<PAGE>
STAGECOACH FUNDS-Registered
Trademark-
Semi Annual Report
EQUITY Funds
Balanced Fund
Diversified Equity Income Fund
Equity Index Fund
Equity Value Fund
Growth Fund
International Equity Fund
Small Cap Fund
Strategic Growth Fund
Stagecoach Equity Funds
1999 Semi-Annual Report
March 31, 1999
<PAGE>
Equity Funds TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS...........................................1
PERFORMANCE AT A GLANCE AND
INVESTMENT ADVISOR COMMENTARY
Balanced Fund................................................3
Diversified Equity Income Fund...............................8
Equity Index Fund...........................................13
Equity Value Fund...........................................17
Growth Fund.................................................22
International Equity Fund...................................26
Small Cap Fund..............................................31
Strategic Growth Fund.......................................35
PORTFOLIOS OF INVESTMENTS
Balanced Fund...............................................39
Diversified Equity Income Fund..............................46
Equity Index Fund...........................................52
Equity Value Fund...........................................70
Growth Fund.................................................75
International Equity Fund...................................81
Small Cap Fund..............................................86
Strategic Growth Fund.......................................93
STAGECOACH FUNDS
Statement of Assets and Liabilities........................100
Statement of Operations....................................102
Statements of Changes in Net Assets........................104
Financial Highlights.......................................110
Notes to Financial Statements..............................137
LIST OF ABBREVIATIONS..........................................158
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
ii
<PAGE>
LETTER TO SHAREHOLDERS Equity Funds
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TO OUR SHAREHOLDERS
Thank you for investing in the Stagecoach Funds.
We're pleased to provide you with this semi-annual report for the six-month
period ended March 31, 1999. The report provides information about your
investment over the period, including economic and market trends, a performance
summary, a portfolio review and a strategic outlook.
The Stagecoach Funds experienced another period of significant growth, with
net assets increasing from $26 billion to $29 billion as of 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.
A sell-off in the stock market last summer served as an introduction to sharp
market swings and volatility, and set the stage for the remainder of 1998.
Global financial turmoil affected the U.S. financial markets last summer and
fall, but the economy still benefited from overseas investment in the stronger
U.S. markets and Federal Reserve Board policy that drove interest rates down to
historic lows. By the end of 1998, the stock market had set new highs and broad
stock indexes were propelled higher by a series of upbeat earnings reports, and
the economy's two-tiered performance produced boom-like economic growth. Slow
growth was expected for 1999, but by the end of the first quarter, the broad
stock indexes rebounded nicely from a February setback. Healthy economic growth
is expected during the balance of 1999.
During the six-month period ended March 31, 1999, stocks, as measured by the
S&P 500 Index,(1) returned 27.32%. For the same period, the U.S. Government bond
market decreased 5.09% as measured by the Lehman Brothers Long Government Bond
Index.(2)
According to the Investment Company Institute,(3) an estimated 44 million U.S.
households, or 77.3 million
1
<PAGE>
Equity Funds LETTER TO SHAREHOLDERS
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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,
[SIGNATURE]
Michael J. Hogan
Senior Vice President
Wells Fargo Bank,
Mutual Fund Group
[SIGNATURE]
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.
3 "U.S. Household Ownership of Mutual Funds in 1998," INVESTMENT COMPANY
INSTITUTE FUNDAMENTALS, March 1999.
2
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PERFORMANCE AT A GLANCE Balanced Fund
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BALANCED FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)1
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EXCLUDING SALES CHARGES
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<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C> <C>
CLASS A 7.91% 0.75% 11.53% 11.64%
CLASS B 7.54% 0.10% 10.78% 10.87%
INSTITUTIONAL CLASS 7.98% 0.79% 11.66% 11.71%
</TABLE>
INCLUDING SALES CHARGES2
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C> <C>
CLASS A 2.23% (4.56%) 10.34% 10.95%
CLASS B 2.75% (4.31%) 10.53% 10.87%
INSTITUTIONAL CLASS N/A N/A N/A N/A
</TABLE>
3
<PAGE>
Balanced Fund INVESTMENT ADVISOR COMMENTARY
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BALANCED FUND
The Stagecoach Balanced Fund ("the Fund") seeks to provide investors with both
capital appreciation and current income resulting in a high total investment
return consistent with prudent investment risk and a balanced investment
approach. The Fund invests in equity securities and debt instruments. This
flexibility provides portfolio managers with the ability to invest where
opportunities may arise.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Rex Wardlaw and Gregg Giboney manage the equity portion of the Fund, while
Scott Smith manages the bond portion. Mr. Wardlaw brings 10 years of
institutional investment experience to the Fund. He has specialized in
value-style investing and has been managing investments at Wells Fargo and Wells
Capital Management since 1993. Mr. Wardlaw earned a BA in Chemistry from
Northwest Nazarene College, and an MBA in Finance from the University of Oregon.
He also is a Chartered Financial Analyst. Mr. Giboney has been in the securities
industry for 12 years. He holds a BA from Washington State University and an MBA
from the University of Portland. Mr. Giboney is a Chartered Financial Analyst
and is a board member and past President of the Portland Society of Financial
Analysts.
Mr. Smith has more than 12 years of experience in the securities industry,
specializing in intermediate, corporate and government bonds. Mr. Smith received
a BA from the University of San Diego and is a Chartered Financial Analyst.
PERFORMANCE SUMMARY
The Stagecoach Balanced Fund Class A shares posted a cumulative return of
7.91% for the six-month reporting period, excluding sales charges. Because the
Fund invests in both stocks and bonds, the performance will typically fall
between the S&P 500 Index(3) and the Lehman Brothers Government/Corporate Bond
Index(4). During the reporting period, the Fund's performance
4
<PAGE>
INVESTMENT ADVISOR COMMENTARY Balanced Fund
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was closer to the Lehman Brothers Government/Corporate Bond Index, which
returned 7.94% for the period, while the S&P 500 Index returned 27.32%. The Fund
distributed $0.15 in dividend income for Class A shares over the six-month
period and $1.29 in capital gains were distributed from the Fund during the
reporting period. Keep in mind that past performance is no guarantee of future
returns.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 98
PORTFOLIO TURNOVER RATIO 43%
WEIGHTED MEDIAN MARKET CAP - EQUITY ONLY ($B) $23.8
</TABLE>
The equity portion of the portfolio, which comprises approximately 60 percent
of the Fund's total assets, is currently heavily weighted in the utility and
financial services sector. Although the utility sector posted a negative return
over the recent reporting period, we believe that several stocks within this
sector are currently trading at a discount to their intrinsic value, including
Ameritech and GTE, and should perform well as the market recognizes the
valuation disparity in upcoming quarters. Montana Power was one of the top
performers for the Fund. Although this company is primarily known as an electric
utility, it also owns a fiber-optic telecommunications business unit with
significant potential for further appreciation.
The financial sector had a positive impact on the performance of the portfolio
as many financial stocks, including banks, insurance companies and mortgage
originators, recovered from the tumultuous third and fourth quarters of 1998.
Providian Financial, one of the portfolio's top holdings, performed
exceptionally well, along with American Bankers Insurance, which was recently
acquired at a premium, and Cigna. We foresee a continued turnaround in the
financial services sector as international economic conditions improve.
5
<PAGE>
Balanced Fund INVESTMENT ADVISOR COMMENTARY
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TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
FINANCE 17%
UTILITIES 7%
PETROLEUM 6%
INSURANCE COMPANIES 5%
COMPUTER SYSTEMS 4%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
IBM CORPORATION 2.6%
AT & T CORPORATION 2.4%
MOBIL CORPORATION 2.4%
PROVIDIAN FINANCIAL CORPORATION 2.0%
CIGNA CORPORATION 1.8%
COSTCO COMPANIES INCORPORATED 1.8%
CHASE MANHATTAN CORPORATION 1.8%
GTE CORPORATION 1.6%
HARTFORD FINANCIAL SERVICE GROUP 1.6%
BANK OF AMERICA CORPORATION 1.6%
</TABLE>
The duration of the Fund's bond holdings was extended to capture additional
yield in a declining interest rate environment. And as credit quality fears
subsided, the Fund slightly increased its exposure to corporate obligations for
added investment returns. The Fund's other bond holdings remain concentrated in
U.S. Treasury and federal agency securities.
STRATEGIC OUTLOOK
After a prolonged period where large cap growth stocks significantly
outperformed value stocks, market momentum shows preliminary signs of shifting
more toward stocks that are trading at discount. Therefore, the Fund has
reallocated assets toward value by purchasing select stocks of consumer
cyclicals, technology suppliers and auto parts manufacturers. However, we will
continue to weigh opportunities on a case by case basis, focusing on specific
stocks we believe are poised for growth. We also believe that Asia's improving
financial condition bodes well for financial stocks, with certain stocks
offering attractive values at current prices.
6
<PAGE>
INVESTMENT ADVISOR COMMENTARY Balanced Fund
- ------------------------------------------------------------------------
1 Performance shown for the Class A shares of the Stagecoach Balanced Fund for
periods prior to September 6, 1996 reflects performance of the Investor shares
of the Pacifica Balanced Fund, a predecessor portfolio with the same
investment objective and policies as the Stagecoach Balanced Fund. Performance
shown or advertised for the Class B and Institutional Class shares of the
Stagecoach Balanced Fund for periods prior to September 6, 1996 reflects
performance of the Investor shares of the predecessor portfolio, with expenses
of the Investor shares adjusted to reflect Class B and Institutional Class
sales charges and expenses, respectively.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance including
sales charge assumes the Class B share sales charge for the corresponding time
period. There are no sales charges for the Institutional Class shares.
3 The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly
in an index.
4 The Lehman Brothers Government/Corporate Bond Index invests in treasuries,
agencies, publicly issued U.S. Corporate and Yankee debentures and secured
notes that meet specified maturity, liquidity and quality requirements. You
cannot invest directly in an index.
7
<PAGE>
Diversified Equity Income Fund PERFORMANCE AT A GLANCE
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DIVERSIFIED EQUITY INCOME FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (11/18/92)
<S> <C> <C> <C> <C>
CLASS A 7.11% (6.58%) 15.48% 14.00%
CLASS B 6.78% (7.24%) 14.79% 13.31%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (11/18/92)
<S> <C> <C> <C> <C>
CLASS A 1.47% (11.48%) 14.24% 13.04%
CLASS B 1.98% (11.38%) 14.56% 13.31%
</TABLE>
8
<PAGE>
INVESTMENT ADVISOR COMMENTARY Diversified Equity Income Fund
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DIVERSIFIED EQUITY INCOME FUND
The Stagecoach Diversified Equity Income Fund ("the Fund") seeks to earn
current income and a growing stream of income over time, consistent with the
preservation of capital. The Fund invests in income-producing equity securities
and debt instruments, including common stocks and preferred and convertible
securities. Since the Fund offers a conservative approach to equity investing,
at least 90% of the Fund's equity portfolio will be invested in large company
stocks that are generally well-established in their industry and offer high
dividend potential.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Allen Wisniewski and Rex Wardlaw manage the Fund. Mr. Wisniewski has over 13
years of experience in the securities industry, with a focus on equities. Mr.
Wisniewski received his BA and MBA in Economics and Finance from the University
of California at Los Angeles. He is a Chartered Financial Analyst and a member
of the Los Angeles Society of Financial Analysts. Mr. Wardlaw brings 10 years of
institutional investment experience to the Fund. He specializes in value-style
investing and has been managing investments at Wells Fargo since 1993. Mr.
Wardlaw earned a BA in Chemistry from Northwest Nazarene College, and an MBA in
Finance from the University of Oregon. He also is a Chartered Financial Analyst.
Together they bring disciplined investment expertise to equity investing.
PERFORMANCE SUMMARY
The Stagecoach Diversified Equity Income Fund Class A shares posted a
cumulative return of 7.11% for the six-month reporting period, excluding sales
charges. This was below the performance of the S&P 500 Index,(3) a broad-based
stock index. The S&P 500 Index returned 27.32% for the same period.
The Fund distributed $0.16 in dividend income for Class A shares over the
six-month period and $1.64 in
9
<PAGE>
Diversified Equity Income Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
capital gains were distributed from the Fund during the reporting period. Keep
in mind that past performance is no guarantee of future returns.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 76
PORTFOLIO TURNOVER RATIO 24%
WEIGHTED MEDIAN MARKET CAP -- EQUITY ONLY
($B) $17.2
</TABLE>
The Fund is designed specifically to generate a growing stream of income over
time through a diversified portfolio. The Fund's top holdings remain
concentrated in energy and financial stocks, including stocks of Real Estate
Investment Trusts ("REITs"). During periods of market volatility--as witnessed
during this reporting period--the energy and financial sectors tend to perform
well due to the perception that they are relatively safe havens from dramatic
price fluctuations.
Energy stocks were affected by falling gasoline prices during the fourth
quarter of 1998. The situation improved during the first quarter of 1999 as
gasoline prices, along with the share prices of the Fund's energy stocks,
recovered. Despite these dramatic price swings, energy stocks provide attractive
yields, which is an objective of the Fund.
Chase Manhattan Corporation and Household International Incorporated were two
of the portfolio's best performing stocks, with both stocks posting substantial
gains since September 30. However, shares of Fremont General, another top
holding, declined in value due to a delay in the company's securitization
activities. While this delay resulted in slower earnings growth in 1998, the
managers continue to like this stock as earnings growth is expected to
accelerate in 1999.
In general, financial stocks currently offer attractive valuations following
price declines triggered by problems in overseas markets. International markets
have partially recovered from last year's economic meltdown, minimizing the
perception of credit risk that caused financial stocks to decline during that
period. Share prices of financial stocks also tend to appreciate in rising
markets. With this in mind, the Fund reallocated assets from the energy sector
to the financial services
sec-
10
<PAGE>
INVESTMENT ADVISOR COMMENTARY Diversified Equity Income Fund
- ------------------------------------------------------------------------
tor to capture their upside potential. Specifically, the Fund has added BancOne,
Cigna and Washington Mutual to its top holdings.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 20%
UTILITIES 12%
REAL ESTATE INVESTMENT TRUSTS 9%
PETROLEUM 9%
MANUFACTURING PROCESSING 7%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
HOUSEHOLD INTERNATIONAL INCORPORATED 3.9%
ALLTEL CORPORATION 3.1%
FREMONT GENERAL 2.7%
CHASE MANHATTAN CORPORATION 2.7%
DUKE ENERGY CORPORATION 2.5%
BANCONE CORPORATION 2.5%
CIGNA CORPORATION 2.4%
WASHINGTON MUTUAL INCORPORATED 2.4%
KIMBERLY CLARK CORPORATION 2.3%
DUPONT E.I. DE NEMOURS 2.2%
</TABLE>
STRATEGIC OUTLOOK
Financial markets have favored growth and momentum investing over the past
several years, resulting in extreme disparities between growth and most other
investment styles. In part, growth stocks performed well because they were
better positioned to weather the difficult global financial environment.
However, the situation began to change late in the first quarter of 1999 as
stability returned to the marketplace. Going forward, we anticipate that the
market will continue to broaden and benefit once-depressed sectors as investors
shift assets from growth to other areas. In particular, the financial services
sector--the Fund's predominate holding--is poised to capitalize on strengthening
confidence in the banking industry.
11
<PAGE>
Diversified Equity Income Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
1 Performance shown for the Class B shares of the Stagecoach Diversified Equity
Income Fund for periods prior to January 1, 1995 reflects performance of the
Class A shares of the Fund adjusted to reflect Class B sales charges and
expenses.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance including
sales charge assumes the Class B share sales charge for the corresponding time
period.
3 The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly
in an index.
12
<PAGE>
PERFORMANCE AT A GLANCE Equity Index Fund
- ------------------------------------------------------------------------
EQUITY INDEX FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH
PERIOD ENDED
3/31/99 1-YEAR 5-YEAR 10-YEAR
<S> <C> <C> <C> <C>
CLASS A 26.78% 17.63% 25.01% 17.73%
CLASS B 26.31% 16.72% 24.27% 17.01%
CLASS O 26.91% 17.86% 25.22% 17.94%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH
PERIOD ENDED
3/31/99 1-YEAR 5-YEAR 10-YEAR
<S> <C> <C> <C> <C>
CLASS A 21.07% 12.34% 23.86% 17.20%
CLASS B 21.31% 11.72% 24.10% 17.01%
CLASS O N/A N/A N/A N/A
</TABLE>
13
<PAGE>
Equity Index Fund INVESTMENT ADVISOR COMMENTARY
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EQUITY INDEX FUND
The Stagecoach Equity Index Fund ("the Fund") seeks to approximate to the
extent practicable the total rate of return of substantially all common stocks
comprising the Standard & Poor's 500 Composite Index(3) (the S&P 500 Index). We
invest in substantially all of the common stocks listed on the S&P 500 Index and
attempt to achieve a 95% correlation between the performance of the S&P 500
Index and our investment results, before expenses.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
The Equity Index Fund is sub-advised by Barclays Global Fund Advisors, one of
the largest providers of index products in the world.
PERFORMANCE SUMMARY
The Stagecoach Equity Index Fund Class A shares posted a cumulative return of
26.78% for the six-month reporting period, excluding sales charges. This is
below the S&P 500 Index, which returned 27.32% for the same period. The Fund
distributed $0.24 in dividend income for Class A shares over the six-month
period and $3.33 in capital gains were distributed from the Fund during the
reporting period.
The broad stock indexes rebounded nicely from a brief setback in February,
with the Dow Jones Industrial Average breaking the 10,000 level and other equity
benchmarks hitting new highs. Best performing sectors within the Index were
technology and consumer cyclicals, while utilities and consumer staples were
among the poorest performing groups.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 504
PORTFOLIO TURNOVER RATIO 4%
WEIGHTED MEDIAN MARKET CAP ($B) $7.8
</TABLE>
14
<PAGE>
INVESTMENT ADVISOR COMMENTARY Equity Index Fund
- ------------------------------------------------------------------------
The Fund offers instant diversification across the most widely held
industrial, transportation, financial and utility stocks because it invests in
all the stocks held in the S&P 500 Index. Large capitalization stocks held in
the portfolio did well during the six-month period as investors flocked to the
security of larger names and solid earnings growth.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 13%
COMPUTER SYSTEMS 7%
UTILITIES 7%
PHARMACEUTICALS 7%
PETROLEUM 6%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.2%
GENERAL ELECTRIC COMPANY 3.4%
WAL-MART STORES INCORPORATED 1.9%
INTEL CORPORATION 1.9%
MERCK & COMPANY INCORPORATED 1.8%
PFIZER INCORPORATED 1.7%
CISCO SYSTEMS INCORPORATED 1.6%
EXXON CORPORATION 1.6%
AT & T CORPORATION 1.6%
IBM CORPORATION 1.5%
</TABLE>
STRATEGIC OUTLOOK
After a prolonged period where large cap growth stocks significantly
outperformed value stocks, market momentum shows preliminary signs of shifting
more toward stocks that are trading at discounts. Even with the anticipated
modest growth ahead, large companies with a high degree of certainty and
visibility should do well the remainder of this year. As always, we will
continue to weigh opportunities on a case by case basis, focusing on specific
stocks we believe are poised for
15
<PAGE>
Equity Index Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
growth. We also believe that Asia's improving financial condition bodes well for
financial stocks, with certain stocks offering attractive values at current
prices.
1 Performance shown for the Class A shares of the Stagecoach Equity Index Fund
reflects performance of the Stagecoach Corporate Stock Fund, a predecessor
portfolio with the same investment objective and policies as the Stagecoach
Equity Index Fund. Prior to January 1, 1992, performance shown or advertised
for the Class A shares of the Stagecoach Equity Index Fund reflects
performance of the Corporate Stock Fund of the Wells Fargo Investment Trust
for Retirement Programs, a predecessor portfolio of the Stagecoach Corporate
Stock Fund. Performance shown for Class O shares of the Stagecoach Equity
Index Fund for periods prior to February 1, 1999 reflects performance of the
Class B shares adjusted to reflect Class O shares charges and expenses.
Performance shown for the Class B shares of the Stagecoach Equity Index Fund
for periods prior to February 17, 1998 reflects performance of the Class A
shares of the Fund adjusted to reflect Class B sales charges and expenses.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 4.50%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance including
sales charge assumes the Class B share sales charge for the corresponding time
period. Class O shares are sold without a front-end sales charge or a
contingent deferred sales charge.
3 "Standard & Poor's," "S&P," "S&P 500," Standard & Poor's 500 and 500 are
trademarks of McGraw-Hill, Inc. and have been licensed. The Fund is not
sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in the
Fund. You cannot invest directly in an index.
16
<PAGE>
PERFORMANCE AT A GLANCE Equity Value Fund
- ------------------------------------------------------------------------
EQUITY VALUE FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)1
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C> <C>
CLASS A 10.16% (8.87%) 15.49% 14.10%
CLASS B 9.80% (9.46%) 14.73% 13.34%
CLASS C 9.80% (9.49%) 14.72% 13.33%
INSTITUTIONAL CLASS 10.22% (8.77%) 15.62% 14.18%
</TABLE>
INCLUDING SALES CHARGES2
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (7/2/90)
<S> <C> <C> <C> <C>
CLASS A 4.38% (13.65%) 14.26% 13.41%
CLASS B 4.80% (13.63%) 14.50% 13.34%
CLASS C 8.80% (10.32%) 14.72% 13.33%
INSTITUTIONAL CLASS N/A N/A N/A N/A
</TABLE>
17
<PAGE>
Equity Value Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
EQUITY VALUE FUND
The Stagecoach Equity Value Fund ("the Fund") seeks to provide investors with
long-term capital appreciation. The Fund invests in common stocks, debt
securities and foreign companies, implementing a value strategy that targets
"out of favor" stocks. Our portfolio managers believe these companies are
underpriced relative to market indicators, making them hidden opportunities for
capital appreciation.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Rex Wardlaw, Allen Wisniewski and Gregg Giboney manage the Fund. Mr. Wardlaw
brings 10 years of institutional investment experience to the Fund. He
specializes in value-style investing and has been managing investments at Wells
Fargo and Wells Capital Management since 1993. Mr. Wardlaw earned a BA in
Chemistry from Northwest Nazarene College, and an MBA in Finance from the
University of Oregon. He is also a Chartered Financial Analyst. Mr. Wisniewski
has over 13 years of experience in the securities industry, with a focus on
equities. Mr. Wisniewski received his BA and MBA in Economics and Finance from
the University of California at Los Angeles. He is a Chartered Financial Analyst
and a member of the Los Angeles Society of Financial Analysts. Mr. Giboney has
been in the securities industry for 12 years. He holds a BA from Washington
State University and an MBA from the University of Portland. Mr. Giboney is a
Chartered Financial Analyst and is a board member and past President of the
Portland Society of Financial Analysts. The Fund managers work together to bring
disciplined investment expertise to equity investing.
PERFORMANCE SUMMARY
The Stagecoach Equity Value Fund Class A shares posted a cumulative return of
10.16% for the six-month reporting period, excluding sales charges. This is
below the S&P 500 Index(3), a broad-based stock index used for comparison. The
S&P 500 Index returned 27.32% for the same period.
18
<PAGE>
INVESTMENT ADVISOR COMMENTARY Equity Value Fund
- ------------------------------------------------------------------------
The Fund is invested more conservatively relative to the Russell 1000 Value
Index(4), and focuses on mid-cap stocks. The primary source of return in the
Russell 1000 Value Index continues to originate from the largest capitalized and
most growth-oriented stocks. The Fund's value investment style also
underperformed against the S&P 500 Index due to similar reasons. In short,
stocks with smaller market capitalization have not fared well over several
quarters, which is why the Fund recently raised its average market
capitalization.
The Fund distributed $0.08 in dividend income for Class A shares over the
six-month period and $1.26 in capital gains were distributed from the Fund
during the reporting period. Keep in mind that past performance is no guarantee
of future returns.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 69
PORTFOLIO TURNOVER RATIO 36%
WEIGHTED MEDIAN MARKET CAP ($B) $19.8
</TABLE>
The utility sector, which represents several of the Fund's top holdings,
performed well in the fourth quarter of 1998 only to experience a decline in the
first quarter of 1999 and a negative return for the entire reporting period.
Rising interest rates played an important role in this development.
Nevertheless, Montana Power, an electric utility with a rapidly growing
fiber-optic business telecommunications unit, was an exceptional performer.
Although utility stocks hurt Fund performance over this reporting period, we
believe that several stocks within this sector are currently trading at
significant discounts to the market, including Ameritech, AT&T and GTE.
Therefore, we have repositioned Fund holdings to capitalize on these stocks in
coming quarters.
Stocks within the financial services sector also comprise key Fund holdings.
First Union is a relatively large holding of the Fund, which negatively impacted
Fund performance in the fourth quarter of 1998. We still believe the Company
will deliver strong performance in future quarters. While financial services
experienced difficulties late in 1998, we foresee a sustained turnaround in this
sector as international economic conditions continue to improve. In fact,
Providian Financial
Corpora-
19
<PAGE>
Equity Value Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
tion and Cigna, whose prices have rallied from their October lows, have both
been standout performers for the fund.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 25%
UTILITIES 13%
PETROLEUM 10%
INSURANCE COMPANIES 9%
MANUFACTURING - PROCESSING 6%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
AT & T 4.4%
IBM CORPORATION 3.5%
CIGNA CORPORATION 3.3%
MOBIL CORPORATION 3.2%
PROVIDIAN FINANCIAL CORPORATION 2.8%
HARTFORD FINANCIAL SERVICE GROUP 2.7%
BANK OF AMERICA CORPORATION 2.7%
GTE CORPORATION 2.6%
AMERITECH CORPORATION 2.4%
MCI WORLDCOM INCORPORATED 2.3%
</TABLE>
STRATEGIC OUTLOOK
We anticipate modest economic growth for the remainder of 1999, with some
predictable seasonal weakness in the second and third quarters, as has been the
case in each of the past three years. The outlook also is favorable for
accelerated growth in earnings per share as last year's interest rate cuts
continue to work through the economy. Moderate economic growth coupled with
growing earnings per share should allow value stocks to provide more robust
performance.
Strengthening economies throughout Asia and Latin America are also favorable
for value stocks. In periods of slow economic growth, earnings growth is scarce,
so growth-oriented companies tend to get high multiples on their earnings. Yet
as growth accelerates, paying high valuations for earnings makes less sense, and
value shares typically rally. That's why we believe that the Fund is positioned
to benefit from any rebound in value stock performance.
20
<PAGE>
INVESTMENT ADVISOR COMMENTARY Equity Value Fund
- ------------------------------------------------------------------------
While utility and financial stocks represent the main portfolio holdings, we
will continue to select high quality, undervalued stocks across various sectors,
including technology and defense stocks over the coming months.
As a caveat, we do expect to see continued high levels of volatility as large
numbers of momentum investors remain poised to move quickly into or out of the
market, based on short-term positive or negative news. The Fund managers may use
this volatility to purchase or sell shares opportunistically, with an eye toward
creating longer term value for Fund shareholders.
1 Performance shown for the Class A shares of the Stagecoach Equity Value Fund
for periods prior to September 6, 1996 reflects performance of the Investor
shares of the Pacifica Equity Value Fund, a predecessor portfolio with the
same investment objective and policies as the Stagecoach Equity Value Fund.
Performance shown or advertised for the Class B shares of the Stagecoach
Equity Value Fund for periods prior to September 6, 1996 reflects performance
of Investor shares of the predecessor portfolio, with expenses of the Investor
shares adjusted to reflect Class B sales charges and expenses. Performance
shown or advertised for Class C shares of the Stagecoach Equity Value Fund for
the periods prior to April 1, 1998 reflects performance of the Class B shares,
adjusted for Class C sales charges and expenses. Performance shown for the
Institutional Class shares of the Stagecoach Equity Value Fund for periods
prior to September 6, 1996 reflects the performance of the Institutional Class
shares of the predecessor portfolio.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for Class C
shares is 1.00%. Class B and C share performance including sales charge
assumes the sales charge for the corresponding time period. There are no sales
charges for the Institutional Class shares.
3 The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly
in an index.
4 The Russell 1000 Value Index contains those securities in the Russell 1000
Index with less than average growth orientation. Companies in the Russell 1000
Value Index generally have low price to book and price-earnings ratios, higher
dividend yields and lower forecasted growth values. You cannot invest directly
in an index.
21
<PAGE>
Growth Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
GROWTH FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (8/2/90)
<S> <C> <C> <C> <C>
CLASS A 29.88% 20.68% 21.32% 17.35%
CLASS B 29.48% 19.83% 20.59% 16.63%
INSTITUTIONAL CLASS 30.00% 20.78% 21.35% 17.37%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (8/2/90)
<S> <C> <C> <C> <C>
CLASS A 23.09% 14.37% 20.01% 16.63%
CLASS B 24.48% 14.83% 20.40% 16.63%
INSTITUTIONAL CLASS N/A N/A N/A N/A
</TABLE>
22
<PAGE>
INVESTMENT ADVISOR COMMENTARY Growth Fund
- ------------------------------------------------------------------------
GROWTH FUND
The Stagecoach Growth Fund ("the Fund") seeks to earn current income and
achieve long-term capital appreciation by investing primarily in common stocks
and preferred stocks, and debt securities that are convertible into common
stocks. The Fund maintains a large company emphasis and the majority of the
Fund's holdings consist of larger, established companies with market
capitalizations of more than $1 billion. These companies represent some of
America's best-known firms with long histories of increasing earnings.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Kelli Hill manages the Stagecoach Growth Fund. Ms. Hill has 15 years of
experience in the securities industry. Prior to joining Wells Fargo in 1987, Ms.
Hill was an institutional equity trader for E.F. Hutton. Ms. Hill holds a BA
from the University of Southern California and is a Chartered Financial Analyst
Level II candidate.
PERFORMANCE SUMMARY
The Stagecoach Growth Fund Class A shares posted a cumulative return of 29.88%
for the six-month reporting period, excluding sales charges. This is above the
S&P 500 Index,(3) which returned 27.32% for the same period. The Fund
distributed $0.01 in dividend income for Class A shares over the six-month
period and $3.28 in capital gains were distributed from the Fund during the
reporting period.
The Fund finished the six-month period strongly with solid returns in the
financial sector throughout the first quarter of 1999. The Fund had exposure
across many financial services, including money center banks, insurance
companies and mortgage companies. American International Group and Chase
Manhattan Bank were both top 10 holdings and contributed to the overall
per-
23
<PAGE>
Growth Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
formance of the Fund during the period. The technology sector also benefited the
Fund, but not without some continued volatility due to Y2K concerns.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 87
PORTFOLIO TURNOVER RATIO 17%
WEIGHTED MEDIAN MARKET CAP ($B) $68.9
</TABLE>
Much of what happens going forward this year will depend on the global
economy. Our lower-performing groups in the Fund during the six-month period
were all groups with significant global exposure such as chemicals, oil
producers, and services and packaged goods.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 12%
COMPUTER SYSTEMS 9%
UTILITIES 7%
PHARMACEUTICALS 7%
PETROLEUM 6%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
MICROSOFT CORPORATION 4.6%
GENERAL ELECTRIC COMPANY 3.8%
EMC CORPORATION 3.6%
CISCO SYSTEMS INCORPORATED 3.3%
AMERICAN INTERNATIONAL GROUP INCORPORATED 3.1%
WAL MART STORES INCORPORATED 3.0%
CHASE MANHATTAN CORPORATION 2.9%
PFIZER INCORPORATED 2.4%
MCI WORLDCOM INCORPORATED 2.1%
SBC COMMUNICATIONS 1.8%
</TABLE>
STRATEGIC OUTLOOK
Even with anticipated modest growth ahead, companies with a high degree of
certainty and visibility have the potential to do well this year. While gains in
a number of areas in the first quarter lead us to be somewhat
24
<PAGE>
INVESTMENT ADVISOR COMMENTARY Growth Fund
- ------------------------------------------------------------------------
cautious, today's environment gives us optimism that the remainder of 1999 has
the potential to be another good period for the market. As always, we will
continue to focus on the companies with accelerated earnings that we believe to
be consistent and stable.
1 Performance shown for the Class A shares of the Stagecoach Growth Fund for
periods prior to January 1, 1992, reflects performance of the shares of the
Select Stock Fund of Wells Fargo Investment Trust for Retirement Programs, a
predecessor portfolio with the same investment objective and policies as the
Stagecoach Growth Fund. Performance shown or advertised for the Class B shares
of the Stagecoach Growth Fund for the periods January 1, 1992 to January 1,
1995 reflects performance of the Class A shares of the Fund adjusted to
reflect Class B sales charges and expenses. Performance shown or advertised
for the Class B shares of the Stagecoach Growth Fund for periods prior to
January 1, 1992, reflects performance of the shares of the predecessor
portfolio, with expenses adjusted to reflect Class B sales charges and
expenses. Performance shown or advertised for Institutional Class shares of
the Stagecoach Growth Fund for the period prior to September 6, 1996 reflects
performance of the Class A shares (as described above) adjusted for
Institutional Class share expenses.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. Class B share performance including
sales charge assumes the Class B share sales charge for the corresponding time
period. There are no sales charges for the Institutional Class shares.
3 The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly
in an index.
25
<PAGE>
International Equity Fund PERFORMANCE AT A GLANCE
- ------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR (9/24/97)
<S> <C> <C> <C>
CLASS A 23.50% 4.62% 10.04%
CLASS B 23.12% 4.00% 9.34%
CLASS C 23.12% 4.00% 9.34%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR (9/24/97)
<S> <C> <C> <C>
CLASS A 17.00% (0.86%) 6.23%
CLASS B 18.12% (1.00%) 6.80%
CLASS C 22.12% 3.00% 9.34%
</TABLE>
26
<PAGE>
INVESTMENT ADVISOR COMMENTARY International Equity Fund
- ------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
The Stagecoach International Equity Fund ("the Fund") seeks to earn total
return, with an emphasis on capital appreciation, over the long-term by
investing in equity securities of non-U.S. companies. Stock selection for the
Fund is driven by company fundamentals, not country allocation. Target companies
generally have a history of effective management, prudent financial and
accounting policies, and an ability to capitalize on a changing business
environment.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Katherine Schapiro, CFA, and Stacey Ho, CFA, manage the International Equity
Fund. Ms. Schapiro has 18 years of investment experience, with extensive
international investment expertise. Ms. Schapiro is a graduate of Stanford
University, a Chartered Financial Analyst, and President of the Security
Analysts of San Francisco. Ms. Ho has 10 years of experience in the investments
industry and has dedicated her investment management career to international
money management. She received a BS degree from San Diego State University, an
MS from Stanford University, and an MBA from the University of California at Los
Angeles. Ms. Ho also is a Chartered Financial Analyst.
PERFORMANCE SUMMARY
The Stagecoach International Equity Fund Class A shares posted a 23.50%
cumulative return for the six-month reporting period that ended March 31, 1999,
excluding sales charges. This is above the benchmark for the Fund, the Morgan
Stanley Capital International Europe, Australasia and Far East Index(3) ("MSCI
EAFE Index"), which returned 22.51% for the same period, and the Lipper
International Fund Index,(4) which returned 16.98% over this time frame.
Over the six-month period, stock and sector selection had a positive impact on
returns. Strong gains from
27
<PAGE>
International Equity Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
European companies involved in wireless communications and electronics,
including top 10 holdings such as ST Microelectronics, Vodafone, Nokia, Philips
Electronics and ARM Holdings, helped boost the fund. In addition, the fund was a
beneficiary of good relative performance of holdings in difficult markets such
as Singapore, Hong Kong and Hungary. Other contributors to the Fund's strong
performance relative to its benchmark throughout the period included companies
involved in business services, consumer non-durables, healthcare and retail,
such as AXA, Amvescap, Honda Motor and Metro AG.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 74
PORTFOLIO TURNOVER 16%
WEIGHTED MEDIAN MARKET CAP ($B) $22.8
</TABLE>
After bottoming in the early weeks of October, global stock markets climbed
steadily for the remainder of 1998 following the second interest rate cut of the
year in the U.S. This interest rate reduction was matched by central banks
throughout Europe and Asia in a coordinated, and relatively successful, effort
to stabilize currencies and to prevent global recession. During the first
quarter of 1999, investors embraced slower economic growth forecasts for Europe
and took profits on stocks due to excessive valuations in the region. In Japan,
continued progress toward banking reform and increased monetary stimulus brought
hope that the country would stem its economic decline. The improved sentiment
toward Japan also helped to boost other markets in the region.
In the six-month period, Fund positions in several European stocks were
reduced due to concerns over earnings growth in 1999 and valuation
considerations. In early 1999, investments in Japanese companies were increased
from 10% to 15% of assets, the highest exposure to Japan since the Fund's launch
in September 1997. The allocation shift was reinforced late in the period when
several companies, including Sony, announced major restructuring plans to
consolidate businesses and increase returns on equity, a welcome move toward
28
<PAGE>
INVESTMENT ADVISOR COMMENTARY International Equity Fund
- ------------------------------------------------------------------------
improving shareholder value. Other stocks added to the Fund, and additions to
existing positions, were based primarily on sound growth prospects for
domestic-oriented companies with attractive price to earnings ratios.
TOP HOLDINGS BY COUNTRY (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
GREAT BRITAIN 17%
JAPAN 15%
FRANCE 13%
NETHERLANDS 9%
SWITZERLAND 6%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
ST MICROELECTRONICS NV 3.0%
VODAFONE GROUP PLC 2.8%
NOKIA CORP. ADR (FINLAND) 2.7%
AMVESCAP PLC 2.3%
AXA UAP 2.3%
UNILEVER NV 2.2%
SUEZ LYONNAISE DES EAUX 2.2%
ARM HOLDINGS PLC ADR (GREAT BRITAIN) 2.1%
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV ADR
(NETHERLANDS) 2.1%
NOVARTIS AG -- REGISTERED SHARES 2.0%
</TABLE>
STRATEGIC OUTLOOK
Although still overweighted in European holdings, we believe the shift in
allocations to Asia and Latin America will potentially have significant bearing
on the Fund's relative performance for the remainder of 1999. Progress on
economic reforms, corporate restructuring, improved transparency of reporting,
falling interest rates and relatively stable currencies all help to improve
investor confidence and reverse the "flight of capital" seen in 1997 and 1998.
The troubled economies of Asia aren't expected to recover quickly, so we
anticipate the shift toward Asian companies will proceed cautiously for the
Stagecoach International Equity Fund, along with profit-taking in
29
<PAGE>
International Equity Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
European holdings. As always, we will maintain our disciplined investment
strategy and continually assess the risks and rewards of the Fund's investments.
1 Performance shown for the Class C shares of the Stagecoach International
Equity Fund for periods prior to April 1, 1998, reflects performance of the
Class B shares, adjusted to reflect Class C sales charges and expenses.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
An investment in the Stagecoach International Equity Fund presents certain
additional risks that may not be present in a mutual fund that invests largely
in domestic stocks. For example, investments in foreign and emerging markets
present special risks including: currency fluctuation, the potential for
diplomatic and political instability and liquidity risks, foreign taxation and
differences in auditing and other financial standards.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for Class C
shares is 1.00%. Class B and Class C share performance with sales charge
assumes the sales charge for the corresponding time period.
3 The Morgan Stanley Capital International Europe, Australasia and Far East
Index is an unmanaged index comprised of common stocks sold on stock exchanges
and over-the-counter markets within the listed regions. The Index presented
here is not available directly for investment.
4 The Lipper International Fund Index is comprised of funds that invest their
assets in securities with primary trading markets outside of the United
States. You cannot invest directly in an index.
30
<PAGE>
PERFORMANCE AT A GLANCE Small Cap Fund
- ------------------------------------------------------------------------
SMALL CAP FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 3-YEAR (11/1/94)
<S> <C> <C> <C> <C>
CLASS A 21.03% (15.63%) 4.53% 20.73%
CLASS B 20.57% (16.20%) 3.87% 19.96%
CLASS C 20.58% (16.24%) 3.85% 19.95%
INSTITUTIONAL CLASS 21.39% (15.11%) 5.65% 21.73%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 3-YEAR (11/1/94)
<S> <C> <C> <C> <C>
CLASS A 14.67% (20.06%) 2.67% 19.27%
CLASS B 15.57% (20.07%) 2.94% 19.72%
CLASS C 19.58% (17.01%) 3.85% 19.95%
INSTITUTIONAL CLASS N/A N/A N/A N/A
</TABLE>
31
<PAGE>
Small Cap Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
SMALL CAP FUND
The Stagecoach Small Cap Fund ("the Fund") seeks above-average, long-term
capital appreciation in order to provide investors with a rate of total return
exceeding that of the Russell 2000 Index(3), before fees and expenses over a
time horizon of three to five years. The Fund invests in growth-oriented common
stocks with market capitalizations that fall within the range of the Russell
2000 Index at the time of acquisition. Due to their relatively small size, the
Fund's investments may offer substantial growth potential, but they also entail
greater risk than larger, more established companies.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Tom Zeifang and Kenneth Lee manage the Small Cap Fund. Mr. Zeifang joined
Wells Capital Management in 1995. Before that he spent three years as an analyst
at Fleet Investment Advisors and three years as an assistant portfolio manager
at Marine Midland Bank. Mr. Lee has seven years of experience in the securities
industry. He has been with Wells Capital Management for the last five years. He
graduated from the University of California at Davis with a double major in
Economics and Organizational Studies. Mr. Lee has expertise in the technology
and healthcare sectors. He also is a Certified Financial Analyst Level II
candidate. Mr. Zeifang and Mr. Lee are responsible for portfolio management and
fundamental security analysis on the small- and mid-cap growth equity team.
PERFORMANCE REVIEW
The Stagecoach Small Cap Fund Class A shares posted a cumulative return of
21.03% for the six-month reporting period, excluding sales charges,
outperforming the Russell 2000 Index, which returned 10.00% for the same period.
The Fund remained mostly sector-neutral later in the six-month period, being
underweighted in basic materials and materials processing. This positioning
helped reduce commodity risk and positively affected performance. During the
first quarter of 1999, the only sector of
32
<PAGE>
INVESTMENT ADVISOR COMMENTARY Small Cap Fund
- ------------------------------------------------------------------------
the Russell 2000 to generate a positive return was technology, which was largely
driven by internet-related issues.
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 120
PORTFOLIO TURNOVER RATIO 106%
WEIGHTED MEDIAN MARKET CAP ($B) $1.43
</TABLE>
While most small cap stocks continued to experience volatility during the
six-month period, certain stocks performed well, including technology stocks.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
INTERNET SOFTWARE AND NETWORK PRODUCTS 14%
FINANCE 11%
GENERAL BUSINESS 11%
RETAIL AND RELATED 10%
MEDICAL EQUIPMENT AND SUPPLIES 10%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
E*TRADE 2.2%
VERISIGN INCORPORATED 2.2%
AGOURON PHARMACEUTICALS INCORPORATED 1.9%
REGIS CORPORATION 1.8%
EXCITE INCORPORATED 1.6%
EMMIS BROADCASTING CORPORATION 1.6%
AMERISOURCE CORPORATION 1.6%
CMGI INCORPORATED 1.5%
NATIONAL DATA CORPORATION 1.3%
METRIS COMPANIES INCORPORATED 1.3%
</TABLE>
STRATEGIC OUTLOOK
In anticipation of continued market volatility, we will continue to maintain
our discipline of not over-exposing the Fund to any particular sector, and we
will continue to search for companies that can increase earnings independent of
the economic cycle.
While smaller companies are trading at very low valuations relative to large
companies, and have little overseas exposure and attractive earnings growth
prospects, there is no immediate catalyst for the sector. We will
33
<PAGE>
Small Cap Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
continue to favor technology, healthcare and consumer staples sectors. While we
believe that earnings growth will be good and valuations will be at record lows,
we are likely to continue to experience increased market volatility. Therefore,
we must also be conscious of the impact that international events may have on
our own economy.
1 Performance shown for the Class A shares of the Stagecoach Small Cap Fund for
periods prior to September 16, 1996, reflects performance of the shares of the
Small Capitalization Growth Fund for BRP Employment Retirement Plans (an
unregistered bank collective investment fund), a predecessor portfolio with
the same investment objective and policies as the Stagecoach Small Cap Fund.
Performance shown or advertised for the Class B, Class C and Institutional
Class shares of the Stagecoach Small Cap Fund for periods prior to September
16, 1996, reflects performance of shares of the predecessor portfolio, with
expenses adjusted to reflect Class B, Class C and Institutional Class shares,
respectively.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
There may be some additional risks associated with investments in smaller
and/or newer companies because their shares tend to be less liquid than
securities of larger companies. Further, shares of small and new companies are
generally more sensitive to purchase and sales transactions and changes in the
issuer's financial condition and, therefore, the prices of such stocks may be
more volatile than those of larger company stocks.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for Class C
shares is 1.00%. Class B and C share performance including sales charge
assumes the sales charge for the corresponding time period. There are no sales
charges for the Institutional Class shares.
3 The Russell 2000 Index is an unmanaged index of the 2,000 smallest stocks (by
market value) in the Russell 3000 Index. It currently represents 7% of the
U.S. equity market, while the Russell 3000 comprises approximately 98% of the
U.S. equity market.
34
<PAGE>
PERFORMANCE AT A GLANCE Strategic Growth Fund
- ------------------------------------------------------------------------
STRATEGIC GROWTH FUND
AVERAGE ANNUAL RETURNS (as of March 31, 1999)(1)
- ----------------------------------------------------------------
EXCLUDING SALES CHARGES
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (1/20/93)
<S> <C> <C> <C> <C>
CLASS A 24.19% (8.31%) 13.90% 15.85%
CLASS B 23.77% (8.98%) 13.09% 14.82%
CLASS C 23.73% (9.02%) 13.08% 14.81%
</TABLE>
INCLUDING SALES CHARGES(2)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
SIX-MONTH SINCE
PERIOD ENDED INCEPTION
3/31/99 1-YEAR 5-YEAR (1/20/93)
<S> <C> <C> <C> <C>
CLASS A 17.67% (13.13%) 12.67% 14.86%
CLASS B 18.77% (13.53%) 12.85% 14.82%
CLASS C 22.73% (9.93%) 13.08% 14.81%
</TABLE>
35
<PAGE>
Strategic Growth Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
STRATEGIC GROWTH FUND
The Stagecoach Strategic Growth Fund ("the Fund") seeks to provide investors
with an above average level of long-term capital appreciation. The Fund invests
in equity securities of companies expected to experience strong growth in
revenues, earnings and assets. Managed with a mid-cap emphasis, at least 65
percent of the Fund's assets will be invested in companies with market
capilatizations that fall between the range of $470 million and $11.3 billion at
the time the stock is bought.
As we reported earlier, we have changed the Fund's fiscal year-end to
September 30 from March 31. We made this change to improve our reporting
process. However, this change will not impact the performance or objective of
your investment.
Tom Zeifang and Chris Greene manage the Strategic Growth Fund. Mr. Zeifang
joined Wells Capital Management in 1995. Before that he spent three years as an
analyst at Fleet Investment Advisors and three years as an assistant portfolio
manager at Marine Midland Bank. Before joining Wells Capital Management in 1997,
Mr. Greene was an analyst for Hambrecht & Quist. He graduated with a BA degree
in Economics from Claremont McKenna College.
PERFORMANCE SUMMARY
The Stagecoach Strategic Growth Fund Class A shares posted a cumulative return
of 24.19% for the six-month reporting period, excluding sales charges. This is
below the S&P 500 Index(3) return of 27.32% for the same period.
An increased focus on high-quality, earnings-driven companies benefited the
Fund as the narrow leadership of the market increased the need for superior
bottoms-up stock picking. Similar to the Index, a small number of companies led
Fund performance. Large contributors include Charles Schwab, Yahoo!, Providian
and Ascend Communications. Large buys late in the six-month period included
Linear Technology, McKesson and Staples.
36
<PAGE>
INVESTMENT ADVISOR COMMENTARY Strategic Growth Fund
- ------------------------------------------------------------------------
PORTFOLIO REVIEW (as of March 31, 1999)
- --------------------------------------------------
<TABLE>
<S> <C>
NUMBER OF ISSUES 101
PORTFOLIO TURNOVER RATIO 191%
WEIGHTED MEDIAN MARKET CAP ($B) $6.7
</TABLE>
The Fund shifted assets as positions increasingly became weighted relative to
anticipated performance and volatility rather than performance alone. At March
31, 1999, high absolute growth was less important than consistent, visible
growth. For this reason, the Fund disproportionately overweighted the very best
companies in its available market cap range.
In the current environment where investors are looking for stability and
liquidity, small stocks do not offer the same type of flexibility as larger
stocks, and therefore did not perform as well in the current environment.
TOP FIVE EQUITY INDUSTRY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
FINANCE 16%
RETAIL AND RELATED 12%
COMPUTER SYSTEMS 11%
INTERNET SOFTWARE AND NETWORK PRODUCTS 9%
ELECTRONICS 8%
</TABLE>
TOP TEN EQUITY HOLDINGS (as of March 31, 1999)
- ---------------------------------------------------------
<TABLE>
<S> <C>
OFFICE DEPOT INCORPORATED 3.7%
CHARLES SCHWAB CORPORATION 3.2%
YAHOO! INCORPORATED 2.8%
MCKESSON HBOC INCORPORATED 2.2%
STAPLES INCORPORATED 2.1%
PROVIDIAN FINANCIAL CORPORATION 2.1%
VERISIGN INCORPORATED 2.0%
LINEAR TECHNOLOGY CORPORATION 1.9%
TJX COMPANIES INCORPORATED 1.9%
ASCEND COMMUNICATIONS 1.9%
</TABLE>
STRATEGIC OUTLOOK
The stock market's strength continues to be concentrated in large-cap growth
stocks, resulting in an even greater disparity between their performance and
that of the rest of the market. The focus away from small cap stocks has
contributed to the Fund's underperformance; however, we feel the current
interest rate environment is
37
<PAGE>
Strategic Growth Fund INVESTMENT ADVISOR COMMENTARY
- ------------------------------------------------------------------------
good for all companies, not just large corporations. We believe the fundamentals
continue to look good, and we see opportunity in the current environment.
It may be difficult to completely avoid international exposure in today's
global marketplace, however we will attempt to avoid companies with exposure to
foreign economies. Although the Asian economy is showing signs of improvement,
we've increased our focus on domestic companies in the healthcare, information
technology, and telecommunications sectors and will continue to do so until
foreign markets stabilize further. We also will continue to look for companies
with a solid earnings outlook.
1 Performance shown for the Class A shares of the Stagecoach Strategic Growth
Fund reflects performance of the Class A shares of the Overland Express
Strategic Growth Fund (the accounting survivor of a merger of the Funds on
December 12, 1997). Performance shown or advertised for the Class B shares of
the Stagecoach Fund reflects performance of the Class D shares of the Overland
Fund. For periods prior to July 1, 1993, Class B share performance of the
Stagecoach Fund reflects performance of the Class A shares of the Overland
Fund adjusted to reflect sales charges and expenses of the Class B shares.
Performance shown or advertised for the Class C shares of the Stagecoach Fund
for the period from July 1, 1993, to December 12, 1997, reflects performance
of the Class D shares of the Overland Fund; for periods prior to July 1, 1993,
Class C share performance of the Stagecoach Fund reflects performance of the
Class A shares of the Overland Fund adjusted to reflect the sales charges and
expenses of the Class C shares.
Investment return and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Figures quoted represent past performance, which is no
guarantee of future results.
There may be some additional risks associated with investments in smaller
and/or newer companies because their shares tend to be less liquid than
securities of larger companies. Further, shares of small and new companies are
generally more sensitive to purchase and sales transactions and changes in the
issuer's financial condition and, therefore, the prices of such stocks may be
more volatile than those of larger company stocks.
The Fund's manager has voluntarily waived all or a portion of its management
fees or assumed responsibility for other expenses, which reduces operating
expenses and increases total return to shareholders. Without these reductions
the Fund's returns would have been lower. There is no guarantee such
reductions will continue.
2 For Class A shares, the maximum front-end sales charge is 5.25%. The maximum
sales charge for Class B shares is 5.00%. The maximum sales charge for Class C
shares is 1.00%. Class B and Class C share performance with sales charge
assumes the sales charge for the corresponding time period.
3 The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
The Fund is a professionally managed mutual fund. You cannot invest directly
in an index.
38
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 58.87%
AEROSPACE - 1.37%
9,375 Lockheed Martin Corporation $ 347,438 $ 353,320
12,000 Raytheon Company Class B 662,970 703,500
------------ --------------
$ 1,010,408 $ 1,056,820
AUTOMOBILE & RELATED - 2.30%
4,009 Daimler-Chrysler AG+ $ 212,606 $ 344,022
8,000 Dana Corporation 349,783 304,000
25,800 Delphi Automotive Systems Corporation+ 452,136 457,950
4,600 Eaton Corporation 416,855 328,900
6,000 Ford Motor Company 120,918 340,500
------------ --------------
$ 1,552,298 $ 1,775,372
CAPITAL GOODS - 3.08%
5,700 General Electric Company $ 109,127 $ 630,563
15,000 Harris Corporation 469,954 429,375
12,000 U.S. Filter Corp+ 307,764 367,500
21,375 Waste Management Incorporated 777,871 948,516
------------ --------------
$ 1,664,716 $ 2,375,954
COMPUTER SYSTEMS - 3.47%
13,250 Apple Computer Incorporated+ $ 465,728 $ 476,172
11,300 International Business Machines Corporation 598,420 2,002,925
6,700 Seagate Technology Incorporated+ 147,916 198,069
------------ --------------
$ 1,212,064 $ 2,677,166
CONSUMER-DISCRETIONARY - 0.57%
7,600 DuPont (E.I.) de Nemours and Company $ 576,791 $ 441,275
ELECTRONICS - 0.78%
7,325 Koninklijke Royal Philips Electronics N.V. ADR $ 546,564 $ 603,855
</TABLE>
39
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY & RELATED - 5.62%
6,100 Atlantic Richfield Corporation $ 360,295 $ 445,300
9,400 Columbia Energy Group 467,039 491,150
20,500 Mobil Corporation 1,343,163 1,804,000
8,900 Phillips Petroleum Company 421,232 420,525
10,000 Texaco Incorporated 407,520 567,500
8,950 Transocean Offshore Incorporated 229,881 257,872
12,500 USX - Marathon Group 380,801 343,750
------------ --------------
$ 3,609,931 $ 4,330,097
ENTERTAINMENT & LEISURE - 0.63%
22,700 Mirage Resorts Incorporated+ $ 388,238 $ 482,375
FINANCE & RELATED - 17.07%
15,552 Banc One Corporation $ 860,531 $ 856,332
17,050 Bank of America Corporation 1,003,270 1,204,156
8,100 Bankers Trust NY Corporation 693,440 714,825
16,400 Chase Manhattan Corporation 284,398 1,333,525
18,000 Citigroup Incorporated 746,291 1,149,750
15,650 First Union Corporation 953,199 836,297
62,000 Fremont General Corporation 682,942 1,181,875
6,000 Morgan Stanley Dean Witter & Company 486,009 599,625
55,500 North Fork Bancorporation 1,083,766 1,172,438
27,300 Prison Realty Corporation 638,313 476,044
14,200 Providian Financial Corporation 97,744 1,562,000
19,100 SLM Holding Corporation 867,385 797,425
9,700 Union BanCal Corporation 291,000 330,406
23,100 Washington Mutual Incorporated 1,053,504 944,213
------------ --------------
$ 9,741,792 $ 13,158,911
FOOD & RELATED - 1.72%
18,425 American Stores Company $ 385,749 $ 608,025
80,000 Food Lion Incorporated Class B 767,182 720,000
------------ --------------
$ 1,152,931 $ 1,328,025
</TABLE>
40
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
GENERAL BUSINESS & RELATED - 0.39%
15,900 Allegheny Teledyne Incorporated $ 401,925 $ 301,105
HEALTHCARE - 0.38%
24,200 Foundation Health Systems Incorporated+ $ 221,705 $ 294,938
INSURANCE COMPANIES - 5.18%
13,500 American Bankers Insurance Group $ 149,344 $ 702,000
5,800 American International Group Incorporated 639,538 699,625
16,500 CIGNA Corporation 1,036,732 1,382,905
21,200 Hartford Financial Services Group 954,952 1,204,425
------------ --------------
$ 2,780,566 $ 3,988,955
MANUFACTURING PROCESSING - 2.56%
9,350 Honeywell Incorporated $ 680,332 $ 708,847
9,000 Montana Power Company 333,516 662,063
21,350 Sherwin Williams Company 530,967 600,469
------------ --------------
$ 1,544,815 $ 1,971,379
PHARMACEUTICALS - 1.22%
15,000 Pharmacia and Upjohn Incorporated $ 397,019 $ 935,625
RETAIL & RELATED - 2.28%
15,000 Costco Companies Incorporated+ $ 235,935 $ 1,373,438
15,175 Rite Aid Corporation 387,873 379,375
------------ --------------
$ 623,808 $ 1,752,813
TELECOMMUNICATIONS - 2.97%
20,525 GTE Corporation $ 678,948 $ 1,241,763
11,800 MCI Worldcom Incorporated+ 940,537 1,045,038
------------ --------------
$ 1,619,485 $ 2,286,801
TRANSPORTATION - 0.29%
4,000 Canadian National Railway Company $ 226,993 $ 222,500
</TABLE>
41
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES - 6.99%
23,289 American Telephone & Telegraph Corporation $ 1,803,814 $ 1,858,753
17,950 Ameritech Corporation 880,120 1,038,855
6,375 Bell Atlantic Corporation 315,724 329,508
18,775 Northern States Power Company 508,790 435,345
25,950 PacifiCorp 458,926 447,638
6,500 SBC Communications Incorporated 332,607 306,313
15,000 Texas Utilities Company 659,591 625,313
6,275 U.S. West Incorporated 348,849 345,517
------------ --------------
$ 5,308,421 $ 5,387,242
TOTAL COMMON STOCKS $ 34,580,470 $ 45,371,208
</TABLE>
42
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES - 17.04%
BANK & FINANCE - 3.27%
$ 1,500,000 American Telephone & Telegraph Capital
Corporation 6.60 % 05/15/05 $ 1,518,750
1,000,000 Midamerican Funding LLC 6.34 03/01/09 997,500
--------------
$ 2,516,250
INDUSTRIALS - 11.13%
$ 1,000,000 Chrysler Corporation 7.40 % 8/1/2097 $ 1,052,890
1,000,000 EOP Operating LP 6.80 01/15/09 997,500
1,000,000 News America Incorporated 6.70 05/21/04 1,028,750
1,000,000 Noram Energy Corporation 6.50 02/01/08 996,250
1,500,000 Pepsi Bottling Group 7.00 03/01/29 1,501,875
1,000,000 Petroleum Geo Service 7.13 03/30/28 937,500
1,000,000 Raytheon Company 7.20 08/15/27 1,037,500
1,000,000 RJR Nabisco Incorporated 8.25 07/01/04 1,025,000
--------------
$ 8,577,265
MISCELLANEOUS BONDS - 2.64%
$ 1,000,000 Associates Corporation of America 6.32 % 02/28/00 $ 1,010,470
1,000,000 General Motors Acceptance Corporation 6.88 07/15/01 1,026,250
--------------
$ 2,036,720
TOTAL CORPORATE BONDS & NOTES $ 13,130,235
(Cost $12,891,700)
U.S. GOVERNMENT AGENCY SECURITIES - 8.89%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.45%
$ 29,792 FHLMC #220009 8.25 % 08/01/01 $ 30,444
151,911 FHLMC #291786 8.50 01/01/09 157,966
56,397 FHLMC #303407 8.50 12/01/02 57,690
93,773 FHLMC #546103 10.50 08/01/19 101,240
--------------
$ 347,340
</TABLE>
43
<PAGE>
Balanced Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.44%
$ 1,000,000 FNMA 4.63 % 10/15/01 $ 984,840
298,025 FNMA #190526 6.00 01/01/01 298,660
341,465 FNMA #190588 6.50 01/01/09 345,037
2,686,721 FNMA #407932 7.00 12/01/27 2,724,765
2,009,176 FNMA #442618 6.00 10/01/28 1,953,160
128,757 FNMA #57843 8.00 06/01/08 132,530
7,305 FNMA #75336 9.50 02/01/09 7,710
58,255 FNMA #83785 8.00 08/01/18 60,355
--------------
$ 6,507,057
TOTAL U.S. GOVERNMENT AGENCY SECURITIES $ 6,854,397
(Cost $6,838,869)
U.S. TREASURY SECURITIES - 13.40%
U.S. TREASURY BONDS - 7.97%
$ 1,000,000 U.S. Treasury Bonds 5.25 % 11/15/28 $ 932,660
1,500,000 U.S. Treasury Bonds 5.25 02/15/29 1,417,965
2,000,000 U.S. Treasury Bonds 5.63 02/15/06 2,028,440
500,000 U.S. Treasury Bonds 6.00 02/15/26 508,205
1,000,000 U.S. Treasury Bonds 8.13 08/15/19 1,259,220
--------------
$ 6,146,490
U.S. TREASURY NOTES - 5.43%
$ 1,000,000 U.S. Treasury Notes 5.75 % 08/15/03 $ 1,020,310
500,000 U.S. Treasury Notes 6.25 02/15/03 518,125
1,000,000 U.S. Treasury Notes 6.50 08/15/05 1,060,310
1,000,000 U.S. Treasury Notes 6.63 06/30/01 1,032,810
500,000 U.S. Treasury Notes 7.50 02/15/05 554,295
--------------
$ 4,185,850
TOTAL U.S. TREASURY SECURITIES $ 10,332,340
(Cost $10,341,955)
</TABLE>
44
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Balanced Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY INTEREST MATURITY
PRINCIPAL NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.94%
MONEY MARKET FUNDS - 0.94%
$ 728,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 728,000
(Cost $728,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $65,380,994)* (Notes 1 and 3) 99.14% $ 76,416,180
Other Assets and Liabilities, Net 0.86 659,932
------ --------------
TOTAL NET ASSETS 100.00% $ 77,076,112
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 12,418,206
Gross Unrealized Depreciation (1,383,020)
--------------
NET UNREALIZED APPRECIATION $ 11,035,186
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
PORTFOLIO OF INVESTMENTS -
Diversified Equity Income Fund MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 90.20%
AUTOMOBILE & RELATED - 6.12%
115,000 Dana Corporation $ 3,848,281 $ 4,370,000
122,100 Delphi Automotive Systems Corporation+ 2,075,700 2,167,275
40,000 Eaton Corporation 3,229,114 2,860,000
60,000 Ford Motor Company 1,263,237 3,405,000
------------ --------------
$ 10,416,332 $ 12,802,275
CAPITAL GOODS - 4.19%
25,000 General Electric Company $ 808,718 $ 2,765,625
50,000 Raytheon Company Class A 2,741,048 2,887,500
98,000 USEC Incorporated 1,396,500 1,335,250
40,000 Waste Management Incorporated 1,283,572 1,775,000
------------ --------------
$ 6,229,838 $ 8,763,375
COMPUTER SYSTEMS - 1.69%
20,000 International Business Machines Corporation $ 3,431,830 $ 3,545,000
CONSUMER-DISCRETIONARY - 2.22%
80,000 DuPont (E.I.) de Nemours and Company $ 4,539,507 $ 4,645,000
ELECTRONICS - 3.64%
55,000 Harris Corporation $ 2,123,446 $ 1,574,375
46,000 Koninklijke Royal Philips Electronics N.V. ADR 2,553,342 3,792,125
60,000 Thomas & Betts Corporation 2,603,239 2,253,750
------------ --------------
$ 7,280,027 $ 7,620,250
ENERGY & RELATED - 8.80%
42,000 Atlantic Richfield Corporation $ 2,843,848 $ 3,066,000
154,400 Conoco Incorporated 3,507,100 3,792,450
46,000 Royal Dutch Petroleum Company ADR 1,158,636 2,392,000
65,000 Texaco Incorporated 3,529,184 3,688,750
142,000 USX - Marathon Group 4,602,065 3,905,000
40,000 Williams Companies Incorporated 930,509 1,580,000
------------ --------------
$ 16,571,342 $ 18,424,200
</TABLE>
46
<PAGE>
PORTFOLIO OF INVESTMENTS -
MARCH 31, 1999 (UNAUDITED) Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCE & RELATED - 19.81%
95,000 Banc One Corporation $ 4,397,375 $ 5,230,937
57,000 Bank of America Corporation 3,325,829 4,025,625
70,000 Chase Manhattan Corporation 3,301,025 5,691,875
25,000 Citigroup Incorporated 1,507,350 1,596,875
300,000 Fremont General Corporation 4,500,660 5,718,750
180,000 Household International Incorporated 4,271,261 8,212,500
110,000 SLM Holding Corporation 4,299,851 4,592,500
43,500 Union BanCal Corporation 1,305,000 1,481,718
120,000 Washington Mutual Incorporated 4,983,672 4,905,000
------------ --------------
$ 31,892,023 $ 41,455,780
FOOD & RELATED - 3.11%
80,000 American Stores Company $ 1,954,410 $ 2,640,000
110,000 Philip Morris Companies Incorporated 3,658,175 3,870,625
------------ --------------
$ 5,612,585 $ 6,510,625
GENERAL BUSINESS & RELATED - 2.03%
225,000 Allegheny Teledyne Incorporated $ 5,576,353 $ 4,260,938
HEALTHCARE - 2.03%
65,000 American Home Products Corporation $ 1,468,217 $ 4,241,250
INSURANCE COMPANIES - 4.03%
60,000 CIGNA Corporation $ 3,457,678 $ 5,028,750
60,000 Hartford Financial Services Group 2,704,319 3,408,750
------------ --------------
$ 6,161,997 $ 8,437,500
MANUFACTURING PROCESSING - 6.75%
100,000 El Paso Energy Corporation $ 1,828,278 $ 3,268,750
30,000 Honeywell Incorporated 2,165,832 2,274,375
100,000 Kimberly-Clark Corporation 4,645,439 4,793,750
135,000 Sherwin Williams Company 3,062,823 3,796,875
------------ --------------
$ 11,702,372 $ 14,133,750
</TABLE>
47
<PAGE>
PORTFOLIO OF INVESTMENTS -
Diversified Equity Income Fund MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MEDICAL EQUIPMENT & SUPPLIES - 1.20%
38,000 Baxter International Incorporated $ 1,517,395 $ 2,508,000
REAL ESTATE INVESTMENT TRUSTS - 8.93%
40,000 Archstone Communities Trust $ 807,742 $ 805,000
50,000 Arden Realty Group Incorporated 1,146,000 1,112,500
65,000 Charles E. Smith Residential Realty Incorporated 1,741,052 2,002,813
110,000 Duke Realty Investments Incorporated 2,459,100 2,365,000
40,000 Equity Residential Properties Trust 1,634,330 1,650,000
40,000 Felcor Lodging Trust Incorporated 953,228 927,500
73,000 Highwoods Properties Incorporated 2,354,937 1,720,063
85,000 Indymac Mortgage Holdings Incorporated 1,709,847 924,375
100,000 Kilroy Realty Corporation 2,326,418 2,050,000
50,000 Post Properties Incorporated 1,782,083 1,800,000
60,000 Prologis Trust 1,102,260 1,230,000
60,000 Spieker Properties Incorporated 1,869,733 2,115,000
------------ --------------
$ 19,886,730 $ 18,702,251
RETAIL & RELATED - 1.66%
70,000 Consolidated Stores Corporation+ $ 1,483,449 $ 2,121,875
30,000 Sears Roebuck & Company 1,503,675 1,355,625
------------ --------------
$ 2,987,124 $ 3,477,500
TELECOMMUNICATIONS - 2.17%
75,000 GTE Corporation $ 4,370,423 $ 4,537,500
UTILITIES - 11.82%
105,000 Alltel Corporation $ 3,128,474 $ 6,549,375
50,000 American Telephone & Telegraph Corporation 3,578,937 3,990,625
97,000 Duke Energy Corporation 4,395,371 5,298,625
85,000 New Century Energies Incorporated 3,973,929 2,895,313
</TABLE>
48
<PAGE>
PORTFOLIO OF INVESTMENTS -
MARCH 31, 1999 (UNAUDITED) Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
150,000 Southern Company $ 3,337,850 $ 3,496,875
60,000 Texas Utilities Company 2,437,618 2,501,250
------------ --------------
$ 20,852,179 $ 24,732,063
TOTAL COMMON STOCKS $160,496,274 $ 188,797,257
(Cost $160,496,274)
PREFERRED STOCKS - 2.00%
CONVERTIBLES - 2.00%
33,700 Texas Utilities Company $ 1,685,000 $ 1,796,630
47,700 Union Pacific Capital Trust 2,385,000 2,385,000
------------ --------------
TOTAL PREFERRED STOCKS $ 4,070,000 $ 4,181,630
</TABLE>
49
<PAGE>
PORTFOLIO OF INVESTMENTS -
Diversified Equity Income Fund MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS & NOTES - 2.68%
BANK & FINANCE - 0.96%
$ 500,000 Citigroup Holdings Incorporated 6.38 % 10/01/02 $ 508,125
500,000 Ford Motor Credit Note 6.50 02/28/02 510,000
500,000 Household Netherlands 6.20 12/01/03 501,250
500,000 Mellon Financial Company 5.75 11/15/03 493,750
--------------
$ 2,013,125
INDUSTRIALS - 0.48%
$ 500,000 News America Incorporated 6.70 % 05/21/04 $ 514,375
500,000 Occidental Petroleum Corporation 6.40 04/01/13 485,625
--------------
$ 1,000,000
MISCELLANEOUS BONDS - 0.24%
$ 500,000 EOP Operating Limited Partner 6.50 % 06/15/04 $ 496,250
RETAIL & RELATED - 0.75%
$ 500,000 Federated Department 8.13 % 10/15/02 $ 532,500
1,000,000 Rite Aid Corporation 5.25 09/15/02 1,041,250
--------------
$ 1,573,750
TRANSPORTATION - 0.25%
$ 500,000 Union Pacific Company 7.25 % 11/01/08 $ 523,750
--------------
TOTAL CORPORATE BONDS & NOTES $ 5,606,875
(Cost $5,810,926)
U.S. TREASURY SECURITIES - 3.62%
U.S. TREASURY NOTES - 3.62%
$ 4,400,000 U.S. Treasury Notes 5.75 % 04/30/03 $ 4,485,932
3,000,000 U.S. Treasury Notes 6.50 08/31/01 3,095,610
--------------
TOTAL U.S. TREASURY SECURITIES $ 7,581,542
(Cost $7,567,571)
</TABLE>
50
<PAGE>
PORTFOLIO OF INVESTMENTS -
MARCH 31, 1999 (UNAUDITED) Diversified Equity Income Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
U.S. TREASURY SECURITIES (CONTINUED)
REPURCHASE AGREEMENTS - 1.04%
$ 2,018,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 2,018,000
153,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 153,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 2,171,000
(Cost $2,171,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $180,115,771)* (Notes 1 and 3) 99.54% $ 208,338,304
Other Assets and Liabilities, Net 0.46 960,727
------ --------------
TOTAL NET ASSETS 100.00% $ 209,299,031
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 35,901,016
Gross Unrealized Depreciation (7,678,483)
--------------
NET UNREALIZED APPRECIATION $ 28,222,533
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 99.00%
ADVERTISING - 0.23%
8,740 Interpublic Group Companies Incorporated $ 232,516 $ 680,628
10,608 Omnicom Group 417,196 847,977
------------ --------------
$ 649,712 $ 1,528,605
AEROSPACE - 1.22%
35,232 Allied Signal Incorporated $ 433,668 $ 1,732,974
60,746 Boeing Company 945,894 2,072,957
24,722 Lockheed Martin Corporation 450,197 931,710
4,331 Northrop Grumman Corporation+ 226,048 259,319
21,201 Raytheon Company Class B 679,559 1,242,909
14,205 United Technologies Corporation 397,834 1,923,890
------------ --------------
$ 3,133,200 $ 8,163,759
AUTOMOBILE & RELATED - 1.47%
9,650 AutoZone Incorporated+ $ 263,253 $ 293,119
10,434 Dana Corporation 220,091 396,492
4,496 Eaton Corporation 159,941 321,464
75,998 Ford Motor Company 1,203,899 4,312,887
41,160 General Motors Corporation 1,637,172 3,575,775
11,337 Genuine Parts Company 206,404 326,647
4,258 Navistar International Corporation+ 104,785 171,118
3,349 Pep Boys-Manny Moe & Jack 59,882 51,072
7,548 TRW Incorporated 199,912 343,434
------------ --------------
$ 4,055,339 $ 9,792,008
BEVERAGE, BREWING AND DISTRIBUTION - 2.44%
2,323 Adolph Coors Company Class B $ 47,439 $ 125,442
30,062 Anheuser-Busch Incorporated 598,828 2,290,349
154,915 Coca-Cola Company 1,790,727 9,507,908
24,657 Coca-Cola Enterprises Incorporated 719,922 745,874
92,175 Pepsico Incorporated 953,266 3,612,108
------------ --------------
$ 4,110,182 $ 16,281,681
</TABLE>
52
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
CAPITAL GOODS - 5.70%
23,248 Applied Materials Incorporated+ $ 327,667 $ 1,434,110
5,540 Black & Decker Corporation 125,603 307,124
1,480 Briggs & Stratton Corporation 29,106 72,983
10,980 Browning-Ferris Industries Incorporated 304,225 423,415
4,586 Case Corporation 203,141 116,370
22,565 Caterpillar Incorporated 311,532 1,036,580
6,537 Cooper Industries Incorporated 258,372 278,640
15,030 Deere & Company 254,324 580,534
14,060 Dover Corporation 124,856 462,223
2,844 EG & G Incorporated 54,345 75,010
4,780 Fluor Corporation 133,843 129,060
2,560 Foster Wheeler Corporation 60,376 31,040
10,517 Freeport McMoran Copper & Gold Incorporated Class B 289,505 114,372
7,986 General Dynamics Corporation 92,961 513,100
205,856 General Electric Company 3,514,236 22,772,820
3,066 Harnischfeger Industries Incorporated 77,560 17,438
15,750 Illinois Tool Works Incorporated 225,407 974,530
10,361 Ingersoll-Rand Company 150,752 514,165
5,351 Johnson Controls Incorporated 92,171 333,769
25,246 Minnesota Mining & Manufacturing Company 941,844 1,786,155
7,820 Pall Corporation 100,992 129,519
6,877 Parker Hannifin Corporation 100,009 235,537
10,305 Paychex Incorporated 531,007 488,843
3,135 Perkin-Elmer Corporation 125,047 304,290
17,150 Pitney Bowes Incorporated 221,699 1,093,313
4,984 Raychem Corporation 107,064 112,452
12,048 Rockwell International Corporation 223,092 511,287
5,262 Sealed Air Corporation+ 288,339 258,825
11,828 Silicon Graphics Incorporated+ 376,670 197,380
3,729 Snap-On Incorporated 84,814 108,141
21,154 Southwest Airlines Company 270,458 639,909
3,925 Timken Company 58,482 63,781
3,638 Tupperware Corporation 59,496 65,484
</TABLE>
53
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
5,995 W W Grainger Incorporated $ 108,737 $ 258,160
37,031 Waste Management Incorporated 1,699,050 1,643,250
------------ --------------
$ 11,926,782 $ 38,083,609
COMPUTER SOFTWARE - 4.88%
4,147 Adobe Systems Incorporated $ 192,270 $ 235,342
3,023 Autodesk Incorporated 63,246 122,243
13,581 BMC Software Incorporated+ 812,683 503,345
21,886 Compuware Corporation+ 850,922 522,528
316,994 Microsoft Corporation+ 3,222,715 28,410,587
91,584 Oracle Systems Corporation+ 298,272 2,415,528
17,164 Parametric Technology Corporation+ 354,880 338,989
------------ --------------
$ 5,794,988 $ 32,548,562
COMPUTER SYSTEMS - 7.49%
8,486 Apple Computer Incorporated+ $ 322,082 $ 304,965
9,008 Ceridian Corporation 143,318 329,355
106,811 Compaq Computer Corporation 840,840 3,384,574
9,984 Computer Sciences Corporation+ 188,498 550,992
3,156 Data General Corporation+ 72,356 31,955
160,068 Dell Computer Corporation+ 371,678 6,542,780
31,562 EMC Corporation+ 362,533 4,032,045
9,847 Gateway 2000 Incorporated+ 571,201 675,135
64,723 Hewlett Packard Company 1,133,241 4,389,028
104,726 Intel Corporation 1,057,063 12,475,485
58,373 International Business Machines Corporation 3,563,485 10,346,614
14,683 Peoplesoft Incorporated+ 477,198 214,739
15,451 Seagate Technology Incorporated+ 444,451 456,770
23,937 Sun Microsystems Incorporated+ 194,037 2,990,629
6,226 Tandy Corporation 128,830 397,297
24,524 Texas Instruments Incorporated 367,459 2,434,007
16,081 Unisys Corporation+ 381,197 445,243
------------ --------------
$ 10,619,467 $ 50,001,613
</TABLE>
54
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER - BASIC - 3.66%
4,150 Allergan Incorporated $ 109,900 $ 364,680
5,971 Alza Corporation+ 176,029 228,390
3,550 Bausch & Lomb Incorporated 107,710 230,750
7,366 Clorox Company 232,684 863,203
18,418 Colgate-Palmolive Company 355,738 1,694,455
30,783 ConAgra Incorporated 350,036 786,890
14,538 Corning Incorporated 299,066 872,280
24,532 CVS Corporation 532,746 1,165,270
84,458 Johnson & Johnson 1,515,502 7,912,659
2,767 Millipore Corporation 52,126 66,754
15,226 Pioneer Hi Bred International Incorporated 269,979 572,878
83,339 Procter & Gamble Company 1,442,490 8,162,013
19,672 Ralston-Purina Group 247,479 524,997
11,722 UST Incorporated 182,695 306,237
7,321 Wm. Wrigley Jr Company 121,415 662,093
------------ --------------
$ 5,995,595 $ 24,413,549
CONSUMER-DISCRETIONARY - 3.53%
3,466 Alberto-Culver Company Class B $ 31,879 $ 81,018
11,467 AMR Corporation+ 391,495 671,535
16,521 Avon Products Incorporated 164,688 777,520
4,330 Brown-Forman Corporation Class B 95,439 249,515
6,097 Brunswick Corporation 111,578 116,224
53,674 Cendant Corporation+ 1,291,670 845,365
4,770 Cooper Tire & Rubber Company 62,765 87,649
2,484 Cummins Engine Company Incorporated 85,327 88,337
8,997 Delta Air Lines Incorporated 316,498 625,292
70,707 DuPont (E.I.) de Nemours and Company 1,567,621 4,105,425
20,379 Eastman Kodak Company 813,100 1,301,709
27,849 First Data Corporation 813,274 1,190,545
4,560 Fruit Of The Loom - Limited+ 124,660 47,310
69,665 Gillette Company 1,063,494 4,140,713
9,823 Goodyear Tire & Rubber Company 280,787 489,308
4,480 Harcourt General Incorporated 108,113 198,520
</TABLE>
55
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
12,354 Hasbro Incorporated $ 113,322 $ 357,494
6,680 International Flavors & Fragrances Incorporated 148,236 250,918
18,130 Mattel Incorporated 216,664 450,984
5,669 Maytag Corporation 121,524 342,265
17,721 Newell Rubbermaid Incorporated 356,340 841,748
18,036 Nike Incorporated Class B 159,011 1,040,452
4,945 PACCAR Incorporated 83,316 203,672
2,757 Polaroid Corporation 95,852 55,312
3,600 Reebok International Limited+ 82,010 57,150
2,307 Russell Corporation 49,736 46,428
24,798 Seagram Company Limited 576,731 1,239,900
16,247 Service Corporation International 209,901 231,520
1,137 Springs Industries Incorporated Class A 39,683 30,770
16,438 Toys 'R' Us Incorporated+ 383,801 309,240
5,502 US Air Group Incorporated+ 209,657 268,565
7,553 V.F. Corporation 155,013 356,407
4,803 Whirlpool Corporation 193,851 261,163
41,244 Xerox Corporation 531,781 2,201,399
------------ --------------
$ 11,048,817 $ 23,561,372
ELECTRONICS - 0.91%
9,142 Advanced Micro Devices+ $ 190,453 $ 141,700
13,783 AMP Incorporated 385,020 739,975
5,051 Harris Corporation 95,792 144,585
5,502 KLA-Tencor Corporation+ 412,845 267,190
8,917 LSI Logic Corporation+ 322,859 278,099
15,011 Micron Technology Incorporated+ 371,553 724,280
37,748 Motorola Incorporated 860,058 2,765,040
10,492 National Semiconductor Corporation+ 172,203 97,707
15,226 Solectron Corporation+ 711,278 739,413
3,008 Tektronix Incorporated 62,404 75,952
3,601 Thomas & Betts Corporation 117,428 135,263
------------ --------------
$ 3,701,893 $ 6,109,204
</TABLE>
56
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY & RELATED - 6.26%
5,689 Amerada Hess Corporation $ 226,635 $ 286,228
7,597 Anadarko Petroleum Corporation 256,478 286,787
6,204 Apache Corporation 222,906 161,692
4,829 Ashland Incorporated 181,393 197,687
20,208 Atlantic Richfield Corporation 925,654 1,475,184
20,598 Baker Hughes Incorporated 348,703 500,789
11,172 Burlington Resources Incorporated 455,188 446,182
41,032 Chevron Corporation 1,327,808 3,628,768
13,404 Coastal Corporation 165,036 442,332
5,252 Columbia Energy Group 145,045 274,417
6,035 Consolidated Natural Gas Company 241,075 293,829
1,364 Eastern Enterprises 37,920 49,615
4,999 Eastman Chemical Company 208,228 210,270
20,807 Enron Corporation 505,951 1,336,850
152,787 Exxon Corporation 3,778,420 10,781,033
27,593 Halliburton Company 505,580 1,062,330
3,200 Helmerich & Payne Incorporated 41,221 72,600
5,434 Kerr McGee Corporation 291,717 178,303
49,042 Mobil Corporation 1,368,028 4,315,696
21,806 Occidental Petroleum Corporation 599,495 392,508
16,011 Phillips Petroleum Company 324,202 756,520
9,942 Praxair Incorporated 178,367 358,533
5,319 Rowan Companies Incorporated+ 44,178 67,485
134,749 Royal Dutch Petroleum Company ADR 2,357,883 7,006,948
34,339 Schlumberger Limited 915,859 2,066,779
15,130 Sempra Energy 413,428 290,307
6,349 Sigma Aldrich Corporation 121,854 185,708
5,903 Sunoco Incorporated 204,199 212,877
33,624 Texaco Incorporated 865,659 1,908,162
10,020 Thermo Electron Corporation+ 406,625 135,895
15,827 Union Pacific Resources Group Incorporated 315,498 187,945
15,211 Unocal Corporation 329,861 559,955
19,382 USX - Marathon Group 464,253 533,005
</TABLE>
57
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
4,679 W.R. Grace & Company+ $ 56,693 $ 56,733
26,911 Williams Companies Incorporated 362,099 1,062,985
------------ --------------
$ 19,193,139 $ 41,782,937
ENTERTAINMENT & LEISURE - 1.34%
37,854 Carnival Corporation Class A $ 1,635,774 $ 1,838,285
6,547 Harrah's Entertainment Incorporated+ 49,361 124,802
16,393 Hilton Hotels Corporation 138,686 230,527
4,606 King World Productions+ 53,772 140,770
15,762 Marriott International 189,628 529,997
11,357 Mirage Resorts Incorporated+ 308,783 241,335
21,877 Viacom Incorporated Class B+ 788,927 1,836,300
128,744 Walt Disney Company 1,461,352 4,007,157
------------ --------------
$ 4,626,283 $ 8,949,173
FINANCE & RELATED - 12.86%
28,434 American Express Corporation $ 788,468 $ 3,340,995
6,900 AmSouth Bancorp 339,182 313,950
45,458 Associates First Capital Corporation 864,181 2,045,610
73,543 Banc One Corporation 1,957,910 4,049,460
108,732 Bank of America Corporation 2,204,899 7,679,198
47,848 Bank of New York Incorporated 447,470 1,719,538
18,530 BankBoston Corporation 326,744 802,581
6,005 Bankers Trust NY Corporation 396,187 529,941
18,800 BB&T Corporation 615,100 680,325
7,439 Bear Stearns & Company Incorporated 402,740 332,430
4,132 Capital One Financial Corporation 512,253 623,932
25,217 Charles Schwab Corporation 450,063 2,423,984
53,189 Chase Manhattan Corporation 997,269 4,324,931
142,775 Citigroup Incorporated 2,011,662 9,119,753
9,799 Comerica Incorporated 247,242 611,825
7,042 Countrywide Credit Industries Incorporated 235,139 264,075
5,075 Deluxe Corporation 181,119 147,809
42,682 Federal Home Loan Mortgage Corporation 514,223 2,438,209
65,209 Federal National Mortgage Association 695,154 4,515,723
</TABLE>
58
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
16,780 Fifth Third Bancorp $ 500,298 $ 1,106,431
62,311 First Union Corporation 1,420,338 3,329,744
14,116 Firstar Corporation 1,312,711 1,263,382
35,752 Fleet Financial Group Incorporated 629,787 1,345,169
15,944 Franklin Resources Incorporated 852,720 448,425
3,596 Golden West Financial 99,738 343,418
6,340 H&R Block Incorporated 134,623 300,358
30,374 Household International Incorporated 354,396 1,385,814
13,303 Huntington Bancshares Incorporated 416,894 411,562
10,999 JP Morgan & Company Incorporated 551,650 1,357,002
28,636 KeyCorp 480,878 868,029
7,308 Lehman Brothers Holdings 400,822 436,653
6,261 MBIA Incorporated 334,889 363,138
49,205 MBNA Corporation 174,501 1,174,769
16,446 Mellon Bank Corporation 306,179 1,157,387
9,895 Mercantile Bancorporation 551,710 470,013
22,311 Merrill Lynch & Company Incorporated 354,998 1,973,129
6,892 MGIC Investment Corporation 215,627 241,651
36,330 Morgan Stanley Dean Witter & Company 923,717 3,630,729
20,808 National City Corporation 988,293 1,381,131
6,996 Northern Trust Corporation 484,443 621,332
18,931 PNC Bank Corporation 524,543 1,051,854
8,921 Providian Financial Corporation 48,860 981,310
13,936 Regions Financial Corporation 493,105 482,534
6,778 Republic New York Corporation 199,034 312,635
10,443 SLM Holding Corporation 512,261 435,995
9,700 SouthTrust Corp 387,886 361,931
14,856 St. Paul Companies Incorporated 370,990 461,465
10,095 State Street Corporation 518,389 829,683
10,941 Summit Bancorp 546,974 426,699
19,990 SunTrust Banks Incorporated 729,816 1,244,378
16,844 Synovus Financial Corporation 363,575 344,249
8,862 Torchmark Corporation 122,222 280,261
7,860 Transamerica Corporation 173,888 558,060
45,653 U.S. Bancorporation 734,031 1,555,055
8,567 Union Planters Corporation 427,974 376,413
</TABLE>
59
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
8,720 UNUM Corporation $ 249,453 $ 414,745
12,768 Wachovia Corporation 648,471 1,036,602
37,318 Washington Mutual Incorporated 938,039 1,525,373
102,604 Wells Fargo & Company** 997,582 3,597,553
------------ --------------
$ 34,663,310 $ 85,850,330
FOOD & RELATED - 3.53%
15,463 Albertson's Incorporated $ 202,996 $ 839,834
17,265 American Stores Company 156,568 569,745
37,308 Archer-Daniels-Midland Company 318,003 547,961
17,979 Bestfoods 270,314 845,013
28,183 Campbell Soup Company 339,315 1,146,696
8,764 Darden Restaurants Incorporated 59,705 180,758
9,634 General Mills Incorporated 322,711 727,969
2,409 Great Atlantic & Pacific Tea Company 86,405 72,270
22,775 H J Heinz Company 441,104 1,078,966
9,020 Hershey Foods Corporation 157,928 505,120
25,502 Kellogg Company 483,876 862,286
16,118 Kroger Company+ 136,341 965,065
85,000 McDonald's Corporation 735,919 3,851,563
153,006 Philip Morris Companies Incorporated 2,114,327 5,383,899
8,586 Quaker Oats Company 207,561 537,162
20,466 RJR Nabisco Holdings Corporation 541,864 511,650
30,586 Safeway Incorporated+ 1,681,328 1,569,444
57,366 Sara Lee Corporation 479,164 1,419,809
7,604 Supervalu Incorporated 101,721 156,833
21,010 Sysco Corporation 157,788 552,826
9,612 Tricon Global Restaurants Incorporated+ 84,434 675,243
7,852 Wendy's International Incorporated 107,209 223,291
9,361 Winn-Dixie Stores Incorporated 156,537 349,867
------------ --------------
$ 9,343,118 $ 23,573,270
</TABLE>
60
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
GENERAL BUSINESS & RELATED - 3.74%
12,341 Allegheny Teledyne Incorporated $ 234,144 $ 233,708
4,470 American Greetings Corporation Class A 84,261 113,426
38,008 Automatic Data Processing 343,913 1,572,581
3,547 Boise Cascade Corporation 131,939 114,391
10,426 Cabletron Systems Incorporated+ 287,260 85,363
44,419 CBS Corporation+ 1,040,760 1,818,403
6,035 Champion International Corporation 202,281 247,812
23,220 Comcast Corporation Class A 506,539 1,461,409
33,860 Computer Associates International Incorporated 205,040 1,204,146
5,906 Dow Jones & Company Incorporated 229,601 278,689
10,523 Dun & Bradstreet Corporation 195,541 374,882
30,995 Electronic Data Systems Corporation 1,264,850 1,509,069
9,286 Equifax Incorporated 295,492 319,206
9,295 FDX Corporation+ 327,656 862,692
17,715 Gannett Company Incorporated 404,792 1,116,045
5,543 Georgia-Pacific Corporation 196,410 411,568
14,690 Homestake Mining Company 202,452 126,701
2,252 Jostens Incorporated 58,432 47,855
4,950 Knight-Ridder Incorporated 134,484 247,500
7,161 Loews Corporation 400,572 534,390
6,902 Louisiana-Pacific Corporation 105,542 128,550
12,378 McGraw-Hill Incorporated 203,917 674,601
38,175 Media One Group Incorporated+ 556,928 2,424,113
3,292 Meredith Corporation 28,445 103,492
7,657 Morton International Incorporated 96,242 281,395
2,627 National Service Industries Incorporated 67,302 89,482
11,495 New York Times Company Class A+ 172,357 327,608
18,112 Nextel Communications Class A+ 604,445 663,352
1,839 Potlatch Corporation 65,946 62,411
8,557 RR Donnelley & Sons Company 194,144 275,428
9,981 Textron Incorporated 180,849 772,280
77,061 Time Warner Incorporated 1,400,861 5,476,147
5,008 Times Mirror Company Class A+ 132,950 270,745
</TABLE>
61
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
7,484 Tribune Company $ 159,610 $ 489,734
7,007 Willamette Industries Incorporated 239,859 264,514
------------ --------------
$ 10,955,816 $ 24,983,688
HEALTHCARE - 1.43%
82,788 American Home Products Corporation $ 1,174,276 $ 5,401,917
40,559 Columbia HCA Healthcare Corporation 1,078,127 768,086
7,001 HCR Manor Care+ 137,701 159,710
26,667 Healthsouth Corporation+ 572,229 276,670
10,564 Humana Incorporated+ 295,285 182,229
20,178 IMS Health Incorporated 277,058 668,396
17,044 McKesson HBOC Incorporated 1,213,504 1,124,904
19,515 Tenet Healthcare Corporation+ 367,484 369,565
11,735 United Healthcare Corporation 552,968 617,554
------------ --------------
$ 5,668,632 $ 9,569,031
INSURANCE COMPANIES - 3.13%
8,989 Aetna Incorporated $ 749,785 $ 746,087
51,613 Allstate Corporation 605,354 1,912,907
15,859 American General Corporation 368,392 1,118,060
77,599 American International Group Incorporated 1,600,769 9,360,379
10,696 AON Corporation 390,752 676,522
10,265 Chubb Corporation 277,358 601,144
12,989 CIGNA Corporation 286,354 1,088,641
10,525 Cincinnati Financial Corporation 490,676 383,505
19,775 Conseco Incorporated 728,933 610,553
14,705 Hartford Financial Services Group 202,119 835,428
6,678 Jefferson Pilot Corporation 91,480 452,435
6,366 Lincoln National Corporation 208,807 629,438
16,205 Marsh & McLennan Companies Incorporated 455,791 1,202,208
4,566 Progressive Corporation 499,041 655,221
8,521 Provident Companies Incorporated 310,227 294,507
8,586 Safeco Corporation 182,023 347,196
------------ --------------
$ 7,447,861 $ 20,914,231
</TABLE>
62
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
INTERNET SOFTWARE & NETWORK PRODUCTS - 3.37%
22,561 3COM Corporation+ $ 1,057,033 $ 525,953
64,316 America Online Incorporated+ 5,326,149 9,390,136
13,647 Ascend Communication Incorporated+ 671,705 1,142,083
99,196 Cisco Systems Incorporated+ 1,385,123 10,868,162
22,192 Novell Incorporated+ 530,315 558,961
------------ --------------
$ 8,970,325 $ 22,485,295
MANUFACTURING PROCESSING - 3.47%
1,768 Aeroquip-Vickers Incorporated $ 49,182 $ 101,329
14,583 Air Products & Chemicals Incorporated 236,265 499,468
14,348 Alcan Aluminum Limited 275,817 370,358
23,122 Alcoa Incorporated 398,755 952,337
2,537 Asarco Incorporated 63,770 34,884
7,320 Avery Dennison Corporation 120,865 420,900
4,689 BF Goodrich Company 136,344 160,891
1,959 Ball Corporation 63,388 91,951
23,507 Barrick Gold Corporation 692,680 401,088
14,572 Battle Mountain Gold Company 124,180 40,073
3,295 Bemis Company Incorporated 42,793 102,351
8,206 Bethlehem Steel Corporation+ 126,791 67,700
3,381 C R Bard Incorporated 78,146 170,529
7,724 Crown Cork & Seal Company 233,263 220,617
5,797 Cyprus Amax Minerals 150,222 70,289
8,424 Danaher Corporation 374,866 440,154
13,924 Dow Chemical Company 755,344 1,297,543
8,144 Ecolab Incorporated 62,255 289,112
9,037 Engelhard Corporation 78,641 153,064
2,083 FMC Corporation+ 77,334 102,848
13,891 Fort James Corporation 526,019 440,171
10,774 Fortune Brands Incorporated 245,069 416,819
9,715 Fred Meyer Incorporated+ 471,407 571,971
3,721 Great Lakes Chemical Corporation 182,607 136,747
6,206 Hercules Incorporated 124,447 156,702
7,934 Honeywell Incorporated 184,601 601,496
</TABLE>
63
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
8,563 IKON Office Solutions $ 180,862 $ 109,713
10,520 Inco Limited 266,220 140,048
19,357 International Paper Company 540,746 816,623
6,528 ITT Industries Incorporated 80,075 230,928
34,086 Kimberly-Clark Corporation 578,266 1,633,998
3,752 McDermott International Incorporated 94,759 94,973
6,483 Mead Corporation 109,745 199,352
2,439 Milacron Incorporated 54,313 38,414
39,410 Monsanto Company 441,086 1,810,397
5,610 Moore Corporation Limited 134,363 55,399
495 Nacco Industries Incorporated Class A 19,539 36,661
4,159 Nalco Chemical Company 116,501 110,473
10,430 Newmont Mining Corporation 331,617 182,525
5,530 Nucor Corporation 104,643 243,666
9,781 Owens-Illinois Incorporated+ 362,996 244,525
3,656 Phelps Dodge Corporation 114,032 180,058
15,777 Placer Dome Incorporated 245,032 176,505
11,162 PPG Industries Incorporated 286,911 572,053
4,067 Reynolds Metals Company 203,918 196,487
10,484 Rohm & Haas Company 149,289 351,869
10,864 Sherwin Williams Company 104,089 305,550
3,508 Temple-Inland Incorporated 122,422 220,127
10,722 Tenneco Incorporated 426,373 299,546
40,521 Tyco International Limited 1,678,258 2,907,382
40,259 Unilever NV 729,284 2,674,707
4,363 Union Camp Corporation 181,014 292,866
8,373 Union Carbide Corporation 143,864 378,355
5,570 USX - US Steel Group 154,144 130,895
6,386 Westvaco Corporation 128,151 134,106
5,885 Worthington Industries Incorporated 71,851 69,149
------------ --------------
$ 14,029,414 $ 23,148,742
</TABLE>
64
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MEDICAL EQUIPMENT & SUPPLIES - 2.32%
32,012 Amgen Incorporated+ $ 580,284 $ 2,396,899
17,991 Baxter International Incorporated 406,585 1,187,406
15,576 Becton Dickinson & Company 133,545 596,756
7,056 Biomet Incorporated+ 68,616 295,911
24,711 Boston Scientific Corporation+ 350,850 1,002,340
18,954 Guidant Corporation+ 276,510 1,146,717
69,057 Lilly (Eli) & Company 1,061,263 5,861,213
4,498 Mallinckrodt Incorporated 93,952 119,759
36,731 Medtronic Incorporated 776,888 2,635,449
1,662 Shared Medical System Corporation 51,700 92,553
5,316 St. Jude Medical Incorporated+ 134,338 129,578
------------ --------------
$ 3,934,531 $ 15,464,581
PHARMACEUTICALS - 7.11%
95,345 Abbott Laboratories $ 942,075 $ 4,463,338
124,856 Bristol-Myers Squibb Company 1,656,904 8,029,802
16,928 Cardinal Health Incorporated 887,873 1,117,248
149,700 Merck & Company Incorporated 2,221,406 12,004,069
81,510 Pfizer Incorporated 1,149,531 11,309,513
31,956 Pharmacia and Upjohn Incorporated 1,017,906 1,993,256
92,322 Schering-Plough Corporation 463,946 5,106,561
51,660 Warner Lambert Company 443,113 3,419,246
------------ --------------
$ 8,782,754 $ 47,443,033
RETAIL & RELATED - 4.36%
6,318 Circuit City Stores Incorporated $ 96,326 $ 484,117
6,887 Consolidated Stores Corporation+ 300,642 208,762
13,619 Costco Companies Incorporated+ 276,961 1,246,990
27,674 Dayton-Hudson Corporation 263,015 1,843,780
6,738 Dillards Incorporated Class A 157,888 170,977
11,634 Dollar General Corporation 425,369 395,556
12,911 Federated Department Stores Incorporated+ 352,463 518,054
36,446 Gap Incorporated 175,523 2,453,271
15,970 J C Penney Company Incorporated 502,373 646,785
</TABLE>
65
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
31,000 K-Mart Corporation+ $ 589,260 $ 521,188
9,946 Kohls Corporation+ 567,706 704,923
14,362 Limited Incorporated 306,898 569,094
4,100 Liz Claiborne Incorporated 124,261 133,763
2,462 Longs Drug Stores Corporation 43,284 74,937
22,071 May Department Stores Company+ 333,042 863,528
9,383 Nordstrom Incorporated 148,645 383,530
16,281 Rite Aid Corporation 225,516 407,025
24,103 Sears Roebuck & Company 510,415 1,089,154
29,352 Staples Incorporated+ 555,591 964,947
20,264 TJX Companies Incorporated 125,909 688,976
140,468 Wal-Mart Stores Incorporated 2,105,008 12,949,394
62,736 Walgreen's Company 201,521 1,772,292
------------ --------------
$ 8,387,616 $ 29,091,043
SHELTER & RELATED - 1.38%
2,540 Armstrong World Industries Incorporated $ 104,099 $ 114,776
3,770 Centex Corporation 39,505 125,824
4,317 Crane Company 35,096 104,417
2,208 Fleetwood Enterprises Incorporated 37,615 63,204
92,606 Home Depot Incorporated 973,684 5,764,724
2,527 Kaufman & Broad Home Corporation 32,909 57,015
22,176 Lowe's Company Incorporated 151,972 1,341,648
21,373 Masco Corporation 320,051 603,787
3,416 Owens Corning Fiberglass Corporation 87,451 108,672
2,736 Pulte Corporation 23,125 56,943
5,636 Stanley Works 98,813 144,423
12,516 Weyerhaeuser Company 410,038 694,638
------------ --------------
$ 2,314,358 $ 9,180,071
</TABLE>
66
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS - 5.41%
35,977 Airtouch Communications Incorporated+ $ 723,726 $ 3,476,278
5,474 Andrew Corporation+ 17,925 67,399
16,575 Clear Channel Communications Incorporated+ 628,781 1,111,561
10,815 Frontier Corporation 244,954 561,028
10,551 General Instrument Corporation+ 206,436 319,827
60,696 GTE Corporation 1,723,335 3,672,108
82,793 Lucent Technologies Incorporated 1,584,763 8,920,946
115,195 MCI Worldcom Incorporated+ 2,734,786 10,201,957
41,216 Northern Telecom Limited 1,116,632 2,560,544
4,748 Scientific-Atlanta Incorporated 30,307 129,383
27,791 Sprint Corporation (FON Group) 821,549 2,726,992
26,935 Sprint Corporation (PCS Group)+ 365,986 1,193,557
12,219 Tellabs Incorporated+ 324,600 1,194,407
------------ --------------
$ 10,523,780 $ 36,135,987
TRANSPORTATION - 0.48%
29,515 Burlington Northern Santa Fe $ 389,608 $ 970,306
13,753 CSX Corporation 311,740 535,507
20,819 Laidlaw Incorporated 190,632 121,010
23,849 Norfolk Southern Corporation 332,970 629,017
4,552 Ryder Systems Incorporated 120,312 125,749
15,583 Union Pacific Corporation 488,523 832,717
------------ --------------
$ 1,833,785 $ 3,214,306
UTILITIES - 7.28%
11,372 AES Corporation+ $ 415,045 $ 423,607
17,263 Alltel Corporation 627,667 1,076,780
8,646 Ameren Corporation 317,279 312,877
12,056 American Electric Power Incorporated 354,360 478,473
132,633 American Telephone & Telegraph Corporation 3,656,673 10,585,771
69,282 Ameritech Corporation 978,209 4,009,696
9,413 Baltimore Gas & Electric Company 199,315 238,855
</TABLE>
67
<PAGE>
Equity Index Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
97,520 Bell Atlantic Corporation $ 2,170,835 $ 5,040,565
122,885 BellSouth Corporation 1,434,760 4,923,080
9,538 Carolina Power & Light Company 225,168 360,656
13,401 Central & South West Corporation 269,545 314,086
4,512 Century Telephone Enterprise 308,303 316,968
9,992 Cinergy Corporation 220,459 274,780
14,689 Consolidated Edison Incorporated 364,297 665,595
9,145 Detroit Energy Company 206,960 351,511
12,310 Dominion Resources Incorporated 400,442 454,701
22,769 Duke Energy Corporation 568,292 1,243,757
22,182 Edison International 401,472 493,550
27,709 Emerson Electric Company 615,227 1,466,845
15,540 Entergy Corporation 363,950 427,350
14,940 First Energy Corporation 334,695 417,386
11,375 FPL Group Incorporated 382,930 605,719
8,063 GPU Incorporated 247,759 300,851
7,160 New Century Energies Incorporated 346,034 243,888
11,821 Niagara Mohawk Holdings Incorporated 200,342 158,845
2,999 NICOR Incorporated 62,177 107,777
9,624 Northern States Power Company 179,710 223,157
2,006 Oneok Incorporated 37,343 49,649
18,743 PacifiCorp 360,615 323,317
14,117 PECO Energy Company 315,975 652,911
2,250 Peoples Energy Corporation 53,490 72,703
24,097 PG&E Corporation 609,027 748,513
9,514 PP & L Resources Incorporated 245,556 235,472
14,380 Public Services Enterprise Group 389,705 549,136
17,890 Reliant Energy Incorporated 336,263 466,258
122,905 SBC Communications Incorporated 1,897,283 5,791,898
6,943 Sonat Incorporated 173,784 208,290
43,869 Southern Company 635,865 1,022,696
17,784 Texas Utilities Company 667,762 741,371
31,606 U.S. West Incorporated 636,512 1,740,305
13,685 Unicom Corporation 464,034 500,358
------------ --------------
$ 22,675,119 $ 48,620,003
TOTAL COMMON STOCKS $234,385,816 $ 660,889,683
</TABLE>
68
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Index Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 0.94%
U.S. TREASURY BILLS - 0.94%
$ 3,872,000 U.S. Treasury Bills 4.31%# 04/01/99 $ 3,871,538
1,818,000 U.S. Treasury Bills 4.52# 05/13/99 1,808,265
600,000 U.S. Treasury Bills 4.34# 06/24/99 593,910
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 6,273,713
(Cost $6,274,407)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $240,660,223)* (Notes 1 and 3) 99.94% $ 667,163,396
Other Assets and Liabilities, Net 0.06 400,251
------ --------------
TOTAL NET ASSETS 100.00% $ 667,563,647
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
** SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $997,582.
+ NON-INCOME EARNING SECURITIES.
# YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 437,555,636
Gross Unrealized Depreciation (11,052,463)
--------------
NET UNREALIZED APPRECIATION $ 426,503,173
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
69
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 98.29%
AEROSPACE - 1.49%
69,100 Raytheon Company Class B $ 3,858,060 $ 4,050,988
AUTOMOBILE & RELATED - 4.50%
24,391 Daimler-Chrysler AG+ $ 1,293,509 $ 2,093,053
51,000 Dana Corporation 2,229,868 1,938,000
164,300 Delphi Automotive Systems Corporation+ 2,879,206 2,916,325
50,500 Eaton Corporation 4,164,367 3,610,750
29,000 Ford Motor Company 584,437 1,645,750
------------ --------------
$ 11,151,387 $ 12,203,878
CAPITAL GOODS - 4.39%
30,000 General Electric Company $ 731,130 $ 3,318,750
49,300 Johnson Controls Incorporated 1,502,437 3,075,088
124,100 Waste Management Incorporated 4,547,087 5,506,938
------------ --------------
$ 6,780,654 $ 11,900,776
COMPUTER SYSTEMS - 5.63%
86,150 Apple Computer Incorporated+ $ 2,926,477 $ 3,096,015
53,650 International Business Machines Corporation 3,290,549 9,509,463
90,000 Seagate Technology Incorporated+ 1,618,153 2,660,625
------------ --------------
$ 7,835,179 $ 15,266,103
CONSUMER-DISCRETIONARY - 1.02%
47,850 DuPont (E.I.) de Nemours and Company $ 3,631,509 $ 2,778,290
ELECTRONICS - 1.77%
45,500 Harris Corporation $ 1,425,525 $ 1,302,438
42,400 Koninklijke Royal Philips Electronics N.V. ADR 3,174,546 3,495,350
------------ --------------
$ 4,600,071 $ 4,797,788
</TABLE>
70
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Value Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY & RELATED - 9.53%
38,650 Atlantic Richfield Corporation $ 2,282,855 $ 2,821,450
57,000 Columbia Energy Group 2,884,484 2,978,250
70,000 Exxon Corporation 2,344,594 4,939,375
97,600 Mobil Corporation 6,276,883 8,588,800
56,500 Phillips Petroleum Company 2,667,201 2,669,625
56,900 Transocean Offshore Incorporated 1,461,477 1,639,430
80,000 USX - Marathon Group 2,437,128 2,200,000
------------ --------------
$ 20,354,622 $ 25,836,930
ENTERTAINMENT & LEISURE - 1.38%
175,550 Mirage Resorts Incorporated+ $ 3,114,404 $ 3,730,438
FINANCE & RELATED - 24.85%
70,000 A.G. Edwards & Sons Incorporated $ 1,252,175 $ 2,288,125
109,155 Banc One Corporation 6,061,178 6,010,347
103,150 Bank of America Corporation 4,193,402 7,284,969
26,100 Bankers Trust NY Corporation 2,286,522 2,303,325
58,580 Chase Manhattan Corporation 1,329,965 4,763,285
67,700 Citigroup Incorporated 2,340,248 4,324,338
99,550 First Union Corporation 4,260,493 5,319,703
328,678 Fremont General Corporation 4,059,464 6,265,424
46,450 Morgan Stanley Dean Witter & Company 3,910,892 4,642,097
190,700 North Fork Bancorporation 3,390,549 4,028,538
70,000 Providian Financial Corporation 486,185 7,700,000
117,000 SLM Holding Corporation 5,313,145 4,884,750
57,025 Union BanCal Corporation 1,710,750 1,942,414
137,700 Washington Mutual Incorporated 6,250,555 5,628,488
------------ --------------
$ 46,845,523 $ 67,385,803
FOOD & RELATED - 3.15%
112,100 American Stores Company $ 2,346,948 $ 3,699,300
539,000 Food Lion Incorporated Class B 5,168,890 4,851,000
------------ --------------
$ 7,515,838 $ 8,550,300
</TABLE>
71
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
GENERAL BUSINESS & RELATED - 0.77%
100,000 Allegheny Teledyne Incorporated $ 2,527,437 $ 1,893,750
9,500 Tropical Sportswear International+ 127,780 193,563
------------ --------------
$ 2,655,217 $ 2,087,313
HEALTHCARE - 0.33%
72,900 Foundation Health Systems Incorporated+ $ 2,006,230 $ 888,469
INSURANCE COMPANIES - 8.83%
79,800 American Bankers Insurance Group $ 912,319 $ 4,149,600
28,750 American International Group Incorporated 3,095,806 3,467,969
107,000 CIGNA Corporation 6,858,626 8,967,938
129,450 Hartford Financial Services Group 5,833,758 7,354,378
------------ --------------
$ 16,700,509 $ 23,939,885
MANUFACTURING PROCESSING - 6.10%
63,400 Honeywell Incorporated $ 4,636,239 $ 4,806,513
55,000 Montana Power Company 2,022,041 4,045,938
160,000 Owens-Illinois Incorporated+ 1,582,378 4,000,000
124,050 Sherwin Williams Company 3,028,950 3,488,905
3,500 Southdown Incorporated 197,610 187,905
------------ --------------
$ 11,467,218 $ 16,529,261
PHARMACEUTICALS - 1.38%
60,000 Pharmacia and Upjohn Incorporated $ 1,588,076 $ 3,742,500
REAL ESTATE INVESTMENT TRUSTS - 1.46%
227,712 Prison Realty Corporation $ 5,412,843 $ 3,970,728
RETAIL & RELATED - 2.86%
60,000 Costco Companies Incorporated+ $ 889,500 $ 5,493,750
90,000 Rite Aid Corporation 1,331,900 2,250,000
------------ --------------
$ 2,221,400 $ 7,743,750
</TABLE>
72
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Equity Value Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS - 4.94%
116,700 GTE Corporation $ 4,597,358 $ 7,060,350
71,550 MCI Worldcom Incorporated+ 5,628,937 6,336,647
------------ --------------
$ 10,226,295 $ 13,396,997
TRANSPORTATION - 0.48%
23,400 Canadian National Railway Company $ 1,327,908 $ 1,301,625
UTILITIES - 13.43%
148,702 American Telephone & Telegraph Corporation $ 11,519,530 $ 11,868,278
112,600 Ameritech Corporation 5,515,757 6,516,725
38,025 Bell Atlantic Corporation 1,887,248 1,965,416
54,000 Duke Energy Corporation 2,539,835 2,949,750
109,350 Northern States Power Company 2,966,442 2,535,553
151,350 PacifiCorp 2,676,625 2,610,788
39,100 SBC Communications Incorporated 2,000,759 1,842,588
97,050 Texas Utilities Company 4,267,629 4,045,772
37,675 U.S. West Incorporated 2,094,485 2,074,480
------------ --------------
$ 35,468,310 $ 36,409,350
TOTAL COMMON STOCKS $204,761,253 $ 266,511,172
</TABLE>
73
<PAGE>
Equity Value Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
SHARES SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 1.57%
3,912,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 3,912,000
350,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 350,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 4,262,000
(Cost $4,262,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $209,023,253)* (Notes 1 and 3) 99.86% 270,773,172
Other Assets and Liabilities, Net 0.14 372,929
------ --------------
TOTAL NET ASSETS 100.00% $ 271,146,101
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 70,409,448
Gross Unrealized Depreciation (8,659,529)
--------------
NET UNREALIZED APPRECIATION $ 61,749,919
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
74
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 95.08%
AEROSPACE - 2.81%
153,706 Allied Signal Incorporated $ 4,232,845 $ 7,560,414
32,900 United Technologies Corporation 3,322,534 4,455,894
------------ --------------
$ 7,555,379 $ 12,016,308
AUTOMOBILE & RELATED - 0.56%
41,900 Ford Motor Company $ 2,133,813 $ 2,377,825
BEVERAGE, BREWING AND DISTRIBUTION - 1.90%
96,920 Coca-Cola Company $ 6,508,000 $ 5,948,465
56,000 Pepsico Incorporated 2,238,387 2,194,500
------------ --------------
$ 8,746,387 $ 8,142,965
CAPITAL GOODS - 4.09%
147,042 General Electric Company $ 10,754,073 $ 16,266,520
24,700 Ingersoll-Rand Company 1,094,248 1,225,738
------------ --------------
$ 11,848,321 $ 17,492,258
COMPUTER SOFTWARE - 4.60%
219,416 Microsoft Corporation+ $ 7,956,444 $ 19,665,159
COMPUTER SYSTEMS - 8.55%
96,800 Compaq Computer Corporation $ 3,127,574 $ 3,067,350
55,000 Dell Computer Corporation+ 2,175,740 2,248,125
120,100 EMC Corporation+ 4,455,026 15,342,775
30,486 Hewlett Packard Company 1,997,437 2,067,332
45,308 Intel Corporation 3,713,191 5,397,315
33,662 International Business Machines Corporation 3,717,218 5,966,590
25,000 Texas Instruments Incorporated 2,318,231 2,481,250
------------ --------------
$ 21,504,417 $ 36,570,737
</TABLE>
75
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER - BASIC - 3.62%
50,800 Colgate-Palmolive Company $ 2,972,793 $ 4,673,600
59,102 Johnson & Johnson 3,943,787 5,537,119
53,944 Procter & Gamble Company 4,387,381 5,283,140
------------ --------------
$ 11,303,961 $ 15,493,859
CONSUMER-DISCRETIONARY - 2.68%
69,076 DuPont (E.I.) de Nemours and Company $ 4,424,260 $ 4,010,725
79,276 Gillette Company 2,726,199 4,711,966
34,000 Mattel Incorporated 1,389,198 845,750
35,200 Xerox Corporation 1,725,656 1,878,800
------------ --------------
$ 10,265,313 $ 11,447,241
ENERGY & RELATED - 6.45%
61,573 Chevron Corporation $ 5,148,496 $ 5,445,362
105,578 Exxon Corporation 6,782,646 7,449,848
51,174 Mobil Corporation 3,701,333 4,503,312
109,816 Royal Dutch Petroleum Company ADR 5,904,596 5,710,432
19,000 Schlumberger Limited 1,113,408 1,143,563
24,554 Texaco Incorporated 1,357,889 1,393,440
48,930 Williams Companies Incorporated 1,271,773 1,932,735
------------ --------------
$ 25,280,141 $ 27,578,692
ENTERTAINMENT & LEISURE - 1.75%
160,300 Fox Entertainment Group Incorporated+ $ 3,818,595 $ 4,348,137
100,700 Walt Disney Company 3,185,659 3,134,287
------------ --------------
$ 7,004,254 $ 7,482,424
FINANCE & RELATED - 11.77%
35,000 Associates First Capital Corporation $ 1,472,603 $ 1,575,000
76,938 Banc One Corporation 3,932,874 4,236,399
76,596 Charles Schwab Corporation 1,557,173 7,362,790
155,160 Chase Manhattan Corporation 8,667,107 12,616,448
84,000 Citigroup Incorporated 5,168,483 5,365,500
</TABLE>
76
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
133,560 Federal Home Loan Mortgage Corporation $ 4,827,321 $ 7,629,615
79,276 Federal National Mortgage Association 4,826,093 5,489,863
120,326 Household International Incorporated 4,621,441 5,489,874
6,000 Morgan Stanley Dean Witter & Company 614,147 599,625
------------ --------------
$ 35,687,242 $ 50,365,114
FOOD & RELATED - 2.64%
39,300 Bestfoods $ 1,925,688 $ 1,847,100
57,600 McDonald's Corporation 1,767,918 2,610,000
83,597 Philip Morris Companies Incorporated 3,512,797 2,941,569
75,700 Safeway Incorporated+ 3,608,780 3,884,355
------------ --------------
$ 10,815,183 $ 11,283,024
GENERAL BUSINESS & RELATED - 2.12%
71,780 Gannett Company Incorporated $ 4,416,441 $ 4,522,140
92,000 Infinity Broadcasting Corporation+ 1,886,000 2,369,000
20,000 Time Warner Incorporated 1,265,000 1,421,250
11,748 Tribune Company 494,111 768,760
------------ --------------
$ 8,061,552 $ 9,081,150
INSURANCE COMPANIES - 4.11%
113,796 Allstate Corporation $ 4,924,264 $ 4,217,564
110,740 American International Group Incorporated 6,845,549 13,358,013
------------ --------------
$ 11,769,813 $ 17,575,577
INTERNET SOFTWARE & NETWORK PRODUCTS - 3.60%
10,000 America Online Incorporated+ $ 1,164,350 $ 1,460,000
127,314 Cisco Systems Incorporated+ 3,485,180 13,948,840
------------ --------------
$ 4,649,530 $ 15,408,840
</TABLE>
77
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING PROCESSING - 4.65%
181,232 Alcoa Incorporated $ 5,779,419 $ 7,464,493
110,288 Danaher Corporation 2,799,725 5,762,548
45,858 Monsanto Company 1,828,852 2,106,602
63,300 Tyco International Limited 3,455,881 4,541,775
------------ --------------
$ 13,863,877 $ 19,875,418
MEDICAL EQUIPMENT & SUPPLIES - 2.33%
72,722 Baxter International Incorporated $ 3,401,340 $ 4,799,652
22,540 Guidant Corporation+ 754,733 1,363,670
18,954 Lilly (Eli) & Company 1,323,058 1,608,720
30,300 Medtronic Incorporated 2,406,532 2,174,025
------------ --------------
$ 7,885,663 $ 9,946,067
PHARMACEUTICALS - 6.89%
66,072 Abbott Laboratories $ 2,361,784 $ 3,092,996
84,984 Bristol-Myers Squibb Company 4,187,578 5,465,534
74,200 Merck & Company Incorporated 4,110,546 5,949,913
72,990 Pfizer Incorporated 5,859,695 10,127,363
87,700 Schering-Plough Corporation 3,327,931 4,850,906
------------ --------------
$ 19,847,534 $ 29,486,712
RETAIL & RELATED - 5.23%
105,320 Dayton-Hudson Corporation $ 3,061,403 $ 7,016,945
27,000 Gap Incorporated 599,649 1,817,438
12,000 Kohls Corporation+ 882,720 850,500
137,552 Wal-Mart Stores Incorporated 5,813,937 12,680,575
------------ --------------
$ 10,357,709 $ 22,365,458
SHELTER & RELATED - 1.43%
64,600 Home Depot Incorporated $ 2,257,967 $ 4,021,350
34,500 Lowe's Company Incorporated 1,998,183 2,087,250
------------ --------------
$ 4,256,150 $ 6,108,600
</TABLE>
78
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS - 6.29%
47,200 Clear Channel Communications Incorporated+ $ 2,136,857 $ 3,165,350
82,346 GTE Corporation 3,862,932 4,981,933
50,292 Lucent Technologies Incorporated 2,269,280 5,418,963
101,824 MCI Worldcom Incorporated+ 4,354,621 9,017,788
69,835 Northern Telecom Limited 3,786,892 4,338,499
------------ --------------
$ 16,410,582 $ 26,922,533
UTILITIES - 7.01%
75,100 AES Corporation+ $ 3,068,766 $ 2,797,475
56,614 American Telephone & Telegraph Corporation 3,153,990 4,518,505
91,952 Bell Atlantic Corporation 4,274,015 4,752,769
107,486 Edison International 2,811,748 2,391,564
51,748 FPL Group Incorporated 2,797,593 2,755,581
132,836 PG&E Corporation 4,070,008 4,126,218
163,404 SBC Communications Incorporated 5,107,225 7,700,414
23,000 Texas Utilities Company 1,010,928 958,813
------------ --------------
$ 26,294,273 $ 30,001,339
TOTAL COMMON STOCKS $283,497,538 $ 406,687,300
OTHER - 2.55%
UNIT INVESTMENT TRUST - 2.55%
85,000 Standard & Poor's Depositary Receipt $ 10,468,940 $ 10,922,500
</TABLE>
79
<PAGE>
Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
SHARES SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 2.61%
10,714,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 10,714,000
429,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 429,000
--------------
TOTAL REPURCHASE AGREEMENTS $ 11,143,000
(Cost $11,143,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $305,109,478)* (Notes 1 and 3) 100.24% $ 428,752,800
Other Assets and Liabilities, Net (0.24) (1,028,325)
------ --------------
TOTAL NET ASSETS 100.00% $ 427,724,475
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 128,535,813
Gross Unrealized Depreciation (4,892,491)
--------------
NET UNREALIZED APPRECIATION $ 123,643,322
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
80
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
AUSTRALIA - 1.84%
160,000 News Corporation Limited (Media - Broadcasting &
Publishing) $ 1,005,182 $ 1,183,072
BRAZIL - 0.90%
40,000 Aracruz Celulose SA ADR - (Forest Products & Paper) $ 727,686 $ 580,000
CANADA - 0.83%
10,000 Potash Corporation of Saskatchewan Incorporated -
(Chemicals) $ 788,261 $ 534,733
FINLAND - 2.67%
11,000 Nokia Corp ADR - (Communications) $ 497,589 $ 1,713,250
FRANCE - 13.47%
11,000 Axa UAP - (Insurance) $ 1,097,118 $ 1,461,288
4,000 Canal Plus - (Media - Broadcasting & Publishing) 780,242 1,174,829
18,000 Groupe Danone ADR - (Beverages, Food & Tobacco) 558,000 897,750
19,700 ST Microelectronics NV - (Electronics) 1,461,911 1,959,589
7,500 Suez Lyonnaise des Eaux - (Industrial - Diversified) 1,393,395 1,390,647
25,000 Thomson CSF - (Aerospace & Defense) 1,000,150 765,370
8,000 Total SA - Series B - (Oil & Gas) 922,569 987,462
------------ --------------
$ 7,213,385 $ 8,636,935
GERMANY - 4.85%
3,088 Allianz AG - (Insurance) $ 696,022 $ 942,044
10,000 Fresenius Medical Care AG - (Healthcare Providers) 684,438 605,805
15,000 Metro AG - (Retailers) 754,098 940,674
10,000 Sixt AG - (Transportation) 676,808 616,623
------------ --------------
$ 2,811,366 $ 3,105,146
</TABLE>
81
<PAGE>
International Equity Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
GREAT BRITAIN - 17.25%
145,000 Amvescap PLC - (Financial Services) $ 971,329 $ 1,466,472
10,000 Arm Holdings PLC ADR - (Electronics) 381,771 1,325,000
42,857 Bass PLC - (Beverages, Food & Tobacco) 584,974 582,187
73,000 Boots Company PLC - (Retailers) 1,057,823 1,054,120
77,000 British Aerospace PLC - (Aerospace & Defense) 670,692 514,606
40,000 British Petroleum Company PLC - (Oil & Gas) 568,485 681,884
10,000 Glaxo Holdings PLC ADR - (Pharmaceuticals) 442,646 669,375
95,000 Select Appointments Holdings PLC - (Commercial Services) 921,927 1,271,347
13,000 Smithkline Beecham PLC ADR - (Pharmaceuticals) 599,937 929,500
185,000 TeleWest Communications PLC - (Media - Broadcasting &
Publishing) 656,378 802,623
95,000 Vodafone Group PLC - (Communications) 550,515 1,765,167
------------ --------------
$ 7,406,477 $ 11,062,281
GREECE - 0.97%
25,555 Hellenic Telecommunication Organization SA (OTE) -
(Communications) $ 644,073 $ 621,135
HONG KONG - 1.90%
15,000 HSBC Holdings PLC - (Financial Services) $ 378,637 $ 470,354
95,000 Hutchison Whampoa Ltd - (Industrial - Diversified) 556,213 747,793
------------ --------------
$ 934,850 $ 1,218,147
HUNGARY - 1.46%
35,000 Matav RT ADR - (Media - Broadcasting & Publishing) $ 705,447 $ 936,250
IRELAND - 3.21%
14,000 Elan Corporation PLC - (Pharmaceuticals)+ $ 732,287 $ 991,551
82,400 Ryanair Holdings PLC - (Airlines)+ 461,979 661,606
10,000 Ryanair Holdings PLC ADR - (Airlines)+ 250,000 407,500
------------ --------------
$ 1,444,266 $ 2,060,657
</TABLE>
82
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
ISRAEL - 1.15%
35,000 Koor Industries Limited ADR - (Communications) $ 692,105 $ 739,375
ITALY - 3.65%
118,000 ENI SpA - (Oil & Gas) $ 748,368 $ 753,147
40,000 San Paolo - IMI SpA - (Banking) 587,229 651,240
9,000 Telecom Italia SpA ADR - (Communications) 599,640 939,375
------------ --------------
$ 1,935,237 $ 2,343,762
JAPAN - 15.01%
24,000 Canon Incorporated - (Electronics) $ 705,731 $ 594,094
26,000 Honda Motor Company Limited - (Automotive) 950,579 1,175,179
61,000 Marui Company Limited - (Retailers) 985,630 1,038,440
100 Nippon Telegraph & Telephone Corporation -
(Communications) 884,800 980,019
10,000 Secom Company Limited - (Commercial Services) 683,287 947,915
10,000 Seven Eleven Japan Company Limited - (Retailers) 711,384 777,257
12,000 Sony Corporation - (Electronics) 1,092,645 1,110,126
20,000 Takeda Chemical Industries - (Pharmaceuticals) 727,520 775,568
13,000 Takefuji Corporation - (Financial Services) 922,364 999,450
48,000 The Sumitomo Bank Limited - (Banking) 672,510 650,059
27,000 Tokyo Electric Power Company Incorporated - (Electric
Utilities) 628,475 581,675
------------ --------------
$ 8,964,925 $ 9,629,782
MEXICO - 1.98%
34,000 Grupo Elektra S.A. de CV GDR - (Retailers) $ 560,548 $ 221,000
22,000 Panamerican Beverages Incorporated Class A - (Beverages,
Food & Tobacco) 825,126 386,375
200,000 Telefonos de Mexico SA - (Communications) 656,676 660,358
------------ --------------
$ 2,042,350 $ 1,267,733
</TABLE>
83
<PAGE>
International Equity Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
NETHERLANDS - 8.94%
12,000 Equant NV - (Computer Software & Processing)+ $ 471,340 $ 552,000
8,000 Equant NV - (Computer Software & Processing) 357,982 602,000
30,000 Koninklijke Ahold NV - (Food Retailers) 838,424 1,152,111
16,000 Koninklijke (Royal) Philips Electronics NV - (Electronics) 1,266,411 1,319,000
13,000 Royal Dutch Petroleum - (Oil & Gas) 706,965 679,250
20,000 Unilever NV - (Industrial - Diversified) 1,250,118 1,392,270
15,000 United Pan-Europe Communication - (Electronics) 607,516 589,037
------------ --------------
$ 5,027,416 $ 5,733,668
NEW ZEALAND - 0.27%
81,900 Tranz Rail Holdings Limited - (Transportation) $ 456,063 $ 175,561
NORWAY - 0.57%
24,000 Petroleum Geo-Services ASA - (Oil & Gas)+ $ 767,927 $ 367,054
PORTUGAL - 0.77%
11,000 Portugal Telecom SA - (Communications) $ 496,891 $ 493,721
SINGAPORE - 2.43%
120,000 Development Bank of Singapore Limited Class F (Foreign) -
(Financial Services) $ 711,755 $ 910,620
58,800 Singapore Press Holdings Limited - (Media - Broadcasting &
Publishing) $ 669,957 $ 650,569
------------ --------------
$ 1,381,712 $ 1,561,189
SPAIN - 4.18%
32,000 Banco Bilbao Vizcaya SA - (Banking) $ 324,012 $ 477,722
30,000 Banco Santander SA - (Banking) 455,610 616,623
23,000 Superdiplo SA - (Retailers) 597,556 548,137
24,480 Telefonica de Espana - (Communications) 758,704 1,040,491
------------ --------------
$ 2,135,882 $ 2,682,973
</TABLE>
84
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) International Equity Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
SWEDEN - 2.26%
30,000 OM Gruppen AB - (Financial Services) $ 705,108 $ 376,646
45,000 Telefonaktiebolaget LM Ericsson ADR - (Communications) 1,020,716 1,071,563
------------ --------------
$ 1,725,824 $ 1,448,209
SWITZERLAND - 5.70%
300 Nestle SA (Registered)- (Beverages, Food & Tobacco) $ 446,648 $ 547,026
800 Novartis AG - (Registered) - (Pharmaceuticals) 1,259,736 1,302,502
2,000 Swisscom AG - (Communications) 545,223 783,887
3,230 UBS AG - (Banking) 874,105 1,018,477
------------ --------------
$ 3,125,712 $ 3,651,892
TOTAL COMMON STOCKS $ 52,930,626 $ 61,746,525
PREFERRED STOCKS - 0.68%
3,511,630 Telecommunicacoes de Sao Paulo SA - (Communications) $ 714,242 $ 432,043
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $53,644,868) 96.94% $ 62,178,568
Other Assets and Liabilities, Net 3.06 1,964,343
------ --------------
TOTAL NET ASSETS 100.00% $ 64,142,911
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 11,866,167
Gross Unrealized Depreciation (3,332,467)
--------------
NET UNREALIZED APPRECIATION $ 8,533,700
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
85
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 97.37%
ADVERTISING - 0.99%
16,600 Lamar Advertising Company+ $ 550,025 $ 563,363
13,150 True North Communications Incorporated 366,490 369,844
------------ --------------
$ 916,515 $ 933,207
BANK & FINANCE - 0.66%
18,600 Hubco Incorporated $ 515,906 $ 624,263
CAPITAL GOODS - 3.23%
33,300 Celestica Incorporated+ $ 639,683 $ 1,080,169
21,200 Cymer Incorporated+ 538,526 421,350
18,000 Microchip Technology Incorporated+ 632,008 623,250
35,700 Nova Corporation 1,085,016 937,125
------------ --------------
$ 2,895,233 $ 3,061,894
COMPUTER SOFTWARE - 1.79%
12,200 Bindview Development Corporation+ $ 146,550 $ 379,725
32,300 Hyperion Solutions Corporation+ 557,585 468,350
14,000 Micromuse Incorporated+ 450,258 644,000
19,145 Omega Research Incorporated+ 273,693 204,612
------------ --------------
$ 1,428,086 $ 1,696,687
COMPUTER SYSTEMS - 4.82%
20,750 Axent Technologies Incorporated+ $ 589,492 $ 499,297
17,850 Globix Corporation+ 660,900 666,028
20,100 International Integration Incorporated+ 357,725 643,200
26,950 Maxwell Technologies Incorporated+ 778,032 629,956
13,800 Verisign Incorporated+ 1,029,008 2,125,200
------------ --------------
$ 3,415,157 $ 4,563,681
</TABLE>
86
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER-DISCRETIONARY - 1.04%
20,350 CKE Restaurants Incorporated $ 527,555 $ 401,913
14,200 USWEB Corporation+ 518,772 585,750
------------ --------------
$ 1,046,327 $ 987,663
ELECTRONICS - 8.78%
28,600 Applied Micro Circuits Corporation+ $ 749,176 $ 1,222,650
33,050 DII Group Incorporated+ 759,602 966,713
19,500 Galileo Technology Limited+ 521,923 570,375
16,550 L-3 Communications Holdings Incorporated+ 445,765 765,438
12,500 Level One Communications Incorporated+ 611,725 607,813
14,600 Novellus Systems Incorporated+ 948,892 804,825
11,650 PMC - Sierra Incorporated+ 598,717 829,334
19,150 Power Integrations Incorporated+ 257,169 608,013
9,817 Qlogic Corporation+ 588,296 658,966
20,000 Sanmina Corporation+ 1,112,678 1,275,000
------------ --------------
$ 6,593,943 $ 8,309,127
ENERGY & RELATED - 3.37%
49,800 BJ Services Company+ $ 903,468 $ 1,167,188
89,950 Ensco International Incorporated 1,066,566 1,197,459
6,700 Smith International Incorporated+ 198,966 268,000
39,400 Veritas DGC Incorporated+ 722,253 558,988
------------ --------------
$ 2,891,253 $ 3,191,635
ENTERTAINMENT & LEISURE - 0.89%
17,700 Electronic Arts Incorporated+ $ 777,168 $ 840,750
FINANCE & RELATED - 11.22%
55,600 Americredit Corporation+ $ 767,896 $ 729,750
12,400 CNB Bancshares Incorporated 552,596 499,100
48,350 Commercial Fed Corporation 1,094,931 1,121,116
44,050 Community First Bankshares Incorporated 1,064,949 881,000
36,500 E*Trade Group Incorporated+ 1,675,390 2,128,406
</TABLE>
87
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
54,050 FirstFed Financial Corporation+ $ 1,293,373 $ 868,178
24,400 Healthcare Financial Partners Incorporated+ 766,975 637,450
31,850 Metris Companies Incorporated 1,238,133 1,285,944
13,325 Reinsurance Group America Incorporated 546,026 567,145
10,700 SEI Investments Company 809,936 989,750
21,150 Silicon Valley Bankshares 471,794 437,541
23,400 Waddle & Reed Financial 535,213 479,700
------------ --------------
$ 10,817,212 $ 10,625,080
FOOD & RELATED - 0.92%
34,650 American Italian Pasta Company+ $ 1,207,191 $ 866,250
GENERAL BUSINESS & RELATED - 10.61%
40,550 Avis Rent A Car Incorporated+ $ 1,263,979 $ 1,122,728
72,250 Convergys Corporation+ 1,054,799 1,237,281
14,200 Devry Incorporated+ 405,705 411,800
31,950 Emmis Broadcasting Corporation Class A+ 1,384,907 1,597,500
18,400 Metzler Group Incorporated+ 693,079 577,300
31,000 National Data Corporation 1,193,380 1,302,000
48,000 Nvidia Corporation+ 977,915 1,014,000
36,000 Parexel International Corporation+ 1,091,075 744,750
46,850 Stewart Enterprises Incorporated Class A 926,059 752,528
23,050 Valley Media Incorporated+ 373,600 524,388
54,150 Veterinary Centers of America Incorporated+ 1,022,950 764,869
------------ --------------
$ 10,387,448 $ 10,049,144
INTERNET SOFTWARE & NETWORK PRODUCTS - 14.01%
7,900 CMG Information Services Incorporated+ $ 284,235 $ 1,446,194
6,550 Covad Communication Group Incorporated+ 134,025 430,663
3,200 Critical Path Incorporated+ 76,800 246,400
11,450 Excite Incorporated+ 622,013 1,603,000
5,200 Infoseek Corporation+ 426,836 384,800
11,450 International Network Services+ 562,525 800,784
7,750 Ivillage Incorporated+ 186,000 778,875
24,450 Legato Systems Incorporated+ 1,102,073 1,262,231
</TABLE>
88
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
5,250 Lycos Incorporated+ $ 196,519 $ 451,828
5,450 Mindspring Enterprises Incorporated+ 507,501 469,041
13,100 Network Appliance Incorporated+ 473,011 663,188
11,500 Priceline.com Incorporated+ 184,000 953,063
25,750 Psinet Incorporated+ 924,977 1,095,984
3,350 Real Networks Incorporated+ 227,339 409,328
4,750 Rowecom Incorporated+ 76,000 207,219
16,550 Verio Incorporated+ 403,789 763,369
11,100 Vignette Corporation+ 225,650 835,275
12,950 Ziff-Davis Incorporated - ZDNET+ 246,050 466,200
------------ --------------
$ 6,859,343 $ 13,267,442
MANUFACTURING PROCESSING - 4.58%
16,000 Applied Power Incorporated Class A $ 542,294 $ 436,000
17,600 Barret Resource Corporation+ 481,472 441,100
33,750 Cambrex Corporation 875,983 746,719
22,600 CSG Systems International Incorporated+ 846,698 891,288
16,040 Dycom Industries Incorporated+ 638,825 697,740
39,050 Ocular Sciences Incorporated+ 1,133,795 1,120,247
------------ --------------
$ 4,519,067 $ 4,333,094
MEDICAL EQUIPMENT & SUPPLIES - 9.73%
45,700 Amerisource Health Corporation Class A+ $ 1,331,337 $ 1,562,369
36,050 Covance Incorporated+ 874,158 903,503
26,250 Henry Schein Incorporated+ 1,033,642 662,813
43,700 Invitrogen Corporation+ 649,863 562,638
30,750 Jones Pharma Incorporated 1,107,035 1,068,563
34,425 Medicis Pharmaceutical Corporation+ 1,020,599 1,032,750
15,900 MedImmune Incorporated+ 447,628 941,081
44,150 Pharmacyclics Incorporated+ 1,008,944 728,475
7,000 Sepracor Incorporated+ 403,303 785,750
32,500 Serologicals Corporation+ 743,520 440,781
4,900 VISX Incorporated+ 488,988 527,056
------------ --------------
$ 9,109,017 $ 9,215,779
</TABLE>
89
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS - 2.28%
31,900 Agouron Pharmaceuticals Incorporated+ $ 1,859,906 $ 1,804,344
16,100 Coulter Pharmaceutical Incorporated+ 401,250 350,175
------------ --------------
$ 2,261,156 $ 2,154,519
RETAIL & RELATED - 10.44%
26,101 99 Cents Only Stores+ $ 834,877 $ 1,107,661
13,100 American Eagle Outfitters Incorporated+ 768,963 939,105
31,700 Ames Department Stores Incorporated+ 747,300 1,176,863
38,500 BJ's Wholesale Club Incorporated+ 831,920 1,017,844
23,500 Claire's Stores Incorporated 658,212 707,938
28,050 Cost Plus Incorporated+ 565,275 823,969
31,900 CSK Auto Parts Corporation+ 766,176 955,005
73,400 Just For Feet Incorporated+ 1,201,753 917,500
65,775 Regis Corporation 1,322,619 1,751,259
14,192 Zale Corporation+ 439,324 485,189
------------ --------------
$ 8,136,419 $ 9,882,333
SHELTER & RELATED - 1.45%
29,700 Dal-Tile International Incorporated+ $ 253,905 $ 269,155
23,150 Lennar Corporation 569,405 517,980
10,214 Martin Marietta Incorporated 536,930 582,835
------------ --------------
$ 1,360,240 $ 1,369,970
TELECOMMUNICATIONS - 5.41%
17,900 Com21 Incorporated+ $ 482,054 $ 469,875
39,700 ITC Deltacom Incorporated+ 551,147 865,955
13,142 McLeod U.S.A. Incorporated+ 540,050 551,964
10,950 NTL Incorporated+ 875,588 891,055
14,800 Pacific Gateway Exchange Incorporated+ 506,350 491,175
18,000 Vanguard Cellular Systems Incorporated Class A+ 489,567 491,625
</TABLE>
90
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Small Cap Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
19,662 Western Wireless Corporation Class A+ $ 550,559 $ 712,748
17,740 Winstar Communications Incorporated+ 556,712 644,738
------------ --------------
$ 4,552,027 $ 5,119,135
TRANSPORTATION - 0.48%
15,800 Skywest Incorporated $ 490,085 $ 456,225
UTILITIES - 0.67%
11,293 Nextlink Communications Incorporated+ $ 571,224 $ 632,408
------------ --------------
TOTAL COMMON STOCKS $ 80,750,017 $ 92,180,286
</TABLE>
91
<PAGE>
Small Cap Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 5.76%
REPURCHASE AGREEMENTS - 5.76%
$ 2,479,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 2,479,000
1,242,000 HSBC Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.90 04/01/99 1,242,000
1,730,000 JP Morgan Securities Incorporated Repurchase
Agreement - 102% Collateralized by U.S.
Government Securities 4.88 04/01/99 1,730,000
--------------
TOTAL SHORT-TERM INSTRUMENTS $ 5,451,000
(Cost $5,451,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $86,201,017)* (Notes 1 and 3) 103.13% $ 97,631,286
Other Assets and Liabilities, Net (3.13) (2,958,583)
------ --------------
TOTAL NET ASSETS 100.00% $ 94,672,703
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 17,174,755
Gross Unrealized Depreciation (5,744,486)
--------------
NET UNREALIZED APPRECIATION $ 11,430,269
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
92
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS - 100.59%
ADVERTISING - 3.06%
20,000 Interpublic Group Companies Incorporated $ 1,495,900 $ 1,557,500
20,000 Omnicom Group 1,244,950 1,598,750
20,000 Young & Rubicam Incorporated+ 590,000 815,000
------------ --------------
$ 3,330,850 $ 3,971,250
AUTOMOBILE & RELATED - 0.52%
22,000 AutoZone Incorporated+ $ 768,007 $ 668,250
CAPITAL GOODS - 4.05%
35,000 Brightpoint Incorporated+ $ 592,054 $ 206,718
65,000 Diamond Offshore Drilling Incorporated 2,204,218 2,055,625
10,785 Lexmark International Group Incorporated Class A+ 591,762 1,205,224
40,000 Waste Management Incorporated 1,972,328 1,775,000
------------ --------------
$ 5,360,362 $ 5,242,567
COMPUTER SOFTWARE - 6.20%
50,000 BMC Software Incorporated+ $ 2,260,885 $ 1,853,125
77,000 Compuware Corporation+ 2,590,000 1,838,375
75,000 IMR Global Corporation+ 1,546,068 1,331,250
25,000 Keane Incorporated + 1,059,972 532,812
20,000 Micromuse Incorporated+ 719,587 920,000
20,000 Siebel Systems Incorporated+ 522,500 950,000
50,000 Vantive Corporation+ 637,084 603,125
------------ --------------
$ 9,336,096 $ 8,028,687
COMPUTER SYSTEMS - 11.41%
75,000 Cadence Design System Incorporated+ $ 2,269,111 $ 1,931,250
30,000 Ceridian Corporation 1,128,400 1,096,874
30,000 Computer Sciences Corporation+ 2,120,956 1,655,625
24,750 Globix Corporation+ 915,750 923,484
77,500 International Integration Incorporated+ 1,406,531 2,480,000
45,000 Metamor Worldwide Incorporated+ 1,153,438 630,000
</TABLE>
93
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
65,000 Seagate Technology Incorporated+ $ 2,009,267 $ 1,921,562
10,000 Tandy Corporation 562,335 638,125
17,500 Verisign Incorporated+ 1,125,391 2,695,000
10,000 Veritas Software Corporation+ 579,063 807,500
------------ --------------
$ 13,270,242 $ 14,779,420
CONSUMER - BASIC - 1.39%
30,000 Corning Incorporated $ 1,447,337 $ 1,800,000
CONSUMER-DISCRETIONARY - 1.86%
80,000 Republic Services Incorporated Class A+ $ 1,455,094 $ 1,295,000
55,000 Servicemaster Company 1,220,164 1,117,187
------------ --------------
$ 2,675,258 $ 2,412,187
ELECTRONICS - 8.42%
25,000 Analog Devices Incorporated+ $ 756,500 $ 743,750
10,000 Broadcom Corporation Class A+ 643,133 616,250
25,000 Etec Systems Incorporated+ 1,287,723 735,938
50,000 Linear Technology Corporation 2,454,125 2,562,500
10,000 Novellus Systems Incorporated+ 675,000 551,250
30,000 Sanmina Corporation+ 1,715,172 1,912,500
26,000 Solectron Corporation+ 1,088,599 1,262,625
24,000 Teradyne Incorporated+ 969,535 1,309,500
30,000 Xilinx Incorporated+ 1,160,750 1,216,875
------------ --------------
$ 10,750,537 $ 10,911,188
ENERGY & RELATED - 0.35%
25,500 Anadigics Incorporated+ $ 377,656 $ 449,438
ENTERTAINMENT & LEISURE - 1.31%
35,000 Galileo International Incorporated $ 1,312,888 $ 1,693,125
1,230 Iwerks Entertainment Incorporated Rights + 0 1,230
------------ --------------
$ 1,312,888 $ 1,694,355
</TABLE>
94
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCE & RELATED - 16.47%
45,000 Charles Schwab Corporation $ 2,944,932 $ 4,325,625
30,000 City National Corporation 1,120,091 926,250
15,000 Comerica Incorporated 977,775 936,563
10,000 E*Trade Group Incorporated+ 448,925 583,125
20,000 Firstar Corporation 1,482,450 1,790,000
40,000 Metris Companies Incorporated 1,483,423 1,615,000
15,000 Northern Trust Corporation 1,127,500 1,332,188
40,000 Profit Recovery Group Incorporated+ 1,123,969 1,580,000
25,000 Providian Financial Corporation 1,647,494 2,750,000
25,000 SLM Holding Corporation 1,068,375 1,043,750
30,000 T. Rowe Price & Associates 1,069,688 1,031,250
9,000 U.S. Trust Corporation 667,625 667,688
70,000 Waddle & Reed Financial 1,542,431 1,435,000
20,000 Zions Bancorporation 950,625 1,330,000
------------ --------------
$ 17,655,303 $ 21,346,439
FOOD & RELATED - 1.89%
12,000 Hershey Foods Corporation $ 704,970 $ 672,000
40,000 Starbucks Corporation+ 975,313 1,122,500
14,000 U.S. Food Service+ 610,065 651,000
------------ --------------
$ 2,290,348 $ 2,445,500
GENERAL BUSINESS & RELATED - 4.56%
75,000 Administaff Incorporated+ $ 2,414,556 $ 975,000
10,000 Allied Waste Industries Incorporated+ 150,600 144,375
30,000 Capstar Broadcasting Corporation Class A+ 485,550 688,125
14,000 Chancelor Media Corporation+ 668,066 659,750
100,000 Convergys Corporation+ 1,664,392 1,712,500
20,000 Devry Incorporated+ 547,876 580,000
10,000 Uniphase Corporation+ 580,625 1,151,250
------------ --------------
$ 6,511,665 $ 5,911,000
</TABLE>
95
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTHCARE - 3.24%
37,000 IMS Health Incorporated $ 1,329,320 $ 1,225,625
45,000 McKesson HBOC Incorporated 3,305,890 2,970,000
------------ --------------
$ 4,635,210 $ 4,195,625
INTERNET SOFTWARE & NETWORK PRODUCTS - 8.78%
12,000 Amazon.com Incorporated+ $ 1,448,750 $ 2,066,250
30,000 Ascend Communication Incorporated+ 2,346,250 2,510,625
9,000 Broadcast.com. Incorporated+ 638,938 1,063,688
7,000 Excite Incorporated+ 647,072 980,000
10,000 Network Appliance Incorporated+ 478,530 506,250
15,000 Networks Associates Incorporated+ 710,625 460,313
22,500 Yahoo Incorporated+ 2,889,225 3,788,438
------------ --------------
$ 9,159,390 $ 11,375,564
MANUFACTURING PROCESSING - 1.43%
50,000 Digital Microwave Corporation+ $ 485,313 $ 418,750
55,000 Weatherford International Incorporated+ 1,172,205 1,436,875
------------ --------------
$ 1,657,518 $ 1,855,625
MEDICAL EQUIPMENT & SUPPLIES - 5.93%
36,000 Becton Dickinson & Company $ 1,328,036 $ 1,379,250
15,000 Biogen Incorporated+ 1,414,375 1,714,687
17,500 Centocor Incorporated+ 687,957 647,500
25,000 Guidant Corporation+ 1,070,262 1,512,500
45,000 Henry Schein Incorporated+ 1,729,700 1,136,250
15,000 MedImmune Incorporated+ 794,250 887,813
30,000 Serologicals Corporation+ 756,562 406,875
------------ --------------
$ 7,781,142 $ 7,684,875
PHARMACEUTICALS - 1.43%
28,000 Cardinal Health Incorporated $ 1,928,918 $ 1,848,000
</TABLE>
96
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED) Strategic Growth Fund
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<C> <S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL & RELATED - 12.23%
11,500 99 Cents Only Stores+ $ 473,470 $ 488,030
10,000 Circuit City Stores Incorporated 521,635 766,250
40,000 Dollar General Corporation 1,049,992 1,360,000
135,000 Office Depot Incorporated+ 4,230,260 4,969,688
25,000 Rite Aid Corporation 1,209,625 625,000
30,000 Ross Stores Incorporated 1,171,250 1,314,375
50,000 School Specialty Incorporated+ 1,019,312 978,125
85,000 Staples Incorporated+ 2,505,938 2,794,375
75,000 TJX Companies Incorporated 2,049,605 2,550,000
------------ --------------
$ 14,231,087 $ 15,845,843
SHELTER & RELATED - 0.66%
15,000 Martin Mareitta Incorporated $ 776,607 $ 855,938
TELECOMMUNICATIONS - 3.13%
50,000 Com21 Incorporated+ $ 1,382,110 $ 1,312,500
40,000 Frontier Corporation 1,286,588 2,075,000
16,000 McLeod U.S.A. Incorporated+ 658,320 672,000
------------ --------------
$ 3,327,018 $ 4,059,500
TRANSPORTATION - 0.70%
16,000 Kansas City Southern Industries Incorporated $ 780,835 $ 912,000
UTILITIES - 1.57%
15,000 AES Corporation+ $ 615,688 $ 558,750
13,600 Nextlink Commnications Incorporated+ 680,433 761,600
25,000 Viatel Incorporated+ 513,985 712,500
------------ --------------
$ 1,810,106 $ 2,032,850
TOTAL COMMON STOCKS $121,174,380 $ 130,326,101
</TABLE>
97
<PAGE>
Strategic Growth Fund PORTFOLIO OF INVESTMENTS - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<C> <S> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS - 2.65%
REPURCHASE AGREEMENTS - 2.65%
$ 3,440,000 Goldman Sachs Pooled Repurchase Agreement -
102% Collateralized by U.S. Government
Securities 4.90 04/01/99 $ 3,440,000
(Cost $3,440,000)
TOTAL INVESTMENTS IN SECURITIES
</TABLE>
<TABLE>
<C> <S> <C> <C>
(Cost $124,614,380)* (Notes 1 and 3) 103.24% $ 133,766,101
Other Assets and Liabilities, Net (3.24) (4,200,047)
------ --------------
TOTAL NET ASSETS 100.00% $ 129,566,054
------ --------------
------ --------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL
STATEMENT PURPOSES AND NET UNREALIZED APPRECIATION CONSISTS OF:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $ 19,685,389
Gross Unrealized Depreciation (10,533,668)
--------------
NET UNREALIZED APPRECIATION $ 9,151,721
--------------
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
98
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
99
<PAGE>
Equity Funds STATEMENT OF ASSETS AND LIABILITIES - MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED
EQUITY
BALANCED INCOME
FUND FUND
<S> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $76,416,180 $208,338,304
Cash 6,945 6,681
Cash denominated in foreign currencies
(cost $1,465) 0 0
RECEIVABLES:
Dividends and interest 423,111 891,309
Recoverable foreign withholding taxes 0 0
Fund shares sold 230,161 699,062
Investment securities sold 2,977,842 1,275,457
Organization expenses, net of
amortization 22,075 3,278
Prepaid expenses 9,180 580
TOTAL ASSETS 80,085,494 211,214,671
LIABILITIES
Variation margin on futures contracts 0 0
Payables:
Investment securities purchased 2,284,715 0
Distribution to shareholders 494,996 1,087,148
Fund shares redeemed 3,022 407,796
Due to distributor (Note 2) 58,802 132,870
Due to adviser (Note 2) 70,824 186,057
Other 97,023 101,769
TOTAL LIABILITIES 3,009,382 1,915,640
TOTAL NET ASSETS $77,076,112 $209,299,031
NET ASSETS CONSIST OF:
Paid-in capital $61,382,880 $174,179,747
Undistributed net investment income
(loss) 0 0
Undistributed net realized gain (loss)
on investments and foreign currency
transactions 4,658,046 6,896,751
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 11,035,186 28,222,533
Net unrealized appreciation
(depreciation) of futures 0 0
TOTAL NET ASSETS $77,076,112 $209,299,031
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $30,928,619 $151,628,310
Shares outstanding - Class A 2,639,920 9,653,331
Net asset value per share - Class A $ 11.72 $ 15.71
Maximum offering price per share - Class
A $ 12.37(1) $ 16.58(1)
Net assets - Class B $11,160,996 $ 57,670,721
Shares outstanding - Class B 1,053,331 3,918,517
Net asset value and offering price per
share - Class B $ 10.60 $ 14.72
Net assets - Class C N/A N/A
Shares outstanding - Class C N/A N/A
Net asset value and offering price per
share - Class C N/A N/A
Net assets - Class O N/A N/A
Shares outstanding - Class O N/A N/A
Net asset value and offering price per
share - Class O N/A N/A
Net assets - Institutional Class $34,986,497 N/A
Shares outstanding - Institutional Class 2,996,285 N/A
Net asset value and offering price per
share - Institutional Class $ 11.68 N/A
INVESTMENT AT COST (NOTE 3) $65,380,994 $180,115,771
- -------------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.75 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/95.5 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
100
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES - MARCH 31, 1999 (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY EQUITY INTERNATIONAL
INDEX VALUE GROWTH EQUITY SMALL CAP
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $667,163,396 $270,773,172 $428,752,800 $62,178,568 $97,631,286
Cash 5,352 5,828 5,359 976,733 7,009
Cash denominated in foreign currencies
(cost $1,465) 0 0 0 1,465 0
RECEIVABLES:
Dividends and interest 696,225 405,999 477,950 130,174 4,761
Recoverable foreign withholding taxes 0 0 0 45,638 0
Fund shares sold 1,587,891 184,361 23,015 1,040,354 10,465
Investment securities sold 0 8,484,293 1,724,730 0 1,439,861
Organization expenses, net of
amortization 0 20,760 2,894 34,139 25,688
Prepaid expenses 44,108 17,391 1,244 108,933 7,525
TOTAL ASSETS 669,496,972 279,891,804 430,987,992 64,516,004 99,126,595
LIABILITIES
Variation margin on futures contracts 100,800 0 0 0 0
Payables:
Investment securities purchased 0 7,489,331 2,175,740 0 3,706,551
Distribution to shareholders 937,528 717,528 71,856 0
Fund shares redeemed 428,607 114,438 355,532 109,605 531,468
Due to distributor (Note 2) 48,895 103,756 206,555 176,822 38,953
Due to adviser (Note 2) 364,008 209,228 351,822 55,966 61,878
Other 53,487 111,422 102,012 30,700 115,042
TOTAL LIABILITIES 1,933,325 8,745,703 3,263,517 373,093 4,453,892
TOTAL NET ASSETS $667,563,647 $271,146,101 $427,724,475 $64,142,911 $94,672,703
NET ASSETS CONSIST OF:
Paid-in capital $223,563,434 $196,896,149 $288,786,528 $55,933,752 $105,108,385
Undistributed net investment income
(loss) (9,910) 0 (91,368) (45,804) (471,142)
Undistributed net realized gain (loss)
on investments and foreign currency
transactions 17,416,713 12,500,033 15,385,993 (268,431) (21,394,809)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 426,503,173 61,749,919 123,643,322 8,523,394 11,430,269
Net unrealized appreciation
(depreciation) of futures 90,237 0 0 0 0
TOTAL NET ASSETS $667,563,647 $271,146,101 $427,724,475 $64,142,911 $94,672,703
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A $625,041,119 $ 39,437,245 $348,007,942 $28,724,945 $11,514,279
Shares outstanding - Class A 7,973,125 2,611,899 15,189,271 2,485,074 575,900
Net asset value per share - Class A $ 78.39 $ 15.10 $ 22.91 $ 11.56 $ 19.99
Maximum offering price per share - Class
A $ 82.08(2) $ 15.94(1) $ 24.18(1) $ 12.20(1) $ 21.10(1)
Net assets - Class B $ 42,522,427 $ 70,169,852 $ 61,590,222 $35,081,983 $14,790,730
Shares outstanding - Class B 541,902 5,673,151 3,800,083 3,064,552 752,095
Net asset value and offering price per
share - Class B $ 78.47 $ 12.37 $ 16.21 $ 11.45 $ 19.67
Net assets - Class C N/A $ 1,098,751 N/A $ 335,983 $ 1,320,203
Shares outstanding - Class C N/A 88,857 N/A $ 29,352 67,162
Net asset value and offering price per
share - Class C N/A $ 12.37 N/A $ 11.45 $ 19.66
Net assets - Class O $ 101 N/A N/A N/A N/A
Shares outstanding - Class O $ 1 N/A N/A N/A N/A
Net asset value and offering price per
share - Class O $ 78.54 N/A N/A N/A N/A
Net assets - Institutional Class N/A $160,440,253 $ 18,126,311 N/A $67,047,491
Shares outstanding - Institutional Class N/A 10,631,132 674,702 N/A 3,314,181
Net asset value and offering price per
share - Institutional Class N/A $ 15.09 $ 26.87 N/A $ 20.23
INVESTMENT AT COST (NOTE 3) $240,660,223 $209,023,253 $305,109,478 $53,644,868 $86,201,017
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROWTH
FUND
<S> <C>
ASSETS
INVESTMENTS:
In securities, at market value (see
cost below) $133,766,101
Cash 6,826
Cash denominated in foreign currencies
(cost $1,465) 0
RECEIVABLES:
Dividends and interest 36,368
Recoverable foreign withholding taxes 0
Fund shares sold 2,334
Investment securities sold 0
Organization expenses, net of
amortization 0
Prepaid expenses 9,695
TOTAL ASSETS 133,821,324
LIABILITIES
Variation margin on futures contracts 0
Payables:
Investment securities purchased 41,705
Distribution to shareholders
Fund shares redeemed 3,823,530
Due to distributor (Note 2) 131,473
Due to adviser (Note 2) 102,867
Other 155,695
TOTAL LIABILITIES 4,255,270
TOTAL NET ASSETS $129,566,054
NET ASSETS CONSIST OF:
Paid-in capital $127,149,890
Undistributed net investment income
(loss) (362,959)
Undistributed net realized gain (loss)
on investments and foreign currency
transactions (6,372,598)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and
liabilities in foreign currencies 9,151,721
Net unrealized appreciation
(depreciation) of futures 0
TOTAL NET ASSETS $129,566,054
COMPUTATION OF NET ASSET VALUE AND OFFER
Net assets - Class A $ 93,152,168
Shares outstanding - Class A 4,513,841
Net asset value per share - Class A $ 20.64
Maximum offering price per share - Class
A $ 21.78(1)
Net assets - Class B $ 21,555,522
Shares outstanding - Class B 864,244
Net asset value and offering price per
share - Class B $ 24.94
Net assets - Class C $ 14,858,364
Shares outstanding - Class C 596,275
Net asset value and offering price per
share - Class C $ 24.92
Net assets - Class O N/A
Shares outstanding - Class O N/A
Net asset value and offering price per
share - Class O N/A
Net assets - Institutional Class N/A
Shares outstanding - Institutional Class N/A
Net asset value and offering price per
share - Institutional Class N/A
INVESTMENT AT COST (NOTE 3) $124,614,380
- ---------------------------------------------------------------------
</TABLE>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.75 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/95.5 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE THE OFFERING PRICE IS REDUCED.
The accompanying notes are an integral part of these financial statements.
101
<PAGE>
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS
Equity Funds ENDED MARCH 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED
EQUITY
BALANCED INCOME
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax
withholding of $19,121 for the
International Equity Fund) $ 523,464 $ 3,148,073
Interest 973,059 437,079
TOTAL INVESTMENT INCOME (LOSS) 1,496,523 3,585,152
EXPENSES (NOTE 2)
Advisory fees 233,980 567,693
Administration fees 27,298 79,477
Custody fees 6,512 24,446
Shareholder servicing fees 97,492 340,616
Portfolio accounting fees 35,748 53,372
Transfer agency fees 40,290 158,954
Distribution fees 41,343 214,307
Organization costs 4,518 1,296
Legal and audit fees 47,312 62,863
Registration fees 36,866 28,651
Directors' fees 2,667 504
Shareholder reports 35,387 59,223
Other 3,788 6,463
Total Expenses 613,201 1,597,865
Less:
Waived fees and reimbursed expenses (98,975) (41,788)
NET EXPENSES 514,226 1,556,077
NET INVESTMENT INCOME (LOSS) 982,297 2,029,075
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments 4,341,516 (1,571,686)
Foreign currency transactions 0 0
Net change in unrealized appreciation
(depreciation) of:
Investments 621,352 15,156,063
Translation of assets and
liabilities in foreign currencies 0 0
Futures 0 0
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS 4,962,868 13,584,377
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,945,165 $15,613,452
- -----------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
102
<PAGE>
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS
ENDED MARCH 31, 1999 (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY EQUITY SMALL
INDEX VALUE GROWTH INTERNATIONAL CAP
FUND FUND FUND EQUITY FUND
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax
withholding of $19,121 for the
International Equity Fund) $ 4,124,060 $ 3,074,994 $ 2,251,974 $ 259,738 $ 61,433
Interest 104,340 126,961 165,168 82,682 100,231
TOTAL INVESTMENT INCOME (LOSS) 4,228,400 3,201,955 2,417,142 342,420 161,664
EXPENSES (NOTE 2)
Advisory fees 770,747 734,176 946,201 309,338 278,410
Administration fees 215,810 102,785 143,770 30,510 32,481
Custody fees 0 24,522 34,301 44,876 23,206
Shareholder servicing fees 770,746 367,088 612,026 76,275 116,003
Portfolio accounting fees 92,325 60,031 71,742 33,737 38,973
Transfer agency fees 431,618 136,671 280,932 42,714 38,612
Distribution fees 104,754 290,120 197,830 142,022 63,983
Organization costs 0 4,249 1,347 9,972 5,573
Legal and audit fees 38,754 80,464 92,551 30,914 2,083
Registration fees 8,625 84,832 38,637 19,945 43,922
Directors' fees 1,606 504 75 2,293 289
Shareholder reports 20,198 113,383 33,447 14,959 16,178
Other 26,650 28,536 4,640 1,496 1,528
Total Expenses 2,481,833 2,027,361 2,457,499 759,051 661,241
Less:
Waived fees and reimbursed expenses (188,735) (149,145) (16,115) (113,012) (171,032)
NET EXPENSES 2,293,098 1,878,216 2,441,384 646,039 490,209
NET INVESTMENT INCOME (LOSS) 1,935,302 1,323,739 (24,242) (303,619) (328,545)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments 22,232,298 11,281,532 16,175,988 986,504 (6,460,720)
Foreign currency transactions 0 0 0 (68,487) 0
Net change in unrealized appreciation
(depreciation) of:
Investments 117,613,983 16,114,337 89,613,925 11,730,367 25,241,661
Translation of assets and
liabilities in foreign currencies 0 0 0 (14,997) 0
Futures 171,987 0 0 0 0
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS 140,018,268 27,395,869 105,789,913 12,633,387 18,655,981
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $141,953,570 $28,719,608 $105,765,671 $12,329,768 $18,327,436
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROWTH
FUND
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign tax
withholding of $19,121 for the
International Equity Fund) $ 165,151
Interest 89,314
TOTAL INVESTMENT INCOME (LOSS) 254,465
EXPENSES (NOTE 2)
Advisory fees 339,920
Administration fees 47,589
Custody fees 26,811
Shareholder servicing fees 169,959
Portfolio accounting fees 44,261
Transfer agency fees 95,177
Distribution fees 193,833
Organization costs 0
Legal and audit fees 44,025
Registration fees 28,363
Directors' fees 289
Shareholder reports 95,130
Other 4,301
Total Expenses 1,089,658
Less:
Waived fees and reimbursed expenses (77,863)
NET EXPENSES 1,011,795
NET INVESTMENT INCOME (LOSS) (757,330)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments 5,986,923
Foreign currency transactions 0
Net change in unrealized appreciation
(depreciation) of:
Investments 24,663,811
Translation of assets and
liabilities in foreign currencies 0
Futures 0
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS 30,650,734
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $29,893,404
- -------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
103
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND
-----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 982,297 $ 1,194,336 $ 2,754,974
Net realized gain (loss) on sale of
investments and foreign currency
transactions 4,341,516 1,325,963 12,381,862
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 621,352 (8,868,973) 7,449,221
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 5,945,165 (6,348,674) 22,586,057
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (401,037) (446,512) (995,417)
CLASS B (105,011) (104,689) (87,737)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (476,249) (643,135) (1,671,820)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (3,135,558) 0 (3,617,920)
CLASS B (1,117,502) 0 (567,992)
CLASS C N/A N/A N/A
INSTITUTIONAL CLASS (3,675,240) 0 (5,890,499)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 953,171 1,780,827 5,461,758
Reinvestment of dividends - Class A 3,674,330 428,485 4,463,706
Cost of shares redeemed - Class A (3,373,046) (3,594,469) (10,215,448)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 1,254,455 (1,385,157) (289,984)
Proceeds from shares sold - Class B 805,071 2,843,163 8,275,611
Reinvestment of dividends - Class B 1,258,717 83,450 614,957
Cost of shares redeemed - Class B (984,335) (669,280) (357,160)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 1,079,453 2,257,333 8,533,408
Proceeds from shares sold - Class C N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A
Proceeds from shares sold -
Institutional Class 2,880,181 2,656,634 6,665,487
Reinvestment of dividends -
Institutional Class 4,220,497 634,353 7,260,006
Cost of shares redeemed -
Institutional Class (7,215,415) (14,135,771) (23,971,016)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (114,737) (10,844,784) (10,045,523)
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (746,261) (17,515,618) 7,952,573
NET ASSETS:
Beginning net assets 77,822,373 95,337,991 87,385,418
ENDING NET ASSETS $ 77,076,112 $ 77,822,373 $ 95,337,991
- --------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
104
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND EQUITY INDEX FUND
---------------------------------------------- -----------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED MONTHS ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 1998 1999 1998
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 2,029,075 $ 2,116,192 $ 3,656,312 $ 1,935,302 $ 2,692,064
Net realized gain (loss) on sale of
investments and foreign currency
transactions (1,571,686) 10,658,254 26,201,980 22,232,298 11,326,049
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 15,156,063 (49,736,820) 47,022,615 117,613,983 (56,175,420)
Net unrealized appreciation
(depreciation) of futures 0 0 0 171,987 (207,200)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 15,613,452 (36,962,374) 76,880,907 141,953,570 (42,364,507)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (1,633,451) (1,747,341) (3,113,133) (1,946,699) (2,683,558)
CLASS B (395,624) (368,851) (543,179) 0 (8,506)
CLASS C N/A N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A N/A
CLASS O N/A N/A N/A 0(2) N/A
From net realized gain on sale of
investments
CLASS A (16,190,809) 0 (7,465,528) (26,108,859) 0
CLASS B (5,969,417) 0 (2,354,505) (1,095,863) 0
CLASS C N/A N/A N/A N/A N/A
INSTITUTIONAL CLASS N/A N/A N/A N/A N/A
CLASS O N/A N/A N/A 0(2) N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 4,876,433 8,850,203 64,556,264 34,002,061 34,673,947
Reinvestment of dividends - Class A 18,154,165 1,453,903 10,009,274 29,157,249 2,520,476
Cost of shares redeemed - Class A (35,920,239) (34,097,957) (55,531,440) (65,140,981) (53,713,482)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (12,889,641) (23,793,851) 19,034,098 (1,981,671) (16,519,059)
Proceeds from shares sold - Class B 1,101,831 5,932,196 30,400,244 21,848,420 16,483,152
Reinvestment of dividends - Class B 6,399,931 267,182 2,742,890 1,083,119 1,719
Cost of shares redeemed - Class B (8,876,900) (6,463,251) (7,439,195) (2,465,569) (1,324,968)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (1,375,138) (263,873) 25,703,939 20,465,970 15,159,903
Proceeds from shares sold - Class C N/A N/A N/A N/A N/A
Reinvestment of dividends - Class C N/A N/A N/A N/A N/A
Cost of shares redeemed - Class C N/A N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A N/A N/A
Proceeds from shares sold -
Institutional Class N/A N/A N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A 100(2) N/A
Reinvestment of dividends - Class O N/A N/A N/A 0(2) N/A
Cost of shares redeemed - Class O N/A N/A N/A 0(2) N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A 100(2) N/A
INCREASE (DECREASE) IN NET ASSETS (22,840,628) (63,136,290) 108,142,599 131,286,548 (46,415,727)
NET ASSETS:
Beginning net assets 232,139,659 295,275,949 187,133,350 536,277,099 582,692,826
ENDING NET ASSETS $209,299,031 $232,139,659 $295,275,949 $667,563,647 $536,277,099
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE
YEAR ENDED
MARCH 31,
1998
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 3,987,574
Net realized gain (loss) on sale of
investments and foreign currency
transactions 20,385,976
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 162,925,340
Net unrealized appreciation
(depreciation) of futures 125,450
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 187,424,340
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (3,987,950)
CLASS B 0(1)
CLASS C N/A
INSTITUTIONAL CLASS N/A
CLASS O N/A
From net realized gain on sale of
investments
CLASS A (12,945,620)
CLASS B 0(1)
CLASS C N/A
INSTITUTIONAL CLASS N/A
CLASS O N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 72,404,299
Reinvestment of dividends - Class A 16,700,188
Cost of shares redeemed - Class A (87,341,942)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 1,762,545
Proceeds from shares sold - Class B 3,707,259(1)
Reinvestment of dividends - Class B 0(1)
Cost of shares redeemed - Class B (6,364)(1)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 3,700,895(1)
Proceeds from shares sold - Class C N/A
Reinvestment of dividends - Class C N/A
Cost of shares redeemed - Class C N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A
Proceeds from shares sold -
Institutional Class N/A
Reinvestment of dividends -
Institutional Class N/A
Cost of shares redeemed -
Institutional Class N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A
Proceeds from shares sold - Class O N/A
Reinvestment of dividends - Class O N/A
Cost of shares redeemed - Class O N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A
INCREASE (DECREASE) IN NET ASSETS 175,954,210
NET ASSETS:
Beginning net assets 406,738,616
ENDING NET ASSETS $582,692,826
- ------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
105
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY VALUE FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 1998
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ 1,323,739 $ 1,622,343 $ 2,994,304
Net realized gain (loss) on sale of
investments and foreign currency
transactions 11,281,532 (1,310,567) 43,722,211
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 16,114,337 (63,146,441) 49,101,105
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 28,719,608 (62,834,665) 95,817,620
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (223,292) (273,664) (393,180)
CLASS B (134,080) (140,370) (144,346)
CLASS C (2,072) (1,933)(1) N/A
INSTITUTIONAL CLASS (964,295) (1,206,376) (2,611,274)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (3,538,387) 0 (4,313,021)
CLASS B (6,065,329) 0 (4,087,973)
CLASS C (109,507) 0(1) N/A
INSTITUTIONAL CLASS (13,698,449) 0 (22,663,930)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 1,503,114 8,134,009 29,437,145
Reinvestment of dividends - Class A 3,704,359 213,784 4,317,886
Cost of shares redeemed - Class A (10,111,256) (7,270,482) (9,521,581)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (4,903,783) 1,077,311 24,233,450
Proceeds from shares sold - Class B 3,195,722 22,457,036 62,552,854
Reinvestment of dividends - Class B 6,219,813 79,373 4,158,508
Cost of shares redeemed - Class B (13,637,385) (6,080,120) (2,617,789)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (4,221,850) 16,456,289 64,093,573
Proceeds from shares sold - Class C 345,673 1,535,006(1) N/A
Reinvestment of dividends - Class C 95,422 134(1) N/A
Cost of shares redeemed - Class C (602,104) (72,905)(1) N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (161,009) 1,462,235(1) N/A
Proceeds from shares sold -
Institutional Class 8,956,197 9,738,442 22,877,852
Reinvestment of dividends -
Institutional Class 12,514,159 516,248 20,970,848
Cost of shares redeemed -
Institutional Class (29,899,341) (33,188,018) (57,008,149)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS (8,428,985) (22,933,328) (13,159,449)
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (13,731,430) (68,394,501) 136,771,470
NET ASSETS:
Beginning net assets 284,877,531 353,272,032 216,500,562
ENDING NET ASSETS $271,146,101 $284,877,531 $353,272,032
- -------------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
106
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
GROWTH FUND ----------------------------
----------------------------------------------
(UNAUDITED) (UNAUDITED) FOR THE SIX
FOR THE SIX FOR THE SIX FOR THE FOR THE SIX MONTHS
MONTHS ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 1998 1999 1998
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (24,242) $ 697,433 $ 1,803,757 $ (303,619) $ (83,770)
Net realized gain (loss) on sale of
investments and foreign currency
transactions 16,175,988 14,581,218 88,713,098 918,017 (566,667)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 89,613,925 (43,668,473) 23,366,043 11,715,370 (9,561,257)
Net unrealized appreciation
(depreciation) of futures 0 0 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 105,765,671 (28,389,822) 113,882,898 12,329,768 (10,211,694)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (132,580) (736,408) (1,725,390) 0 0
CLASS B 0 0 (6,702) 0 0
CLASS C N/A N/A N/A 0 0(1)
INSTITUTIONAL CLASS (15,182) (39,683) (134,752) N/A N/A
CLASS O N/A N/A N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (47,058,207) 0 (46,453,276) 0 0
CLASS B (7,706,288) 0 (6,167,386) 0 0
CLASS C N/A N/A N/A 0 0(1)
INSTITUTIONAL CLASS (2,310,432) 0 (3,047,106) N/A N/A
CLASS O N/A N/A N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 13,065,482 13,601,157 85,211,489 3,417,860 4,983,799
Reinvestment of dividends - Class A 46,699,539 907,114 47,015,949 0 0
Cost of shares redeemed - Class A (57,318,796) (50,586,473) (99,180,720) (3,947,053) (3,434,398)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 2,446,225 (36,078,202) 33,046,718 (529,193) 1,549,401
Proceeds from shares sold - Class B 4,725,945 4,861,311 25,116,094 2,053,546 4,873,415
Reinvestment of dividends - Class B 7,535,251 383 6,089,528 0 0
Cost of shares redeemed - Class B (5,876,401) (5,006,990) (5,920,292) (3,897,496) (2,128,140)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 6,384,795 (145,296) 25,285,330 (1,843,950) 2,745,275
Proceeds from shares sold - Class C N/A N/A N/A 84,311 369,928(1)
Reinvestment of dividends - Class C N/A N/A N/A 0 0(1)
Cost of shares redeemed - Class C N/A N/A N/A (107,372) (16,666)(1)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A N/A N/A (23,061) 353,262(1)
Proceeds from shares sold -
Institutional Class 2,455,518 804,633 4,254,007 N/A N/A
Reinvestment of dividends -
Institutional Class 1,356,427 28,818 1,899,742 N/A N/A
Cost of shares redeemed -
Institutional Class (1,898,138) (3,493,596) (10,544,641) N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 1,913,807 (2,660,145) (4,390,892) N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS 59,287,809 (68,049,556) 110,289,442 9,933,564 (5,563,756)
NET ASSETS:
Beginning net assets 368,436,666 436,486,222 326,196,780 54,209,347 59,773,103
ENDING NET ASSETS $427,724,475 $368,436,666 $436,486,222 $ 64,142,911 $54,209,347
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
24, 1997
OF
OPERATIONS)
TO
MARCH 31,
1998
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (4,877)
Net realized gain (loss) on sale of
investments and foreign currency
transactions (692,410)
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 6,369,281
Net unrealized appreciation
(depreciation) of futures 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 5,671,994
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A (3,770)
CLASS B 0
CLASS C N/A
INSTITUTIONAL CLASS N/A
CLASS O N/A
From net realized gain on sale of
investments
CLASS A 0
CLASS B 0
CLASS C N/A
INSTITUTIONAL CLASS N/A
CLASS O N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 25,718,301
Reinvestment of dividends - Class A 2,483
Cost of shares redeemed - Class A (1,507,284)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A 24,213,500
Proceeds from shares sold - Class B 31,759,206
Reinvestment of dividends - Class B 0
Cost of shares redeemed - Class B (1,867,827)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 29,891,379
Proceeds from shares sold - Class C N/A
Reinvestment of dividends - Class C N/A
Cost of shares redeemed - Class C N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C N/A
Proceeds from shares sold -
Institutional Class N/A
Reinvestment of dividends -
Institutional Class N/A
Cost of shares redeemed -
Institutional Class N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A
Proceeds from shares sold - Class O N/A
Reinvestment of dividends - Class O N/A
Cost of shares redeemed - Class O N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A
INCREASE (DECREASE) IN NET ASSETS 59,773,103
NET ASSETS:
Beginning net assets 0
ENDING NET ASSETS $59,773,103
- -------------------------------------------------------------------------------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
107
<PAGE>
Equity Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 1998 (1)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (328,545) $ (267,578) $ (122,337)
Net realized gain (loss) on sale of
investments and foreign currency
transactions (6,585,680) (10,366,907) 10,463,062
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 25,241,661 (22,514,409) 12,044,947
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,327,436 (33,148,894) 22,385,672
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A 0 0 (1,626)
CLASS B 0 0 0
CLASS C 0 0 0(3)
INSTITUTIONAL CLASS 0 0 (24,243)
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A (859,083) 0 (827,508)
CLASS B (1,058,347) 0 (782,027)
CLASS C (111,106) 0 0(3)
INSTITUTIONAL CLASS (5,153,962) 0 (4,562,220)
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 2,579,396 3,220,859 15,154,524
Reinvestment of dividends - Class A 813,765 211 803,796
Cost of shares redeemed - Class A (4,120,847) (2,987,647) (5,282,878)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (727,686) 233,423 10,675,442
Proceeds from shares sold - Class B 1,443,949 4,724,111 12,825,169
Reinvestment of dividends - Class B 1,049,460 0 771,233
Cost of shares redeemed - Class B (2,381,220) (1,390,665) (1,640,518)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B 112,189 3,333,446 11,955,884
Proceeds from shares sold - Class C 127,887 370,791 2,366,421(3)
Reinvestment of dividends - Class C 58,549 0 8,555(3)
Cost of shares redeemed - Class C (455,696) (777,530) (132,433)(3)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (269,260) (406,739) 2,242,543(3)
Proceeds from shares sold -
Institutional Class 14,284,106 19,609,948 53,985,405
Reinvestment of dividends -
Institutional Class 4,663,904 0 4,269,897
Cost of shares redeemed -
Institutional Class (16,494,772) (20,068,534) (21,247,255)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS 2,453,238 (458,586) 37,008,047
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS 12,838,379 (30,447,350) 78,069,964
NET ASSETS:
Beginning net assets 81,834,324 112,281,674 34,211,710
ENDING NET ASSETS $ 94,672,703 $ 81,834,324 $112,281,674
- -------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $3,163,650 FOR CLASS A SHARES, AND
$2,277,136 FOR CLASS C SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS SMALL CAP STRATEGY FUND.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $37,967,719 FOR CLASS A SHARES, AND
$22,688,669 FOR CLASS B SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS STRATEGIC GROWTH FUND.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
108
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND
----------------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE NINE FOR THE
MONTHS ENDED MONTHS ENDED YEAR ENDED
MARCH 31, SEPT. 30, DEC. 31,
1999 1998 1997 (2)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) $ (757,330) $ (1,571,853) $ (1,976,702)
Net realized gain (loss) on sale of
investments and foreign currency
transactions 5,986,923 (6,336,849) 27,263,706
Net unrealized appreciation
(depreciation) of investments and
translation of assets and liabilities
in foreign currencies 24,663,811 (17,512,709) (4,721,950)
Net unrealized appreciation
(depreciation) of futures 0 0 0
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 29,893,404 (25,421,411) 20,565,054
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
CLASS A 0 0 0
CLASS B 0 0 0(3)
CLASS C 0 0 0
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
From net realized gain on sale of
investments
CLASS A 0 0 (32,094,549)
CLASS B 0 0 0(3)
CLASS C 0 0 (12,310,107)
INSTITUTIONAL CLASS N/A N/A N/A
CLASS O N/A N/A N/A
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold - Class A 61,788,824 105,704,155 227,568,030
Reinvestment of dividends - Class A 0 0 24,933,472
Cost of shares redeemed - Class A (84,417,852) (141,270,390) (219,015,611)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A (22,629,028) (35,566,235) 33,485,891
Proceeds from shares sold - Class B 1,439,697 6,613,663 23,193,050(3)
Reinvestment of dividends - Class B 0 0 0(3)
Cost of shares redeemed - Class B (4,966,815) (5,513,461) (422,099)(3)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B (3,527,118) 1,100,202 22,770,951(3)
Proceeds from shares sold - Class C 1,163,775 24,644,890 221,398,643
Reinvestment of dividends - Class C 0 0 6,423,494
Cost of shares redeemed - Class C (7,567,131) (45,817,020) (233,237,347)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C (6,403,356) (21,172,130) (5,415,210)
Proceeds from shares sold -
Institutional Class N/A N/A N/A
Reinvestment of dividends -
Institutional Class N/A N/A N/A
Cost of shares redeemed -
Institutional Class N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS N/A N/A N/A
Proceeds from shares sold - Class O N/A N/A N/A
Reinvestment of dividends - Class O N/A N/A N/A
Cost of shares redeemed - Class O N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS O N/A N/A N/A
INCREASE (DECREASE) IN NET ASSETS (2,666,098) (81,059,574) 27,002,030
NET ASSETS:
Beginning net assets 132,232,152 213,291,726 186,289,696
ENDING NET ASSETS $129,566,054 $132,232,152 $213,291,726
- -------------------------------------------------------------------------------------------
</TABLE>
(1) "PROCEEDS FROM SHARES SOLD" INCLUDES $3,163,650 FOR CLASS A SHARES, AND
$2,277,136 FOR CLASS C SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS SMALL CAP STRATEGY FUND.
(2) "PROCEEDS FROM SHARES SOLD" INCLUDES $37,967,719 FOR CLASS A SHARES, AND
$22,688,669 FOR CLASS B SHARES AS A RESULT OF THE CONSOLIDATION OF THE
OVERLAND EXPRESS STRATEGIC GROWTH FUND.
(3) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
109
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1)
CLASS A
-----------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (2) 1998
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.23 $13.28 $12.01
------------- ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.15 0.17 0.38
Net realized and unrealized gain
(loss) on investments 0.78 (1.05) 2.76
------------- ------------ ------------
TOTAL FROM INVESTMENT OPERATIONS 0.93 (0.88) 3.14
LESS DISTRIBUTIONS:
Dividends from net investment income (0.15) (0.17) (0.38)
Distributions from net realized gain (1.29) 0.00 (1.49)
Tax return of capital 0.00 0.00 0.00
------------- ------------ ------------
TOTAL FROM DISTRIBUTIONS (1.44) (0.17) (1.87)
------------- ------------ ------------
NET ASSET VALUE, END OF PERIOD $11.72 $12.23 $13.28
------------- ------------ ------------
------------- ------------ ------------
TOTAL RETURN (NOT ANNUALIZED)* 7.91 % (6.63)% 27.49%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $30,929 $30,833 $34,952
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 1.27% 1.28% 1.12%
Ratio of net investment income (loss)
to average net assets 2.57% 2.66% 2.91%
Portfolio turnover 43% 64% 67%
- -------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 1.48% 1.33% 1.40%
Ratio of net investment income (loss) to
average net assets prior to waived
fees and reimbursed expenses 2.36% 2.61% 2.63%
- -------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
110
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1) (CONT.)
CLASS B
CLASS A (CONT.) ----------------------------------
---------------------------------- (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31,
1997 (3) 1996 1995 1999 1998 (2) 1998
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $11.46 $11.84 $11.67 $11.06 $12.00 $10.79
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.19 0.36 0.46** 0.10 0.11 0.19
Net realized and
unrealized gain (loss)
on investments 0.74 0.89 0.68** 0.71 (0.94) 2.55
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.93 1.25 1.14 0.81 (0.83) 2.74
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.19) (0.35) (0.47) (0.10) (0.11) (0.19)
Distributions from net
realized gain (0.19) (1.28) (0.50) (1.17) 0.00 (1.34)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.38) (1.63) (0.97) (1.27) (0.11) (1.53)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $12.01 $11.46 $11.84 $10.60 $11.06 $12.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 8.15% 10.51% 10.62% 7.54% (6.92)% 26.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $31,632 $32,640 $89,034 $11,161 $10,516 $9,145
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.05% 1.31% 1.03% 1.93% 1.93% 1.82%
Ratio of net investment
income (loss) to average
net assets 3.20% 2.98% 4.05% 1.91% 2.02% 2.15%
Portfolio turnover 43% 131% 90% 43% 64% 67%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.30% 1.48% 1.05% 2.49% 2.09% 2.29%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.95% 2.81% 4.03% 1.35% 1.86% 1.68%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
The accompanying notes are an integral part of these financial statements.
111
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1)
(CONT.)
CLASS B (CONT.)
----------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, SEPT. 30,
1997 (3) 1996 (4)
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.24 $10.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.08 0.00
Net realized and unrealized gain (loss) on investments 0.72 0.24
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.80 0.24
LESS DISTRIBUTIONS:
Dividends from net investment income (0.08) 0.00
Distributions from net realized gain (0.17) 0.00
Tax return of capital 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (0.25) 0.00
---------- ----------
NET ASSET VALUE, END OF PERIOD $10.79 $10.24
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 7.84% 2.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $297 $2
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.70% 0.00%
Ratio of net investment income (loss) to average net assets 2.48% 3.09%
Portfolio turnover 43% 131%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 7.85% 0.66%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses (3.67)% 2.43%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THE FUND COMMENCED OPERATIONS ON OCTOBER 1, 1996.
The accompanying notes are an integral part of these financial statements.
112
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
BALANCED FUND (1) (CONT.)
INSTITUTIONAL CLASS
----------------------------------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 (2) 1998 1997 (3) 1996 (5)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.19 $13.26 $12.00 $11.45 $11.84
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.16 0.19 0.40 0.21 0.40
Net realized and
unrealized gain (loss)
on investments 0.78 (1.07) 2.74 0.74 0.89
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.94 (0.88) 3.14 0.95 1.29
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.16) (0.19) (0.40) (0.21) (0.40)
Distributions from net
realized gain (1.29) 0.00 (1.48) (0.19) (1.28)
Tax return of capital 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.45) (0.19) (1.88) (0.40) (1.68)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $11.68 $12.19 $13.26 $12.00 $11.45
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 7.98% (6.66)% 27.67% 8.27% 10.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $34,986 $36,473 $51,241 $55,456 $72,327
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.18% 1.18% 0.99% 0.95% 0.94%
Ratio of net investment
income (loss) to average
net assets 2.67% 2.76% 3.05% 3.30% 3.29%
Portfolio turnover 43% 64% 67% 43% 131%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.38% 1.23% 1.21% 1.18% 1.11%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 2.47% 2.71% 2.83% 3.07% 3.12%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THE FUND COMMENCED OPERATIONS ON OCTOBER 1, 1996.
The accompanying notes are an integral part of these financial statements.
113
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND
CLASS A
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (1) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.39 $18.97 $14.52
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.16 0.16 0.28
Net realized and unrealized gain (loss) on investments 0.96 (2.58) 5.15
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.12 (2.42) 5.43
LESS DISTRIBUTIONS:
Dividends from net investment income (0.16) (0.16) (0.28)
Distributions from net realized gain (1.64) 0.00 (0.70)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.80) (0.16) (0.98)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $15.71 $16.39 $18.97
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 7.11% (12.78)% 38.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $151,628 $170,744 $223,540
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.19% 1.17% 1.12%
Ratio of net investment income (loss) to average net
assets 1.97% 1.74% 1.67%
Portfolio turnover 24% 58% 59%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.21% 1.17% 1.19%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 1.95% 1.74% 1.60%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
114
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND (CONT.)
CLASS A (CONT.) CLASS B
---------------------------------------------- ----------------------------------
NINE (UNAUDITED)
SIX MONTHS MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED YEAR ENDED ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, DEC. 31, DEC. 31, MARCH 31, SEPT. 30, MARCH 31,
1997 (2) 1996 (3) 1995 1994 1999 1998 (1) 1998
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $14.73 $13.34 $10.76 $11.08 $15.35 $17.77 $13.60
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.14 0.25 0.35 0.33 0.10 0.09 0.15
Net realized and
unrealized gain (loss)
on investments 0.64 1.39 2.86 (0.32) 0.91 (2.42) 4.82
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.78 1.64 3.21 0.01 1.01 (2.33) 4.97
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.14) (0.25) (0.35) (0.33) (0.10) (0.09) (0.15)
Distributions from net
realized gain (0.85) 0.00 (0.28) 0.00 (1.54) 0.00 (0.65)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.99) (0.25) (0.63) (0.33) (1.64) (0.09) (0.80)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $14.52 $14.73 $13.34 $10.76 $14.72 $15.35 $17.77
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 5.25% 12.35% 30.17% 0.08% 6.78% (13.12)% 37.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $154,502 $134,648 $79,977 $45,178 $57,671 $61,396 $71,736
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.10% 1.10% 1.10% 1.06% 1.87% 1.86% 1.77%
Ratio of net investment
income (loss) to average
net assets 1.91% 2.57% 3.02% 3.16% 1.29% 1.07% 1.02%
Portfolio turnover 33% 43% 70% 62% 24% 58% 59%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.17% 1.26% 1.31% 1.34% 1.95% 1.86% 1.83%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 1.84% 2.41% 2.81% 2.88% 1.21% 1.07% 0.96%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
The accompanying notes are an integral part of these financial statements.
115
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND
(CONT.)
CLASS B (CONT.)
----------------------------------
NINE
SIX MONTHS MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, DEC. 31,
1997 (2) 1996 (3) 1995 (4)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.79 $12.49 $10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.08 0.17 0.20
Net realized and unrealized gain (loss) on investments 0.60 1.30 2.75
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.68 1.47 2.95
LESS DISTRIBUTIONS:
Dividends from net investment income (0.08) (0.17) (0.20)
Distributions from net realized gain (0.79) 0.00 (0.26)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.87) (0.17) (0.46)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $13.60 $13.79 $12.49
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 4.91% 11.76% 29.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $32,632 $17,045 $5,339
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.74% 1.74% 1.73%
Ratio of net investment income (loss) to average net
assets 1.29% 2.01% 2.40%
Portfolio turnover 33% 43% 70%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.87% 2.08% 2.57%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 1.16% 1.67% 1.56%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CORPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 28, 1996
TO SEPTEMBER 30, 1996, WERE 3% AND $.0265 RESPECTIVELY. THE
INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
116
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY INDEX FUND
CLASS A
----------------------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, DEC. 31, DEC. 31,
1999 1998 (1) 1998 1997 (2) 1996 (3) 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $64.93 $70.32 $49.60 $46.24 $41.45 $31.42 $33.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.24 0.33 0.48 0.25 0.42 0.59 0.63
Net realized and
unrealized gain (loss)
on investments 16.79 (5.39) 22.31 4.61 4.79 10.65 (0.50)
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 17.03 (5.06) 22.79 4.86 5.21 11.24 0.13
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.24) (0.33) (0.48) (0.25) (0.42) (0.59) (0.63)
Distributions from net
realized gain (3.33) 0.00 (1.59) (1.25) 0.00 (0.62) (1.08)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (3.57) (0.33) (2.07) (1.50) (0.42) (1.21) (1.71)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $78.39 $64.93 $70.32 $49.60 $46.24 $41.45 $31.42
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 26.78% (7.22)% 46.48% 10.63% 12.60% 35.99% 0.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $625,041 $518,778 $578,882 $406,739 $370,439 $327,208 $236,265
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.71% 0.71% 0.89%(5) 0.97%(5) 1.01%(5) 0.96% 0.97%
Ratio of net investment
income (loss) to average
net assets 0.66% 0.94% 0.80%(5) 1.02%(5) 1.28%(5) 1.59% 1.92%
Portfolio turnover 4% 6% 4%(6) 2%(6) 1%(7) 6% 7%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.77% 0.77% 0.95%(5) 1.07%(5) 1.08%(5) 1.00% 1.00%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.60% 0.88% 0.74%(5) 0.92%(5) 1.21%(5) 1.55% 1.89%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CORPORATE STOCK MASTER PORTFOLIO FROM ITS INCEPTION ON APRIL 28, 1996
TO SEPTEMBER 30, 1996, WERE 3% AND $.0265 RESPECTIVELY. THE
INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
117
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY INDEX FUND (CONT.)
CLASS B
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (2) 1998 (4)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $65.03 $70.41 $65.18
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03) 0.04 (0.01)
Net realized and unrealized gain (loss) on investments 16.80 (5.38) 5.24
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 16.77 (5.34) 5.23
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 (0.04) 0.00
Distributions from net realized gain (3.33) 0.00 0.00
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (3.33) (0.04) 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $78.47 $65.03 $70.41
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 26.31% (7.59)% 8.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $42,522 $17,499 $3,811
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.45% 1.45% 1.45%
Ratio of net investment income (loss) to average net
assets (0.08)% 0.14% (0.19)%
Portfolio turnover 4% 6% 4%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.56% 1.58% 1.64%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (0.19)% 0.01% (0.38)%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
118
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY
INDEX
FUND
(CONT.) EQUITY VALUE FUND (1)
CLASS O CLASS A
---------- ----------------------------------------------
(UNAUDITED) (UNAUDITED)
PERIOD SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED YEAR ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1999 (5) 1999 1998 (2) 1998 1997 (3)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $78.00 $14.93 $18.15 $14.43 $12.66
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.16 0.08 0.09 0.17 0.08
Net realized and
unrealized gain (loss)
on investments 0.38 1.43 (3.22) 5.58 1.89
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.54 1.51 (3.13) 5.75 1.97
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 (0.08) (0.09) (0.17) (0.08)
Distributions from net
realized gain 0.00 (1.26) 0.00 (1.86) (0.12)
Tax return of capital 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 (1.34) (0.09) (2.03) (0.20)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $78.54 $15.10 $14.93 $18.15 $14.43
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 10.16% (17.27)% 41.76% 15.63%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $0 $39,437 $43,679 $52,392 $20,798
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.00% 1.16% 1.09% 1.07% 1.05%
Ratio of net investment
income (loss) to average
net assets 0.00% 1.02% 1.06% 1.03% 1.14%
Portfolio turnover 4% 36% 46% 50% 45%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.00% 1.30% 1.09% 1.16% 1.12%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.00% 0.88% 1.06% 0.94% 1.07%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
The accompanying notes are an integral part of these financial statements.
119
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1)
(CONT.)
CLASS A (CONT.)
----------------------
YEAR ENDED YEAR ENDED
SEPT. 30, SEPT. 30,
1996 1995
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.27 $12.36
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.20 0.24**
Net realized and unrealized gain (loss) on investments 1.60 1.63**
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.80 1.87
LESS DISTRIBUTIONS:
Dividends from net investment income (0.19) (0.25)
Distributions from net realized gain (2.22) (0.71)
Tax return of capital 0.00 0.00
---------- ----------
TOTAL FROM DISTRIBUTIONS (2.41) (0.96)
---------- ----------
NET ASSET VALUE, END OF PERIOD $12.66 $13.27
---------- ----------
---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 14.27% 16.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $18,453 $170,406
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.18% 0.96%
Ratio of net investment income (loss) to average net assets 1.73% 1.97%
Portfolio turnover 91% 75%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived fees and
reimbursed expenses 1.22% 0.98%
Ratio of net investment income (loss) to average net assets prior to
waived fees and reimbursed expenses 1.69% 1.95%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
120
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
EQUITY VALUE FUND (1) (CONT.)
CLASS B CLASS C
---------------------------------------------------------- ----------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED YEAR ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, MARCH 31, SEPT. 30,
1999 1998 (2) 1998 1997 (3) 1996 (4) 1999 1998 (5)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.23 $14.86 $11.81 $10.34 $10.00 $12.23 $14.86
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.02 0.02 0.05 0.01 0.00 0.02 0.02
Net realized and
unrealized gain (loss)
on investments 1.17 (2.63) 4.57 1.57 0.34 1.17 (2.63)
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 1.19 (2.61) 4.62 1.58 0.34 1.19 (2.61)
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.02) (0.02) (0.05) (0.01) 0.00 (0.02) (0.02)
Distributions from net
realized gain (1.03) 0.00 (1.52) (0.10) 0.00 (1.03) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.05) (0.02) (1.57) (0.11) 0.00 (1.05) (0.02)
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $12.37 $12.23 $14.86 $11.81 $10.34 $12.37 $12.23
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 9.80% (17.54)% 40.87% 15.31% 3.40% 9.80% (17.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $70,170 $73,343 $72,428 $2,542 $0 $1,099 $1,239
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.83% 1.81% 1.76% 1.70% 0.00% 1.83% 1.83%
Ratio of net investment
income (loss) to average
net assets 0.35% 0.36% 0.42% 0.34% 1.83% 0.35% 0.41%
Portfolio turnover 36% 46% 50% 45% 91% 36% 46%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 2.06% 1.81% 1.83% 2.19% N/A 2.46% 2.84%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 0.12% 0.36% 0.35% (0.15)% N/A 0.28% (0.60)%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
** PER SHARE DATA BASED UPON AVERAGE MONTHLY SHARES OUTSTANDING.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
(5) THIS CLASS OF SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
The accompanying notes are an integral part of these financial statements.
121
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (2) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $14.92 $18.15 $14.43
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.09 0.10 0.20
Net realized and unrealized gain (loss) on investments 1.43 (3.23) 5.58
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.52 (3.13) 5.78
LESS DISTRIBUTIONS:
Dividends from net investment income (0.09) (0.10) (0.20)
Distributions from net realized gain (1.26) 0.00 (1.86)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.35) (0.10) (2.06)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $15.09 $14.92 $18.15
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 10.22% (17.26)% 42.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $160,440 $166,616 $228,452
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.06% 0.97% 0.95%
Ratio of net investment income (loss) to average net
assets 1.12% 1.17% 1.18%
Portfolio turnover 36% 46% 50%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.10% 0.97% 0.98%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 1.08% 1.17% 1.15%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON OCTOBER 1, 1996.
The accompanying notes are an integral part of these financial statements.
122
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND
INSTITUTIONAL CLASS CLASS A
(CONT.) ----------------------------------------------
---------------------- (UNAUDITED)
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED ENDED YEAR ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, MARCH 31,
1997 (3) 1996 (4) 1999 1998 (2) 1998 1997 (3)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $12.65 $13.27 $20.48 $22.09 $19.20 $17.91
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.09 0.22 0.01 0.05 0.11 0.06
Net realized and
unrealized gain (loss)
on investments 1.89 1.61 5.71 (1.61) 6.18 1.34
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 1.98 1.83 5.72 (1.56) 6.29 1.40
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.08) (0.23) (0.01) (0.05) (0.11) (0.06)
Distributions from net
realized gain (0.12) (2.22) (3.28) 0.00 (3.29) (0.05)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.20) (2.45) (3.29) (0.05) (3.40) (0.11)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $14.43 $12.65 $22.91 $20.48 $22.09 $19.20
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 15.73% 14.58% 29.88% (7.08)% 34.65% 7.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $193,161 $206,620 $348,008 $305,309 $365,405 $283,468
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 0.95% 0.87% 1.10% 1.08% 1.12% 1.14%
Ratio of net investment
income (loss) to average
net assets 1.25% 1.69% 0.08% 0.42% 0.53% 0.65%
Portfolio turnover 45% 91% 17% 36% 137% 40%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 0.99% 0.92% 1.10% 1.08% 1.13% N/A
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses 1.21% 1.64% 0.08% 0.42% 0.52% N/A
- ----------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND OPERATED AS A SERIES OF PACIFICA FUNDS TRUST FROM ITS
COMMENCEMENT OF OPERATIONS UNTIL IT WAS REORGANIZED AS A SERIES OF
STAGECOACH FUNDS, INC. ON SEPTEMBER 6, 1996. IN CONJUNCTION WITH THE
REORGANIZATION, EXISTING INVESTOR SHARES WERE CONVERTED INTO CLASS A
SHARES OF THE FUND AND WFB ASSUMED INVESTMENT ADVISORY
RESPONSIBILITIES. PRIOR TO APRIL 1, 1996, THE FUND WAS ADVISED BY
FIRST INTERSTATE CAPITAL MANAGEMENT, INC. ("FICM"). IN CONNECTION WITH
THE MERGER OF FIRST INTERSTATE BANCORP INTO WELLS FARGO & CO. ON APRIL
1, 1996, FICM WAS RENAMED WELLS FARGO INVESTMENT MANAGEMENT, INC.,
SUBSEQUENTLY RENAMED WELLS CAPITAL MANAGEMENT, INC.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND COMMENCED OPERATIONS ON OCTOBER 1, 1996.
The accompanying notes are an integral part of these financial statements.
123
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND
CLASS A
-------------------------------------------
NINE MONTHS
ENDED YEAR ENDED YEAR ENDED
SEPT. 30, DEC. 31, DEC. 31,
1996 (3) 1995 1994
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.26 $14.10 $14.75
------------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07 0.19 0.22
Net realized and unrealized gain
(loss) on investments 2.00 3.87 (0.27)
------------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 2.07 4.06 (0.06)
LESS DISTRIBUTIONS:
Dividends from net investment income (0.07) (0.19) (0.22)
Distributions from net realized gain (1.35) (0.71) (0.38)
Tax return of capital 0.00 0.00 0.00
------------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.42) (0.90) (0.60)
------------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $17.91 $17.26 $14.10
------------- ---------- ----------
------------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 12.45% 28.90% (0.29)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $254,498 $178,488 $113,525
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to average net
assets 1.18% 1.18% 1.11%
Ratio of net investment income (loss)
to average net assets 0.56% 1.23% 1.51%
Portfolio turnover 83% 100% 71%
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets
prior to waived fees and reimbursed
expenses 1.19% 1.21% 1.15%
Ratio of net investment income (loss) to
average net assets prior to waived
fees and reimbursed expenses 0.55% 1.20% 1.47%
- ---------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
124
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
CLASS B
----------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS SIX MONTHS SIX MONTHS MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30, DEC. 31,
1999 1998 (1) 1998 1997 (2) 1996 (3) 1995 (4)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $14.53 $15.70 $13.64 $12.74 $12.29 $10.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.05) (0.02) (0.01) 0.00 (0.01) 0.05
Net realized and
unrealized gain (loss)
on investments 4.06 (1.15) 4.38 0.94 1.42 2.79
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 4.01 (1.17) 4.37 0.94 1.41 2.84
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 (0.05)
Distributions from net
realized gain (2.33) 0.00 (2.31) (0.04) (0.96) (0.50)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (2.33) 0.00 (2.31) (0.04) (0.96) (0.55)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $16.21 $14.53 $15.70 $13.64 $12.74 $12.29
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 29.48% (7.45)% 33.83% 7.36% 11.89% 28.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $61,590 $48,772 $52,901 $23,010 $12,832 $4,682
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.79% 1.79% 1.79% 1.86% 1.93% 1.87%
Ratio of net investment
income (loss) to average
net assets (0.61)% (0.29)% (0.15)% (0.06)% (0.12)% 0.43%
Portfolio turnover 17% 36% 137% 40% 83% 100%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.82% 1.79% 1.80% 1.89% 2.03% 2.21%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (0.64)% (0.29)% (0.16)% (0.09)% (0.22)% 0.09%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON JANUARY 1, 1995.
The accompanying notes are an integral part of these financial statements.
125
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.)
INSTITUTIONAL CLASS
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (2) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $24.01 $25.91 $22.52
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.07 0.17
Net realized and unrealized gain (loss) on investments 6.71 (1.90) 7.25
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 6.73 (1.83) 7.42
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.07) (0.17)
Distributions from net realized gain (3.85) 0.00 (3.86)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (3.87) (0.07) (4.03)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $26.87 $24.01 $25.91
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 30.00% (7.10)% 34.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $18,126 $14,355 $18,180
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 1.00% 1.02% 0.99%
Ratio of net investment income (loss) to average net
assets 0.18% 0.48% 0.65%
Portfolio turnover 17% 36% 137%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.01% 1.04% N/A
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses 0.17% 0.46% N/A
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
The accompanying notes are an integral part of these financial statements.
126
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
GROWTH FUND (CONT.) INTERNATIONAL EQUITY (1)
INSTITUTIONAL CLASS CLASS A
(CONT.) ----------------------------------
---------------------- (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31,
1997 (3) 1996 (4) 1999 1998 (2) 1998
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $21.01 $20.03 $9.36 $11.05 $10.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) 0.09 0.02 (0.03) (0.00 0.02
Net realized and
unrealized gain (loss)
on investments 1.57 0.97 2.23 (1.69) 1.03
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 1.66 0.99 2.20 (1.69) 1.05
LESS DISTRIBUTIONS:
Dividends from net
investment income (0.09) (0.01) 0.00 0.00 0.00
Distributions from net
realized gain (0.06) 0.00 0.00 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (0.15) (0.01) 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $22.52 $21.01 $11.56 $9.36 $11.05
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 7.92% 3.41% 23.50% (15.29)% 10.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $19,719 $18,508 $28,725 $23,857 $26,770
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.01% 0.96% 1.75% 1.75% 1.75%
Ratio of net investment
income (loss) to average
net assets 0.78% 1.27% (0.63)% 0.10% 0.35%
Portfolio turnover 40% 83% 16% 42% 12%
- ----------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses N/A N/A 2.12% 2.04% 2.20%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses N/A N/A (1.00)% (0.19)% (0.10)%
- ----------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON SEPTEMBER 6, 1996.
The accompanying notes are an integral part of these financial statements.
127
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY (1) (CONT.)
CLASS B
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (3) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $9.30 $11.01 $10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.07) (0.03) (0.01)
Net realized and unrealized gain (loss) on investments 2.22 (1.68) 1.02
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 2.15 (1.71) 1.01
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized gain 0.00 0.00 0.00
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $11.45 $9.30 $11.01
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 23.12% (15.53)% 10.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $35,082 $30,070 $33,003
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 2.40% 2.40% 2.40%
Ratio of net investment income (loss) to average net
assets (1.28)% (0.56)% (0.31)%
Portfolio turnover 16% 42% 12%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 2.77% 2.69% 2.84%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (1.65)% (0.85)% (0.75)%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) 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 APRIL 1, 1998.
(6) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
128
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY (1) (CONT.) SMALL CAP FUND (2)
CLASS C CLASS A
---------------------- ----------------------------------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED YEAR ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1999 1998 (5) 1999 1998 (3) 1998 1997 (4) 1996
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $9.30 $11.01 $17.86 $25.62 $18.98 $22.45 $22.01
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.07) (0.03) (0.09) (0.09) (0.06) (0.01) 0.00
Net realized and
unrealized gain (loss)
on investments 2.22 (1.68) 3.66 (7.67) 8.76 (3.46) 0.44
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 2.15 (1.71) 3.57 (7.76) 8.70 (3.47) 0.44
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 (1.44) 0.00 (2.06) 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 (1.44) 0.00 (2.06) 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $11.45 $9.30 $19.99 $17.86 $25.62 $18.98 $22.45
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 23.12% (15.53)% 21.03% (30.29)% 47.03% (15.46)% 2.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $336 $297 $11,514 $10,899 $15,611 $3,107 $96
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 2.40% 2.40% 1.36% 1.36% 1.22%(6) 1.10%(6) 1.03%(6)
Ratio of net investment
income (loss) to average
net assets (1.25)% (1.15)% (1.01)% (0.82)% (0.43 (6) (0.23 (6) (0.59)%(6)
Portfolio turnover 16% 42% 106% 219% 291%(7) 69%(7) 10%(7)
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 2.77% 2.65% 1.44% 1.49% 1.57%(6) 2.80%(6) 38.54%(6)
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (1.62)% (1.40)% (1.09)% (0.95)% (0.78 (6) (1.93 (6) (38.10)%(6)
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 24, 1997.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) 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 APRIL 1, 1998.
(6) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
129
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (2) (CONT.)
CLASS B
----------------------------------
(UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 (1) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $17.64 $25.38 $18.93
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.16) (0.18) (0.11)
Net realized and unrealized gain (loss) on investments 3.61 (7.56) 8.61
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 3.45 (7.74) 8.50
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized gain (1.42) 0.00 (2.05)
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (1.42) 0.00 (2.05)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $19.67 $17.64 $25.38
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 20.57% (30.50)% 46.02%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $14,791 $13,071 $15,320
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 2.09% 2.11% 1.92%(5)
Ratio of net investment income (loss) to average net
assets (1.74)% (1.56)% (1.13)%(5)
Portfolio turnover 106% 219% 291%(6)
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 2.18% 2.13% 2.21%(5)
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (1.83)% (1.58)% (1.42)%(5)
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
130
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (2) (CONT.)
CLASS C INSTITUTIONAL CLASS
CLASS B (CONT.) ---------------------------------- ----------------------
---------------------- (UNAUDITED) (UNAUDITED)
SIX MONTHS PERIOD SIX MONTHS SIX MONTHS PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPT. 30, MARCH 31, SEPT. 30, MARCH 31, MARCH 31, SEPT. 30,
1997 (3) 1996 1999 1998 (1) 1998 (4) 1999 1998 (1)
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $22.46 $22.02 $17.63 $25.38 $21.77 $18.02 $25.77
---------- ---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.04) 0.00 (0.16) (0.18) (0.08) (0.04) (0.02)
Net realized and
unrealized gain (loss)
on investments (3.49) 0.44 3.61 (7.57) 3.69 3.71 (7.73)
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS (3.53) 0.44 3.45 (7.75) 3.61 3.67 (7.75)
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 (1.42) 0.00 0.00 (1.46) 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 (1.42) 0.00 0.00 (1.46) 0.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $18.93 $22.46 $19.66 $17.63 $25.38 $20.23 $18.02
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* (15.72)% 2.00% 20.58% (30.54)% 16.58% 21.39% (30.07)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $1,905 $0 $1,320 $1,426 $2,495 $67,047 $56,438
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.75%(5) 0.00% 2.11% 2.11% 2.10% 0.76% 0.76%
Ratio of net investment
income (loss) to average
net assets (0.85 (5) 0.00% (1.76)% (1.56)% (1.17)% (0.41)% (0.21)%
Portfolio turnover 69%(6) 10%(6) 106% 219% 291% 106% 219%
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 3.55%(5) 0.00% 2.74% 2.71% 2.66% 1.23% 1.21%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (2.65 (5) 0.00% (2.39)% (2.16)% (1.73)% (0.88)% (0.66)%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) THE FUND CHANGED ITS FISCAL YEAR-END FROM MARCH 31 TO SEPTEMBER 30.
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
The accompanying notes are an integral part of these financial statements.
131
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL CAP FUND (2) (CONT.)
INSTITUTIONAL CLASS (CONT.)
----------------------------------
SIX MONTHS PERIOD
YEAR ENDED ENDED ENDED
MARCH 31, MARCH 31, SEPT. 30
1998 1997 (3) 1996
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $19.01 $22.45 $22.01
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.00 0.02 0.00
Net realized and unrealized gain (loss) on investments 8.84 (3.46) 0.44
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 8.84 (3.44) 0.44
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) 0.00 0.00
Distributions from net realized gain (2.07) 0.00 0.00
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS (2.08) 0.00 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $25.77 $19.01 $22.45
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 47.70% (15.32)% 2.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $78,856 $29,200 $24,553
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 0.75%(5) 0.75%(5) 1.60%(5)
Ratio of net investment income (loss) to average net
assets 0.01%(5) 0.16%(5) (1.15)%(5)
Portfolio turnover 291%(6) 69%(6) 10%(6)
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 1.26%(5) 1.65%(5) 1.63%(5)
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (0.50 (5) (0.74 (5) (1.18)%(5)
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR CLASS A
SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON FEBRUARY
20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781, RESPECTIVELY.
THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
132
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1)
CLASS A
----------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS MONTHS
ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1999 1998 (4) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $16.62 $19.96 $26.42 $24.12 $19.06 $18.93
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.09) (0.14) (0.07) (0.04) (0.06) (0.16)
Net realized and
unrealized gain (loss)
on investments 4.11 (3.20) 2.48 2.54 8.12 0.96
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 4.02 (3.34) 2.41 2.50 8.06 0.80
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 (8.87) (0.20) (3.00) (0.47)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 (0.20)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 (8.87) (0.20) (3.00) (0.67)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $20.64 $16.62 $19.96 $26.42 $24.12 $19.06
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 24.19% (16.73)% 7.73% 10.32% 42.51% 4.23%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $93,152 $94,388 $148,122 $131,226 $59,016 $26,744
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 1.28% 1.27% 1.18%(5) 1.24%(5) 1.28% 1.20%
Ratio of net investment
income (loss) to average
net assets (0.91)% (0.90)% (0.96 (5) (0.82 (5) (0.76)% (0.81)%
Portfolio turnover 191% 453% 256%(6) 10%(7) 171% 149%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 1.38% 1.27% 1.18%(5) 1.27%(5) 1.38% 1.55%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (1.01)% (0.90)% (0.96 (5) (0.85 (5) (0.86)% (1.16)%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR CLASS A
SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THE FUND COMMENCED OPERATIONS ON SEPTEMBER 16, 1996.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM SEPTEMBER 30 TO MARCH 31.
(4) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON FEBRUARY
20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781, RESPECTIVELY.
THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
133
<PAGE>
Equity Funds FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1) (CONT.)
CLASS B
----------------------------------
(UNAUDITED) NINE
SIX MONTHS MONTHS PERIOD
ENDED ENDED ENDED
MARCH 31, SEPT. 30 DEC. 31,
1999 1998 (3) 1997 (4)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $20.15 $24.33 $23.68
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.18) (0.29) (0.02)
Net realized and unrealized gain (loss) on investments 4.97 (3.89) 0.67
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 4.79 (4.18) 0.65
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized gain 0.00 0.00 0.00
Tax return of capital 0.00 0.00 0.00
---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 0.00
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $24.94 $20.15 $24.33
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN (NOT ANNUALIZED)* 23.77% (17.18)% 2.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s) $21,556 $20,337 $23,562
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Ratio of expenses to average net assets 2.00% 1.93% 1.89%
Ratio of net investment income (loss) to average net
assets (1.62)% (1.56)% (1.63)%
Portfolio turnover 191% 453% 256%
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net assets prior to waived
fees and reimbursed expenses 2.18% 1.93% 1.89%
Ratio of net investment income (loss) to average net assets
prior to waived fees and reimbursed expenses (1.80)% (1.56)% (1.63)%
- -----------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR CLASS A
SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS AS CLASS D SHARES ON JULY 1,
1993. THESE SHARES WERE RENAMED AS CLASS C SHARES IN CONJUNCTION WITH
THE CONSOLIDATION OF OVERLAND EXPRESS FUNDS, INC. AND STAGECOACH
FUNDS, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON FEBRUARY
20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781, RESPECTIVELY.
THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
134
<PAGE>
FINANCIAL HIGHLIGHTS Equity Funds
- ------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND (1) (CONT.)
CLASS C (2)
----------------------------------------------------------------------
(UNAUDITED) NINE
SIX MONTHS MONTHS
ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, SEPT. 30 DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1999 1998 (3) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $20.14 $24.32 $32.42 $29.84 $23.74 $23.75
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (0.18) (0.29) (0.45) (0.11) (0.23) (0.34)
Net realized and
unrealized gain (loss)
on investments 4.96 (3.89) 3.17 2.93 10.03 1.16
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 4.78 (4.18) 2.72 2.82 9.80 0.82
LESS DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gain 0.00 0.00 (10.82) (0.24) (3.70) (0.57)
Tax return of capital 0.00 0.00 0.00 0.00 0.00 (0.26)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM DISTRIBUTIONS 0.00 0.00 (10.82) (0.24) (3.70) (0.83)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD $24.92 $20.14 $24.32 $32.42 $29.84 $23.74
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (NOT
ANNUALIZED)* 23.73% (17.19)% 6.98% 9.46% 41.54% 3.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s) $14,858 $17,507 $41,608 $55,063 $26,326 $15,335
RATIOS TO AVERAGE NET ASSETS
(ANNUALIZED):
Ratio of expenses to
average net assets 2.00% 1.94% 1.93%(5) 2.00%(5) 2.02% 1.95%
Ratio of net investment
income (loss) to average
net assets (1.63)% (1.57)% (1.70 (5) (1.58 (5) (1.49)% (1.56)%
Portfolio turnover 191% 453% 256%(6) 10%(7) 171% 149%
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets prior to waived
fees and reimbursed
expenses 2.10% 1.94% 1.94%(5) 2.02%(5) 2.09% 2.23%
Ratio of net investment
income (loss) to average
net assets prior to waived
fees and reimbursed
expenses (1.73)% (1.57)% (1.71 (5) (1.60 (5) (1.56)% (1.84)%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE ANY SALES CHARGES.
(1) PERIODS PRIOR TO DECEMBER 31, 1997 HAVE BEEN RESTATED TO GIVE EFFECT
TO THE CONVERSION RATIOS APPLIED IN THE CONSOLIDATION OF OVERLAND
EXPRESS FUNDS, INC. AND STAGECOACH FUNDS, INC. (0.69721936 FOR CLASS A
SHARES AND 0.69679054 FOR CLASS C SHARES).
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS AS CLASS D SHARES ON JULY 1,
1993. THESE SHARES WERE RENAMED AS CLASS C SHARES IN CONJUNCTION WITH
THE CONSOLIDATION OF OVERLAND EXPRESS FUNDS, INC. AND STAGECOACH
FUNDS, INC.
(3) THE FUND CHANGED ITS FISCAL YEAR-END FROM DECEMBER 31 TO SEPTEMBER 30.
(4) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
(5) THIS RATIO INCLUDES ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER
15, 1997.
(6) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID INCLUDE
ACTIVITY OF THE MASTER PORTFOLIO PRIOR TO DECEMBER 15, 1997.
(7) THE PORTFOLIO TURNOVER FOR AND AVERAGE COMMISSION RATE PAID BY THE
CAPITAL APPRECIATION MASTER PORTFOLIO FROM ITS INCEPTION ON FEBRUARY
20, 1996 TO DECEMBER 31, 1996, WERE 137% AND $0.0781, RESPECTIVELY.
THE INFORMATION SHOWN REFLECTS THE STAND-ALONE PERIOD ONLY.
The accompanying notes are an integral part of these financial statements.
135
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
136
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Stagecoach Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Company commenced operations on January 1,
1992, and is currently comprised of thirty-one separate series. These financial
statements represent the Balanced, Diversified Equity Income, Equity Index,
Equity Value, Growth, International Equity, Small Cap and Strategic Growth Funds
(each, a "Fund", collectively, the "Funds"), each a diversified series of the
Company.
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.
Prior to December 12, 1997, the Stagecoach Diversified Equity Income, Equity
Index, Growth, and Strategic Growth Funds were known as the "Diversified
Income", "Corporate Stock", "Growth and Income" and "Aggressive Growth" Funds,
respectively.
Each of the Funds offers Class A and Class B shares. Additionally, the
Balanced, Equity Value, Growth and Small Cap Funds offer Institutional Class
shares. The Equity Value, International Equity, Small Cap and Strategic Growth
Funds also offer C shares. The Equity Index Fund also offers Class O shares
which commenced operations on February 1, 1999. The separate classes of shares
differ principally in the distribution fees, shareholder servicing fees and
transfer agency fees. Shareholders of each class also bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of
the Fund and earn income from the portfolio pro rata based on the average daily
net assets of each class, without distinction between share classes. Dividends
are determined separately for each class based on income and expenses allocable
to each class. Realized gains are allocated to each class pro rata based on the
net assets of each class on the date of distribution. No class has preferential
dividend rights. Differences in per share dividend rates generally result from
the relative
137
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
weightings of pro rata income and realized gain 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.
INVESTMENT POLICY AND SECURITY VALUATION
All securities are valued at the close of each business day. Securities for
which the primary market is a national or foreign recognized securities or
commodities exchange or the National Association of Securities Dealers Automated
Quotation ("NASDAQ") National Market are valued at the last reported sales price
on the day of valuation. The market values of securities denominated in foreign
currencies are translated into U.S. dollars using the closing rates of exchange
in effect on the day of valuation. Debt securities are generally traded in the
over-the-counter market and are valued at a price deemed best to reflect fair
value as quoted by dealers who make markets in those securities or by an
independent pricing source. U.S. Government obligations are valued at the last
reported bid price. In the absence of any sale of such securities on the
valuation date and in the case of other securities, excluding money market
instruments maturing in 60 days or less, the valuations are based on latest
quoted bid prices. Debt securities maturing in 60 days or less are valued at
amortized cost. The amortized cost method 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. Securities for which
quotations are not readily available are valued at fair value as determined by
policies set by the Company's Board of Directors.
FOREIGN CURRENCY TRANSLATION
The accounting records of the International Equity Fund are maintained in U.S.
dollars. Assets, including investment securities, and liabilities denominated in
foreign currency are translated into U.S. dollars at the prevailing rates of
exchange at the date of valuation. Purchases and sales of securities, income and
expenses are translated at the prevailing rate of exchange on the respective
dates of such transactions. Reported net realized foreign exchange gains or
losses arise
138
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
from sales of foreign currencies, currency gains or losses realized between the
trade and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually paid or received. Net unrealized foreign exchange gains and losses
arise from changes in the fair value of assets and liabilities other than
investments in securities, at fiscal period-end, resulting from changes in
exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. However, gains and losses
from certain foreign currency transactions are treated as ordinary income for
U.S. Federal income tax purposes.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
INTERNATIONAL EQUITY FUND -- Securities transactions are recorded on a trade
date basis. Interest income is accrued daily. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend date,
except, if the ex-dividend date has passed, certain dividends from foreign
securities are recorded as soon as the Fund is informed of the ex-dividend date.
Dividend income is recorded net of foreign taxes withheld where recovery of such
taxes is not assured. Withholding taxes on foreign dividends have been provided
for in accordance with the Fund's understanding of the applicable countries' tax
rules and rates. Realized gains or losses are reported on the basis of
identified cost of securities delivered.
FUNDS OTHER THAN INTERNATIONAL EQUITY FUND -- Securities transactions are
recorded on a trade date basis. Dividend income is recognized on the ex-dividend
date and interest income is accrued daily. Realized gains or losses are reported
on the basis of identified cost of securities delivered. Bond discounts are
accreted and premiums are amortized under provisions of the Internal Revenue
Code of 1986, as amended (the "Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell such
securities ("repurchase agreements") are treated as collateralized financing
transactions and are recorded at their contracted resale amounts. These
repurchase agreements, if any, are detailed in each Fund's Portfolio of
Investments. The Funds may participate in pooled repurchase agreement
transactions with other funds advised by Wells Fargo Bank, N.A. ("WFB"). The
repurchase agreements must be fully collateralized based on values that are
marked to market daily. The collateral may be held by an agent bank under a tri-
party agreement. It is the custodian's responsibility to value collateral daily
and
139
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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.
FUTURES CONTRACTS
The Equity Index Fund has purchased futures contracts to gain exposure to
market changes. This procedure may be more efficient or cost effective than
actually buying the securities. A futures contract is an agreement between
parties to buy or sell a security at a set price on a future date. Upon entering
into such a contract, a Fund is required to pledge to the broker an amount of
cash, U.S. Government obligations or other high-quality debt securities equal to
the minimum "initial margin" requirements of the exchange on which the futures
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in the value
of the contract. Such receipts or payments are known as "variation margin" and
are recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed. Pursuant to regulations and/or published positions of the Securities
and Exchange Commission ("SEC"), the Fund is required to segregate highly liquid
securities as permitted by the SEC in connection with futures transactions in an
amount generally equal to the entire value of the underlying contracts. Risks of
entering into futures contracts include the possibility that there may be an
illiquid market and that a change in the value of the contract may not correlate
with changes in the value of the underlying securities. On March 31, 1999, the
Equity Index Fund held the following futures contracts:
<TABLE>
<CAPTION>
NOTIONAL NET
EXPIRATION CONTRACT UNREALIZED
CONTRACTS TYPE DATE VALUE DEPRECIATION
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
S & P 500
18 Index June 1999 $5,819,850 $ 90,237
</TABLE>
The Equity Index Fund has pledged to brokers U.S. Treasury bills for initial
margin requirements with a par value of $600,000.
TBA PURCHASE COMMITMENTS
The Balanced Fund may enter into "TBA" (to be announced) purchase commitments
to purchase securities for a fixed price at a future date beyond customary
settlement time. The Fund holds, and maintains until the settlement date, cash
or high-quality debt obligations in an amount sufficient to meet the purchase
price. TBA purchase commitments are considered securities in themselves, and
involve a risk of loss if the value of the security to be purchased declines
prior to the settlement date. Unsettled TBA purchase commitments are
140
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
valued at the current market value of the underlying securities, generally
according to the procedures described under "Security Valuation" above. At March
31, 1999, the Balanced Fund held TBA purchase commitments with an aggregate cost
basis of $984,840.
Although the Fund generally enters into TBA purchase commitments with the
intention of acquiring securities for its portfolio, the Fund may dispose of a
commitment prior to settlement if the Fund's adviser deems it appropriate to do
so.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared and
distributed quarterly, with the exception of the International Equity and Small
Cap Funds. Dividends to shareholders from net investment income of the
International Equity and Small Cap Funds, if any, are declared and distributed
annually. Any distributions to shareholders from net realized capital gains are
declared and distributed at least annually.
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>
International Equity 2006 $ 170,020
Small Cap Fund 2007 21,675,154
Strategic Growth Fund 2006 5,885,908
</TABLE>
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains (losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by a
Fund. The differences between the income or gains distributed on a book versus
tax basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of Changes
in Net Assets. The amount of distributions from net investment income and net
realized capital gains are determined in accordance with federal income tax
regulations, which may differ from GAAP. These "book/tax" differences are either
141
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
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 an advisory contract on behalf of the Funds with
WFB. Pursuant to the contract, WFB has agreed to provide the Funds with daily
portfolio management, and is entitled to be paid a monthly advisory fee at the
following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE DAILY
FUND NET ASSETS
- -------------------------------------------------------------------------
<S> <C>
Balanced Fund 0.60
Diversified Equity Income Fund 0.50
Equity Index Fund 0.25
Equity Value Fund 0.50
Growth Fund
Daily net assets up to $250 million 0.50
Daily net assets between $250 million and $500
million 0.40
Daily net assets in excess of $500 million 0.30
International Equity Fund 1.00
Small Cap Fund 0.60
Strategic Growth 0.50
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Funds, with the exception of the
Equity Index Fund. WCM is entitled to receive from WFB, as compensation for its
sub-advisory services, a monthly fee at the annual rate of 0.25% of the Fund's
average daily net assets up to $200 million, 0.20% for the next $200 million and
0.15% of the Fund's average daily net assets in excess of $400 million. WCM's
minimum annual fee is $120,000 for the Fund. This minimum annual fee does not
increase the advisory fees paid by the Fund to WFB.
Barclays Global Fund Advisors ("BGFA"), a wholly-owned subsidiary of Barclays
Global Investors, N.A. ("BGI") and indirect subsidiary of Barclays Bank PLC,
acts as sub-adviser to the Equity Index Fund. BGFA is entitled to
142
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
receive from WFB, as compensation for its sub-advisory services, a monthly fee
at the annual rate of 0.02% of the Fund's average daily net assets up to $200
million and 0.01% of its average daily net assets in excess of $200 million.
The Company has entered into contracts on behalf of each Fund (other than the
Equity Index Fund, for which BGI serves as custodian and the International
Equity Fund, for which Investor's Bank and Trust Company, "IBT", serves as
custodian) with WFB, whereby WFB is responsible for providing custody and
portfolio accounting services for the Funds. Pursuant to the contracts, WFB is
entitled to certain transaction charges plus a monthly fee for custody services
at the 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. WFB has engaged
IBT to perform certain sub-accounting services for the International Equity
Fund. For providing such services, IBT is entitled to fees and reimbursement of
expenses from WFB, which are payable out of the fees received by WFB for
portfolio accounting services.
BGI, a wholly-owned subsidiary of Barclays Global Investors Holdings Inc.,
acts as custodian to the Equity Index Fund. BGI is not entitled to receive
compensation for its custodial services to the Fund so long as BGFA is entitled
to receive compensation for providing investment sub-advisory services to it.
IBT has been retained to act as custodian for the International Equity Fund.
For domestic and global custody services, IBT is entitled to a fee based upon
security holdings and transaction charges.
The Company has entered into a contract on behalf of the Funds with WFB,
whereby WFB provides transfer agency services for the Funds. Under the transfer
agency contract, WFB is entitled to receive transfer agency fees at an annual
rate of 0.14% of the average daily net assets of the Diversified Equity Income,
Equity Index and International Equity Funds, 0.14% of the Class A and Class B
shares of the Balanced, Equity Value, Growth, Small Cap and Strategic Growth
Funds, 0.14% of the Class C shares of the Equity Value, Small Cap and Strategic
Growth Funds and 0.06% of the average daily net assets of the Institutional
Class shares of the Balanced, Equity Value, Growth and Small Cap Funds.
143
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
The transfer agency fees paid on behalf of the Funds for the six months ended
March 31, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund $ 21,844 $ 7,717 N/A $ 10,729
Equity Value Fund 30,841 53,314 $ 842 51,674
Growth Fund 236,409 39,566 N/A 4,957
Small Cap Fund 7,969 9,895 986 19,762
Strategic Growth Fund 68,071 15,224 11,882 N/A
</TABLE>
The transfer agency fees paid on behalf of the Diversified Equity Income,
Equity Index and International Equity Funds are disclosed in the Statement of
Operations.
The Company, pursuant to a Shareholder Services Plan adopted for the Funds has
entered into an agreement on behalf of the Funds with WFB, whereby WFB has
agreed to provide shareholder services for the Funds. Pursuant to the agreement,
WFB is entitled to receive shareholder servicing fees at an annual rate of 0.30%
of the average daily net assets of the Diversified Equity Income Fund and the
Class A and Class B shares of the Growth Fund, 0.25% of the average daily net
assets of the Equity Index and International Equity Funds and each of the
classes of the Balanced, Equity Value, Small Cap and Strategic Growth Funds, and
0.25% of the average daily net assets of the Institutional Class shares of the
Growth Fund.
The shareholder servicing fees paid on behalf of the Funds for the six months
ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund $ 39,007 $ 13,781 N/A $ 44,704
Equity Value Fund 55,074 95,204 $ 1,503 215,307
Growth Fund 506,589 84,784 N/A 20,653
Small Cap Fund 14,230 17,670 1,760 82,343
Strategic Growth Fund 121,556 27,185 21,218 N/A
</TABLE>
The shareholder servicing fees paid on behalf of the Diversified Equity
Income, Equity Index and International Equity Funds 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 except for the International Equity Fund, from
which WFB and Stephens were entitled to receive 0.04% and 0.06%,
144
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
respectively. WFB has engaged IBT to perform certain sub-administration services
for the International Equity Fund. For providing such services, IBT is entitled
to an annual base fee of approximately $42,500 plus a net asset fee at the
annual rate of 0.05% of the first $75 million of average daily net assets,
0.025% of the next $50 million, and 0.01% of the average daily net assets in
excess of $125 million.
On March 25, 1999, the Company entered into an Administration Agreement with
WFB on behalf of the Funds. Under the Administration Agreement, WFB will act as
the sole Administrator of the Funds and is entitled to receive monthly fees at
an annual rate of 0.15% of the average daily net assets of the Funds with the
exception of the International Equity Fund, which pays fees at an annual rate of
0.10%.
The Company has adopted separate Distribution Plans for the Funds' shares
pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan"). The Plans for the
Class A shares of the Diversified Equity Income and Growth Funds provide that
each such Fund may defray all or part of the cost of preparing, printing and
distributing prospectuses and other promotional materials by paying for costs
incurred on an annual basis of up to 0.05% of the average daily net assets
attributable to such shares. The Plans for the Class A shares of the remaining
Funds, with the exception of the Equity Index Fund, provide that the Funds may
pay to Stephens, as compensation for distribution-related services or as
reimbursement for distribution-related expenses, a monthly fee at an annual rate
of up to 0.10% of the average daily net assets attributable to their Class A
shares. Prior to December 15, 1997, the Plan for the Class A shares of the
Strategic Growth Fund provided that the Fund pay to Stephens up to 0.25% of its
average daily net assets attributable to the Class A shares as compensation for
distribution-related services.
Under the Plan for Class B shares of the Funds, each Fund may pay to Stephens,
as compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.70% of the
average daily net assets attributable to the Class B shares of the Diversified
Equity Income and Growth Funds, and 0.75% of the average daily net assets
attributable to the Class B shares of the Balanced, Equity Index, Equity Value,
International Equity, Small Cap and Strategic Growth Funds.
Under the Plans for the Class C shares of the Equity Value, International
Equity, Small Cap and Strategic Growth Funds, each Fund may pay to Stephens, as
compensation for distribution-related services or as reimbursement for
distribution-related expenses, a monthly fee at an annual rate of 0.75% of the
average daily net assets attributable to its Class C shares.
Each Fund may participate in joint distribution activities with other Funds,
in which event, expenses reimbursed out of the assets of one of the Funds may be
145
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
attributable, in part, to the distribution-related activities of another Fund.
Generally, the expenses of joint distribution activities are allocated among the
Funds in proportion to their relative net asset sizes.
The distribution fees paid on behalf of the Funds for the six months ended
March 31, 1999 were as follows:
<TABLE>
<CAPTION>
FUND CLASS A CLASS B CLASS C
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
Balanced Fund $ 0 $ 41,343 N/A
Diversified Equity Income Fund 0 214,307 N/A
Equity Index Fund 0 104,754 N/A
Equity Value Fund 0 285,611 $ 4,509
Growth Fund 0 197,830 N/A
International Equity Fund 13,357 127,513 1,152
Small Cap Fund 5,692 53,010 5,281
Strategic Growth Fund 48,622 81,556 63,655
</TABLE>
The registration fees paid on behalf of the Funds for the six months ended
March 31, 1999 were as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL
FUND CLASS A CLASS B CLASS C CLASS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund $ 10,645 $ 17,538 N/A $ 8,683
Diversified Equity Income Fund 12,339 16,312 N/A N/A
Equity Index Fund 1,105 7,520 N/A N/A
Equity Value Fund 26,064 52,233 3,165 3,370
Growth Fund 25,346 9,200 N/A 4,091
Small Cap Fund 4,210 11,891 5,255 22,566
Strategic Growth Fund 5,040 17,136 6,187 N/A
</TABLE>
The registration fees paid on behalf of the International Equity Fund are
disclosed in the Statement of Operations.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the six months ended March 31, 1999, were 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 9 shares of the Balanced, 14,789
shares of the Diversified Equity Income, 3 shares of the Equity Index, 12 shares
of the Equity Value, 154 shares of the Growth, 7 shares of the International
Equity, 8 shares of the Small Cap and 6,046 shares of the Strategic Growth
Funds.
Stephens has retained $1,444,348 as sales charges from the proceeds of Class A
shares sold, $1,413,760 from the proceeds of Class B shares redeemed and $50,149
from the proceeds of Class C shares redeemed by the Company for
146
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
the year ended March 31, 1999. Wells Fargo Securities Inc., a subsidiary of WFB,
received $1,219,802 as sales charges from the proceeds of Class A shares sold,
$155,156 from the proceeds of Class B shares redeemed and $0 from the proceeds
of Class C shares redeemed by the Company for the period ended March 31, 1999.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date), for each Fund
for the six months ended March 31, 1999, were as follows:
AGGREGATE PURCHASES AND SALES
<TABLE>
<CAPTION>
PURCHASES AT SALES
FUND COST PROCEEDS
- -------------------------------------------------------------------------
<S> <C> <C>
Balanced Fund $ 33,046,794 $ 38,054,620
Diversified Equity Income Fund 52,360,383 86,627,353
Equity Index Fund 23,069,955 33,298,320
Equity Value Fund 103,471,127 134,065,303
Growth Fund 68,338,797 118,036,356
International Equity Fund 9,726,355 9,303,970
Small Cap Fund 95,106,323 97,817,518
Strategic Growth Fund 259,643,828 292,287,932
</TABLE>
4. 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 500 million shares of $0.001 par value capital stock for
each class of shares.
147
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
Capital share transactions for the Funds were as follows:
<TABLE>
<CAPTION>
BALANCED FUND
--------------------------------------
(UNAUDITED)
FOR THE
SIX
MONTHS FOR THE SIX FOR THE
ENDED MONTHS ENDED YEAR ENDED
MARCH 31, SEPT. 30, MARCH 31,
1999 1998 1998
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 79,756 136,211 420,213
Shares issued in reinvestment of
dividends -- Class A 315,770 32,525 358,753
Shares redeemed -- Class A (277,181) (278,356) (780,989)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A 118,345 (109,620) (2,023)
Shares sold -- Class B 73,020 240,973 709,400
Shares issued in reinvestment of
dividends -- Class B 119,879 7,017 55,037
Shares redeemed -- Class B (90,725) (58,649) (30,145)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B 102,174 189,341 734,292
Shares sold -- Institutional
Class 241,861 206,009 515,727
Shares issued in reinvestment of
dividends -- Institutional
Class 363,797 48,235 584,536
Shares redeemed -- Institutional
Class (601,502) (1,127,605) (1,857,018)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL
CLASS 4,156 (873,361) (756,755)
</TABLE>
148
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY INCOME FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS
ENDED FOR THE SIX FOR THE
MARCH 31, MONTHS ENDED YEAR ENDED
1999 SEPT. 30, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 302,593 485,816 3,839,513
Shares issued in reinvestment of
dividends -- Class A 1,168,555 77,639 593,094
Shares redeemed -- Class A (2,236,386) (1,927,115) (3,291,833)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (765,238) (1,363,660) 1,140,774
Shares sold -- Class B 71,761 345,133 1,936,277
Shares issued in reinvestment of
dividends -- Class B 441,022 15,221 172,544
Shares redeemed -- Class B (592,990) (398,481) (471,375)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B (80,207) (38,127) 1,637,446
</TABLE>
149
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS
ENDED FOR THE SIX FOR THE
MARCH 31, MONTHS ENDED YEAR ENDED
1999 SEPT. 30, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 457,947 494,311 1,208,808
Shares issued in reinvestment of
dividends -- Class A 409,266 35,262 271,192
Shares redeemed -- Class A (883,669) (772,265) (1,447,968)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (16,456) (242,692) 32,032
Shares sold -- Class B(1) 291,257 234,359 54,217
Shares issued in reinvestment of
dividends -- Class B(1) 15,220 24 0
Shares redeemed -- Class B(1) (33,676) (19,407) (92)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B(1) 272,801 214,976 54,125
Shares sold -- Class O(2) 1 N/A N/A
Shares issued in reinvestment of
dividends -- Class O(2) 0 N/A N/A
Shares redeemed -- Class O(2) 0 N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS O(2) 1 N/A N/A
</TABLE>
(1) THE CLASS B SHARES COMMENCED OPERATIONS ON FEBRUARY 17, 1998.
(2) THE CLASS 0 SHARES COMMENCED OPERATIONS ON FEBRUARY 1, 1999.
150
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY VALUE FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS
ENDED FOR THE SIX FOR THE
MARCH 31, MONTHS ENDED YEAR ENDED
1999 SEPT. 30, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 97,064 463,645 1,745,819
Shares issued in reinvestment of
dividends -- Class A 245,202 11,979 268,337
Shares redeemed -- Class A (656,010) (436,216) (569,633)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (313,744) 39,408 1,444,523
Shares sold -- Class B 252,708 1,570,146 4,530,419
Shares issued in reinvestment of
dividends -- Class B 503,561 5,398 315,926
Shares redeemed -- Class B (1,080,697) (450,579) (188,855)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B (324,428) 1,124,965 4,657,490
Shares sold -- Class C 26,908 107,237 N/A
Shares sold -- Class C(1) 7,725 9 N/A
Shares redeemed -- Class C(1) (47,160) (5,862) N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS C(1) (12,527) 101,384 N/A
Shares sold -- Institutional Class 574,786 563,560 1,371,556
Shares issued in reinvestment of
dividends -- Institutional Class 828,547 28,899 1,303,132
Shares redeemed -- Institutional Class (1,938,693) (2,016,105) (3,471,865)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS (535,360) (1,423,646) (797,177)
</TABLE>
(1) THE CLASS C SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
151
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS
ENDED FOR THE SIX FOR THE
MARCH 31, MONTHS ENDED YEAR ENDED
1999 SEPT. 30, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 594,207 611,479 4,014,428
Shares issued in reinvestment of
dividends -- Class A 2,280,337 40,424 2,345,049
Shares redeemed -- Class A (2,593,399) (2,282,051) (4,584,881)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A 281,145 (1,630,148) 1,774,596
Shares sold -- Class B 300,774 307,172 1,647,233
Shares issued in reinvestment of
dividends -- Class B 520,123 24 428,282
Shares redeemed -- Class B (377,153) (320,594) (392,158)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B 443,744 (13,398) 1,683,357
Shares sold -- Institutional Class 93,695 30,917 166,286
Shares issued in reinvestment of
dividends -- Institutional Class 56,373 1,096 80,772
Shares redeemed -- Institutional Class (73,161) (135,901) (420,946)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS 76,907 (103,888) (173,888)
</TABLE>
152
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
--------------------------------------------
(UNAUDITED) FROM SEPT. 24,
FOR THE SIX 1997
MONTHS (COMMENCEMENT
ENDED FOR THE SIX OF OPERATIONS)
MARCH 31, MONTHS ENDED TO
1999 SEPT. 30, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 303,659 444,360 $2,572,693
Shares issued in reinvestment of
dividends -- Class A 0 0 257
Shares redeemed -- Class A (366,493) (319,683) (149,719)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (62,834) 124,677 2,423,231
Shares sold -- Class B 191,885 438,879 3,186,964
Shares issued in reinvestment of
dividends -- Class B 0 0 0
Shares redeemed -- Class B (359,394) (203,894) (189,888)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B (167,509) 234,985 2,997,076
Shares sold -- Class C(1) 7,716 33,350 N/A
Shares issued in reinvestment of
dividends -- Class C(1) 0 0 N/A
Shares redeemed -- Class C(1) (10,263) (1,451) N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS C(1) (2,547) 31,899 N/A
</TABLE>
(1) THE CLASS C SHARES COMMENCED OPERATIONS ON APRIL 1, 1998.
153
<PAGE>
Equity Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAP FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS FOR THE
ENDED FOR THE SIX YEAR ENDED
MARCH 31, MONTHS ENDED MARCH 31,
1999 SEPT. 30, 1998 1998 (1)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 139,150 136,456 634,259
Shares issued in reinvestment of
dividends -- Class A 45,872 8 34,764
Shares redeemed -- Class A (219,244) (135,740) (223,310)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (34,222) 724 445,713
Shares sold -- Class B 79,678 201,571 538,236
Shares issued in reinvestment of
dividends -- Class B 60,004 0 33,568
Shares redeemed -- Class B (128,766) (63,939) (68,877)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B 10,916 137,632 502,927
Shares sold -- Class C(2) 6,911 15,556 103,665
Shares issued in reinvestment of
dividends -- Class C(2) 3,349 0 393
Shares redeemed -- Class C(2) (23,971) (32,995) (5,746)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS C(2) (13,711) (17,439) 98,312
Shares sold -- Institutional Class 776,778 957,486 2,243,301
Shares issued in reinvestment of
dividends -- Institutional Class 260,263 0 183,755
Shares redeemed -- Institutional Class (854,525) (886,274) (902,272)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- INSTITUTIONAL CLASS 182,516 71,212 1,524,784
</TABLE>
(1) "SHARES SOLD" INCLUDES 137,123 FOR CLASS A SHARES AND 99,909 FOR CLASS C
SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND SMALL CAP STRATEGY
FUND.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON DECEMBER 15, 1997.
154
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Equity Funds
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND
--------------------------------------------
(UNAUDITED)
FOR THE SIX
MONTHS FOR THE
ENDED FOR THE NINE YEAR ENDED
MARCH 31, MONTHS ENDED DEC. 31,
1999 SEPT. 30, 1998 1997 (1)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES ISSUED AND REDEEMED:
Shares sold -- Class A 3,271,769 5,216,652 9,450,816
Shares issued in reinvestment of
dividends-- Class A 0 0 1,180,296
Shares redeemed -- Class A (4,438,322) (6,958,044) (8,176,548)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS A (1,166,553) (1,741,392) 2,454,564
Shares sold -- Class B 69,024 263,347 986,522
Shares issued in reinvestment of
dividends-- Class B 0 0 0
Shares redeemed -- Class B (213,835) (222,796) (18,018)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS B (144,811) 40,551 968,504
Shares sold -- Class C 58,161 1,028,552 7,044,117
Shares issued in reinvestment of
dividends-- Class C 0 0 249,166
Shares redeemed -- Class C (331,354) (1,869,893) (7,280,888)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -- CLASS C (273,193) (841,341) 12,395
</TABLE>
(1) "SHARES SOLD" INCLUDES 2,038,293 FOR CLASS A SHARES AND 964,883 FOR CLASS B
SHARES AS A RESULT OF THE CONSOLIDATION OF THE OVERLAND STRATEGIC GROWTH
FUND
5. SUBSEQUENT EVENTS
On March 25, 1999, the Board of Directors of the Company approved the
reorganization of the Funds into new portfolios of Wells Fargo Funds Trust. The
reorganization is part of a larger plan to consolidate the 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.
155
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
156
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
157
<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
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MUD -- Municipal Utility District
MTN -- Medium Term Note
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
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>
158
<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 EQ SAR (5/99)
