<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Annual Report
MONEY MARKET
Funds
California Tax-Free Money Market Fund
Government Money Market Fund
Money Market Fund
National Tax-Free Money Market Fund
Prime Money Market Fund
Treasury Plus Money Market Fund
March 31, 1999
<PAGE>
Money Market Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
INVESTMENT ADVISOR COMMENTARY AND
PERFORMANCE AT A GLANCE
Government Money Market Fund.................................3
Money Market Fund............................................3
Prime Money Market Fund......................................3
Treasury Plus Money Market Fund..............................3
California Tax-Free Money Market Fund........................6
National Tax-Free Money Market Fund..........................6
PORTFOLIOS OF INVESTMENTS
California Tax-Free Money Market Fund........................9
Government Money Market Fund................................24
Money Market Fund...........................................26
National Tax-Free Money Market Fund.........................33
Prime Money Market Fund.....................................39
Treasury Plus Money Market Fund.............................43
STAGECOACH FUNDS
Statement of Assets and Liabilities.........................46
Statement of Operations.....................................48
Statements of Changes in Net Assets.........................50
Financial Highlights........................................54
Notes to Financial Statements...............................71
INDEPENDENT AUDITORS' REPORT....................................83
LIST OF ABBREVIATIONS...........................................86
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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ii
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LETTER TO SHAREHOLDERS Money Market Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
We're pleased to provide you with this annual report for the period ended
March 31, 1999. The report provides information about your investment over the
12-month period, including economic and market trends, a performance summary, a
portfolio review and a strategic outlook.
The Stagecoach Funds experienced another year of significant growth, with net
assets increasing from $25 billion to $29 billion during the 12-month period
ended March 31, 1999. We believe our success can be partly attributed to the
confidence and support of our shareholders generated by the continued positive
performance of many of the Funds. Of course, we'll do our best to provide
prudent management to maintain and earn that confidence.
The 12-month period that ended March 31, 1999 was marked by significant
volatility. Stocks marched steadily upward early in the period, but later
surrendered some of those gains during a sell-off in the stock market last
summer. Last summer and fall, global financial turmoil disrupted the U.S.
financial markets, but the economy still benefited from overseas flight to
capital and aggressive monetary easing by the Federal Reserve Board that drove
interest rates down to historic lows. By the end of the year, the stock market
had set new highs as broad stock indexes were propelled higher by a series of
upbeat earnings reports, and the economy's two-tiered performance produced solid
economic growth. Overall, bond yields are significantly lower than they were a
year ago, and fundamentals still point toward healthy growth during the balance
of 1999. The combination of subdued inflation, moderating economic growth and
strong foreign demand should set the stage for lower interest rates.
During the 12-month period ended March 31, 1999, stocks, as measured by the
S&P 500 Index,(1) returned 18.49%. The U.S. Government bond market increased
1
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Money Market Funds LETTER TO SHAREHOLDERS
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7.01% as measured by the Lehman Brothers Long Government Bond Index(2) during
the period. Most shorter-dated money market yields dropped late in the period,
while yields on longer-dated papers rose.
According to the Investment Company Institute, an estimated 44 million U.S.
households, or 77.3 million individual investors, owned mutual funds in 1998.
Many of these investors have benefited from unprecedented growth in the market.
While the latest signs of economic strength are positive, investors should
manage their expectations. The challenges of investing in today's markets make
mutual funds one of the most popular investment vehicles. We recommend that you
continually review your investment portfolio with your financial consultant to
determine an appropriate mix of investments to meet your ongoing needs.
Over the years, the Stagecoach Funds have built a reputation for innovation,
leadership and commitment to investors. We understand you have a variety of
investment options and we appreciate your confidence in selecting us to help you
meet your financial goals. Thank you again for your continued investment with
the Stagecoach Funds.
Sincerely,
/s/ Michael J. Hogan
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
/s/ R. Greg Feltus
R. Greg Feltus
Chairman and President of
Stagecoach Funds
1 The "S&P 500 Index" is a trademark of the Standard and Poor's Corporation. The
S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
2 The Lehman Brothers Long Government Bond Index is an unmanaged index composed
of U.S. Treasury bonds with 20-year or longer maturities.
2
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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GOVERNMENT MONEY MARKET FUND - CLASS A
MONEY MARKET FUND - CLASS A
PRIME MONEY MARKET FUND - CLASS A
TREASURY PLUS MONEY MARKET FUND - CLASS A
FOUR STAGECOACH MONEY MARKET FUNDS (EACH, A "FUND," COLLECTIVELY, THE "FUNDS")
WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach Government Money Market Fund seeks to provide investors with as
high a level of current income as is consistent with preservation of capital and
liquidity.
The Stagecoach Money Market Fund seeks to provide investors with a high level
of income, while preserving capital and liquidity, by investing in high-quality,
short-term instruments.
The Stagecoach Prime Money Market Fund seeks to provide investors with
maximized current income to the extent consistent with preservation of capital
and maintenance of liquidity.
The Stagecoach Treasury Plus Money Market Fund seeks to provide investors with
current income and stability of principal. The name of the Fund changed from
Stagecoach Treasury Money Market Mutual Fund on August 1, 1998.
The Funds are managed by Michael Neitzke of Wells Capital Management
Incorporated. Mr. Neitzke joined Wells Fargo Bank in 1996 from First Interstate
Capital Management. He has more than a decade of experience in managing taxable
money market mutual funds at First Interstate Bank and Union Capital Advisors.
He holds a B.A. in Finance from California State University, Los Angeles.
3
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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PERFORMANCE SUMMARY
For the 12-month period ending March 31, 1999, the Stagecoach Money Market
Funds' cumulative total returns were as follows:
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<TABLE>
<S> <C>
GOVERNMENT MONEY MARKET FUND 4.68%
MONEY MARKET FUND 4.79%
PRIME MONEY MARKET FUND 4.83%
TREASURY PLUS MONEY MARKET FUND 4.62%
</TABLE>
The seven-day current yields for the Stagecoach Money Market Funds as of March
31, 1999, were as follows:
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<TABLE>
<S> <C>
GOVERNMENT MONEY MARKET FUND 4.26%
MONEY MARKET FUND 4.27%
PRIME MONEY MARKET FUND 4.29%
TREASURY PLUS MONEY MARKET FUND 4.24%
</TABLE>
Keep in mind that past performance is no guarantee of future results.
PORTFOLIO REVIEW
Throughout the period, there were several events that affected the financial
markets. Perhaps the most significant was the series of interest rate cuts by
the Federal Reserve Board (the Fed) late in 1998. These cuts were a result of
serious credit/liquidity problems overseas and problems with several large U.S.
hedge funds. It was clear the Fed was committed to maintaining liquidity in the
markets by lowering interest rates. By adding later-dated securities to our
portfolios, we were able to maintain competitive yields in the low interest rate
environment.
The Funds always maintain a core position in repurchase agreements and other
short-dated securities when they are trading at the upper end of their expected
range.
STRATEGIC OUTLOOK
With international and domestic markets relatively stable and inflation under
control, interest rates are expected to remain in a fairly narrow trading range.
However, as proven in late 1998, the Fed stands ready to
4
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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provide necessary liquidity by further lowering interest rates if global markets
continue to experience credit/ liquidity problems.
The Funds are well positioned given current international economic conditions
and low interest rates. We believe interest rates may remain unchanged at least
until year-end, and we will maintain the Funds' longer than average maturity
structure. We believe it's prudent to focus more on credit quality, stability,
capital preservation and liquidity, rather than purely on yield.
Figures quoted represent past performance, which is no guarantee of future
results. The Funds are neither insured nor guaranteed by the U.S. Government.
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Funds' returns would have been lower. There is no guarantee such reductions
will continue.
An investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Funds.
5
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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CALIFORNIA TAX-FREE MONEY MARKET FUND - CLASS A
NATIONAL TAX-FREE MONEY MARKET FUND - CLASS A
TWO STAGECOACH TAX-FREE MONEY MARKET FUNDS (EACH, A "FUND," COLLECTIVELY, THE
"FUNDS") WILL BE HIGHLIGHTED IN THE FOLLOWING MANAGER DISCUSSION AND ANALYSIS.
The Stagecoach California Tax-Free Money Market Funds seeks to obtain a high
level of income exempt from federal income tax and California personal income
tax, while preserving capital and liquidity, by investing in high-quality,
short-term, U.S. dollar-denominated money market instruments, primarily
municipal obligations.
The Stagecoach National Tax-Free Money Market Fund seeks to provide investors
with a high level of income exempt from federal income tax, while preserving
capital and liquidity.
The California Tax-Free Money Market Fund is managed by Kevin Shaughnessy of
Wells Capital Management Incorporated. Mr. Shaughnessy joined Wells Fargo Bank
in 1996 from Lehman Brothers. He holds a B.S. degree in Business Administration
and an M.B.A. in Finance from California State University, Hayward. Mr.
Shaughnessy has more than 10 years of experience in the investment industry and
is a Chartered Financial Analyst candidate.
As of January 1999, the National Tax-Free Money Market Fund is managed by Mary
Gail Walton. The Fund was previously managed by Mr. Shaughnessy. Before joining
Wells Capital Management, Ms. Walton was employed at Dean Witter Reynolds, Inc.
and Ragen MacKenzie, Inc. Her career spans 14 years and includes extensive
experience in tax-exempt portfolio management. She received a B.A. from the
University of Washington and is a candidate for the Chartered Financial Analyst
designation. She is a member of the Association for Investment Management and
Research (AIMR) and the Security Analysts of San Francisco.
6
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INVESTMENT ADVISOR COMMENTARY Money Market Funds
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PERFORMANCE SUMMARY
The cumulative total returns for the 12-month period ended March 31, 1999, for
the Stagecoach Tax-Free Money Market Funds were as follows:
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<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 2.49%
NATIONAL TAX-FREE MONEY MARKET FUND 2.60%
</TABLE>
The seven-day current yields for the Stagecoach Tax-Free Money Market Funds as
of March 31, 1999, were as follows:
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<TABLE>
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 2.23%
NATIONAL TAX-FREE MONEY MARKET FUND 2.46%
</TABLE>
These tax-free yields are generally higher than the after-tax return on a
comparable taxable investment. For example, an investor in the maximum combined
federal and California income tax bracket of 45.22% would need to earn 4.07%
from a taxable investment to match a 2.23% tax-free yield. In order to match a
2.46% tax-free yield, an investor in the maximum 39.60% federal income tax
bracket would need to earn 4.07% on a taxable investment. Keep in mind that past
performance is no guarantee of future results.
PORTFOLIO REVIEW
As a result of the low interest rate environment and in anticipation of an
interest rate decrease by the Federal Reserve Board, we lengthened each Fund's
weighted average maturity early in the 12-month period. Weighted average
maturity is an indication of a fund's sensitivity to interest rates. In
addition, California's economy was strong last June and the state was
experiencing a budget surplus. As a result, the issuance of short-term one-year
notes dropped off significantly.
Considering seasonal influences in the market, our strategy to increase
maturity early in the period was made in an attempt to capture higher yields
offered by securities such as one-year tax-exempt notes and commercial paper. In
addition, we decreased our exposure to
7
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Money Market Funds INVESTMENT ADVISOR COMMENTARY
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variable-rate securities. During the first quarter of 1999, most shorter-dated
money market yields dropped, while yields on longer-dated paper rose. Yields
were lower in January and February, while slightly higher in March. In
anticipation of shareholders drawing on their funds during tax season, we
shortened maturities late in the period.
STRATEGIC OUTLOOK
Since yields have already declined in the money fund market, we will continue
to maintain longer maturities in our Funds and will increase our fixed-rate
exposure if we feel security prices are attractive. We believe the Federal
Reserve Board will remain neutral in its outlook toward interest rates. With the
expectation that short-term issuance of notes will remain thin, we will focus on
maintaining our strong position in liquid paper to handle cash outflows.
Overall, we feel the Funds are positioned well given the international
economic condition and low interest rate environment. We intend to maintain our
emphasis on preservation of principal, high liquidity, credit quality and the
highest possible tax-exempt returns for our clients.
Figures quoted represent past performance, which is no guarantee of future
results. The Funds are neither insured nor guaranteed by the
U.S. Government.
A portion of the Funds' distributions may be subject to federal, state, and/or
local taxes or the alternative minimum tax (AMT).
The Funds' manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions,
the Funds' returns would have been lower. There is no guarantee such reductions
will continue.
An investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Funds.
8
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PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 96.91%
$ 8,176,000 ABN Amro Munitops COP - 1998-25 3.10 % 07/05/06 $ 8,176,000
17,995,000 ABN Amro Munitops COP 1998-20 3.05 07/05/06 17,995,000
14,620,000 Alameda CA School Finance Authority Revenue
Series B 2.55 07/01/16 14,620,000
1,700,000 Alhambra CA IDA Sunclipse LOC - Bank of America 2.60 05/01/07 1,700,000
3,405,000 Anaheim CA COP Police Facilities 2.70 08/01/08 3,405,000
1,700,000 Anaheim CA HFA AMT 2.70 07/15/20 1,700,000
25,000,000 Anaheim CA Housing Revenue LOC - Citibank AMT 3.00 12/15/23 25,000,000
7,100,000 Anaheim CA Public Improvement COP LOC -
Industrial Bank of Japan Limited 2.70 08/01/19 7,100,000
3,000,000 Barstow CA MFHR Desert Vista Apartments LOC -
Federal Home Loan Bank of San Francisco 2.80 12/01/20 3,000,000
4,200,000 Big Bear Lake CA Industrial Revenue Southwest
Gas Corporation AMT Series A LOC - Union Bank
of Switzerland 2.80 12/01/28 4,200,000
45,000,000 California Community College Financing
Authority Revenue 2.90 09/30/99 45,000,000
4,000,000 California Educational Facilities 2.60 10/01/22 4,000,000
4,390,000 California Educational Facilities Authority
Revenue 2.60 10/01/15 4,390,000
5,565,000 California HFA Revenue AMT 3.00 02/01/00 5,565,000
2,100,000 California HFFA 2.65 07/15/13 2,100,000
4,000,000 California HFFA 2.70 07/01/12 4,000,000
6,650,000 California HFFA 2.70 07/01/20 6,650,000
26,700,000 California HFFA 2.70 07/01/22 26,700,000
10,000,000 California HFFA 2.75 10/01/22 10,000,000
16,000,000 California HFFA Nonprofit Corporation Catholic
Healthcare MBIA Insured 2.70 07/01/12 16,000,000
700,000 California HFFA Revenue Catholic Healthcare
Series A MBIA Insured 2.70 07/01/21 700,000
</TABLE>
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<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 7,185,000 California HFFA Revenue Catholic Healthcare
Series A MBIA Insured 2.70 % 07/01/06 $ 7,185,000
1,000,000 California HFFA Series B FNMA Collateralized 2.65 07/15/13 1,000,000
1,200,000 California HFFA Series C FNMA Collateralized 2.65 07/15/13 1,200,000
4,250,000 California Housing Finance Agency 3.05 08/01/26 4,250,000
3,800,000 California PCR AMT 2.75 12/01/16 3,800,000
1,900,000 California PCR AMT 2.90 01/01/10 1,900,000
5,000,000 California PCR Financing Authority 2.70 09/01/17 5,000,000
8,750,000 California PCR Statewide Development Authority
Revenue 2.70 05/03/99 8,750,000
7,000,000 California Revenue Wateruse Finance Authority 2.70 05/01/28 7,000,000
100,000,000 California School Cash Reserve Program
Authority Series A 4.50 07/02/99 100,184,505
1,000,000 California School Facilities 2.75 07/01/22 1,000,000
7,325,000 California School Facilities COP 2.75 07/01/22 7,325,000
2,700,000 California School Facilities Financing
Corporation Series B Bayerische 2.75 07/01/24 2,700,000
14,365,000 California State 2.90 02/01/15 14,365,000
5,000,000 California State 3.00 04/01/08 5,000,000
78,100,000 California State Community 2.90 09/30/99 78,100,000
11,000,000 California State COP Series 55 FGIC Insured 2.92 02/01/13 11,000,000
45,000 California State Custodial
Receipt CR-152 2.91 11/01/24 45,000
4,955,000 California State Custodial
Receipt CR-152D 2.91 11/01/24 4,955,000
265,000 California State Custodial
Receipt CR-153 2.91 11/01/24 265,000
11,675,000 California State Custodial
Receipt CR-153D 2.91 11/01/24 11,675,000
9,000,000 California State Development Authority Revenue
Series A 2.85 10/01/26 9,000,000
</TABLE>
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PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 4,950,000 California State Eagle Trust Private Placement 2.91 % 09/01/03 $ 4,950,000
15,000,000 California State GO 2.75 05/03/99 15,000,000
2,000,000 California State Health Facility Finance
Authority Revenue Series D 2.70 07/01/18 2,000,000
2,000,000 California State HFA Home Mortgage Revenue MBIA
Insured 2.95 08/01/10 2,000,000
2,600,000 California State HFFA Adventist Health System
LOC Toronto Dominion Bank 2.60 08/01/21 2,600,000
13,100,000 California State HFFA Catholic West Hospital
Series B MBIA Insured 2.70 07/01/05 13,100,000
7,100,000 California State HFFA Childrens Hospital MBIA
Insured 2.70 11/01/21 7,100,000
12,100,000 California State HFFA Memorial Health Services 2.85 10/01/24 12,100,000
9,000,000 California State HFFA Revenue Catholic
Healthcare West MBIA Insured 2.70 07/01/09 9,000,000
7,500,000 California State HFFA Revenue Catholic
Healthcare West Series C MBIA Insured 2.70 07/01/11 7,500,000
8,270,000 California State HFFA Revenue Scripps Memorial
Hospital Series B 2.70 12/01/15 8,270,000
1,100,000 California State HFFA Santa Barbara Cottage LOC
Credit Suisse 2.60 09/01/15 1,100,000
1,060,000 California State HFFA St Joseph Health Center
Series A 2.95 07/01/13 1,060,000
500,000 California State HFFA St Joseph's Health
Systems Series B 2.95 07/01/09 500,000
16,300,000 California State PCFA Pacific Gas & Electric
Series A AMT 2.70 12/01/16 16,300,000
500,000 California State PCFA Resources Recovery
Revenue LOC - Banque Nationale de Paris AMT 3.20 09/01/18 500,000
</TABLE>
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<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 6,000,000 California State PCFA Sanger Project Series
90-A LOC - Credit Suisse 2.80 % 09/01/20 $ 6,000,000
11,000,000 California State PCFA Solid Waste Disposal
Revenue Colmac Energy Project Series A LOC -
Swiss Bank AMT 2.80 12/01/16 11,000,000
700,000 California State PCFA Solid Waste Disposal
Revenue Colmac Energy Project Series B LOC -
Swiss Bank AMT 2.80 12/01/16 700,000
600,000 California State PCFA Southern California
Edison Series C 3.30 02/28/08 600,000
4,200,000 California State PCR CP 2.70 04/08/99 4,200,000
4,500,000 California State Public Works 2.91 09/01/17 4,500,000
159,360,000 California State Revenue Antic Notes 4.00 06/30/99 159,765,266
5,000,000 California State Rural Water Financing
Authority Public Projects Construction 4.25 03/01/00 5,051,058
16,900,000 California State Series A5 2.95 12/01/16 16,900,000
1,000,000 California Statewide Authority Revenue COP John
Muir AMBAC Insured 2.95 08/15/27 1,000,000
2,700,000 California Statewide CDA Barton Hospital LOC -
Banque Nationale de Paris 2.85 12/01/09 2,700,000
1,000,000 California Statewide CDA St Joseph Health
System 2.60 07/01/08 1,000,000
5,000,000 Camarillo CA MFHR Heritage Park 2.70 07/15/19 5,000,000
16,420,000 Camarillo CA Revenue AMT 3.05 10/15/26 16,420,000
17,045,000 Central Valley School Financing Authority Tax
Revenue 3.50 01/27/00 17,138,909
5,000,000 Chula Vista CA GO 2.45 05/05/99 5,000,000
6,000,000 Chula Vista CA GO 2.75 05/03/99 6,000,000
8,000,000 Chula Vista CA GO 2.80 06/10/99 8,000,000
900,000 Chula Vista CA IDA Revenue Daily
San Diego Gas & Electric 3.00 07/01/21 900,000
</TABLE>
12
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PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
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<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$10,700,000 Chula Vista CA IDR San Diego Gas & Electric 2.80 % 12/01/27 $ 10,700,000
1,700,000 Chula Vista CA Industrial Development Revenue
San Diego Gas & Electric Series B 3.35 12/01/21 1,700,000
3,300,000 Chula Vista CA MFHR Series A 2.70 03/01/05 3,300,000
5,100,000 Colton CA RDFA Las Palomas Associates Project
LOC - Bank of America 2.60 11/01/15 5,100,000
500,000 Colton CA RDFA MFHR LOC - Federal Home Loan
Bank of San Francisco 2.50 05/01/10 500,000
1,100,000 Concord CA MFHR Bel Air Apartments LOC - Bank
of America AMT 2.80 12/01/16 1,100,000
3,000,000 Contra Costa County CA 2.70 11/15/12 3,000,000
3,000,000 Contra Costa County CA GO 2.65 05/04/99 3,000,000
745,000 Contra Costa County CA MFHR El Cerrito Royale
LOC - Bank of America 2.80 12/01/17 745,000
1,400,000 Contra Costa County CA School Finance Authority
Revenue Series C 2.55 07/01/25 1,400,000
2,000,000 Duarte CA RDFA COP Johnson Duarte Partners
Project Series B LOC - Bank of America 2.90 12/01/14 2,000,000
2,200,000 Dublin CA Housing 2.85 06/01/28 2,200,000
26,100,000 Eagle Trust Series 94 MBIA Insured 2.91 09/01/03 26,100,000
1,300,000 East Side Santa Clara County Unified High
School District Tax Revenue Antic Notes 4.25 10/01/99 1,307,792
2,700,000 Eastern Municipal Water District CA Revenue
Series B FGIC Insured 2.70 07/01/20 2,700,000
4,400,000 Escondido CA CDA LOC - Bank of America AMT 2.80 10/01/16 4,400,000
150,000 Fairfield CA IDA Herman G Rowland Project LOC -
Bank of America 2.75 04/01/05 150,000
</TABLE>
13
<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$17,500,000 Foothill/Eastern CA Transportation Corridor
Agency Toll Road Revenue LOC - Banque
National de Paris 2.75 % 01/02/35 $ 17,500,000
1,000,000 Foothill/Eastern CA Transportation Corridor
Agency Toll Road Revenue Series B LOC -
Morgan Guaranty Trust 2.70 01/02/35 1,000,000
1,200,000 Foothill/Eastern CA Transportation Corridor
Agency Toll Road Revenue Series C LOC -
Credit Suisse 2.70 01/02/35 1,200,000
1,000,000 Foothill/Eastern CA Transportation Corridor
Toll Road Development Series D LOC -
Industrial Bank of Japan Ltd 2.75 01/02/35 1,000,000
1,100,000 Fowler CA IDA Bee Sweet Citrus Incorporated LOC
- Bank of America AMT 2.90 12/01/05 1,100,000
2,000,000 Fremont CA COP 2.60 08/01/28 2,000,000
6,800,000 Fullerton CA IDA Sunclipse Incorporated LOC -
Bank of America 2.60 07/01/15 6,800,000
7,050,000 Hayward CA Housing Authority 2.70 06/15/25 7,050,000
9,000,000 Hayward CA MFHR FGIC Insured 2.70 08/01/14 9,000,000
3,605,000 Huntington Beach CA MFHR Seabridge Villas LOC -
Bank of America 4.00 02/01/10 3,605,000
1,500,000 Irvine CA IDA Irvine East Investment Company
LOC - Bank of America 2.60 12/01/05 1,500,000
1,000,000 Irvine CA Improvement Bond Act 1915 3.00 09/02/23 1,000,000
8,200,000 Irvine CA Public Facilities & Infrastructure
Authority Lease Revenue Capital Improvement
Project 2.55 11/01/10 8,200,000
</TABLE>
14
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 1,000,000 Irvine Ranch CA Water District 3.00 % 09/01/06 $ 1,000,000
400,000 Irvine Ranch CA Water District 3.00 11/15/13 400,000
1,100,000 Irvine Ranch CA Water District LOC -
Commerzbank AG 3.00 01/01/21 1,100,000
800,000 Irvine Ranch CA Water District Consolidated
Bonds 3.00 10/01/05 800,000
1,800,000 Kern County CA COP Public Facilities Project
Series D 2.70 08/01/06 1,800,000
100,000 Lancaster CA HFA MFHR Westwood Park Apartments
LOC - Bank of America 2.60 12/01/07 100,000
5,100,000 Livermore MFHR 2.65 07/15/18 5,100,000
10,000,000 Long Beach CA CP 2.45 05/05/99 10,000,000
3,000,000 Long Beach CA GO 2.70 05/03/99 3,000,000
4,000,000 Los Angeles CA DW&P 2.70 06/11/99 4,000,000
15,200,000 Los Angeles CA GO 2.65 05/04/99 15,200,000
500,000 Los Angeles CA MFHR 2.75 07/01/14 500,000
1,800,000 Los Angeles CA MFHR Masselin Manor LOC - Bank
of America 2.75 07/01/15 1,800,000
22,875,000 Los Angeles CA MFHR Sand Canyon Ranch Project F 2.65 05/04/99 22,875,000
1,100,000 Los Angeles CA MFHR Series B LOC - Federal Home
Loan Bank of San Francisco AMT 3.25 12/01/26 1,100,000
200,000 Los Angeles CA Pension Obligation Series C
AMBAC Insured 2.70 06/30/07 200,000
13,700,000 Los Angeles CA Pension Obligation Series B
AMBAC Insured 2.70 06/30/07 13,700,000
9,800,000 Los Angeles CA USD 2.75 12/01/17 9,800,000
31,000,000 Los Angeles CA USD Series A26, Regulation D 2.90 10/01/99 31,000,000
22,875,000 Los Angeles CA USD Series A26, Regulation D 3.20 07/01/23 22,875,000
100,000,000 Los Angeles County CA 4.50 06/30/99 100,197,060
14,800,000 Los Angeles County CA HFA MFHR Park Sierra LOC
- Citibank AMT 2.80 12/01/08 14,800,000
</TABLE>
15
<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 6,900,000 Los Angeles County CA HFA MFHR Sand Canyon
Ranch Project LOC - Citibank 2.70 % 11/01/06 $ 6,900,000
14,600,000 Los Angeles County CA Metropolitan
Transportation Authority Sales Tax Revenue
Series A 2.70 07/01/20 14,600,000
7,245,000 Los Angeles County CA Metropolitan
Transportation Authority Sales Tax Revenue
Series 106 FSA Insured 2.88 07/01/28 7,245,000
32,600,000 Los Angeles County CA Pension Obligation Series
A AMBAC Insured 2.70 06/30/07 32,600,000
7,710,000 Los Angeles County CA Public Works Financing
Authority Lease Revenue Series 114 2.91 12/01/29 7,710,000
16,300,000 Los Angeles County CA Transportation Commission
Sales Tax Revenue FGIC Insured 2.70 07/01/12 16,300,000
10,000,000 Los Angeles DW&P 2.75 06/10/99 10,000,000
19,000,000 Los Angeles DW&P 2.80 05/04/99 19,000,000
5,200,000 Modesto CA MFHR Westdale Commons Apartments LOC
- Federal Home Loan Bank of San Francisco 2.80 12/01/15 5,200,000
2,900,000 Montebello CA LOC - Bank of America 2.60 04/01/15 2,900,000
2,900,000 Monterey County CA Financing Authority Revenue 2.80 09/01/36 2,900,000
8,700,000 Moorpark CA MFHR Le Club Apartments LOC -
Citibank 2.75 11/01/15 8,700,000
8,800,000 Ontario CA MFHR Park Centre Apartments LOC -
Bank of New York 2.60 08/01/07 8,800,000
6,700,000 Orange County CA GO 2.80 06/15/28 6,700,000
900,000 Orange County CA Apartment Development Revenue
Series U 2.75 11/01/09 900,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$10,000,000 Orange County CA Apartment Development Series 2
FNMA Collateralized 2.80 % 11/15/28 $ 10,000,000
2,000,000 Orange County CA GO 2.70 05/03/99 2,000,000
5,000,000 Orange County CA GO 2.80 05/04/99 5,000,000
11,500,000 Orange County CA HFA Bear Brand Apartments
Prozect Series Z LOC - Fuji Bank Limited 2.90 11/01/07 11,500,000
7,249,000 Orange County CA HFA Harbor Pointe Apartment
Issue D LOC - Citibank 2.80 12/01/06 7,249,000
3,200,000 Orange County CA HFA Monarch Bay Apartments LOC
- Mitsubishi Bank Limited 2.60 10/01/07 3,200,000
2,700,000 Orange County CA HFA Niguel Summit Apartment
LOC - Bank of America 2.60 11/01/09 2,700,000
11,000,000 Orange County CA HFA Seaside Meadow Apartments
Series C LOC - Bank of America 2.90 08/01/08 11,000,000
22,800,000 Orange County CA HFA The Lakes Apartments LOC -
Citibank 2.80 12/01/06 22,800,000
500,000 Orange County CA Sanitation District LOC -
National Westminster Bank Plc 3.00 08/01/15 500,000
29,200,000 Orange County CA Sanitation District Multiple
Credit Enhancements 2.70 08/01/13 29,200,000
2,700,000 Rancho CA Water Distribution Financing
Authority Revenue Series A FGIC Insured 2.70 08/15/29 2,700,000
2,000,000 Rancho Mirage CA RDA #144 AMT 3.00 10/01/16 2,000,000
2,335,000 Redlands CA COP Water Treatment Facilities
Project FGIC Insured 2.75 09/01/15 2,335,000
3,200,000 Redlands CA Housing Parkview Terrace Series A 2.75 02/01/16 3,200,000
3,940,000 Riverside County CA 2.65 07/15/18 3,940,000
9,943,000 Riverside County CA 2.75 12/01/15 9,943,000
</TABLE>
17
<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$20,000,000 Riverside County CA 2.90 % 09/30/99 $ 20,000,000
35,000,000 Riverside County CA 4.50 09/30/99 35,210,257
1,800,000 Riverside County CA COP Series C 2.70 12/01/15 1,800,000
5,400,000 Riverside County CA COP Series D 2.75 12/01/15 5,400,000
10,000,000 Riverside County CA MFHR Woodcreek D 2.80 05/04/99 10,000,000
6,600,000 Sacramento County CA Administration Center &
Courthouse Project LOC - Union Bank of
Switzerland 2.50 06/01/20 6,600,000
2,760,000 Sacramento County CA Airport Systems Revenue
Prerefunded AMBAC Insured 7.00 07/01/20 2,840,548
24,000,000 Sacramento County CA Series A28, Regulation D 2.90 09/30/99 24,000,000
5,000,000 San Bernardino CA Alta Loma Apartments LOC -
Federal Home Loan Bank of Atlanta 2.90 02/01/23 5,000,000
1,050,000 San Bernardino County CA IDA Transamerican
Plastics LOC - National Westminster Bank AMT 2.75 12/01/06 1,050,000
2,185,000 San Bernardino County CA MFHR LOC - Federal
Home Loan Bank of San Francisco 2.90 05/01/17 2,185,000
4,925,000 San Bernardino County CA MFHR Series A LOC -
Federal Home Loan Bank of San Francisco 2.90 05/01/17 4,925,000
400,000 San Bernardino County CA MFHR Western
Properties Project II LOC - Bank of America 2.60 05/01/05 400,000
700,000 San Bernardino County CA MFHR Western
Properties Project III LOC - Bank of America 2.60 08/01/05 700,000
100,000 San Bernardino County CA MFHR Western
Properties Project IV LOC - Bank of America 2.60 08/01/05 100,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$54,000,000 San Diego CA COP 2.90 % 09/30/99 $ 54,000,000
4,300,000 San Diego CA Housing Authority Revenue LOC -
Citibank 2.75 12/01/08 4,300,000
2,920,000 San Diego CA MFHR La Cima Apartments LOC -
Citibank 2.75 12/01/08 2,920,000
3,500,000 San Diego CA Multi Family Apartments LOC - Bank
of America 2.80 10/01/15 3,500,000
15,700,000 San Diego CA Transportation Revenue 2.60 05/03/99 15,700,000
9,400,000 San Diego County CA GO 2.60 05/03/99 9,400,000
1,000,000 San Diego County CA GO 2.90 07/22/99 1,000,000
1,419,000 San Diego Port CA GO 2.85 05/03/99 1,419,000
2,000,000 San Diego Port CA GO 2.90 05/04/99 2,000,000
8,965,000 San Diego Port CA GO 2.95 07/21/99 8,965,000
8,010,000 San Francisco CA City & County Finance
Authority Revenue 2.80 09/01/06 8,010,000
19,940,000 San Francisco CA CP 2.60 04/12/99 19,940,000
10,000,000 San Francisco CA GO 3.05 01/01/27 10,000,000
17,700,000 San Francisco CA MFHR Filmore Center Apartments
LOC - Bank of Nova Scotia 2.75 12/01/17 17,700,000
5,750,000 San Francisco CA MFHR Filmore Center Apartments
LOC - Bank of Nova Scotia 2.85 12/01/17 5,750,000
14,500,000 San Francisco CA MFHR Filmore Center Apartments
LOC - Citibank 2.75 12/01/17 14,500,000
3,000,000 San Francisco CA MFHR Filmore Center Apartments
LOC - Citibank 2.85 12/01/17 3,000,000
13,550,000 San Francisco CA MFHR Winterland Project LOC -
Citibank 2.70 06/01/06 13,550,000
14,820,000 San Francisco CA RDFA MFHR Rincon Center LOC -
Citibank 2.70 12/01/06 14,820,000
8,000,000 San Francisco County CA International Airport
COP Series 31 FGIC Insured 2.92 05/01/29 8,000,000
3,150,000 San Jacinto CA USD Series A 2.80 09/01/14 3,150,000
</TABLE>
19
<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 3,000,000 San Joaquin County CA Tax Revenue Antic Notes 3.50 % 12/31/99 $ 3,015,651
1,300,000 San Jose CA MFHR Kimberly Woods Apartments LOC
- Bank of America 2.60 11/01/08 1,300,000
1,500,000 San Jose CA Multifamily Housing Revenue AMT 2.95 03/01/32 1,500,000
6,000,000 San Jose CA Redevelopment Agency Project A 2.55 07/01/26 6,000,000
6,800,000 San Jose CA Redevelopment Agency Project B 2.45 07/01/26 6,800,000
7,300,000 San Jose/Santa Clara Clean Water Financing
Authority 2.70 11/15/20 7,300,000
2,200,000 San Leandro CA MFHR Haas Avenue Apartments LOC
- Bank of America 2.60 10/01/07 2,200,000
13,000,000 San Mateo County CA JT Powers Authority Lease
Revenue Series 123 FSA Insured 2.92 07/15/29 13,000,000
4,800,000 Santa Clara CA Electric Revenue Series 85A LOC
- National Westminster Bank Plc 2.70 07/01/10 4,800,000
14,500,000 Santa Clara CA Electric Revenue Series 85B LOC
- National Westminster Bank Plc 2.70 07/01/10 14,500,000
4,600,000 Santa Clara CA Electric Revenue Series 85C LOC
- National Westminster Bank Plc 2.90 07/01/10 4,600,000
1,000,000 Santa Clara CA Transit System LOC - Sumitomo
Bank Limited 2.85 06/01/15 1,000,000
1,500,000 Santa Clara CA USD Tax Revenue Antic Notes 4.25 10/01/99 1,509,290
20,000,000 Santa Clara County CA 3.00 11/15/22 20,000,000
7,500,000 Santa Clara County CA Hospital District
Facility Revenue Series A 2.65 08/01/15 7,500,000
9,600,000 Santa Clara County CA Hospital District
Facility Revenue Series B 2.65 08/01/15 9,600,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$ 1,000,000 Santa Clara County CA MFHR Foxchase Apartments
Series E FGIC Insured 2.70 % 11/01/07 $ 1,000,000
2,300,000 Santa Clara County CA Tax Revenue Antic Notes 4.50 10/01/99 2,317,251
4,475,000 Simi Valley CA MFHR Creekside Village
Apartments LOC - Bank of America 2.80 07/01/23 4,475,000
3,000,000 Simi Valley CA MFHR Lincoln Wood Ranch LOC -
Sumitomo Bank 2.65 06/01/10 3,000,000
2,500,000 Simi Valley CA Public Finance Lease Revenue 2.65 09/01/15 2,500,000
11,000,000 Sonoma County California Tax & Revenue 3.50 02/01/00 11,047,395
6,000,000 Southeast Resource Recovery Facility Lease
Revenue Series B AMT 2.75 12/01/18 6,000,000
2,000,000 Southern California Metro Water District 2.75 07/08/99 2,000,000
11,000,000 Southern California Metro Water District 2.85 06/07/99 11,000,000
5,000,000 Southern California State Public Power
Authority Southern Transmission Project LOC -
Swiss Bank 2.75 07/01/19 5,000,000
8,775,000 Southern California Waterworks Revenue Series A
AMBAC Insured 2.70 06/01/23 8,775,000
6,300,000 Tracy CA MFHR Sycamore Village Apartments LOC -
Bank of America 2.75 05/01/15 6,300,000
900,000 Turlock CA COP Irrigation Project Series A 2.65 01/01/26 900,000
4,515,000 Turlock CA Irrigation District Revenue Series A
LOC - Canadian Imperial Bank of Commerce 2.65 01/01/14 4,515,000
30,000,000 University of California GO 2.55 05/04/99 30,000,000
8,000,000 University of California GO 2.60 05/03/99 8,000,000
4,945,000 University of California GO 2.85 05/03/99 4,945,000
</TABLE>
21
<PAGE>
California Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (CONTINUED)
$25,000,000 University of California Regents 2.85 % 07/07/99 $ 25,000,000
6,100,000 Vacaville CA MFHR Western Properties Sycamores
Project LOC - Bank of America 2.60 04/01/05 6,100,000
8,300,000 Walnut Creek CA MFHR Creekside Drive Apartments
LOC - Bank of America 2.60 04/01/07 8,300,000
21,500,000 West Basin CA Municipal Water District Revenue
Project B 2.60 08/01/27 21,500,000
11,900,000 West Covina CA RDA COP Barranca LOC - Citibank 2.90 09/01/05 11,900,000
1,500,000 West Covina CA Redevelopment Agency Lease
Revenue 2.55 08/01/18 1,500,000
100,000 West Riverside CA Regional Waterworks Authority
Revenue 3.00 04/01/28 100,000
--------------
TOTAL CALIFORNIA MUNICIPAL SECURITIES $2,176,716,982
(cost $2,176,716,982)
</TABLE>
22
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 California Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES - 0.78%
$ 1,500,000 Puerto Rico Commonwealth Highway &
Transportation Authority Series A AMBAC
Insured 2.65 % 07/01/28 1,500,000
16,100,000 Puerto Rico Commonwealth Series 120 MBIA
Insured 2.88 07/01/23 16,100,000
--------------
TOTAL PUERTO RICO MUNICIPAL SECURITIES $ 17,600,000
(Cost $17,600,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,194,316,982)* 97.69% $2,194,316,982
(Note 1)
Other Assets and Liabilities, Net 2.31 51,805,895
------ --------------
TOTAL NET ASSETS 100.00% $2,246,122,877
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A
DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
Government Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES - 76.78%
FEDERAL HOME LOAN BANKS - 38.01%
$ 3,000,000 Federal Home Loan Banks 4.42 %# 04/21/99 $ 2,992,283
2,000,000 Federal Home Loan Banks 4.79 02/04/00 1,994,880
2,000,000 Federal Home Loan Banks 4.86 # 05/21/99 1,986,778
1,500,000 Federal Home Loan Banks 4.95 02/17/00 1,499,365
5,000,000 Federal Home Loan Banks 4.95 08/19/99 4,996,928
2,000,000 Federal Home Loan Banks 5.14 03/29/00 2,001,395
2,000,000 Federal Home Loan Banks 5.54 07/13/99 2,004,200
1,515,000 Federal Home Loan Banks 5.54 07/15/99 1,517,544
2,000,000 Federal Home Loan Banks 5.57 04/07/99 1,999,970
1,370,000 Federal Home Loan Banks 5.63 04/09/99 1,369,969
--------------
$ 22,363,312
FEDERAL HOME LOAN MORTGAGE CORPORATION - 6.75%
$ 4,000,000 Federal Home Loan Mortgage Corporation 4.70 %# 05/24/99 $ 3,971,969
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.37%
$ 4,000,000 Federal National Mortgage Association 4.97 % 08/19/99 $ 3,998,872
1,300,000 Federal National Mortgage Association 5.10 # 05/19/99 1,291,039
1,300,000 Federal National Mortgage Association 5.27 # 08/04/99 1,276,438
1,300,000 Federal National Mortgage Association 5.48 07/09/99 1,299,598
--------------
$ 7,865,947
STUDENT LOAN MORTGAGE ASSOCIATION - 18.65%
$ 2,000,000 Student Loan Mortgage Association 4.70 %# 06/30/99 $ 1,976,500
7,000,000 Student Loan Mortgage Association 4.78 11/04/99 6,999,146
2,000,000 Student Loan Mortgage Association 4.90 02/10/00 1,998,757
--------------
$ 10,974,403
TOTAL SHORT-TERM FEDERAL AGENCIES $ 45,175,631
(Cost $45,175,631)
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Government Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 23.24%
$ 3,234,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 3,234,000
10,441,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 10,441,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 13,675,000
(Cost $13,675,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $58,850,631)* 100.02% $ 58,850,631
(Notes 1 and 3)
Other Assets and Liabilities, Net (0.02) (14,038 )
------ --------------
TOTAL NET ASSETS 100.00% $ 58,836,593
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 12.11%
$150,000,000 Abbey National Treasury Service 4.79 % 07/26/99 149,959,700
60,000,000 Abbey National Treasury Service 4.80 07/15/99 59,989,049
65,000,000 Abbey National Treasury Service 4.85 08/17/99 64,981,077
50,000,000 American Express 4.86 09/10/99 50,000,000
25,000,000 American Express 4.88 04/26/99 25,000,000
60,000,000 Bank of America Corporation 4.82 06/25/99 59,993,330
100,000,000 Bank of America Corporation 4.92 03/16/00 99,981,161
34,000,000 Commercial Bank 4.82 07/13/99 33,994,327
55,000,000 First Union National Bank 4.87 09/28/99 55,000,000
125,000,000 Key Bank 4.83 10/04/99 124,975,135
80,000,000 Key Bank 4.88 10/13/99 79,982,521
150,000,000 Key Bank 4.88 10/14/99 149,992,130
75,000,000 Pepsico Incorporated 4.81 08/19/99 74,966,118
75,000,000 Sigma Finance 5.13 08/23/99 75,000,000
65,000,000 Sigma Finance 5.20 08/26/99 65,000,000
78,000,000 Wachovia Bank 4.79 05/14/99 77,993,660
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $1,246,808,208
(Cost $1,246,808,208)
COMMERCIAL PAPER - 45.29%
$100,000,000 Abbey National Corporation of North America 4.83 %# 05/07/99 $ 99,517,000
51,000,000 Asset Securitization Corporation++ 4.87 # 04/05/99 50,972,403
39,160,000 Asset Securitization Corporation++ 4.95 # 04/16/99 39,079,233
103,000,000 Asset Securitization Corporation++ 5.00 # 04/15/99 102,799,722
40,000,000 Associates Corporation of North America 4.80 # 05/17/99 39,754,667
100,000,000 Associates First Capital Corporation 4.81 # 05/07/99 99,519,000
75,000,000 Associates First Capital Corporation 4.83 # 05/10/99 74,607,563
20,000,000 Atlantis One Funding Corporation 4.78 # 05/13/99 19,888,467
64,056,000 Atlantis One Funding Corporation 4.80 # 05/10/99 63,722,909
94,578,000 Atlantis One Funding Corporation 4.81 # 04/27/99 94,245,459
20,000,000 Atlantis One Funding Corporation 4.82 # 05/12/99 19,890,211
34,054,000 Atlantis One Funding Corporation 4.83 # 05/17/99 33,843,830
14,614,000 Atlantis One Funding Corporation 4.83 # 06/15/99 14,466,947
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$34,585,000 Atlantis One Funding Corporation 4.85 %# 06/23/99 $ 34,198,272
50,000,000 Atlantis One Funding Corporation 4.86 # 06/16/99 49,487,000
65,387,000 Atlantis One Funding Corporation 4.86 # 07/09/99 64,513,103
17,774,000 Atlantis One Funding Corporation 5.05 # 04/23/99 17,719,147
85,000,000 Bank of America Corporation 4.82 # 08/16/99 83,440,864
25,000,000 Bayerische Hypoverins Bank 5.10 # 04/01/99 25,000,000
34,000,000 CC USA Incorporated++ 4.86 # 05/17/99 33,788,860
30,000,000 Commercial Credit Corporation 4.86 # 04/23/99 29,910,900
75,000,000 Corporate Asset Funding Company Incorporated++ 4.82 # 05/24/99 74,467,792
75,000,000 Corporate Asset Funding Company Incorporated++ 4.83 # 04/16/99 74,849,063
50,000,000 Corporate Asset Funding Company Incorporated++ 4.83 # 04/22/99 49,859,125
75,000,000 Corporate Asset Funding Company Incorporated++ 4.85 # 06/04/99 74,353,333
50,000,000 Corporate Asset Funding Company Incorporated++ 4.86 # 05/10/99 49,736,750
75,000,000 Corporate Receivables Corporation++ 4.81 # 04/23/99 74,779,542
75,000,000 Corporate Receivables Corporation++ 4.82 # 04/16/99 74,849,375
50,000,000 Corporate Receivables Corporation++ 4.83 # 05/03/99 49,785,333
52,271,000 Corporate Receivables Corporation++ 4.85 # 05/26/99 51,883,686
60,000,000 Corporate Receivables Corporation++ 4.86 # 05/14/99 59,651,700
39,000,000 Dorada Finance Incorporated++ 4.85 # 06/15/99 38,605,938
13,744,000 Dorada Finance Incorporated++ 4.90 # 05/17/99 13,657,947
10,000,000 Dorada Finance Incorporated++ 4.90 # 05/19/99 9,934,667
15,238,000 Enterprise Funding Corporation++ 4.86 # 04/23/99 15,192,743
19,500,000 Eureka Securitization Incorporated++ 4.85 # 05/20/99 19,371,273
25,000,000 Eureka Securitization Incorporated++ 4.87 # 04/16/99 24,949,271
</TABLE>
27
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$50,000,000 Falcon Asset Securitization++ 4.85 %# 06/15/99 $ 49,494,792
100,775,000 Falcon Asset Securitization++ 4.89 # 04/06/99 100,706,557
78,634,000 Fleet Funding Corporation++ 4.85 # 05/07/99 78,252,625
150,000,000 Ford Motor Credit Company 4.80 # 04/27/99 149,480,000
75,000,000 Ford Motor Credit Company 4.81 # 05/14/99 74,569,104
100,000,000 Ford Motor Credit Company 4.83 # 06/15/99 98,993,750
150,000,000 Ford Motor Credit Company 4.84 # 04/09/99 149,838,667
20,000,000 General Electric Capital Services Incorporated 4.67 # 04/20/99 19,950,706
50,000,000 General Electric Capital Services Incorporated 4.78 # 07/14/99 49,309,556
120,000,000 General Electric Capital Services Incorporated 4.81 # 07/01/99 118,540,967
75,000,000 General Electric Capital Services Incorporated 4.85 # 06/08/99 74,312,917
30,000,000 General Electric Capital Services Incorporated 4.88 # 11/30/99 29,011,800
75,000,000 General Electric Capital Services Incorporated 4.90 # 06/28/99 74,101,667
70,000,000 General Electric Capital Services Incorporated 4.79 # 04/29/99 69,739,211
39,000,000 General Electric Financial Assurance
Corporation 4.80 # 08/09/99 38,324,000
70,000,000 Goldman Sachs Group LP 4.84 # 07/07/99 69,087,122
150,000,000 Goldman Sachs Group LP 4.85 # 07/09/99 147,999,375
50,000,000 Goldman Sachs Group LP 4.97 # 04/01/99 50,000,000
70,532,000 Greenwich Funding Corporation++ 4.90 # 04/01/99 70,532,000
56,243,000 International Securitization Corporation++ 4.88 # 04/26/99 56,052,399
50,000,000 Johnson & Johnson++ 4.75 # 04/05/99 49,973,611
70,000,000 Johnson & Johnson++ 4.84 # 06/28/99 69,171,822
75,000,000 Morgan Stanley Dean Witter & Company 4.85 # 05/26/99 74,444,271
50,000,000 National City Credit Corporation 4.82 # 05/04/99 49,779,083
49,000,000 National City Credit Corporation 4.85 # 04/13/99 48,920,783
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$47,139,000 Park Avenue Receivables Corporation++ 4.89 %# 04/06/99 $ 47,106,985
102,106,000 Receivables Capital Corporation 4.84 # 04/08/99 102,009,907
48,000,000 Rio Tinto America Incorporated 4.84 # 06/07/99 47,567,627
25,000,000 Riverwoods Funding 4.81 # 04/28/99 24,909,813
25,000,000 Sheffield Receivables Corporation++ 4.83 # 04/16/99 24,949,688
49,000,000 Sheffield Receivables Corporation++ 4.84 # 04/14/99 48,914,359
185,000,000 Sheffield Receivables Corporation++ 4.87 # 04/13/99 184,699,683
6,900,000 Sheffield Receivables Corporation++ 4.88 # 05/20/99 6,854,169
45,000,000 Sheffield Receivables Corporation++ 4.90 # 04/05/99 44,975,500
15,000,000 Sheffield Receivables Corporation++ 4.92 # 04/23/99 14,954,900
50,000,000 Sigma Finance Incorporated++ 4.82 # 04/15/99 49,906,278
20,000,000 Sigma Finance Incorporated++ 4.82 # 04/26/99 19,933,056
69,513,000 Thames Asset Global Securitization
Incorporated++ 4.86 # 06/30/99 68,668,417
50,000,000 Variable Funding Capital Corporation++ 4.85 # 06/17/99 49,481,319
50,000,000 Variable Funding Capital Corporation++ 4.89 # 04/05/99 49,972,833
50,000,000 WCP Funding Incorporation++ 4.86 # 04/22/99 49,858,250
25,000,000 Windmill Funding Corporation++ 4.84 # 05/19/99 24,838,833
21,209,000 Windmill Funding Corporation++ 4.87 # 05/07/99 21,105,712
75,000,000 Windmill Funding Corporation++ 4.88 # 04/05/99 74,959,333
--------------
TOTAL COMMERCIAL PAPER $4,662,546,542
(Cost $4,662,546,542)
CORPORATE BONDS & NOTES - 17.42%
$50,000,000 Abbey National Treasury Service 5.64 % 07/15/99 $ 50,042,885
70,000,000 American Express Centurion Bank 4.94 12/14/99 70,000,000
174,500,000 Bank of America Corporation 4.94 07/07/99 174,500,000
70,000,000 Bank of America Corporation 4.95 # 04/05/00 69,972,413
75,000,000 Beta Finance Incorporated 5.26 03/06/00 75,000,000
15,000,000 CC USA Incorporated 5.78 06/11/99 14,999,420
45,000,000 Centari Corporation 5.75 04/23/99 45,000,000
</TABLE>
29
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
$25,000,000 Comerica Bank 4.92 % 02/08/00 $ 24,990,494
150,000,000 Comerica Bank 4.94 01/10/00 149,965,529
75,000,000 FCC National Bank 5.14 03/22/00 74,975,430
50,000,000 FCC National Bank 5.67 06/01/99 49,990,002
120,000,000 First National Bank 5.05 04/08/99 120,000,000
70,000,000 First National Bank 5.73 05/19/99 69,992,949
46,000,000 First National Bank 5.75 05/10/99 45,997,647
75,000,000 First Union National Bank 5.25 09/17/99 75,000,000
180,000,000 First Union National Bank 5.35 09/09/99 180,000,000
48,000,000 Huntington National Bank 5.74 05/05/99 47,998,073
60,000,000 IBM Credit Corporation 4.67 10/29/99 59,985,259
95,500,000 IBM MTN 5.58 08/27/99 95,479,864
165,000,000 JP Morgan & Company Incorporated 4.86 09/15/99 165,000,000
55,000,000 Sigma Finance Incorporated 5.19 02/25/00 55,000,000
80,000,000 Sigma Finance Incorporated 5.23 03/29/00 80,000,000
--------------
TOTAL CORPORATE BONDS & NOTES $1,793,889,965
(Cost $1,793,889,965)
SHORT-TERM FEDERAL AGENCIES - 3.19%
$71,997,000 Federal Home Loan Banks 4.68 %# 07/02/99 71,135,915
7,500,000 Federal Home Loan Banks 4.79 02/04/00 7,480,800
26,000,000 Federal National Mortgage Association 4.97 08/19/99 25,992,670
50,000,000 Federal Home Loan Mortgage Corporation 4.77 # 04/06/99 49,966,875
99,100,000 Federal National Mortgage Association 4.67 # 07/15/99 97,750,175
25,000,000 Federal National Mortgage Association 4.70 # 06/23/99 24,729,097
50,000,000 Federal National Mortgage Association 4.75 # 06/14/99 49,511,805
2,000,000 Student Loan Mortgage Association 5.63 06/02/99 2,002,433
--------------
TOTAL SHORT-TERM FEDERAL AGENCIES $ 328,569,770
(Cost $328,569,770)
</TABLE>
30
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 20.19%
$50,000,000 American Express Centurion Bank 4.85 % 04/23/99 $ 50,000,000
75,000,000 American Express Credit Corporation 4.87 04/05/99 75,000,000
75,000,000 Branch Banking & Trust Company 5.01 01/10/00 75,005,219
50,000,000 Branch Banking & Trust Company 5.02 01/21/00 49,986,411
25,000,000 Canadian Imperial Bank of Commerce 5.10 02/22/00 24,991,367
145,000,000 Chase Manhattan Bank 4.87 04/21/99 145,000,000
120,000,000 Chase Manhattan Bank 5.06 05/12/99 120,000,000
100,000,000 Chase Manhattan Bank 5.10 04/20/99 100,000,000
175,000,000 CIBC 4.86 04/20/99 175,000,000
92,200,000 CIBC 5.07 04/13/99 92,200,000
75,000,000 CIBC 5.08 05/04/99 75,000,000
25,000,000 Commerz Bank 5.09 02/16/00 24,992,583
10,000,000 Deutsche Bank 4.85 07/22/99 10,000,000
190,000,000 Deutsche Bank 4.88 05/04/99 190,000,000
75,000,000 Deutsche Bank 4.89 05/11/99 75,000,000
50,000,000 Harris Trust & Savings 4.87 04/22/99 50,000,000
75,000,000 Harris Trust & Savings 5.05 05/05/99 75,000,000
80,000,000 National Westminster Bank 5.13 03/17/00 79,981,537
50,000,000 National Westminster Bank 5.14 04/14/00 49,975,044
50,000,000 Old Kent Bank 4.83 04/28/99 50,000,000
25,000,000 Old Kent Bank 4.83 04/28/99 25,000,000
50,000,000 Old Kent Bank 4.90 10/06/99 50,000,000
25,000,000 Old Kent Bank 5.04 08/13/99 25,000,000
50,000,000 Old Kent Bank 5.06 06/14/99 50,000,000
99,500,000 RaboBank Nederland 5.13 03/24/00 99,453,006
65,500,000 RaboBank Nederland 5.71 05/05/99 65,494,593
70,000,000 RaboBank Nederland 5.74 05/19/99 69,993,830
49,000,000 U.S. Bank N.A. 4.88 05/06/99 49,000,000
23,000,000 U.S. Bank N.A. 4.89 05/10/99 23,000,000
35,000,000 Wachovia Bank 4.85 07/28/99 35,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT $2,079,073,590
(Cost $2,079,073,590)
</TABLE>
31
<PAGE>
Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 2.66%
$102,551,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 % 04/01/99 $ 102,551,000
76,976,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 76,976,000
10,000,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.90 04/01/99 10,000,000
84,293,000 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 84,293,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 273,820,000
(Cost $273,820,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $10,384,708,075)* (Note 1) 100.86% $10,384,708,075
Other Assets and Liabilities, Net (0.86) (88,306,852)
------ --------------
TOTAL NET ASSETS 100.00% $10,296,401,223
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
++ REPRESENTS COMMERCIAL PAPER SOLD WITHIN TERMS OF PRIVATE PLACEMENT
MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION 4(2) OF THE
SECURITIES ACT OF 1933, THAT MAY BE RESOLD TO QUALIFIED INSTITUTIONAL
BUYERS. THIS SECURITY WAS DEEMED LIQUID BY THE INVESTMENT ADVISER IN
ACCORDANCE WITH PROCEDURES APPROVED BY THE FUND'S BOARD OF DIRECTORS.
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES - 90.62%
ALABAMA - 1.46%
$ 1,300,000 Stevenson AL IDA The Mead Corporation Series C 3.35 % 11/01/33 $ 1,300,000
ARIZONA - 3.38%
$ 2,000,000 Arizona School District Tax Antic Financing
Project COP Series A 4.10 % 07/30/99 $ 2,003,377
1,000,000 Arizona Tax Antic Notes COP Series B 4.20 07/30/99 1,004,107
--------------
$ 3,007,484
CALIFORNIA - 3.38%
$ 2,000,000 California Higher Education Authority Series
E-5 3.80 % 12/01/25 $ 2,000,000
1,000,000 California State PCFA Stanislaus Project AMT
LOC - Swiss Bank 3.05 12/01/17 1,000,000
--------------
$ 3,000,000
COLORADO - 3.38%
$ 2,500,000 Colorado State HFFA Revenue North Colorado
Medical Center 3.00 % 05/15/20 $ 2,500,000
500,000 Douglas County CO MFHR Autumn Chase Project 3.10 07/01/06 500,000
--------------
$ 3,000,000
FLORIDA - 9.98%
$ 1,875,000 Florida State COP Series 117 3.09 % 07/01/27 $ 1,875,000
1,000,000 Indian River FL CP 2.90 05/03/99 1,000,000
3,500,000 Palm Beach FL CP 2.85 06/01/99 3,500,000
2,495,000 Tampa FL Sports Authority Revenue Series 98 3.05 01/01/27 2,495,000
--------------
$ 8,870,000
</TABLE>
33
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
GEORGIA - 5.30%
$ 2,000,000 Dougherty County GA School District 3.90 % 03/01/00 $ 2,014,298
700,000 Georgia Municipal Gas Authority Revenue Gas
Portfolio II Project Series A 2.90 11/01/06 700,000
2,000,000 Georgia Municipal Gas Authority Revenue Gas
Portfolio II Project Series C 2.90 01/01/08 2,000,000
--------------
$ 4,714,298
HAWAII - 2.53%
$ 2,250,000 Hawaii State GO 3.16 % 03/01/14 $ 2,250,000
ILLINOIS - 5.19%
$ 2,310,000 Illinois HFFA 2.80 % 05/19/99 $ 2,310,000
1,300,000 Illinois HFFA Loyola University Health System
Series B 2.90 07/01/24 1,300,000
1,000,000 Illinois State Toll Highway Authority Revenue
Series B 3.05 01/01/17 1,000,000
--------------
$ 4,610,000
INDIANA - 6.48%
$ 1,000,000 Fort Wayne IN Hospital Authority Revenue
Parkview Memorial Hospital Series B 3.00 % 01/01/16 $ 1,000,000
3,500,000 Indiana State Environmental Development
Financing Authority Revenue 3.00 08/05/99 3,500,000
360,000 Indianapolis IN Resource Recovery Revenue 3.35 12/01/16 360,000
900,000 Princeton IN PCR PSI Energy Incorporated 3.30 04/01/22 900,000
--------------
$ 5,760,000
</TABLE>
34
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
IOWA - 1.35%
$ 1,200,000 Iowa Financing Authority 3.35 % 05/01/25 $ 1,200,000
LOUISIANA - 3.94%
$ 1,000,000 De Soto Parish LA PCR Central Louisiana
Electric Company Series A 2.95 % 07/01/18 $ 1,000,000
1,500,000 Plaquemines LA Port Harbor & Terminal District 3.60 03/15/06 1,500,000
1,000,000 St. Charles Parish LA PCR Shell Oil Company
Norco Project 3.30 09/01/23 1,000,000
--------------
$ 3,500,000
MAINE - 3.99%
$ 3,545,000 Regular Waste ME Solid Waste Recovery Revenue
Series M 3.15 % 07/01/04 $ 3,545,000
MARYLAND - 5.40%
$ 2,000,000 Maryland State GO 3.07 % 08/01/12 $ 2,000,000
2,800,000 Maryland State GO CP 3.10 04/21/99 2,800,000
--------------
$ 4,800,000
MICHIGAN - 3.71%
$ 2,800,000 Michigan State GO CP 2.60 % 05/05/99 $ 2,800,000
500,000 Michigan State Strategic Fund Limited
Obligation Revenue 3.30 09/01/30 500,000
--------------
$ 3,300,000
MISSOURI - 1.12%
$ 1,000,000 Missouri State Health & Educational Facilities
Revenue St. Francis Medical Center LOC -
Credit Local De France Series A 3.15 % 06/01/26 $ 1,000,000
</TABLE>
35
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
NEW YORK - 5.42%
$ 1,200,000 New York City GO Series B-2 3.30 % 08/15/03 $ 1,200,000
1,400,000 New York NY GO Subseries A-8 3.30 08/01/18 1,400,000
1,215,000 New York State Subseries A-8 LOC - Sanwa Bank
Ltd 3.30 08/01/17 1,215,000
1,000,000 Suffolk County NY Industrial Development
Revenue Target Rock Corporation 2.80 02/01/07 1,000,000
--------------
$ 4,815,000
NORTH CAROLINA - 3.26%
$ 1,800,000 Greensboro NC Enterprise System Revenue Series
B 3.10 % 06/01/24 $ 1,800,000
700,000 North Carolina Community Medical Care Revenue
Baptist Hospitals Project Series B 3.05 06/01/22 700,000
300,000 North Carolina Medical Care Community Hospital
Revenue Moses H. Cone Memorial Hospital
Project 3.10 09/01/02 300,000
100,000 Wake County NC PCR Carolina Power & Light
Company Project 3.15 03/01/17 100,000
--------------
$ 2,900,000
OHIO - 1.12%
$ 1,000,000 Ohio Air Quality 2.90 % 05/03/99 $ 1,000,000
PENNSYLVANIA - 3.49%
$ 2,000,000 Allegheny County PA International Airport
Revenue MBIA Insured 5.00 % 01/01/00 $ 2,025,723
1,050,000 Northampton County PA Higher Education
Authority Revenue MBIA Insured 6.75 11/15/99 1,074,024
--------------
$ 3,099,747
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 National Tax-Free Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
SOUTH CAROLINA - 2.14%
$ 1,500,000 South Carolina Educational Facility Authority
for Private Non-profit Furman University
Project Series B 3.00 % 10/01/26 $ 1,500,000
400,000 South Carolina Jobs Economic Development
Authority Hospital Facility Tuomey Regional
Medical Center Series B 3.00 11/01/25 400,000
--------------
$ 1,900,000
TEXAS - 3.94%
$ 2,500,000 Brazos TX Higher Education Authority Series B-1 3.00 % 06/01/23 $ 2,500,000
1,000,000 Panhandle-Plains TX Higher Education Student
Loan Revenue Series B 3.00 06/01/23 1,000,000
--------------
$ 3,500,000
UTAH - 0.56%
$ 500,000 Utah Student Loan Revenue Series A 3.10 % 11/01/23 $ 500,000
VIRGINIA - 3.14%
$ 2,787,000 Hampton VA Redevelopment & MFHR Avalon Pointe
Project FNMA Collateralized 3.00 % 06/15/26 $ 2,787,000
</TABLE>
37
<PAGE>
National Tax-Free Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE+ VALUE
<C> <S> <C> <C> <C> <C>
MUNICIPAL SECURITIES (CONTINUED)
WASHINGTON - 6.51%
$ 815,000 Washington State GO Series E 5.75 % 07/01/99 $ 819,147
2,000,000 Washington State Healthcare Facility Authority
Revenue Fred Hutchinson Cancer Center 3.35 01/01/29 2,000,000
1,200,000 Washington State Healthcare Facility Authority
Revenue Sisters Providence Series C 3.15 10/01/05 1,200,000
1,680,000 Washington State Power Supply Revenue Nuclear
Project No. 3 Series B 7.25 07/01/15 1,764,627
--------------
$ 5,783,774
WISCONSIN - 0.45%
$ 400,000 Oak Creek WI PCR Wisconsin Electric Power
Company Project 3.00 % 08/01/16 $ 400,000
--------------
TOTAL MUNICIPAL SECURITIES $ 80,542,303
(Cost $80,542,303)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $80,542,303)* 90.62% $ 80,542,303
(Notes 1 and 3)
Other Assets and Liabilities, Net 9.38 8,336,284
------ --------------
TOTAL NET ASSETS 100.00% $ 88,878,587
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A
DEMAND FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
VARIABLE AND FLOATING RATE BONDS - 10.61%
$90,000,000 Abbey National Treasury Service 4.80 % 07/15/99 $ 89,983,574
75,000,000 Bank of America Corporation 4.83 04/27/99 74,998,451
40,000,000 Commercial Bank 4.82 07/13/99 39,993,326
30,000,000 First Union National Bank 4.87 09/28/99 30,000,000
75,000,000 Key Bank 4.83 10/04/99 74,985,081
40,000,000 National Rural Utilities 4.98 11/23/99 40,000,000
25,000,000 Sigma Finance 5.13 08/23/99 25,000,000
35,000,000 Sigma Finance 5.20 08/26/99 35,000,000
--------------
TOTAL VARIABLE AND FLOATING RATE BONDS $ 409,960,432
(Cost $409,960,432)
COMMERCIAL PAPER - 42.01%
$50,000,000 Abbey National Corporation of North America 4.83 %# 05/07/99 $ 49,758,500
75,000,000 Associates First Capital 4.83 # 05/11/99 74,597,500
25,000,000 Atlantis One Funding Corporation 4.81 # 04/27/99 24,909,542
27,274,000 Atlantis One Funding Corporation 4.85 # 05/14/99 27,110,788
100,000,000 Atlantis One Funding Corporation 5.05 # 04/23/99 99,691,389
30,000,000 Bank of America Corporation 4.85 # 08/20/99 29,430,125
50,000,000 Bank of America Corporation 4.85 # 11/10/99 48,497,847
50,000,000 CC USA Incorporated 4.85 # 06/11/99 49,521,736
25,000,000 Commercial Credit Company++ 4.87 # 05/07/99 24,879,500
75,000,000 Corporate Asset Funding++ 4.83 # 04/21/99 74,798,750
24,978,000 Enterprise Funding Corporation++ 4.85 # 06/07/99 24,752,539
30,000,000 Ford Motor Credit Company 4.83 # 06/15/99 29,698,125
50,000,000 Ford Motor Credit Corporation 4.83 # 04/16/99 49,899,375
70,000,000 Ford Motor Credit Corporation 4.85 # 06/28/99 69,170,111
15,000,000 General Electric Capital Services Incorporated 4.67 # 04/20/99 14,963,029
25,000,000 General Electric Capital Services Incorporated 4.78 # 07/14/99 24,654,778
9,000,000 General Electric Capital Services Incorporated 4.82 # 07/08/99 8,881,910
40,000,000 Goldman Sachs Group LP 4.86 # 04/07/99 39,967,600
50,000,000 Goldman Sachs Group LP 4.97 # 04/01/99 50,000,000
</TABLE>
39
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$26,432,000 Greenwich Funding Corporation++ 4.86 %# 06/07/99 $ 26,192,923
50,406,000 Greenwich Funding Corporation++ 4.87 # 05/07/99 50,160,523
50,000,000 Morgan Stanley Dean Witter 4.86 # 05/14/99 49,709,750
80,000,000 Morgan Stanley Dean Witter 4.87 # 04/08/99 79,924,244
50,000,000 National City Credit Corporation 4.82 # 05/04/99 49,779,083
30,000,000 National City Credit Corporation 4.84 # 04/07/99 29,975,800
29,641,000 Park Avenue Receivables Corporation++ 4.84 # 04/14/99 29,589,194
75,000,000 Preferred Receivables Funding++ 4.86 # 05/21/99 74,493,750
73,416,000 Riverwoods Funding Corporation 4.86 # 05/14/99 72,989,820
50,000,000 Salomon Smith Barney Holdings 4.80 # 04/20/99 49,873,333
31,000,000 Sheffield Receivables Corporation++ 4.87 # 04/19/99 30,924,515
20,600,000 Sheffield Receivables Corporation++ 4.87 # 04/22/99 20,541,479
40,000,000 Sigma Finance Corporation 4.84 # 04/30/99 39,844,044
50,000,000 Variable Funding Corporation++ 4.82 # 05/13/99 49,716,500
50,000,000 WCP Funding Incorporated++ 4.83 # 05/03/99 49,785,333
20,475,000 WCP Funding Incorporated++ 4.86 # 05/07/99 20,375,492
45,602,000 Windmill Funding Corporation++ 4.85 # 04/14/99 45,522,133
9,000,000 Windmill Funding Corporation++ 4.85 # 05/12/99 8,950,288
29,300,000 Xerox Corporation 4.70 # 04/16/99 29,242,621
--------------
TOTAL COMMERCIAL PAPER $1,622,773,969
(Cost $1,622,773,969)
CORPORATE BONDS & NOTES - 14.63%
$15,000,000 Abbey National Treasury Service 5.64 % 07/15/99 $ 15,012,866
25,000,000 Bank of America Corporation 5.00 01/06/00 24,996,299
10,000,000 FCC National Bank 5.67 06/01/99 9,998,000
100,000,000 First Union National Bank 5.25 09/17/99 100,000,000
50,000,000 Huntington National Bank 4.97 10/26/99 49,991,592
40,000,000 Huntington National Bank 5.74 05/05/99 39,998,394
50,000,000 IBM Credit Corporation 5.27 04/07/00 49,964,318
50,000,000 JP Morgan & Company Incorporated 4.86 09/15/99 50,000,000
50,000,000 Sigma Finance Incorporated 5.04 02/02/00 50,000,000
30,000,000 Sigma Finance Incorporated 5.23 03/29/00 30,000,000
</TABLE>
40
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Prime Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES (CONTINUED)
$50,000,000 CC USA Incorporated 5.78 % 06/11/99 $ 49,998,065
25,000,000 Centari Corporation 5.75 04/23/99 25,000,000
30,000,000 First National Bank 5.73 05/19/99 29,996,970
40,000,000 IBM Credit Corporation 4.67 10/29/99 39,990,173
--------------
TOTAL CORPORATE BONDS & NOTES $ 564,946,677
(Cost $564,946,677)
CERTIFICATES OF DEPOSIT - 21.29%
$50,000,000 Abn-Amro Bank NV 5.30 % 03/09/00 $ 49,981,928
29,000,000 Barclays Bank PLC 5.79 05/04/99 29,001,127
34,250,000 Bayerische Hypoverins Bank 5.27 03/03/00 34,225,674
50,000,000 Beta Finance 5.15 02/18/00 49,989,627
20,000,000 Centari Corporation 5.78 04/19/99 20,000,000
30,000,000 Chase Manhattan Bank 4.87 04/21/99 30,000,000
30,000,000 Chase Manhattan Bank 5.06 05/12/99 30,000,000
65,000,000 Chase Manhattan Bank 5.10 04/20/99 65,000,000
30,000,000 CIBC 5.04 06/29/99 30,000,000
100,000,000 CIBC 5.07 04/13/99 100,000,000
90,000,000 Deutsche Bank 4.88 05/04/99 90,000,000
30,000,000 FCC National Bank 4.82 04/22/99 30,000,000
60,000,000 National Westminster Bank 5.13 03/17/00 59,986,153
50,000,000 National Westminster Bank 5.14 04/14/00 49,975,044
9,100,000 Northern Trust Company 4.78 04/05/99 9,100,000
50,000,000 Old Kent Bank 5.00 08/18/99 50,000,000
25,000,000 Swiss Bank 5.75 05/07/99 24,998,819
50,000,000 U.S. Bank N.A. 4.86 04/28/99 50,000,000
20,000,000 U.S. Bank N.A. 4.89 05/10/99 20,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT $ 822,258,372
(Cost $822,258,372)
</TABLE>
41
<PAGE>
Prime Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 12.41%
$219,989,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 % 04/01/99 $ 219,989,000
40,798,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 40,798,000
218,754,000 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 218,754,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 479,541,000
(Cost $479,541,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $3,899,480,450)* (Note 1) 100.95% $3,899,480,450
Other Assets and Liabilities, Net (0.95) (36,567,316)
------ --------------
TOTAL NET ASSETS 100.00% $3,862,913,134
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
++ REPRESENTS COMMERCIAL PAPER SOLD WITHIN TERMS OF PRIVATE PLACEMENT
MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION 4(2) OF THE
SECURITIES ACT OF 1933, THAT MAY BE RESOLD TO QUALIFIED INSTITUTIONAL
BUYERS. THIS SECURITY WAS DEEMED LIQUID BY THE INVESTMENT ADVISER IN
ACCORDANCE WITH PROCEDURES APPROVED BY THE FUND'S BOARD OF DIRECTORS.
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES.
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 Treasury Plus Money Market Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES - 57.61%
U.S. TREASURY BILLS - 29.84%
$50,000,000 U.S. Treasury Bills 4.39 %# 05/27/99 $ 49,655,055
75,000,000 U.S. Treasury Bills 4.40 # 06/10/99 74,354,688
250,000,000 U.S. Treasury Bills 4.54 # 04/22/99 249,307,583
275,000,000 U.S. Treasury Bills 4.58 # 04/19/99 274,337,563
--------------
$ 647,654,889
U.S. TREASURY NOTES - 27.77%
$20,000,000 U.S. Treasury Notes 5.38 % 01/31/00 $ 20,074,989
50,000,000 U.S. Treasury Notes 5.50 02/29/00 50,292,250
50,000,000 U.S. Treasury Notes 5.63 11/30/99 50,328,335
30,000,000 U.S. Treasury Notes 5.88 08/31/99 30,085,890
60,000,000 U.S. Treasury Notes 6.00 06/30/99 60,237,737
69,300,000 U.S. Treasury Notes 6.38 04/30/99 69,343,387
60,000,000 U.S. Treasury Notes 6.38 07/15/99 60,161,614
84,635,000 U.S. Treasury Notes 6.50 04/30/99 84,698,665
50,000,000 U.S. Treasury Notes 6.75 06/30/99 50,252,783
25,000,000 U.S. Treasury Notes 7.00 04/15/99 25,014,003
50,000,000 U.S. Treasury Notes 7.13 02/29/00 50,986,190
50,000,000 U.S. Treasury Notes 7.75 01/31/00 51,194,716
--------------
$ 602,670,559
TOTAL U.S. TREASURY SECURITIES $1,250,325,448
(Cost $1,250,325,448)
</TABLE>
43
<PAGE>
Treasury Plus Money Market Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 42.32%
$138,620,00 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 138,620,000
208,190,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.90 04/01/99 208,190,000
290,697,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 290,697,000
280,947,573 Morgan Stanley & Company Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 280,947,573
--------------
TOTAL REPURCHASE AGREEMENTS $ 918,454,573
(Cost $918,454,573)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $2,168,780,021)* 99.93% $2,168,780,021
(Notes 1 and 3)
Other Assets and Liabilities, Net 0.07 1,554,944
------ --------------
TOTAL NET ASSETS 100.00% $2,170,334,965
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
45
<PAGE>
Money Market Funds STATEMENT OF ASSETS AND LIABILITIES - MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
CALIFORNIA MONEY
TAX-FREE MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $13,675,000 for the Government
Money Market Fund, $273,820,000 for
the Money Market Fund, $479,541,000
for the Prime Money Market Fund and
$918,454,573 for the Treasury Plus
Money Market Fund) $2,194,316,982 $58,850,631
Cash 309,896 12,283
RECEIVABLES
Interest 23,749,281 291,899
Investment securities sold 34,179,000 0
Organization expenses, net of
amortization 0 0
Prepaid expenses 13,017 2,679
TOTAL ASSETS 2,252,568,176 59,157,492
LIABILITIES
Payables:
Investment securities purchased 0 0
Distribution to shareholders 4,182,716 213,550
Due to distributor (Note 2) 1,018,566 20,630
Due to adviser (Note 2) 1,145,214 30,937
Other 98,803 55,782
TOTAL LIABILITIES 6,445,299 320,899
TOTAL NET ASSETS $2,246,122,877 $58,836,593
NET ASSETS CONSIST OF:
Paid-in capital $2,246,414,230 $58,836,593
Undistributed net realized gain (loss)
on investments (291,353) 0
TOTAL NET ASSETS $2,246,122,877 $58,836,593
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A(1) $2,246,122,877 $58,836,593
Shares outstanding - Class A(1) 2,246,419,037 58,837,807
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A
Shares outstanding - Administrative
Class N/A N/A
Net asset value and offering price per
share -
Administrative Class N/A N/A
Net assets - Class E N/A N/A
Shares outstanding - Class E N/A N/A
Net asset value and offering price per
share - Class E N/A N/A
Net assets - Institutional Class N/A N/A
Shares outstanding - Institutional Class N/A N/A
Net asset value and offering price per
share -
Institutional Class N/A N/A
Net assets - Class S/Service Class N/A N/A
Shares outstanding - Class S/Service
Class N/A N/A
Net asset value and offering price per
share -
Class S/Service Class N/A N/A
- ---------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES - MARCH 31, 1999 Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL
MONEY TAX-FREE PRIME TREASURY PLUS
MARKET MONEY MONEY MARKET MONEY MARKET
FUND MARKET FUND FUND FUND
<S> <C> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value and
cost (includes repurchase agreements
of $13,675,000 for the Government
Money Market Fund, $273,820,000 for
the Money Market Fund, $479,541,000
for the Prime Money Market Fund and
$918,454,573 for the Treasury Plus
Money Market Fund) $10,384,708,075 $80,542,303 $3,899,480,450 $2,168,780,021
Cash 54,685 566,915 69,313 12,037
RECEIVABLES
Interest 74,808,168 436,185 30,030,609 10,119,139
Investment securities sold 0 8,950,000 0 0
Organization expenses, net of
amortization 5,253 14,179 20,485 37,822
Prepaid expenses 158,492 15,575 13,585 11,420
TOTAL ASSETS 10,459,734,673 90,525,157 3,929,614,442 2,178,960,439
LIABILITIES
Payables:
Investment securities purchased 119,947,457 1,300,000 49,975,044 0
Distribution to shareholders 36,228,067 186,740 14,820,663 7,316,571
Due to distributor (Note 2) 1,367,279 3,061 307,109 225,453
Due to adviser (Note 2) 5,660,873 49,764 1,180,252 753,702
Other 129,774 107,005 418,240 329,748
TOTAL LIABILITIES 163,333,450 1,646,570 66,701,308 8,625,474
TOTAL NET ASSETS $10,296,401,223 $88,878,587 $3,862,913,134 $2,170,334,965
NET ASSETS CONSIST OF:
Paid-in capital $10,296,746,950 $88,889,603 $3,862,876,341 $2,170,334,963
Undistributed net realized gain (loss)
on investments (345,727) (11,016) 36,793 2
TOTAL NET ASSETS $10,296,401,223 $88,878,587 $3,862,913,134 $2,170,334,965
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A(1) $ 9,137,811,733 $64,949,916 $ 577,213,058 $ 543,902,576
Shares outstanding - Class A(1) 9,137,415,984 64,954,149 577,312,890 543,944,617
Net asset value and offering price per
share - Class A(1) $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net assets - Administrative Class N/A N/A $ 467,150,923 $ 100,108,945
Shares outstanding - Administrative
Class N/A N/A 467,089,055 100,094,495
Net asset value and offering price per
share -
Administrative Class N/A N/A $ 1.00 $ 1.00
Net assets - Class E N/A N/A N/A $ 584,451,000
Shares outstanding - Class E N/A N/A N/A 584,444,940
Net asset value and offering price per
share - Class E N/A N/A N/A $ 1.00
Net assets - Institutional Class N/A $23,928,671 $1,704,093,157 $ 493,986,652
Shares outstanding - Institutional Class N/A 23,935,454 1,704,157,744 494,123,741
Net asset value and offering price per
share -
Institutional Class N/A $ 1.00 $ 1.00 $ 1.00
Net assets - Class S/Service Class $ 1,158,589,490 N/A $1,114,455,996 $ 447,885,792
Shares outstanding - Class S/Service
Class 1,158,539,945 N/A 1,114,564,632 447,903,025
Net asset value and offering price per
share -
Class S/Service Class $ 1.00 N/A $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
STATEMENT OF OPERATIONS - FOR THE YEAR
Money Market Funds ENDED MARCH 31, 1999
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA
TAX-FREE GOVERNMENT
MONEY MONEY
MARKET MARKET
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Interest $66,511,766 $3,500,444
TOTAL INVESTMENT INCOME 66,511,766 3,500,444
EXPENSES (NOTE 2)
Advisory fees 10,663,081 164,043
Administration fees 1,493,733 45,932
Custody fees 377,762 10,958
Shareholder servicing fees 6,401,712 164,043
Portfolio accounting fees 488,278 66,026
Transfer agency fees 2,133,904 65,617
Distribution fees 0 2,624
Organization costs 0 0
Legal and audit fees 160,442 32,422
Registration fees 56,002 48,363
Directors' fees 2,746 2,531
Shareholder reports 121,004 36,059
Other 52,804 5,608
Total Expenses 21,951,468 644,226
Less:
Waived fees and reimbursed expenses (8,080,829) (152,401)
NET EXPENSES 13,870,639 491,825
NET INVESTMENT INCOME 52,641,127 3,008,619
Net realized gain (loss) on sale of
investments (121,194) 5,410
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $52,519,933 $3,014,029
- -----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
STATEMENT OF OPERATIONS - FOR THE YEAR
ENDED MARCH 31, 1999 Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL
TAX-FREE TREASURY
MONEY MONEY PRIME PLUS
MARKET MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $476,740,059 $3,367,704 $165,658,866 $113,540,868
TOTAL INVESTMENT INCOME 476,740,059 3,367,704 165,658,866 113,540,868
EXPENSES (NOTE 2)
Advisory fees 35,120,430 308,938 7,637,553 5,484,252
Administration fees 6,146,075 72,162 2,138,516 1,535,588
Custody fees 1,471,777 17,216 510,193 366,353
Shareholder servicing fees 25,795,807 158,092 4,180,782 4,437,186
Portfolio accounting fees 1,817,516 80,957 672,501 500,237
Transfer agency fees 8,678,711 71,207 1,737,787 1,692,060
Distribution fees 8,216,099 2,407 19,201 12,962
Organization costs 4,503 8,800 13,660 25,216
Legal and audit fees 415,617 22,314 216,330 206,661
Registration fees 902,701 36,072 390,714 256,359
Directors' fees 2,746 2,531 2,746 2,746
Shareholder reports 538,487 61,591 56,565 130,621
Other 226,727 7,571 107,842 109,350
Total Expenses 89,337,196 849,858 17,684,390 14,759,591
Less:
Waived fees and reimbursed
expenses (16,069,450) (288,766) (4,583,494) (3,680,209)
NET EXPENSES 73,267,746 561,092 13,100,896 11,079,382
NET INVESTMENT INCOME 403,472,313 2,806,612 152,557,970 102,461,486
Net realized gain (loss) on sale
of investments 166,441 (327) 94,589 94,206
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $403,638,754 $2,806,285 $152,652,559 $102,555,692
- ----------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND
-----------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 52,641,127 $ 46,259,216
Net realized gain (loss) on sale of
investments (121,194) (95,156)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 52,519,933 46,164,060
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (52,641,127) (46,259,216)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS N/A N/A
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(3) 3,191,791,394 2,490,901,512
Reinvestment of dividends - Class A(3) 45,918,774 43,220,033
Cost of shares redeemed - Class A(3) (3,110,347,456) (1,799,455,338)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(3) 127,362,712 734,666,207
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class 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
S/Service Class N/A N/A
Reinvestment of dividends - Class
S/Service Class N/A N/A
Cost of shares redeemed - Class
S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS 127,241,518 734,571,051
NET ASSETS:
Beginning net assets 2,118,881,359 1,384,310,308
ENDING NET ASSETS $ 2,246,122,877 $ 2,118,881,359
- --------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $364,044,910 AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS CALIFORNIA TAX-FREE MONEY MARKET
FUND.
(2) THE INSTITUTIONAL CLASS CEASED OPERATIONS ON SEPTEMBER 29, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
------------------------------- MONEY MARKET FUND
FOR THE FOR THE ------------------------------------
YEAR ENDED YEAR ENDED FOR THE FOR THE
MARCH 31, MARCH 31, YEAR ENDED YEAR ENDED
1999 1998 MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 3,008,619 $ 3,271,740 $ 403,472,313 $ 304,465,191
Net realized gain (loss) on sale of
investments 5,410 892 166,441 495,081
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 3,014,029 3,272,632 403,638,754 304,960,272
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (3,008,619) (3,271,740) (359,769,107) (267,569,450)
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A (188,647)(2)
CLASS S/SERVICE CLASS N/A N/A (43,703,206) (36,707,094)
From net realized gain on sale of
investments
CLASS A (5,410) (167) 0 0
ADMINISTRATIVE CLASS N/A N/A N/A N/A
CLASS E N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A 0(2)
CLASS S/SERVICE CLASS N/A N/A 0 0
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(5) 211,809,887 199,262,173 5,518,795,093 4,063,160,668
Reinvestment of dividends - Class A(5) 1,726,275 1,543,518 351,157,967 255,837,441
Cost of shares redeemed - Class A(5) (231,567,166) (184,162,738) (3,443,871,290) (2,247,997,951)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(5) (18,031,004) 16,642,953 2,426,081,770 2,071,000,158
Proceeds from shares sold -
Administrative Class N/A N/A N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A N/A N/A
Proceeds from shares sold - Class E N/A N/A N/A N/A
Reinvestment of dividends - Class E N/A N/A N/A N/A
Cost of shares redeemed - Class E N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A 2,301,111(2)
Reinvestment of dividends -
Institutional Class N/A N/A N/A 215,236(2)
Cost of shares redeemed -
Institutional Class N/A N/A N/A (11,839,183)(2)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A (9,322,836)(2)
Proceeds from shares sold - Class
S/Service Class N/A N/A 2,191,020,851 1,708,294,353
Reinvestment of dividends - Class
S/Service Class N/A N/A 43,441,848 35,725,155
Cost of shares redeemed - Class
S/Service Class N/A N/A (2,027,066,523) (1,500,695,653)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A 207,396,176 243,323,855
INCREASE (DECREASE) IN NET ASSETS (18,031,004) 16,643,678 2,633,644,387 2,305,496,258
NET ASSETS:
Beginning net assets 76,867,597 60,223,919 7,662,756,836 5,357,260,578
ENDING NET ASSETS $ 58,836,593 $ 76,867,597 $ 10,296,401,223 $ 7,662,756,836
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $364,044,910 AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS CALIFORNIA TAX-FREE MONEY MARKET
FUND.
(2) THE INSTITUTIONAL CLASS CEASED OPERATIONS ON SEPTEMBER 29, 1997.
(3) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
Money Market Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET
FUND
-------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31,
1999 1998 (1)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 2,806,612 $ 2,217,909
Net realized gain (loss) on sale of
investments (327) (10,252)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,806,285 2,207,657
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,624,736) (1,076,631)
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS (1,181,876) (1,141,278)(4)
CLASS S/SERVICE CLASS N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0
ADMINISTRATIVE CLASS N/A N/A
CLASS E N/A N/A
INSTITUTIONAL CLASS 0 0(4)
CLASS S/SERVICE CLASS N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(5) 234,230,273 243,931,011
Reinvestment of dividends - Class A(5) 1,622,320 999,129
Cost of shares redeemed - Class A(5) (230,195,239) (220,887,156)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(5) 5,657,354 24,042,984
Proceeds from shares sold -
Administrative Class N/A N/A
Reinvestment of dividends -
Administrative Class N/A N/A
Cost of shares redeemed -
Administrative Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS N/A N/A
Proceeds from shares sold - Class E N/A N/A
Reinvestment of dividends - Class E N/A N/A
Cost of shares redeemed - Class E N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A
Proceeds from shares sold -
Institutional Class 506,716,299 436,296,534(4)
Reinvestment of dividends -
Institutional Class 214,647 226,125(4)
Cost of shares redeemed -
Institutional Class (537,304,518) (382,213,633)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (30,373,572) 54,309,026(4)
Proceeds from shares sold - Class
S/Service Class N/A N/A
Reinvestment of dividends - Class
S/Service Class N/A N/A
Cost of shares redeemed - Class
S/Service Class N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS N/A N/A
INCREASE (DECREASE) IN NET ASSETS (24,716,545) 78,341,758
NET ASSETS:
Beginning net assets 113,595,132 35,253,374
ENDING NET ASSETS $ 88,878,587 $ 113,595,132
- ----------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES" SOLD INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) "PROCEEDS FROM SHARES" SOLD INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(3) "PROCEEDS FROM SHARES" SOLD INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND TREASURY PLUS MONEY MARKET FUND
----------------------------------- -----------------------------------
FOR THE FOR THE
FOR THE YEAR ENDED FOR THE YEAR ENDED
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (2) MARCH 31, 1999 1998 (3)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 152,557,970 $ 89,057,989 $ 102,461,486 $ 92,254,980
Net realized gain (loss) on sale of
investments 94,589 205,613 94,206 104,070
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 152,652,559 89,263,602 102,555,692 92,359,050
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (27,896,647) (17,766,272) (21,822,781) (7,909,738)
ADMINISTRATIVE CLASS (28,624,366) (11,412,448)(4) (6,110,905) (2,844,289)(4)
CLASS E N/A N/A (28,595,708) (35,555,799)
INSTITUTIONAL CLASS (55,769,695) (30,624,015) (24,663,853) (25,427,944)
CLASS S/SERVICE CLASS (40,267,262) (29,255,254) (21,268,239) (20,517,210)
From net realized gain on sale of
investments
CLASS A (20,169) 0 (28,818) (1,806)
ADMINISTRATIVE CLASS (21,999) 0(4) (6,270) 0(4)
CLASS E N/A N/A (34,041) (30,443)
INSTITUTIONAL CLASS (44,180) 0 (29,922) (24,671)
CLASS S/SERVICE CLASS (36,688) 0 (27,945) (15,375)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A(5) 3,566,811,184 2,095,338,042 1,880,148,228 1,005,876,144
Reinvestment of dividends - Class A(5) 7,603,683 3,165,358 4,574,374 1,522,843
Cost of shares redeemed - Class A(5) (3,589,517,754) (1,783,218,311) (1,722,403,471) (692,285,990)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A(5) (15,102,887) 315,285,089 162,319,131 315,112,997
Proceeds from shares sold -
Administrative Class 1,792,211,104 1,388,222,454(4) 211,237,826 267,085,382(4)
Reinvestment of dividends -
Administrative Class 27,149,796 9,420,477(4) 6,183,801 2,351,192(4)
Cost of shares redeemed -
Administrative Class (1,953,181,855) (796,735,143)(4) (294,254,788) (92,509,640)(4)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS (133,820,955) 600,907,788(4) (76,833,161) 176,926,934(4)
Proceeds from shares sold - Class E N/A N/A 1,690,444,889 1,732,685,997
Reinvestment of dividends - Class E N/A N/A 0 0
Cost of shares redeemed - Class E N/A N/A (1,821,543,593) (1,837,801,845)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS E N/A N/A (131,098,704) (105,115,848)
Proceeds from shares sold -
Institutional Class 10,313,551,923 2,512,557,623 5,020,036,817 1,810,109,209
Reinvestment of dividends -
Institutional Class 19,732,250 8,027,719 5,523,692 3,525,822
Cost of shares redeemed -
Institutional Class (9,431,689,997) (2,256,346,296) (5,033,058,755) (1,761,790,304)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 901,594,176 264,239,046 (7,498,246) 51,844,727
Proceeds from shares sold - Class
S/Service Class 2,945,429,480 2,169,506,716 3,847,684,188 2,944,938,309
Reinvestment of dividends - Class
S/Service Class 20,604,434 1,912,601 5,368,260 1,738,759
Cost of shares redeemed - Class
S/Service Class (2,505,257,696) (2,143,905,641) (3,772,268,891) (3,062,973,983)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS S/SERVICE CLASS 460,776,218 27,513,676 80,783,557 (116,296,915)
INCREASE (DECREASE) IN NET ASSETS 1,213,418,105 1,208,151,212 27,639,787 322,503,670
NET ASSETS:
Beginning net assets 2,649,495,029 1,441,343,817 2,142,695,178 1,820,191,508
ENDING NET ASSETS $ 3,862,913,134 $ 2,649,495,029 $ 2,170,334,965 $ 2,142,695,178
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES" SOLD INCLUDES $65,805,143 FOR THE INSTITUTIONAL
CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND EXPRESS
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND.
(2) "PROCEEDS FROM SHARES" SOLD INCLUDES $524,869,336 FOR THE CLASS A SHARES
AND $878,272,234 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS MONEY MARKET FUND.
(3) "PROCEEDS FROM SHARES" SOLD INCLUDES $354,329,074 FOR THE CLASS A SHARES
AND $206,192,634 FOR THE ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE
CONSOLIDATION OF THE OVERLAND EXPRESS U.S. TREASURY MONEY MARKET FUND.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) INCLUDES FUNDS WITH A SINGLE CLASS.
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND
CLASS A
----------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (2)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.03 0.01
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.02 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.03) (0.01)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.01)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 2.49% 2.91% 1.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $2,246,123 $2,118,881 $1,384,310
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets 2.46% 2.85% 2.72%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.03% 1.05% 1.03%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 2.08% 2.45% 2.34%
- -----------------------------------------------------------------------------------------------
</TABLE>
(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
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY MARKET
FUND (CONT.) GOVERNMENT MONEY MARKET FUND (1)
CLASS A (CONT.)
---------------------------------- CLASS A
NINE ----------------------------------
MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED ENDED
SEPT. 30, DEC. 31, DEC. 31, MARCH 31, MARCH 31, MARCH 31,
1996 (3) 1995 1994 1999 1998 1997 (2)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.03 0.02 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.03 0.02 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.03) (0.02) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.03) (0.02) (0.05) (0.05) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.04% 3.23% 2.28% 4.68% 4.93% 2.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $1,161,431 $1,031,004 $869,745 $58,837 $76,868 $60,224
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.65% 0.62% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets 2.69% 3.18% 2.26% 4.59% 4.83% 4.62%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.02% 1.01% 1.08% 0.94% 1.00% 1.00%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.32% 2.82% 1.80% 4.40% 4.58% 4.37%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(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
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND (1)
(CONT.)
CLASS A (CONT.)
----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
SEPT. 30, SEPT. 30, SEPT. 30,
1996 1995 1994
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.03
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.03)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.03)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.75% 5.22% 3.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $65,036 $109,368 $194,276
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.77% 0.79% 0.77%
Ratio of net investment income to average net assets 4.74% 5.08% 3.07%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.80% 0.81% 0.79%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.71% 5.06% 3.05%
- -----------------------------------------------------------------------------------------------
</TABLE>
(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
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS A
----------------------------------------------------------------------
NINE
SIX MONTHS MONTHS
YEAR ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1999 1998 1997 (2) 1996 (3) 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.02 0.03 0.05 0.04
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.02 0.03 0.05 0.04
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.02) (0.03) (0.05) (0.04)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02) (0.03) (0.05) (0.04)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 4.79% 5.07% 2.36% 3.55% 5.34% 3.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $9,137,812 $6,711,584 $4,640,148 $3,799,908 $2,892,621 $2,343,942
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.75% 0.75% 0.75% 0.75% 0.75% 0.69%
Ratio of net investment
income to average net
assets 4.67% 4.95% 4.71% 4.66% 5.13% 4.12%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.93% 0.93% 0.90% 0.88% 0.83% 0.89%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.49% 4.77% 4.56% 4.53% 5.05% 3.92%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(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
SEPTEMBER 6, 1996 REORGANIZATION, WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, FIRST INTERSTATE CAPITAL
MANAGEMENT, INC. ("FICM") SERVED AS THE FUND'S ADVISER. IN CONNECTION
WITH THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON
APRIL 1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT,
INC., SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS S
----------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.04 0.04 0.02
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.04 0.04 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.04) (0.04) (0.02)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.04) (0.04) (0.02)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.10% 4.37% 2.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,158,589 $951,172 $707,781
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.42% 1.42% 1.43%
Ratio of net investment income to average net assets 4.01% 4.28% 4.02%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.62% 1.62% 1.56%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 3.81% 4.08% 3.89%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
MONEY MARKET FUND
(CONT.) NATIONAL TAX-FREE MONEY MARKET FUND
CLASS S (CONT.)
---------------------- CLASS A
NINE ----------------------------------------------
MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED YEAR ENDED YEAR ENDED ENDED ENDED
SEPT. 30, DEC. 31, MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1996 (2) 1995 (3) 1999 1998 1997 (1) 1996 (4)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.03 0.03 0.03 0.03 0.01 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.03 0.03 0.03 0.03 0.01 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.03) (0.03) (0.03) (0.03) (0.01) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.03) (0.03) (0.03) (0.01) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 3.03% 2.73% 2.60% 2.93% 1.36% 1.51%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $699,231 $618,899 $64,950 $59,293 $35,253 $4,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.42% 1.43% 0.70% 0.70%(5) 0.64%(5) 0.62%(5)
Ratio of net investment
income to average net
assets 3.98% 4.40% 2.56% 2.87%(5) 2.68%(5) 2.71%(5)
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.55% 1.53% 0.97% 1.13%(5) 1.58%(5) 3.56%(5)
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 3.85% 4.30% 2.29% 2.44%(5) 1.74%(5) (0.23)%(5)
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MAY 25, 1995.
(4) THE FUND COMMENCED OPERATIONS ON APRIL 2, 1996.
(5) THIS RATIO INCLUDES INCOME AND EXPENSES CHARGED TO THE MASTER
PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
59
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
NATIONAL TAX-FREE
MONEY MARKET FUND
(CONT.)
INSTITUTIONAL CLASS
----------------------
PERIOD
YEAR ENDED ENDED
MARCH 31, MARCH 31,
1999 1998 (2)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.01
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) (0.01)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.03) (0.01)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 3.01% 0.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $23,929 $54,302
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.30% 0.30%
Ratio of net investment income to average net assets 3.02% 3.05%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.62% 0.52%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 2.70% 2.83%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)
CLASS A ADMINISTRATIVE CLASS
---------------------------------------------- ----------------------
SIX MONTHS PERIOD
YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1999 1998 1997 (3) 1996 (4) 1999 1998 (2)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.02 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.02 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.02) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02) (0.05) (0.05) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 4.83% 5.24% 2.49% 5.09% 5.12% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $577,213 $592,317 $277,044 $264,900 $467,151 $600,975
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.72% 0.61% 0.55% 0.55% 0.43% 0.40%
Ratio of net investment
income to average net
assets 4.71% 5.11% 4.95% 5.06% 5.02% 5.34%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.78% 0.83% 0.75% 0.68% 0.59% 0.55%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.65% 4.89% 4.75% 4.93% 4.86% 5.19%
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND (1)
(CONT.)
INSTITUTIONAL CLASS
----------------------------------
SIX MONTHS
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (2)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.03
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) (0.03)
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.03)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.31% 5.58% 2.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $1,704,093 $802,511 $538,195
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.25% 0.25% 0.25%
Ratio of net investment income to average net assets 5.12% 5.46% 5.25%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.39% 0.41% 0.38%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.98% 5.30% 5.12%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS PRIME MONEY MARKET FUND (1) (CONT.)
(CONT.) SERVICE CLASS
---------------------- ----------------------------------------------
PERIOD SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
SEPT. 30, SEPT. 30, MARCH 31, MARCH 31, MARCH 31, SEPT. 30,
1996 1995 (3) 1999 1998 1997 (2) 1996
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.01 0.05 0.05 0.03 0.05
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.01 0.05 0.05 0.03 0.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.01) (0.05) (0.05) (0.03) (0.05)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.01) (0.05) (0.05) (0.03) (0.05)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.39% 5.65%** 5.10% 5.37% 2.54% 5.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $423,959 $30,606 $1,114,456 $653,693 $626,105 $740,760
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.26% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment
income to average net
assets 5.33% 5.67% 4.93% 5.24% 5.04% 5.14%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.60% 0.69% 0.68% 0.65% 0.60% 0.62%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.98% 5.24% 4.70% 5.04% 4.89% 4.97%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
PRIME MONEY MARKET
FUND (1) (CONT.)
SERVICE CLASS (CONT.)
----------------------
SIX MONTHS
YEAR ENDED ENDED
SEPT. 30, SEPT. 30,
1995 1994 (3)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.02
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.02)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.02)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 5.60% 3.71%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $614,101 $565,305
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.41% 0.41%
Ratio of net investment income to average net assets 5.47% 3.67%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.68% 0.89%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 5.20% 3.19%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (2)
CLASS A ADMINISTRATIVE CLASS
---------------------------------------------- ----------------------
SIX MONTHS PERIOD
YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1999 1998 1997 (4) 1996 (5) 1999 1998 (6)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.02 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.02 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.02) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.02) (0.05) (0.05) (0.02)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 4.62% 5.06% 2.42% 4.95% 4.85% 1.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $543,903 $381,594 $66,486 $53,706 $100,109 $176,942
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.65% 0.62% 0.55% 0.55% 0.43% 0.40%
Ratio of net investment
income to average net
assets 4.50% 4.93% 4.81% 4.96% 4.80% 5.17%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.79% 0.85% 0.75% 0.67% 0.63% 0.56%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.36% 4.70% 4.61% 4.84% 4.60% 5.01%
- ----------------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS PACIFIC AMERICAN LIQUID ASSETS, INC. THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN MONEY
MARKET PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA PRIME MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON OCTOBER 1, 1995.
(6) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND(1)
CLASS E
----------------------------------
PERIOD
YEAR ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1999 1998 1997 (2)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.00
Net realized gain (loss) on investments 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.00
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05) 0.00
Distributions from net realized gain 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.62% 4.99% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $584,451 $715,554 $820,657
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets 4.54% 4.87% 4.86%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 0.78% 0.84% 0.88%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 4.41% 4.68% 4.63%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
66
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
INSTITUTIONAL CLASS
----------------------------------------------------------
SIX MONTHS PERIOD
YEAR ENDED YEAR ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, SEPT. 30, SEPT. 30,
1999 1998 1997 (3) 1996 1995 (4)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.05 0.05 0.03 0.05 0.01
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.05 0.05 0.03 0.05 0.01
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.05) (0.05) (0.03) (0.05) (0.01)
Distributions from net
realized gain 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05) (0.03) (0.05) (0.01)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 5.04% 5.41% 2.58% 5.26% 5.51%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $493,987 $501,494 $449,647 $540,689 $36,443
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.25% 0.25% 0.25% 0.25% 0.26%
Ratio of net investment
income to average net
assets 4.92% 5.28% 5.11% 5.21% 5.42%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.41% 0.40% 0.39% 0.59% 0.69%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.76% 5.13% 4.97% 4.87% 4.99%
- ----------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON MARCH 24, 1997.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON AUGUST 11, 1995.
The accompanying notes are an integral part of these financial statements.
67
<PAGE>
Money Market Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY
MARKET FUND (1)
(CONT.)
SERVICE CLASS
----------------------
YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31,
1999 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05
Net realized gain (loss) on investments 0.00 0.00
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05
LESS DISTRIBUTIONS:
Dividends from net investment income (0.05) (0.05)
Distributions from net realized gain 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.05) (0.05)
---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED) 4.83% 5.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $447,886 $367,111
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.45% 0.45%
Ratio of net investment income to average net assets 4.70% 5.07%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 0.70% 0.65%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 4.45% 4.87%
- -----------------------------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
68
<PAGE>
FINANCIAL HIGHLIGHTS Money Market Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET FUND (1) (CONT.)
SERVICE CLASS (CONT.)
----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, SEPT. 30, SEPT. 30,
1997 (2) 1996 1995 1994 (3)
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.05 0.05 0.02
Net realized gain (loss)
on investments 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.02 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.02)
Distributions from net
realized gain 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.02) (0.05) (0.05) (0.02)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED) 2.47% 5.03% 5.42% 3.75%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $483,401 $1,340,325 $1,001,707 $690,630
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.45% 0.45% 0.42% 0.43%
Ratio of net investment
income to average net
assets 4.91% 4.98% 5.32% 3.72%
- ----------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.61% 0.60% 0.66% 0.90%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 4.75% 4.83% 5.08% 3.25%
- ----------------------------------------------------------------------------
</TABLE>
** ANNUALIZED
(1) THE FUND OPERATED AS A PORTFOLIO OF PACIFIC AMERICAN FUNDS THROUGH
OCTOBER 1, 1994, WHEN IT WAS REORGANIZED AS THE PACIFIC AMERICAN U.S.
TREASURY PORTFOLIO, A PORTFOLIO OF PACIFICA FUNDS TRUST. IN JULY 1995,
THE FUND WAS RENAMED THE PACIFICA TREASURY MONEY MARKET FUND, AND ON
SEPTEMBER 6, 1996, THE FUND WAS REORGANIZED AS A SERIES OF STAGECOACH
FUNDS, INC. IN CONJUNCTION WITH THE SEPTEMBER 6, 1996 REORGANIZATION,
WFB ASSUMED INVESTMENT ADVISORY RESPONSIBILITIES. PRIOR TO APRIL 1,
1996, FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM") SERVED AS THE
FUND'S ADVISER. IN CONNECTION WITH THE MERGER OF FIRST INTERSTATE
BANCORP INTO WELLS FARGO & CO. ON APRIL 1, 1996, FICM WAS RENAMED
WELLS FARGO INVESTMENT MANAGEMENT, INC., SUBSEQUENTLY RENAMED WELLS
CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
69
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
70
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and is currently comprised of thirty-one separate series. These financial
statements represent the California Tax-Free Money Market, Government Money
Market, Money Market, National Tax-Free Money Market, Prime Money Market and
Treasury Plus Money Market Funds (each, a "Fund", collectively, the "Funds"),
each, with the exception of the California Tax-Free Money Market Fund, a
diversified series of the Company. The California Tax-Free Money Market Fund is
a non-diversified series of the Company.
Prior to August 1, 1998 the California Tax-Free Money Market, Government Money
Market, Money Market, National Tax-Free Money Market, Prime Money Market and
Treasury Plus Money Market Funds were known as the "California Tax-Free Money
Market Mutual", "Government Money Market Mutual", "Money Market Mutual",
"National Tax-Free Money Market Mutual", "Prime Money Market Mutual" and
"Treasury Money Market Mutual" Funds, respectively.
Effective at the close of business on December 12, 1997, the Funds of Overland
Express Funds, Inc. were consolidated into the Company in a tax-free exchange
for shares of designated classes of the corresponding Stagecoach fund. Also, at
the close of business on December 12, 1997, funds structured as a "feeder" fund
in a "master-feeder" structure were restructured to invest directly in a
portfolio of securities, rather than to invest in a portfolio of securities
through a "master" portfolio. Effective on September 6, 1996 the Pacifica Funds
Trust was consolidated into the Company in a tax-free exchange for shares of
designated classes of the corresponding Stagecoach fund.
The Money Market Fund offers Class A and Class S shares. The Prime Money
Market and Treasury Plus Money Market Funds offer Class A, Administrative Class,
Institutional Class, and Service Class shares. The Treasury Plus Money Market
Fund also offers Class E shares. The National Tax-Free Money Market Fund offers
Class A and Institutional Class shares. The California Tax-Free Money Market and
Government Money Market Funds offer a single class of shares. The separate
classes of shares differ principally in the distribution fees, shareholder
servicing fees and transfer agency fees. Shareholders of each class also bear
certain expenses that pertain to that particular class. All shareholders bear
the common expenses of the Fund and earn income from the portfolio pro
71
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
rata based on the average daily net assets of each class, without distinction
between share classes. Dividends are determined separately for each class based
on income and expenses allocable to each class. Realized gains are allocated to
each class pro rata based on the net assets of each class on the date of
distribution. No class has preferential dividend rights. Differences in per
share dividend rates generally result from the relative weightings of pro rata
income and realized gain and loss allocations and from differences in separate
class expenses, including distribution, shareholder servicing and transfer
agency fees.
The following significant accounting policies are consistently followed by the
Company in the preparation of its financial statements, and such policies are in
conformity with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Funds invest only in securities with remaining maturities not exceeding
397 days (thirteen months). Certain floating- and variable-rate instruments in
the portfolios may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer at
par value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a constant
net asset value of $1.00 per share, although there is no assurance that they
will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Interest income is
accrued daily. Realized gains or losses are reported on the basis of identified
cost of securities delivered.
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and to take action to obtain additional collateral as necessary to maintain
market value equal to or greater than the resale price. The repurchase
agreements held by the Funds are collateralized by instruments such as U.S.
Treasury or federal agency obligations.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Any distributions to shareholders from net
realized capital gains are declared and distributed at least annually.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Company to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net realized
capital gains (after reduction for capital loss carryforwards) sufficient to
relieve it from all, or substantially all, federal income taxes. Accordingly, no
provision for federal income taxes was required at March 31, 1999. The following
Funds had estimated net capital loss carryforwards at March 31, 1999:
<TABLE>
<CAPTION>
YEAR CAPITAL LOSS
FUND EXPIRES CARRYFORWARDS
- ---------------------------------------------------------------------------
<S> <C> <C>
California Tax-Free Money Market Fund 2002 $ 88,978
2003 31,569
2005 144,877
2006 25,929
Money Market Fund 2003 345,727
National Tax-Free Money Market Fund 2004 6,351
2005 437
2006 3,692
2007 536
</TABLE>
The Company's Board of Directors intends to offset net capital gains with each
capital loss carryforward, and no capital gain distribution shall be made until
each such carryforward has been fully utilized or expires.
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from
73
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassifications.
DEFERRED ORGANIZATION COSTS
Certain costs incurred in connection with the organization of the Funds and
their initial registration with the Securities and Exchange Commission and with
the various states are amortized on a straight-line basis over 60 months from
the date each Fund commenced operations.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into separate advisory contracts on behalf of the
Funds with WFB. Pursuant to the contracts, WFB has agreed to provide the Funds
with daily portfolio management. Under the contracts with the Funds, WFB is
entitled to be paid a monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY
FUND NET ASSETS
- -------------------------------------------------------------------------
<S> <C>
California Tax-Free Money Market Fund 0.50
Government Money Market Fund 0.25
Money Market Fund 0.40
National Tax-Free Money Market Fund 0.30
Prime Money Market Fund 0.25
Treasury Plus Money Market Fund 0.25
</TABLE>
On August 1, 1998, Wells Capital Management Incorporated ("WCM"), a
wholly-owned subsidiary of WFB, began acting as investment sub-advisor to the
Funds. WCM is entitled to receive from WFB, as compensation for its sub-advisory
services to the Funds, a monthly fee at the annual rate of 0.05% of the Funds'
average daily net assets up to $960 million and 0.04% of the Funds' average
daily net assets in excess of $960 million. WCM's minimum annual fee is $120,000
for each Fund. This minimum annual fee does not increase the advisory fees paid
by the Funds to WFB.
The Company has entered into contracts on behalf of each Fund with WFB,
whereby WFB is responsible for providing custody and portfolio accounting
services for the Funds. Pursuant to the contracts, WFB is entitled to certain
74
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
transaction charges plus a monthly fee for custody services at an annual rate of
0.0167% of the average daily net assets of each Fund. For portfolio accounting
services, WFB is entitled to a monthly base fee from each Fund of $2,000 plus an
annual fee of 0.07% of the first $50 million of each Fund's average daily net
assets, 0.045% of the next $50 million, and 0.02% of each Fund's average daily
net assets in excess of $100 million.
The Company has entered into a contract on behalf of the Funds with WFB,
whereby WFB provides transfer agency services for the Funds. Under the transfer
agency contract, WFB is entitled to receive transfer agency fees at the
following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY NET ASSETS
-------------------------------------------------------
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A* CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
California Tax-Free Money
Market Fund 0.10 N/A N/A N/A N/A
Government Money Market
Fund 0.10 N/A N/A N/A N/A
Money Market Fund 0.10 N/A N/A N/A 0.10
National Tax-Free Money
Market Fund 0.10 N/A N/A 0.02 N/A
Prime Money Market Fund 0.10 0.02 N/A 0.02 0.10
Treasury Plus Money
Market Fund 0.10 0.02 0.10 0.02 0.10
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The transfer agency fees paid on behalf of the Funds for the year ended March
31, 1999 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $7,691,076 N/A N/A N/A $ 987,635*
National Tax-Free Money
Market Fund 63,237 N/A N/A $ 7,970 N/A
Prime Money Market Fund 593,229 $ 114,105 N/A 215,692 814,761
Treasury Plus Money
Market Fund 482,998 25,533 629,732 100,032 453,765
</TABLE>
Transfer agency fees for the California Tax-Free Money Market and Government
Money Market Funds for the year ended March 31, 1999, are disclosed in the
Statement of Operations.
75
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
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 the
following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY NET ASSETS
-----------------------------------------------
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A* CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Tax-Free Money
Market Fund 0.30 N/A N/A N/A
Government Money Market Fund 0.25 N/A N/A N/A
Money Market Fund 0.30 N/A N/A 0.25
National Tax-Free Money Market
Fund 0.25 N/A N/A N/A
Prime Money Market Fund 0.30 0.15 N/A 0.20
Treasury Plus Money Market
Fund 0.30 0.15 0.30 0.20
</TABLE>
* INCLUDES FUNDS WITH A SINGLE CLASS.
The shareholder servicing fees paid on behalf of the Funds for the year ended
March 31, 1999 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE SERVICE
FUND CLASS A CLASS CLASS E CLASS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Money Market Fund $23,073,231 N/A N/A $2,722,576
Prime Money Market Fund 1,779,596 $ 771,664 N/A 1,629,522
Treasury Plus Money Market
Fund 1,448,993 191,467 $1,889,196 907,530
</TABLE>
Shareholder servicing fees for the California Tax-Free Money Market,
Government Money Market and National Tax-Free Money Market Funds for the year
ended March 31, 1999 are disclosed in the Statement of Operations.
Prior to March 25, 1999, the Company had entered into administration
agreements on behalf of the Funds whereby WFB as administrator and Stephens,
Inc. ("Stephens") as co-administrator provided each Fund with administration
services. Under the prior arrangement, WFB and Stephens were entitled to receive
monthly fees at the annual rates of 0.03% and 0.04%, respectively, of each
Fund's average daily net assets.
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB will act as
as the sole Administrator of the Funds and is entitled to receive monthly fees
at an annual rate of 0.15% of the average daily net assets of the Funds.
The Company has adopted separate Distribution Plans for single class Funds,
Class A shares of the Funds, Class E shares of the Treasury Plus Money Market
Fund and Class S shares of the Money Market Fund pursuant to Rule 12b-1
76
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
under the 1940 Act (each, a "Plan"). The Plans for the California Tax-Free Money
Market Fund and the Class A shares of the Money Market Fund provide that such
Funds 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. These Plans for the Class A shares provide only for reimbursement of
actual expenses. The Plans for the Class A shares of the Government Money
Market, National Tax-Free Money Market, Prime Money Market and Treasury Plus
Money Market Funds provide that such Funds may pay to Stephens, as compensation
for distribution-related services or as reimbursement for distribution-related
expenses, up to 0.05% of the average daily net assets attributable to such
shares.
Under the Plan for Class S shares of the Money Market Fund, the Fund may pay
to Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, a monthly fee at an annual rate
of 0.75% of the average daily net assets attributable to its Class S shares.
Under the Plan for Class E shares of the Treasury Plus Money Market Fund, the
Fund may pay to Stephens, as compensation for distribution-related services or
as reimbursement for distribution-related expenses, a monthly fee at an annual
rate of up to 0.10% of the average daily net assets attributable to its Class E
shares.
Each Fund may participate in joint distribution activities with other Funds,
in which event, expenses reimbursed out of the assets of one of the Funds may be
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
Distribution fees paid on behalf of the Funds for the year ended March 31,
1999 were as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS E CLASS S
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Money Market Fund $ 48,371 N/A $ 8,167,728
Treasury Plus Money Market Fund 12,962 $0 N/A
</TABLE>
Distribution fees for the California Tax-Free Money Market, Government Money
Market, National Tax-Free Money Market and Prime Money Market Funds for the year
ended March 31, 1999 are disclosed in the Statement of Operations.
77
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
The registration fees paid on behalf of the Funds for the year ended March 31,
1999 were as follows:
<TABLE>
<CAPTION>
CLASS S/
ADMINISTRATIVE INSTITUTIONAL SERVICE
FUND CLASS A CLASS CLASS E CLASS CLASS
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $ 797,850 N/A N/A N/A $ 104,851
National Tax-Free Money
Market Fund 20,714 N/A N/A $ 15,358 N/A
Prime Money Market Fund 33,237 $ 261,023 N/A 41,427 55,027
Treasury Plus Money
Market Fund 42,337 102,067 10,357 21,735 79,863
</TABLE>
Registration fees for the California Tax-Free Money Market and Government
Money Market Funds for the year ended March 31, 1999 are disclosed in the
Statement of Operations.
WAIVED FEES AND REIMBURSED EXPENSES
The amount shown as waived fees and reimbursed expenses on the Statement of
Operations for the year ended March 31, 1999 was waived by WFB. Waived fees and
reimbursed expenses continue at the discretion of WFB.
Certain officers and one director of the Company are also officers of
Stephens. As of March 31, 1999, Stephens owned 110,717 shares of the California
Tax-Free Money Market Fund, 26 shares of the Government Money Market Fund,
13,060 shares of the Money Market Fund, 265 shares of the National Tax-Free
Money Market Fund, 1,580,593 shares of the Prime Money Market Fund and 144,780
shares of the Treasury Plus Money Market Fund.
3. CAPITAL SHARE TRANSACTIONS
As of March 31, 1999, there were over 242 billion shares of $0.001 par value
capital stock authorized by the Company. As of March 31, 1999, each Fund was
authorized to issue 10 billion shares of $0.001 par value capital stock for each
class of shares.
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE MONEY
MARKET FUND
------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (1)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 3,191,791,394 2,490,900,820
Shares issued in reinvestment of dividends 45,918,774 43,220,033
Shares redeemed -- Class A (3,110,347,456) (1,799,455,338)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 127,362,712 734,665,515
</TABLE>
(1) "SHARES SOLD" INCLUDES 364,044,218 AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND CALIFORNIA TAX-FREE MONEY MARKET FUND.
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 211,809,887 199,262,173
Shares issued in reinvestment of dividends 1,726,275 1,543,518
Shares redeemed -- Class A (231,567,166) (184,162,738)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (18,031,004) 16,642,953
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 5,518,795,093 4,063,073,840
Shares issued in reinvestment of dividends --
Class A 351,157,967 255,837,441
Shares redeemed -- Class A (3,443,871,290) (2,247,997,951)
NET INCREASE(DECREASE) IN SHARES OUTSTANDING --
CLASS A 2,426,081,770 2,070,913,330
Shares sold -- Class S 2,191,020,851 1,708,294,353
Shares issued in reinvestment of dividends --
Class S 43,441,848 35,725,154
Shares redeemed -- Class S (2,027,066,523) (1,500,695,653)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS S 207,396,176 243,323,854
</TABLE>
<TABLE>
<CAPTION>
NATIONAL TAX-FREE MONEY MARKET
FUND
------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 234,230,273 243,931,477
Shares issued in reinvestment of dividends --
Class A 1,622,320 999,129
Shares redeemed -- Class A (230,195,239) (220,887,156)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 5,657,354 24,043,450
Shares sold -- Institutional Class(1) 506,716,299 436,296,534
Shares issued in reinvestment of dividends --
Institutional Class(1) 214,647 226,125
Shares redeemed -- Institutional Class(1) (537,304,518) (382,213,633)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS(1) (30,373,572) 54,309,026
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 65,805,624 FOR INSTITUTIONAL CLASS SHARES AS A RESULT
OF THE CONSOLIDATION OF THE OVERLAND NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND.
79
<PAGE>
Money Market Funds NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 3,566,811,184 2,095,335,772
Shares issued in reinvestment of dividends --
Class A 7,603,683 3,165,358
Shares redeemed -- Class A (3,589,517,754) (1,783,218,311)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A (15,102,887) 315,282,819
Shares sold -- Administrative Class(1) 1,792,211,104 1,388,224,676
Shares issued in reinvestment of dividends --
Administrative Class(1) 27,149,796 9,420,477
Shares redeemed -- Administrative Class(1) (1,953,181,855) (796,735,143)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (133,820,955) 600,910,010
Shares sold -- Institutional Class 10,313,551,923 2,512,557,618
Shares issued in reinvestment of dividends --
Institutional Class 19,732,250 8,027,719
Shares redeemed -- Institutional Class (9,431,689,997) (2,256,346,296)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS 901,594,176 264,239,041
Shares sold -- Service Class 2,945,429,480 2,169,506,710
Shares issued in reinvestment of dividends --
Service Class 20,604,434 1,912,601
Shares redeemed -- Service Class (2,505,257,696) (2,143,905,641)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 460,776,218 27,513,670
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 524,867,072 FOR CLASS A SHARES AND 878,274,456 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
MONEY MARKET FUND.
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS Money Market Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS MONEY MARKET
FUND
------------------------------
FOR THE
FOR THE YEAR ENDED
YEAR ENDED MARCH 31,
MARCH 31, 1999 1998 (2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 1,880,148,228 1,005,879,507
Shares issued in reinvestment of dividends --
Class A 4,574,374 1,522,843
Shares redeemed -- Class A (1,722,403,471) (692,284,609)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS A 162,319,131 315,117,741
Shares sold -- Administrative Class(1) 211,237,826 267,085,382
Shares issued in reinvestment of dividends --
Administrative Class(1) 6,183,801 2,351,192
Shares redeemed -- Administrative Class(1) (294,254,788) (92,508,918)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
ADMINISTRATIVE CLASS(1) (76,833,161) 176,927,656
Shares sold -- Class E 1,690,444,889 1,732,685,998
Shares issued in reinvestment of dividends --
Class E 0 0
Shares redeemed -- Class E (1,821,543,593) (1,837,799,382)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
CLASS E (131,098,704) (105,113,384)
Shares sold -- Institutional Class 5,020,036,817 1,810,109,209
Shares issued in reinvestment of dividends --
Institutional Class 5,523,692 3,525,822
Shares redeemed -- Institutional Class (5,033,058,755) (1,761,788,362)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
INSTITUTIONAL CLASS (7,498,246) 51,846,669
Shares sold -- Service Class 3,847,684,188 2,944,938,308
Shares issued in reinvestment of dividends --
Service Class 5,368,260 1,738,759
Shares redeemed -- Service Class (3,772,268,891) (3,062,972,733)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING --
SERVICE CLASS 80,783,557 (116,295,666)
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(2) "SHARES SOLD" INCLUDES 354,332,437 FOR CLASS A SHARES AND 206,192,634 FOR
ADMINISTRATIVE CLASS SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND
U.S. TREASURY MONEY MARKET FUND.
4. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the Stagecoach Family of
Funds with the Norwest Advantage Family of Funds following last November's
merger of Wells Fargo & Company and Norwest Corporation. The Company will
present the reorganization to Fund shareholders for their approval at a special
shareholders' meeting that is planned for August 1999.
81
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
82
<PAGE>
INDEPENDENT AUDITORS' REPORT Money Market Funds
- ------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
Stagecoach Funds, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of the California Tax-Free Money Market
Fund, Government Money Market Fund, Money Market Fund, National Tax-Free Money
Market Fund, Prime Money Market Fund, and Treasury Plus Money Market Fund (six
of the funds comprising Stagecoach Funds, Inc.) as of March 31, 1999, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the years in the two-year period then ended,
and financial highlights for the periods indicated herein. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. For the Prime Money
Market Fund and the Treasury Plus Money Market Fund, all years or periods
indicated in the accompanying financial highlights ending prior to October 1,
1995 were audited by other auditors whose report dated November 15, 1995
expressed an unqualified opinion on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards required that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1999, by correspondence with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Stagecoach Funds, Inc. as of March 31, 1999, the
results of their operations, the changes in their net assets, and their
financial highlights for the periods indicated herein, in conformity with
generally accepted accounting principles.
[KPMG LLP SIGNATURE]
San Francisco, California
May 7, 1999
83
<PAGE>
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84
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
85
<PAGE>
LIST OF ABBREVIATIONS
- ------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which
may have appeared in this report.
<TABLE>
<S> <C> <C>
ABAG -- Association of Bay Area Governments
ADR -- American Depository Receipts
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CMT -- Constant Maturity Treasury
COFI -- Cost of Funds Index
CONNIE LEE -- Connie Lee Insurance Company
COP -- Certificate of Participation
CP -- Commercial Paper
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
EDFA -- Education Finance Authority
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance, Inc
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
LIBOR -- London Interbank Offered Rate
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MTN -- Medium Term Note
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PSFG -- Public School Fund Guaranty
RAW -- Revenue Anticipation Warrants
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
R&D -- Research & Development
SFMR -- Single Family Mortgage Revenue
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
V/R -- Variable Rate
</TABLE>
86
<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
1-800-222-8222. Read the prospectus carefully before you invest or send money.
STAGECOACH FUNDS-Registered
Trademark-
P.O. Box 7066
San Francisco, CA 94120-7066
DATED MATERIAL
PLEASE EXPEDITE
SC MMA AR (5/99)
