (loss) on sale of
investments and foreign currency
transactions 1,389,052 (566,667) (692,410)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 17,289,884 (9,561,257) 6,369,281
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,338,727 (10,211,694) 5,671,994
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A 0 0 (3,770)
CLASS B 0 0 0
CLASS C 0 0(1) N/A
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0 0
CLASS B 0 0 0
CLASS C 0 0(1) N/A
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 13,225,267 4,983,799 25,718,301
Reinvestment of dividends - Class A 0 0 2,483
Cost of shares redeemed - Class A (9,375,889) (3,434,398) (1,507,284)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 3,849,378 1,549,401 24,213,500
Proceeds from shares sold - Class B 4,426,553 4,873,415 31,759,206
Reinvestment of dividends - Class B 0 0 0
Cost of shares redeemed - Class B (6,742,516) (2,128,140) (1,867,827)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (2,315,963) 2,745,275 29,891,379
Proceeds from shares sold - Class C 494,318 369,928(1) N/A
Reinvestment of dividends - Class C 0 0(1) N/A
Cost of shares redeemed - Class C (212,781) (16,666)(1) N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C 281,537 353,262(1) N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS 20,153,679 (5,563,756) 59,773,103
NET ASSETS:
Beginning net assets 54,209,347 59,773,103 0
ENDING NET ASSETS $74,363,026 $54,209,347 $59,773,103
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (432,626) (92,417) (8,647)
- -------------------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
123
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP FUND
--------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 MARCH 31, 1998 (1)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (573,422) $ (267,578) $ (122,337)
Net realized gain (loss) on sale of
investments and foreign currency
transactions 10,238,590 (10,366,907) 10,463,062
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 26,628,803 (22,514,409) 12,044,947
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 36,293,971 (33,148,894) 22,385,672
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A 0 0 (1,626)
CLASS B 0 0 0
CLASS C 0 0 0(3)
INSTITUTIONAL CLASS 0 0 (24,243)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (859,083) 0 (827,508)
CLASS B (1,058,347) 0 (782,027)
CLASS C (111,106) 0 0(3)
INSTITUTIONAL CLASS (5,153,962) 0 (4,562,220)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 24,654,196 3,220,859 15,154,524
Reinvestment of dividends - Class A 813,764 211 803,796
Cost of shares redeemed - Class A (24,675,057) (2,987,647) (5,282,878)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 792,903 233,423 10,675,442
Proceeds from shares sold - Class B 2,924,447 4,724,111 12,825,169
Reinvestment of dividends - Class B 1,049,459 0 771,233
Cost of shares redeemed - Class B (4,321,073) (1,390,665) (1,640,518)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (347,167) 3,333,446 11,955,884
Proceeds from shares sold - Class C 310,420 370,791 2,366,421(3)
Reinvestment of dividends - Class C 58,548 0 8,555(3)
Cost of shares redeemed - Class C (639,257) (777,530) (132,433)(3)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (270,289) (406,739) 2,242,543(3)
Proceeds from shares sold -
Institutional Class 28,796,899 19,609,948 53,985,405
Reinvestment of dividends -
Institutional Class 4,663,904 0 4,269,897
Cost of shares redeemed -
Institutional Class (85,468,403)(4) (20,068,534) (21,247,255)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (52,007,600) (458,586) 37,008,047
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (22,720,680) (30,447,350) 78,069,964
NET ASSETS:
Beginning net assets 81,834,324 112,281,674 34,211,710
ENDING NET ASSETS $59,113,644 $81,834,324 $112,281,674
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (559,288) (267,578) 0
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $3,163,650 FOR CLASS A SHARES, AND
$2,277,136 FOR CLASS C SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS SMALL CAP STRATEGY FUND.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $37,967,719 FOR CLASS A SHARES, AND
$22,688,669 FOR CLASS B SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS STRATEGIC GROWTH FUND.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(4) "COST OF SHARES REDEEMED" INCLUDES $777,027 FOR INSTITUTIONAL CLASS SHARES
AS A RESULT OF THE CONVERSION OF PART OF THE INSTITUTIONAL SHARES INTO A
COLLECTIVE FUND.
The accompanying notes are an integral part of these financial statements.
124
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND
------------------------------------------------------------
FOR THE FOR THE NINE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPT. 30, 1999 SEPT. 30, 1998 DEC 31, 1997 (2)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $(1,294,207) $(1,571,853) $(1,976,702)
Net realized gain (loss) on sale of
investments and foreign currency
transactions 11,181,065 (6,336,849) 27,263,706
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 33,553,590 (17,512,709) (4,721,950)
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 43,440,448 (25,421,411) 20,565,054
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A 0 0 0
CLASS B 0 0 0(3)
CLASS C 0 0 0
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0 (32,094,549)
CLASS B 0 0 0(3)
CLASS C 0 0 (12,310,107)
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 191,936,069 105,704,155 227,568,030
Reinvestment of dividends - Class A 0 0 24,933,472
Cost of shares redeemed - Class A (227,163,417) (141,270,390) (219,015,611)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (35,227,348) (35,566,235) 33,485,891
Proceeds from shares sold - Class B 3,681,435 6,613,663 23,193,050(3)
Reinvestment of dividends - Class B 0 0 0(3)
Cost of shares redeemed - Class B (10,571,169) (5,513,461) (422,099)(3)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (6,889,734) 1,100,202 22,770,951(3)
Proceeds from shares sold - Class C 2,492,467 24,644,890 221,398,643
Reinvestment of dividends - Class C 0 0 6,423,494
Cost of shares redeemed - Class C (12,467,842) (45,817,020) (233,237,347)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (9,975,375) (21,172,130) (5,415,210)
Proceeds from shares sold -
Institutional Class N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (8,652,009) (81,059,574) 27,002,030
NET ASSETS:
Beginning net assets 132,232,152 213,291,726 186,289,696
ENDING NET ASSETS $123,580,143 $132,232,152 $213,291,726
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT
INCOME (LOSS) (2,870,007) (1,571,853) 0
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $37,967,719 FOR CLASS A SHARES, AND
$22,688,669 FOR CLASS B SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS STRATEGIC GROWTH FUND.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(4) "COST OF SHARES REDEEMED" INCLUDES $777,027 FOR INSTITUTIONAL CLASS SHARES
AS A RESULT OF THE CONVERSION OF PART OF THE INSTITUTIONAL SHARES INTO A
COLLECTIVE FUND.
The accompanying notes are an integral part of these financial statements.
125
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1)
CLASS A
----------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 (2)
<S> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.23 $13.28
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.30 0.17
Net realized and unrealized gain (loss) on investments 0.12 (1.05)
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.42 (0.88)
LESS DISTRIBUTIONS:
Dividends from net investment income (0.30) (0.17)
Distributions from net realized gain (1.29) 0.00
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (1.59) (0.17)
--------- ---------
NET ASSET VALUE, END OF PERIOD $11.06 $12.23
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 3.13% (6.63)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $25,549 $30,833
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.27% 1.28%
Ratio of net investment income (loss) to average net
assets 2.47% 2.66%
Portfolio turnover 72% 32%
- ------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 1.42% 1.33%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 2.32% 2.61%
- ------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
126
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1) (CONT.) BALANCED FUND (1) (CONT.)
CLASS A (CONT.) CLASS B
------------------------------------------- -------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
1998 1997 (3) 1996 1995 1999 1998 (2)
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.01 $11.46 $11.84 $11.67 $11.06 $12.00
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.38 0.19 0.36 0.46** 0.20 0.11
Net realized and
unrealized gain (loss)
on investments 2.76 0.74 0.89 0.68** 0.12 (0.94)
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 3.14 0.93 1.25 1.14 0.32 (0.83)
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.38) (0.19) (0.35) (0.47) (0.20) (0.11)
Distributions from net
realized gain (1.49) (0.19) (1.28) (0.50) (1.17) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (1.87) (0.38) (1.63) (0.97) (1.37) (0.11)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $13.28 $12.01 $11.46 $11.84 $10.01 $11.06
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 27.49% 8.15% 10.51% 10.62% 2.54% (6.92)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $34,952 $31,632 $32,640 $89,034 $10,324 $10,516
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.12% 1.05% 1.31% 1.03% 1.93% 1.93%
Ratio of net investment
income (loss) to average
net assets 2.91% 3.20% 2.98% 4.05% 1.81% 2.02%
Portfolio turnover 67% 43% 131% 90% 72% 32%
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.40% 1.30% 1.48% 1.05% 2.33% 2.09%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.63% 2.95% 2.81% 4.03% 1.41% 1.86%
- ---------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
127
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1) (CONT.)
CLASS B (CONT.)
---------------------------------
SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30,
1998 1997 (3) 1996 (4)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.79 $10.24 $10.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.19 0.08 0.00
Net realized and unrealized gain (loss) on
investments 2.55 0.72 0.24
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 2.74 0.80 0.24
LESS DISTRIBUTIONS:
Dividends from net investment income (0.19) (0.08) 0.00
Distributions from net realized gain (1.34) (0.17) 0.00
Tax return of capital 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (1.53) (0.25) 0.00
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $12.00 $10.79 $10.24
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED)* 26.64% 7.84% 2.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $9,145 $297 $2
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.82% 1.70% 0.00%
Ratio of net investment income (loss) to average
net assets 2.15% 2.48% 3.09%
Portfolio turnover 67% 43% 131%
- --------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 2.29% 7.85% 0.66%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 1.68% (3.67)% 2.43%
- --------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
128
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1) (CONT.)
INSTITUTIONAL CLASS
------------------------------------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 (2) 1998 1997 (3) 1996 (5)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.19 $13.26 $12.00 $11.45 $11.84
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.31 0.19 0.40 0.21 0.40
Net realized and
unrealized gain (loss)
on investments 0.12 (1.07) 2.74 0.74 0.89
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.43 (0.88) 3.14 0.95 1.29
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.30) (0.19) (0.40) (0.21) (0.40)
Distributions from net
realized gain (1.29) 0.00 (1.48) (0.19) (1.28)
Tax return of capital 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (1.59) (0.19) (1.88) (0.40) (1.68)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $11.03 $12.19 $13.26 $12.00 $11.45
========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 3.30% (6.66)% 27.67% 8.27% 10.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $27,484 $36,473 $51,241 $55,456 $72,327
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.17% 1.18% 0.99% 0.95% 0.94%
Ratio of net investment
income (loss) to average
net assets 2.57% 2.76% 3.05% 3.30% 3.29%
Portfolio turnover 72% 32% 67% 43% 131%
- ------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.32% 1.23% 1.21% 1.18% 1.11%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.42% 2.71% 2.83% 3.07% 3.12%
- ------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
129
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME
FUND
CLASS A
--------------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 (1)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.39 $18.97
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.32 0.16
Net realized and unrealized gain (loss) on investments 0.58 (2.58)
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.90 (2.42)
LESS DISTRIBUTIONS:
Dividends from net investment income (0.31) (0.16)
Distributions from net realized gain (1.64) 0.00
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (1.95) (0.16)
--------- ---------
NET ASSET VALUE, END OF PERIOD $15.34 $16.39
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 5.58% (12.78)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $129,093 $170,744
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.18% 1.17%
Ratio of net investment income (loss) to average net
assets 1.90% 1.74%
Portfolio turnover 33% 29%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 1.22% 1.17%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 1.86% 1.74%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
130
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND (CONT.)
CLASS A (CONT.)
-------------------------------------------------------
SIX MONTHS NINE MONTHS
YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1998 1997 (2) 1996 (3) 1995 1994
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $14.52 $14.73 $13.34 $10.76 $11.08
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.28 0.14 0.25 0.35 0.33
Net realized and
unrealized gain (loss)
on investments 5.15 0.64 1.39 2.86 (0.32)
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 5.43 0.78 1.64 3.21 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.28) (0.14) (0.25) (0.35) (0.33)
Distributions from net
realized gain (0.70) (0.85) 0.00 (0.28) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.98) (0.99) (0.25) (0.63) (0.33)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $18.97 $14.52 $14.73 $13.34 $10.76
========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 38.15% 5.25% 12.35% 30.17% 0.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $223,540 $154,502 $134,648 $79,977 $45,178
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.12% 1.10% 1.10% 1.10% 1.06%
Ratio of net investment
income (loss) to average
net assets 1.67% 1.91% 2.57% 3.02% 3.16%
Portfolio turnover 59% 33% 43% 70% 62%
- -------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.19% 1.17% 1.26% 1.31% 1.34%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 1.60% 1.84% 2.41% 2.81% 2.88%
- -------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
131
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME
FUND (CONT.)
CLASS B
--------------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 (1)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.35 $17.77
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.19 0.09
Net realized and unrealized gain (loss) on investments 0.56 (2.42)
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.75 (2.33)
LESS DISTRIBUTIONS:
Dividends from net investment income (0.19) (0.09)
Distributions from net realized gain (1.54) 0.00
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (1.73) (0.09)
--------- ---------
NET ASSET VALUE, END OF PERIOD $14.37 $15.35
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 4.89% (13.12)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $49,727 $61,396
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.87% 1.86%
Ratio of net investment income (loss) to average net
assets 1.21% 1.07%
Portfolio turnover 33% 29%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 1.95% 1.86%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 1.13% 1.07%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
132
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND (CONT.) EQUITY INDEX FUND
CLASS B (CONT.) CLASS A
-------------------------------------------- ---------------------
SIX MONTHS NINE MONTHS SIX MONTHS
YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, DEC. 31, SEPT. 30, SEPT. 30,
1998 1997 (2) 1996 (3) 1995 (4) 1999 1998 (1)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $13.60 $13.79 $12.49 $10.00 $64.93 $70.32
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.15 0.08 0.17 0.20 0.53 0.33
Net realized and
unrealized gain (loss)
on investments 4.82 0.60 1.30 2.75 16.54 (5.39)
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 4.97 0.68 1.47 2.95 17.07 (5.06)
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.15) (0.08) (0.17) (0.20) (0.53) (0.33)
Distributions from net
realized gain (0.65) (0.79) 0.00 (0.26) (3.33) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.80) (0.87) (0.17) (0.46) (3.86) (0.33)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $17.77 $13.60 $13.79 $12.49 $78.14 $64.93
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 37.29% 4.91% 11.76% 29.64% 26.82% (7.22)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $71,736 $32,632 $17,045 $5,339 $611,111 $518,778
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.77% 1.74% 1.74% 1.73% 0.71% 0.71%
Ratio of net investment
income (loss) to average
net assets 1.02% 1.29% 2.01% 2.40% 0.68% 0.94%
Portfolio turnover 59% 33% 43% 70% 6% 6%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.83% 1.87% 2.08% 2.57% 0.80% 0.77%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.96% 1.16% 1.67% 1.56% 0.59% 0.88%
- ------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
133
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY INDEX FUND (CONT.)
CLASS A (CONT.)
--------------------------
SIX MONTHS
YEAR ENDED ENDED
MARCH 31, MARCH 31,
1998 1997 (1)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $49.60 $46.24
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.48 0.25
Net realized and unrealized gain (loss) on investments 22.31 4.61
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 22.79 4.86
LESS DISTRIBUTIONS:
Dividends from net investment income (0.48) (0.25)
Distributions from net realized gain (1.59) (1.25)
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (2.07) (1.50)
--------- ---------
NET ASSET VALUE, END OF PERIOD $70.32 $49.60
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 46.48% 10.63%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $578,882 $406,739
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.89%(5) 0.97%(5)
Ratio of net investment income (loss) to average net
assets 0.80%(5) 1.02%(5)
Portfolio turnover 4%(6) 2%(6)
- ----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 0.95%(5) 1.07%(5)
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 0.74%(5) 0.92%(5)
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
COPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 26, 1999
TO SEPTEMBER 30, 1999, WERE 3% AND $.0285 RESEPCTIVELY. THE
INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
134
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY INDEX FUND (CONT.) EQUITY INDEX FUND (CONT.)
CLASS A (CONT.) CLASS B
--------------------------------- --------------------------------
NINE MONTHS SIX MONTHS PERIOD
ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED ENDED
SEPT. 30, DEC. 31, DEC. 31, SEPT. 30, SEPT. 30, MARCH 31,
1996 (2) 1995 1994 1999 1998 (3) 1998 (4)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $41.45 $31.42 $33.00 $65.03 $70.41 $65.18
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.42 0.59 0.63 (0.03) 0.04 (0.01)
Net realized and
unrealized gain (loss)
on investments 4.79 10.65 (0.50) 16.52 (5.38) 5.24
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 5.21 11.24 0.13 16.49 (5.34) 5.23
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.42) (0.59) (0.63) 0.00 (0.04) 0.00
Distributions from net
realized gain 0.00 (0.62) (1.08) (3.33) 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.42) (1.21) (1.71) (3.33) (0.04) 0.00
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $46.24 $41.45 $31.42 $78.19 $65.03 $70.41
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 12.60% 35.99% 0.42% 25.86% (7.59)% 8.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $370,439 $327,208 $236,265 $66,931 $17,499 $3,811
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.01%(5) 0.96% 0.97% 1.45% 1.45% 1.45%
Ratio of net investment
income (loss) to average
net assets 1.28%(5) 1.59% 1.92% (0.06)% 0.14% (0.19)%
Portfolio turnover 1%(7) 6% 7% 6% 6% 4%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.08%(5) 1.00% 1.00% 1.61% 1.58% 1.64%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 1.21%(5) 1.55% 1.89% (0.22)% 0.01% (0.38)%
- ------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
COPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 26, 1999
TO SEPTEMBER 30, 1999, WERE 3% AND $.0285 RESEPCTIVELY. THE
INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
135
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY INDEX
FUND (1) (CONT.) EQUITY VALUE FUND (1)
CLASS O CLASS A
----------------- ----------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
SEPT. 30, SEPT. 30, SEPT. 30,
1999 (4) 1999 1998 (2)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $78.00 $14.93 $18.15
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.44 0.14 0.09
Net realized and unrealized gain (loss) on
investments 0.45 0.58 (3.22)
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.89 0.72 (3.13)
LESS DISTRIBUTIONS:
Dividends from net investment income (0.16) (0.14) (0.09)
Distributions from net realized gain 0.00 (1.26) 0.00
Tax return of capital 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.16) (1.40) (0.09)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $78.73 $14.25 $14.93
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED)* 27.22% 4.34% (17.27)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $0 $31,764 $43,679
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.00% 1.17% 1.09%
Ratio of net investment income (loss) to average
net assets 0.00% 0.85% 1.06%
Portfolio turnover 6% 72% 23%
- ----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.00% 1.26% 1.09%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 0.00% 0.76% 1.06%
- ----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
136
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1) (CONT.) EQUITY VALUE FUND (1) (CONT.)
CLASS A (CONT.) CLASS B
------------------------------------------- -----------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
1998 1997 (3) 1996 1995 1999 1998 (2)
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $14.43 $12.66 $13.27 $12.36 $12.23 $14.86
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.17 0.08 0.20 0.24** 0.02 0.02
Net realized and
unrealized gain (loss)
on investments 5.58 1.89 1.60 1.63** 0.48 (2.63)
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 5.75 1.97 1.80 1.87 0.50 (2.61)
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.17) (0.08) (0.19) (0.25) (0.02) (0.02)
Distributions from net
realized gain (1.86) (0.12) (2.22) (0.71) (1.03) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (2.03) (0.20) (2.41) (0.96) (1.05) (0.02)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $18.15 $14.43 $12.66 $13.27 $11.68 $12.23
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 41.76% 15.63% 14.27% 16.58% 3.68% (17.54)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $52,392 $20,798 $18,453 $170,406 $58,490 $73,343
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.07% 1.05% 1.18% 0.96% 1.83% 1.81%
Ratio of net investment
income (loss) to average
net assets 1.03% 1.14% 1.73% 1.97% 0.18% 0.36%
Portfolio turnover 50% 45% 91% 75% 72% 23%
- -------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.16% 1.12% 1.22% 0.98% 2.02% 1.81%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.94% 1.07% 1.69% 1.95% (0.01)% 0.36%
- -------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
137
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1) (CONT.)
CLASS B (CONT.)
---------------------------------
SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30,
1998 1997 (2) 1996 (3)
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.81 $10.34 $10.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.01 0.00
Net realized and unrealized gain (loss) on
investments 4.57 1.57 0.34
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 4.62 1.58 0.34
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.01) 0.00
Distributions from net realized gain (1.52) (0.10) 0.00
Tax return of capital 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (1.57) (0.11) 0.00
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $14.86 $11.81 $10.34
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED)* 40.87% 15.31% 3.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $72,428 $2,542 $0
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.76% 1.70% 0.00%
Ratio of net investment income (loss) to average
net assets 0.42% 0.34% 1.83%
Portfolio turnover 50% 45% 91%
- --------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.83% 2.19% N/A
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 0.35% (0.15)% N/A
- --------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
138
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1) (CONT.) EQUITY VALUE FUND (1) (CONT.)
CLASS C INSTITUTIONAL CLASS
----------------------------- --------------------------------
PERIOD SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31,
1999 1998 (4) 1999 1998 (5) 1998
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.23 $14.86 $14.92 $18.15 $14.43
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.02 0.15 0.10 0.20
Net realized and
unrealized gain (loss)
on investments 0.48 (2.63) 0.59 (3.23) 5.58
--------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.50 (2.61) 0.74 (3.13) 5.78
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.02) (0.15) (0.10) (0.20)
Distributions from net
realized gain (1.04) 0.00 (1.26) 0.00 (1.86)
Tax return of capital 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (1.06) (0.02) (1.41) (0.10) (2.06)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $11.67 $12.23 $14.25 $14.92 $18.15
========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 3.69% (17.57)% 4.51% (17.26)% 42.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $873 $1,239 $123,197 $166,616 $228,452
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.83% 1.83% 1.06% 0.97% 0.95%
Ratio of net investment
income (loss) to average
net assets 0.18% 0.41% 0.96% 1.17% 1.18%
Portfolio turnover 72% 23% 72% 23% 50%
- --------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 2.32% 2.84% 1.08% 0.97% 0.98%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (0.31)% (0.60)% 0.94% 1.17% 1.15%
- --------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
139
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1) GROWTH
(CONT.) FUND
INSTITUTIONAL CLASS (CONT.) CLASS A
---------------------------- ----------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30,
1997 (2) 1996 (3) 1999
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.65 $13.27 $20.48
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.09 0.22 0.01
Net realized and unrealized gain (loss) on
investments 1.89 1.61 5.65
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.98 1.83 5.66
LESS DISTRIBUTIONS:
Dividends from net investment income (0.08) (0.23) (0.01)
Distributions from net realized gain (0.12) (2.22) (3.28)
Tax return of capital 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.20) (2.45) (3.29)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $14.43 $12.65 $22.85
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED)* 15.73% 14.58% 29.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $193,161 $206,620 $315,134
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.95% 0.87% 1.10%
Ratio of net investment income (loss) to average
net assets 1.25% 1.69% 0.05%
Portfolio turnover 45% 91% 38%
- ---------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.99% 0.92% 1.13%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses 1.21% 1.64% 0.02%
- ---------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
140
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
CLASS A (CONT.)
------------------------------------------------------------------
SIX MONTHS SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1998 (4) 1998 1997 (2) 1996 (5) 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $22.09 $19.20 $17.91 $17.26 $14.10 $14.75
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.11 0.06 0.07 0.19 0.22
Net realized and
unrealized gain (loss)
on investments (1.61) 6.18 1.34 2.00 3.87 (0.27)
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS (1.56) 6.29 1.40 2.07 4.06 (0.05)
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.11) (0.06) (0.07) (0.19) (0.22)
Distributions from net
realized gain 0.00 (3.29) (0.05) (1.35) (0.71) (0.38)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.05) (3.40) (0.11) (1.42) (0.90) (0.60)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $20.48 $22.09 $19.20 $17.91 $17.26 $14.10
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* (7.08)% 34.65% 7.86% 12.45% 28.90% (0.29)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $305,309 $365,405 $283,468 $254,498 $178,488 $113,525
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.08% 1.12% 1.14% 1.18% 1.18% 1.11%
Ratio of net investment
income (loss) to average
net assets 0.42% 0.53% 0.65% 0.56% 1.23% 1.51%
Portfolio turnover 18% 137% 40% 83% 100% 71%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.08% 1.13% N/A 1.19% 1.21% 1.15%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.42% 0.52% N/A 0.55% 1.20% 1.47%
- ------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC.ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). 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) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
141
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
CLASS B
----------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, MARCH 31,
1999 1998 (1) 1998
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $14.53 $15.70 $13.64
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.09) (0.02) (0.01)
Net realized and unrealized gain (loss) on
investments 4.00 (1.15) 4.38
--------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 3.91 (1.17) 4.37
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized gain (2.33) 0.00 (2.31)
Tax return of capital 0.00 0.00 0.00
--------- --------- ---------
TOTAL FROM DISTRIBUTIONS (2.33) 0.00 (2.31)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $16.11 $14.53 $15.70
========= ========= =========
TOTAL RETURN (NOT ANNUALIZED)* 28.68% (7.45)% 33.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $60,909 $48,772 $52,901
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.79% 1.79% 1.79%
Ratio of net investment income (loss) to average
net assets (0.64)% (0.29)% (0.15)%
Portfolio turnover 38% 18% 137%
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.86% 1.79% 1.80%
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses (0.71)% (0.29)% (0.16)%
- ---------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
142
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
CLASS B (CONT.) INSTITUTIONAL CLASS
--------------------------------- --------------------------------
SIX MONTHS NINE MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, DEC. 31, SEPT. 30, SEPT. 30, MARCH 31,
1997 (2) 1996 (3) 1995 (4) 1999 1998 (1) 1998
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.74 $12.29 $10.00 $24.01 $25.91 $22.52
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.00 (0.01) 0.05 0.03 0.07 0.17
Net realized and
unrealized gain (loss)
on investments 0.94 1.42 2.79 6.64 (1.90) 7.25
--------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT
OPERATIONS 0.94 1.41 2.84 6.67 (1.83) 7.42
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 (0.05) (0.03) (0.07) (0.17)
Distributions from net
realized gain (0.04) (0.96) (0.50) (3.85) 0.00 (3.86)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
--------- --------- --------- --------- --------- ---------
TOTAL FROM DISTRIBUTIONS (0.04) (0.96) (0.55) (3.88) (0.07) (4.03)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF
PERIOD $13.64 $12.74 $12.29 $26.80 $24.01 $25.91
========= ========= ========= ========= ========= =========
TOTAL RETURN (NOT
ANNUALIZED)* 7.36% 11.89% 28.47% 29.69% (7.10)% 34.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $23,010 $12,832 $4,682 $17,588 $14,355 $18,180
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.86% 1.93% 1.87% 1.00% 1.02% 0.99%
Ratio of net investment
income (loss) to average
net assets (0.06)% (0.12)% 0.43% 0.15% 0.48% 0.65%
Portfolio turnover 40% 83% 100% 38% 18% 137%
- ------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.89% 2.03% 2.21% 1.02% 1.04% N/A
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (0.09)% (0.22)% 0.09% 0.13% 0.46% N/A
- ------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
143
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
INSTITUTIONAL CLASS (CONT.)
---------------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPT. 30,
1997 (2) 1996 (3)
<S> <C> <C>
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $21.01 $20.03
--------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.09 0.02
Net realized and unrealized gain (loss) on investments 1.57 0.97
--------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.66 0.99
LESS DISTRIBUTIONS:
Dividends from net investment income (0.09) (0.01)
Distributions from net realized gain (0.06) 0.00
Tax return of capital 0.00 0.00
--------- ----------
TOTAL FROM DISTRIBUTIONS (0.15) (0.01)
--------- ----------
NET ASSET VALUE, END OF PERIOD $22.52 $21.01
========= ==========
TOTAL RETURN (NOT ANNUALIZED)* 7.92% 3.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $19,719 $18,508
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.01% 0.96%
Ratio of net investment income (loss) to average net
assets 0.78% 1.27%
Portfolio turnover 40% 83%
- -----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses N/A N/A
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses N/A N/A
- -----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
144
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY (1) INTERNATIONAL EQUITY (1)
CLASS A CLASS B
------------------------------------ ------------------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED YEAR ENDED ENDED ENDED
SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, SEPT. 30, MARCH 31,
1999 1998 (4) 1998 1999 1998 (4) 1998
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $9.36 $11.05 $10.00 $9.30 $11.01 $10.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.02) 0.00 0.02 (0.10) (0.03) (0.01)
Net realized and
unrealized gain (loss)
on investments 3.36 (1.69) 1.03 3.34 (1.68) 1.02
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 3.34 (1.69) 1.05 3.24 (1.71) 1.01
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $12.70 $9.36 $11.05 $12.54 $9.30 $11.01
========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED)* 35.68% (15.29)% 10.52% 34.84% (15.53)% 10.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $35,779 $23,857 $26,770 $37,911 $30,070 $33,003
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.75% 1.75% 1.75% 2.40% 2.40% 2.40%
Ratio of net investment
income (loss) to average
net assets (0.17)% 0.10% 0.35% (0.81)% (0.56)% (0.31)%
Portfolio turnover 41% 21% 12% 41% 21% 12%
- -----------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 2.10% 2.06% 2.20% 2.79% 2.70% 2.84%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (0.52)% (0.21)% (0.10)% (1.20)% (0.86)% (0.75)%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
145
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY (1)
(CONT.)
CLASS C
------------------------
PERIOD
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 (3)
<S> <C> <C>
- --------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $9.30 $11.01
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04) (0.03)
Net realized and unrealized gain (loss) on investments 3.28 (1.68)
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 3.24 (1.71)
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00
Distributions from net realized gain 0.00 0.00
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS 0.00 0.00
--------- ---------
NET ASSET VALUE, END OF PERIOD $12.54 $9.30
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 34.84% (15.53)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $673 $297
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 2.37% 2.40%
Ratio of net investment income (loss) to average net
assets (0.78)% (1.15)%
Portfolio turnover 41% 21%
- --------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 2.72% 2.66%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (1.13)% (1.41)%
- --------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(6) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
146
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (2)
CLASS A
--------------------------------------------------------------------------
SIX MONTHS SIX MONTHS PERIOD
YEAR ENDED ENDED YEAR ENDED ENDED ENDED
SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 (4) 1998 1997 (5) 1996
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $17.86 $25.62 $18.98 $22.45 $22.01
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.18) (0.09) (0.06) (0.01) 0.00
Net realized and
unrealized gain
(loss) on investments 9.99 (7.67) 8.76 (3.46) 0.44
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 9.81 (7.76) 8.70 (3.47) 0.44
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain (1.44) 0.00 (2.06) 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.44) 0.00 (2.06) 0.00 0.00
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $26.23 $17.86 $25.62 $18.98 $22.45
========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED)* 58.81% (30.29)% 47.03% (15.46)% 2.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000s) $16,662 $10,899 $15,611 $3,107 $96
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):
Ratio of expenses to
average net assets 1.35% 1.36% 1.22%(6) 1.10%(6) 1.03%(6)
Ratio of net investment
income (loss) to
average net assets (0.92)% (0.82)% (0.43)%(6) (0.23)%(6) (0.59)%(6)
Portfolio turnover 249% 110% 291%(7) 69%(7) 10%(7)
- ---------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed expenses 1.53% 1.49% 1.57%(6) 2.80%(6) 38.54%(6)
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed expenses (1.10)% (0.95)% (0.78)%(6) (1.93)%(6) (38.10)%(6)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(5) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(6) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
147
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (1) (CONT.)
CLASS B
--------------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 (2)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.64 $25.38
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.36) (0.18)
Net realized and unrealized gain (loss) on investments 9.86 (7.56)
--------- ---------
TOTAL FROM INVESTMENT OPERATIONS 9.50 (7.74)
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00
Distributions from net realized gain (1.42) 0.00
Tax return of capital 0.00 0.00
--------- ---------
TOTAL FROM DISTRIBUTIONS (1.42) 0.00
--------- ---------
NET ASSET VALUE, END OF PERIOD $25.72 $17.64
========= =========
TOTAL RETURN (NOT ANNUALIZED)* 57.66% (30.50)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $18,718 $13,071
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 2.09% 2.11%
Ratio of net investment income (loss) to average net
assets (1.67)% (1.56)%
Portfolio turnover 249% 110%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 2.29% 2.13%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (1.87)% (1.58)%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
148
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (1) (CONT.) SMALL CAP FUND (1) (CONT.)
CLASS B (CONT.) CLASS C
------------------------------------------ ------------------------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED YEAR ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, MARCH 31,
1998 1997 (3) 1996 1999 1998 (2) 1998 (4)
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $18.93 $22.46 $22.02 $17.63 $25.38 $21.77
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.11) (0.04) 0.00 (0.39) (0.18) (0.08)
Net realized and
unrealized gain
(loss) on investments 8.61 (3.49) 0.44 9.89 (7.57) 3.69
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 8.50 (3.53) 0.44 9.50 (7.75) 3.61
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain (2.05) 0.00 0.00 (1.42) 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (2.05) 0.00 0.00 (1.42) 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $25.38 $18.93 $22.46 $25.71 $17.63 $25.38
========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED)* 46.02% (15.72)% 2.00% 57.69% (30.54)% 16.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000s) $15,320 $1,905 $0 $1,711 $1,426 $2,495
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):
Ratio of expenses to
average net assets 1.92%(5) 1.75%(5) 0.00% 2.10% 2.11% 2.10%
Ratio of net investment
income (loss) to
average net assets (1.13)%(5) (0.85)%(5) 0.00% (1.68)% (1.56)% (1.17)%
Portfolio turnover 291%(6) 69%(6) 10%(6) 249% 110% 291%
- -------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed expenses 2.21%(5) 3.55%(5) 0.00% 2.68% 2.71% 2.66%
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed expenses (1.42)%(5) (2.65)%(5) 0.00% (2.26)% (2.16)% (1.73)%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
149
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (1) (CONT.)
INSTITUTIONAL CLASS
--------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, MARCH 31,
1999 1998 (2) 1998
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $18.02 $25.77 $19.01
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.28) (0.02) 0.00
Net realized and unrealized gain (loss) on
investments 10.38 (7.73) 8.84
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 10.10 (7.75) 8.84
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 (0.01)
Distributions from net realized gain (1.46) 0.00 (2.07)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.46) 0.00 (2.08)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $26.66 $18.02 $25.77
========== ========== ==========
TOTAL RETURN (NOT ANNUALIZED)* 59.98% (30.07)% 47.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $22,023 $56,438 $78,856
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.76% 0.76% 0.75%(5)
Ratio of net investment income (loss) to average
net assets (0.38)% (0.21)% 0.01%(5)
Portfolio turnover 249% 110% 291%(6)
- ---------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.29% 1.21% 1.26%(5)
Ratio of net investment income (loss) to average
net assets prior to waived fees and reimbursed
expenses (0.91)% (0.66)% (0.50)%(5)
- ---------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON
FEBRUARY 20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781,
RESPECTIVELY. THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD
ONLY.
(8) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR
CLASS A SHARES AND 0.69679054 FOR CLASS C SHARES).
The accompanying notes are an integral part of these financial statements.
150
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (1) (CONT.) STRATEGIC GROWTH FUND (8)
INSTITUTIONAL CLASS (CONT.) CLASS A
---------------------------- -----------------------------------------------------------
SIX MONTHS PERIOD NINE MONTHS
ENDED ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30, DEC. 31, DEC. 31,
1997 (3) 1996 1999 1998 (4) 1997 1996
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $22.45 $22.01 $16.62 $19.96 $26.42 $24.12
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.00 (0.26) (0.14) (0.07) (0.04)
Net realized and
unrealized gain
(loss) on investments (3.46) 0.44 6.56 (3.20) 2.48 2.54
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS (3.44) 0.44 6.30 (3.34) 2.41 2.50
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 0.00 0.00 (8.87) (0.20)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 0.00 0.00 (8.87) (0.20)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $19.01 $22.45 $22.92 $16.62 $19.96 $26.42
========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED)* (15.32)% 2.00% 37.91% (16.73)% 7.73% 10.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000s) $29,200 $24,553 $90,700 $94,388 $148,122 $131,226
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):
Ratio of expenses to
average net assets 0.75%(5) 1.60%(5) 1.26% 1.27% 1.18%(5) 1.24%(5)
Ratio of net investment
income (loss) to
average net assets 0.16%(5) (1.15)%(5) (0.78)% (0.90)% (0.96)%(5) (0.82)%(5)
Portfolio turnover 69%(6) 10%(6) 302% 339% 256%(6) 10%(7)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed expenses 1.65%(5) 1.63%(5) 1.35% 1.27% 1.18%(5) 1.27%(5)
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed expenses (0.74)%(5) (1.18)%(5) (0.87)% (0.90)% (0.96)%(5) (0.85)%(5)
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON
FEBRUARY 20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781,
RESPECTIVELY. THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD
ONLY.
(8) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR
CLASS A SHARES AND 0.69679054 FOR CLASS C SHARES).
The accompanying notes are an integral part of these financial statements.
151
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1)
(CONT.)
CLASS A (CONT.)
--------------------------
YEAR ENDED YEAR ENDED
DEC. 31, DEC. 31,
1995 1994
<S> <C> <C>
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.06 $18.93
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06) (0.16)
Net realized and unrealized gain (loss) on investments 8.12 0.96
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 8.06 0.80
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00
Distributions from net realized gain (3.00) (0.47)
Tax return of capital 0.00 (0.20)
---------- ----------
TOTAL FROM DISTRIBUTIONS (3.00) (0.67)
---------- ----------
NET ASSET VALUE, END OF PERIOD $24.12 $19.06
========== ==========
TOTAL RETURN (NOT ANNUALIZED)* 42.51% 4.23%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $59,016 $26,744
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.28% 1.20%
Ratio of net investment income (loss) to average net
assets (0.76)% (0.81)%
Portfolio turnover 171% 149%
- ------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees
and reimbursed expenses 1.38% 1.55%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (0.86)% (1.16)%
- ------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR
CLASS A SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS AS CLASS D SHARES ON
JULY 1, 1993. THESE SHARES WERE RENAMED AS CLASS C SHARES IN
CONJUNCTION WITH THE CONSOLIDATION OF OVERLAND EXPRESS FUNDS, INC.
AND STAGECOACH FUNDS, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
152
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1) (CONT.) STRATEGIC GROWTH FUND (1) (CONT.)
CLASS B CLASS C (2)
------------------------------------------- -------------------------------------------
NINE MONTHS PERIOD NINE MONTHS
YEAR ENDED ENDED ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, DEC. 31, SEPT. 30, SEPT. 30, DEC. 31,
1999 1998 (3) 1997 (4) 1999 1998 (3) 1997
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $20.15 $24.33 $23.68 $20.14 $24.32 $32.42
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.54) (0.29) (0.02) (0.87) (0.29) (0.45)
Net realized and
unrealized gain
(loss) on investments 8.00 (3.89) 0.67 8.31 (3.89) 3.17
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 7.46 (4.18) 0.65 7.44 (4.18) 2.72
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 (10.82)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 0.00 0.00 0.00 (10.82)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $27.61 $20.15 $24.33 $27.58 $20.14 $24.32
========== ========== ========== ========== ========== ==========
TOTAL RETURN (NOT
ANNUALIZED)* 37.02% (17.18)% 2.74% 36.94% (17.19)% 6.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000s) $20,230 $20,337 $23,562 $12,650 $17,507 $41,608
RATIOS TO AVERAGE NET
ASSETS (ANNUALIZED):
Ratio of expenses to
average net assets 2.00% 1.93% 1.89% 2.00% 1.94% 1.93%(5)
Ratio of net investment
income (loss) to
average net assets (1.52)% (1.56)% (1.63)% (1.53)% (1.57)% (1.70)%(5)
Portfolio turnover 302% 339% 256% 302% 339% 256%(6)
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
prior to waived fees
and reimbursed expenses 2.16% 1.93% 1.89% 2.08% 1.94% 1.94%(5)
Ratio of net investment
income (loss) to
average net assets
prior to waived fees
and reimbursed expenses (1.68)% (1.56)% (1.63)% (1.61)% (1.57)% (1.71)%(5)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR
CLASS A SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS AS CLASS D SHARES ON
JULY 1, 1993. THESE SHARES WERE RENAMED AS CLASS C SHARES IN
CONJUNCTION WITH THE CONSOLIDATION OF OVERLAND EXPRESS FUNDS, INC.
AND STAGECOACH FUNDS, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO
SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
153
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1) (CONT.)
CLASS C (2) (CONT.)
------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, DEC. 31, DEC. 31,
1996 1995 1994
<S> <C> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
PERIOD $29.84 $23.74 $23.75
---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (0.11) (0.23) (0.34)
Net realized and unrealized
gain (loss) on investments 2.93 10.03 1.16
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 2.82 9.80 0.82
LESS DISTRIBUTIONS:
Dividends from net investment
income 0.00 0.00 0.00
Distributions from net
realized gain (0.24) (3.70) (0.57)
Tax return of capital 0.00 0.00 (0.26)
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.24) (3.70) (0.83)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $32.42 $29.84 $23.74
========== ========== ==========
TOTAL RETURN (NOT ANNUALIZED)* 9.46% 41.54% 3.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $55,063 $26,326 $15,335
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average
net assets 2.00%(3) 2.02% 1.95%
Ratio of net investment income
(loss) to average net assets (1.58)%(3) (1.49)% (1.56)%
Portfolio turnover 10%(4) 171% 149%
- --------------------------------------------------------------------------------
Ratio of expenses to average net
assets prior to waived fees
and reimbursed expenses 2.02%(3) 2.09% 2.23%
Ratio of net investment income
(loss) to average net assets
prior to waived fees and
reimbursed expenses (1.60)%(3) (1.56)% (1.84)%
- --------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR
CLASS A SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS AS CLASS D SHARES ON
JULY 1, 1993. THESE SHARES WERE RENAMED AS CLASS C SHARES IN
CONJUNCTION WITH THE CONSOLIDATION OF OVERLAND EXPRESS FUNDS, INC.
AND STAGECOACH FUNDS, INC.
(3) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO
DECEMBER 15, 1997.
(4) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON
FEBRUARY 20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781,
RESPECTIVELY. THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD
ONLY.
The accompanying notes are an integral part of these financial statements.
154
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity 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 currently offers thirty-one separate series. These financial
statements represent the Balanced, Diversified Equity Income, Equity Index,
Equity Value, Growth, International Equity, Small Cap and Strategic Growth Funds
(each, a "Fund", collectively, the "Funds"), each Fund is a diversified series
of the Company.
Effective at the close of business on December 12, 1997, the Funds of Overland
Express, Inc. were consolidated into the Company in a tax-free exchange for
shares of designated classes of the corresponding Stagecoach fund. Also, at the
close of business on December 12, 1997, funds structured as "feeder" funds in a
"master-feeder" structure were restructured to invest directly in a portfolio of
securities, rather than to invest in a portfolio of securities through a
"master" portfolio. Effective on September 6, 1996, the Pacifica Funds Trust was
consolidated into the Company in a tax-free exchange for shares of designated
classes of the corresponding Stagecoach fund.
Prior to December 12, 1997, the Diversified Equity Income, Equity Index,
Growth, and Strategic Growth Funds were known as the "Diversified Income",
"Corporate Stock", "Growth and Income" and "Aggressive Growth" Funds,
respectively.
Each of the Funds offers Class A and Class B shares. Additionally, the
Balanced, Equity Value, Growth and Small Cap Funds offer Institutional
Class shares. The Equity Value, International Equity, Small Cap and Strategic
Growth Funds also offer Class C shares. The separate classes of shares differ
principally in the applicable sales charges (if any), distribution fees,
shareholder servicing fees and transfer agency fees. Shareholders of each class
also bear certain expenses that pertain to that particular class. All
shareholders bear the common expenses of the Fund and earn income from the
portfolio pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains are
allocated to each class pro rata based on the net assets of each class on the
date of distribution. No class has preferential dividend rights. Differences in
per share dividend rates generally result from the relative weightings of pro
rata income and realized gain allocations and from differences in separate class
expenses, including distribution, shareholder servicing and transfer agency
fees.
155
<PAGE>
Equity 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
All securities are valued at the close of each business day. Securities for
which the primary market is a national or foreign recognized securities or
commodities exchange or the National Association of Securities Dealers Automated
Quotation ("NASDAQ") National Market are valued at the last reported sales price
on the day of valuation. The market values of securities denominated in foreign
currencies are translated into U.S. dollars using the closing rates of exchange
in effect on the day of valuation. Debt securities are generally traded in the
over-the-counter market and are valued at a price deemed best to reflect fair
value as quoted by dealers who make markets in those securities or by an
independent pricing source. U.S. Government obligations are valued at the last
reported bid price. In the absence of any sale of such securities on the
valuation date and in the case of other securities, excluding money market
instruments maturing in 60 days or less, the valuations are based on latest
quoted bid prices. Debt securities maturing in 60 days or less are valued at
amortized cost. The amortized cost method, which approximates market value,
involves valuing a security at its cost, plus accretion of discount or minus
amortization of premium over the period until maturity. Securities for which
quotations are not readily available are valued at fair value as determined by
policies set by the Company's Board of Directors.
FOREIGN CURRENCY TRANSLATION
The accounting records of the International Equity Fund are maintained in U.S.
dollars. Assets, including investment securities, and liabilities denominated in
foreign currency are translated into U.S. dollars at the prevailing rates of
exchange at the date of valuation. Purchases and sales of securities, and income
and expenses are translated at the prevailing rate of exchange on the respective
dates of such transactions. Reported net realized foreign exchange gains or
losses arise from sales of foreign currencies, currency gains or losses realized
between the trade and settlement dates on securities transactions, and the
difference between the amounts of dividends, interest and foreign withholding
taxes
156
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually paid or received. Net unrealized foreign exchange gains and losses
arise from changes in the fair value of assets and liabilities other than
investments in securities, at fiscal period-end, resulting from changes in
exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. However, gains and losses
from certain foreign currency transactions are treated as ordinary income for
U.S. Federal income tax purposes.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
INTERNATIONAL EQUITY FUND -- Securities transactions are recorded on a trade
date basis. Interest income is accrued daily. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend date,
except, if the ex-dividend date has passed, certain dividends from foreign
securities are recorded as soon as the Fund is informed of the ex-dividend date.
Dividend income is recorded net of foreign taxes withheld where recovery of such
taxes is not assured. Withholding taxes on foreign dividends have been provided
for in accordance with the Fund's understanding of the applicable countries' tax
rules and rates. Realized gains or losses are reported on the basis of
identified cost of securities delivered. Bond discounts are accreted and
premiums are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
FUNDS OTHER THAN INTERNATIONAL EQUITY FUND -- Securities transactions are
recorded on a trade date basis. Dividend income is recognized on the ex-dividend
date and interest income is accrued daily. Realized gains or losses are reported
on the basis of identified cost of securities delivered. Bond discounts are
accreted and premiums are amortized under provisions of the Code.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and to take action to obtain additional collateral as necessary to maintain
market
157
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
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.
FORWARD CONTRACTS
As of September 30, 1999 the International Equity Fund had entered into three
forward foreign currency contract under which it is obligated to exchange
currencies at a specific future date. Risks arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
currency values. The following contracts were held by the International Equity
Fund for the year ended September 30, 1999:
<TABLE>
<CAPTION>
NET
UNREALIZED
APPRECIATION/
DATE CURRENCY VALUE PROCEEDS DEPRECIATION
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10/04/99 British Pound Sterling L186,542.64 $ 307,869.07 $ (725.77)
10/04/99 British Pound Sterling L102,285.61 $ 168,812.17 $ (397.96)
10/04/99 Eurodollar $1,852,784.15 $1,970,528.58 $14,139.97
</TABLE>
FUTURES CONTRACTS
The Equity Index Fund has purchased futures contracts to gain exposure to
market changes. This procedure may be more efficient or cost effective than
actually buying the securities. A futures contract is an agreement between
parties to buy or sell a security at a set price on a future date. Upon entering
into such a contract, a Fund is required to pledge to the broker an amount of
cash, U.S. Government obligations or other high-quality debt securities equal to
the minimum "initial margin" requirements of the exchange on which the futures
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in the value
of the contract. Such receipts or payments are known as "variation margin" and
are recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed. Pursuant to regulations and/or published positions of the Securities
and Exchange Commission ("SEC"), the Fund is required to segregate highly liquid
securities as permitted by the SEC in connection with futures transactions in an
amount generally equal to the entire value of the underlying contracts. Risks of
entering into futures contracts include the possibility that there may be an
158
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
illiquid market and that a change in the value of the contract may not correlate
with changes in the value of the underlying securities. On September 30, 1999,
the Equity Index Fund held the following long futures contracts:
<TABLE>
<CAPTION>
NET
NOTIONAL UNREALIZED
EXPIRATION CONTRACT APPRECIATION/
CONTRACTS TYPE DATE VALUE (DEPRECIATION)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
48 S & P 500 Index Dec 1999 15,578,400 $(803,575)
</TABLE>
The Equity Index Fund has pledged to brokers U.S. Treasury bills for initial
margin requirements with a par value of $1,040,000.
SECURITY LOANS
The Funds may receive compensation for lending securities in the form of fees
or by retaining a portion of interest on the investment securities or cash
received as collateral. A Fund also continues to receive interest or dividends
on the securities loaned. Security loans are secured at all times by collateral
equal to at least 102% of the market value of the securities loaned plus accrued
interest. Gain or loss in the market price of the securities loaned that may
occur during the term of the loan are reflected in the value of the Fund. The
risks to the Fund from securities lending are that the borrower may not provide
additional collateral when required or return the securities when due or when
called for by the Fund. The value of the securities on loan and the value of the
related collateral for the year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
FUND SECURITIES COLLATERAL
- --------------------------------------------------------------------------
<S> <C> <C>
Diversified Equity Income Fund $22,882,469 $23,937,713
Equity Value 27,261,617 27,749,224
Growth Fund 63,595,070 65,123,883
Small Cap Fund 7,644,221 7,948,102
Strategic Growth Fund 21,445,305 21,878,280
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared and
distributed quarterly, with the exception of the International Equity and Small
Cap Funds. Dividends to shareholders from net investment income of the
International Equity and Small Cap Funds, if any, are declared and distributed
annually. Any distributions to shareholders from net realized capital gains are
declared and distributed at least annually.
159
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
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 September 30, 1999. The
following Funds had estimated net capital loss carryforwards:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND DATE EXPIRES CARRYFORWARDS
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Strategic Growth Fund December 31, 1998 2006 $ 9,573,821
2005 2,470,830
2004 3,168,815
Small Cap Fund June 30, 1999 2007 3,949,401
</TABLE>
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and with
the various states prior to June 30, 1998 are amortized on a straight-line basis
over 60 months from the date each Fund commenced operations. Costs incurred
after June 30, 1998 are expensed as incurred.
160
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a separate advisory contract on behalf of the
Funds with WFB. Pursuant to the contract, WFB has agreed to provide the Funds
with daily portfolio management. Under the contract, WFB is entitled to be paid
a monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
FUND % OF AVERAGE DAILY NET ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Balanced Fund 0.60
Diversified Equity Income Fund 0.50
Equity Index Fund 0.25
Equity Value Fund 0.50
Growth Fund
Daily net assets up to $250 million 0.50
Daily net assets between $250 million and
$500 million 0.40
Daily net assets in excess of $500 million 0.30
International Equity Fund 1.00
Small Cap Fund 0.60
Strategic Growth 0.50
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Funds, with the exception of the
Equity Index Fund. WCM is entitled to receive from WFB, as compensation for its
sub-advisory services, a monthly fee at the annual rate of 0.25% of each Fund's
average daily net assets up to $200 million, 0.20% for the next $200 million and
0.15% of each Fund's average daily net assets in excess of $400 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.
Barclays Global Fund Advisors ("BGFA"), a wholly-owned subsidiary of Barclays
Global Investors, N.A. ("BGI") and indirect subsidiary of Barclays Bank PLC,
acts as sub-advisor to the Equity Index Fund. BGFA is entitled to receive from
WFB, as compensation for its sub-advisory services, a monthly fee at the annual
rate of 0.02% of the Fund's average daily net assets up to $200 million and
0.01% of its average daily net assets in excess of $200 million.
IBT has been retained to act as custodian for the International Equity Fund.
For domestic and global custody services, IBT is entitled to a fee based upon
security holdings and transaction charges.
On June 4, 1999, the Company entered into contracts on behalf of each Fund
(other than the Equity Index Fund, for which BGI serves as custodian and the
International Equity Fund, for which IBT serves as custodian) with Norwest Bank
Minnesota, N.A. ("Norwest Bank"), an affiliated party, whereby Norwest
161
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
Bank is responsible for providing custody services for the Funds. Pursuant to
the contracts, Norwest Bank is entitled to a monthly fee for custody services at
the annual rate of 0.0167% of the average daily net assets of each Fund and to
an additional fixed fee for certain funds. Prior to June 4, 1999, WFB performed
the above services for the same fees.
BGI, a wholly-owned subsidiary of Barclays Global Investors Holdings Inc.,
acts as custodian to the Equity Index Fund. BGI is not entitled to receive
compensation for its custodial services to the Fund so long as BGFA is entitled
to receive compensation for providing investment sub-advisory services to it.
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. WFB has engaged
IBT to perform certain sub-accounting services for the International Equity
Fund. For providing such services, IBT is entitled to fees and reimbursement of
expenses from WFB, which are payable out of the fees received by WFB for
portfolio accounting services.
162
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
On June 3, 1999, WFB and Forum Accounting Services ("Forum") entered into an
agreement, whereby WFB desires that Forum performs certain fund accounting
services for WFB with respect to each Fund and Class thereof. A monthly fee per
fund, and a basis point fee of 0.0025% of the average annual daily net assets of
each Fund will also be charged. The Company, on behalf of the applicable Fund,
reimburses Forum for all out-of-pocket and ancillary expenses reasonably
incurred in providing the services described in the Fund Accounting Agreement.
On August 2, 1999, Forum began providing services for the Balanced Fund,
Diversified Equity Income Fund, Small Cap Fund, Growth Fund, and the Strategic
Growth Fund.
On July 17, 1999, Boston Financial Data Services ("BFDS") replaced WFB as the
transfer agent for the Company. Under the transfer agency contract, BFDS is
entitled to receive, on a monthly basis, transfer agency fees based on the
number of accounts and transactions of each Fund. WFB will continue to provide
sub-transfer agency services to the Funds. Prior to July 17, 1999 the Company
had entered into a contract on behalf of the Funds with WFB, whereby WFB
provided transfer agency services for the Funds. Under the transfer agency
contract, WFB was entitled to receive transfer agency fees at an annual rate of
0.14% for Class A, Class B, Class C, and 0.06% for Class I of the average daily
net assets of the Funds.
The transfer agency fees paid on behalf of the Funds for the year ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS CLASS O
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund $ 43,095 $ 16,681 N/A $ 17,729 N/A
Diversified Equity Income Fund 245,839 87,060 N/A N/A N/A
Equity Index Fund 836,727 68,702 N/A N/A $0
Equity Value Fund 63,552 117,497 $ 1,603 81,719 N/A
Growth Fund 507,663 93,643 N/A 8,676 N/A
International Equity fund 77,675 19,961 357 N/A N/A
Small Cap Fund 23,178 32,493 2,264 25,812 N/A
Strategic Growth Fund 173,492 40,502 22,699 N/A N/A
</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 Diversified Equity
Income Fund and the Class A and Class B shares of the Growth Fund, 0.25% of the
average daily net assets of the Equity Index and International Equity Funds
163
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
and each of the classes of the Balanced, Equity Value, Small Cap and Strategic
Growth Funds, and 0.25% of the average daily net assets of the Institutional
Class shares of the Growth Fund.
The shareholder servicing fees paid on behalf of the Funds for the year ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS CLASS O
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund $ 75,613 $ 27,885 N/A $ 84,187 N/A
Diversified Equity Income Fund 473,094 177,527 N/A N/A N/A
Equity Index Fund 1,540,651 106,663 N/A N/A $ 0
Equity Value Fund 102,196 180,938 $ 2,894 401,923 N/A
Growth Fund 1,022,063 180,657 N/A 43,874 N/A
International Equity 160,478 0 0 N/A N/A
Small Cap Fund 31,126 38,603 3,665 115,432 N/A
Strategic Growth Fund 237,157 52,666 38,357 N/A N/A
</TABLE>
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB acts as sole
administrator of the Funds and is entitled to receive monthly fees at an annual
rate of 0.15% of the average daily net assets of the Funds, with the exception
of the International Equity Fund from which WFB and Stephens receive 0.06% and
0.04%, respectively. WFB has engaged IBT to perform certain sub-administration
services for the International Equity Fund. For providing such services, IBT is
entitled to an annual base fee of approximately $42,500 plus a net asset fee at
the annual rate of 0.05% of the first $75 million of average daily net assets,
0.025% of the next $50 million, and 0.01% of the average daily net assets in
excess of $125 million. Prior to March 25, 1999, the Company had entered into
administration agreements on behalf of the Funds whereby WFB serves as
administrator and Stephens Inc. ("Stephens") as co-administrator provided the
Funds with administrative services. For these services, WFB and Stephens were
entitled to receive monthly fees at the annual rates of 0.03% and 0.04%,
respectively, of each Fund's average daily net assets.
The Company has adopted separate Distribution Plans for Class A, Class B and
Class C shares of the Funds pursuant to Rule 12b-1 under the 1940 Act (each, a
"Plan"). The Plans for the Class A shares of the Diversified Equity Income and
Growth Funds provide that each such Fund may defray all or part of the cost of
preparing, printing and distributing prospectuses and other promotional
materials by paying for costs incurred on an annual basis of up to 0.05% of the
average daily net assets attributable to such shares. The Plans for the Class A
shares of the remaining Funds, with the exception of the Equity
164
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
Index Fund, provide that the Funds 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 their Class A shares.
Under the Plan for Class B shares of the Funds, each Fund may pay to Stephens,
as compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.70% of the
average daily net assets attributable to the Class B shares of the Diversified
Equity Income and Growth Funds, and 0.75% of the average daily net assets
attributable to the Class B shares of the Balanced, Equity Index, Equity Value,
International Equity, Small Cap and Strategic Growth Funds.
Under the Plans for the Class C shares of the Equity Value, International
Equity, Small Cap and Strategic Growth Funds, each Fund may pay to Stephens, as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.75% of the
average daily net assets attributable to its Class C 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.
The distribution fees paid on behalf of the Funds for the year ended September
30, 1999 were as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
Balanced Fund $ 0 $ 83,655 N/A
Diversified Equity Income Fund 0 414,231 N/A
Equity Index Fund 0 319,991 N/A
Equity Value Fund 0 542,815 $ 8,683
Growth Fund 0 421,534 N/A
International Equity Fund 27,460 266,018 2,539
Small Cap Fund 8,530 115,809 10,995
Strategic Growth Fund 50,474 157,998 115,071
</TABLE>
165
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
The registration fees paid on behalf of the Funds for the year ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS CLASS O
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balanced Fund $14,790 $21,128 N/A $ 13,068 N/A
Diversified Equity Income Fund 22,531 23,641 N/A N/A N/A
Equity Index Fund 7,655 12,669 N/A N/A $0
Equity Value Fund 33,242 64,566 $4,709 7,842 N/A
Growth Fund 46,444 16,978 N/A 9,019 N/A
Small Cap Fund 6,191 16,920 7,415 30,749 N/A
Strategic Growth Fund 6,917 22,265 9,328 N/A N/A
</TABLE>
The registration fees paid on behalf of the International Equity Fund are
disclosed in the Statement of Operations.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the year ended September 30, 1999, were waived by WFB. Waived
fees and reimbursed expenses continue at the discretion of WFB and Stephens.
Certain officers and one director of the Company are also officers of
Stephens. As of September 30, 1999, Stephens owned 9 shares of the Balanced,
14,859 shares of the Diversified Equity Income, 3 shares of the Equity Index, 12
shares of the Equity Value, 154 shares of the Growth, 6 shares of the
International Equity, 8 shares of the Small Cap and 6,046 shares of the
Strategic Growth Funds.
Stephens has retained $3,037,388 as sales charges from the proceeds of
Class A shares sold, $2,050,094 from the proceeds of Class B shares redeemed and
$99,412 from the proceeds of Class C shares redeemed by the Company for the year
ended September 30, 1999. A third party financing agent has retained
approximately $837,120 from the proceeds of Class B shares redeemed by the
Company for the year ended September 30, 1999. Wells Fargo Securities Inc., a
subsidiary of WFB, received $2,324,395 as sales charges from the proceeds of
Class A shares sold, $202,625 from the proceeds of Class B shares redeemed and
$0 from the proceeds of Class C shares redeemed by the Company for the year
ended September 30, 1999.
166
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date), for each Fund
for the year ended September 30, 1999, were as follows:
AGGREGATE PURCHASES AND SALES
<TABLE>
<CAPTION>
FUND PURCHASE AT COST SALES PROCEEDS
- --------------------------------------------------------------------------------
<S> <C> <C>
Balanced Fund $ 52,311,655 $ 68,469,270
Diversified Equity Income Fund 70,109,371 135,199,813
Equity Index Fund 38,045,618 46,229,505
Equity Value Fund 192,989,749 273,772,488
Growth Fund 155,109,106 237,960,655
International Equity Fund 28,125,750 25,249,138
Small Cap Fund 177,056,375 225,160,806
Strategic Growth Fund 384,955,269 443,997,687
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
As of September 30, 1999, there were over 242 billion shares of $0.001 par
value capital stock authorized by the Company. As of September 30, 1999, each
Fund was authorized to issue 500 million shares of $0.001 par value capital
stock for each class of shares.
167
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
BALANCED FUND
-------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 126,317 136,211 420,213
Shares issued in
reinvestment of
dividends --
Class A 344,347 32,525 358,753
Shares redeemed --
Class A (683,260) (278,356) (780,989)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (212,596) (109,620) (2,023)
Shares sold --
Class B 142,613 240,973 709,400
Shares issued in
reinvestment of
dividends --
Class B 129,647 7,017 55,037
Shares redeemed --
Class B (191,568) (58,649) (30,145)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B 80,692 189,341 734,292
Shares sold --
Institutional
Class 344,941 206,009 515,727
Shares issued in
reinvestment of
dividends --
Institutional
Class 394,128 48,235 584,536
Shares redeemed --
Institutional
Class (1,239,306) (1,127,605) (1,857,018)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
INSTITUTIONAL CLASS (500,237) (873,361) (756,755)
</TABLE>
168
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND
-------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 496,439 485,816 3,839,513
Shares issued in
reinvestment of
dividends --
Class A 1,244,407 77,639 593,094
Shares redeemed --
Class A (3,742,035) (1,927,115) (3,291,833)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (2,001,189) (1,363,660) 1,140,774
Shares sold --
Class B 106,544 345,133 1,936,277
Shares issued in
reinvestment of
dividends --
Class B 462,150 15,221 172,544
Shares redeemed --
Class B (1,106,230) (398,481) (471,375)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B (537,536) (38,127) 1,637,446
</TABLE>
169
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX FUND
-------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 891,085 494,311 1,208,808
Shares issued in
reinvestment of
dividends --
Class A 436,527 35,262 271,192
Shares redeemed --
Class A (1,495,986) (772,265) (1,447,968)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (168,374) (242,692) 32,032
Shares sold --
Class B(1) 634,985 234,359 54,217
Shares issued in
reinvestment of
dividends --
Class B(1) 15,222 24 0
Shares redeemed --
Class B(1) (63,325) (19,407) (92)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B(1) 586,882 214,976 54,125
Shares sold --
Class O(2) 3 N/A N/A
Shares issued in
reinvestment of
dividends --
Class O(2) 0 N/A N/A
Shares redeemed --
Class O(2) 0 N/A N/A
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS O(2) 3 N/A N/A
</TABLE>
(1) THE CLASS B SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(2) THE CLASS O SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
170
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY VALUE FUND
-------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 189,690 463,645 1,745,819
Shares issued in
reinvestment of
dividends --
Class A 252,766 11,979 268,337
Shares redeemed --
Class A (1,139,567) (436,216) (569,633)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (697,111) 39,408 1,444,523
Shares sold --
Class B 411,338 1,570,146 4,530,419
Shares issued in
reinvestment of
dividends --
Class B 503,665 5,398 315,926
Shares redeemed --
Class B (1,904,338) (450,579) (188,855)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B (989,335) 1,124,965 4,657,490
Shares sold --
Class C(1) 38,141 107,237 N/A
Shares issued in
reinvestment of
dividends --
Class C(1) 7,730 9 N/A
Shares redeemed --
Class C(1) (72,519) (5,862) N/A
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS C(1) (26,648) 101,384 N/A
Shares sold --
Institutional
Class 818,239 563,560 1,371,556
Shares issued in
reinvestment of
dividends --
Institutional
Class 844,162 28,899 1,303,132
Shares redeemed --
Institutional
Class (4,180,892) (2,016,105) (3,471,865)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
INSTITUTIONAL CLASS (2,518,491) (1,423,646) (797,177)
</TABLE>
(1) THE CLASS C SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
171
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND
-------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 1,073,917 611,479 4,014,428
Shares issued in
reinvestment of
dividends --
Class A 2,283,029 40,424 2,345,049
Shares redeemed --
Class A (4,470,969) (2,282,051) (4,584,881)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (1,114,023) (1,630,148) 1,774,596
Shares sold --
Class B 617,603 307,172 1,647,233
Shares issued in
reinvestment of
dividends --
Class B 520,123 24 428,282
Shares redeemed --
Class B (712,314) (320,594) (392,158)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B 425,412 (13,398) 1,683,357
Shares sold --
Institutional
Class 160,901 30,917 166,286
Shares issued in
reinvestment of
dividends --
Institutional
Class 56,609 1,096 80,772
Shares redeemed --
Institutional
Class (158,939) (135,901) (420,946)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
INSTITUTIONAL CLASS 58,571 (103,888) (173,888)
</TABLE>
172
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
---------------------------------------------------------------
FROM SEPT. 24, 1997
FOR THE FOR THE SIX (COMMENCEMENT OF
YEAR ENDED MONTHS ENDED OPERATIONS) TO
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 1,079,764 444,360 2,572,693
Shares issued in
reinvestment of
dividends --
Class A 0 0 257
Shares redeemed --
Class A (811,023) (319,683) (149,719)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A 268,741 124,677 2,423,231
Shares sold --
Class B 386,395 438,879 3,186,964
Shares issued in
reinvestment of
dividends --
Class B 0 0 0
Shares redeemed --
Class B (594,655) (203,894) (189,888)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B (208,260) 234,985 2,997,076
Shares sold --
Class C(1) 40,508 33,350 N/A
Shares issued in
reinvestment of
dividends --
Class C(1) 0 0 N/A
Shares redeemed --
Class C(1) (18,733) (1,451) N/A
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS C(1) 21,775 31,899 N/A
</TABLE>
(1) THE CLASS C SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
173
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP FUND
---------------------------------------------------------------
FOR THE FOR THE SIX FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 MARCH 31, 1998 (1)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 1,056,895 136,456 634,259
Shares issued in
reinvestment of
dividends --
Class A 45,871 8 34,764
Shares redeemed --
Class A (1,077,599) (135,740) (223,310)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A 25,167 724 445,713
Shares sold --
Class B 141,608 201,571 538,236
Shares issued in
reinvestment of
dividends --
Class B 60,003 0 33,568
Shares redeemed --
Class B (215,165) (63,939) (68,877)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B (13,554) 137,632 502,927
Shares sold --
Class C(2) 14,378 15,556 103,665
Shares issued in
reinvestment of
dividends --
Class C(2) 3,349 0 393
Shares redeemed --
Class C(2) (32,061) (32,995) (5,746)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS C(2) (14,334) (17,439) 98,312
Shares sold --
Institutional
Class 1,043,798 957,486 2,243,301
Shares issued in
reinvestment of
dividends --
Institutional
Class 260,262 0 183,755
Shares redeemed --
Institutional
Class (3,609,504) (886,274) (902,272)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
INSTITUTIONAL CLASS (2,305,444) 71,212 1,524,784
</TABLE>
(1) "SHARES SOLD" INCLUDES 137,123 FOR CLASS A SHARES AND 99,909 FOR CLASS C
SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND SMALL CAP STRATEGY
FUND.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
174
<PAGE>
NOTES TO FINANCIAL STATEMENTS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND
--------------------------------------------------------------
FOR THE FOR THE NINE FOR THE
YEAR ENDED MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 DEC. 31, 1997 (1)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND
REDEEMED:
Shares sold --
Class A 9,253,633 5,216,652 9,450,816
Shares issued in
reinvestment of
dividends --
Class A 0 0 1,180,296
Shares redeemed --
Class A (10,977,267) (6,958,044) (8,176,548)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS A (1,723,634) (1,741,392) 2,454,564
Shares sold --
Class B 153,746 263,347 986,522
Shares issued in
reinvestment of
dividends --
Class B 0 0 0
Shares redeemed --
Class B (430,104) (222,796) (18,018)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS B (276,358) 40,551 968,504
Shares sold --
Class C 109,825 1,028,552 7,044,117
Shares issued in
reinvestment of
dividends --
Class C 0 0 249,166
Shares redeemed --
Class C (520,617) (1,869,893) (7,280,888)
NET INCREASE
(DECREASE) IN
SHARES
OUTSTANDING --
CLASS C (410,792) (841,341) 12,395
</TABLE>
(1) "SHARES SOLD" INCLUDES 2,038,293 FOR CLASS A SHARES AND 964,883 FOR CLASS B
SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND STRATEGIC GROWTH
FUND.
5. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Company with the
175
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
Norwest Advantage Funds following last November's merger of Wells Fargo &
Company and Norwest Corporation. The Company presented the reorganization to
Company's shareholders and gained approval at a special shareholders' meeting in
August, 1999. At the close of business November 5, 1999, the Stagecoach Balanced
and Stagecoach Asset Allocation Funds were reorganized into the Wells Fargo
Asset Allocation Fund. The Stagecoach Diversified Equity Income Fund and Norwest
Advantage Income Equity Funds were reorganized into the Wells Fargo Equity
Income Fund. The Stagecoach Equity Index Fund was reorganized to form the Wells
Fargo Equity Index Fund. The Stagecoach Equity Value Fund was reorganized into
the Wells Fargo Equity Value Fund. The Stagecoach Growth Fund and Norwest
Advantage ValuGrowth Stock Funds were reorganized into the Wells Fargo Growth
Fund. The Stagecoach International Equity Fund was reorganized into the Wells
Fargo International Equity Fund. The Stagecoach Small Cap Fund, Stagecoach
Strategic Growth Fund and Norwest Advantage Small Company Stock Funds were
reorganized into the Wells Fargo Small Cap Growth Fund. These financial
statements are applicable to the Wells Fargo Funds having former Stagecoach
Funds as accounting survivors. Please see your Wells Fargo Funds prospectus for
details about your Fund.
176
<PAGE>
INDEPENDENT AUDITORS' REPORT Equity Funds
- ------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Stagecoach Funds, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the Balanced Fund, Diversified
Equity Income Fund, Equity Index Fund, Equity Value Fund, Growth Fund,
International Equity Fund, Small Cap Fund and Strategic Growth Fund (eight of
the funds comprising Stagecoach Funds, Inc.) as of September 30, 1999, and the
related statements of operations for the year ended September 30, 1999, the
statements of changes in net assets for the year ended September 30, 1999, the
six months ended September 30, 1998, and the year ended March 31, 1998 (for all
funds except the International Equity Fund, which is for the year ended
September 30, 1999, the six months ended September 30, 1998, and the period from
September 24, 1997 (commencement of operations) to March 31, 1998, and the
Strategic Growth Fund, which is for the year ended September 30, 1999, the nine
months ended September 30, 1998 and the year ended December 31, 1997), 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 Balanced Fund
and Equity Value Fund, all years or periods indicated in the accompanying
financial highlights ending prior to October 1, 1995 were audited by other
auditors whose reports dated November 15, 1995, and November 22, 1994, expressed
unqualified opinions on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require 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
September 30, 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 September 30, 1999,
the results of their operations, the changes in their net assets, and their
financial highlights for the periods indicated herein, except as noted above, in
conformity with generally accepted accounting principles.
[KPMG LLP SIGNATURE]
San Francisco, California
November 8, 1999
177
<PAGE>
NOTICE TO SHAREHOLDERS
- ------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS (UNAUDITED)
For the tax period from January 1, 1999 through September 30, 1999, the
remaining funds reflected in this annual report have tax year-ends other than
September 30, 1999. Each fund of the specified funds below has designated long
term capital gains and exempt income with regard to distributions paid during
the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM CAPITAL ORDINARY INCOME (C) (D)
GAINS DISTRIBUTIONS DISTRIBUTIONS TOTAL DISTRIBUTIONS QUALIFYING
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equity Index Fund 0% 100% 100% 88%
Equity Value Fund 0% 100% 100% 93%
International Equity Fund 0% 100% 100% 0%
</TABLE>
* ITEMS IN COLUMNS (A) AND (B) ARE BASED ON A PERCENTAGE OF THE FUND'S TOTAL
DISTRIBUTION.
** ITEMS IN COLUMN (D) ARE BASED ON A PERCENTAGE OF ORDINARY INCOME
DISTRIBUTION OF THE PORTFOLIO.
*** IN ITEM (D), QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE
CORPORATE DIVIDENDS RECEIVED DEDUCTION.
The information above is for the funds' tax period January 1, 1999 through
September 30, 1999 as required by federal laws. Shareholders must report
distributions on a calendar year basis for income tax purposes which may include
distributions for portions of two tax periods of the fund. The information
needed by shareholders for income tax purposes will be sent to them in early
2000. Please consult your tax advisor for proper treatment of this information.
178
<PAGE>
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS (UNAUDITED)
- ------------------------------------------------------------------------
SHAREHOLDERS' MEETING AND PROXY VOTING RESULTS (UNAUDITED)
The required majority of shareholders of each Fund voted to approve the
reorganization of their Fund into a Fund of the Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Fund
family and the Norwest Advantage Fund family after the merger of Wells Fargo &
Company and Norwest Corporation in November, 1998. Under the reorganization,
each of the Equity Funds listed below will transfer all of its assets and
liabilities to a corresponding Wells Fargo Funds Trust Fund.
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAIN
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
Balanced Fund 3,771,256 119,333 119,856
Diversified Equity Income Fund 7,635,316 73,232 180,697
Equity Index Fund 4,322,461 244,392 306,609
Equity Value Fund 12,153,491 115,245 311,458
Growth Fund 10,879,359 285,944 688,271
International Equity Fund 2,840,421 61,462 166,012
Small Cap Fund 1,072,210 17,271 47,607
Strategic Growth Fund 3,108,216 61,808 123,116
</TABLE>
179
<PAGE>
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180
<PAGE>
LIST OF ABBREVIATIONS
- ------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which
may have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
CONNIE LEE -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PLC -- Private Placement
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
WEBS -- World Equity Benchmark Shares
</TABLE>
181
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
182
<PAGE>
Wells Fargo Bank, N.A. provides investment advisory services, shareholder
services and/ or certain other services for the Stagecoach Funds. Wells
Capital Management Incorporated ("WCM") provides investment sub-advisory
services for certain Stagecoach Funds. The Funds are distributed by STEPHENS
INC., Member NYSE/SIPC. Wells Fargo Bank, N.A. and WCM are not affiliated
with Stephens Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Stagecoach Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-260-5969. Read the prospectus carefully before you invest or send
money.
-C- Stagecoach Funds
STAGECOACH FUNDS-Registered Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
LOGO SC EQ AR (11/99)
