STAGECOACH TRUST
SUPPLEMENT DATED APRIL 23, 1999 TO THE
PROSPECTUS DATED NOVEMBER 30, 1998
This supplement contains important information for shareholders about matters
recently approved by the Board of Trustees of Stagecoach Trust (the "Trust").
These matters are listed below and described in greater detail later in this
supplement.
o The reorganization of Stagecoach Trust into new funds of Wells
Fargo Funds Trust, as part of the consolidation of the Stagecoach
and Norwest Advantage fund families.
o The appointment of a new transfer agent, BFDS, beginning July 17,
1999, which means that after July 17 shareholders must write to a
new address, fax to a new number, or wire money to a new location
to purchase or sell shares.
o Changes to the Sales Loads for Class A and B shares for equity and
income Funds, beginning July 17, 1999, and enhancements to sales
charge reduction programs.
o Changes to the Funds' Administration arrangements.
Approval of the Reorganization
On March 25, 1999, the Board of Trustees of Stagecoach Trust approved the
reorganization of the Trust's Funds into new portfolios of Wells Fargo Funds
Trust ("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 Trust will present the reorganization to Fund shareholders for
their approval at a special shareholders' meeting that is planned for August
1999.
All of the Funds of the Trust will, if approved by shareholders, be reorganized
into new portfolios of Funds Trust that have investment objectives and
strategies that are substantially identical to the corresponding Funds.
The Funds Trust portfolios are not yet available for purchase. The Trust's proxy
materials, which are expected to be mailed in June to all persons who are
shareholders on May 6, 1999, will describe the reorganization in detail. If you
buy your shares after that date, you will not be entitled to vote on the
reorganization, but you may request a copy of the proxy materials.
For all of the Trust's Funds, the reorganization is expected to be a tax-free
transaction. The reorganization will not trigger any sales charges.
If you have any questions or, after early June, if you would like to request a
copy of the proxy materials, you should call 1-800-222-8222.
<PAGE>
Appointment of New Transfer Agent-BFDS
The Board of Trustees has approved Boston Financial Data Services, known as
BFDS, to replace Wells Fargo Bank as the transfer agent for all Stagecoach
Funds. The Norwest Advantage fund family also has approved BFDS as a
sub-transfer agent for all of its funds. The Trust anticipates that BFDS will
begin to act as transfer agent on July 17, 1999.
AFTER JULY 17, 1999: To purchase or sell fund shares, please use the
following new addresses and fax number when mailing or wiring funds to your
Stagecoach account.
By regular mail: Stagecoach Funds
P.O. Box 8266
Boston, MA 02266-8266
By overnight mail only to: Stagecoach Trust, Inc.
Attn: CCSU
Boston Financial
66 Brooks Drive
Braintree, MA 02184
By Fax to: (617) 483-5765
By Wire to: State Street Bank & Trust
Boston, MA
ABA 01100028
Stagecoach Trust: [Fund name]
AC: 9905-437-1
(Name on Stagecoach Account
and Account Number]
The section of your prospectus entitled "Your Account," on pages 33-34, listing
the addresses to mail or fax information, or wire money to purchase or sell
shares, should be updated to reflect the information listed above. All other
information in that section remains unchanged. Your current Shareholder Services
telephone number will remain the same. For information on your account, you
should continue to call (800) 222-8222.
Changes to Sales Loads for Class A and B Shares
The Trust's Board of Trustees has approved a new sales load structure for A and
B mutual fund shares to standardize sales loads among all Stagecoach equity and
income (bond) funds to reflect current industry standards. These sales loads
will go into effect for shares purchased beginning July 17, 1999.
<PAGE>
<TABLE>
<S> <C>
A Shares
Breakpoint Load
<$50,000 5.75%
$50,000-99,999 4.75%
$100,000-249,999 3.75%
$250,000-499,999 2.75%
$500,000-999,999 2.00%
>$1,000,000 0.00%
</TABLE>
*We will assess Class A purchases of $1,000,000 or more a 1.00% CDSC if they are
redeemed within one year of the date of purchase. Charges are based on the lower
of the NAV on the date of purchase or the date of redemption.
B Shares
Currently, all Funds of the Trust charge a declining CDSC on Class B shares
redeemed within six years of the date of purchase. The Trust's Board of Trustees
approved changes to the CDSC schedule on Class B shares. The major difference is
that Class B shares purchased beginning July 17, 1999, will not be converted
into Class A shares until Year 8, instead of Year 7. Shareholders who sell Class
B shares in Year 7, however, will not be charged a CDSC. For purchases of Class
B shares after July 17, 1999, the following CDSC Schedule will be in effect:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class B Shares
- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CDSC 5% 4% 3% 3% 2% 1% 0% A shares*
- ------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
*At Year 8 the Class B shares are converted into Class A shares at NAV.
The section of your prospectus entitled "A Choice of Share Class" on page 26
should be updated to reflect the new sales loads for Class A shares and the new
CDSC schedule for Class B shares.
Reduced Sales Charges
Class A shares
Beginning July 17, 1999, purchases of Class A shares of Norwest Advantage Funds
will count towards reductions of sales charges for purchases of Class A shares
of Stagecoach Funds. Currently, through Rights of Accumulation ("ROA"),
Stagecoach shareholders may reduce their sales loads on Class A shares by
accumulating purchases of different Stagecoach Funds to reach one of the
breakpoints listed above. Shareholders also may pay a lower sales charge by
signing a Letter of Intent ("LOI") to invest a specific amount over a breakpoint
within 13 months. Beginning July 17, 1999, Stagecoach shareholders using either
ROAs or LOIs may accumulate purchases of different Stagecoach and Norwest
Advantage Funds to reach a breakpoint in the sales charges for Class A shares.
<PAGE>
Class B shares
Beginning July 17, 1999, there will be one additional way that shareholders may
avoid being charged a CDSC on Class B shares. If you participate in the
Systematic Withdrawal Plan, no CDSC will be charged for withdrawals made under
this program, provided that the withdrawal does not exceed 10% of your Class B
shareholdings of a Fund annually, based on your anniversary date in the Plan.
The sections of the current prospectuses entitled "Reduced Sales Charges" should
be updated to reflect this new information.
Exchanges
Beginning July 17, 1999, Class A shareholders who exchange their shares for
Class A shares of another fund with a higher sales load will not be required to
pay the difference in the sales load.
The section of your prospectus entitled "Exchanges" on page 36 should be updated
to reflect this information.
Wells Fargo is Primary Administrator for each Fund
Currently, Wells Fargo and Stephens Inc. serve as Co-Administrators for each of
the Trust's Funds for annual fees of 0.03% and 0.04%, respectively. On March 25,
1999, the Trust's Board of Trustees approved Wells Fargo to act as the sole
administrator at an annual contract rate of 0.15%. Wells Fargo has agreed to
charge only 0.07% of this annual fee and waive the additional 0.08% of the
contract rate until after the completion of the Reorganization in September
1999. As a result of the waiver, this change will not increase fees for your
Fund at this time.
<PAGE>
[MORRISON & FOERSTER LLP LETTERHEAD]
April 23, 1999
Writer's Direct Dial Number
(202) 463-1018
Via EDGAR
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549
Re: Stagecoach Trust
Registration Nos. 33-64352; 811-7780
Ladies and Gentlemen:
In connection with the registration of Stagecoach Trust under the
Investment Company Act of 1940, and the issuance of securities by it under the
Securities Act of 1933, and pursuant to 17 C.F.R. 230.497(e), we are
transmitting herewith for filing a supplement dated April 23, 1999 to the
prospectus dated November 30, 1998 of the Trust's Funds.
This supplement is being filed to inform shareholders of the recently
approved reorganization of the Funds of the Trust into portfolios of Wells Fargo
Funds Trust, the appointment of a new transfer agent, changes to the Sales Loads
for Class A and B shares for the equity and income Funds, changes to some Sales
Charge reduction programs, and changes to the Funds' Administration
arrangements.
If you have any questions, please contact the undersigned at the number
indicated above.
Very truly yours,
/s/ Eileen M. Smiley
Eileen M. Smiley
