UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Funds Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: June 30, 2003
Date of reporting period: December 31, 2003
ITEM 1. REPORT TO SHAREHOLDERS
===============================
WELLS
FARGO
FUNDS
[GRAPHIC OMITTED]
WELLS FARGO TAX-FREE FUNDS
SEMI-ANNUAL REPORT
WELLS FARGO CALIFORNIA LIMITED TERM TAX-FREE FUND
WELLS FARGO CALIFORNIA TAX-FREE FUND
WELLS FARGO COLORADO TAX-FREE FUND
WELLS FARGO MINNESOTA TAX-FREE FUND
WELLS FARGO NATIONAL LIMITED TERM TAX-FREE FUND
WELLS FARGO NATIONAL TAX-FREE FUND
WELLS FARGO NEBRASKA TAX-FREE FUND
DECEMBER 31, 2003
WELLS FARGO TAX-FREE FUNDS
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TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ..................................................... 1
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PERFORMANCE HIGHLIGHTS
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CALIFORNIA LIMITED TERM TAX-FREE FUND ................................... 2
CALIFORNIA TAX-FREE FUND ................................................ 4
COLORADO TAX-FREE FUND .................................................. 6
MINNESOTA TAX-FREE FUND ................................................. 8
NATIONAL LIMITED TERM TAX-FREE FUND ..................................... 10
NATIONAL TAX-FREE FUND .................................................. 12
NEBRASKA TAX-FREE FUND .................................................. 14
PORTFOLIO OF INVESTMENTS
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CALIFORNIA LIMITED TERM TAX-FREE FUND ................................... 16
CALIFORNIA TAX-FREE FUND ................................................ 22
COLORADO TAX-FREE FUND .................................................. 31
MINNESOTA TAX-FREE FUND ................................................. 35
NATIONAL LIMITED TERM TAX-FREE FUND ..................................... 41
NATIONAL TAX-FREE FUND .................................................. 49
NEBRASKA TAX-FREE FUND .................................................. 60
FINANCIAL STATEMENTS
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STATEMENTS OF ASSETS AND LIABILITIES .................................... 64
STATEMENTS OF OPERATIONS ................................................ 66
STATEMENTS OF CHANGES IN NET ASSETS ..................................... 68
FINANCIAL HIGHLIGHTS .................................................... 72
NOTES TO FINANCIAL HIGHLIGHTS .............................................. 78
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NOTES TO FINANCIAL STATEMENTS .............................................. 79
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BOARD OF TRUSTEES .......................................................... 83
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LIST OF ABBREVIATIONS ...................................................... 85
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NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
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WELLS FARGO TAX-FREE FUNDS
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DEAR VALUED SHAREHOLDER,
We are pleased to provide you with this Wells Fargo Tax-Free Funds
semi-annual report for the six-month period ended December 31, 2003. On the
following pages, you will find a discussion of each Fund, including
performance highlights, the Fund managers' strategic outlook, and facts and
figures about each Fund's portfolio.
THE ECONOMY: RECOVERY ON TRACK
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Impressive gains during the reporting period helped stocks deliver positive
returns for 2003, with the S&P 500 Index posting a six-year gain of about 29%
and the NASDAQ posting a gain of about 50% for the year. Although the year
started slowly, weighed down by the looming threat of war with Iraq, the
reporting period saw signs of economic recovery and renewed investor
interest. By the third quarter, gross domestic product growth levels reached
8.2%. Although fourth quarter growth slowed to a more moderate 3-1/2% - 4%,
this could provide solid footing for the economic recovery to continue into
2004.
ECONOMIC RECOVERY DAMPENS THE BOND MARKET
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In the latter part of the reporting period bond returns reversed their
decline, but still lagged behind stock returns for the first time since 1999,
finishing 2003 with a 4.1% gain for the Lehman Brothers Aggregate Bond Index.
The bond market's pattern of performance throughout 2003 was typical for an
economic expansion.
Municipal securities outperformed taxable securities, as yield differences
between the two markets narrowed, with returns for the six-month reporting
period reflecting the somewhat volatile interest rates. July was a very
difficult month, with the Lehman Brothers Municipal Bond Index returning
(3.50)%. While October was also slightly negative, posting (0.50)%, the other
four months of the period were positive, with September being very strong at
2.94%.
LOOKING AHEAD
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We anticipate that an improving U.S. economy and growing anxiety about
future inflation will gradually cause interest rates to rise over the next
several months. This view is supported by the likelihood that the Federal
Reserve Board (the Fed) will raise the Federal Funds rate beginning around
mid-year 2004. If the Fed raises rates, as most anticipate, it will be the
first increase in four years. The Fed's stated intention of maintaining an
accommodative policy for a "considerable period" shouldn't preclude it from
raising interest rates in 2004 if necessary, because monetary policy now is
so stimulative that a few rate hikes rates may not change the Fed's credit
stance fundamentally. Investors do face the threat of a temporary spike in
bond yields if interest rates begin to rise. The other (less likely) risk is
that intense global competition pushes inflation even lower. This would renew
the threat of deflation, which could force further interest-rate cuts or even
direct purchases of U.S. Treasury bonds by the Fed to push long-term rates
down.
OUR COMMITMENT TO OUR SHAREHOLDERS
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We recognize that there has been a great deal of unsettling news recently
about inappropriate trading practices of some mutual fund companies. We share
the concerns of all investors that these problems need to be addressed fully
to protect the interests of all mutual fund shareholders. We will remain
diligent in our efforts to operate in full compliance with all legal
requirements to protect the interests of all of our shareholders.
Thank you for choosing WELLS FARGO FUNDS. We appreciate the confidence that
you have placed in us. If you have any questions or need further information,
please contact your investment professional, or call us at 1-800-222-8222.
You may also visit our Web site at www.wellsfargofunds.com.
Sincerely,
/s/ KARLA M. RABUSCH
Karla M. Rabusch
President
WELLS FARGO FUNDS
1
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
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CALIFORNIA LIMITED TERM TAX-FREE FUND
INVESTMENT OBJECTIVE
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The Wells Fargo California Limited Term Tax-Free Fund (the Fund) seeks a high
level of current income exempt from federal income tax and California
individual income tax, while preserving capital.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGER
Stephen Galiani
INCEPTION DATE
11/18/92
PERFORMANCE HIGHLIGHTS
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The Fund's Class A shares returned 0.66% 1 for the six-month period ended
December 31, 2003, excluding sales charges, underperforming the Lehman
Brothers 3-Year Municipal Bond Index 2 (the Index), which returned 0.93%. The
Fund's Class A shares distributed $0.11 per share in dividend income and
$0.06 per share in capital gains during the period.
Interest rates were somewhat volatile during the six-month reporting
period. The municipal bond yield curve traded in a 60 to 80 basis point range
across the curve, ending the period 10 to 20 basis points higher than the
beginning of the period. Securities with maturities of less than five years
were the Fund's worst performers. This negatively impacted Fund performance,
as the majority of the Fund's holdings mature or price to maturities of less
than five years.
The Fund lagged behind its benchmark for the period, primarily because the
Fund's portfolio duration was longer than that of the Index for the entire
period. Late in the period, we increased the Fund's exposure to securities in
the three-year duration range in an effort to more closely resemble the
securities comprising the Index. This was accomplished primarily by utilizing
a larger than normal cash position. The reduction in cash resulting from this
strategy, as well as shareholder redemptions, extended the Fund's portfolio
duration substantially from where the duration was at the beginning of the
period.
STRATEGIC OUTLOOK
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We continue to expect the economy to improve and inflation to remain
subdued. Given that outlook, we believe interest rates may rise. We plan to
shorten the Fund's portfolio duration, as well as add holdings to the Fund's
portfolio that offer a more defensive structure in a rising interest rate
environment. Additionally, we will look to add lower investment grade
holdings that offer the potential for higher income for the Fund's portfolio
in an effort to increase this component of the Fund's total return.
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The views expressed are as of December 31, 2003, and are those of the Fund's
manager. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo California Limited Term Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for Class A and Institutional Class shares of the Wells
Fargo California Limited Term Tax-Free Fund for periods prior to November 8,
1999, reflects performance of the Class A and Institutional Class shares of the
Stagecoach California Tax-Free Income Fund, its predecessor fund. Effective at
the close of business November 5, 1999, the Stagecoach and Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. Performance shown for the
Class C shares of the Wells Fargo California Limited Term Tax-Free Fund for the
periods shown prior to August 30, 2002, reflects the performance of the Class A
shares of the Wells Fargo California Limited Term Tax-Free Fund, adjusted to
reflect the Class C sales charges and expenses. For Class A shares, the maximum
front-end sales charge is 3.00%. For Class C shares, the maximum contingent
deferred sales charge is 1.00%. Performance including sales charge assumes the
maximum sales charge for the period shown. Institutional Class shares are sold
without sales charges.
2 The Lehman Brothers 3-Year Municipal Bond Index is an unmanaged index composed
of municipal bonds with an approximate maturity of three years. The total return
of the Index does not include the effect of sales charges, and you cannot invest
directly in an index. Had the Index incurred operating expenses, its performance
would have been lower.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF DECEMBER 31, 2003)
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Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
WELLS FARGO CALIFORNIA LIMITED TERM
TAX-FREE FUND - CLASS A (2.34) (0.73) 3.24 3.83 0.66 2.34 3.86 4.15
WELLS FARGO CALIFORNIA LIMITED TERM
TAX-FREE FUND - CLASS C (0.81) 0.58 2.97 3.26 0.19 1.58 2.97 3.26
WELLS FARGO CALIFORNIA LIMITED TERM
TAX-FREE FUND - INSTITUTIONAL CLASS 0.80 2.64 4.04 4.25
BENCHMARK
LEHMAN BROTHERS 3-YEAR MUNICIPAL BOND INDEX 2 0.93 2.68 4.82 4.86
<FN>
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
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AVERAGE CREDIT QUALITY 4 AA
WEIGHTED AVERAGE COUPON 4.73%
WEIGHTED AVERAGE MATURITY 4.14 years
ESTIMATED DURATION 3.01 years
PORTFOLIO TURNOVER 33%
NET ASSET VALUE (NAV)
(CLASS A, C, I) $10.64, $10.63, $10.47
SEC YIELD 5 (CLASS A, C, I) 1.68%, 1.00%, 1.98%
DISTRIBUTION RATE 6
(CLASS A, C, I) 2.15%, 1.47%, 2.51%
TAXABLE EQUIVALENT YIELD 7
(CLASS A, C, I) 2.85%, 1.70%, 3.36%
ALTERNATIVE MINIMUM TAX (AMT) 8 9.63%
GROWTH OF $10,000 INVESTMENT 9
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo CA Wells Fargo CA
Limited Term Lehman Brothers 3-Year Limited Term
Tax-Free Fund - Class A Municipal Bond Index Tax-Free Fund - Class I
Dec-93 9,700 $10,000 $10,000
Jan-94 9,769 10,081 10,071
Feb-94 9,630 9,987 9,927
Mar-94 9,521 9,866 9,815
Apr-94 9,553 9,925 9,848
May-94 9,586 9,971 9,882
Jun-94 9,571 9,974 9,867
Jul-94 9,662 10,057 9,960
Aug-94 9,677 10,093 9,976
Sep-94 9,642 10,068 9,940
Oct-94 9,608 10,044 9,905
Nov-94 9,544 10,026 9,839
Dec-94 9,593 10,069 9,890
Jan-95 9,702 10,152 10,001
Feb-95 9,837 10,260 10,141
Mar-95 9,920 10,351 10,226
Apr-95 9,939 10,386 10,246
May-95 10,079 10,545 10,391
Jun-95 10,083 10,571 10,394
Jul-95 10,171 10,682 10,485
Aug-95 10,242 10,766 10,559
Sep-95 10,284 10,797 10,602
Oct-95 10,345 10,848 10,665
Nov-95 10,417 10,917 10,739
Dec-95 10,470 10,962 10,794
Jan-96 10,555 11,048 10,881
Feb-96 10,545 11,050 10,871
Mar-96 10,477 11,024 10,800
Apr-96 10,480 11,037 10,803
May-96 10,477 11,047 10,800
Jun-96 10,529 11,112 10,854
Jul-96 10,604 11,174 10,931
Aug-96 10,611 11,191 10,939
Sep-96 10,681 11,259 11,012
Oct-96 10,764 11,338 11,088
Nov-96 10,882 11,445 11,222
Dec-96 10,873 11,450 11,213
Jan-97 10,921 11,501 11,253
Feb-97 10,974 11,557 11,308
Mar-97 10,891 11,497 11,232
Apr-97 10,936 11,546 11,268
May-97 11,037 11,641 11,384
Jun-97 11,102 11,710 11,452
Jul-97 11,255 11,849 11,602
Aug-97 11,228 11,825 11,573
Sep-97 11,295 11,909 11,643
Oct-97 11,333 11,963 11,683
Nov-97 11,356 11,998 11,706
Dec-97 11,430 12,079 11,784
Jan-98 11,534 12,159 11,893
Feb-98 11,544 12,185 11,905
Mar-98 11,536 12,204 11,896
Apr-98 11,505 12,187 11,863
May-98 11,608 12,300 11,971
Jun-98 11,643 12,342 12,008
Jul-98 11,693 12,387 12,060
Aug-98 11,850 12,507 12,225
Sep-98 11,987 12,587 12,357
Oct-98 12,003 12,647 12,385
Nov-98 12,039 12,677 12,422
Dec-98 12,054 12,708 12,435
Jan-99 12,173 12,824 12,560
Feb-99 12,138 12,838 12,523
Mar-99 12,164 12,849 12,563
Apr-99 12,169 12,889 12,556
May-99 12,123 12,871 12,508
Jun-99 11,973 12,794 12,363
Jul-99 12,047 12,858 12,428
Aug-99 12,025 12,873 12,405
Sep-99 12,074 12,922 12,468
Oct-99 12,041 12,923 12,435
Nov-99 12,102 12,980 12,487
Dec-99 12,058 12,959 12,454
Jan-00 12,097 12,983 12,495
Feb-00 12,147 13,024 12,549
Mar-00 12,240 13,092 12,647
Apr-00 12,211 13,093 12,618
May-00 12,234 13,106 12,642
Jun-00 12,413 13,273 12,832
Jul-00 12,508 13,380 12,932
Aug-00 12,641 13,483 13,073
Sep-00 12,612 13,488 13,043
Oct-00 12,672 13,563 13,107
Nov-00 12,731 13,619 13,169
Dec-00 12,879 13,770 13,326
Jan-01 13,034 13,979 13,477
Feb-01 13,059 14,032 13,504
Mar-01 13,098 14,130 13,560
Apr-01 12,986 14,109 13,442
May-01 13,086 14,239 13,549
Jun-01 13,159 14,303 13,627
Jul-01 13,271 14,420 13,747
Aug-01 13,422 14,570 13,906
Sep-01 13,429 14,643 13,902
Oct-01 13,527 14,738 14,019
Nov-01 13,455 14,693 13,931
Dec-01 13,420 14,678 13,908
Jan-02 13,573 14,864 14,057
Feb-02 13,683 14,976 14,174
Mar-02 13,431 14,753 13,924
Apr-02 13,633 14,970 14,138
May-02 13,745 15,057 14,243
Jun-02 13,817 15,186 14,334
Jul-02 13,928 15,304 14,452
Aug-02 14,052 15,402 14,570
Sep-02 14,239 15,524 14,769
Oct-02 14,018 15,527 14,551
Nov-02 14,032 15,443 14,569
Dec-02 14,234 15,666 14,771
Jan-03 14,197 15,714 14,734
Feb-03 14,317 15,816 14,864
Mar-03 14,291 15,797 14,854
Apr-03 14,357 15,840 14,913
May-03 14,504 15,962 15,071
Jun-03 14,472 15,937 15,041
Jul-03 14,223 15,793 14,796
Aug-03 14,301 15,874 14,866
Sep-03 14,527 16,112 15,109
Oct-03 14,484 16,036 15,067
Nov-03 14,537 16,050 15,126
Dec-03 14,568 16,084 15,160
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (53%)
AA (11%)
A (11%)
BBB (16%)
SP1 (7%)
Unrated (2%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (15%)
1-5 Years (36%)
5-10 Years (41%)
10-20 Years (8%)
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3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the combined federal and state income tax rate of 41.05%. Any
capital gains distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo California Limited Term
Tax-Free Fund Class A and Institutional Class shares for the most recent ten
years with the Lehman Brothers 3-Year Municipal Bond Index. The chart assumes a
hypothetical $10,000 investment in Class A and Institutional Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 3.00%.
3
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
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CALIFORNIA TAX-FREE FUND
INVESTMENT OBJECTIVE
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The Wells Fargo California Tax-Free Fund (the Fund) seeks to provide
investors with a high level of current income exempt from federal income tax
and California individual income tax, while preserving capital, by investing
in intermediate- to long-term investment-grade municipal securities.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGER
Stephen Galiani
INCEPTION DATE
10/06/88
PERFORMANCE HIGHLIGHTS
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The Fund's Class A shares returned 1.24% 1 for the six-month period ended
December 31, 2003, excluding sales charges, underperforming the Lehman
Brothers Municipal Bond Index 2 (the Index), which returned 1.45% during the
period. The Fund's Class A shares distributed $0.25 per share in dividend
income and $0.10 per share in capital gains during the period.
Interest rates were somewhat volatile during the second half of 2003. The
Fund's performance for the period was predominately driven by this volatility
and the State of California's fiscal problems. State of California General
Obligation bonds underperformed as compared to the Index, which helped the
Fund's performance since the Fund held an underweight position in the State
General Obligation credit. However, other California municipal bonds also
underperformed because of the state's credit problems, negatively affecting
Fund performance. In general, California municipal bonds, both State and
local, general obligation and revenue, underperformed as compared to the
national municipal market. This caused the Fund to underperform the Index,
which consists predominantly of municipal securities from other states.
Lower quality bonds were the Fund's best performing holdings during the
period. Long, high coupon, callable bonds performed better than bonds with
mid-range maturities having similar durations because investors favored their
"kicker bond" structure. Kicker bonds in this case refer to higher coupon
(generally 5.0% to 5.75%) bonds with final maturities greater than 15 years
and first call dates of seven to ten years. These bonds have the defensive
characteristics of intermediate bonds, but somewhat higher yields of longer
maturity bonds.
No major shifts were made to the Fund's portfolio as we maintained a
generally defensive posture during the entire period. We took advantage of
the sell-off that occurred within the California municipal market during July
by adding a number of securities to the Fund's portfolio at favorable prices.
In addition, in early December, we temporarily increased the Fund's portfolio
duration in an effort to take advantage of the market's strength.
STRATEGIC OUTLOOK
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We believe that an improving U.S. economy and growing investor anxiety
about future inflation could gradually cause interest rates to rise in coming
months if the domestic employment figures indicate clear evidence of an
economic recovery. We believe that increasing the Fund's portfolio exposure
to higher-yielding securities may be prudent.
The fiscal condition of the State of California will also continue to
impact market returns. At the end of the period, the Fund had very little
exposure to State of California General Obligation bonds. We will continue to
monitor California's credit situation closely, seeking to identify
opportunities and risks in the California municipal market as they arise.
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The views expressed are as of December 31, 2003, and are those of the Fund's
manager. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo California Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for Class A, Class B, Class C and Institutional Class
shares of the California Tax-Free Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B, Class C and Institutional Class
shares of the Stagecoach California Tax-Free Bond Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Stagecoach and Norwest
Advantage Funds were reorganized into the Wells Fargo Funds. Performance shown
for the Class A shares for periods prior to December 12, 1997, reflects
performance of the Class A shares of the Overland Express California Tax-Free
Bond Fund (the accounting survivor of a merger of the Stagecoach and Overland
Funds on December 12, 1997). Performance shown for the Class C shares of the
Fund reflects performance of the Class D shares of the Overland Fund.
Performance shown for the Class B shares of the Fund for periods prior to
December 12, 1997, reflects performance of the Class D shares of the Overland
Fund. For Class A shares, the maximum front-end sales charge is 4.50%. The
maximum contingent deferred sales charge (CDSC) for Class B shares is 5.00%. For
Class C shares, the maximum front-end sales charge is 1.00% and the maximum CDSC
is 1.00%. Effective February 1, 2004, the 1.00% front-end sales charge for Class
C shares will be eliminated. Performance including sales charge assumes the
maximum sales charge for the period shown. Institutional Class shares are sold
without sales charges.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
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AVERAGE ANNUAL TOTAL RETURN1 (%) ( AS OF DECEMBER 31, 2003)
- ----------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
WELLS FARGO CALIFORNIA
TAX-FREE FUND - CLASS A (3.35) (0.17) 4.15 5.15 1.24 4.53 5.11 5.63
WELLS FARGO CALIFORNIA
TAX-FREE FUND - CLASS B (4.15) (1.41) 3.98 4.85 0.85 3.59 4.32 4.85
WELLS FARGO CALIFORNIA
TAX-FREE FUND - CLASS C (1.16) 1.55 4.10 4.74 0.85 3.59 4.32 4.85
WELLS FARGO CALIFORNIA
TAX-FREE FUND - INSTITUTIONAL CLASS 1.37 4.70 5.27 5.72
BENCHMARK
LEHMAN BROTHERS MUNICIPAL BOND INDEX 2 1.45 5.31 5.83 6.03
<FN>
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA
WEIGHTED AVERAGE COUPON 4.72%
WEIGHTED AVERAGE MATURITY 17.39 years
ESTIMATED DURATION 6.71 years
PORTFOLIO TURNOVER 21%
NET ASSET VALUE (NAV)
(CLASS A, B, C, I) $11.35, $11.57, $11.57, $11.37
SEC YIELD 5
(Class A, B, C, I) 3.66%, 3.08%, 3.05%, 4.08%
DISTRIBUTION RATE 6
(CLASS A, B, C, I) 4.26%, 3.61%, 3.57%, 4.70%
TAXABLE EQUIVALENT YIELD 7
(CLASS A, B, C, I) 6.21%, 5.22%, 5.17%, 6.92%
ALTERNATIVE MINIMUM TAX (AMT) 8 9.90%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo CA Lehman Brothers Wells Fargo CA
Tax-Free Fund - Class A Municipal Bond Index Tax-Free Fund - Class I
Dec-93 $ 9,550 $10,000 $10,000
Jan-94 9,669 10,114 10,125
Feb-94 9,480 9,852 9,926
Mar-94 9,163 9,451 9,594
Apr-94 9,148 9,531 9,579
May-94 9,244 9,614 9,680
Jun-94 9,221 9,556 9,655
Jul-94 9,378 9,731 9,820
Aug-94 9,415 9,765 9,858
Sep-94 9,305 9,621 9,743
Oct-94 9,169 9,450 9,600
Nov-94 9,005 9,279 9,429
Dec-94 9,137 9,483 9,568
Jan-95 9,391 9,754 9,833
Feb-95 9,619 10,038 10,072
Mar-95 9,703 10,153 10,160
Apr-95 9,706 10,166 10,163
May-95 9,999 10,490 10,470
Jun-95 9,863 10,399 10,327
Jul-95 9,923 10,497 10,390
Aug-95 10,052 10,631 10,525
Sep-95 10,135 10,698 10,612
Oct-95 10,319 10,853 10,805
Nov-95 10,513 11,033 11,008
Dec-95 10,634 11,139 11,135
Jan-96 10,689 11,224 11,192
Feb-96 10,593 11,147 11,092
Mar-96 10,430 11,005 10,922
Apr-96 10,385 10,974 10,874
May-96 10,393 10,970 10,883
Jun-96 10,514 11,089 11,010
Jul-96 10,630 11,189 11,131
Aug-96 10,638 11,187 11,139
Sep-96 10,801 11,343 11,310
Oct-96 10,918 11,471 11,432
Nov-96 11,130 11,681 11,654
Dec-96 11,063 11,632 11,584
Jan-97 11,083 11,654 11,604
Feb-97 11,190 11,762 11,717
Mar-97 11,033 11,605 11,552
Apr-97 11,132 11,703 11,656
May-97 11,299 11,879 11,831
Jun-97 11,397 12,007 11,934
Jul-97 11,769 12,339 12,323
Aug-97 11,633 12,223 12,181
Sep-97 11,765 12,369 12,319
Oct-97 11,837 12,448 12,395
Nov-97 11,892 12,521 12,452
Dec-97 12,055 12,704 12,623
Jan-98 12,211 12,835 12,787
Feb-98 12,212 12,839 12,777
Mar-98 12,204 12,850 12,782
Apr-98 12,154 12,792 12,730
May-98 12,354 12,995 12,928
Jun-98 12,400 13,045 12,977
Jul-98 12,418 13,078 13,008
Aug-98 12,627 13,281 13,226
Sep-98 12,827 13,447 13,436
Oct-98 12,821 13,447 13,431
Nov-98 12,866 13,494 13,478
Dec-98 12,876 13,527 13,491
Jan-99 13,037 13,688 13,648
Feb-99 12,968 13,628 13,587
Mar-99 13,016 13,647 13,627
Apr-99 13,021 13,681 13,645
May-99 12,907 13,602 13,526
Jun-99 12,690 13,406 13,300
Jul-99 12,730 13,454 13,343
Aug-99 12,582 13,347 13,188
Sep-99 12,596 13,352 13,192
Oct-99 12,414 13,208 13,003
Nov-99 12,557 13,348 13,168
Dec-99 12,406 13,248 13,012
Jan-00 12,340 13,189 12,945
Feb-00 12,557 13,342 13,161
Mar-00 12,874 13,633 13,507
Apr-00 12,758 13,553 13,375
May-00 12,705 13,482 13,334
Jun-00 13,084 13,840 13,721
Jul-00 13,297 14,032 13,946
Aug-00 13,584 14,248 14,261
Sep-00 13,504 14,174 14,166
Oct-00 13,597 14,329 14,279
Nov-00 13,714 14,437 14,403
Dec-00 14,106 14,794 14,803
Jan-01 14,163 14,940 14,879
Feb-01 14,216 14,988 14,936
Mar-01 14,299 15,123 15,012
Apr-01 14,092 14,960 14,797
May-01 14,250 15,121 14,978
Jun-01 14,331 15,223 15,065
Jul-01 14,554 15,448 15,302
Aug-01 14,881 15,703 15,647
Sep-01 14,834 15,650 15,601
Oct-01 14,983 15,836 15,759
Nov-01 14,871 15,703 15,630
Dec-01 14,697 15,554 15,464
Jan-02 14,889 15,823 15,668
Feb-02 15,036 16,013 15,824
Mar-02 14,712 15,699 15,487
Apr-02 14,944 16,005 15,732
May-02 15,058 16,102 15,841
Jun-02 15,144 16,273 15,947
Jul-02 15,300 16,483 16,114
Aug-02 15,511 16,681 16,338
Sep-02 15,884 17,046 16,732
Oct-02 15,540 16,763 16,373
Nov-02 15,520 16,693 16,341
Dec-02 15,806 17,045 16,660
Jan-03 15,727 17,002 16,566
Feb-03 15,933 17,240 16,786
Mar-03 15,937 17,251 16,794
Apr-03 16,093 17,365 16,961
May-03 16,418 17,771 17,322
Jun-03 16,320 17,695 17,207
Jul-03 15,730 17,075 16,590
Aug-03 15,860 17,203 16,730
Sep-03 16,288 17,709 17,184
Oct-03 16,222 17,621 17,118
Nov-03 16,426 17,804 17,337
Dec-03 16,523 17,952 17,442
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (47%)
AA (5%)
A1 (11%)
BBB (21%)
SP1 (1%)
Unrated (15%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (1%)
1-5 Years (5%)
6-10 Years (10%)
11-20 Years (49%)
21 + Years (35%)
- --------------------------------------------------------------------------------
2 The Lehman Brothers Municipal Bond Index is an unmanaged index composed of
municipal bonds. The total return of the Index does not include the effect of
sales charges, and you cannot invest directly in an index. Had the Index
incurred operating expenses, its performance would have been lower.
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the combined federal and state income tax rate of 41.05%. Any
capital gains distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo California Tax-Free
Fund Class A and Institutional Class shares for the most recent ten years with
the Lehman Brothers Municipal Bond Index. The chart assumes a hypothetical
$10,000 investment in Class A and Institutional Class shares and reflects all
operating expenses and, for Class A shares, assumes the maximum initial sales
charge of 4.50%.
5
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Colorado Tax-Free Fund (the Fund) seeks a high level of
current income exempt from federal income tax and Colorado individual income
tax consistent with the preservation of capital.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGERS
Stephen Galiani
Arthur C. Evans
INCEPTION DATE
06/01/93
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 1.79% 1 during the six-month period
ended December 31, 2003, excluding sales charges, outperforming the Lehman
Brothers Municipal Bond Index 2, which returned 1.45%. The Fund's Class A
shares distributed $0.24 per share in dividend income and no capital gains
during the period.
Interest rate volatility was the primary driver of Fund performance during
the period. To address volatility concerns, the Fund maintained a shorter
duration posture and focused on relative value trading and managing purchases
and sales activity. The Fund's holdings in high yielding, short-duration
securities benefited the Fund's performance during the period of volatile
interest rates.
In general, the Fund's best performers were its holdings in
lower-investment grade securities that benefited from their higher income
levels and positive price performance. The Fund also held one charter school
revenue bond that was pre-refunded during the period, leading to a dramatic
one-time gain. The Fund's exposure to single-family housing revenue bonds
detracted from performance, as an acceleration in prepayment activity driven
by the low interest rate environment led to many premium bonds being called
at par.
Our strategy remained consistent throughout the period: targeting a
defensive posture while seeking to capture relative value opportunities in a
volatile interest rate environment. The majority of the Fund's trades were
made to sell some of the Fund's lower-investment grade holdings at narrow
credit spreads, and invest the proceeds in new issues with more attractive
spread premiums.
STRATEGIC OUTLOOK
- --------------------------------------------------------------------------------
We expect that an improving U.S. economy and growing anxiety about future
inflation could gradually cause interest rates to rise over the next several
months, particularly if the domestic employment figures signal clear evidence
of an economic recovery. In the meantime, we expect to remain in a fairly
narrow trading range. This will require us to derive incremental returns
through continued value oriented trading and detailed credit analysis.
- --------------------------------------------------------------------------------
The views expressed are as of December 31, 2003, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo Colorado Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for Class A, Class B and Institutional Class shares of the
Wells Fargo Colorado Tax-Free Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Colorado Tax-Free Fund, its predecessor fund. Effective at
the close of business November 5, 1999, the Stagecoach and Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. For Class A shares, the
maximum front-end sales charge is 4.50%. The maximum contingent deferred sales
charge for Class B shares is 5.00%. Performance including sales charge assumes
the maximum sales charge for the period shown. Institutional Class shares are
sold without sales charges.
2 The Lehman Brothers Municipal Bond Index is an unmanaged index composed of
municipal bonds. The total return of the Index does not include the effect of
sales charges, and you cannot invest directly in an index. Had the Index
incurred operating expenses, its performance would have been lower.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) ( AS OF DECEMBER 31, 2003)
- ----------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
WELLS FARGO COLORADO
TAX-FREE FUND - CLASS A (2.79) (0.11) 4.52 5.36 1.79 4.59 5.49 5.85
WELLS FARGO COLORADO
TAX-FREE FUND - CLASS B (3.60) (1.29) 4.36 5.05 1.40 3.71 4.70 5.05
WELLS FARGO COLORADO
TAX-FREE FUND - INSTITUTIONAL CLASS 1.91 4.85 5.55 5.88
BENCHMARK
LEHMAN BROTHERS MUNICIPAL BOND INDEX 2 1.45 5.31 5.83 6.03
<FN>
* RETURNS FOR PERIOD OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA+
WEIGHTED AVERAGE COUPON 5.62%
WEIGHTED AVERAGE MATURITY 12.37 years
ESTIMATED AVERAGE DURATION 5.21 years
PORTFOLIO TURNOVER 9%
NET ASSET VALUE (NAV)
(CLASS A, B, I) $10.96, $10.97, $10.96
SEC YIELD 5 (CLASS A, B, I) 3.87%, 3.31%, 4.30%
DISTRIBUTION RATE 6
(CLASS A, B, I) 4.12%, 3.56%, 4.56%
TAXABLE EQUIVALENT YIELD 7
(CLASS A, B, I) 6.24%, 5.34%, 6.94%
ALTERNATIVE MINIMUM TAX (AMT) 8 8.01%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo CO Lehman Brothers Wells Fargo CO
Tax-Free Fund - Class A Municipal Bond Index Tax-Free Fund - Class I
Dec-93 $ 9,550 $10,000 $10,000
Jan-94 9,699 10,114 10,156
Feb-94 9,410 9,852 9,854
Mar-94 9,026 9,451 9,461
Apr-94 9,051 9,531 9,478
May-94 9,144 9,614 9,575
Jun-94 9,076 9,556 9,504
Jul-94 9,228 9,731 9,663
Aug-94 9,257 9,765 9,694
Sep-94 9,116 9,621 9,546
Oct-94 8,970 9,450 9,393
Nov-94 8,806 9,279 9,221
Dec-94 8,984 9,483 9,407
Jan-95 9,166 9,754 9,598
Feb-95 9,408 10,038 9,861
Mar-95 9,490 10,153 9,948
Apr-95 9,518 10,166 9,966
May-95 9,827 10,490 10,290
Jun-95 9,752 10,399 10,211
Jul-95 9,862 10,497 10,326
Aug-95 10,006 10,631 10,477
Sep-95 10,061 10,698 10,534
Oct-95 10,205 10,853 10,685
Nov-95 10,381 11,033 10,880
Dec-95 10,511 11,139 11,006
Jan-96 10,587 11,224 11,085
Feb-96 10,506 11,147 11,012
Mar-96 10,377 11,005 10,877
Apr-96 10,321 10,974 10,818
May-96 10,353 10,970 10,840
Jun-96 10,481 11,089 10,975
Jul-96 10,605 11,189 11,104
Aug-96 10,585 11,187 11,083
Sep-96 10,758 11,343 11,264
Oct-96 10,882 11,471 11,395
Nov-96 11,028 11,681 11,547
Dec-96 11,023 11,632 11,543
Jan-97 11,085 11,654 11,607
Feb-97 11,161 11,762 11,687
Mar-97 11,011 11,605 11,529
Apr-97 11,114 11,703 11,637
May-97 11,284 11,879 11,816
Jun-97 11,398 12,007 11,935
Jul-97 11,770 12,339 12,324
Aug-97 11,586 12,223 12,131
Sep-97 11,746 12,369 12,311
Oct-97 11,864 12,448 12,423
Nov-97 11,936 12,521 12,510
Dec-97 12,158 12,704 12,730
Jan-98 12,267 12,835 12,856
Feb-98 12,267 12,839 12,845
Mar-98 12,272 12,850 12,850
Apr-98 12,161 12,792 12,746
May-98 12,408 12,995 12,993
Jun-98 12,458 13,045 13,044
Jul-98 12,474 13,078 13,062
Aug-98 12,689 13,281 13,287
Sep-98 12,879 13,447 13,486
Oct-98 12,775 13,447 13,377
Nov-98 12,870 13,494 13,476
Dec-98 12,904 13,527 13,512
Jan-99 13,040 13,688 13,654
Feb-99 12,929 13,628 13,538
Mar-99 12,921 13,647 13,530
Apr-99 12,960 13,681 13,583
May-99 12,879 13,602 13,485
Jun-99 12,625 13,406 13,219
Jul-99 12,642 13,454 13,237
Aug-99 12,487 13,347 13,075
Sep-99 12,393 13,352 12,977
Oct-99 12,226 13,208 12,802
Nov-99 12,356 13,348 12,938
Dec-99 12,197 13,248 12,784
Jan-00 12,066 13,189 12,634
Feb-00 12,298 13,342 12,877
Mar-00 12,597 13,633 13,204
Apr-00 12,515 13,553 13,104
May-00 12,381 13,482 12,964
Jun-00 12,734 13,840 13,348
Jul-00 12,949 14,032 13,573
Aug-00 13,204 14,248 13,826
Sep-00 13,105 14,174 13,736
Oct-00 13,270 14,329 13,895
Nov-00 13,383 14,437 14,013
Dec-00 13,873 14,794 14,526
Jan-01 13,966 14,940 14,638
Feb-01 14,053 14,988 14,715
Mar-01 14,171 15,123 14,839
Apr-01 13,919 14,960 14,575
May-01 14,062 15,121 14,738
Jun-01 14,204 15,223 14,887
Jul-01 14,483 15,448 15,166
Aug-01 14,791 15,703 15,488
Sep-01 14,712 15,650 15,420
Oct-01 14,884 15,836 15,585
Nov-01 14,749 15,703 15,444
Dec-01 14,619 15,554 15,307
Jan-02 14,824 15,823 15,522
Feb-02 15,009 16,013 15,716
Mar-02 14,719 15,699 15,427
Apr-02 14,979 16,005 15,700
May-02 15,070 16,102 15,795
Jun-02 15,246 16,273 15,979
Jul-02 15,569 16,483 16,317
Aug-02 15,778 16,681 16,521
Sep-02 16,160 17,046 16,921
Oct-02 15,832 16,763 16,578
Nov-02 15,760 16,693 16,506
Dec-02 16,116 17,045 16,882
Jan-03 16,032 17,002 16,797
Feb-03 16,250 17,240 17,029
Mar-03 16,237 17,251 17,019
Apr-03 16,355 17,365 17,146
May-03 16,696 17,771 17,508
Jun-03 16,560 17,695 17,369
Jul-03 16,034 17,075 16,821
Aug-03 16,201 17,203 16,999
Sep-03 16,611 17,709 17,433
Oct-03 16,536 17,621 17,358
Nov-03 16,718 17,804 17,553
Dec-03 16,856 17,952 17,701
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (45%)
AA (23%)
A (8%)
BBB (9%)
SP1 (1%)
Cash (5%)
Unrated (9%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (10%)
6-10 Years (10%)
11-20 Years (66%)
21 + Years (14%)
- --------------------------------------------------------------------------------
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the combined federal and state income tax rate of 38.01%. Any
capital gains distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo Colorado Tax-Free Fund
Class A and Institutional Class shares for the most recent ten years with the
Lehman Brothers Municipal Bond Index. The chart assumes a hypothetical $10,000
investment in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
4.50%.
7
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Minnesota Tax-Free Fund (the Fund) seeks a high level of
current income exempt from federal income tax and Minnesota individual income
tax, without assuming undue risk.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGER
Patricia Hovanetz, CFA
INCEPTION DATE
01/12/88
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 1.36% 1 for the six-month period ended
December 31, 2003, excluding sales charges, underperforming the Lehman
Brothers Municipal Bond Index 2 (the Index), which returned 1.45%. The Fund's
Class A shares distributed $0.23 per share in dividend income and no capital
gains during the period.
The volatile interest rate environment was the primary determinant of Fund
performance during the period. In keeping with our investment strategy, we
maintained the Fund's portfolio duration slightly short of the Index. The
Fund underperformed its benchmark primarily due to differences between a
specialty state market and the national municipal market.
The Fund's best performers were lower quality securities, whose prices were
changed little over the period. In light of that, income return increased in
importance within the total return equation. High coupon, callable long bonds
performed better than mid-range maturities having similar durations because
investors favored the "kicker bond" structure. Kicker bonds in this case
refer to higher coupon (generally 5.0% to 7.5%) bonds with final maturities
of three to ten years, which have at the time of purchase call dates inside
of 18 months. Once these bonds have passed the first call date, the yield
"kicks" to the higher yield to maturity.
No major shifts were made within the Fund's portfolio and its duration
strategy remained slightly short of the benchmark throughout the period. Our
goal during the period was to add good quality, higher yielding holdings to
the Fund's portfolio as we sought to enhance its yield. However, the
Minnesota market had a shortage of municipal securities available and very
strong demand, so we had only limited success implementing this strategy.
STRATEGIC OUTLOOK
- --------------------------------------------------------------------------------
We anticipate that an improving U.S. economy and growing anxiety about
future inflation may gradually cause interest rates to rise over the next
several months. In the meantime, we expect to seek incremental returns
through value-oriented trading and detailed credit analysis within a fairly
narrow trading range.
- --------------------------------------------------------------------------------
The views expressed are as of December 31, 2003, and are those of the Fund's
manager. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo Minnesota Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for Class A, Class B and Institutional Class shares of the
Wells Fargo Minnesota Tax-Free Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B and Institutional Class shares of
the Norwest Advantage Minnesota Tax-Free Fund, its predecessor fund. Effective
at the close of business November 5, 1999, the Stagecoach and Norwest Advantage
Funds were reorganized into the Wells Fargo Funds. For Class A shares, the
maximum front-end sales charge is 4.50%. The maximum contingent deferred sales
charge for Class B shares is 5.00%. Performance including sales charge assumes
the maximum sales charge for the period shown. Institutional Class shares are
sold without sales charges.
2 The Lehman Brothers Municipal Bond Index is an unmanaged index composed of
municipal bonds. The total return of the Index does not include the effect of
sales charges, and you cannot invest directly in an index. Had the Index
incurred operating expenses, its performance would have been lower.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF DECEMBER 31, 2003)
- ----------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
WELLS FARGO MINNESOTA
TAX-FREE FUND - CLASS A (3.20) 0.28 4.00 4.90 1.36 5.01 4.96 5.38
WELLS FARGO MINNESOTA
TAX-FREE FUND - CLASS B (4.02) (0.77) 3.86 4.60 0.98 4.23 4.20 4.60
WELLS FARGO MINNESOTA
TAX-FREE FUND - INSTITUTIONAL CLASS 1.49 5.36 5.02 5.41
BENCHMARK
LEHMAN BROTHERS MUNICIPAL BOND INDEX 2 1.45 5.31 5.83 6.03
<FN>
*RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA
WEIGHTED AVERAGE COUPON 5.02%
WEIGHTED AVERAGE MATURITY 12.71 years
ESTIMATED DURATION 5.21 years
PORTFOLIO TURNOVER 2%
NET ASSET VALUE (NAV)
(CLASS A, B, I) $11.19, $11.19, $11.19
SEC YIELD 5
(CLASS A, B, I) 3.58%, 3.00%, 4.00%
DISTRIBUTION RATE 6
(CLASS A, B, I) 3.83%, 3.27%, 4.26%
TAXABLE EQUIVALENT YIELD 7
(CLASS A, B, I) 5.98%, 5.01%, 6.68%
ALTERNATIVE MINIMUM TAX (AMT) 8 1.08%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo Minnesota Lehman Brothers Wells Fargo Minnesota
Tax-Free Fund - Class A Municipal Bond Index Tax-Free Fund - Class I
Dec-93 $ 9,550 $10,000 $10,000
Jan-94 9,648 10,114 10,112
Feb-94 9,392 9,852 9,834
Mar-94 9,018 9,451 9,452
Apr-94 9,053 9,531 9,489
May-94 9,126 9,614 9,565
Jun-94 9,063 9,556 9,499
Jul-94 9,164 9,731 9,596
Aug-94 9,220 9,765 9,655
Sep-94 9,069 9,621 9,496
Oct-94 8,931 9,450 9,351
Nov-94 8,756 9,279 9,169
Dec-94 8,977 9,483 9,409
Jan-95 9,239 9,754 9,675
Feb-95 9,513 10,038 9,961
Mar-95 9,591 10,153 10,042
Apr-95 9,595 10,166 10,047
May-95 9,906 10,490 10,373
Jun-95 9,812 10,399 10,274
Jul-95 9,866 10,497 10,331
Aug-95 9,980 10,631 10,450
Sep-95 10,037 10,698 10,510
Oct-95 10,207 10,853 10,688
Nov-95 10,397 11,033 10,887
Dec-95 10,521 11,139 11,017
Jan-96 10,584 11,224 11,083
Feb-96 10,489 11,147 10,994
Mar-96 10,336 11,005 10,823
Apr-96 10,301 10,974 10,786
May-96 10,299 10,970 10,785
Jun-96 10,430 11,089 10,922
Jul-96 10,516 11,189 11,011
Aug-96 10,485 11,187 10,979
Sep-96 10,658 11,343 11,160
Oct-96 10,775 11,471 11,282
Nov-96 10,965 11,681 11,481
Dec-96 10,919 11,632 11,434
Jan-97 10,917 11,654 11,431
Feb-97 11,002 11,762 11,520
Mar-97 10,850 11,605 11,361
Apr-97 10,969 11,703 11,485
May-97 11,121 11,879 11,645
Jun-97 11,230 12,007 11,759
Jul-97 11,573 12,339 12,118
Aug-97 11,419 12,223 11,968
Sep-97 11,571 12,369 12,117
Oct-97 11,662 12,448 12,212
Nov-97 11,731 12,521 12,283
Dec-97 11,919 12,704 12,481
Jan-98 12,044 12,835 12,612
Feb-98 12,045 12,839 12,612
Mar-98 12,049 12,850 12,617
Apr-98 11,965 12,792 12,529
May-98 12,201 12,995 12,776
Jun-98 12,249 13,045 12,826
Jul-98 12,265 13,078 12,843
Aug-98 12,481 13,281 13,081
Sep-98 12,663 13,447 13,259
Oct-98 12,577 13,447 13,169
Nov-98 12,635 13,494 13,231
Dec-98 12,661 13,527 13,258
Jan-99 12,779 13,688 13,381
Feb-99 12,721 13,628 13,320
Mar-99 12,725 13,647 13,324
Apr-99 12,761 13,681 13,363
May-99 12,684 13,602 13,282
Jun-99 12,478 13,406 13,066
Jul-99 12,471 13,454 13,059
Aug-99 12,266 13,347 12,845
Sep-99 12,153 13,352 12,726
Oct-99 11,936 13,208 12,498
Nov-99 12,047 13,348 12,614
Dec-99 11,910 13,248 12,471
Jan-00 11,809 13,189 12,365
Feb-00 12,052 13,342 12,620
Mar-00 12,372 13,633 12,955
Apr-00 12,268 13,553 12,846
May-00 12,166 13,482 12,739
Jun-00 12,476 13,840 13,064
Jul-00 12,667 14,032 13,264
Aug-00 12,859 14,248 13,465
Sep-00 12,790 14,174 13,392
Oct-00 12,933 14,329 13,542
Nov-00 13,026 14,437 13,639
Dec-00 13,396 14,794 14,041
Jan-01 13,455 14,940 14,089
Feb-01 13,545 14,988 14,184
Mar-01 13,654 15,123 14,298
Apr-01 13,494 14,960 14,130
May-01 13,655 15,121 14,298
Jun-01 13,763 15,223 14,412
Jul-01 13,989 15,448 14,649
Aug-01 14,216 15,703 14,886
Sep-01 14,143 15,650 14,809
Oct-01 14,305 15,836 14,979
Nov-01 14,177 15,703 14,846
Dec-01 14,104 15,554 14,768
Jan-02 14,265 15,823 14,938
Feb-02 14,450 16,013 15,131
Mar-02 14,202 15,699 14,871
Apr-02 14,446 16,005 15,127
May-02 14,532 16,102 15,216
Jun-02 14,669 16,273 15,361
Jul-02 14,863 16,483 15,563
Aug-02 15,030 16,681 15,738
Sep-02 15,331 17,046 16,068
Oct-02 15,088 16,763 15,799
Nov-02 15,004 16,693 15,714
Dec-02 15,362 17,045 16,078
Jan-03 15,306 17,002 16,037
Feb-03 15,549 17,240 16,295
Mar-03 15,561 17,251 16,311
Apr-03 15,711 17,365 16,457
May-03 16,059 17,771 16,826
Jun-03 15,914 17,695 16,692
Jul-03 15,334 17,075 16,086
Aug-03 15,502 17,203 16,266
Sep-03 15,939 17,709 16,728
Oct-03 15,836 17,621 16,624
Nov-03 16,004 17,804 16,804
Dec-03 16,131 17,952 16,940
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (44%)
AA (28%)
A (10%)
BBB (7%)
Cash (3%)
Unrated (8%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (4%)
1-5 Years (7%)
5-10 Years (20%)
10-20 Years (58%)
21 + Years (11%)
- --------------------------------------------------------------------------------
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the combined federal and state income tax rate of 40.10%. Any
capital gains distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo Minnesota Tax-Free Fund
Class A and Institutional Class shares for the most recent ten years with the
Lehman Brothers Municipal Bond Index. The chart assumes a hypothetical $10,000
investment in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
4.50%.
9
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo National Limited Term Tax-Free Fund (the Fund) seeks current
income exempt from federal income taxes.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGERS
Patricia Hovanetz, CFA
Arthur C. Evans
INCEPTION DATE
10/01/96
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund returned 0.76% 1 for the six-month period ended December 31, 2003,
underperforming the Lehman Brothers 3-Year Municipal Bond Index (the
Index) 2, which returned 0.93%. The Fund distributed $0.15 per share in
dividend income and no capital gains during the period.
Short-term interest rates rose during the reporting period, which
negatively affected the Fund's performance because it was managed with a
somewhat longer duration than the Index.
The Fund's holdings in escrowed bonds with active sinking funds made a
positive contribution to performance, outperforming the Fund's other holdings
in both income and price return. Active sinking fund bonds generally have
above average yields and maintain their value when interest rates rise, as
their price returns lag changes in the market. In contrast, the Fund's
holdings in highly liquid, high quality issuers detracted from performance
during the period, as these issues generally have lower yields and their
prices move in concert with the market.
STRATEGIC OUTLOOK
- --------------------------------------------------------------------------------
The Fund had substantial asset growth during the period and we elected to
invest the new money in securities with shorter durations while maintaining a
highly liquid portfolio. We believe that this may position the Fund well in
anticipation that an improving economy and growing anxiety about future
inflation may cause interest rates to rise by mid-year. Until that time, we
expect to continue to seek incremental returns through value-oriented trading
and detailed credit analysis within a fairly narrow trading range.
- --------------------------------------------------------------------------------
The views expressed are as of December 31, 2003, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo National Limited Term Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the Institutional Class shares of the Wells Fargo
National Limited Term Tax-Free Fund for periods prior to November 8, 1999,
reflects performance of the Institutional Class shares of the Norwest Advantage
Limited Term Tax-Free Fund, its predecessor fund. Effective at the close of
business November 5, 1999, the Stagecoach and Norwest Advantage Funds were
reorganized into the Wells Fargo Funds. Institutional Class shares are sold
without sales charges.
2 The Lehman Brothers 3-Year Municipal Bond Index is an unmanaged index
composed of municipal bonds with approximate maturities of three years. You
cannot invest directly in an index. Had the index incurred operating expenses,
its performance would have been lower.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF DECEMBER 31, 2003)
- ------------------------------------------------------------------------------------------------
6-Months* 1-Year 5-Year 10-Year
WELLS FARGO NATIONAL LIMITED TERM TAX-FREE FUND 0.76 3.53 4.72 5.62
BENCHMARK
LEHMAN BROTHERS 3-YEAR MUNICIPAL BOND INDEX 2 0.93 2.68 4.82 5.03
<FN>
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA+
WEIGHTED AVERAGE COUPON 4.88%
WEIGHTED AVERAGE MATURITY 4.62 years
ESTIMATED DURATION 3.43 years
PORTFOLIO TURNOVER 10%
NET ASSET VALUE (NAV) $11.02
SEC YIELD 5 2.25%
DISTRIBUTION RATE 6 2.50%
TAXABLE EQUIVALENT YIELD 7 3.46%
ALTERNATIVE MINIMUM TAX (AMT) 8 4.09%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo National Limited Lehman Brothers 3-Year
Term Tax-Free Fund - Class I Municipal Bond Index
Sep-96 $10,000 $10,000
Oct-96 10,387 10,070
Nov-96 10,537 10,165
Dec-96 10,515 10,170
Jan-97 10,555 10,214
Feb-97 10,621 10,265
Mar-97 10,566 10,211
Apr-97 10,616 10,255
May-97 10,699 10,339
Jun-97 10,780 10,400
Jul-97 10,977 10,524
Aug-97 10,905 10,503
Sep-97 10,998 10,577
Oct-97 11,071 10,625
Nov-97 11,101 10,656
Dec-97 11,207 10,728
Jan-98 11,281 10,799
Feb-98 11,287 10,822
Mar-98 11,330 10,839
Apr-98 11,285 10,824
May-98 11,414 10,925
Jun-98 11,455 10,962
Jul-98 11,488 11,001
Aug-98 11,619 11,108
Sep-98 11,715 11,179
Oct-98 11,736 11,233
Nov-98 11,756 11,260
Dec-98 11,799 11,287
Jan-99 11,896 11,389
Feb-99 11,879 11,402
Mar-99 11,875 11,412
Apr-99 11,904 11,448
May-99 11,867 11,432
Jun-99 11,739 11,363
Jul-99 11,805 11,420
Aug-99 11,780 11,433
Sep-99 11,789 11,477
Oct-99 11,765 11,478
Nov-99 11,832 11,529
Dec-99 11,808 11,510
Jan-00 11,785 11,531
Feb-00 11,841 11,568
Mar-00 11,922 11,628
Apr-00 11,909 11,629
May-00 11,898 11,641
Jun-00 12,049 11,788
Jul-00 12,179 11,884
Aug-00 12,285 11,975
Sep-00 12,283 11,979
Oct-00 12,354 12,046
Nov-00 12,399 12,096
Dec-00 12,579 12,230
Jan-01 12,723 12,416
Feb-01 12,767 12,463
Mar-01 12,863 12,550
Apr-01 12,810 12,531
May-01 12,930 12,647
Jun-01 12,999 12,703
Jul-01 13,132 12,808
Aug-01 13,278 12,941
Sep-01 13,335 13,006
Oct-01 13,419 13,090
Nov-01 13,324 13,050
Dec-01 13,269 13,036
Jan-02 13,427 13,202
Feb-02 13,570 13,301
Mar-02 13,310 13,103
Apr-02 13,583 13,295
May-02 13,654 13,373
Jun-02 13,800 13,488
Jul-02 13,947 13,593
Aug-02 14,068 13,680
Sep-02 14,265 13,788
Oct-02 14,100 13,791
Nov-02 14,077 13,716
Dec-02 14,354 13,914
Jan-03 14,342 13,957
Feb-03 14,508 14,048
Mar-03 14,481 14,031
Apr-03 14,557 14,069
May-03 14,779 14,177
Jun-03 14,747 14,154
Jul-03 14,437 14,027
Aug-03 14,540 14,098
Sep-03 14,828 14,310
Oct-03 14,783 14,243
Nov-03 14,842 14,255
Dec-03 14,860 14,285
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (59%)
AA (19%)
A (10%)
BBB (8%)
SP1 (1%)
Cash (1%)
Unrated (2%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (4%)
1-5 Years (58%)
5-10 Years (34%)
11-20 Years (4%)
- --------------------------------------------------------------------------------
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard & Poor's
is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not
sponsored, sold or promoted by these rating agencies and these rating agencies
make no representation regarding the advisability of investing in the Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the federal income tax rate of 35.00%. Any capital gains
distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo National Limited Term
Tax-Free Fund Institutional Class shares for the life of the Fund with the
Lehman Brothers 3-Year Municipal Bond Index. The chart assumes a hypothetical
$10,000 investment in Institutional Class shares and reflects all operating
expenses.
11
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Fund (the Fund) seeks current income exempt
from federal income tax.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGERS
Stephen Galiani
Arthur C. Evans
INCEPTION DATE
08/01/89
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 1.38% 1 during the six-month period
ended December 31, 2003, excluding sales charges, underperforming the Lehman
Brothers Municipal Bond Index 2, which returned 1.45%. The Fund's Class A
shares distributed $0.23 per share in dividend income and no capital gains
during the period.
Interest rate volatility was the primary driver of Fund performance during
the period. To address volatility concerns, the Fund maintained a shorter
duration posture and focused on relative value trading and managing purchases
and sales activity. The Fund's holdings in high yielding short-duration
securities benefited the Fund's performance during the period of volatile
interest rates.
The Fund's best performers were lower-investment grade holdings that
benefited from their higher income levels and positive price performance.
Several A- and BBB-rated bonds in the health care and project finance sectors
experienced 30 basis points or more of spread compression. On the negative
side, the Fund held one multi-family housing revenue bond that was downgraded
to B during the period, leading to a significant drop in price. Additionally,
one toll road revenue bond issue also suffered negative returns. We will
continue to monitor both of these positions closely.
Our strategy remained consistent during the period: targeting a defensive
posture while concentrating on capturing relative value opportunities in a
volatile interest rate environment. The majority of the Fund's trades were
made to sell some of the Fund's lower-investment grade holdings at narrow
credit spreads, and invest the proceeds in new issues with more attractive
spread premiums. Overall, the Fund reduced its allocation to A- and BBB-rated
securities by approximately 5%, in favor of AAA- and AA-rated securities.
STRATEGIC OUTLOOK
- --------------------------------------------------------------------------------
We anticipate that an improving U.S. economy and growing anxiety about
future inflation could gradually cause interest rates to rise over the next
several months, particularly if the domestic employment figures signal clear
evidence of an economic recovery. In the meantime, we intend to look for
opportunities to derive incremental returns through continued value-oriented
trading within a fairly narrow trading range.
- --------------------------------------------------------------------------------
The views expressed are as of December 31, 2003, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo National Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004, to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total returns to shareholders. Without these reductions, the Fund's returns
would have been lower.
Performance shown for the Class A, Class B and Institutional Class shares of
the Wells Fargo National Tax-Free Fund for periods prior to November 8, 1999,
reflects performance of the Class A, Class B, and Institutional Class shares of
the Norwest Advantage Tax-Free Income Fund (the accounting survivor of a merger
of the Norwest Advantage Tax-Free Income Fund and the Stagecoach National
Tax-Free Fund), its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach and Norwest Advantage Funds were reorganized
into the Wells Fargo Funds. Performance of the Class B shares for periods prior
to August 6, 1993 reflects performance of the Class A shares of the Norwest
Advantage Fund adjusted to reflect Class B shares sales charges and expenses.
Performance shown for Class C shares for periods prior to November 8, 1999
reflects performance of the Class B shares of the Norwest Advantage Fund
adjusted for Class C shares sales charges and expenses. For Class A shares, the
maximum front-end sales charge is 4.50%. The maximum contingent deferred sales
charge (CDSC) for Class B shares is 5.00%. For Class C shares, the maximum
front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Effective
February 1, 2004, the 1.00% front-end sales charge for Class C shares will be
eliminated. Performance including sales charge assumes the maximum sales charge
for the period shown. Institutional Class shares are sold without sales charges.
12
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF DECEMBER 31, 2003)
- ----------------------------------------------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
---------------------------------- ----------------------------------
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year
WELLS FARGO NATIONAL
TAX-FREE FUND - CLASS A (3.18) (0.30) 3.77 5.10 1.38 4.40 4.73 5.59
WELLS FARGO NATIONAL
TAX-FREE FUND - CLASS B (3.90) (1.38) 3.63 4.81 1.10 3.62 3.97 4.81
WELLS FARGO NATIONAL
TAX-FREE FUND - CLASS C (0.99) 1.59 3.74 4.69 1.01 3.62 3.95 4.80
WELLS FARGO NATIONAL
TAX-FREE FUND - INSTITUTIONAL CLASS 1.61 4.66 4.92 5.68
BENCHMARK
LEHMAN BROTHERS MUNICIPAL BOND INDEX 2 1.45 5.31 5.83 6.03
<FN>
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA
WEIGHTED AVERAGE COUPON 5.03%
WEIGHTED AVERAGE MATURITY 15.31 years
ESTIMATED DURATION 6.72 years
PORTFOLIO TURNOVER 30%
NET ASSET VALUE (NAV)
(CLASS A, B, C, I) $10.44, $10.45, $10.44, $10.45
SEC YIELD 5
(CLASS A, B, C, I) 4.08%, 3.53%, 3.49%, 4.52%
DISTRIBUTION RATE 6
(CLASS A, B, C, I) 4.11%, 3.55%, 3.52%, 4.54%
TAXABLE EQUIVALENT YIELD 7
(CLASS A, B, C, I) 6.28%, 5.43%, 5.37%, 6.95%
ALTERNATIVE MINIMUM TAX (AMT) 8 13.0%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo National Lehman Brothers Wells Fargo National
Tax-Free Fund - Class A Municipal Bond Index Tax-Free Fund - Class I
Dec-93 $ 9,550 $10,000 $10,000
Jan-94 9,686 10,114 10,133
Feb-94 9,409 9,852 9,842
Mar-94 9,025 9,451 9,441
Apr-94 9,113 9,531 9,534
May-94 9,176 9,614 9,600
Jun-94 9,144 9,556 9,565
Jul-94 9,275 9,731 9,703
Aug-94 9,311 9,765 9,740
Sep-94 9,184 9,621 9,618
Oct-94 9,061 9,450 9,479
Nov-94 8,889 9,279 9,309
Dec-94 9,086 9,483 9,515
Jan-95 9,327 9,754 9,757
Feb-95 9,558 10,038 10,009
Mar-95 9,617 10,153 10,071
Apr-95 9,640 10,166 10,084
May-95 9,949 10,490 10,408
Jun-95 9,856 10,399 10,311
Jul-95 9,941 10,497 10,399
Aug-95 10,049 10,631 10,523
Sep-95 10,106 10,698 10,583
Oct-95 10,245 10,853 10,728
Nov-95 10,485 11,033 10,969
Dec-95 10,618 11,139 11,107
Jan-96 10,708 11,224 11,213
Feb-96 10,629 11,147 11,119
Mar-96 10,491 11,005 10,974
Apr-96 10,465 10,974 10,959
May-96 10,476 10,970 10,959
Jun-96 10,563 11,089 11,062
Jul-96 10,700 11,189 11,204
Aug-96 10,677 11,187 11,169
Sep-96 10,819 11,343 11,329
Oct-96 10,968 11,471 11,484
Nov-96 11,149 11,681 11,663
Dec-96 11,121 11,632 11,634
Jan-97 11,141 11,654 11,666
Feb-97 11,242 11,762 11,760
Mar-97 11,077 11,605 11,588
Apr-97 11,195 11,703 11,711
May-97 11,359 11,879 11,895
Jun-97 11,476 12,007 12,017
Jul-97 11,833 12,339 12,391
Aug-97 11,690 12,223 12,229
Sep-97 11,843 12,369 12,400
Oct-97 11,928 12,448 12,478
Nov-97 12,025 12,521 12,591
Dec-97 12,263 12,704 12,828
Jan-98 12,362 12,835 12,944
Feb-98 12,351 12,839 12,933
Mar-98 12,369 12,850 12,951
Apr-98 12,255 12,792 12,832
May-98 12,533 12,995 13,111
Jun-98 12,584 13,045 13,164
Jul-98 12,602 13,078 13,183
Aug-98 12,835 13,281 13,439
Sep-98 13,030 13,447 13,644
Oct-98 12,961 13,447 13,571
Nov-98 13,048 13,494 13,649
Dec-98 13,052 13,527 13,667
Jan-99 13,190 13,688 13,798
Feb-99 13,103 13,628 13,707
Mar-99 13,095 13,647 13,712
Apr-99 13,146 13,681 13,766
May-99 13,039 13,602 13,640
Jun-99 12,818 13,406 13,409
Jul-99 12,812 13,454 13,403
Aug-99 12,631 13,347 13,226
Sep-99 12,560 13,352 13,153
Oct-99 12,364 13,208 12,948
Nov-99 12,511 13,348 13,090
Dec-99 12,350 13,248 12,924
Jan-00 12,189 13,189 12,770
Feb-00 12,398 13,342 12,978
Mar-00 12,730 13,633 13,342
Apr-00 12,659 13,553 13,255
May-00 12,548 13,482 13,155
Jun-00 12,883 13,840 13,508
Jul-00 13,129 14,032 13,754
Aug-00 13,336 14,248 13,988
Sep-00 13,234 14,174 13,883
Oct-00 13,376 14,329 14,021
Nov-00 13,476 14,437 14,141
Dec-00 13,931 14,794 14,621
Jan-01 14,021 14,940 14,704
Feb-01 14,078 14,988 14,766
Mar-01 14,182 15,123 14,892
Apr-01 14,011 14,960 14,700
May-01 14,143 15,121 14,856
Jun-01 14,287 15,223 14,994
Jul-01 14,531 15,448 15,253
Aug-01 14,789 15,703 15,527
Sep-01 14,749 15,650 15,488
Oct-01 14,897 15,836 15,661
Nov-01 14,745 15,703 15,503
Dec-01 14,581 15,554 15,319
Jan-02 14,761 15,823 15,511
Feb-02 14,920 16,013 15,695
Mar-02 14,667 15,699 15,433
Apr-02 14,876 16,005 15,639
May-02 14,983 16,102 15,754
Jun-02 15,133 16,273 15,930
Jul-02 15,358 16,483 16,169
Aug-02 15,525 16,681 16,348
Sep-02 15,823 17,046 16,664
Oct-02 15,543 16,763 16,356
Nov-02 15,467 16,693 16,280
Dec-02 15,755 17,045 16,602
Jan-03 15,652 17,002 16,481
Feb-03 15,890 17,240 16,735
Mar-03 15,861 17,251 16,709
Apr-03 15,983 17,365 16,840
May-03 16,290 17,771 17,167
Jun-03 16,223 17,695 17,100
Jul-03 15,741 17,075 16,596
Aug-03 15,862 17,203 16,727
Sep-03 16,247 17,709 17,137
Oct-03 16,157 17,621 17,045
Nov-03 16,325 17,804 17,225
Dec-03 16,447 17,952 17,375
CREDIT QUALITY 3,4 (as of December 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (38%)
AA (20%)
A (8%)
BBB (11%)
BB/Ba (3%)
B (2%)
SP1 (3%)
Unrated (15%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (7%)
2-5 Years (2%)
6-10 Years (7%)
11-20 Years (56%)
21 + Years (28%)
2 The Lehman Brothers Municipal Bond Index is an unmanaged index composed of
municipal bonds. The total return of the Index does not include the effect of
sales charges, and you cannot invest directly in an index. Had the Index
incurred operating expenses, its performance would have been lower.
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard and
Poor's is a trademark of McGraw-Hill, Inc. and has been licensed. The Fund is
not sponsored, sold or promoted by these rating agencies and these rating
agencies make no representation regarding the advisability of investing in the
Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses and the maximum
offering price calculated on a 30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the federal income tax rate of 35.00%. Any capital gains
distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo National Tax-Free Fund
Class A and Institutional Class shares for the most recent ten years with the
Lehman Brothers Municipal Bond Index. The chart assumes a hypothetical $10,000
investment in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
4.50%.
13
WELLS FARGO TAX-FREE FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
NEBRASKA TAX-FREE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Nebraska Tax-Free Fund (the Fund) seeks current income exempt
from federal income tax and Nebraska individual income tax.
ADVISER
Wells Fargo Funds Management, LLC
SUB-ADVISER
Wells Capital Management Incorporated
FUND MANAGERS
Patricia D. Hovanetz, CFA
Arthur C. Evans
INCEPTION DATE
8/31/89
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
The Fund returned 1.20% 1 for the six-month period ended December 31, 2003,
underperforming its benchmark, the Lehman Brothers Municipal Bond Index 2
(the Index), which returned 1.45% during the period. The Fund distributed
$0.19 per share in dividend income and $0.07 capital gains during the period.
The volatile interest rate environment drove Fund performance during the
period. We maintained a portfolio duration for the Fund that was slightly
short of the duration maintained by the Index. This strategy negatively
impacted the Fund's performance, compared to the Index, in a declining
interest rate environment.
During the period, the best performers for the Fund were lower quality
securities. With little change in interest rates, income return was more
important than price return. Premium, callable long bonds performed better
than mid-range maturities with similar durations because investors favored
the "kicker bond" structure. Kicker bonds in this case refer to higher coupon
(generally 5.0% to 7.5%) bonds with final maturities of three to ten years,
which have at the time of purchase call dates inside of 18 months. Once these
bonds have passed the first call date, the yield "kicks" to the higher yield
to maturity. We made no major shifts within the Fund's portfolio during the
period.
STRATEGIC OUTLOOK
- --------------------------------------------------------------------------------
We expect that over the next several months, the U.S. economy may improve
and anxiety about future inflation may increase, putting upward pressure on
interest rates. This view is bolstered by our belief that the Federal Reserve
Board may raise interest rates by mid-year. In the meantime, we plan to seek
incremental returns for the Fund through value-oriented trading and detailed
credit analysis within a fairly narrow trading range.
- --------------------------------------------------------------------------------
The views expressed are as of December 31, 2003, and are those of the Fund's
managers. The views are subject to change at any time in response to changing
circumstances in the market and are not intended to predict or guarantee the
future performance of any individual security, market sector or the markets
generally, or the Wells Fargo Nebraska Tax-Free Fund.
1 FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND 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. Current
performance is available at the Funds' Web site - www.wellsfargofunds.com. The
Fund's Adviser has committed through October 31, 2004 to waive fees and/or
reimburse expenses to the extent necessary to maintain a certain net operating
expense ratio for the Fund. Actual reductions of operating expenses can increase
total return to shareholders. Without these reductions, the Fund's returns would
have been lower.
Performance shown for the periods prior to September 29, 1997, reflects the
performance of the predecessor common trust fund. The common trust fund was not
registered under the Investment Company Act of 1940 (the "Act") and was not
subject to certain investment limitations, diversification requirements and
other restrictions imposed by the Act and the Internal Revenue Code, which, if
applicable may have adversely affected the performance results. On September 29,
1997, the common trust fund was reorganized as the Wells Fargo predecessor Great
Plains Tax-Free Bond Fund and on September 11, 2000, became the Nebraska
Tax-Free Fund.
Performance shown for the Institutional class shares of the Wells Fargo
Nebraska Tax-Free Fund for the periods from September 29, 1997, to September 8,
2000, reflects the performance of the Institutional class shares of the Great
Plains Tax-Free Bond Fund. Institutional Class shares are sold without sales
charges.
14
PERFORMANCE HIGHLIGHTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF DECEMBER 31, 2003)
- ------------------------------------------------------------------------------------------------
6-Months* 1-Year 5-Year 10-Year
WELLS FARGO NEBRASKA TAX-FREE FUND 1.20 4.21 5.00 4.79
BENCHMARK
LEHMAN BROTHERS MUNICIPAL BOND INDEX 2 1.45 5.31 5.83 6.03
<FN>
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
</FN>
FUND CHARACTERISTICS 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
AVERAGE CREDIT QUALITY 4 AA+
WEIGHTED AVERAGE COUPON 5.34%
WEIGHTED AVERAGE MATURITY 11.78 years
ESTIMATED DURATION 4.92 years
PORTFOLIO TURNOVER 4%
NET ASSET VALUE (NAV) $10.30
SEC YIELD 5 3.54%
DISTRIBUTION RATE 6 3.81%
TAXABLE EQUIVALENT YIELD 7 5.85%
ALTERNATIVE MINIMUM TAX (AMT) 8 7.27%
GROWTH OF $10,000 INVESTMENT 9
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
Wells Fargo Nebraska Lehman Brothers
Tax Free Fund - Class I Municipal Bond Index
Dec-93 $10,000 $10,000
Jan-94 10,083 10,114
Feb-94 9,941 9,852
Mar-94 9,657 9,451
Apr-94 9,722 9,531
May-94 9,749 9,614
Jun-94 9,739 9,556
Jul-94 9,805 9,731
Aug-94 9,852 9,765
Sep-94 9,773 9,621
Oct-94 9,695 9,450
Nov-94 9,597 9,279
Dec-94 9,703 9,483
Jan-95 9,859 9,754
Feb-95 10,044 10,038
Mar-95 10,152 10,153
Apr-95 10,180 10,166
May-95 10,397 10,490
Jun-95 10,377 10,399
Jul-95 10,485 10,497
Aug-95 10,574 10,631
Sep-95 10,612 10,698
Oct-95 10,681 10,853
Nov-95 10,780 11,033
Dec-95 10,829 11,139
Jan-96 10,929 11,224
Feb-96 10,917 11,147
Mar-96 10,812 11,005
Apr-96 10,779 10,974
May-96 10,778 10,970
Jun-96 10,838 11,089
Jul-96 10,919 11,189
Aug-96 10,938 11,187
Sep-96 11,009 11,343
Oct-96 11,081 11,471
Nov-96 11,237 11,681
Dec-96 11,193 11,632
Jan-97 11,244 11,654
Feb-97 11,327 11,762
Mar-97 11,229 11,605
Apr-97 11,248 11,703
May-97 11,365 11,879
Jun-97 11,471 12,007
Jul-97 11,653 12,339
Aug-97 11,585 12,223
Sep-97 11,695 12,369
Oct-97 11,736 12,448
Nov-97 11,777 12,521
Dec-97 11,915 12,704
Jan-98 12,005 12,835
Feb-98 12,008 12,839
Mar-98 12,004 12,850
Apr-98 11,951 12,792
May-98 12,102 12,995
Jun-98 12,119 13,045
Jul-98 12,149 13,078
Aug-98 12,313 13,281
Sep-98 12,428 13,447
Oct-98 12,435 13,447
Nov-98 12,464 13,494
Dec-98 12,508 13,527
Jan-99 12,625 13,688
Feb-99 12,566 13,628
Mar-99 12,561 13,647
Apr-99 12,592 13,681
May-99 12,525 13,602
Jun-99 12,367 13,406
Jul-99 12,424 13,454
Aug-99 12,380 13,347
Sep-99 12,372 13,352
Oct-99 12,290 13,208
Nov-99 12,398 13,348
Dec-99 12,341 13,248
Jan-00 12,271 13,189
Feb-00 12,405 13,342
Mar-00 12,595 13,633
Apr-00 12,523 13,553
May-00 12,465 13,482
Jun-00 12,760 13,840
Jul-00 12,912 14,032
Aug-00 13,052 14,248
Sep-00 12,981 14,174
Oct-00 13,110 14,329
Nov-00 13,185 14,437
Dec-00 13,497 14,794
Jan-01 13,602 14,940
Feb-01 13,661 14,988
Mar-01 13,753 15,123
Apr-01 13,624 14,960
May-01 13,742 15,121
Jun-01 13,831 15,223
Jul-01 13,991 15,448
Aug-01 14,165 15,703
Sep-01 14,130 15,650
Oct-01 14,265 15,836
Nov-01 14,148 15,703
Dec-01 14,054 15,554
Jan-02 14,233 15,823
Feb-02 14,379 16,013
Mar-02 14,149 15,699
Apr-02 14,399 16,005
May-02 14,493 16,102
Jun-02 14,615 16,273
Jul-02 14,812 16,483
Aug-02 14,979 16,681
Sep-02 15,305 17,046
Oct-02 15,023 16,763
Nov-02 14,943 16,693
Dec-02 15,315 17,045
Jan-03 15,221 17,002
Feb-03 15,432 17,240
Mar-03 15,454 17,251
Apr-03 15,550 17,365
May-03 15,887 17,771
Jun-03 15,771 17,695
Jul-03 15,219 17,075
Aug-03 15,377 17,203
Sep-03 15,785 17,709
Oct-03 15,682 17,621
Nov-03 15,853 17,804
Dec-03 15,960 17,952
CREDIT QUALITY 3,4 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
AAA (51%)
AA (35%)
A (7%)
Cash (5%)
Unrated (2%)
MATURITY DISTRIBUTION 3 (AS OF DECEMBER 31, 2003)
- --------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
0-1 Year (2%)
2-5 Years (9%)
6-10 Years (18%)
11-20 Years (64%)
21 + Years (7%)
2 The Lehman Brothers Municipal Bond Index is an unmanaged index composed of
municipal bonds. You cannot invest directly in an index. Had the Index incurred
operating expenses, its performance would have been lower.
3 Portfolio holdings and characteristics are subject to change.
4 The average credit rating is compiled from ratings from Standard & Poor's
and/or Moody's Investors Service (together "rating agencies"). Standard and
Poor's is a trademark of McGraw-Hill, Inc. and has been licensed. The Fund is
not sponsored, sold or promoted by these rating agencies and these rating
agencies make no representation regarding the advisability of investing in the
Fund.
5 SEC yields include the actual amount of interest earned adjusted by any gain
or loss realized due to the return of principal, less expenses, calculated on a
30-day month-end basis.
6 The distribution rate is based on the actual distributions made by the Fund.
The distribution rate is calculated by annualizing the Fund's most recent income
dividend and dividing that figure by the applicable current public offering
price.
7 A portion of the Fund's income may be subject to federal, state and/or local
income taxes or the alternative minimum tax (AMT). The Fund's taxable equivalent
yield is based on the combined federal and state income tax rate of 39.45%. Any
capital gains distributions may be taxable.
8 The value of the securities subject to the AMT is represented as a percentage
of net assets.
9 The chart compares the performance of the Wells Fargo Nebraska Tax-Free Fund
Institutional Class shares for the most recent ten years with the Lehman
Brothers Municipal Bond Index. The chart assumes a hypothetical $10,000
investment in Institutional Class shares and reflects all operating expenses.
15
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INVESTMENT COMPANIES - 0.54%
35,000 BLACKROCK CALIFORNIA INSURED MUNICIPAL TRUST $ 598,150
TOTAL INVESTMENT COMPANIES (COST $594,132) 598,150
------------
PRINCIPAL INTEREST RATE MATURITY DATE
MUNICIPAL BONDS - 97.73%
CALIFORNIA - 94.91%
$ 840,000 ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS SAN DIEGO ASSOCIATES-SERIES C
(HEALTHCARE FACILITIES REVENUE LOC) 4.00% 03/01/2008 856,187
250,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT CORPORATION EPISCOPAL HOMES FOUNDATION
PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2005 257,577
1,100,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT CORPORATIONS EPISCOPAL HOMES FOUNDATION
PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2007 1,152,800
1,105,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT CORPORATIONS EPISCOPAL HOMES FOUNDATION
PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2008 1,155,421
600,000 ABAG FINANCING AUTHORITY CALIFORNIA REVENUE ODD FELLOWS HOME OF CALIFORNIA-SERIES A
(HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC) 5.00 11/15/2009 648,696
180,000 ABAG FINANCING AUTHORITY FOR NONPROFIT CORPORATIONS CA STANFORD UNIVERSITY HOSPITAL
(OTHER REVENUE LOC) 5.50 11/01/2013 191,281
1,230,000 ACALANES UNION HIGH SCHOOL DISTICT CA ELECTION OF 2001 SERIES A FGIC INSURED
(PROPERTY TAX REVENUE LOC) 2.97^ 08/01/2009 1,043,434
210,000 ALAMEDA CA COMMUNITY IMPORTT COMMON TAX ALLOCATION REFERENCE-BUSINESS &
WATERFRONT-C (TAX ALLOCATION REVENUE LOC) 4.25 02/01/2009 227,657
215,000 ALAMEDA CALIFORNIA COMMUNITY IMPORT COMMON TAX ALLOCATION REFERENCE-BUSINESS &
WATERFRONT-C (TAX ALLOCATION REVENUE LOC) 4.25 02/01/2010 232,359
490,000 ALHAMBRA CA REDEVELOPMENT AGENCY PROJECT FSA INSURED(TAX ALLOCATION REVENUE LOC) 4.00 05/01/2007 523,962
3,000,000 BAY AREA CA GOVERNMENTS ASSOCIATION BART SAN FRANCISCO EXTENTION FTA CAPITAL GRANT
SERIES A AMBAC INSURED (STATE & LOCAL GOVERNMENTS LOC) 4.88 06/15/2009 3,047,970
4,500,000 BAY AREA CA TOLL AUTHORITY VAR SAN FRANCISCO BAY AREA SERIES C AMBAC INSURED
(TOLL ROAD REVENUE LOC)+/- 1.05 04/01/2025 4,500,000
250,000 BERKELEY CA UNIFIED SCHOOL DISTRICT ELECTION OF 2000 MBIA INSURED
(PROPERTY TAX REVENUE LOC) 7.00 08/01/2004 258,620
310,000 CALIFORNIA COUNTY CA TOBACCO SECURITIZATION AGENCY ALAMEDA COUNTY
(OTHER REVENUE LOC) 2.70 06/01/2004 308,655
505,000 CALIFORNIA EDUCATION FACILITIES AUTHORITY UNIVERSITY OF THE PACIFIC
(COLLEGE AND UNIVERSITY REVENUE LOC) 4.10 11/01/2010 535,002
480,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY POOLED COLLEGE & UNIVERSITY PROJECT
SERIES B (COLLEGE AND UNIVERSITY REVENUE LOC) 4.50 04/01/2006 509,645
200,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY POOLED COLLEGE & UNIVERSITY UNIVERSITY
PROJECT SERIES B (COLLEGE AND UNIVERSITY REVENUE LOC) 4.30 04/01/2004 201,534
395,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY SOUTHWESTERN UNIVERSITY
(EDUCATIONAL FACILITIES REVENUE LOC) 1.50 11/01/2004 395,162
420,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY SOUTHWESTERN UNIVERSITY
(EDUCATIONAL FACILITIES REVENUE LOC) 2.40 11/01/2007 417,858
860,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY UNIVERSITY SO CALIFORNIA
(EDUCATIONAL FACILITIES REVENUE LOC) 5.00 10/01/2004 885,361
850,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY CATHOLIC HEALTHCARE WEST SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2006 894,642
1,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY PRESBYTERIAN HOSPITAL MBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 05/01/2007 1,115,170
16
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$ 385,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY REVENUE PARADISE VALLEY ESTATES
(HEALTHCARE FACILITIES REVENUE LOC) 4.50% 01/01/2007 $ 405,070
1,000,000 CALIFORNIA HOUSING FINANCE AGENCY REVENUE HOME MORTGAGE-SERIES L
(HOUSING REVENUE LOC) 5.35 08/01/2017 1,054,820
765,000 CALIFORNIA STATE CONSUMER POWER & CONSERVATIVE FINANCING AUTHORITY SERIES A
(OTHER REVENUE LOC) 4.00 03/01/2007 813,325
950,000 CALIFORNIA STATE CONSUMER POWER & CONSERVATIVE FINANCING AUTHORITY SERIES A
(OTHER REVENUE LOC) 5.00 03/01/2010 1,060,570
1,000,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES Q (WATER REVENUE LOC) 5.70 12/01/2006 1,130,160
660,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES WTR SYS-J-1 UNREFUNDED
(WATER REVENUE LOC) 7.00 12/01/2011 834,940
600,000 CALIFORNIA STATE FACILITIES FINANCING AUTHORITY CASA COLINA PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 04/01/2013 631,626
750,000 CALIFORNIA STATE FACILITIES FINANCING THE EPISCOPAL HOME CA MTG INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 02/01/2008 805,822
500,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF CORRECTIONS SERIES A
(LEASE REVENUE LOC) 4.60 10/01/2006 528,815
1,250,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF CORRECTIONS SERIES C
(LEASE REVENUE LOC) 5.25 11/01/2008 1,369,712
500,000 CALIFORNIA STATE PUBLIC WORKS BOARD REGENTS UNIVERSITY CALIFORNIA SERIES B
AMBAC-TCRS-BNY INSURED (LEASE REVENUE LOC) 5.25 11/01/2011 557,660
500,000 CALIFORNIA STATE PUBLIC WORKS BOARD SERIES A VARIOUS CALIFORNIA STATE UNIVERSITY
PROJECTS (LEASE REVENUE LOC) 6.13 10/01/2007 525,695
100,000 CALIFORNIA STATE PUBLIC WORKS BOARD TRUSTEES CALIFORNIA STATE UNIVERSITY SERIES A
(LEASE REVENUE LOC) 5.50 10/01/2010 111,404
1,125,000 CALIFORNIA STATE PUBLIC WORKS BOARD VARIOUS UNIVERSITY CALIFORNIA PROJECTS SERIES A
(LEASE REVENUE LOC) 5.50 06/01/2010 1,287,101
745,000 CALIFORNIA STATE UNIVERSITY FRESNO ASSOCIATION INCORPORATED AUXILIARY ORGANIZATION
EVENT CENTER (COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 07/01/2010 789,022
1,500,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY DISPOSAL REPUBLIC SERVICES
SERIES A (SOLID WASTE REVENUE LOC) 4.95 12/01/2012 1,494,600
1,000,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY IRVINE APARTMENT
COMMUNITIES SERIES A3 (HOUSING REVENUE LOC)+/- 5.10 05/15/2025 1,058,900
1,200,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY QUAIL RIDGE APARTMENTS
SERIES E1 (HOUSING REVENUE LOC) 4.25 07/01/2012 1,219,704
500,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY VAN KAISER PERMANENTE
SERIES E (HEALTHCARE FACILITIES REVENUE LOC)+/- 4.70 11/01/2036 526,985
1,390,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTORITY SHERMAN OAKS PROJECT
SERIES A AMBAC CA MTG INSURED (OTHER REVENUE LOC) 5.50 08/01/2011 1,562,388
100,000 CALIPATRIA CA UNIFIED SCHOOL DISTRICT ELECTION 1995 SERIES C ACA INSURED
(PROPERTY TAX REVENUE LOC) 2.38 08/01/2004 100,456
200,000 CENTRAL UNION HIGH SCHOOL DISTRICT IMPERIAL COUNTY CA FGIC INSURED
(PROPERTY TAX REVENUE LOC) 3.00 08/01/2004 202,280
1,000,000 CENTRAL VALLEY FINANCING AUTHORITY CARSON ICE GENERAL PROJECT MBIA INSURED
(ELECTRIC REVENUE LOC) 5.25 07/01/2010 1,120,690
350,000 CITY OF ALAMEDA CA (LEASE REVENUE LOC) 2.25 05/01/2004 351,172
195,000 CITY OF FREEMONT CALIFORNIA ELECTION OF 2002 SERIES A MBIA INSURED(PROPERTY
TAX REVENUE LOC) 7.00 08/01/2008 235,090
240,000 CITY OF FREMONT CALIFORNIA ELECTION OF 2002 SERIES A MBIA INSURED
(PROPERTY TAX REVENUE LOC) 6.75 08/01/2010 295,541
1,025,000 CITY OF LOS ANGELES CA POWER SYSTEM SERIES ASUBSERIES A1 (ELECTRIC REVENUE LOC) 5.00 07/01/2009 1,152,551
17
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$1,500,000 CITY OF LOS ANGELES CA POWER SYSTEMS SERIES AA1 (WATER REVENUE LOC) 5.25% 07/01/2004 $ 1,531,110
2,000,000 CITY OF LOS ANGELES CA SERIES A (PROPERTY TAX REVENUE LOC) 5.00 09/01/2008 2,245,420
1,500,000 CITY OF NEWPORT BEACH CA HEALTH CARE REVENUE HOAG MEMORIAL HOSPITAL SERIES C
(HEALTHCARE FACILITIES REVENUE LOC)+/- 0.82 10/01/2026 1,500,000
610,000 CITY OF VERNON CA MALBURG GENERATING STATION PROJECT (ELECTRIC REVENUE LOC) 5.00 04/01/2012 633,540
750,000 CONTRA COSTA CA WATER DISTRICT SERIES J FGIC INSURED (WATER REVENUE LOC) 5.13 10/01/2010 847,522
1,500,000 CONTRA COSTA CA WATER DISTRICT SERIES K FSA INSURED (WATER REVENUE LOC) 5.00 10/01/2009 1,698,345
1,000,000 CONTRA COSTA COUNTY CA MERRITHEW MEMORIAL HOSPITAL PROJECT MBIA INSURED
(LEASE REVENUE LOC) 5.25 11/01/2010 1,121,630
500,000 COUNTY OF ALAMEDA CA SANTA RITA JAIL PROJECT AMBAC INSURED (LEASE REVENUE LOC) 5.25 06/01/2008 559,305
500,000 CSUCI CA FINANCING AUTHORITY RENTAL HOUSING CITIBANK INSURED
(COLLEGE AND UNIVERSITY REVENUE LOC)+/- 3.38 08/01/2031 506,240
235,000 DALY CITY CA HOUSING DEVELOPMENT FINANCE AGENCY SERIES A FRANCISCAN ACQUISITION
PROJECT (HOUSING REVENUE LOC) 5.00 12/15/2010 247,742
650,000 EAST BAY DELTA CA HOUSING & FINANCE AGENCY LEASE PURCHASE PROJECT SERIES A MBIA
CAHLIF (HOUSING REVENUE LOC) 4.25 06/01/2005 677,488
205,000 ESCONDIDO JOINT POWERS FINANCING AUTHORITY SERIES A AMBAC INSURED
(OTHER REVENUE LOC) 5.00 09/01/2006 208,325
625,000 FONTANA CA REDEVELOPMENT AGENCY JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 4.75 10/01/2004 638,962
250,000 FONTANA CA REDEVELOPMENT AGENCY JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.00 10/01/2007 269,810
1,000,000 FOOTHILL EASTERN TRANSPORTATION CORRIDOR AGENCY CA SENIOR LIEN SERIES A
(TOLL ROAD REVENUE LOC) 6.50 01/01/2007 1,139,500
760,000 GLENDALE CA COMMUNITY COLLEGE DISTRICT CAP APPRECIATION FGIC INSURED
(PROPERTY TAX REVENUE LOC) 2.63^ 08/01/2008 674,135
250,000 GOLDEN STATE CA TOBACCO SECURITIZATION CORPORATION TOBACCO SETTLEMENT ENHANCED
ASSET BACKED SERIES B (OTHER REVENUE LOC) 5.00 06/01/2009 268,350
380,000 HEMET CA UNIFIED SCHOOL DISTRICT ELECTION SERIES B MBIA INSURED
(PROPERTY TAX REVENUE LOC) 5.50 08/01/2005 405,380
395,000 HEMET CA UNIFIED SCHOOL DISTRICT ELECTION SERIES B MBIA INSURED
(PROPERTY TAX REVENUE LOC) 5.50 08/01/2006 434,492
300,000 KERN VALLEY CA HEALTHCARE DISTRICT CA MTG INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 3.75 08/01/2008 305,067
395,000 KERN VALLEY HEALTHCARE DISTRICT CALIFORNIA REV CA MTG INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 3.00 08/01/2006 400,123
500,000 LAKE ELSINORE CA SCHOOL FINANCING AUTHORITY SPECIAL TAX HORSETHIEF CANYON
(SPECIAL TAX REVENUE LOC) 5.35 09/01/2010 537,645
460,000 LIVERMORE VALLEY CA JOINT UNIFIED SCHOOL DISTRICT ELECTION OF 1999 MBIA INSURED
(PROPERTY TAX REVENUE LOC) 4.00 08/01/2004 467,912
800,000 LONG BEACH CA COMMUNITY COLLEGE DISTRICT 2002 ELECTION SERIES A
(PROPERTY TAX REVENUE LOC) 2.50 05/01/2004 803,712
1,000,000 LOS ANGELAS CA CONVENTION & EXHIBITION CENTER AUTHORITY SERIES A AMBAC INSURED 5.00 08/15/2008 1,121,460
1,000,000 LOS ANGELES CA COMMUNITY COLLEGE DISTRICT SERIES A FSA INSURED
(PROPERTY TAX REVENUE LOC) 5.00 08/01/2006 1,087,900
715,000 LOS ANGELES CA DEPARTMENT OF AIRPORTS LA INTERNATIONAL AIRPORT SERIES D
(AIRPORT REVENUE LOC) 5.30 05/15/2004 725,968
230,000 LOS ANGELES CA DEPARTMENT OF WATER & POWER PREREFUNDED MBIA IBC BANK OF
NEW YORK INSURED ESCROWED TO MATURITY (ELECTRIC REVENUE LOC) 4.75 08/15/2011 235,163
1,500,000 LOS ANGELES CA UNION SCHOOL DISTRICT SERIES B (PROPERTY TAX REVENUE LOC) 5.38 07/01/2013 1,717,965
18
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$ 280,000 LOS ANGELES COUNTY CA METROPOLITAN TRANSPORTATION AUTHORITY PROPOSITION C 2ND
SERIES A AMBAC INSURED (SALES TAX REVENUE LOC) 5.90% 07/01/2005 $ 299,463
920,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY SERIES A REGULAR PARK &
OPEN SPACE DISTRICT. (SPECIAL TAX REVENUE LOC) 5.50 10/01/2010 1,033,960
500,000 METROPOLITAN WATER DISTRICT SOUTHERN CALIFORNIA CA SERIES C (WATER REVENUE LOC)+/- 1.15 07/01/2027 500,000
1,000,000 MORENO VALLEY CA UNIFIED SCHOOL DISTRICT FSA INSURED (LEASE REVENUE LOC) 5.25 03/01/2011 1,062,780
1,825,000 NORTHERN CALIFORNIA POWER AGENCY UNREFUNDED BALANCE SERIES A AMBAC INSURED
(ELECTRIC REVENUE LOC) 5.80 07/01/2009 2,125,140
250,000 OAK GROVE CA SCHOOL DISTRICT ELECTION OF 1995 FGIC INSURED
(PROPERTY TAX REVENUE LOC) 7.70 08/01/2004 259,548
1,000,000 OAKLAND CA JOINT POWERS FINANCING AUTHORITY OAKLAND CONVENTION CENTERS
AMBAC INSURED (LEASE REVENUE LOC) 5.00 10/01/2005 1,064,150
930,000 OAKLAND CALIF REDEVELOPMENT AGENCY CENTRAL DISTRICT REDEVELOPMENT SR TAX ALLOCATION
AMBAC INSURED (TAX ALLOCATION REVENUE LOC) 6.00 02/01/2007 1,047,013
590,000 ONTARIO CA REDEVELOPMENT FING AUTHORITY REVENUE ONTARIO REDEVELOPMENT PROJECT
NO.1 MBIA INSURED (TAX INCREMENTAL REVENUE LOC) 6.90 08/01/2010 730,532
1,000,000 ORANGE COUNTY CA SERIES A MBIA INSURED (LEASE REVENUE LOC) 5.60 07/01/2009 1,107,170
100,000 PALO ALTO CA SERIES A (SEWER REVENUE LOC) 5.80 06/01/2005 103,877
100,000 PLEASANT VALLEY SCHOOL DISTRICT VENTURA COUNTY CA TIERRA LINDA SCHOOL MBIA INSURED
(LEASE REVENUE LOC) 5.10 08/01/2006 100,320
515,000 PORT OF OAKLAND CA SERIES H MBIA INSURED (HARBOR DEPARTMENT REVENUE LOC) 5.00 11/01/2005 547,012
1,000,000 PORT OF OAKLAND CA SERIES K FGIC INSURED (HARBOR DEPARTMENT REVENUE LOC) 5.50 11/01/2009 1,137,990
820,000 RIALTO CA REDEVELOPMENT AGENCY MERGED PROJECT AREA SERIES A
(TAX INCREMENTAL REVENUE LOC) 4.00 09/01/2005 850,299
885,000 RIALTO CA REDEVELOPMENT AGENCY MERGED PROJECT AREA SERIES A
(TAX INCREMENTAL REVENUE LOC) 4.00 09/01/2008 923,241
825,000 RIALTO REDEVELOPMENT AGENCY MERGED PROJECT AREA SERIES A
(TAX INCREMENTAL REVENUE LOC) 4.50 09/01/2012 855,962
545,000 RIVERSIDE CA REDEVELOPMENT AGENCY SERIES AAMBAC INSURED
(TAX INCREMENTAL REVENUE LOC) 2.00 10/01/2004 548,608
1,300,000 SACRAMENTO CA COGENERATION AUTHORITY PROCTOR AND GAMBLE PROJECT PREREFUNDED
(ELECTRIC REVENUE LOC) 6.50 07/01/2005 1,427,036
985,000 SALINAS VALLEY CA SOLID WASTE AUTHORITY AMBAC INSURED (SOLID WASTE REVENUE LOC) 5.00 08/01/2012 1,075,453
210,000 SAN BERNADINO COUNTY CA MEDICAL CENTRE FING PROJECT SERIES A AMBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.75 08/01/2006 232,040
305,000 SAN BERNARDINO COUNTY CA TRANSPORTATION AUTHORITY SERIES A MBIA INSURED
(SALES TAX REVENUE LOC) 5.00 03/01/2004 307,010
345,000 SAN DIEGO CA REDEVELOPMENT AGENCY CENTRE CITY SUBSIDIZE PARKING SERIES B
(PARKING FACILITIES REVENUE LOC) 3.00 09/01/2005 352,107
315,000 SAN DIEGO CA REDEVELOPMENT AGENCY CENTRE CITY SUBSIDIZED PARKING SERIES B
(PARKING FACILITIES REVENUE LOC) 3.00 09/01/2004 318,352
2,000,000 SAN FRANCISCO CA CITY & COUNTY PUBLIC UTILITIES COMMON CLEAN WATER REFERENCE SERIES A
(WATER & WASTEWATER AUTHORITY REVENUE LOC) 5.00 10/01/2009 2,264,460
1,090,000 SAN FRANCISCO CITY & COUNTY CA AIRPORT COMMISSION SECOND SERIES ISSUE 13B
MBIA INSURED (AIRPORT REVENUE LOC) 8.00 05/01/2005 1,182,748
1,110,000 SAN FRANCISCO CITY & COUNTY CA AIRPORT COMMISSION SECOND SERIES ISSUE 14A
MBIA INSURED (AIRPORT REVENUE LOC) 8.00 05/01/2007 1,263,324
650,000 SAN FRANCISCO CITY & COUNTY CA AIRPORTS COMMISSION SECOND SERIES ISSUE 14A
MBIA INSURED (AIRPORT REVENUE LOC) 8.00 05/01/2005 705,309
100,000 SAN FRANCISCO CITY & COUNTY CA CITY HALL IMPROVEMENT PROJECT SERIES A FGIC INSURED
(PROPERTY TAX REVENUE LOC) 5.10 06/15/2006 103,741
19
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$ 680,000 SAN FRANCISCO CITY & COUNTY CA SERIES 1 FGIC INSURED (PROPERTY TAX REVENUE LOC) 5.75% 06/15/2007 $ 768,590
575,000 SAN JACINTO CA COMMUNITY FACILITIES DISTRICT NO.2 SERIES A (SPECIAL TAX REVENUE LOC) 3.00 09/01/2004 579,583
275,000 SAN JACINTO CA COMMUNITY FACILITIES DISTRICT NO.2 SERIES A (SPECIAL TAX REVENUE LOC) 3.85 09/01/2009 280,508
590,000 SAN JOAQUIN CA AREA FLOOD CONTROL AGENCY FLOOD PROTECTION RESTORATION FSA INSURED
(SPECIAL FACILITIES REVENUE LOC) 3.00 09/02/2004 597,700
585,000 SAN JUAN CA UNIFIED SCHOOL DISTRICT CAP APPREC-ELECTION OF 1998-B MBIA INSURED
(PROPERTY TAX REVENUE LOC) 2.97^ 08/01/2009 496,267
565,000 SANTA ANA CA UNIFIED SCHOOL DISTRICT ELECTION 1999 SERIES B FGIC INSURED
(PROPERTY TAX REVENUE LOC) 1.54^ 08/01/2005 551,468
825,000 SANTA MONICA CA REDEVELOPMENT AGENCY OCEAN PARK REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE LOC) 4.70 07/01/2012 888,443
325,000 SANTA ROSA CA HIGH SCHOOL DISTRICT FGIC INSURED (PROPERTY TAX REVENUE LOC) 6.75 05/01/2007 337,402
1,250,000 SOUTH ORANGE COUNTY CA PUBLIC FINANCING AUTHORITY FOOTHILL AREA SERIES C FGIC INSURED
(SALES TAX REVENUE LOC) 7.50 08/15/2006 1,437,075
1,000,000 SOUTHGATE CA RECREATION & PARK DISTRICT SERIES A FSA INSURED (LEASE REVENUE LOC) 5.50 10/01/2011 1,030,330
490,000 SOUTHGATE CA RECREATION & PARK DISTRICT SERIES A US BANK INSURED
(LEASE REVENUE LOC) 2.13 10/01/2021 496,336
2,000,000 STATE OF CALIFORNIA PREREFUNDED FGIC INSURED (OTHER REVENUE LOC) 7.10 11/01/2004 2,140,320
400,000 STATE OF CALIFORNIA VETERANS BONDS SERIES AM (PROPERTY TAX REVENUE LOC) 9.00 10/01/2008 504,268
300,000 STATE OF CALIFORNIA VETERANS BONDS SERIES AN (PROPERTY TAX REVENUE LOC) 9.00 04/01/2009 382,782
600,000 STATE OF CALIFORNIA VETERANS BONDS SERIES BH (OTHER REVENUE LOC) 5.35 12/01/2013 631,398
1,000,000 STATE OF CALIFORNIA XLCA-ICR INSURED (OTHER REVENUE LOC) 5.75 10/01/2010 1,165,530
100,000 STOCKTON CA COMMUNITY FACILITIES DISTRICT NO.1 MELLO ROOS WESTON RANCH SERIES A
(OTHER REVENUE LOC) 5.15 09/01/2004 102,361
1,310,000 SUNNYVALE CA AMBAC INSURED (SOLID WASTE REVENUE LOC) 5.00 10/01/2010 1,441,629
220,000 TOWN OF APPLE VALLEY CA MTG INSURED (HEALTHCARE FACILITIES REVENUE LOC) 3.95 06/01/2004 221,943
415,000 TRINITY COUNTY CA PUBLIC UTILITIES DISTRICT ELECTIC DISTRIBUTION FACILITIES
AMBAC INSURED (LEASE REVENUE LOC) 5.00 04/01/2012 456,068
530,000 TRUCKEE-DONNER CA PUBLIC UTILITY DISTRICT SERIES A ACA INSURED
(ELECTRIC REVENUE LOC) 2.50 01/01/2004 530,000
1,060,000 TRUCKEE-DONNER CA PUBLIC UTILITY DISTRICT SERIES A ACA INSURED (ELECTRIC
REVENUE LOC) 4.50 01/01/2008 1,131,465
235,000 UNIVERSITY OF CALIFORNIA REVENUE MULTIPLE PURPOSE PROJECTS SERIES M FGIC
INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.13 09/01/2007 262,032
1,000,000 WHITTIER CA HEALTH FACILITIES REVENUE INSURED PRESBYTERIAN INTERCOMMUNITY
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 06/01/2009 1,181,010
245,000 WHITTIER PUBLIC FINANCING AUTHORITY CA SERIES A GREENLEAF AVE WHITTIER
REDEVELOPMENT (LEASE REVENUE LOC) 5.00 11/01/2012 256,731
100,000 Y S CA SCHOOL FACILITIES FINANCING AUTHORITY SWEETWATER SERIES A MBIA INSURED
(SPECIAL TAX REVENUE LOC) 5.20 09/01/2004 102,753
105,097,940
------------
PUERTO RICO - 2.82%
805,000 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENTS ECON DEFEASED TO CALL DATE MBIA
INSURED (PROPERTY TAX REVENUE LOC) 5.75 07/01/2020 940,546
1,000,000 PUERTO RICO HIGHWAY & TRANSPROTATION AUTHORITY CIFG-TCRS INSURED
(FUEL SALES TAX REVENUE LOC) 5.00 07/01/2008 1,115,710
1,000,000 PUERTO RICO MUNICIPAL FINANCE AGENCY SERIES A FSA INSURED (OTHER REVENUE LOC) 6.00 07/01/2005 1,069,440
3,125,696
------------
TOTAL MUNICIPAL BONDS (COST $105,963,924) 108,223,636
------------
20
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 0.21%
MUTUAL FUND - 0.21%
236,946 WELLS FARGO CALIFORNIA TAX FREE MONEY MARKET TRUST~ $ 236,946
TOTAL SHORT-TERM INVESTMENTS (COST $236,946) 236,946
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $106,795,002)* 98.48% $109,058,732
OTHER ASSETS AND LIABILITIES, NET 1.52 1,679,028
------ ------------
TOTAL NET ASSETS 100.00% $110,737,760
------ ------------
<FN>
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
+/- VARIABLE RATE SECURITIES.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INVESTMENT COMPANIES - 2.67%
64,600 BLACKROCK CALIFORNIA INSURED MUNICIPAL TRUST $ 1,104,014
314,300 MUNIYIELD CALIFORNIA FUND 4,522,777
414,378 MUNIYIELD CALIFORNIA INSURED FUND II 5,788,860
30,000 PUTNAM CA INVESTMENT GRADE MUNICIPAL TRUST 403,800
135,000 VAN KAMPEN CA QUALITY MUNICIPAL TRUST 2,357,100
60,100 VAN KAMPEN CA VALUE MUNICIPAL TRUST 1,016,291
TOTAL INVESTMENT COMPANIES (COST $13,514,436) 15,192,842
------------
PRINCIPAL INTEREST RATE MATURITY DATE
MUNICIPAL BONDS - 96.63%
CALIFORNIA - 95.85%
$2,180,000 ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATION CA SCHOOL OF MECHANIC ARTS
(EDUCATIONAL FACILITIES REVENUE LOC) 5.30% 10/01/2032 2,269,249
6,700,000 ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS CA CHANNING HOUSE
(NURSING HOME REVENUE LOC) 5.50 02/15/2029 6,654,440
2,000,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT (HOSPITAL REVENUE LOC) 5.38 03/01/2020 2,003,720
2,000,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT CORPORATIONS CA REVENUE SAN DIEGO HOSPITAL
ASSOCIATION SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 6.13 08/15/2020 2,104,920
1,800,000 ABAG FINANCIAL AUTHORITY FOR NONPROFIT CORPORATIONS CA REVENUE SAN DIEGO HOSPITAL
ASSOCIATION SERIES C (HEALTHCARE FACILITIES REVENUE LOC) 5.38 03/01/2021 1,792,872
2,000,000 ABAG FINANCING AUTHORITY FOR NONPROFIT CORPORATIONS CA STANFORD UNIVERSITY HOSPITAL
(OTHER REVENUE LOC) 5.50 11/01/2005 2,125,340
1,500,000 ABC UNIFIED SCHOOL DISTRICT CAPITAL APPRECIATION SERIES B (PROPERTY TAX REVENUE LOC) 4.74^ 08/01/2018 757,515
2,765,000 ACALANES UNION HIGH SCHOOL DISTRICT CA ELECTION 2002 SERIES A CAPITAL APPRECIATION
(PROPERTY TAX REVENUE LOC) 4.66^ 08/01/2015 1,621,341
1,500,000 ANAHEIM PUBLIC FINANCING AUTHORITY PUBLIC IMPROVEMENTS PROJECT SERIES C
(LEASE REVENUE LOC) 5.12^ 09/01/2022 583,770
1,900,000 ANTELOPE VY CALIFORNIA HEALTH CARE SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 5.20 01/01/2017 2,067,352
4,345,000 AZTEC SHOPS LIMITED CA SAN DIEGO STATE UNIVERSITY
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.88 09/01/2020 4,530,923
4,455,000 AZTEC SHOPS LIMITED CA SAN DIEGO STATE UNIVERSITY
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 09/01/2031 4,629,101
1,300,000 BURBANK GLENDALE PASADENA AIRPORT AUTHORITY CA (AIRPORT REVENUE LOC) 6.40 06/01/2010 1,305,603
1,195,000 BUTTE GLENN COMMUNITY COLLEGE SERIES A (PROPERTY TAX REVENUE LOC) 5.50 08/01/2019 1,333,477
1,000,000 CALIFORNIA EDUCATION FACILITIES AUTHORITY DOMINICAN UNIVERSITY
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 12/01/2030 1,037,920
2,000,000 CALIFORNIA EDUCATION FACILITIES AUTHORITY KECK GRADUATE INSTITUTE
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.75 06/01/2030 2,182,720
1,000,000 CALIFORNIA EDUCATION FACILITIES AUTHORITY POOLED COLLEGE & UNIVERSITY PROJECTS
SERIES B (COLLEGE AND UNIVERSITY REVENUE LOC) 5.25 04/01/2009 982,790
1,500,000 CALIFORNIA EDUCATION FACILITIES AUTHORITY POOLED COLLEGE AND UNIVERSITY
PROJECTS SERIES B (COLLEGE AND UNIVERSITY REVENUE LOC) 5.13 04/01/2009 1,508,895
240,000 CALIFORNIA EDUCATION FACILITIES FACILITIES AUTHORITY UNREFUNDED
BALANCE LOYOLA (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 10/01/2014 240,905
1,000,000 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY REVENUE
(GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.00 11/01/2018 1,044,210
3,340,000 CALIFORNIA HEALTH FACILITIES ADVENTIST HEALTH SYSTEM
(HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC) 5.00 03/01/2033 3,163,381
4,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY ADVENTIST HEALTH SYSTEMS
SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 5.00 03/01/2028 3,800,680
22
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$3,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY CASA COLINA
(HEALTHCARE FACILITIES REVENUE LOC) 6.00% 04/01/2022 $ 3,108,180
2,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY INSURED DE LAS COMPANAS SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.75 07/01/2015 2,153,460
2,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY INSURED SCIPPS MEMORIAL HOSPITAL
SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 6.40 10/01/2012 2,044,520
1,795,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY INSURED SCIPPS MEMORIAL HOSPITAL
SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 6.25 10/01/2013 1,816,414
2,750,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY INSURED SUTTER HEALTH SERIES C
(HEALTHCARE FACILITIES REVENUE LOC) 5.13 08/15/2022 2,845,452
3,500,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY REVENUE COTTAGE HEALTH SYSTEM
SERIES B MBIA INSURED (HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC) 4.75 11/01/2026 3,494,925
2,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY SCRIPPS RESEARCH INSTITUTION
SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 6.63 07/01/2014 2,084,980
1,180,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY SMALL FACILITY LOAN SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.75 03/01/2020 1,189,334
1,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY ST FRANCIS MEMORIAL HOSPITAL
SERIES C (HEALTHCARE FACILITIES REVENUE LOC) 5.88 11/01/2023 1,182,170
6,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY SUTTER HEALTH SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 08/15/2031 6,717,900
2,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY THE EPISCOPAL HOME
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 02/01/2021 2,034,160
1,000,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY VALLEYCARE PROJECT SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.50 05/01/2005 1,013,690
3,155,000 CALIFORNIA HEALTH FACILITIES LUCILE SALTER PACKARD HOSPITAL
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 08/15/2020 3,335,024
2,205,000 CALIFORNIA HOUSING FINANCE AGENCY HOME MORTGAGE SERIES M
(HOUSING REVENUE LOC) 5.60 08/01/2029 2,277,280
500,000 CALIFORNIA HOUSING FINANCE AGENCY MULTI UNIT RENTAL HOUSING SERIES B II
(HOUSING REVENUE LOC) 6.70 08/01/2015 504,915
2,825,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES A (HOUSING REVENUE LOC) 5.50 08/01/2015 2,875,398
8,020,000 CALIFORNIA HOUSING FINANCING AGENCY SERIES T (HOUSING REVENUE LOC) 6.16^ 02/01/2032 1,459,560
1,275,000 CALIFORNIA INFRASTRUCTURE & ECONMIC DEVELOPMENT BANK SCRIPPS RESEARCH INSTITUTE
SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 5.75 07/01/2030 1,388,832
5,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK (LEASE REVENUE LOC) 5.50 06/01/2025 5,429,750
7,500,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK J DAVID GLADSTONE INSTITUTE
PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.25 10/01/2034 7,646,925
1,425,000 CALIFORNIA PUBLIC WORKS BOARD DEPERTMENT OF GENERAL SERVICES TEALE DATA CENTER
SERIES B (LEASE REVENUE LOC) 5.25 03/01/2019 1,535,836
700,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY SERIES B (HOUSING REVENUE LOC) 6.25 12/01/2031 734,454
1,105,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY SERIES B5 (HOUSING REVENUE LOC) 6.35 12/01/2029 1,120,835
1,090,000 CALIFORNIA SPECIAL DISTRICT ASSOCIATION FINANCE CORPORATION SERIES MM
(LEASE REVENUE LOC) 5.50 06/01/2021 1,135,388
5,000,000 CALIFORNIA STATE AMBAC TCRS BANK OF NEW YORK
(GENERAL OBLIGATION - STATES, TERRITORIES LOC) 5.25 12/01/2024 5,223,600
5,880,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES A (ELECTRIC REVENUE LOC) 5.50 05/01/2016 6,621,703
1,000,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES A MBIA (ELECTRIC REVENUE LOC) 6.00 05/01/2013 1,178,840
2,100,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES B-2 (ELECTRIC REVENUE LOC)+/- 0.72 05/01/2022 2,100,000
5,000,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES J-2 (WATER REVENUE LOC) 6.00 12/01/2007 5,755,650
1,000,000 CALIFORNIA STATE GO (GENERAL OBLIGATION - STATES, TERRITORIES LOC) 5.50 03/01/2014 1,079,110
1,200,000 CALIFORNIA STATE HOUSING FINANCE AGENCY - SERIES L (HOUSING REVENUE LOC) 6.40 08/01/2027 1,205,280
23
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$3,850,000 CALIFORNIA STATE PUBLIC WORKS BOARD UCLA REPLACEMENT HOSPITAL SERIES A
(LEASE REVENUE LOC) 5.00% 10/01/2011 $ 4,323,550
3,000,000 CALIFORNIA STATE REF XLCA ICR (GENERAL OBLIGATION - STATES, TERRITORIES LOC) 5.00 02/01/2019 3,142,020
3,500,000 CALIFORNIA STATE UNIVERSITY FRESNO ASSOCIATION INCORPORATED SR-AUX ORGANIZATION
EVENT CENTER (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 07/01/2022 3,643,850
5,000,000 CALIFORNIA STATE UNIVERSITY HOUSING SYSTEM (COLLEGE AND UNIVERSITY REVENUE LOC) 5.80 11/01/2017 5,462,050
165,000 CALIFORNIA STATE UNREFUNDED BALANCE (TAX REVENUE LOC) 5.75 03/01/2015 174,169
1,200,000 CALIFORNIA STATE XLCA ICR (GENERAL OBLIGATION - STATES, TERRITORIES LOC) 6.75 08/01/2012 1,482,636
7,830,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY CATHOLIC HEALTHCARE WEST
(HEALTHCARE FACILITIES REVENUE LOC) 6.50 07/01/2020 8,468,458
3,310,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY CEDARS SINAI MEDICAL CENTER
(HEALTHCARE FACILITIES REVENUE LOC) 6.50 08/01/2012 3,799,450
2,000,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY CHILDRENS HOSPITAL LA
MBIA IBC (HEALTHCARE FACILITIES REVENUE LOC) 5.25 08/15/2029 2,083,500
2,000,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY CHILDRENS HOSPITAL
LOS ANGELES MBIA (HEALTHCARE FACILITIES REVENUE LOC) 5.25 08/15/2029 2,089,440
4,750,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY DISPOSAL REPUBLIC SERVICES
SERIES A (SOLID WASTE REVENUE LOC) 4.95 12/01/2012 4,732,900
2,010,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY PIONEER PARK PROJECT SERIES T
(HOUSING REVENUE LOC) 6.10 12/20/2035 2,127,545
2,250,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY QUAIL RIDGE APARTMENTS
SERIES E1 (HOUSING REVENUE LOC) 5.25 07/01/2022 2,301,052
2,540,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY REVENUE VIEWPOINT SCHOOL
ACA INSURED (LEASE REVENUE LOC) 5.75 10/01/2033 2,666,517
300,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY SERIES A
(WATER REVENUE LOC) 6.00 07/01/2010 309,000
5,930,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY SERIES A ASPIRE PUBLIC
SCHOOLS OAKLAND PROJECT (OTHER REVENUE LOC) 7.25 08/01/2031 5,940,200
4,210,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY SERIES B
(WATER & WASTEWATER AUTHORITY REVENUE LOC) 5.25 10/01/2027 4,429,762
5,000,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY THE INTERNEXT GROUP
(HEALTHCARE FACILITIES REVENUE LOC) 5.38 04/01/2017 5,021,900
3,500,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WATER REVENUE POOLED
FINANCING PROGRAM SERIES C FSA INSURED (WATER REVENUE LOC) 5.25 10/01/2024 3,727,850
965,000 CALIPATRIA UNIFIED SCHOOL DISTRICT CA ELECTION 1995 SERIES C CAPITAL APPRECIATION
(PROPERTY TAX REVENUE LOC) 5.54^ 08/01/2019 411,746
1,080,000 CALIPATRIA UNIFIED SCHOOL DISTRICT CA ELECTION 1995 SERIES C CAPITAL APPRECIATION
(PROPERTY TAX REVENUE LOC) 5.64^ 08/01/2020 429,386
200,000 CAPITOL AREA DEVELOPMENT AUTHORITY SERIES A (LEASE REVENUE LOC) 6.50 04/01/2012 202,560
1,080,000 CARSON CALIFORNIA REDEVELOPMENT AGENCY TAX ALLOCATION SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.25 10/01/2019 1,192,612
1,140,000 CARSON CALIFORNIA REDEVELOPMENT AGENCY TAX ALLOCATION SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.25 10/01/2020 1,251,127
5,000,000 CENTER UNIFIED SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES C
(PROPERTY TAX REVENUE LOC) 4.99^ 09/01/2021 2,093,200
2,645,000 CENTRAL VALLEY SCHOOL DISTRICT FINANCING AUTHORITY SERIES A
(EDUCATIONAL FACILITIES REVENUE LOC) 6.45 02/01/2018 3,292,681
3,000,000 CHICO PUBLIC FINANCING AUTHORITY TAX ALLOCATION MERGED REDEVELOPMENT AREA PROJECT
(TAX INCREMENTAL REVENUE LOC) 5.13 04/01/2021 3,168,030
1,800,000 CHINO BASIN REGIONAL FINANCING AUTHORITY CA MUNICIPAL WATER DISTRICT SEWER SYSTEM
PROJECT (SEWER REVENUE LOC) 6.00 08/01/2016 1,881,666
24
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$1,185,000 CITY OF LA VERNE CA 1987 CAPITAL IMPROVEMENT PROJECT (LEASE REVENUE LOC) 5.70% 06/01/2015 $ 1,192,146
1,000,000 COLTON JOINT UNIFIED SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE LOC) 5.38 08/01/2017 1,126,520
270,000 CONTRA COSTA COUNTY CALIFORNIA GNMA (HOUSING REVENUE LOC) 7.75 05/01/2022 366,714
5,500,000 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY CA PEASEANT HILL REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE LOC) 5.25 08/01/2028 5,540,755
3,000,000 CONTRA COSTA TRANSPORTATION AUTHORITY CA SERIES A (SALES TAX REVENUE LOC) 5.50 03/01/2005 3,151,050
2,755,000 CONTRA COSTA TRANSPORTATION AUTHORITY CA SERIES A (SALES TAX REVENUE LOC) 6.50 03/01/2009 3,190,180
805,000 COUNTY OF MERCED CA REFUNDED CONSTRUCTION (LEASE REVENUE LOC) 6.00 10/01/2012 811,810
1,035,000 DALY CITY HOUSING DEVELOPMENT FINANCE AGENCY CA FRANCISCAN ACQUISITION PROJECT
SERIES A (HOUSING REVENUE LOC) 5.65 12/15/2019 1,093,819
5,250,000 DUARTE CALIFORNIA SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 5.25 04/01/2024 5,172,352
2,000,000 DUARTE CALIFORNIA SERIES A ACA (HEALTHCARE FACILITIES REVENUE LOC) 5.25 04/01/2019 2,071,840
4,000,000 DUARTE REDEVELOPMENT AGENCY CA MERGED REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE LOC) 5.05^ 12/01/2016 2,100,360
3,300,000 EAST PALO ALTO REDEVELOPMENT AGENGY TAX ALLOCATION UNIVERSITY CIRCLE GATEWAY 101
CORRIDOR PROJECT (TAX INCREMENTAL REVENUE LOC) 6.63 10/01/2029 3,550,866
4,430,000 EAST SIDE UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CA SERIES A
(PROPERTY TAX REVENUE LOC) 5.05^ 09/01/2018 2,130,830
5,185,000 EAST SIDE UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CA SERIES A
(PROPERTY TAX REVENUE LOC) 5.16^ 09/01/2019 2,335,791
5,420,000 EAST SIDE UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CA SERIES A
(PROPERTY TAX REVENUE LOC) 5.26^ 09/01/2020 2,282,633
2,500,000 EL MONTE CA DEPARTMENT OF PUBLIC SERVICES FACILITIES PROJECT PHASE II
(LEASE REVENUE LOC) 5.25 01/01/2034 2,612,550
500,000 EMERYVILLE PUBLIC FINACING AUTHORITY CA ACCESSMENT DISTRIBUTION REFINANCING
(SPECIAL FACILITIES REVENUE LOC) 5.75 09/02/2014 510,340
1,750,000 EMERYVILLE PUBLIC FINANCING AUTHORITY CA ACCESSMENT DISTRIBUTION REFINANCING
(SPECIAL FACILITIES REVENUE LOC) 5.90 09/02/2021 1,785,297
1,500,000 ENCINITAS UNION SCHOOL DISTRICT CA CAPITAL APPRECIATION (PROPERTY TAX REVENUE LOC) 4.74^ 08/01/2018 757,515
2,000,000 ESCONDIDI JOINT POWERS FINANCING AUTHORITY CA CIVIC CENTER PROJECT SERIES B
(LEASE REVENUE LOC) 6.13 09/01/2011 2,344,400
2,125,000 ESCONDIDO JOINT POWERS FINANCING AUTHORITY CA CA CENTER FOR THE ARTS PROJECT
(LEASE REVENUE LOC) 6.00 09/01/2018 2,318,864
1,595,000 FOLSOM CORDOVA UNION SCHOOL DISTRICT FACILITIES IMPROVEMENT DISTRICT NO.2 CAPITAL
APPRECIATION SERIES A (PROPERTY TAX REVENUE LOC) 4.83^ 10/01/2019 752,154
1,285,000 FONTANA REDEVELOPMENT AGENCY CA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.50 10/01/2017 1,349,982
5,040,000 FONTANA REDEVELOPMENT AGENCY CA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.50 10/01/2027 5,076,540
4,785,000 FONTANA REDEVELOPMENT AGENCY CA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.60 10/01/2027 4,859,646
3,000,000 FONTANA UNIFIED SCHOOL DISTRICT CA SERIES C (PROPERTY TAX REVENUE LOC) 6.15 05/01/2020 3,428,970
1,000,000 FRESNO CA STREET IMPROVEMENT PROJECT (LEASE REVENUE LOC) 6.63 12/01/2011 1,030,300
1,250,000 FRESNO COUNTY FINANCING AUTHORITY CA AMERICAN AVENUE LANDFILL PROJECT
(SPECIAL FACILITIES REVENUE LOC) 5.75 05/15/2014 1,345,925
2,000,000 FRESNO UNIFIED SCHOOL DISTRICT CA SERIES A (PROPERTY TAX REVENUE LOC) 5.70 08/01/2015 2,043,020
1,550,000 GILROY CA BONDFANTE GARDENS PARK PROJECT (RECREATIONAL FACILITIES REVENUE LOC) 8.15 11/01/2015 930,000
1,000,000 GLENDALE CA UNIFIED SCHOOL DISTRICT CA SERIES A (PROPERTY TAX REVENUE LOC) 5.75 09/01/2017 1,137,590
2,420,000 GOLDEN WEST SCHOOLS FINANCING AUTHORITY CA CAPITAL APPRECIATION SERIES A
(OTHER REVENUE LOC) 4.43^ 08/01/2015 1,456,767
25
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$2,500,000 HAWAIIAN GARDENS REDEVELOPMENT AGENCY CA (TAX INCREMENTAL REVENUE LOC) 6.00% 12/01/2013 $ 2,761,200
4,500,000 HAWTHORNE SCHOOL DISTRICT CA (LEASE REVENUE LOC) 6.00^ 11/01/2025 4,363,245
1,340,000 HOLLISTER CA REDEVELOPMENT AGENCY TAX ALLOCATION COMMUNITY DEVELOPMENT PROJECT
(TAX ALLOCATION REVENUE LOC) 5.25 10/01/2019 1,461,618
3,750,000 INDUSTRY URBAN DEVELOPMENT AGENCY CA TAX ALLOCATION CIVIC RECREATION SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.00 05/01/2017 4,006,200
1,555,000 INGLEWOOD CA REDEVELOPMENT AGENCY SERIES A MERGED REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE LOC) 5.25 05/01/2017 1,754,273
270,000 JAMUL-DULZURA UNION SCHOOL DISTRICT SERIES C (PROPERTY TAX REVENUE LOC) 6.40 08/01/2016 273,726
2,000,000 KERN HIGH SCHOOL DISTRICT SERIES D (PROPERTY TAX REVENUE LOC) 5.60 08/01/2012 2,046,560
2,000,000 LAGUNA SALADA UNION SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES B
(PROPERTY TAX REVENUE LOC) 4.91^ 08/01/2020 894,700
3,010,000 LAKE ELSINORE CA SCHOOL FINANCING AUTHORITY REVENUE SPECIAL TAX HORSETHIEF CANYON
(SPECIAL TAX REVENUE LOC) 5.63 09/01/2016 3,162,396
4,000,000 LAKE ELSINORE PUBLIC FINANCING AUTHORITY CA SERIES A (TAX INCREMENTAL REVENUE LOC) 5.50 09/01/2030 4,057,560
1,055,000 LANCASTER CA FINANCING AUTHORITY PROJECT #5 & #6 REDEVELOPMENT PROJECTS
SERIES B FGIC INSURED 5.00 02/01/2020 1,112,445
1,310,000 LANCASTER CA FINANCING AUTHORITY TAX ALLOCATION REVENUE PROJECT NUMBER 5 AND 6
REDEVELOPMENT PROJECTS (TAX REVENUE LOC) 5.25 02/01/2018 1,474,418
2,000,000 LANCASTER CALIFORNIA REDEVELOPMENT AGENCY TAX ALLOCATION
(TAX ALLOCATION REVENUE LOC) 4.75 08/01/2027 1,999,920
2,965,000 LANCASTER CALIFORNIA SCHOOL DISTRICT (GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.25^ 08/01/2024 1,020,405
1,055,000 LODI UNIFIED SCHOOL DISTRICT CA (PROPERTY TAX REVENUE LOC) 5.00 08/01/2015 1,150,003
3,000,000 LONG BEACH FINANCING AUTHORITY CA (LEASE REVENUE LOC) 6.00 11/01/2008 3,506,850
1,500,000 LONG BEACH FINANCING AUTHORITY CA (LEASE REVENUE LOC) 6.00 11/01/2017 1,812,705
2,900,000 LOS ALTOS SCHOOL DISTRICT CA ELECTION OF 1998 SERIES B CAPITAL APPRECIATION
(PROPERTY TAX REVENUE LOC) 5.32^ 08/01/2021 1,152,402
1,025,000 LOS ANGELES COUNTY CA CAPITAL APPRECIATION AMBAC INSURED 4.93^ 09/01/2020 455,202
2,000,000 LOS ANGELES COUNTY CALIFORNIA (LEASE REVENUE LOC) 6.00 12/01/2015 2,414,200
2,700,000 LOS ANGELES COUNTY CAPITAL ASSET LEASING CORPORATION CA SERIES B
(LEASE REVENUE LOC) 6.00 12/01/2014 3,272,427
2,900,000 LOS ANGELES DEPARTMENT OF AIRPORTS CA SERIES A (AIRPORT REVENUE LOC) 5.50 05/15/2008 3,097,316
2,750,000 LOS ANGELES DEPARTMENT OF WATER & POWER CA REFUNDED BALANCE SECOND ISSUE MBIA
(ELECTRIC REVENUE LOC) 5.00 10/15/2017 2,811,572
4,745,000 LOS ANGELES HARBOR DEPARTMENT CA SERIES B (AIRPORT REVENUE LOC) 5.38 11/01/2015 4,948,466
2,465,000 LOS ANGELES HARBOR DEPARTMENT CA SERIES B (AIRPORT REVENUE LOC) 5.38 11/01/2023 2,586,623
2,200,000 LOS ANGELES UNIFIED SCHOOL DISTRICT CA MULTIPLE PROPERTY PROJECTS SERIES A
(LEASE REVENUE LOC) 5.50 10/01/2010 2,447,874
1,850,000 LOS ANGELES UNIFIED SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE LOC) 5.38 07/01/2017 2,075,830
1,275,000 MADERA CALIFORNIA SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 5.25 08/01/2023 1,357,352
2,235,000 MERCED UNION HIGH SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 4.74^ 08/01/2018 1,128,697
1,055,000 MERCED UNION HIGH SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 4.99^ 08/01/2021 443,480
1,000,000 METROPOLITAN WATER DISTRICT SOUTHERN CALIFORNIA (WATER REVENUE LOC) 5.00 07/01/2014 1,119,660
1,500,000 METROPOLITAN WATER DISTRICT SOUTHERN CALIFORNIA WATERWORKS REVENUE SERIES BJPM
INSURED (WATER REVENUE LOC)+/- 1.07 07/01/2027 1,500,000
2,000,000 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT CA PROMISSORY NOTES
(PROPERTY TAX REVENUE LOC) 7.00 09/01/2014 2,112,980
26
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$4,375,000 MONROVIA REDEVELOPMENT AGENCY CA CENTRAL REDEVELOPMENT PROJECT AREA 1
(TAX INCREMENTAL REVENUE LOC) 5.00% 05/01/2021 $ 4,590,994
1,660,000 MOUNTAIN VIEW CA SHORELINE REGIONAL PARK COMMUNITY SERIES A AMBAC INSURED 5.00 08/01/2018 1,774,640
1,260,000 MOUNTAIN VIEW LOS ALTOS UNION HIGH SCHOOL DISTRICT CA SERIES D
(PROPERTY TAX REVENUE LOC) 4.83^ 08/01/2019 598,928
720,000 NATOMAS UNIFIED SCHOOL DISTRIC CA SERIES A (PROPERTY TAX REVENUE LOC) 5.75 09/01/2012 737,194
1,600,000 NEVADA UNION HIGH SCHOOL DISTRICT CA (PROPERTY TAX REVENUE LOC) 12.00 08/01/2018 2,914,000
4,750,000 NORTHERN CA TRANSMISSION REVEUNE CALIFORNIA-OREGON TRANSMISSION PROJECT SERIES A
(POWER REVENUE LOC) 7.00 05/01/2013 5,969,943
1,465,000 OAKLAND CALIFORNIA (PROPERTY TAX REVENUE LOC) 6.00 06/15/2012 1,485,276
2,500,000 OCEANSIDE CA COMMUNITY DEVELOPMENT COMMON TAX ALLOCATION DOWNTOWN
REDEVELOPMENT PROJECT ESCROW BONDS (TAX ALLOCATION REVENUE LOC) 5.20 09/01/2017 2,514,550
550,000 OCEANSIDE CA COMMUNITY DEVELOPMENT COMMON TAX ALLOCATION DOWNTOWN
REDEVELOPMENT PROJECT ESCROW BONDS (TAX ALLOCATION REVENUE LOC) 5.70 09/01/2025 551,815
1,500,000 ONTARIO REDEVELOPMENT FINANCING AUTHORITY CA ONTARIO REDEVELOPMENT PROJECT NO. 1
(SPECIAL TAX REVENUE LOC) 6.00 08/01/2015 1,535,085
2,160,000 ORCHARD SCHOOL DISTRICT CA CAPITAL APPRECIATION ELECTION OF 2000 SERIES A
(PROPERTY TAX REVENUE LOC) 5.25^ 08/01/2024 743,364
1,000,000 PARAMOUNT UNIFIED SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 4.99^ 09/01/2021 418,640
1,000,000 PARAMOUNT UNIFIED SCHOOL DISTRICT CA CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 5.09^ 09/01/2022 391,310
105,000 PARLIER REDEVELOPMENT AGENCY UNREFUNDED BALANCE SERIES A
(TAX INCREMENTAL REVENUE LOC) 6.95 08/01/2023 107,014
1,030,000 PERRIS PUBLIC FINANCING AUTHORITY CA TAX ALLOCATION SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.25 10/01/2020 1,123,555
2,045,000 PERRIS PUBLIC FINANCING AUTHORITY CA TAX ALLOCATION SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.75 10/01/2031 2,142,731
2,000,000 PICO RIVERA CA WATER AUTHORITY REVENUE WATER SYSTEM PROJECT SERIES A
(WATER REVENUE LOC) 5.50 05/01/2019 2,282,600
7,000,000 PICO RIVERA WATER AUTHORITY CA SERIES A (WATER REVENUE LOC) 6.25 12/01/2032 7,107,520
2,515,000 PLACENTIA REDEVELOPMENT AUTHORITY CA SERIES A (TAX INCREMENTAL REVENUE LOC) 5.85 08/01/2032 2,608,583
2,680,000 PONOMA UNIFIED SCHOOL DISTRICT CA SERIES A (PROPERTY TAX REVENUE LOC) 6.55 08/01/2029 3,437,073
1,000,000 PORT OF OAKLAND CA MITSUI OSK LINES LIMITED SERIES A
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 6.70 01/01/2007 1,013,970
2,155,000 PORT OF OAKLAND CA MITSUI OSK LINES LIMITED SERIES A
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 6.80 01/01/2019 2,169,288
2,000,000 PORT OF OAKLAND CA SERIES L (HARBOR DEPARTMENT REVENUE LOC) 5.50 11/01/2020 2,165,540
5,000,000 PORT OF OAKLAND CA SERIES L (HARBOR DEPARTMENT REVENUE LOC) 5.00 11/01/2021 5,150,850
3,600,000 PORT REDWOOD CITY CA (HARBOR DEPARTMENT REVENUE LOC) 5.13 06/01/2030 3,478,572
1,010,000 POWAY CALIFORNIA TAX ALLOCATION (TAX ALLOCATION REVENUE LOC) 5.38 06/15/2016 1,123,595
2,325,000 RANCHO MIRAGE CA REDEVELOPMENT AGENCY TAX ALLOCATION HOUSING SERIES A
(TAX REVENUE LOC) 4.63 04/01/2024 2,308,237
3,340,000 RANCHO MIRAGE CA REDEVELOPMENT AGENCY TAX ALLOCATION SUB LIEN WHITEWATER
REDEVELOPMENT SERIES A-1 (TAX ALLOCATION REVENUE LOC) 5.37^ 04/01/2025 1,083,162
1,000,000 RANCHO MIRAGE JOINT POWERS FINANCING AUTHORITY CA SERIES B EISENHOWER MEDICAL CENTER
(HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC)+/- 1.14 01/01/2026 1,000,000
2,530,000 REDLANDS CA REDEVELOPMENT AGENCY TAX ALLOCATION REVENUE REDEVELOPMENT PROJECT
AREA CLASS A (TAX REVENUE LOC) 4.63 08/01/2022 2,546,470
1,345,000 RIALTO REDEVELOPMENT AGENCY CA MERGED PROJECT AREA SERIES A
(TAX INCREMENTAL REVENUE LOC) 4.88 09/01/2018 1,361,987
27
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$1,000,000 RIALTO REDEVLOPMENT AGENCY CA MERGED PROJECT AREA SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.00% 09/01/2021 $ 1,006,930
3,115,000 RICHMOND CALIFORNIA WASTEWATER REVENUE (SEWER REVENUE LOC) 5.80 08/01/2018 3,587,888
1,100,000 RICHMOND JOINT POWERS FINANCING AUTHORITY CA LEASE & GAS TAX SERIES A
(LEASE REVENUE LOC) 5.25 05/15/2013 1,156,001
8,595,000 RIVERSIDE COUNTY ASSET LEASING CORPORATION CA RIVERSIDE COUNTY HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.38^ 06/01/2026 2,614,599
45,000 RIVERSIDE COUNTY CA GNMA SERIES A (HOUSING REVENUE LOC) 6.85 10/01/2016 47,061
4,560,000 RIVERSIDE COUNTY PUBLIC FINANCING AUTHORITY CA REDEVELOPMENT PROJECTS SERIES A
(TAX ALLOCATION REVENUE LOC) 5.50 10/01/2022 4,629,950
2,000,000 ROBLA CA SCHOOL DISTICT SERIES D (PROPERTY TAX REVENUE LOC) 5.30^ 08/01/2025 646,700
3,990,000 ROCKLIN REDEVELOPMENT AGENCY CA ROCKLIN REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE LOC) 5.50 09/01/2031 4,097,570
5,000 SACRAMENTO CITY FINANCING AUTHORITY CA UNREFUNDED BALANCE (OTHER REVENUE LOC) 6.70 11/01/2011 5,022
1,115,000 SACRAMENTO COUNTY CA PUBLIC FINANCING AUTHORITY COUNTY & CITY REDEVELOPMENT
PROJECT SERIES A FGIC INSURED 5.00 12/01/2022 1,170,081
2,870,000 SACRAMENTO COUNTY HOUSING AUTHORITY VERANDAS APARTMENTS PROJECT SERIES H
(HOUSING REVENUE LOC) 5.70 03/01/2034 2,985,919
2,500,000 SACRAMENTO MUNICIPAL UTILITY DISTRICT SERIES A (ELECTRIC REVENUE LOC) 6.25 08/15/2010 3,001,225
300,000 SACRAMENTO MUNICIPAL UTILTIY DISTRIC CA ESCROWED TO MATURITY SERIES C
(ELECTRIC REVENUE LOC) 5.75 11/15/2008 307,020
1,245,000 SALINAS CA MONTEREY STREET PARKING STRUCTURE SERIES A AMBAC INSURED 5.00 09/01/2028 1,279,511
1,000,000 SAN DIEGO CA PUBLIC FACILITIES FINANCE AUTHORITY SERIES A (LEASE REVENUE LOC) 5.25 05/15/2020 1,013,670
2,500,000 SAN DIEGO CA UNION SCHOOL DISTRICT CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 4.91^ 07/01/2020 1,122,900
3,200,000 SAN DIEGO COUNTY CA BURNHAM INSTITUTE PROJECT (LEASE REVENUE LOC) 6.25 09/01/2029 3,319,744
4,500,000 SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISION CA SERIES A
(SALES TAX REVENUE LOC) 6.00 04/01/2008 5,011,245
3,910,000 SAN DIEGO REDEVELOPMENT AGENCY CA CAPITAL APPRECIATION TAX ALLCOCATION CENTRE
(TAX INCREMENTAL REVENUE LOC) 5.25^ 09/01/2023 1,411,080
1,060,000 SAN DIEGO REDEVELOPMENT AGENCY CA CENTRE CITY SUB PARKING SERIES B
(PARKING FACILITIES REVENUE LOC) 5.30 09/01/2020 1,083,627
5,735,000 SAN FRANCISCO CITY & COUNTY AIRPORT COMMISSION CA SECOND SERIES 27B
(AIRPORT REVENUE LOC) 5.25 05/01/2017 6,258,778
2,500,000 SAN FRANCISCO CITY & COUNTY AIRPORT COMMISSION CA SECOND SERIES 27B
(AIRPORT REVENUE LOC) 5.00 05/01/2019 2,634,375
2,390,000 SAN FRANCISCO CITY & COUNTY AIRPORT COMMISSION SECOND SERIES ISSUE 15A
(AIRPORT REVENUE LOC) 5.00 05/01/2017 2,476,375
1,055,000 SAN FRANCISCO CITY & COUNTY REDEVELOPMENT FINANCING AUTHORITY CA SERIES C
(TAX INCREMENTAL REVENUE LOC) 5.25 08/01/2016 1,170,617
650,000 SAN JACINTO COMMUNITY FACILITIES DISTRICT CA SERIES A (SPECIAL TAX REVENUE LOC) 2.90 09/01/2006 656,656
4,000,000 SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY CA SENIOR LEIN
(TOLL ROAD REVENUE LOC) 7.55 01/01/2008 4,909,280
2,000,000 SAN JOSE CA CAPITAL ACCUMULATOR (HOUSING REVENUE LOC) 4.48^ 04/01/2016 1,162,300
3,300,000 SAN JOSE CA EL PARADOR APARTMENTS PROJECT SERIES A (HOUSING REVENUE LOC) 6.20 01/01/2041 3,487,209
1,205,000 SAN JOSE UNIFIED SCHOOL DISTRICT (LEASE REVENUE LOC) 5.02^ 01/01/2021 518,728
1,055,000 SAN JUAN CALIFORNIA UNIFIED SCHOOL DISTRICT (GENERAL OBLIGATION - SCHOOL
DISTRICTS LOC) 5.25 08/01/2017 1,175,091
1,170,000 SAN JUAN UNIFIED SCHOOL DISTRICT (GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.25 08/01/2018 1,295,249
5,270,000 SAN MARCOS CA PUBLIC FINANCING AUTHORITY REVENUE SERIES A
(GENERAL OBLIGATION - STATES, TERRITORIES LOC) 6.25 09/02/2022 6,233,778
28
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$1,310,000 SAN MARCOS PUBLIC FACILITIES AUTHORITY CA ESCROWED TO MATURITY
(STATE & LOCAL GOVERNMENTS LOC) 4.21%^ 01/01/2015 $ 828,392
1,000,000 SAN MATEO REDEVELOPMENT AGENCY (TAX INCREMENTAL REVENUE LOC) 5.40 08/01/2018 1,065,570
3,000,000 SANTA ANA CA FINANCING AUTHORITY INNER CITY COMMUTER SERIES C (LEASE REVENUE LOC) 5.60 09/01/2019 3,060,210
2,000,000 SANTA CLARA COUNTY CA HOUSING AUTHORITY SERIES A RIVERTOWN APARTMENTS PROJECT
(HOUSING REVENUE LOC) 6.00 08/01/2041 2,032,200
6,250,000 SANTA CLARA COUNTY HOUSING AUTHORITY CA BLOSSOM RIVER APARTMENTS SERIES A
(HOUSING REVENUE LOC) 6.50 09/01/2039 5,742,375
4,284,000 SANTA CLARA COUNTY HOUSING AUTHORITY CA THE WILLOWS APARTMENTS SERIES A
(HOUSING REVENUE LOC) 6.40 06/01/2030 4,044,781
1,195,000 SANTA ROSA HIGH SCHOOL DISTRICT CA (PROPERTY TAX REVENUE LOC) 5.90 05/01/2013 1,236,825
2,000,000 SARATOGA CA UNION SCHOOL DISTRICT CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE LOC) 4.91^ 09/01/2020 891,100
1,750,000 SIMI VALLEY UNIFIED SCHOOL DISTRICT CAPITAL IMPROVEMENT PROJECTS
(LEASE REVENUE LOC) 5.25 08/01/2022 1,944,513
1,000,000 SONOMA VALLEY UNIFIED SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 6.00 07/15/2021 1,106,090
1,765,000 SOUTH GATE PUBLIC FINANCING AUTHORITY CA SOUTH GATE REDEVELOPMENT PROJECT NO.1
(TAX INCREMENTAL REVENUE LOC) 5.25 09/01/2019 1,921,326
1,225,000 SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY SERIES A SOUTH TAHOE REDEVELOPMENT
PROJECT 1 (NOT APPLICABLE LOC) 5.45 10/01/2033 1,225,159
80,000 SOUTHERN CALIFORNIA HOME FINANCING AUTHORITY GNMA & FNMA SERIES A
(HOUSING REVENUE LOC) 6.75 09/01/2022 80,081
50,000 SOUTHERN CALIFORNIA HOME FINANCING AUTHORITY GNMA SERIES A
(HOUSING REVENUE LOC) 7.63 10/01/2022 50,042
1,000,000 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (ELECTRIC REVENUE LOC) 6.75 07/01/2011 1,226,820
10,000 STOCKTON CA MORTGAGE BACKED SECURITIES PROGRAM SERIES A (HOUSING REVENUE LOC) 7.50 02/01/2023 10,457
5,690,000 SULPHUR SPRINGS UNION SCHOOL DISTRICT CA INTEREST ACCRUAL SERIES A
(PROPERTY TAX REVENUE LOC) 4.07^ 09/01/2013 3,853,325
1,000,000 TEMECULA VALLEY UNIFIED SCHOOL DISTRICT SERIES D (PROPERTY TAX REVENUE LOC) 6.00 09/01/2014 1,017,860
2,705,000 TORRANCE CA (LEASE REVENUE LOC) 5.75 04/01/2016 2,893,701
5,725,000 UNION CITY COMMUNITY REDEVELOPMENT AGENCY SERIES A COMMUNITY REDEVELOPMENT
PROJECT (SPECIAL FACILITIES REVENUE LOC) 5.38 10/01/2034 6,066,611
940,000 UNIVERSITY OF CALIFORNIA MULTI PURPOSE SERIES K (COLLEGE AND UNIVERSITY REVENUE LOC) 5.25 09/01/2024 976,152
3,275,000 VALLEJO CA WATER IMPROVEMENT PROJECT SERIES A (WATER REVENUE LOC) 5.70 05/01/2016 3,602,566
2,595,000 VERNON CALIFORNIA MALBURG GENERATING STATION PROJECT (ELECTRIC REVENUE LOC) 5.50 04/01/2021 2,650,870
1,140,000 VERNON CALIFORNIA MALBURG GENERATING STATION PROJECT (ELECTRIC REVENUE LOC) 5.50 04/01/2023 1,160,611
2,500,000 VISTA COMMUNITY DEVELOPMENT COMMISSION CA VISTA REDEVELOPMENT PROJECT AREA
(TAX INCREMENTAL REVENUE LOC) 5.88 09/01/2037 2,612,450
1,135,000 WALNUT VALLEY UNIFIED SCHOOL DISTRICT CA SERIES C (PROPERTY TAX REVENUE LOC) 5.75 08/01/2015 1,159,459
1,000,000 WEST CONTRA COSTA UNIFIED SCHOOL DISTRICT ELECTION OF 2000 SERIES C
(PROPERTY TAX REVENUE LOC) 5.25 08/01/2016 1,102,940
1,000,000 WESTMINSTER REDEVELOPMENT AGENCY CA ROSE GARDENS APARTMENT PROJECT SERIES A
(HOUSING REVENUE LOC) 6.50 08/01/2010 1,015,550
2,395,000 WINDSOR JOINT POWERS FINANCING AUTHORITY CA WINDSOR CIVIC CENTER SERIES A
(LEASE REVENUE LOC) 5.38 10/01/2018 2,640,152
1,600,000 YORBA LINDA REDEVELOPMENT AGENCY CA SERIES A CAPITAL APPRECIATION YORBA LINDA
REDEVELOPMENT (SPECIAL TAX REVENUE LOC) 4.91^ 09/01/2019 748,304
545,402,534
------------
29
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
PUERTO RICO - 0.78%
$3,700,000 CHILDRENS TRUST FUND PUERTO RICO TOBACCO SETTLEMENT (OTHER REVENUE LOC) 6.00% 07/01/2010 $ 4,399,189
------------
TOTAL MUNICIPAL BONDS (COST $515,368,207) 549,801,723
------------
SHORT-TERM INVESTMENTS - 0.81%
SHARES
MUTUAL FUND - 0.81%
4,614,000 WELLS FARGO CALIFORNIA TAX FREE MONEY MARKET TRUST~ 4,614,000
TOTAL SHORT-TERM INVESTMENTS (COST $4,614,000) 4,614,000
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $533,496,643)* 100.11% $569,608,565
OTHER ASSETS AND LIABILITIES, NET (0.11) (602,005)
------ ------------
TOTAL NET ASSETS 100.00% $569,006,560
------ ------------
<FN>
+/- VARIABLE RATE SECURITIES.
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INVESTMENT COMPANIES - 2.45%
8,248 BLACKROCK STRATEGIC MUNICIPAL TRUST $ 121,163
50,096 DREYFUS MUNICIPAL INCOME FUND 495,450
27,791 DREYFUS STRATEGIC MUNICIPAL BOND FUND 244,839
17,748 MUNICIPAL ADVANTAGE FUND INCORPORATED 250,247
15,692 NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND 242,912
25,652 NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND 414,793
18,339 NUVEEN PREMIUM INCOME MUNICIPAL FUND 266,649
15,188 SALOMON BROTHERS MUNICIPAL PARTNERS FUND INCORPORATED 212,632
12,543 SELIGMAN SELECT MUNICIPAL FUND 138,851
7,778 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST 127,559
8,528 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II 128,346
12,032 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS 189,504
TOTAL INVESTMENT COMPANIES (COST $2,277,546) 2,832,945
------------
PRINCIPAL INTEREST RATE MATURITY DATE
MUNICIPAL BONDS - 92.12%
COLORADO - 91.09%
$1,250,000 ADAMS & WELD COUNTIES CO SCHOOL DISTRICT #27J BRIGHTON GO
(PROPERTY TAX REVENUE LOC) 5.50% 12/01/2019 1,396,987
1,380,000 ADAMS & WELD COUNTIES SCHOOL DISTRICT NO. 27J BRIGHTON, CO
(PROPERTY TAX REVENUE LOC) 5.00 12/01/2015 1,520,691
1,250,000 ARAPAHOE COUNTY CO WATER & WASTEWATER AUTHORITY REVENUE (WATER REVENUE LOC) 6.25 12/01/2020 1,415,112
1,500,000 AURORA HOUSING AUTHORITY CO RIVER FALLS PROJECT SERIES A (HOUSING REVENUE LOC) 5.60 07/01/2019 1,504,545
780,000 BLACK HAWK CO BUSINESS IMPROVEMENT DISTRICT SPECIAL IMPROVEMENTS DISTRICT #98-1
(SPECIAL TAX REVENUE LOC) 7.00 12/01/2011 786,209
745,000 BLACK HAWK CO BUSINESS IMPROVEMENT REVENUE DISTRICT #97-1 PROJECT
(SPECIAL TAX REVENUE LOC) 6.00 12/01/2009 749,500
1,000,000 BOULDER CO WATER & SEWER REVENUE (WATER REVENUE LOC) 5.60 12/01/2017 1,133,040
1,235,000 BOULDER COUNTY CO IDR UNIVERSITY CORPORATION FOR ATMOSPHERIC PROJECT
(OTHER REVENUE LOC) 5.50 09/01/2020 1,370,949
95,000 BOULDER COUNTY CO MFHR THISTLE COMMUNITY HOUSING PROJECT (OTHER REVENUE LOC) 6.00 06/01/2011 90,623
1,000,000 BOULDER COUNTY CO MFHR THISTLE COMMUNITY HOUSING PROJECT (OTHER REVENUE LOC) 6.38 06/01/2029 901,110
1,000,000 BOULDER COUNTY COLORADO OPEN SPACE CAP IMP TR FD (SALES TAX REVENUE LOC) 5.00 07/15/2017 1,075,460
1,000,000 BROOMFIELD COLORADO (WATER REVENUE LOC) 5.00 12/01/2019 1,064,310
500,000 CENTENNIAL 25 METROPOLITAN DISTRICT CO ARAPAHOE COUNTY GO
(PROPERTY TAX REVENUE LOC) 6.38 12/01/2016 513,735
1,490,000 COLORADO DEPARTMENT OF TRANSPORTATION REVENUE-REFUNDING TRANSPORTATION SERIES B
(TRANSPORTATION REVENUE LOC) 5.50 06/15/2015 1,738,562
1,250,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY (OTHER REVENUE LOC) 5.25 06/01/2021 1,293,375
1,000,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY ACADEMY CHARTER SCHOOL PROJECT
(PRIVATE SCHOOL REVENUE LOC) 6.25 12/15/2012 1,086,490
1,000,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY ACADEMY CHARTER SCHOOL PROJECT
(PRIVATE SCHOOL REVENUE LOC) 7.13 12/15/2030 1,082,830
3,750,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY ALEXANDER DAWSON SCHOOL CO
PROJECT (PRIVATE SCHOOL REVENUE LOC) 5.30 02/15/2029 3,874,163
500,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL CORE KNOWLEDGE
PROJECT (LEASE REVENUE LOC) 7.00 11/01/2029 536,170
600,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL RENAISSANCE
SCHOOL
PROJECT (LEASE REVENUE LOC) 6.75 06/01/2029 576,756
31
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLORADO (continued)
$ 1,000,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL UNIVERSITY LAB
SCHOOL PROJECT (PRIVATE SCHOOL REVENUE LOC) 5.75% 06/01/2016 $ 1,015,610
1,500,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY PINNACLE CHARTER SCHOOL PROJECT
(LEASE REVENUE LOC) 6.00 12/01/2021 1,786,545
500,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY SERIES A JOHNSON & WALES
UNIVERSITY PROJECT (COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 04/01/2023 517,565
2,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH INITIATIVES
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 09/01/2021 2,071,300
1,040,000 COLORADO HEALTH FACILITIES AUTHORITY EXEMPLA INCORPORATED SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 01/01/2023 1,070,482
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY EXEMPLA INCORPORATED SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.63 01/01/2033 1,022,310
415,000 COLORADO HEALTH FACILITIES AUTHORITY NATIONAL JEWISH MEDICAL & RESEARCH
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 01/01/2008 436,148
2,000,000 COLORADO HEALTH FACILITIES AUTHORITY PARKVIEW MEDICAL CENTER PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.50 09/01/2020 2,152,020
1,250,000 COLORADO HEALTH FACILITIES AUTHORITY SISTERS OF CHARITY SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 05/15/2011 1,512,613
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY STEAMBOAT SPRINGS HEALTH PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.75 09/15/2022 978,940
550,000 COLORADO HEALTH FACILITIES AUTHORITY STEAMBOAT SPRINGS HEALTH PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.70 09/15/2023 544,808
1,065,000 COLORADO HOUSING & FINANCE AUTHORITY AMT SINGLE FAMILY PROJ-SR-B-2
(HOUSING REVENUE LOC) 6.10 08/01/2023 1,086,534
1,090,000 COLORADO HOUSING & FINANCE AUTHORITY AMT-SINGLE FAMILY PROJECT SEIR-A-2
(HOUSING REVENUE LOC) 6.50 08/01/2031 1,149,209
450,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES A-3 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 6.50 05/01/2016 465,039
4,715,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES B-3 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC)+/- 6.70 08/01/2017 5,001,389
995,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES B-3 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 6.55 08/01/2033 1,053,625
45,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES B2 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 7.50 12/01/2016 45,546
345,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES C-2 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 7.45 06/01/2017 346,363
1,010,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES C-3 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 6.38 08/01/2033 1,067,156
45,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES D-1 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 8.00 12/01/2024 45,186
350,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES D-2 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 7.10 06/01/2014 356,871
40,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES D-II SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 8.13 06/01/2025 40,520
4,010,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES E-3 (HOUSING REVENUE LOC)+/- 11.38 04/01/2011 4,376,594
1,400,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES E-3 (HOUSING REVENUE LOC) 6.60 08/01/2017 1,432,662
1,000,000 COLORADO SPRINGS CO SERIES A (UTILITIES REVENUE LOC) 5.00 11/15/2021 1,048,320
1,000,000 COLORADO STATE BOARD OF GOVERNORS SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.25 03/01/2015 1,121,170
2,255,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES A
(OTHER REVENUE LOC) 5.25 09/01/2015 2,515,565
32
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLORADO (continued)
$1,000,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES A
(OTHER REVENUE LOC) 5.63% 09/01/2015 $ 1,138,870
1,000,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES A
(OTHER REVENUE LOC) 5.13 09/01/2018 1,090,140
1,810,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES A
(WATER REVENUE LOC) 4.88 09/01/2017 1,907,722
1,000,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES A
(WATER REVENUE LOC) 5.00 09/01/2019 1,054,560
1,000,000 COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY SERIES B
(OTHER REVENUE LOC) 5.00 09/01/2019 1,061,510
1,000,000 DENVER CITY & COUNTY BOARD OF WATER COMMISSION (LEASE REVENUE LOC) 5.00 11/15/2016 1,076,810
1,000,000 DENVER CITY & COUNTY CO 2000 WEST 3RD AVENUE PROPERTY SERIES A
(LEASE REVENUE LOC) 5.13 12/01/2021 1,056,410
1,000,000 DENVER CITY & COUNTY CO COLORADO CONVENTION CENTER PROJECT SERIES A
(SALES TAX REVENUE LOC) 5.50 09/01/2016 1,123,060
1,000,000 DENVER CITY & COUNTY CO HELEN G BONFILS FOUNDATION PROJECT SERIES B
(RECREATIONAL FACILITIES REVENUE LOC) 5.13 12/01/2017 1,079,150
2,000,000 DENVER CITY & COUNTY CO SERIES B (AIRPORT REVENUE LOC) 5.50 11/15/2015 2,246,720
1,000,000 DENVER CITY & COUNTY CO SERIES C (AIRPORT REVENUE LOC) 5.60 11/15/2010 1,098,340
2,000,000 DENVER CO CITY & COUNTY COLORADO CONVENTION CENTER PROJECT SERIES A FSA INSURED
(SALES TAX REVENUE LOC) 5.50 09/01/2017 2,246,120
1,000,000 DENVER CO CITY & COUNTY WATER COMMISSION WATER REVENUE SERIES B FSA INSURED
(WATER REVENUE LOC) 5.00 12/01/2016 1,090,080
900,000 DENVER CO GATEWAY CENTER METROPOLITAN DISTRICT GO (PROPERTY TAX REVENUE LOC) 6.40 12/01/2018 911,673
1,000,000 DOUGLAS COUNTY CO AUTUMN CHASE PROJECT (HOUSING REVENUE LOC)+/- 1.15 12/01/2029 1,000,000
1,475,000 DOUGLAS COUNTY CO PARKER HILLTOP PROJECT (HOUSING REVENUE LOC) 5.35 08/01/2018 1,545,520
2,500,000 EL PASO COUNTY CO GO SCHOOL DISTRICT #11 COLORADO SPRINGS
(PROPERTY TAX REVENUE LOC) 7.10 12/01/2017 3,313,000
1,160,000 EL PASO COUNTY CO GO SCHOOL DISTRICT #49 FALCON PROJECT
(PROPERTY TAX REVENUE LOC) 5.63 12/01/2016 1,325,671
1,500,000 ENGLEWOOD CO MFHR MARKS APARTMENTS PROJECT (HOUSING REVENUE LOC) 6.65 12/01/2026 1,518,645
1,200,000 GARFIELD COUNTY CO BUILDING CORPORATION LEASE REVENUE (LEASE REVENUE LOC) 5.75 12/01/2019 1,369,056
1,395,000 GARFIELD COUNTY COLORADO SCHOOL DISTRICT REVENUE-2 GARFIELD
(PROPERTY TAX REVENUE LOC) 5.25 12/01/2021 1,501,885
1,000,000 GOLDEN COLORADO SERIES B (SALES TAX REVENUE LOC) 5.25 12/01/2016 1,105,930
1,165,000 GREEN VALLEY CO METROPOLITAN DISTRICT GO (PROPERTY TAX REVENUE LOC) 5.75 12/01/2019 1,331,910
1,000,000 HIGHLANDS RANCH CO METROPOLITAN DISTRICT #2 UTGO (PROPERTY TAX REVENUE LOC) 6.50 06/15/2011 1,220,670
3,000,000 JEFFERSON COUNTY CO SCHOOL DISTRICT #R001 GO (PROPERTY TAX REVENUE LOC) 6.50 12/15/2011 3,698,490
500,000 LA JUNTA CO HOSPITAL REVENUE ARK VALLEY REGIONAL MEDICAL CENTER PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 04/01/2019 509,940
500,000 LA JUNTA CO HOSPITAL REVENUE ARK VALLEY REGIONAL MEDICAL CENTER PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.10 04/01/2024 502,140
1,090,000 LARIMER COUNTY CO FAIRGROUNDS & EVENTS CENTER PROJECT (SALES TAX REVENUE LOC) 5.25 12/15/2015 1,216,898
1,200,000 LARIMER COUNTY CO SINGLE FAMILY MORTGAGE CAPITAL ACCUMULATOR SERIES A 4.29^ 08/01/2015 733,920
2,000,000 METEX METROPOLITAN DISTRICT CO GO SERIES A (PROPERTY TAX REVENUE LOC) 5.80 12/01/2016 2,260,160
865,000 NORTHERN METROPOLITAN DISTRICT ADAMS COUNTY CO (OTHER REVENUE LOC) 6.50 12/01/2016 875,077
280,000 PUEBLO CO COP PUBLIC PARKING LEASE PURCHASE & SUBLEASE REVENUE
(LEASE REVENUE LOC) 6.90 07/01/2015 286,754
600,000 SUMMIT COUNTY CO KEYSTONE RESORTS MANAGEMENT PROJECT (OTHER REVENUE LOC) 7.38 09/01/2010 735,102
33
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLORADO (continued)
$1,000,000 SUMMIT COUNTY SCHOOL DISTRICT NO. RE001 SUMMIT CO (PROPERTY TAX REVENUE LOC) 5.75% 12/01/2013 $ 1,154,600
1,730,000 UNIVERSITY OF NORTHERN COLORADO REVENUE AUXILIARY FACILITIES SYSTEM
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.50 06/01/2019 1,928,967
105,286,207
------------
PUERTO RICO - 1.03%
1,000,000 CHILDRENS TRUST FUND PUERTO RICO TOBACCO SETTLEMENT (OTHER REVENUE LOC) 6.00 07/01/2026 1,188,970
------------
TOTAL MUNICIPAL BONDS (COST $99,777,015) 106,475,177
------------
SHORT-TERM INVESTMENTS - 4.70%
SHARES
MUTUAL FUND - 4.70%
144,000 FEDERATED TAX FREE OBLIGATION FUND 144,000
5,284,000 WELLS FARGO NATIONAL TAX FREE MONEY MARKET TRUST~ 5,284,000
TOTAL SHORT-TERM INVESTMENTS (COST $5,428,000) 5,428,000
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $107,482,561)* 99.27% $114,736,122
OTHER ASSETS AND LIABILITIES, NET 0.73 845,669
------ ------------
TOTAL NET ASSETS 100.00% $115,581,791
------ ------------
<FN>
+/- VARIABLE RATE SECURITIES.
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MUNICIPAL BONDS - 95.74%
MINNESOTA - 94.69%
$2,845,000 ANOKA-HENNEPIN MN INDEPENDENT SCHOOL DISTRICT #11 SCHOOL DISTRICT CENTER FOR
ENHANCEMENT PROGRAM SERIES A FSA SCHOOL DISTRICT CREDIT PROGRAM INSURED (PROPERTY
TAX REVENUE LOC) 5.00% 02/01/2018 $ 3,022,670
650,000 AUSTIN MN HOUSING & REDEVELOPMENT AUTHORITY COURTYARD RESIDENCE PROJECT SERIES A
(HOUSING REVENUE LOC) 7.15 01/01/2020 654,712
1,500,000 AUSTIN MN HOUSING & REDEVELOPMENT AUTHORITY SERIES A COURTYARD RESIDENCE PROJECT
(HOUSING REVENUE LOC) 7.25 01/01/2032 1,510,845
1,055,000 BEMIDJI MN FIRST MORTGAGE NORTH COUNTRY HEALTH (HEALTHCARE FACILITIES REVENUE LOC) 5.63 09/01/2021 1,084,709
160,000 BLAINE MN BALL CORPORATION PROJECT ESCROWED TO MATURITY
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 7.13 12/01/2004 168,384
3,000,000 BLOOMINGTON MN INDEPENDENT SCHOOL DISTRICT #271 BUILDING SERIES B SCHOOL DISTRICT
CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2016 3,246,240
3,000,000 BLOOMINGTON MN INDEPENDENT SCHOOL DISTRICT #271 BUILDING SERIES B SCHOOL DISTRICT
CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2019 3,196,800
7,000,000 BLOOMINGTON MN INDEPENDENT SCHOOL DISTRICT #271 SERIES A FSA SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.13 02/01/2024 7,314,230
375,000 BLOOMINGTON MN PORT AUTHORITY MALL OF AMERICA PROJECT SERIES A FSA INSURED
PREREFUNDED 2/01/2004 @ 100 (TAX INCREMENTAL REVENUE LOC) 5.35 02/01/2004 376,324
1,000,000 BRAINERD MN INDEPENDENT SCHOOL DISTRICT #181 SERIES A FGIC SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2020 1,056,380
2,195,000 BRECKENRIDGE MN CATHOLIC HEALTH CORPORATION MBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 11/15/2005 2,245,200
4,805,000 BURNSVILLE MN FAIRVIEW COMMUNITY HOSPITALS ZERO COUPON ESCROWED TO MATURITY
(HEALTHCARE FACILITIES REVENUE LOC) 5.57^ 05/01/2012 3,040,123
155,000 CHASKA MN ECONOMIC DEVELOPMENT AUTHORITY INDEPENDENT SCHOOL DISTRICT #112 SERIES A
(LEASE REVENUE LOC) 5.25 12/01/2012 163,792
750,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT #112 SERIES A FSA SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.70 02/01/2017 843,630
1,250,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT #112 SERIES B SCHOOL DISTRICT CREDIT PROGRAM
INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX REVENUE LOC) 5.75 02/01/2007 1,351,987
1,000,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT #112 SERIES B SCHOOL DISTRICT CREDIT PROGRAM
INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX REVENUE LOC) 5.75 02/01/2009 1,081,590
500,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT #112 SERIES B SCHOOL DISTRICT CREDIT PROGRAM
INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX REVENUE LOC) 6.00 02/01/2013 543,345
100,000 CITY OF BLOOMINGTON MN TAX INCREMENTAL BONDS (PROPERTY TAX REVENUE LOC) 9.70 02/01/2004 100,703
210,000 CITY OF BLOOMINGTON MN TAX INCREMENTAL BONDS PREREFUNDED 2/01/2005 @ 100
(PROPERTY TAX REVENUE LOC) 9.75 02/01/2005 229,257
290,000 CITY OF BLOOMINGTON MN TAX INCREMENTAL BONDS PREREFUNDED 2/01/2005 @ 100
(PROPERTY TAX REVENUE LOC) 9.75 02/01/2005 316,593
945,000 CITY OF CHASKA MN SERIES A (ELECTRIC REVENUE LOC) 5.63 10/01/2014 1,032,658
995,000 CITY OF CHASKA MN SERIES A (ELECTRIC REVENUE LOC) 5.70 10/01/2015 1,085,525
220,000 CITY OF MINNEAPOLIS MN ABBOTT NORTHWESTERN HOSPITAL INCORPORATED ESCROWED TO
MATURITY (HEALTHCARE FACILITIES REVENUE LOC) 6.50 12/01/2006 238,687
1,000,000 CITY OF MINNEAPOLIS MN ALLINA HEALTH SYSTEMS SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 11/15/2023 1,076,080
500,000 CITY OF MINNEAPOLIS MN EBENEZER SOCIETY PROJECT SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 7.20 07/01/2023 483,765
745,000 CITY OF MINNEAPOLIS MN FAIRVIEW HEALTH SERVICES SERIES B MBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 05/15/2021 777,966
35
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MINNESOTA (continued)
$ 575,000 CITY OF MINNEAPOLIS MN WALKER METHODIST SENIOR SERVICES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.50% 11/15/2012 $ 536,130
1,060,000 CITY OF MINNEAPOLIS MN WALKER METHODIST SENIOR SERVICES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.88 11/15/2018 919,539
1,000,000 CITY OF NEW HOPE MN MASONIC HOME NORTH RIDGE (HEALTHCARE FACILITIES REVENUE LOC) 5.90 03/01/2019 1,013,420
500,000 CITY OF PINE RIVER MN EVANGELICAL LUTHERAN GOOD SAMARITAN PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.40 08/01/2015 514,755
180,000 CITY OF ST CLOUD MN (LEASE REVENUE LOC) 5.20 12/01/2005 190,645
400,000 CITY OF ST CLOUD MN (LEASE REVENUE LOC) 5.90 12/01/2017 410,616
1,335,000 CITY OF ST CLOUD MN ST CLOUD HOSPITAL OBLIGATION GROUP SERIES A FSA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.75 05/01/2010 1,537,293
1,750,000 CITY OF ST CLOUD MN ST CLOUD HOSPITAL OBLIGATION GROUP SERIES A FSA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.38 05/01/2011 1,964,812
4,875,000 CITY OF ST CLOUD MN ST CLOUD HOSPITAL OBLIGATION GROUP SERIES A FSA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.75 05/01/2026 5,370,154
185,000 CITY OF ST CLOUND MN (LEASE REVENUE LOC) 5.30 12/01/2006 195,023
1,890,000 COUNTY OF RAMSEY MN CAPITAL IMPROVEMENT PLAN SERIES A (PROPERTY TAX REVENUE LOC) 5.00 02/01/2017 2,046,511
1,000,000 COUNTY OF RAMSEY MN CAPITAL IMPROVEMENT PLAN SERIES A (PROPERTY TAX REVENUE LOC) 5.00 02/01/2018 1,075,610
1,000,000 CUYUNA MN RANGE HOSPITAL DISTRICT SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 5.75 06/01/2014 977,010
1,000,000 CUYUNA MN RANGE HOSPITAL DISTRICT SERIES A (HEALTHCARE FACILITIES REVENUE LOC) 6.00 06/01/2019 965,840
1,395,000 DAKOTA COUNTY MN HOUSING & REDEVELPOMENT AUTHORITY MULTIFAMILY HOUSING
COLLATERALIZED BY GNMA (HOUSING REVENUE LOC) 7.38 12/01/2029 1,446,113
635,000 DULUTH MN ECONOMIC DEVELOPMENT AUTHORITY BENDICTINE HEALTH SYSTEM ST MARY
SERIES A MBIA INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.55 02/15/2004 638,423
690,000 DULUTH MN ECONOMIC DEVELOPMENT AUTHORITY BENDICTINE HEALTH SYSTEM ST MARY
SERIES A MBIA INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.65 02/15/2005 706,291
465,000 DULUTH MN ECONOMIC DEVELOPMENT AUTHORITY BENDICTINE HEALTH SYSTEM ST MARY
SERIES A MBIA INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.75 02/15/2006 475,848
65,000 DULUTH MN INDEPENDENT SCHOOL DISTRICT #709 CERTIFICATES OF PARTNERS SERIES A SCHOOL
DISTRICT CREDIT PROGRAM INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX
REVENUE LOC) 5.10 02/01/2010 65,119
155,000 EAST GRAND FORKS MN (ELECTRIC REVENUE LOC) 5.90 02/01/2015 159,693
255,000 EAST GRAND FORKS MN (ELECTRIC REVENUE LOC) 6.00 02/01/2018 260,975
300,000 EAST GRAND FORKS MN (ELECTRIC REVENUE LOC) 6.10 02/01/2021 305,247
1,220,000 EDEN PRAIRIE MN ROLLING HILLS PROJECT SERIES A COLLATERALIZED BY GNMA
(HEALTHCARE FACILITIES REVENUE LOC) 6.15 08/20/2031 1,346,246
1,000,000 ELK RIVER MN INDEPENDENT SCHOOL DISTRICT #728 SERIES A MBIA SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2018 1,062,450
580,000 FERGUS FALLS MN HOUSING & REDEVELOPMENT AUTHORITY LAKE REGION HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 5.10 09/01/2014 601,762
605,000 FERGUS FALLS MN HOUSING & REDEVELOPMENT AUTHORITY LAKE REGION HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 5.20 09/01/2015 627,597
560,000 FERGUS FALLS MN HOUSING & REDEVELOPMENT AUTHORITY LAKE REGION HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 5.30 09/01/2016 580,429
670,000 FERGUS FALLS MN HOUSING & REDEVELOPMENT AUTHORITY LAKE REGION HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 5.40 09/01/2017 692,901
1,390,000 GLENCOE MN PREREFUNDED 8 1 04 @ 102 (HEALTHCARE FACILITIES REVENUE LOC) 6.63 04/01/2011 1,460,584
700,000 GLENCOE MN REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE LOC) 7.20 04/01/2016 742,469
600,000 GLENCOE MN REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE LOC) 7.40 04/01/2021 640,674
585,000 GLENCOE MN REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE LOC) 7.50 04/01/2031 621,118
36
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MINNESOTA (continued)
$1,075,000 HIBBING MN THE DULUTH CLINIC LIMITED FSA INSURED PREREFUNDED 11 1 13 @ 100
(HEALTHCARE FACILITIES REVENUE LOC) 5.50% 11/01/2013 $ 1,255,740
2,785,000 ITASCA COUNTY MN INDEPENDENT SCHOOL DISTRICT #318 FSA SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2017 2,995,574
1,735,000 LAKE SUPERIOR MN INDEPENDENT SCHOOL DISTRICT #381 BUILDING SERIES A FSA SCHOOL
DISTRICT CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 04/01/2019 1,858,237
1,080,000 LINO LAKES MN ECONOMIC DEVELOPMENT AUTHORITY SERIES A (LEASE REVENUE LOC) 5.25 02/01/2016 1,097,831
500,000 LINO LAKES MN ECONOMIC DEVELOPMENT AUTHORITY SERIES A (LEASE REVENUE LOC) 5.35 02/01/2019 506,435
315,000 MANKATO MN UNREFUNDED BALANCE 1ST MORTGAGE SERIES C
(HEALTHCARE FACILITIES REVENUE LOC) 6.10 08/01/2005 319,259
390,000 MANKATO MN UNREFUNDED BALANCE 1ST MORTGAGE SERIES C
(HEALTHCARE FACILITIES REVENUE LOC) 6.15 08/01/2006 395,167
850,000 MARSHALL MN WEINER MEMORIAL MEDICAL CENTER PROJECT SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.85 11/01/2023 872,814
500,000 MINNEAPOLIS & ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY HEALTH CARE SYSTEM
HEALTHPARTNERS OBLIGATION GROUP PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.63 12/01/2022 500,915
500,000 MINNEAPOLIS & ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY HEALTH CARE SYSTEM
HEALTHPARTNERS OBLIGATION GROUP PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.88 12/01/2029 504,645
500,000 MINNEAPOLIS & ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY HEALTHCARE SYSTEM
HEALTHPARTNERS OBLIGATION GROUP PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.25 12/01/2016 504,210
4,860,000 MINNEAPOLIS & ST PAUL MN METROPOLITAN AIRPORTS COMMISSION SUBORDINATED SERIES C
FGIC INSURED (AIRPORT REVENUE LOC) 5.25 01/01/2021 5,194,125
1,960,000 MINNEAPOLIS MN SPECIAL SCHOOL DISTRICT #1 SERIES A MBIA INSURED PREREFUNDED 2 1
07 @ 100 (LEASE REVENUE LOC) 5.38 02/01/2007 2,164,173
1,130,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD EVANGELICAL LUTHERAN PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 02/01/2022 1,182,737
5,350,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEM FAIRVIEW
HOSPITAL SERIES A MBIA INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.50 11/15/2017 5,938,232
2,025,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEMS SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.88 11/15/2010 2,290,538
2,130,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEMS SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 6.38 11/15/2022 2,333,095
1,000,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY CARLETON COLLEGE SERIES 4-N GENERAL
OBLIGATION OF INSTITUTION INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 11/01/2018 1,060,310
2,000,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY COLLEGE AT ST BENEDICT SERIES 4-T
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.35 03/01/2020 2,029,940
700,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY MACALESTER COLLEGE SERIES 4-C GENERAL
OBLIGATION OF INSTITUTION INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.55 03/01/2016 729,470
600,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY NORTHWESTERN COLLEGE SERIES 4-Z
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.20 10/01/2013 610,326
365,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY SERIES 3-W GENERAL OBLIGATION OF
UNIVERSITY INSURED PREREFUNDED 3 1 04 @ 100 (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 03/01/2004 367,946
1,000,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST JOHNS UNIVERSITY SERIES 4-L
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.35 10/01/2017 1,039,590
280,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST MARYS COLLEGE SERIES 3-Q GENERAL
OBLIGATION OF INSTITUTION INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.80 10/01/2004 283,730
295,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST MARYS COLLEGE SERIES 3-Q GENERAL
OBLIGATION OF INSTITUTION INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.90 10/01/2005 298,856
340,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST MARYS COLLEGE SERIES 3-Q GENERAL
OBLIGATION OF INSTITUTION INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 10/01/2008 344,172
37
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MINNESOTA (continued)
$ 895,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST MARYS UNIVERSITY SERIES 5-E
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.75% 03/01/2019 $ 979,390
135,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY UNREFUNDED BALANCE SERIES 3-W GENERAL
OBLIGATION OF UNIVERSITY INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 03/01/2007 135,722
1,890,000 MINNESOTA HOUSING FINANCE AGENCY RENTAL HOUSING SERIES D MBIA GENERAL OBLIGATION
OF AGENCY INSURED (HOUSING REVENUE LOC) 5.80 08/01/2011 1,958,267
805,000 MINNESOTA HOUSING FINANCE AGENCY RENTAL HOUSING SERIES D MBIA GENERAL OBLIGATION
OF AGENCY INSURED (HOUSING REVENUE LOC) 5.90 08/01/2015 828,530
205,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES A GENERAL OBLIGATION
OF AGENCY INSURED (HOUSING REVENUE LOC) 5.75 07/01/2018 217,364
1,200,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES A GENERAL OBLIGATION
OF AGENCY INSURED (HOUSING REVENUE LOC) 5.85 07/01/2020 1,269,180
1,385,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES A MBIA INSURED
(HOUSING REVENUE LOC) 5.35 07/01/2017 1,441,688
2,310,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES D AMBAC GENERAL
OBLIGATION OF AGENCY INSURED (HOUSING REVENUE LOC) 5.80 07/01/2021 2,402,954
105,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES D-2 REMARKET
GENERAL OBLIGATION OF AGENCY INSURED (HOUSING REVENUE LOC) 5.60 01/01/2006 107,368
790,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES I REMARKET
GENERAL OBLIGATION OF AGENCY INSURED (HOUSING REVENUE LOC) 6.25 01/01/2015 799,022
1,630,000 MINNESOTA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES M REMARKET
GENERAL OBLIGATION OF AGENCY INSURED (HOUSING REVENUE LOC) 5.88 01/01/2017 1,728,811
2,000,000 MINNESOTA PUBLIC FACILITES AUTHORITY SERIES B (WATER REVENUE LOC) 5.13 03/01/2015 2,195,260
1,000,000 MINNESOTA PUBLIC FACILITIES AUTHORITY (INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.00 03/01/2016 1,074,550
1,110,000 MINNESOTA PUBLIC FACILITIES AUTHORITY CLOSED LOAN POOL (OTHER REVENUE LOC) 5.00 03/01/2008 1,230,590
4,490,000 MINNESOTA PUBLIC FACILITIES AUTHORITY SERIES A (OTHER REVENUE LOC) 5.00 03/01/2018 4,805,827
1,000,000 MINNESOTA STATE IRON RANGE RESOURCES & REHABILITATION GIANTS RIDGE RECREATIONAL AREA
(RECREATIONAL FACILITIES REVENUE LOC) 7.25 11/01/2016 1,053,800
1,225,000 MINNESOTA STATE IRON RANGE RESOURCES & REHABILITATION GIANTS RIDGE RECREATIONAL AREA
(RECREATIONAL FACILITIES REVENUE LOC) 7.50 11/01/2025 1,272,848
1,000,000 MINNETONKA MN INDEPENDENT SCHOOL DISTRICT #276 SERIES B SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.65 02/01/2010 1,117,530
1,650,000 MINNETONKA MN INDEPENDENT SCHOOL DISTRICT #276 SERIES B SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.75 02/01/2022 1,827,259
505,000 MONTICELLO BIG LAKE MN COMMUNITY HOSPITAL DISTRICT HEALTHCARE FACILITIES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.20 12/01/2009 530,710
825,000 MONTICELLO BIG LAKE MN COMMUNITY HOSPITAL DISTRICT HEALTHCARE FACILITIES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.45 12/01/2012 841,318
500,000 MONTICELLO BIG LAKE MN COMMUNITY HOSPITAL DISTRICT HEALTHCARE FACILITIES SERIES A
(HOUSING REVENUE LOC) 5.30 12/01/2010 518,245
700,000 MONTICELLO BIG LAKE MN COMMUNITY HOSPITAL DISTRICT HEALTHCARE FACILITIES SERIES A
RADIAN INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.75 12/01/2019 768,460
725,000 MONTICELLO BIG LAKE MN COMMUNITY HOSPITAL DISTRICT HEALTHCARE FACILTIES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.40 12/01/2011 745,713
1,405,000 MOORHEAD MN FHA INSURED ESCROWED TO MATURITY (HOUSING REVENUE LOC) 7.10 08/01/2011 1,662,677
1,430,000 MOUNDS VIEW MN INDEPENDENT SCHOOL DISTRICT #621 SERIES A SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.38 02/01/2017 1,584,054
2,040,000 MOUNDS VIEW MN INDEPENDENT SCHOOL DISTRICT #621 SERIES A SCHOOL DISTRICT CREDIT
PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.38 02/01/2019 2,243,266
560,000 MOUNTAIN IRON MN HOUSING & REDEVELOPMENT AUTHORITY NORTHEAST SERVICE COOPERATIVE
PROJECT SERIES A (LEASE REVENUE LOC) 6.25 10/01/2019 580,686
38
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MINNESOTA (continued)
$ 100,000 NEW BRIGHTON MN UNICARE HOMES INCORPORATED PROJECT BANK OF AMERICA INSURED
(HOUSING REVENUE LOC)+/- 1.17% 12/01/2014 $ 100,000
1,000,000 NORTHERN MUNICIPAL POWER AGENCY MN FSA INSURED (ELECTRIC REVENUE LOC) 5.30 01/01/2021 1,081,440
2,000,000 NORTHERN MUNICIPAL POWER AGENCY MN FSA INSURED (ELECTRIC REVENUE LOC) 5.40 01/01/2015 2,241,540
360,000 OSSEO MN ECONOMIC DEVELOPMENT AUTHORITY SERIES B (LEASE REVENUE LOC) 5.90 02/01/2018 378,508
455,000 OSSEO MN ECONOMIC DEVELOPMENT AUTHORITY SERIES B (LEASE REVENUE LOC) 6.00 02/01/2022 471,207
1,000,000 OTTER TAIL COUNTY MN HOUSING & REDEVELOPMENT AUTHORITY SERIES A
(LEASE REVENUE LOC) 5.00 02/01/2019 1,007,220
115,000 RED WING MN RIVER REGION OBLIGATED GROUP SERIES B PREREFUNDED 9 1 05 @ 100
(HEALTHCARE FACILITIES REVENUE LOC) 6.35 09/01/2005 124,221
300,000 ROBBINSDALE MN ECONOMIC DEVELOPMENT AUTHORITY SENIOR HOUSING PROJECT SERIES A
(HOUSING REVENUE LOC) 6.63 01/01/2019 283,809
2,805,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT #281 FSA SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2019 2,983,061
2,000,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT #281 FSA SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2020 2,111,440
1,000,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT #281 SCHOOL BUILDING FSA SCHOOL DISTRICT
CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2018 1,068,450
1,195,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT #281 SCHOOL DISTRICT CREDIT PROGRAM
INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX REVENUE LOC) 5.60 02/01/2018 1,357,329
2,900,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT #281 SCHOOL DISTRICT CREDIT PROGRAM
INSURED SUBJECT TO CROSSOVER REFUNDING (PROPERTY TAX REVENUE LOC) 5.63 02/01/2020 3,297,358
200,000 ROBBINSDALE MN UNICARE HOMES INCORPORATED PROJECT BANK OF AMERICA INSURED
(HEALTHCARE FACILITIES REVENUE LOC)+/- 1.17 10/01/2014 200,000
2,285,000 ROCHESTER MN HEALTHCARE FACILITIES REVENUE MAYO FOUNDATION MAYO MEDICAL CENTER-
SERIES I (HEALTHCARE FACILITIES REVENUE LOC) 5.80 11/15/2007 2,589,134
1,650,000 ROCHESTER MN MAYO FOUNDATION MAYO MEDICAL CENTER SERIES I
(HEALTHCARE FACILITIES REVENUE LOC) 5.90 11/15/2009 1,918,059
1,875,000 ROCHESTER MN MAYO FOUNDATION MAYO MEDICAL CENTER SERIES I
(HEALTHCARE FACILITIES REVENUE LOC) 5.90 11/15/2010 2,188,781
3,000,000 ROSEMOUNT MN INDEPENDENT SCHOOL DISTRICT #196 CAPITAL APPRECIATION SERIES A SCHOOL
DISTRICT CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 3.28^ 04/01/2010 2,448,000
2,000,000 ROSEMOUNT MN INDEPENDENT SCHOOL DISTRICT #196 CAPITAL APPRECIATION SERIES A SCHOOL
DISTRICT CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 2.99^ 04/01/2009 1,711,440
2,000,000 ROSEMOUNT MN INDEPENDENT SCHOOL DISTRICT #196 CAPITAL APPRECIATION SERIES A SCHOOL
DISTRICT CREDIT PROGRAM INSURED (PROPERTY TAX REVENUE LOC) 3.56^ 04/01/2011 1,548,320
2,100,000 SEAWAY PORT AUTHORITY OF DULUTH MN CARGILL INCORPORATED PROJECT SERIES B 6.80 05/01/2012 2,157,960
695,000 SOUTH WASHINGTON COUNTY MN INDEPENDENT SCHOOL DISTRICT NO.833 SERIES A SCHOOL
(PROPERTY TAX REVENUE LOC) 5.50 02/01/2017 776,683
5,000,000 SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY CAPITAL APPRECIATION SERIES A
(ELECTRIC REVENUE LOC) 4.64^ 01/01/2020 2,400,100
1,000,000 SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE LOC) 5.25 01/01/2017 1,135,550
975,000 SOUTHRN MINNESOTA MUNICIPAL POWER AGECNY PREREFUNDED SERIES A (ELECTRIC REVENUE LOC) 5.00 01/01/2009 1,089,387
2,025,000 ST LOUIS PARK MN INDEPENDENT SCHOOL DISTRICT #283 SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.45 02/01/2013 2,263,727
100,000 ST LOUIS PARK MN UNICARE HOME INCOME PROJECT LASALLE BANK INSURED
(HEALTHCARE FACILITIES REVENUE LOC)+/- 1.15 08/01/2014 100,000
1,050,000 ST MICHAEL MN INDEPENDENT SCHOOL DISTRICT #885 FSA SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.00 02/01/2018 1,122,629
39
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MINNESOTA (continued)
$2,000,000 ST MICHAEL MN INDEPENDENT SCHOOL DISTRICT #885 FSA SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.00% 02/01/2019 $ 2,126,960
500,000 ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY REGIONS HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.20 05/15/2013 516,510
1,700,000 ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY REGIONS HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 05/15/2018 1,716,507
3,000,000 ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY REGIONS HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.30 05/15/2028 2,959,410
2,500,000 ST PAUL MN HOUSING & REDEVELOPMENT AUTHORITY ST PAUL ACADEMY & SUMMIT SCHOOL
PROJECT (PRIVATE SCHOOL REVENUE LOC) 5.50 10/01/2024 2,604,675
195,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B (LEASE REVENUE LOC) 5.90 02/01/2004 195,739
215,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B (LEASE REVENUE LOC) 6.10 02/01/2006 215,811
230,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B (LEASE REVENUE LOC) 6.20 02/01/2007 230,892
245,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B (LEASE REVENUE LOC) 6.25 02/01/2008 245,970
260,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B (LEASE REVENUE LOC) 6.30 02/01/2009 261,074
1,050,000 ST PAUL MN INDEPENDENT SCHOOL DISTRICT #625 SERIES B SCHOOL DISTRICT CREDIT PROGRAM
INSURED (PROPERTY TAX REVENUE LOC) 5.70 02/01/2009 1,097,418
1,000,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 07/01/2011 1,173,940
2,795,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 07/01/2017 3,330,466
1,000,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 07/01/2018 1,191,140
7,285,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.50 07/01/2021 8,420,877
15,000 VADNAIS HEIGHTS MINNESOTA (HOUSING REVENUE LOC) 6.00 11/01/2009 15,144
500,000 WACONIA MN HOUSING & REDEVELOPMENT AUTHORITY EVANGELICAL LUTHERAN SERIES A 5.85 06/01/2006 511,310
1,000,000 WAYZATA MN INDEPENDENT SCHOOL DISTRICT NO.284 SERIES B (PROPERTY TAX REVENUE LOC) 5.85 02/01/2010 1,003,860
2,895,000 WESTERN MINNESOTA MUNICIPAL POWER AGENCY 1977 SERIES A (ELECTRIC REVENUE LOC) 6.38 01/01/2016 3,416,418
210,382,122
------------
PUERTO RICO - 1.05%
2,000,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES LL MBIA INSURED (ELECTRIC REVENUE LOC) 5.50 07/01/2016 2,340,180
------------
TOTAL MUNICIPAL BONDS (COST $197,810,779) 212,722,302
------------
SHORT-TERM INVESTMENTS - 2.79%
SHARES
MUTUAL FUND - 2.79%
6,195,975 WELLS FARGO NATIONAL TAX FREE MONEY MARKET TRUST~ 6,195,975
TOTAL SHORT-TERM INVESTMENTS (COST $6,195,975) 6,195,975
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $204,006,754)* 98.53% $218,918,277
OTHER ASSETS AND LIABILITIES, NET 1.47 3,256,497
------ ------------
TOTAL NET ASSETS 100.00% $222,174,774
------ ------------
<FN>
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
+/- VARIABLE RATE SECURITIES.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MUNICIPAL BONDS - 97.64%
ALABAMA - 1.18%
$1,785,000 JEFFERSON COUNTY AL WARRANTS-SERIES A (PROPERTY TAX REVENUE LOC) 5.00% 04/01/2008 $ 1,976,727
------------
ALASKA - 1.70%
1,000,000 ALASKA ENERGY AUTHORITY FSA INSURED (ELECTRIC REVENUE LOC) 7.00 07/01/2009 1,145,930
360,000 ALASKA STUDENT LOAN CORPORATION SERIES A AMBAC INSURED
(HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 5.50 07/01/2006 377,489
1,500,000 NORTH SLOPE BORO AL CAPITAL APPRECIATION SERIES B MBIA INSURED
(GENERAL OBLIGATION - BOND BANK LOC) 2.81^ 06/30/2008 1,322,985
2,846,404
------------
ARIZONA - 1.17%
1,350,000 MARICOPA COUNTY AZ SCHOOL DISTRICT #6 WASHINGTON ELEMENTARY SERIES B
(PROPERTY TAX REVENUE LOC) 7.10 07/01/2008 1,614,600
345,000 PIMA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A (HOUSING REVENUE LOC) 6.50 02/01/2017 350,575
1,965,175
------------
CALIFORNIA - 0.36%
500,000 SANTA CLARA CA REDEVELOPMENT AGENCY BAYSHORE NORTH PROJECT AMBAC INSURED
(TAX REVENUE LOC) 7.00 07/01/2010 599,450
------------
COLORADO - 11.41%
1,020,000 ADAMS COUNTY CO SCHOOL DISTRICT #1 FSA INSURED
(GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.00 12/01/2007 1,129,303
621,000 BOWLES CO METROPOLITAN DISTRICT PREREFUNDED 12/01/05 @ 102
(PROPERTY TAX REVENUE LOC) 7.75 12/01/2005 697,315
1,000,000 CENTRAL PLATTE VALLEY CO METROPOLITAN DISTRICT SERIES A USB INSURED
(PROPERTY TAX REVENUE LOC)+/- 5.00 12/01/2009 1,089,660
535,000 CITY OF ARVADA CO SPRINGWOOD COMMUNITY PROJECT SERIES A COLLATERALIZED BY GNMA
(HOUSING REVENUE LOC) 5.60 08/20/2008 547,300
250,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL-RENAISSANCE
SCHOOL PROJECT (LEASE REVENUE LOC) 5.85 06/01/2008 246,753
1,435,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY PINNACLE CHARTER SCHOOL PROJECT
ESCROWED TO MATURITY (LEASE REVENUE LOC) 5.25 12/01/2011 1,634,522
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH INITIATIVES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 12/01/2008 1,120,700
380,000 COLORADO HEALTH FACILITIES AUTHORITY EVANGELICAL LUTHERAN
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 12/01/2006 413,242
455,000 COLORADO HEALTH FACILITIES AUTHORITY EVANGELICAL LUTHERAN
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 12/01/2010 514,605
500,000 COLORADO HEALTH FACILITIES AUTHORITY HOSPITAL STEAMBOAT SPRINGS HEALTH
(HEALTHCARE FACILITIES REVENUE LOC) 5.30 09/15/2009 508,665
985,000 COLORADO HEALTH FACILITIES AUTHORITY NATIONAL JEWISH MEDICAL & RESEARCH CENTER
(HEALTHCARE FACILITIES REVENUE LOC) 4.80 01/01/2005 996,022
15,000 COLORADO HOUSING & FINANCE AUTHORITY SINGLE FAMILY PROGRAM SERIES C
(HOUSING REVENUE LOC) 5.00 05/01/2005 15,018
1,000,000 COLORADO STATE CO STUDENT OBILGATION BOND AUTHORITY STUDENT LOAN SERIES II-B GSL
INSURED (HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 6.20 12/01/2008 1,051,650
385,000 COUNTY OF BOULDER CO DEVELOPMENT OF LONGMONT UNITED HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 12/01/2005 401,701
620,000 COUNTY OF MESA CO HILLTOP COMMUNITY RESOURCES SERIES A RADIAN INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 12/01/2008 678,950
41
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLORADO (continued)
$ 650,000 COUNTY OF MESA CO HILLTOP COMMUNITY RESOURCES SERIES A RADIAN INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.50% 12/01/2009 $ 728,943
460,000 COUNTY OF MESA CO HILLTOP COMMUNITY RESOURCES SERIES A RADIAN INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 12/01/2010 515,738
970,000 DENVER CITY & COUNTY CO ESCROWED TO MATURITY (HOUSING REVENUE LOC) 7.00 08/01/2010 1,139,915
1,350,000 DENVER CITY & COUNTY CO SERIES A AMBAC INSURED (AIRPORT REVENUE LOC) 4.90 11/15/2008 1,476,306
305,000 DENVER CO HEALTH & HOSPITAL AUTHORITY HEALTH CARE REVENUE SERIES A 5.25 12/01/2005 316,919
205,000 DENVER CO WEST METROPOLITAN DISTRICT SERIES B (PROPERTY TAX REVENUE LOC) 5.00 12/01/2004 210,918
775,000 HIGHLANDS RANCH COM METROPOLITAN DISTRICT #2 FSA INSURED
(PROPERTY TAX REVENUE LOC) 6.50 06/15/2009 923,754
350,000 INTERLOCKEN METROPOLITAN DISTRICT CO SERIES A RADIAN INSURED
(PROPERTY TAX REVENUE LOC) 5.50 12/15/2009 394,282
2,675,000 METROPOLITAN FOOTBALL STADIUM DISTRICT CO CAPITAL APPRECIATION SERIES A MBIA INSURED
(RECREATIONAL FACILITIES REVENUE LOC) 2.69^ 01/01/2008 2,403,835
19,156,016
------------
DISTRICT OF COLUMBIA - 1.67%
300,000 DISTRICT OF COLUMBIA SERIES B-1 AMBAC INSURED (PROPERTY TAX REVENUE LOC) 5.50 06/01/2008 338,208
2,180,000 DISTRICT OF COLUMBIA UNREFUNDED BALANCE 2001 SERIES B FSA INSURED
(PROPERTY TAX REVENUE LOC) 5.50 06/01/2008 2,457,645
2,795,853
------------
FLORIDA - 2.99%
1,035,000 BOYNTON BEACH FL FGIC INSURED (WATER REVENUE LOC) 5.00 11/01/2012 1,142,681
150,000 BRADFORD COUNTY FL SANTE FE HEALTHCARE FACILITIES PROJECT ESCROWED TO MATURITY
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 11/15/2009 168,023
1,475,000 BROWARD COUNTY FL SERIES B AMBAC INSURED (WATER REVENUE LOC) 5.00 10/01/2008 1,646,144
1,365,000 HILLSBOROUGH COUNTY FL ESCROWED TO MATURITY (SEWER REVENUE LOC) 6.20 12/01/2008 1,506,223
500,000 MIAMI FL DADE COUNTY SCHOOL BOARD SERIES A MBIA INSURED (LEASE REVENUE LOC) 5.00 08/01/2027 551,430
5,014,501
------------
IDAHO - 0.72%
1,000,000 BOISE CITY ID INDEPENDENT SCHOOL DIRSTRICT SBG INSURED (PROPERTY TAX REVENUE LOC) 5.00 08/15/2008 1,114,750
90,000 POCATELLO ID DEVELOPMENT AUTHORITY SERIES B (TAX INCREMENTAL REVENUE LOC) 7.25 12/01/2008 94,162
1,208,912
------------
ILLINOIS - 7.15%
1,870,000 BERWYN ILLINIOS AMBAC INSURED (PROPERTY TAX REVENUE LOC) 5.00 11/15/2010 2,062,348
1,500,000 CHICAGO IL ALLOCATION CAPITAL APPRECIATION CENTRAL SERIES A AMBAC INSURED
(TAX INCREMENTAL REVENUE LOC) 1.64^ 12/01/2005 1,453,770
700,000 CHICAGO IL METROPOLITAN WATER RECLAMATION DISTIRCT GREATER CHICAGO IL CAPITAL
IMPROVEMENT BONDS (PROPERTY TAX REVENUE LOC) 6.90 01/01/2007 798,952
565,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY MIDWESTERN UNIVERSITY SERIES B
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 05/15/2007 603,510
1,000,000 ILLINOIS HEALTH FACILITIES AUTHORITY LUTHERAN GENERAL HEALTH SYSEMS SERIES A FSA
INSURED ESCROWED TO MATURITY (HEALTHCARE FACILITIES REVENUE LOC) 6.13 04/01/2012 1,147,040
550,000 ILLINOIS HEALTH FACILITIES AUTHORITY MERCY HOSPITAL PROJECT ESCROWED TO MATURITY
(HEALTHCARE FACILITIES REVENUE LOC) 7.10 06/01/2009 625,152
800,000 NORTH CHICAGO IL FGIC INSURED (PROPERTY TAX REVENUE LOC) 5.75 01/01/2010 922,832
42
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
ILLINOIS (continued)
$1,030,000 NORTHERN ILLINOIS UNIVERSITY CAPITAL APPRECIATION AUXILARY FACILITES SYSTEMS
FGIC INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 2.38%^ 04/01/2007 $ 953,770
3,000,000 STATE OF ILLINOIS SERIES Q (SALES TAX REVENUE LOC) 6.00 06/15/2009 3,433,470
12,000,844
------------
INDIANA - 6.19%
250,000 BLUFFTON-HARRISON IN HIGH SCHOOL BUILDING CORPORATION FIRST MORTGAGE FSA INSURED
(LEASE REVENUE LOC) 4.60 08/01/2009 271,147
1,295,000 DECATUR TOWNSHIP-MARION COUNTY IN METROPOLITAN SCHOOL DISTRICT SCHOOL BUILDING
CORPORATION FIRST MORTGAGE (LEASE REVENUE LOC) 5.20 09/15/2008 1,445,544
1,000,000 INDIANA BOND BANK COMMON SCHOOL ADVANCE PURCHASE FUNDING SERIES B MBIA INSURED
(OTHER REVENUE LOC) 5.00 02/01/2008 1,101,890
1,000,000 INDIANA BOND BANK COMMON SCHOOL FUND ADVISORY PURCHASE SERIES A MBIA INSURED 5.00 02/01/2007 1,088,410
850,000 INDIANA EDUCATIONAL FACILITIES AUTHORITY DEPAUW UNIVERSITY PROJECT
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 07/01/2012 915,442
1,000,000 INDIANA HEALTH FACILITIES FINANCING AUTHORITY CHARITY OBLIGATION GROUP SERIES D
PREREFUNDED 11/15/09 @101 (HEALTHCARE FACILITIES REVENUE LOC) 5.75 11/15/2014 1,176,990
1,980,000 INDIANA HEALTH FACILITY FINANCING AUTHORITY UNREFUNDED BALANCE SERIES A MBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 11/01/2007 2,206,512
1,000,000 INDIANA UNIVERSITY CAPITAL APPRECIATION STUDENT FEE SERIES H AMBAC INSURED
(COLLEGE AND UNIVERSITY REVENUE LOC) 3.09^ 08/01/2009 842,510
1,150,000 INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK CAPITAL APPRECIATION SERIES A
(SPECIAL TAX REVENUE LOC) 1.60^ 02/01/2005 1,130,335
200,000 MERRILLVILLE IN MULTI SCHOOL BUILDING CORPORATION FIRST MORTGAGE MBIA INSURED
(LEASE REVENUE LOC) 6.55 07/01/2005 215,112
10,393,892
------------
IOWA - 1.72%
395,000 CLINTON IA COMMUNITY SCHOOL DISTRIT SERIES A (PROPERTY TAX REVENUE LOC) 5.38 06/01/2005 415,911
1,345,000 IOWA FINANCE AUTHORITY CATHOLIC HEALTH INITIATIVES SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.38 12/01/2005 1,411,201
1,000,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES B (HIGHER EDUCATION FACILITIES
AUTHORITY REVENUE LOC) 4.90 12/01/2005 1,055,660
2,882,772
------------
KANSAS - 0.11%
185,000 CITY OF LAWRENCE KS LAWRENCE MEMORIAL HOSPITAL (HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2004 187,953
------------
LOUISIANA - 1.51%
350,000 LOUISIANA STATE LA UNIVERSITY & AGRICULTURAL & MECHANICAL COLLEGE LOUISIANA STATE
UNIVERSITY AT EUNICE PROJECT MBIA INSURED (COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 06/01/2008 374,178
1,900,000 SHREVEPORT LA SERIES A FGIC INSURED (PROPERTY TAX REVENUE LOC) 5.63 05/01/2008 2,154,885
2,529,063
------------
MASSACHUSETTS - 3.45%
500,000 COMMONWEALTH OF MASSACHUSETTS SERIES A (OTHER REVENUE LOC) 5.25 01/01/2009 559,760
1,515,000 COMMONWEALTH OF MASSACHUSETTS SERIES A (OTHER REVENUE LOC) 5.50 01/01/2010 1,720,677
2,410,000 COMMONWEALTH OF MASSACHUSETTS SERIES C (TAX REVENUE LOC) 5.25 12/01/2007 2,679,269
43
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MASSACHUSETTS (continued)
$ 780,000 MASSACHUSETTS DEVELOPMENT FINANACE AGENCY DEVENS ELECTRIC SYSTEMS
(ELECTRIC REVENUE LOC) 5.13% 12/01/2011 $ 832,634
5,792,340
------------
MICHIGAN - 5.83%
375,000 BATTLE CREEK MI ECONOMIC DEVEVELOPMENT CORPORATION KELLOG COMPANY PROJECT
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.13 02/01/2009 387,169
2,000,000 DETROIT MI COBO HALL MBIA INSURED (TAX REVENUE LOC) 5.00 09/30/2008 2,223,600
1,000,000 DETROIT MI DISTRIBUTABLE STATE AID AMBAC INSURED (PROPERTY TAX REVENUE LOC) 5.25 05/01/2008 1,119,220
1,710,000 DETROIT MI ESCROWED TO MATURITY (STATE & LOCAL GOVERNMENTS LOC) 7.10 12/15/2009 1,966,414
300,000 LAKEVIEW MI COMMUNITY SCHOOL FGIC INSURED (PROPERTY TAX REVENUE LOC) 6.50 05/01/2005 320,505
305,000 LAKEVIEW MI COMMUNITY SCHOOL FGIC INSURED (PROPERTY TAX REVENUE LOC) 6.50 05/01/2006 338,196
395,000 MERRILL MI COMMUNITY SCHOOL DISTRICT FGIC INSURED (PROPERTY TAX REVENUE LOC) 6.50 05/01/2005 421,998
250,000 MICHIGAN STATE MI HOSPITAL FINANCE AUTHORITY ASCENSION HEALTH CREDIT SERIES A MBIA
INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.50 11/15/2007 280,110
185,000 MICHIGAN STATE MI HOSPITAL FINANCE AUTHORITY HENRY FORD HOSPITAL ESCROWED TO MATURITY
(HEALTHCARE FACILITIES REVENUE LOC) 9.00 05/01/2004 189,838
415,000 MICHIGAN STATE MI HOSPITAL FINANCE AUTHORITY OSF HEALTHCARE SYSTEMS
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 11/15/2006 447,063
435,000 MICHIGAN STATE MI HOSPITAL FINANCE AUTHORITY OSF HEALTHCARE SYSTEMS
(HEALTHCARE FACILITIES REVENUE LOC) 5.38 11/15/2007 472,371
300,000 MICHIGAN STATE MI HOSPITAL FINANCIAL AUTHORITY CHARITY OBLIGATION GROUP SERIES A
PREREFUNDED 05/ 01/10 @100 (HOSPITAL REVENUE LOC) 5.13 11/01/2029 334,806
2,405,000 ROMULUS TOWNSHIP MI COMMUNITY SCHOOLS CAPITAL APPRECIATION SERIES II FGIC INSURED
PREREFUNDED 05/ 01/07 @ 36.6958 (PROPERTY TAX REVENUE LOC) 5.96^ 05/01/2022 819,480
450,000 SCHOOLCRAFT MI COMMUNITY SCHOOL DISTRICT FGIC INSURED (PROPERTY TAX REVENUE LOC) 6.50 05/01/2004 458,023
9,778,793
------------
MINNESOTA - 3.24%
100,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT NO 112 SERIES B (PROPERTY TAX REVENUE LOC) 6.00 02/01/2014 108,669
405,000 CITY OF MINNEAPOLIS MN ALLINA HEALTH SYSTEMS SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 11/15/2008 437,935
1,200,000 MINNEAPOLIS & ST. PAUL MN HOUSING & REDEVELOPMENT AUTHORITY HEALTH CARE SYSTEMS
HEALTH PARTNERS OBLIGATION GROUP PJ (HEALTHCARE FACILITIES REVENUE LOC) 5.25 12/01/2008 1,287,564
225,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD EVANGELICAL LUTHERAN PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 02/01/2006 235,503
230,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD EVANGELICAL LUTHERAN PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 02/01/2007 242,979
250,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD EVANGELICAL LUTHERAN PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 02/01/2008 264,302
700,000 MINNESOTA HIGHER EDUCATION FACILITIES AUTHORITY ST OLAF COLLEGE SERIES 5-H HARRIS
TRUST & SAVINGS BANK INSURED (COLLEGE AND UNIVERSITY REVENUE LOC)+/- 0.85 10/01/2030 700,000
365,000 MINNESOTA STATE MN HIGHER EDUCATION FACILITIES AUTHORITY STATE SCHOLASTICAL
SERIES 5-J (COLLEGE AND UNIVERSITY REVENUE LOC) 4.88 12/01/2007 392,200
1,000,000 ROCHESTER MN HEALTHCARE FACILITIES REVENUE MAYO FOUNDATION MAYO MEDICAL
CENTER-SERIES I (HEALTHCARE FACILITIES REVENUE LOC) 5.80 11/15/2007 1,133,100
545,000 WESTERN MINNESOTA MUNICIPAL POWER AGENCY 1977 SERIES A (ELECTRIC REVENUE LOC) 6.38 01/01/2016 643,160
5,445,412
------------
44
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MISSISSIPPI - 3.41%
$1,000,000 STATE OF MISSISSIPPI (TAX REVENUE LOC) 5.25% 09/01/2007 $ 1,110,950
4,060,000 STATE OF MISSISSIPPI ESCROWED TO MATURITY (PROPERTY TAX REVENUE LOC) 6.20 02/01/2008 4,619,712
5,730,662
------------
MISSOURI - 0.67%
1,000,000 MISSOURI STATE BOARD PUBLIC BUILDINGS SPECIAL OBLIGATION SERIES A (RECREATIONAL
FACILITIES REVENUE LOC) 5.25 10/15/2008 1,127,930
------------
NEBRASKA - 0.25%
415,000 NEBRASKA INVESTMENT FINANCE AUTHORITY GREAT PLAINS REGULAR MEDICAL CENTER PROJECT
RADIAN INSURED (HEALTHCARE FACILITIES REVENUE LOC) 4.80 11/15/2004 427,230
------------
NEVADA - 0.75%
645,000 SPARKS NV REDEVELOPMENT AGENCY SERIES A RADIAN INSURED
(TAX INCREMENTAL REVENUE LOC) 5.10 01/15/2008 704,159
500,000 WASHOE COUNTY NV AIRPORT AUTHORITY FGIC INSURED (AIRPORT REVENUE LOC) 5.25 07/01/2008 556,150
1,260,309
------------
NEW JERSEY - 1.13%
500,000 NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY CAPITAL HEALTH SYSTEMS
OBLIGATION GROUP (HEALTHCARE FACILITIES REVENUE LOC) 5.00 07/01/2005 519,190
225,000 NEW JERSEY STATE HIGHWAY AUTHORITY GARDEN STATE PARKWAY GENERAL REVENUE
(TOLL ROAD REVENUE LOC) 6.20 01/01/2010 261,452
1,000,000 NEW JERSEY STATE TRANSPORTATION TRANSIT FUND AUTHORITY TRANSPORTATION
SYSTEM-SERIES A (TRANSPORTATION REVENUE LOC) 5.00 06/15/2012 1,113,220
1,893,862
------------
NEW YORK - 3.86%
1,000,000 CITY OF NEW YORK NY SERIES E (PROPERTY TAX REVENUE LOC) 5.25 08/01/2009 1,111,050
1,000,000 CITY OF NEW YORK NY SERIES E FSA INSURED (PROPERTY TAX REVENUE LOC) 4.90 02/01/2007 1,088,660
150,000 NEW YORK STATE DORMITORY AUTHORITY CAPITAL APPRECIATION PREREFUNDED CITY SERIES A
FSA INSURED ESCROWED TO MATURITY (COLLEGE AND UNIVERSITY REVENUE LOC) 5.24^ 07/01/2005 138,804
500,000 NEW YORK STATE DORMITORY AUTHORITY STATE PERSONAL INCOME TAX SERIES A
(TAX REVENUE LOC) 5.00 03/15/2008 552,980
1,000,000 NEW YORK STATE THRUWAY AUTHORITY UNREFUNDED BALANCE LOCAL HIGHWAY & BRIDGES
(OTHER REVENUE LOC) 5.25 04/01/2010 1,113,080
2,135,000 TRIBOROUGH BRIDGE & TUNNEL AUTHORITY NY CONVENTION CENTER PROJECT SERIES E
MBIA INSURED (OTHER REVENUE LOC) 7.25 01/01/2010 2,483,347
6,487,921
------------
NORTH DAKOTA - 0.66%
1,000,000 NORTH DAKOTA BUILDING AUTHORITY SERIES A FGIC INSURED (LEASE REVENUE LOC) 5.25 06/01/2008 1,114,300
------------
OHIO - 5.39%
160,000 AKRON OH AKRON MUNICIPAL BASEBALL STADIUM PROJECT (LEASE REVENUE LOC) 6.50 12/01/2007 174,223
1,000,000 FRANKLIN COUNTY OH AMERICAN CHEMICAL SOCIETY PROJECT
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.13 10/01/2008 1,103,160
1,000,000 LUCAS COUNTY OH PROMEDICAL HEALTHCARE OBLIGATION MBIA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 11/15/2007 1,123,510
900,000 OHIO STATE WATER DEVELOPMENT AUTHORITY WATER DEVELOPMENT PURE WATER AMBAC
INSURED (WATER REVENUE LOC) 5.00 06/01/2008 1,000,278
2,000,000 STATE OF OHIO (PROPERTY TAX REVENUE LOC) 6.65 09/01/2009 2,312,700
45
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
OHIO (continued)
$ 560,000 STATE OF OHIO INFRASTRUCTURE IMPROVEMENT SERIES B (PROPERTY TAX REVENUE LOC) 5.00% 03/01/2008 $ 620,838
2,455,000 STATE OF OHIO INFRASTRUCTURE IMPROVEMENTS SERIES C (PROPERTY TAX REVENUE LOC) 5.00 08/01/2007 2,706,613
9,041,322
------------
OREGON - 0.54%
855,000 GRANTS PASS OR URBAN RENEWAL AGENCY PARKWAY REDEVELOPMENT AREA
(TAX INCREMENTAL REVENUE LOC) 5.00 08/01/2008 911,857
------------
PENNSYLVANIA - 1.50%
530,000 DOVER TOWNSHIP AUTHORITY ESCROWED TO MATURITY (SEWER REVENUE LOC) 6.25 05/01/2012 572,421
1,000,000 MONTGOMERY COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY PECO ENERGY COMPANY
SERIES B (INDUSTRIAL DEVELOPMENT REVENUE LOC)+/- 5.30 10/01/2004 1,021,890
855,000 WINDBER AREA AUTHORITY PA WINDBER HOSPITAL PROJECT FHA INSURED PREREFUNDED
08/01/05 @ 102 (HEALTHCARE FACILITIES REVENUE LOC) 6.50 08/01/2005 928,761
2,523,072
------------
PUERTO RICO - 0.66%
1,000,000 PUERTO RICO COMMONWEALTH SERIES C PUBLIC IMPROVEMENT (OTHER REVENUE LOC)+/- 5.00 07/01/2028 1,104,210
------------
SOUTH CAROLINA - 1.75%
2,000,000 SOUTH CAROLINA JOBS-ECONOMIC DEVELOPMENT AUTHORITY IMPROVEMENT PALMETTO HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 08/01/2011 2,049,920
870,000 SOUTH CAROLINA STATE HOUSING FINANCE & DEVELOPMENT AUTHORITY SERIES A-2 FSA INSURED
(HOUSING REVENUE LOC) 5.50 07/01/2004 884,242
2,934,162
------------
SOUTH DAKOTA - 2.07%
1,220,000 HEARTLAND SD CONSUMERS POWER DISTRICT FSA INSURED (ELECTRIC REVENUE LOC) 6.00 01/01/2009 1,372,988
1,000,000 RAPID CITY SD AREA SCHOOL DISTRICT #51-4 CAPITAL OUTLAY CERTIFICATIONS FSA INSURED
(PROPERTY TAX REVENUE LOC) 5.00 01/01/2009 1,112,840
910,000 SOUTH DAKOTA HEALTH & EDUCATIONAL FACILITIES AUTHORITY HEALTHCARE PRAIRIE ACA INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.20 04/01/2008 993,847
3,479,675
------------
TENNESSEE - 5.41%
2,900,000 JACKSON TENNESSEE WATER AND SEWER REVENUE (WATER & WASTEWATER AUTHORITY
REVENUE LOC) 6.30 07/01/2011 3,290,630
1,000,000 MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY FEDERAL EXPRESS CORPORATION
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.00 09/01/2009 1,094,360
1,215,000 SHELBY COUNTY TN PUBLIC IMPROVEMENT & SCHOOL SERIES A MBIA INSURED
(PROPERTY TAX REVENUE LOC) 5.00 03/01/2008 1,345,977
1,000,000 STATE OF TENNESSEE SERIES A (FUEL SALES TAX REVENUE LOC) 5.00 05/01/2007 1,097,160
2,000,000 STATE OF TENNESSEE SERIES A FGIC INSURED (FUEL SALES TAX REVENUE LOC) 5.25 02/01/2009 2,257,520
9,085,647
------------
TEXAS - 8.97%
1,000,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT DOW CHEMICAL COMPANY PROJECT SERIES B-1
(INDUSTRIAL DEVELOPMENT REVENUE LOC)+/- 4.20 05/15/2005 1,019,910
555,000 CITY OF HOUSTON TX ESCROWED TO MATURITY (AIRPORT REVENUE LOC) 6.25 07/01/2012 639,843
280,000 DENISON HOUSING AUTHORITY MANNING PARK PLAZA HUD INSURED (HOUSING REVENUE LOC) 5.00 10/01/2009 295,951
46
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
TEXAS (continued)
$ 135,000 DESOTO HOUSING FINANCE CORPORATION WINDSOR FOUNDATION PROJECT SERIES A ESCROWED TO
MATURITY (HOUSING REVENUE LOC) 6.13% 02/01/2005 $ 135,559
400,000 GULF COAST INDUSTRIAL DEVELOPMENTAL AUTHORITY MOBIL OIL CORPORATION PROJECT
GAURANTEE AGREEMENT (INDUSTRIAL DEVELOPMENT REVENUE LOC) 4.95 07/01/2007 438,276
240,000 HARLANDALE TX INDEPENDENT SCHOOL DISTRICT ESCROWED TO MATURITY (LEASE REVENUE LOC) 5.20 10/15/2006 258,022
2,330,000 HARRIS COUNTY HOUSTON TX SPORTS AUTHORITY SENIOR LIEN SERIES A MBIA INSURED
(SPECIAL TAX REVENUE LOC) 5.25 11/15/2007 2,596,925
1,040,000 HARRIS COUNTY TX PERMANENT IMPROVEMENT 5.50 10/01/2007 1,165,642
15,000 HOUSTON HOUSING FINANCE CORPORATION SERIES A-1 (HOUSING REVENUE LOC) 8.00 06/01/2014 15,059
400,000 LUFKIN TX HEALTH FACILITIES DEVELOPMENT CORPORATION MEMORIAL HEALTH SYSTEMS OF EAST
TEXAS (HEALTHCARE FACILITIES REVENUE LOC) 6.50 02/15/2006 414,444
1,000,000 LUFKIN TX HEALTH FACILITY DEVELOPMENT CORPORATION HEALTH SYSTEM REVENUE MEMORIAL
HEALTH SYSTEM OF EAST TEXAS (HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC) 5.00 02/15/2008 993,560
910,000 LYFORD TX CONSOLIDATED SCHOOL DISTRICT (LEASE REVENUE LOC) 5.00 08/15/2007 973,127
3,100,000 MIDLAND COUNTY TX HOSPITAL DISTRICT CAPITAL APPRECIATION AMBAC INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 4.92^ 06/01/2007 2,625,514
3,000,000 SAM RAYBURN TX MUNICIPAL POWER AGENCY MBIA INSURED (ELECTRIC REVENUE LOC) 6.00 09/01/2009 3,477,360
15,049,192
------------
UTAH - 0.34%
500,000 INTERMOUNTAIN POWER AGENCY UT SERIES A MBIA INSURED (ELECTRIC REVENUE LOC) 6.00 07/01/2008 574,965
------------
WASHINGTON - 7.80%
1,000,000 COWLITZ COUNTY WA PUBLIC UTILTIY DISTRICT #1 DISTRIBUTION SYSTEMS AMBAC INSURED
(ELECTRIC REVENUE LOC) 5.25 09/01/2009 1,126,960
2,000,000 KING COUNTY WA SERIES B FSA INSURED (SEWER REVENUE LOC) 5.25 01/01/2008 2,224,240
950,000 PORT ANACORTES WA SERIES A (AIRPORT REVENUE LOC) 5.13 09/01/2009 1,000,853
190,000 SEATTLE WA HOUSING AUTHORITY MARKET HOUSE ELDERLY HOUSING SERIES A HUD INSURED
(HOUSING REVENUE LOC) 6.20 02/01/2004 190,112
1,345,000 SKAGIT COUNTY WASHINGTON PUBLIC HOSPITAL DISTRICT 4.75 12/01/2007 1,387,489
1,330,000 SPOKANE WA FGIC INSURED (PROPERTY TAX REVENUE LOC) 5.00 06/01/2008 1,474,651
1,155,000 STATE OF WASHINGTON SERIES A & AT-6 (TAX REVENUE LOC) 6.25 02/01/2011 1,356,062
695,000 TACOMA WA DEPARTMENT OF PUBLIC UTILITY & LIGHT DIVISION ESCROWED TO MATURITY
(ELECTRIC REVENUE LOC) 4.20 01/01/2008 746,562
555,000 TACOMA WA DEPARTMENT OF PUBLIC UTILITY & LIGHT DIVISION ESCROWED TO MATURITY
(ELECTRIC REVENUE LOC) 4.20 07/01/2008 598,601
800,000 WASHINGTON HEALTH CARE FACILITIES AUTHORITY GOOD SAMARITAN HOSPITAL RADIAN INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00 10/01/2008 875,128
1,850,000 WASHINGTON PUBLIC POWER SUPPLY SYSTEM SERIES A FGIC INSURED (ELECTRIC REVENUE LOC) 3.17^ 07/01/2009 1,556,128
475,000 WASHINGTON STATE PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECT NUMBER 1
PREREFUNDED-SERIES B (ELECTRIC REVENUE LOC) 7.25 07/01/2009 555,579
13,092,365
------------
WEST VIRGINIA - 0.74%
200,000 KANAWHA COUNTY WV FGIC INSURED ESCROWED TO MATURITY (HOUSING REVENUE LOC) 7.38 09/01/2011 253,292
865,000 WEST VIRGINIA WATER DEVELOPMENT AUTHORITY SEWER SYSTEMS LOAN PROGRAM ESCROWED
TO MATURITY (SEWER REVENUE LOC) 7.10 11/01/2009 997,388
1,250,680
------------
47
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED TERM TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
WISCONSIN - 1.34%
$2,000,000 State of Wisconsin Series 2 (Tax Revenue LOC) 5.13% 11/01/2008 $ 2,241,420
TOTAL MUNICIPAL BONDS (COST $159,298,329) 163,904,888
------------
SHORT-TERM INVESTMENTS - 1.34%
SHARES
MUTUAL FUND - 1.34%
2,241,967 WELLS FARGO NATIONAL TAX FREE MONEY MARKET TRUST~ 2,241,967
TOTAL SHORT-TERM INVESTMENTS (COST $2,241,967) 2,241,967
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $161,540,296)* 98.98% $166,146,855
OTHER ASSETS AND LIABILITIES, NET 1.02 1,710,228
------ ------------
TOTAL NET ASSETS 100.00% $167,857,083
------ ------------
<FN>
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
+/- VARIABLE RATE SECURITIES.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INVESTMENT COMPANIES - 4.71%
60,485 BLACKROCK STRATEGIC MUNICIPAL TRUST $ 888,525
380,000 DREYFUS MUNICIPAL INCOME FUND 3,758,200
91,802 DREYFUS STRATEGIC MUNICIPAL BOND FUND 808,776
103,352 MUNICIPAL ADVANTAGE FUND INCORPORATED 1,457,263
115,082 NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND 1,781,469
204,862 NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND 3,312,618
116,037 NUVEEN PREMIUM INCOME MUNICIPAL FUND 1,687,178
30,612 SALOMON BROTHERS MUNICIPAL PARTNERS FUND INCORPORATED 428,568
91,984 SELIGMAN SELECT MUNICIPAL FUND 1,018,263
57,005 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST 934,882
45,072 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II 678,333
91,637 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS 1,443,283
TOTAL INVESTMENT COMPANIES (COST $14,563,804) 18,197,358
------------
PRINCIPAL INTEREST RATE MATURITY DATE
MUNICIPAL BONDS - 94.79%
ALABAMA - 0.81%
$ 50,000 ALABAMA HOUSING FINANCE AUTHORITY SERIES B COLLEGE HOME MORTGAGE BOARD PROGRAM
(HOUSING REVENUE LOC) 6.10% 10/01/2020 51,688
1,815,000 ALABAMA STATE BOARD EDUCATION TUITION REVENUE JOHN C CALHOUN COMMUNITY COLLEGE-A
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.25 05/01/2023 1,936,224
1,000,000 COUNTY OF JEFFERSON AL CAPITAL IMPROVEMENTS WASTE SERIES D (SEWER REVENUE LOC) 5.25 02/01/2022 1,142,370
3,130,282
------------
ALASKA - 0.25%
35,000 ALASKA HOUSING FINANCE CORPORATION COLLEGE 1ST SERIES VETERANS MTG PG
(HOUSING REVENUE LOC) 5.40 12/01/2023 35,323
500,000 ALASKA HOUSING FINANCE CORPORATION HOUSING DEVELOPMENT SERIES A
(HOUSING REVENUE LOC) 5.70 12/01/2029 515,405
400,000 ALASKA STUDENT LOAN CORPORATION SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 07/01/2014 419,720
970,448
------------
ARIZONA - 5.53%
1,000,000 ARIZONA POWER AUTHORITY CROSSOVER SERIES A SPL OBLIG-REF-HOOV (OTHER REVENUE LOC) 5.25 10/01/2014 1,139,250
250,000 ARIZONA STATE TRANSPORTATION BOARD (TOLL ROAD REVENUE LOC) 5.25 07/01/2015 278,117
500,000 CHANDLER ARIZONA (FUEL SALES TAX REVENUE LOC) 6.00 07/01/2011 581,650
200,000 GILBERT WATER RESOURCE MUNICIPAL PROPERTY CORPORATION AZ SUB LIEN-CONNECTION DEV FEE
(LEASE REVENUE LOC) 6.40 04/01/2016 200,398
630,000 GLENDALE INDUSTRIAL DEVELOPMENT AUTHORITY AZ UNREFUNDED BALANCE SERIES A
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 05/15/2026 692,798
200,000 MARICOPA COUNTY AZ ELEMENTARY SCHOOL DISTRICT NO.68 ALHAMBRA
(PROPERTY TAX REVENUE LOC) 5.50 07/01/2013 232,092
500,000 MARICOPA COUNTY AZ ELEMENTARY SCHOOL DISTRICT NO.68 ALHAMBRA SCHOOL IMPROVEMENTS
PROJECT (PROPERTY TAX REVENUE LOC) 5.10 07/01/2004 519,450
1,400,000 MARICOPA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A ARIZONA CHARTER SCHOOLS
PROJECT 1 (PRIVATE SCHOOL REVENUE LOC) 6.63 07/01/2020 1,412,194
4,000,000 MARICOPA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A ARIZONA CHARTER SCHOOLS
PROJECT 1 (PRIVATE SCHOOL REVENUE LOC) 6.75 07/01/2029 3,985,520
49
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
ARIZONA (continued)
$2,000,000 MARICOPA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A CATHOLIC HEALTHCARE
WEST PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.00% 07/01/2016 $ 2,038,880
750,000 MARICOPA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A WHISPERING PALMS
APARTMENTS (HOUSING REVENUE LOC) 5.85 07/01/2019 791,572
840,000 MARICOPA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES B GRAN VICTORIA
HOUSING LLC PROJECT (HOUSING REVENUE LOC) 10.00 05/01/2031 844,082
585,000 MARICOPA COUNTY AZ POLLUTION CONTROL CORPORATION SERIES A PUBLIC SERVICE COMPANY
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.75 11/01/2022 584,947
215,000 NAVAJO COUNTY AZ MUNICIPAL PROPERTY CORPORATION JAIL FACILITIES (LEASE REVENUE LOC) 5.63 07/01/2010 239,835
750,000 NAVAJO COUNTY AZ POLLUTION CONTROL CORPORATION SERIES A ARIZONA PUBLIC SERVICE
COMPANY (INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.88 08/15/2028 752,873
1,500,000 PHOENIX ARIZONA SERIES A (PROPERTY TAX REVENUE LOC) 6.25 07/01/2016 1,849,485
250,000 PHOENIX AZ INDUSTRIAL DEVELOPMENT AUTHORITY CAPITAL MALL LLC PROJECT
(LEASE REVENUE LOC) 5.38 09/15/2022 271,480
900,000 PHOENIX AZ INDUSTRIAL DEVELOPMENT AUTHORITY JOHN C LINCOLN HEALTH SERIES B
(HEALTHCARE FACILITIES REVENUE LOC) 5.65 12/01/2012 1,019,646
405,000 PHOENIX AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES 1A (HOUSING REVENUE LOC) 6.25 09/01/2032 439,372
135,000 PHOENIX AZ INDUSTRIAL DEVELOPMENT AUTHORITY STATEWIDE SERIES C
(HOUSING REVENUE LOC) 5.30 04/01/2020 139,717
335,000 PIMA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES A (HOUSING REVENUE LOC) 6.50 02/01/2017 340,414
250,000 PIMA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY SERIES C ARIZONA CHARTER SCHOOLS
PROJECT (PRIVATE SCHOOL REVENUE LOC) 6.70 07/01/2021 252,343
1,440,000 PIMA COUNTY AZ INDUSTRIAL DEVELOPMENT AUTHORITY WILLOWICK APARTMENT PROJECT
(HOUSING REVENUE LOC) 5.50 03/01/2028 1,480,896
300,000 SCOTTSDALE AZ PRESERVATION AUTHORITY (SALES TAX REVENUE LOC) 5.25 07/01/2017 328,638
500,000 TUCSON AZ SENIOR LIEN SERIES 1994-C (FUEL SALES TAX REVENUE LOC) 7.00 07/01/2012 633,390
275,000 UNIVERSITY OF ARIZONA SYSTEMS SERIES A (COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 06/01/2010 324,121
21,373,160
------------
ARKANSAS - 0.52%
2,000,000 LITTLE ROCK AR CAPITAL IMPROVEMENT FSA INSURED 4.00 04/01/2016 2,001,580
------------
CALIFORNIA - 6.01%
2,500,000 ACCESS TO LOANS FOR LEARNING STUDENT LOAN CORPORATION CA SERIES D-2 STUDENT LOAN
PG-JR-SUB-IV (COLLEGE AND UNIVERSITY REVENUE LOC) 7.85 07/01/2025 2,482,075
2,000,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES B-2 (ELECTRIC REVENUE LOC)+/- 0.72 05/01/2022 2,000,000
3,745,000 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY SERIES A ASPIRE PUBLIC SCHOOLS
OAKLAND PROJECT (OTHER REVENUE LOC) 7.25 08/01/2031 3,751,441
160,000 CITY OF LOS ANGELES CA SERIES A (SEWER REVENUE LOC) 5.88 06/01/2024 166,419
670,000 LOS ANGELES CA COMMUNITY REDEVELOPMENT AGENCY SERIES A MONTEREY HILLS
REDEVELOPMENT PROJECT (HOUSING REVENUE LOC) 8.20 12/01/2013 689,216
6,900,000 METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA SERIES A6 (WATER REVENUE LOC)+/-! 9.66 08/10/2018 9,450,378
1,440,000 METROPOLITAN WATER DISTRICT SOUTHERN CALIFORNIA WATERWORKS SERIES B
(PROPERTY TAX REVENUE LOC) 4.63 03/01/2018 1,488,269
850,000 PICO RIVERA CA WATER AUTHORITY SERIES A (WATER REVENUE LOC) 5.75 12/01/2012 862,384
240,000 SAN FRANCISCO CA AIRPORT IMPROVEMENT AIRPORT UNITED AIRLINES INCORPORATED
(AIRPORT REVENUE LOC) 8.00 07/01/2013 295,786
50
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CALIFORNIA (continued)
$1,000,000 SANTA CLARA COUNTY CA HOUSING AUTHORITY SERIES A RIVERTOWN APARTMENTS PROJECT
(HOUSING REVENUE LOC) 6.00% 08/01/2041 $ 1,016,100
1,000,000 STUDENT EDUCATION LOAN MARKETING CORPORATION CA SERIES IV D1 JUNIOR SUBORDINATES
(HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 5.88 01/01/2018 1,002,410
23,204,478
------------
COLORADO - 7.92%
1,750,000 ARAPAHOE COUNTY CO WATER & WASTEWATER AUTHORITY REVENUE (WATER REVENUE LOC) 6.25 12/01/2020 1,981,158
1,560,000 BLACK HAWK CO BUSINESS IMPROVEMENT DISTRICT SPECIAL IMPROVEMENTS DISTRICT #98-1
(SPECIAL TAX REVENUE LOC) 7.00 12/01/2011 1,572,418
200,000 COLORADO EDUCATIONAL & CULTURAL FACILITIES AUTHORITY CHARTER SCHOOL CORE KNOWLEDGE
PROJECT (LEASE REVENUE LOC) 7.00 11/01/2029 214,468
1,800,000 COLORADO HEALTH FACILITIES AUTHORITY STEAMBOAT SPRINGS HEALTH PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.70 09/15/2023 1,783,008
2,830,000 COLORADO HOUSING & FINANCE AUTHORITY AMT-SINGLE FAMILY PROGRAM-SERIES A
MBIA INSURED (SINGLE FAMILY HOUSING REVENUE LOC) 6.50 08/01/2031 2,985,961
1,500,000 COLORADO HOUSING & FINANCE AUTHORITY AMT-SINGLE FAMILY MORTGAGE-CLASS 3-B-4
(HOUSING REVENUE LOC) 5.00 05/01/2032 1,557,195
1,155,000 COLORADO HOUSING & FINANCE AUTHORITY CO SINGLE FAMILY PROGRAM SERIES B-2
(HOUSING REVENUE LOC) 7.10 04/01/2017 1,177,661
140,000 COLORADO HOUSING & FINANCE AUTHORITY CO SINGLE FAMILY PROGRAM SERIES C
(HOUSING REVENUE LOC) 7.90 12/01/2024 140,000
250,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES B2 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 7.50 12/01/2016 253,033
110,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES D-1 SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 8.00 12/01/2024 110,455
40,000 COLORADO HOUSING & FINANCE AUTHORITY SERIES D-II SINGLE FAMILY PROJECT
(HOUSING REVENUE LOC) 8.13 06/01/2025 40,520
5,015,000 COLORADO HOUSING & FINANCE AUTHORITY SINGLE FAMILY PG-B3-FSA-CR
(HOUSING REVENUE LOC) 6.70 08/01/2017 5,327,685
235,000 COLORADO HOUSING & FINANCE AUTHORITY SINGLE FAMILY PROGRAM SERIES A-2
(HOUSING REVENUE LOC) 7.15 11/01/2014 238,483
1,695,000 COLORADO HOUSING AND FINANCE AUTHORITY SINGLE FAMILY PROGRAM SERIES D-2
(SINGLE FAMILY HOUSING REVENUE LOC) 6.90 04/01/2029 1,718,340
500,000 DENVER CITY & COUNTY CO SERIES E (AIRPORT REVENUE LOC) 5.50 11/15/2025 535,065
500,000 DENVER CITY & COUNTY CO THE BOSTON LOFTS PROJECT SERIES A (HOUSING REVENUE LOC) 5.75 10/01/2027 516,230
5,200,000 DENVER URBAN RENEWAL AUTHORITY CO TAX EXEMPT RICE SERIES A
(PROPERTY TAX REVENUE LOC) 9.13 09/01/2017 5,517,564
3,245,000 LITTLETON CO BUILDING CORPORATION CERTIFICATIONS PARTNERS (LEASE REVENUE LOC) 5.13 12/01/2018 3,503,529
895,000 NORTHERN METROPOLITAN DISTRICT ADAMS COUNTY CO (OTHER REVENUE LOC) 6.50 12/01/2016 905,427
420,000 SUMMIT COUNTY CO KEYSTONE RESORTS MANAGEMENT PROJECT (OTHER REVENUE LOC) 7.38 09/01/2010 514,571
30,592,771
------------
CONNECTICUT - 0.03%
115,000 CONNECTICUT STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY SERIES B NEW BRITAIN
GENERAL HOSPITAL (HEALTHCARE FACILITIES REVENUE LOC) 6.00 07/01/2024 119,672
------------
DISTRICT OF COLUMBIA - 0.60%
3,850,000 DISTRICT OF COLUMBIA CAPITAL APPRECIATION MANDARIN ORIENTAL
(TAX INCREMENTAL REVENUE LOC) 4.46^ 07/01/2015 2,318,239
------------
51
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
FLORIDA - 1.40%
$ 505,000 BOYNTON BEACH FL HOUSING MORTGAGE CLIPPER COVE APARTMENTS
(HOUSING REVENUE LOC) 6.45% 01/01/2027 $ 563,232
500,000 FLORIDA HOUSING FINANCE AGENCY HOUSING GLEN OAKS APARTMENTS PROJECT
(HOUSING REVENUE LOC) 5.90 02/01/2030 521,615
4,115,000 PALM BEACH COUNTY HOUSING FINANCE AUTHORITY HOUSING REVENUE SERIES A
(HOUSING REVENUE LOC) 4.85 04/01/2032 4,326,552
5,411,399
------------
GEORGIA - 0.26%
500,000 FULTON COUNTY HOUSING AUTHORITY CONCORDE PLACE APARTMENT PROJECT SERIES C
(HOUSING REVENUE LOC) 6.90 07/01/2008 591,215
410,000 GEORGIA STATE HOUSING & FINANCE AUTHORITY SINGLE FAMILY MORTGAGE SERIES B-2
(HOUSING REVENUE LOC) 5.85 12/01/2028 426,183
1,017,398
------------
GUAM - 0.02%
60,000 GUAM HOUSING CORPORATION SERIES A MTG-GTD MTG-BKD SECS (HOUSING REVENUE LOC) 5.75 09/01/2031 66,124
------------
HAWAII - 0.11%
430,000 HAWAII STATE HOUSING FINANCE & DEVELOPMENT CORPORATION SERIES A
(HOUSING REVENUE LOC) 5.75 07/01/2030 444,508
------------
IDAHO - 1.08%
85,000 AMMON URBAN RENEWAL AGENCY ID TAX INCREMENT SERIES B
(TAX INCREMENTAL REVENUE LOC) 6.00 08/01/2014 93,834
135,000 BLACKFOOT IDAHO WASTEWATER TREATMENT PLANT FACILITIES PROJECT (LEASE REVENUE LOC) 5.80 09/01/2018 154,695
115,000 BLACKFOOT IDAHO WASTEWATER TREATMENT PLANT FACILITIES PROJECT (LEASE REVENUE LOC) 5.85 09/01/2019 132,266
500,000 CANYON COUNTY SCHOOL DISTRICT NO. 132 IDAHO (PROPERTY TAX REVENUE LOC) 5.45 07/30/2004 517,770
125,000 FREMONT & MADISON COUNTIES SCHOOL DISTRICT NO.215 ST ANTHONY ID
(PROPERTY TAX REVENUE LOC) 5.60 08/01/2004 128,340
765,000 FREMONT & MADISON COUNTIES SCHOOL DISTRICT NO.215 ST ANTHONY ID
(PROPERTY TAX REVENUE LOC) 5.60 08/01/2004 785,441
150,000 IDAHO HEALTH FACILITIES AUTHORITY ID IHC HOSPITALS INCORPORATED
(HEALTHCARE FACILITIES REVENUE LOC) 6.65 02/15/2021 191,848
620,000 IDAHO HOUSING & FINANCE ASSOCIATION SINGLE FAMILY MORTGAGE SERIES H-2
(HOUSING REVENUE LOC) 6.15 01/01/2028 649,903
445,000 IDAHO HOUSING AGENCY SINGLE FAMILY MORTGAGE SERIES C-2 (HOUSING REVENUE LOC) 6.35 07/01/2015 460,188
425,000 IDAHO WATER RESOURCE BOARD RESOURCE POOLED LOAN PROGRAM SERIES A
(WATER REVENUE LOC) 6.20 05/01/2020 452,608
55,000 POCATELLO ID DEVELOPMENT AUTHORITY SERIES B (TAX INCREMENTAL REVENUE LOC) 7.25 12/01/2008 57,543
500,000 UNIVERSITY OF IDAHO STUDENT FEE KIBBIE & ENROLL SERIES D
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.00 04/01/2026 567,420
4,191,856
------------
ILLINOIS - 11.11%
2,500,000 BRIDGEVIEW ILLINIOS (PROPERTY TAX REVENUE LOC) 5.00 12/01/2017 2,683,925
2,250,000 CHICAGO HOUSING AUTHORITY IL (HOUSING REVENUE LOC) 5.38 07/01/2019 2,412,427
500,000 CHICAGO IL GNMA COLLEGE BELLA PROJECT (HOUSING REVENUE LOC) 6.13 06/01/2039 524,345
2,495,000 CHICAGO ILLINIOS SERIES B (AIRPORT REVENUE LOC) 5.38 01/01/2017 2,737,589
1,620,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY SERIES A COMMUNITY REHABILITATION
PREREFUNDED 7.88 07/01/2005 1,799,382
52
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
ILLINOIS (continued)
$ 925,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY SERIES A UNREFUNDED BALANCE
COMMUNITY REHABILITATION^^ 7.88% 07/01/2020 $ 324,407
4,000,000 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE (COLLEGE AND UNIVERSITY
REVENUE LOC) 5.75 07/01/2012 4,309,440
1,020,000 ILLINOIS HEALTH FACILITIES AUTHORITY EDGEWATER MEDICAL CENTER SERIES A 9.25 07/01/2004 1,078,181
135,000 ILLINOIS HEALTH FACILITIES AUTHORITY HOLY CROSS HOSPITAL PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 03/01/2004 130,876
4,000,000 ILLINOIS HEALTH FACILITIES AUTHORITY OSF HEALTHCARE SYSTEM
(HEALTHCARE FACILITIES REVENUE LOC) 6.25 11/15/2029 4,229,080
235,000 ILLINOIS HOUSING DEVELOPMENT AUTHORITY MULTI-FAMILY HOUSING (HOUSING REVENUE LOC) 7.00 07/01/2017 237,120
500,000 JACKSON & WILLIAMSON COUNTIES IL COMMUNITY HIGH SCHOOL DISTRICT NO.165
(PROPERTY TAX REVENUE LOC) 6.25 12/01/2015 588,015
9,700,000 MC HENRY & KANE COUNTIES IL COMMUNITY SCHOOL DISTRICT #158 CAPITAL APPRECIATION
BOND FGIC INSURED 5.09^ 01/01/2021 4,126,089
2,760,000 REGIONAL TRANSPORTATION AUTHORITY IL (SALES TAX REVENUE LOC) 5.75 06/01/2016 3,255,668
7,350,000 REGIONAL TRANSPORTATION AUTHORITY IL SERIES D (SALES TAX REVENUE LOC) 7.75 06/01/2019 10,214,883
1,000,000 ROCKFORD IL FAUST LANDMARK APARTMENTS PROJECT SERIES A (HOUSING REVENUE LOC) 6.75 01/01/2018 1,080,120
3,000,000 WINNEBAGO COUNTY IL SERIES E (PROPERTY TAX REVENUE LOC) 5.00 12/30/2018 3,188,880
42,920,427
------------
INDIANA - 1.21%
1,400,000 EVANSVILLE-VANDERBURGH COUNTY IN BUILDING AUTHORITY EXCISE INCOME TAX 5.00 08/01/2012 1,564,066
2,515,000 INDIANA HEALTH FACILITY FINANCING AUTHORITY ASCENSION HEALTH SERIES F
(HEALTHCARE FACILITIES REVENUE LOC) 5.50 11/15/2018 2,723,720
25,000 INDIANA STATE TOLL FINANCE AUTHORITY (LEASE REVENUE LOC) 6.00 07/01/2013 25,615
290,000 INDIANAPOLIS LOCAL PUBLIC IMPROVEMENTS BOARD BANK SERIES B (OTHER REVENUE LOC) 6.00 01/10/2020 347,884
4,661,285
------------
IOWA - 0.10%
370,000 IOWA FINANCE AUTHORITY SERIES F (HOUSING REVENUE LOC) 5.70 01/01/2027 384,733
------------
KANSAS - 1.17%
1,845,000 SEDGWICK & SHAWNEE COUNTIES KS SERIES A2 MORTGAGE BACKED SECURITIES
(HOUSING REVENUE LOC) 6.70 06/01/2029 1,918,818
2,440,000 SEDGWICK & SHAWNEE COUNTIES MORTGAGE BACKED SECURITIES PROGRAM SEREIS B-4
(HOUSING REVENUE LOC) 4.00 12/01/2034 2,592,012
4,510,830
------------
LOUISIANA - 1.35%
2,000,000 JEFFERSON PARISH HOME MORTGAGE AUTHORITY LA SERIES A (HOUSING REVENUE LOC) 5.13 06/01/2026 2,153,800
3,070,000 LOUISIANA LOCAL GOVERNMENT ENVIRONMENTAL FACILITIES & COMMUNITY SERIES A
DEVELOPMENT AUTHORITY- HSG-BELLEMONT APARTMENTS PJS (HOUSING REVENUE LOC) 6.00 09/01/2022 3,042,493
15,000 LOUISIANA PUBLIC FACILITIES AUTHORITY LA OPPORTUNITY LOAN SERIES A STUDENT LOAN
(HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 6.85 01/01/2009 15,000
5,211,293
------------
MASSACHUSETTS - 1.03%
2,500,000 MASSACHUSETTS STATE COLLEGE BUILDING AUTHORITY SERIES A
(COLLEGE AND UNIVERSITY REVENUE LOC) 7.50 05/01/2014 3,300,450
200,000 MASSACHUSETTS STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY SERIES B
MELROSE-WAKEFIELD HOSPITAL PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.88 07/01/2018 208,244
53
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MASSACHUSETTS (continued)
$ 400,000 MASSACHUSETTS STATE WATER POLLUTION ABATEMENT MWRA PROGRAM SERIES A
(WATER REVENUE LOC) 6.00% 08/01/2023 $ 456,900
3,965,594
------------
MICHIGAN - 3.10%
1,760,000 DETROIT MICHIGAN SERIES B (WATER REVENUE LOC) 5.25 07/01/2017 1,954,498
2,000,000 MICHIGAN STATE BUILDING AUTHORITY REVENUE FACILITIES PROGRAM SERIES II
(LEASE REVENUE LOC) 5.00 10/15/2022 2,097,720
3,000,000 MICHIGAN STATE HOSPITAL FINANCING AUTHORITY REVENUE OAKWOOD OBLIGATED GROUP
(HOSPITAL REVENUE LOC) 5.50 11/01/2017 3,127,020
1,160,000 MICHIGAN STRATEGIC FUND UTD WASTE SYSTEMS PROJECT
(INDUSTRIAL DEVELOPMENT REVENUE LOC) 5.20 04/01/2010 1,222,779
2,760,000 WAYLAND UNION SCHOOL DISTRICT MI (PROPERTY TAX REVENUE LOC) 8.00 05/01/2010 3,562,249
11,964,266
------------
MINNESOTA - 0.80%
500,000 AUSTIN MN HOUSING & REDEVELOPMENT AUTHORITY SERIES A COURTYARD RESIDENCE PROJECT
(HOUSING REVENUE LOC) 7.25 01/01/2032 503,615
2,500,000 MINNESOTA STATE IRON RANGE RESOURCES & REHABILITATION GIANTS RIDGE RECREATIONAL AREA
(RECREATIONAL FACILITIES REVENUE LOC) 7.50 11/01/2025 2,597,650
3,101,265
------------
NEBRASKA - 0.04%
150,000 LINCOLN-LANCASTER COUNTY NE PUBLIC BUILDING COMMISSION TAX SUPPORTED LEASE RENTAL
(LEASE REVENUE LOC) 6.00 10/15/2026 166,807
------------
NEVADA - 0.59%
2,000,000 CLARK COUNTY NV ECONOMIC DEVELOPMENT REVENUE ALEXANDER DAWSON SCHOOL NV PROJECT
(GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.38 05/15/2033 2,006,440
275,000 NEVADA HOUSING DIVISION SARATOGA PALMS MULTI UNIT HOUSING (HOUSING REVENUE LOC) 6.25 10/01/2016 280,296
2,286,736
------------
NEW HAMPSHIRE - 0.62%
5,110,000 MANCHESTER NH HOUSING & REDEVELOPMENT AUTHORITY REVENUE CAPITAL
APPRECIATION-SERIES B (RECREATIONAL FACILITIES REVENUE LOC) 5.44^ 01/01/2018 2,410,336
------------
NEW JERSEY - 3.27%
4,000,000 NEW JERSEY HEALTH CARE FACILITIES AUTHORITY RARITAN BAY MEDICAL CENTER
(HEALTHCARE FACILITIES REVENUE LOC) 7.25 07/01/2027 4,109,720
4,000,000 NEW JERSEY STATE TRANSPORTATION AUTHORITY SERIES-C (TRANSPORTATION REVENUE LOC) 5.50 06/15/2019 4,455,120
3,500,000 NEW JERSEY TRANSPORTATION TRUST FUND AUTHORITY SERIES A TRANSPORTATION SYSTEMS
(TRANSPORTATION REVENUE LOC) 5.50 12/15/2016 4,061,400
12,626,240
------------
NEW MEXICO - 2.36%
3,040,000 BERNALILLO COUNTY NM (OTHER REVENUE LOC) 5.20 04/01/2021 3,378,504
1,475,000 BERNALILLO COUNTY NM (OTHER REVENUE LOC) 5.25 04/01/2027 1,612,249
375,000 CARLSBAD HOUSING CORPORATION NM HOUSING COLONIAL HILLCREST (HOUSING REVENUE LOC) 7.38 08/15/2027 354,026
3,365,000 NEW MEXICO EDUCATIONAL ASSISTANCE FOUNDATION EDUCATIONAL LOAN SERIES B-1
(HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 5.90 09/01/2031 3,421,902
54
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
NEW MEXICO (continued)
$ 430,000 SOUTHEASTERN NM AFFORDABLE HOUSING CORPORATION CASA HERMOSA APARTMENTS
(HOUSING REVENUE LOC) 7.25% 12/01/2027 $ 368,016
9,134,697
------------
NEW YORK - 3.01%
10,000,000 METROPOLITAN TRANSPORTATION AUTHORITY NY REVENUE SERIES G-1
(TRANSPORTATION REVENUE LOC)+/- 1.18 11/01/2026 10,000,000
1,000,000 NEW YORK STATE DORMITORY AUTHORITY NURSING HOME MENORAH CAMPUS PROJECT FHA
INSURED (HEALTHCARE FACILITIES REVENUE LOC) 6.10 02/01/2037 1,116,490
500,000 UNITED NATIONS DEVELOPMENT CORPORATION NY SENIOR LIEN SERIES B
(OTHER REVENUE LOC) 5.60 07/01/2026 500,375
11,616,865
------------
NORTH CAROLINA - 1.61%
1,785,000 CHARLOTTE NC CERTIFICATIONS PARTNERSHIP TRANSIT PROJECTS SERIES H 5.00 06/01/2016 1,938,456
4,000,000 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SERIES B (ELECTRIC REVENUE LOC) 5.70 01/01/2017 4,262,000
6,200,456
------------
NORTH DAKOTA - 0.09%
145,000 NORTH DAKOTA STATE HOUSING FINANCE AGENCY SERIES C HOUSING FINANCE HOME MORTGAGE
(HOUSING REVENUE LOC) 5.95 07/01/2017 152,405
190,000 NORTH DAKOTA STATE HOUSING FINANCE AGENCY SERIES C HOUSING FINANCE HOME MORTGAGE
(HOUSING REVENUE LOC) 6.10 07/01/2028 197,758
350,163
------------
OHIO - 0.47%
1,000,000 ERIE COUNTY FRANCISCAN SERVICES CORPORATION PROVIDENCE HOSPITAL INCORPORATED
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 01/01/2004 1,020,000
250,000 JOHNSTOWN OHIO MORTGAGE (SEWER REVENUE LOC) 6.00 12/01/2017 264,680
500,000 OAK HILLS OH LOCAL SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE LOC) 5.70 12/01/2025 549,915
1,834,595
------------
OKLAHOMA - 0.50%
1,655,000 OKLAHOMA STATE INDUSTRIES AUTHORITY HEALTH SYSTEM INTEGRIS BAPTIST
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 08/15/2010 1,921,141
------------
OREGON - 6.64%
250,000 CHEMEKETA COMMUNITY COLLEGE DISTRICT OR (LEASE REVENUE LOC) 6.50 07/01/2007 268,162
1,000,000 CHEMEKETA COMMUNITY COLLEGE DISTRICT OR SERIES B (PROPERTY TAX REVENUE LOC) 5.60 06/01/2014 1,103,050
1,000,000 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY LEGACY HEALTH SYSTEM
(HEALTHCARE FACILITIES REVENUE LOC) 5.25 02/15/2017 1,063,060
425,000 CLACKAMAS COUNTY HOSPITAL FACILITY AUTHORITY ODD FELLOW HOME SERIES A
(HEALTHCARE FACILITIES REVENUE LOC) 5.88 09/15/2021 399,933
1,500,000 KLAMATH FALLS OR SENIOR LIEN KLAMATH COGEN (ELECTRIC REVENUE LOC) 5.88 01/01/2016 1,469,085
8,600,000 KLAMATH FALLS OR SENIOR LIEN KLAMATH COGEN (ELECTRIC REVENUE LOC) 6.00 01/01/2025 8,329,014
500,000 LANE COUNTY OR SCHOOL DISTRICT NO.52 BETHEL (PROPERTY TAX REVENUE LOC) 5.63 06/15/2010 581,410
1,500,000 OREGON ST HEALTH HOUSING EDUCATIONAL & CULTURAL FACILITIES AUTH SERIES A ASPEN
FOUNDATION II (HEALTHCARE FACILITIES REVENUE LOC) 6.13 04/15/2029 1,258,665
1,250,000 OREGON ST HEALTH HOUSING EDUCATIONAL & CULTURAL FACILITIES AUTH SERIES A LINFELD
COLLEGE PROJECT (COLLEGE AND UNIVERSITY REVENUE LOC) 6.50 10/01/2015 1,372,662
175,000 OREGON STATE (PROPERTY TAX REVENUE LOC) 9.00 10/01/2005 197,481
55
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
OREGON (continued)
$ 1,000,000 OREGON STATE DEPARTMENT OF ADMINISTRATIVE SERVICES SERIES A (LEASE REVENUE LOC) 6.25% 05/01/2010 $ 1,206,250
1,750,000 OREGON STATE HEALTH HOUSING EDUCATIONAL & CULTURAL FACILITIES AUTH SERIES A
GMNA MORTGAGE BACKED SECURITIES (HEALTHCARE FACILITIES REVENUE LOC)+/- 6.85 06/20/2042 1,916,338
3,650,000 OREGON STATE HEALTH HOUSING EDUCATIONAL & CULTURAL FACILITIES AUTHORITY
(LEASE REVENUE LOC)^^ 5.25 10/01/2016 1,268,375
1,790,000 OREGON STATE HOUSING & COMMUNITY SERVICES DEPARTMENT SERIES M SINGLE FAMILY
MORTGAGE PROGRAM (HOUSING REVENUE LOC) 6.20 07/01/2028 1,882,346
1,000,000 OREGON STATE STATE BOARD HIGHER EDUCATION SERIES D (PROPERTY TAX REVENUE LOC) 5.75 08/01/2029 1,112,190
1,000,000 PORTLAND OR OREGON CONVENTION CENTER PROJECT SERIES A (TAX INCREMENTAL REVENUE LOC) 5.75 06/15/2016 1,144,400
489,000 PORTLAND OREGON SERIES A (OTHER REVENUE LOC) 4.88 06/01/2018 504,751
550,000 WESTERN LANE OR HOSPITAL DISTRICT HOSPITAL FACILITY AUTHORITY SISTERS OF ST JOSEPH
PEACE PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 5.63 08/01/2007 574,745
25,651,917
------------
PENNSYLVANIA - 3.08%
1,965,000 CARBON COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PANTHER CREEK PARTNERS
(OTHER REVENUE LOC) 6.65 05/01/2010 2,134,874
500,000 DAUPHIN COUNTY GENERAL AUTHORITY OFFICE & PARKING FORUM PLACE SERIES A
(PARKING FACILITIES REVENUE LOC) 6.00 01/15/2025 215,000
1,070,000 PENNSYLVANIA HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SERIES 59A
(HOUSING REVENUE LOC) 5.80 10/01/2029 1,110,382
5,000,000 PHILADELPHIA PA HOSPITALS & HIGHER EDUCATION FACILITIES AUTHORITY JEANES
HEALTH SYSTEM PROJECT (RECREATIONAL FACILITIES REVENUE LOC) 6.85 07/01/2022 5,021,150
3,000,000 SAYRE PA HEALTH CARE FACILITIES AUTHORITY GUTHRIE HEALTH PROJECT SERIES B
(HEALTHCARE FACILITIES REVENUE LOC)+/- 1.00 12/01/2031 3,407,880
11,889,286
------------
PUERTO RICO - 0.33%
390,000 CHILDRENS TRUST FUND PR (SPECIAL TAX REVENUE LOC) 5.75 07/01/2010 436,379
300,000 CHILDRENS TRUST FUND PUERTO RICO TOBACCO SETTLEMENT (OTHER REVENUE LOC) 6.00 07/01/2010 356,691
20,000 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY (SEWER REVENUE LOC) 10.25 07/01/2009 24,671
200,000 PUERTO RICO HOUSING FINANCE CORPORATION MULTI FAMILY MORTGAGE SERIES A-1
(HOUSING REVENUE LOC) 7.50 04/01/2022 208,250
250,000 PUERTO RICO PUBLIC FINANCE CORPORATION SERIES A COMMONWEALTH APPROPRIATION
(OTHER REVENUE LOC) 5.00 08/01/2021 263,695
1,289,686
------------
RHODE ISLAND - 0.26%
1,000,000 RHODE ISLAND HOUSING & MORTGAGE FINANCE CORPORATION SERIES 23 HOMEOWNERSHIP
PROJECT (HOUSING REVENUE LOC) 5.95 04/01/2029 1,000,000
------------
SOUTH CAROLINA - 1.80%
8,800,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE LOC) 14.50^ 01/01/2017 1,426,128
9,100,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE LOC) 14.50^ 01/01/2018 1,282,099
9,400,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE LOC) 14.50^ 01/01/2019 1,151,312
500,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE LOC) 14.00^ 01/01/2031 12,950
56
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
SOUTH CAROLINA (continued)
$ 2,000,000 LEXINGTON COUNTY SC SCHOOL DISTRICT #002 BROOKLAND-CAYCE SCHOOL DISTRICT
FSA INSURED 4.60% 03/01/2023 $ 2,002,860
1,000,000 UNIVERSITY OF SOUTH CAROLINA (COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 06/01/2026 1,080,730
6,956,079
------------
SOUTH DAKOTA - 1.01%
3,500,000 SOUTH DAKOTA HEALTH & EDUCATIONAL FACILITIES AUTHORITY HURON REGIONAL MEDICAL CENTER
(HEALTHCARE FACILITIES REVENUE LOC) 7.30 04/01/2016 3,893,505
------------
TENNESSEE - 0.57%
2,000,000 SHELBY COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITY BOARD METHODIST HEALTHCARE
(HEALTHCARE FACILITIES REVENUE LOC) 6.50 09/01/2021 2,202,820
------------
TEXAS - 12.37%
1,000,000 ALIEF INDEPENDENT SCHOOL DISTRICT TX (PROPERTY TAX REVENUE LOC) 4.75 02/15/2019 1,026,660
1,215,000 ARLINGTON TEXAS REF & IMPT (OTHER REVENUE LOC) 5.00 08/15/2023 1,261,960
2,250,000 AUSTIN TEXAS CONVENTION ENTERPRISES INCORPORATED SECOND TIER SERIES B
(OTHER REVENUE LOC) 5.75 01/01/2032 2,381,287
500,000 BEAUMONT HOUSING CORPORATION PARK SHADOWS PROJECT SERIES A (HOUSING REVENUE LOC) 6.45 06/15/2022 500,585
325,000 CARROLL INDEPENDENT SCHOOL DISTRICT TX (PROPERTY TAX REVENUE LOC) 6.75 08/15/2020 419,308
390,000 CORPUS CHRISTI HOUSING FINANCE CORPORATION TX SERIES A (HOUSING REVENUE LOC) 7.70 07/01/2011 394,844
1,000,000 DALLAS INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 5.00 02/15/2018 1,065,870
2,395,000 DE SOTO HOUSING FINANCE CORPORATION WINDSOR FOUNDATION PROJECT SERIES A
(HOUSING REVENUE LOC) 7.00 02/01/2025 2,566,817
1,000,000 DENTON TEXAS IMPROVEMENTS (UTILITIES REVENUE LOC) 5.13 12/01/2018 1,076,370
4,000,000 EL PASO HOUSING FINANCE CORPORATION TX SINGLE FAMILY SERIES A-3
(HOUSING REVENUE LOC)+/- 6.18 04/01/2033 4,152,320
95,000 GALVESTON PROPERTY FINANCE AUTHORITY TX SERIES A (HOUSING REVENUE LOC) 8.50 09/01/2011 96,234
3,160,000 GALVESTON TX CAPITAL APPRECIATION CERTIFICATES OBLIGATION SERIES B AMBAC INSURED 4.94^ 02/01/2019 1,513,640
3,160,000 GALVESTON TX CAPITAL APPRECIATION CERTIFICATES OBLIGATION SERIES B AMBAC INSURED 5.03^ 02/01/2020 1,421,305
1,300,000 GRAPE CREEK-PULLIAM INDEPENDENT SCHOOL DISTRICT TX (LEASE REVENUE LOC) 7.25 05/15/2006 1,491,360
1,100,000 GULF COAST WASTE DISPOSAL AUTHORITY TX EXXON PROJECT (INDUSTRIAL DEVELOPMENT
REVENUE LOC)+/- 1.14 10/01/2024 1,100,000
500,000 HARRIS INDUSTRIAL DEVELOPMENT CORPORATION TX GATX TERMINALS CORPORATION
(AIRPORT REVENUE LOC) 6.95 02/01/2022 513,600
130,000 HOUSTON HOUSING FINANCE CORPORATION SERIES A-1 (HOUSING REVENUE LOC) 8.00 06/01/2014 130,512
85,000 HOUSTON HOUSING FINANCE CORPORATION SERIES B-1 (HOUSING REVENUE LOC) 8.00 06/01/2014 85,352
1,000,000 LA PORTE TX INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 4.25 02/15/2019 994,440
1,170,000 LUBBOCK TX HOUSING FINANCE CORPORATION LAS COLONAS QUAIL CREEK SERIES A
(HOUSING REVENUE LOC) 6.00 07/01/2022 1,164,829
1,530,000 LUBBOCK TX HOUSING FINANCE CORPORATION LAS COLONAS QUAIL CREEK SERIES A
(HOUSING REVENUE LOC) 6.00 07/01/2025 1,513,614
1,425,000 LUFKIN TX HEALTH FACILITY DEVELOPMENT CORPORATION HEALTH SYSTEM REVENUE MEMORIAL
HEALTH SYSTEM OF EAST TEXAS (HEALTH FACILITIES FINANCING AUTHORITY REVENUE LOC) 5.00 02/15/2008 1,415,823
1,960,000 PANHANDLE TX REGULATED HOUSING FINANCE SUB-SERIES C 8.13 03/01/2031 1,996,436
4,180,000 SAN ANTONIO HIGHER EDUCATION AUTHORITY UNIVERSITY OF TEXAS AT SAN ANTONIO PHASE 1
PROJECT (COLLEGE AND UNIVERSITY REVENUE LOC) 7.13 11/01/2015 4,433,684
200,000 SOCORRO TX INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 5.75 02/15/2021 213,896
1,075,000 SOUTH SAN ANTONIO TX INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE LOC) 5.00 08/15/2018 1,146,230
2,000,000 TARRANT REGIONAL WATER DISTRICT TX IMPROVEMENTS (WATER REVENUE LOC) 5.38 03/01/2014 2,268,300
160,000 TEXARKANA TX HEALTH FACILITIES DEVELOPMENT CORPORATION SERIES B WADLEY REGIONAL
MEDICAL CENTER (HEALTHCARE FACILITIES REVENUE LOC) 6.00 10/01/2017 189,654
57
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
TEXAS (continued)
$ 1,500,000 TEXAS STATE (GENERAL OBLIGATION - STATES, TERRITORIES LOC) 5.00% 08/01/2015 $ 1,651,005
2,455,000 TEXAS STATE STUDENT HOUSING AUTHORITY SERIES B JUNIOR LIEN STUDENT HOUSING
(COLLEGE AND UNIVERSITY REVENUE LOC) 6.75 01/01/2033 2,397,087
3,250,000 TEXAS STATE VETERANS HOUSING ASSISTANCE PROGRAM FD II SERIES A (HOUSING
REVENUE LOC) 5.65 12/01/2017 3,438,338
4,780,000 TRAVIS COUNTY TX HOUSING FINANCE AUTHORITY LAKEVIEW APARTMENT PROJ SERIES A
(HOUSING REVENUE LOC) 6.25 07/01/2027 3,749,623
47,770,983
------------
UTAH - 4.22%
6,000,000 INTERMOUNTAIN POWER AGENCY UT POWER SUPPLY REVENUE REFERENCE SERIES A
(ELECTRIC REVENUE LOC) 5.00 07/01/2018 6,421,380
500,000 PROVO CITY UT HOUSING AUTHORITY LOOKOUT POINTE APARTMENTS PROJECT COLLATERALIZED
BY GNMA (HOUSING REVENUE LOC) 5.80 07/20/2022 522,620
3,270,000 SALT LAKE COUNTY UT HOUSING AUTHORITY BRIDGESIDE PROJECT FHA INSURED
(HOUSING REVENUE LOC) 6.38 11/01/2033 3,403,056
1,860,000 SALT LAKE COUNTY UT WESTMINSTER COLLEGE PROJECT (COLLEGE AND UNIVERSITY
REVENUE LOC) 5.75 10/01/2027 1,884,440
5,000 UTAH HOUSING FINANCE AGENCY SINGLE FAMILY MORTGAGE SENIOR ISSUE SERIES D-2
(HOUSING REVENUE LOC) 6.45 01/01/2011 5,090
2,500,000 UTAH STATE BUILDING OWNERSHIP AUTHORITY SERIES B STATE FACILITIES MASTER LEASE
PROGRAM (LEASE REVENUE LOC) 5.25 05/15/2024 2,629,775
250,000 UTAH STATE BUILDING OWNERSHIP AUTHORITY SERIES C STATE FACILITIES MASTER LEASE
PROGRAM (LEASE REVENUE LOC) 5.50 05/15/2019 287,753
1,000,000 WEBER MUNICIPAL BUILDING AUTHORITY UTAH (LEASE REVENUE LOC) 5.75 12/15/2019 1,128,270
16,282,384
------------
VERMONT - 0.24%
275,000 VERMONT HOUSING FINANCE AGENCY VT HOUSING SERIES 9 (HOUSING REVENUE LOC) 6.00 05/01/2037 285,428
600,000 VERMONT STATE STUDENT ASSISTANCE FINANCING PROGRAM SERIES B
(HIGHER EDUCATION FACILITIES AUTHORITY REVENUE LOC) 6.70 12/15/2012 625,428
910,856
------------
VIRGINIA - 1.01%
5,775,000 POCAHONTAS PARKWAY ASSOCIATION VA CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE LOC) 8.00^ 08/15/2012 2,937,685
1,000,000 POCAHONTAS PARKWAY ASSOCIATION VA SERIES A (TOLL ROAD REVENUE LOC) 5.25 08/15/2008 953,190
3,890,875
------------
WASHINGTON - 4.88%
2,125,000 CLARK COUNTY SCHOOL DISTRICT NO.101 LA CENTER WA (PROPERTY TAX REVENUE LOC) 5.00 12/01/2015 2,319,629
500,000 CLARK COUNTY SCHOOL DISTRICT NO.98 HOCKINSON WA (PROPERTY TAX REVENUE LOC) 6.15 12/01/2015 588,040
2,000,000 CLARK COUNTY WASHINGTON SCHOOL DISTRICT #114 EVERGREEN
(GENERAL OBLIGATION - SCHOOL DISTRICTS LOC) 5.38 12/01/2014 2,248,020
1,455,000 CONSERVATION & RENEWABLE ENERGY SYSTEMS WA CONSERVATION PROJECT
(ELECTRIC REVENUE LOC) 5.00 10/01/2014 1,587,681
110,000 KING COUNTY WA SEWER (SEWER REVENUE LOC) 6.13 01/01/2033 117,635
1,748,000 KITSAP COUNTY WA CONSOLIDATED HOUSING AUTHORITY LOW INCOME HOUSING MARTHA GNMA
(HEALTHCARE FACILITIES REVENUE LOC) 7.10 08/20/2016 2,106,043
6,205,000 PORT LONGVIEW WA SERIES A (HARBOR DEPARTMENT REVENUE LOC) 5.00 12/01/2014 6,596,722
1,000,000 SEATTLE WA HOUSING AUTHORITY KIN ON PROJECT COLLATERALIZED BY GNMA
(HEALTHCARE FACILITIES REVENUE LOC) 7.40 11/20/2036 1,157,350
58
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
WASHINGTON (continued)
$ 500,000 SEATTLE WA SERIES B (WATER REVENUE LOC) 6.00% 07/01/2029 $ 567,690
1,400,000 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY KADLEC MEDICAL CENTER
(HEALTHCARE FACILITIES REVENUE LOC) 6.00 12/01/2030 1,552,516
18,841,326
------------
WISCONSIN - 1.11%
550,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES A
(HOUSING REVENUE LOC) 6.00 09/01/2015 577,616
1,000,000 WISCONSIN STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY WHEATON FRANCISCAN
SERVICES PROJECT (HEALTHCARE FACILITIES REVENUE LOC) 6.13 11/15/2015 1,090,250
2,345,000 WISCONSIN STATE SERIES A (OTHER REVENUE LOC) 5.00 07/01/2015 2,575,490
30,000 WISCONSIN STATE SERIES D (SPECIAL TAX REVENUE LOC) 5.80 05/01/2020 30,994
4,274,350
------------
WYOMING - 0.30%
500,000 JACKSON WY NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP SERIES B LOWER VALLEY
POWER & LIGHT PROJECT (FUEL SALES TAX REVENUE LOC) 5.88 05/01/2026 520,890
600,000 TETON COUNTY WY HOSPITAL DISTRICT REVENUE IMPROVEMENTS ACA CBI INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.80 12/01/2017 637,494
1,158,384
------------
TOTAL MUNICIPAL BONDS (COST $356,382,210) 366,122,095
------------
SHORT-TERM INVESTMENTS - 1.32%
SHARES
MUTUAL FUND - 1.32%
5,089,000 WELLS FARGO NATIONAL TAX FREE MONEY MARKET TRUST~ 5,089,000
TOTAL SHORT-TERM INVESTMENTS (COST $5,089,000) 5,089,000
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $376,035,014)* 100.82% $389,408,453
OTHER ASSETS AND LIABILITIES, NET (0.82) (3,152,620)
------ ------------
TOTAL NET ASSETS 100.00% $386,255,833
------ ------------
<FN>
+/- VARIABLE RATE SECURITIES.
! SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER RULE 144A OR SECURITIES OFFERED PERSUANT TO SECTION 4
(2) OF THE SECURITIES ACT OF 1933, AS AMENDED.
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
^^ THIS SECURITY IS CURRENTLY IN DEFAULT WITH REGARDS TO SCHEDULED INTEREST OR PRINCIPAL PAYMENTS.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
59
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
MUNICIPAL BONDS - 97.60%
COLORADO - 1.02%
$ 600,000 COLORADO HEALTH FACILITIES AUTHORITY STEAMBOAT SPRINGS HEALTH PROJECT
(HEALTHCARE FACILITIES REVENUE LOC) 5.70% 09/15/2023 $ 594,336
------------
MINNESOTA - 0.91%
500,000 MINNESOTA STATE IRON RANGE RESOURCES & REHABILITATION GIANTS RIDGE RECREATIONAL AREA
(RECREATIONAL FACILITIES REVENUE LOC) 7.25 11/01/2016 526,900
------------
NEBRASKA - 92.60%
500,000 CITY OF LINCOLN NE (ELECTRIC REVENUE LOC) 5.00 09/01/2015 545,855
1,500,000 CITY OF LINCOLN NE (ELECTRIC REVENUE LOC) 5.00 09/01/2018 1,596,420
1,100,000 CITY OF LINCOLN NE (WATER REVENUE LOC) 5.00 08/15/2017 1,185,327
1,000,000 CITY OF LINCOLN NE MBIA INSURED (SEWER REVENUE LOC) 5.00 06/15/2017 1,083,810
1,250,000 CITY OF LINCOLN NE SERIES A (PARKING FACILITIES REVENUE LOC) 5.38 08/15/2014 1,399,800
1,000,000 CITY OF LINCOLN NE TAX SUPPORTED ANTELOPE VALLEY PROJECT (OTHER REVENUE LOC) 5.00 09/15/2016 1,082,020
500,000 CITY OF OMAHA NE (PROPERTY TAX REVENUE LOC) 5.25 12/01/2012 554,430
1,000,000 CITY OF OMAHA NE (PROPERTY TAX REVENUE LOC) 5.00 11/01/2014 1,112,610
1,000,000 CITY OF OMAHA NE DOWNTOWN NORTHEAST REDEVELOPMENT PROJECT
(SPECIAL TAX REVENUE LOC) 6.00 11/01/2014 1,096,980
865,000 CITY OF OMAHA NE RIVERFRONT REDEVELOPMENT PROJECT SERIES A (SALES TAX REVENUE LOC) 5.50 02/01/2017 971,585
415,000 CITY OF OMAHA NE SERIES A (PROPERTY TAX REVENUE LOC) 6.50 12/01/2014 523,261
2,000,000 DODGE COUNTY NE SCHOOL DISTRICT #1 FSA INSURED (PROPERTY TAX REVENUE LOC) 5.50 12/15/2020 2,220,280
1,000,000 DOUGLAS COUNTY NE OMAHAS HENRY DOORLY ZOO PROJECT
(RECREATIONAL FACILITIES REVENUE LOC) 5.88 09/01/2014 1,096,290
1,500,000 DOUGLAS COUNTY NE SCHOOL DISTRICT #1 SERIES B (PROPERTY TAX REVENUE LOC) 5.00 12/15/2018 1,601,220
500,000 GRAND ISLAND NE PREREFUNDED 10/01/04 @ 101 (SEWER REVENUE LOC) 5.60 04/01/2006 521,920
500,000 GRAND ISLAND NE PREREFUNDED 10/01/04 @ 101 (SEWER REVENUE LOC) 5.75 04/01/2007 522,480
1,000,000 GRAND ISLAND NE SYSTEM MBIA INSURED (ELECTRIC REVENUE LOC) 5.13 08/15/2016 1,091,910
1,000,000 LANCASTER COUNTY NE HOSPITAL AUTHORITY #1 BRYAN MEMORIAL HOSPITAL PROJECT SERIES A
MBIA INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.10 06/01/2010 1,096,930
2,520,000 LANCASTER COUNTY NE HOSPITAL AUTHORITY #1 BRYANLGH MEDICAL CENTER PROJECT SERIES A
AMBAC INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.50 06/01/2020 2,733,671
1,000,000 LANCASTER COUNTY NE SCHOOL DISTRICT #1 LINCOLN PUBLIC SCHOOLS
(PROPERTY TAX REVENUE LOC) 5.25 07/15/2019 1,086,680
1,750,000 LANCASTER COUNTY SCHOOL DISTRICT NO.1 NE LINCOLN PUBLIC SCHOOLS
(PROPERTY TAX REVENUE LOC) 5.25 01/15/2022 1,872,903
745,000 LINCOLN-LANCASTER COUNTY NE PUBLIC BUILDING COMMISSION TAX SUPPORTED LEASE RENTAL
GOC INSURED (LEASE REVENUE LOC) 5.80 10/15/2018 830,332
500,000 LINCOLN-LANCASTER COUNTY NE PUBLIC BUILDING COMMISSION TAX SUPPORTED LEASE RENTAL
REVENUE GOC INSURED (LEASE REVENUE LOC) 5.25 10/15/2008 553,340
1,000,000 MADISON COUNTY NE HOSPITAL AUTHORITY #1 FAITH REGIONAL HEALTH SERVICES PROJECT
RADIAN INSURED (HEALTHCARE FACILITIES REVENUE LOC) 5.50 07/01/2021 1,067,260
750,000 MUNICIPAL ENERGY AGENCY OF NEBRASKA POWER SUPPLY SYSTEMS REVENUE SERIES A
(POWER REVENUE LOC) 5.25 04/01/2019 820,628
575,000 NEBRASKA EDUCATIONAL FINANCE AUTHORITY RADIAN INSURED
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.00 04/01/2016 613,364
500,000 NEBRASKA EDUCATIONAL TELECOMMUNICATIONS COMMISSION DTV PROJECT
(LEASE REVENUE LOC) 6.00 02/01/2007 556,855
1,250,000 NEBRASKA EDUCATIONAL TELECOMMUNICATIONS COMMISSION DTV PROJECT
(LEASE REVENUE LOC) 6.00 02/01/2010 1,439,138
60
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
NEBRASKA (continued)
$ 1,000,000 NEBRASKA INVESTMENT FINANCE AUTHORITY CHILDRENS HEALTHCARE SERVICES AMBAC INSURED
(HEALTHCARE FACILITIES REVENUE LOC) 5.00% 08/15/2011 $ 1,087,900
1,050,000 NEBRASKA INVESTMENT FINANCE AUTHORITY SERIES C (OTHER REVENUE LOC) 6.30 09/01/2020 1,122,387
475,000 NEBRASKA INVESTMENT FINANCE AUTHORITY SERIES C GNMA FNMA FHLMC INSURED
(HOUSING REVENUE LOC) 5.65 03/01/2028 488,390
835,000 NEBRASKA INVESTMENT FINANCE AUTHORITY SERIES E COLLATERALIZED BY GNMA FNMA FHLMC
(HOUSING REVENUE LOC) 5.90 09/01/2024 872,667
1,670,000 NEBRASKA INVESTMENT FINANCE AUTHORITY SERIES E COLLATERALIZED BY GNMA FNMA FHLMC
(HOUSING REVENUE LOC) 5.95 09/01/2031 1,741,960
1,000,000 NEBRASKA PUBLIC POWER DISTRICT SERIES A FSA INSURED (ELECTRIC REVENUE LOC) 5.13 01/01/2019 1,071,030
1,000,000 NEBRASKA PUBLIC POWER DISTRICT SERIES A MBIA INSURED (ELECTRIC REVENUE LOC) 5.25 01/01/2008 1,113,340
100,000 NEBRASKA PUBLIC POWER DISTRICT SERIES A MBIA INSURED (ELECTRIC REVENUE LOC) 5.25 01/01/2009 111,109
1,020,000 NEBRASKA PUBLIC POWER DISTRICT SERIES A MBIA INSURED (ELECTRIC REVENUE LOC) 5.25 01/01/2012 1,135,790
1,000,000 OMAHA NE AIRPORT AUTHORITY FACILITIES FSA INSURED (AIRPORT REVENUE LOC) 5.50 01/01/2012 1,129,840
2,000,000 OMAHA NE AIRPORT AUTHORITY FACILITIES FSA INSURED (AIRPORT REVENUE LOC) 5.50 01/01/2014 2,228,060
500,000 OMAHA NE IMPOUND FACILITIES CORPORATION (LEASE REVENUE LOC) 5.55 08/01/2014 519,660
250,000 OMAHA NE PARKING FACILITIES CORPORATION OMAHA PARK SEVEN PROJECT SERIES A
(LEASE REVENUE LOC) 5.50 05/01/2016 266,675
475,000 OMAHA NE PARKING FACILITIES CORPORATION PARK FOUR & FIVE PROJECTS
(LEASE REVENUE LOC) 5.20 09/15/2009 512,349
500,000 OMAHA NE PARKING FACILITIES CORPORATION PARK FOUR & FIVE PROJECTS
(LEASE REVENUE LOC) 5.70 09/15/2015 541,930
1,000,000 OMAHA NE PUBLIC POWER DISTRICT SERIES A (ELECTRIC REVENUE LOC) 5.40 02/01/2006 1,077,310
500,000 OMAHA NE PUBLIC POWER DISTRICT SERIES B ESCROWED TO MATURITY
(ELECTRIC REVENUE LOC) 5.60 02/01/2012 510,890
2,500,000 OMAHA NE PUBLIC POWER DISTRICT SERIES C (ELECTRIC REVENUE LOC) 5.50 02/01/2014 2,891,725
1,000,000 UNIVERSITY OF NEBRASKA FACILITIES CORPORATION DEFERRED MAINTENANCE PROJECT
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.25 07/15/2011 1,109,180
1,000,000 UNIVERSITY OF NEBRASKA FACILITIES CORPORATION MEMORIAL STADIUM IMPROVEMENT PROJECT
(COLLEGE AND UNIVERSITY REVENUE LOC) 4.95 11/01/2009 1,022,930
700,000 UNIVERSITY OF NEBRASKA FACILITIES CORPORATION UNIVERSITY MEDICAL CENTER PROJECT
PREREFUNDED 07/01/05 @ 100 (COLLEGE AND UNIVERSITY REVENUE LOC) 5.45 07/01/2005 739,039
740,000 UNIVERSITY OF NEBRASKA KEARNEY STUDENT FEES & FACILITIES
(COLLEGE AND UNIVERSITY REVENUE LOC) 5.75 07/01/2020 771,221
800,000 UNIVERSITY OF NEBRASKA LINCOLN PARKING PROJECT (COLLEGE AND UNIVERSITY REVENUE LOC) 5.80 06/01/2020 861,768
53,804,449
------------
NEVADA - 0.13%
70,000 NEVADA HOUSING DIVISION SINGLE FAMILY SERIES A-1 (HOUSING REVENUE LOC) 5.60 10/01/2007 75,141
------------
PUERTO RICO - 2.94%
500,000 PUERTO RICO COMMONWEALTH SERIES C PUBLIC IMPROVEMENT (OTHER REVENUE LOC)+/- 5.00 07/01/2028 552,105
1,000,000 PUERTO RICO MUNICIPAL FINANCE AGENCY SERIES A FSA INSURED
(PROPERTY TAX REVENUE LOC) 5.75 08/01/2011 1,159,420
1,711,525
------------
TOTAL MUNICIPAL BONDS (COST $52,945,057) 56,712,351
------------
61
WELLS FARGO TAX-FREE FUNDS PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA TAX-FREE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 2.17%
MUTUAL FUND - 2.17%
1,263,209 WELLS FARGO NATIONAL TAX FREE MONEY MARKET TRUST~ $ 1,263,209
TOTAL SHORT-TERM INVESTMENTS (COST $1,263,209) 1,263,209
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $54,208,266)* 99.77% $ 57,975,560
OTHER ASSETS AND LIABILITIES, NET 0.23 131,175
------ ------------
TOTAL NET ASSETS 100.00% $ 58,106,735
------ ------------
<FN>
+/- VARIABLE RATE SECURITIES.
~ THIS WELLS FARGO FUND INVESTS CASH BALANCES THAT IT RETAINS FOR LIQUIDITY PURPOSES IN A WELLS FARGO MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR FINANCIAL REPORTING PURPOSES.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO TAX-FREE FUNDS STATEMENTS OF ASSETS AND LIABILITIES -- DECEMBER 31, 2003 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA
LIMITED TERM CALIFORNIA
TAX-FREE TAX-FREE
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ..................................................... $108,821,786 $564,994,565
INVESTMENTS IN AFFILIATES .......................................................... 236,946 4,614,000
------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ................................... 109,058,732 569,608,565
============ ============
CASH ............................................................................... 52,210 51,595
RECEIVABLE FOR FUND SHARES ISSUED .................................................. 500,051 999,200
RECEIVABLE FOR INVESTMENTS SOLD .................................................... 297,969 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................................. 1,472,536 7,642,137
------------ ------------
TOTAL ASSETS ......................................................................... 111,381,498 578,301,497
============ ============
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................................... 16,000 995,738
PAYABLE FOR INVESTMENTS PURCHASED .................................................. 295,320 5,698,119
DIVIDENDS PAYABLE .................................................................. 210,002 2,100,654
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3)............................... 55,864 259,506
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ............................................ 32,230 221,558
ACCRUED EXPENSES AND OTHER LIABILITIES ............................................. 34,322 19,362
TOTAL LIABILITIES .................................................................... 643,738 9,294,937
------------ ------------
TOTAL NET ASSETS ..................................................................... $110,737,760 $569,006,560
============ ============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................................... $108,667,712 $532,359,217
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................................... 379 63
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. (194,061) 535,358
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FORIEGN CURRENCIES ........... 2,263,730 36,111,922
------------ ------------
TOTAL NET ASSETS ..................................................................... $110,737,760 $569,006,560
============ ============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................... $ 81,418,975 $377,237,268
SHARES OUTSTANDING - CLASS A ....................................................... 7,654,652 33,226,889
NET ASSET VALUE PER SHARE - CLASS A ................................................ $ 10.64 $ 11.35
MAXIMUM OFFERING PRICE PER SHARE - CLASS A (1) ..................................... $ 11.14 $ 11.88
NET ASSETS - CLASS B ............................................................... N/A 115,966,530
SHARES OUTSTANDING - CLASS B ....................................................... N/A 10,020,182
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............................. N/A 11.57
NET ASSETS - CLASS C ............................................................... $ 13,129,502 $ 39,868,813
SHARES OUTSTANDING - CLASS C ....................................................... 1,234,748 3,444,450
NET ASSET VALUE PER SHARE - CLASS C ................................................ $ 10.63 $ 11.57
MAXIMUM OFFERING PRICE PER SHARE - CLASS C (2) ..................................... $ 10.63 $ 11.69
NET ASSETS - INSTITUTIONAL CLASS ................................................... $ 16,189,283 $ 35,933,949
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................... 1,546,447 3,159,100
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ................. $ 10.47 $ 11.37
------------ ------------
INVESTMENTS AT COST .................................................................. $106,795,002 $533,496,643
============ ============
STATEMENTS OF ASSETS AND LIABILITIES -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
NATIONAL
COLORADO MINNESOTA LIMITED-TERM
TAX-FREE TAX-FREE TAX-FREE
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ..................................................... $109,452,122 $212,722,302 $163,904,888
INVESTMENTS IN AFFILIATES .......................................................... 5,284,000 6,195,975 2,241,967
------------ ------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ................................... 114,736,122 218,918,277 166,146,855
============ ============ ============
CASH ............................................................................... 50,206 50,001 50,002
RECEIVABLE FOR FUND SHARES ISSUED .................................................. 26,242 655,660 31,000
RECEIVABLE FOR INVESTMENTS SOLD .................................................... 0 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................................. 1,329,007 3,529,306 2,104,007
------------ ------------ ------------
TOTAL ASSETS ......................................................................... 116,141,577 223,153,244 168,331,864
============ ============ ============
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................................... 15,029 15,682 0
PAYABLE FOR INVESTMENTS PURCHASED .................................................. 0 0 0
DIVIDENDS PAYABLE .................................................................. 429,681 796,201 362,007
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3)............................... 37,254 109,386 82,218
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ............................................ 25,351 27,821 2,440
ACCRUED EXPENSES AND OTHER LIABILITIES ............................................. 52,471 29,380 28,116
TOTAL LIABILITIES .................................................................... 559,786 978,470 474,781
------------ ------------ ------------
TOTAL NET ASSETS ..................................................................... $115,581,791 $222,174,774 $167,857,083
============ ============ ============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................................... $109,279,467 $207,740,805 $163,928,264
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................................... 41,542 27,714 (45,882)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. (992,779) (505,268) (631,858)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FORIEGN CURRENCIES ........... 7,253,561 14,911,523 4,606,559
------------ ------------ ------------
TOTAL NET ASSETS ..................................................................... $115,581,791 $222,174,774 $167,857,083
============ ============ ============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................... $ 56,225,492 $ 39,048,738 N/A
SHARES OUTSTANDING - CLASS A ....................................................... 5,131,239 3,488,199 N/A
NET ASSET VALUE PER SHARE - CLASS A ................................................ $ 10.96 $ 11.19 N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS A (1) ..................................... $ 11.48 $ 11.72 N/A
NET ASSETS - CLASS B ............................................................... $ 12,312,802 $ 19,314,935 N/A
SHARES OUTSTANDING - CLASS B ....................................................... 1,122,110 1,725,349 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............................. $ 10.97 $ 11.19 N/A
NET ASSETS - CLASS C ............................................................... N/A N/A N/A
SHARES OUTSTANDING - CLASS C ....................................................... N/A N/A N/A
NET ASSET VALUE PER SHARE - CLASS C ................................................ N/A N/A N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS C (2) ..................................... N/A N/A N/A
NET ASSETS - INSTITUTIONAL CLASS ................................................... $ 47,043,497 $163,811,101 $167,857,083
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................... 4,292,573 14,634,776 15,229,487
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ................. $ 10.96 $ 11.19 $ 11.02
------------ ------------ ------------
INVESTMENTS AT COST .................................................................. $107,482,561 $204,006,754 $161,540,296
============ ============ ============
STATEMENTS OF ASSETS AND LIABILITIES -- DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- -------------------------------------------------------------------------------------------------------------------
NATIONAL NEBRASKA
TAX-FREE TAX-FREE
- -------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ..................................................... $384,319,453 $56,712,351
INVESTMENTS IN AFFILIATES .......................................................... 5,089,000 1,263,209
------------ -----------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ................................... 389,408,453 57,975,560
============ ===========
CASH ............................................................................... 51,202 49,998
RECEIVABLE FOR FUND SHARES ISSUED .................................................. 90,336 0
RECEIVABLE FOR INVESTMENTS SOLD .................................................... 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ............................................. 5,642,526 910,956
------------ -----------
TOTAL ASSETS ......................................................................... 395,192,517 58,936,514
============ ===========
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED ................................................... 303,377 518,823
PAYABLE FOR INVESTMENTS PURCHASED .................................................. 6,771,937 0
DIVIDENDS PAYABLE .................................................................. 1,453,748 197,304
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3)............................... 194,709 38,157
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ............................................ 74,297 2,445
ACCRUED EXPENSES AND OTHER LIABILITIES ............................................. 138,616 73,050
TOTAL LIABILITIES .................................................................... 8,936,684 829,779
------------ -----------
TOTAL NET ASSETS ..................................................................... $386,255,833 $58,106,735
============ ===========
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .................................................................... $382,304,967 $54,292,811
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ......................................... 538,234 854
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. (9,960,807) 45,776
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FORIEGN CURRENCIES ........... 13,373,439 3,767,294
------------ -----------
TOTAL NET ASSETS ..................................................................... $386,255,833 $58,106,735
============ ===========
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................... $109,785,695 N/A
SHARES OUTSTANDING - CLASS A ....................................................... 10,511,831 N/A
NET ASSET VALUE PER SHARE - CLASS A ................................................ $ 10.44 N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS A (1) ..................................... $ 10.93 N/A
NET ASSETS - CLASS B ............................................................... $ 41,010,416 N/A
SHARES OUTSTANDING - CLASS B ....................................................... 3,925,992 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ............................. $ 10.45 N/A
NET ASSETS - CLASS C ............................................................... $ 13,181,330 N/A
SHARES OUTSTANDING - CLASS C ....................................................... 1,262,394 N/A
NET ASSET VALUE PER SHARE - CLASS C ................................................ $ 10.44 N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS C (2) ..................................... $ 10.55 N/A
NET ASSETS - INSTITUTIONAL CLASS ................................................... $222,278,392 $58,106,735
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................... 21,278,737 5,639,796
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ................. $ 10.45 $ 10.30
------------ -----------
INVESTMENTS AT COST .................................................................. $376,035,014 $54,208,266
============ ===========
<FN>
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/95.50 OF NET ASSET VALUE. ON INVESTMENTS OF $50,000 OR MORE, THE
OFFERING PRICE IS REDUCED.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/99.00 OF NET ASSET VALUE, EXCEPT FOR CALIFORNIA LIMITED TAX-FREE
FUND.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64 & 65
WELLS FARGO TAX-FREE FUNDS STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA
LIMITED TERM CALIFORNIA COLORADO
TAX-FREE TAX-FREE TAX-FREE
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ......................................................................... $ 35,024 $ 512,967 $ 101,682
INTEREST .......................................................................... 1,797,913 14,849,674 3,009,299
---------- ----------- ----------
TOTAL INVESTMENT INCOME .............................................................. 1,832,937 15,362,641 3,110,981
---------- ----------- ----------
EXPENSES
ADVISORY FEES ..................................................................... 257,365 1,174,638 235,240
ADMINISTRATION FEES
FUND LEVEL ...................................................................... 32,171 146,830 29,405
CLASS A ......................................................................... 127,524 537,514 78,202
CLASS B ......................................................................... N/A 175,737 18,920
CLASS C ......................................................................... 17,793 59,328 N/A
INSTITUTIONAL CLASS ............................................................. 24,885 35,477 48,247
CUSTODY FEES ...................................................................... 12,868 58,732 11,762
SHAREHOLDER SERVICING FEES ........................................................ 129,748 689,802 86,716
ACCOUNTING FEES ................................................................... 13,804 26,875 13,488
DISTRIBUTION FEES (NOTE 3)
CLASS B ......................................................................... N/A 470,724 50,678
CLASS C ......................................................................... 47,660 158,915 N/A
AUDIT FEES ........................................................................ 7,604 10,136 8,110
LEGAL FEES ........................................................................ 836 6,083 3,041
REGISTRATION FEES ................................................................. 2,119 16,726 2,369
SHAREHOLDER REPORTS ............................................................... 1,014 10,643 1,876
TRUSTEES' FEES .................................................................... 3,230 3,230 3,230
OTHER FEES AND EXPENSES ........................................................... 2,078 7,250 2,855
---------- ----------- ----------
TOTAL EXPENSES ....................................................................... 680,699 3,588,640 594,139
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................................... (117,252) (654,079) (103,969)
NET EXPENSES ...................................................................... 563,447 2,934,561 490,170
---------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ......................................................... 1,269,490 12,428,080 2,620,811
---------- ----------- ----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... (194,061) 1,777,835 29,448
---------- ----------- ----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................................ (194,061) 1,777,835 29,448
---------- ----------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................... (693,756) (8,650,192) (859,072)
---------- ----------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................. (693,756) (8,650,192) (859,072)
---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................... (887,817) (6,872,357) (829,624)
---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 381,673 $ 5,555,723 $1,791,187
---------- ----------- ----------
STATEMENTS OF OPERATIONS -- FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- -----------------------------------------------------------------------------------------------------------------------------------
NATIONAL
MINNESOTA LIMITED TERM NATIONAL NEBRASKA
TAX-FREE TAX-FREE TAX-FREE TAX-FREE
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ............................................................. $ 16,150 $ 13,761 $ 638,316 $ 6,622
INTEREST .............................................................. 5,741,431 2,684,446 10,196,765 1,438,644
----------- ----------- ----------- ----------
TOTAL INVESTMENT INCOME .................................................. 5,757,581 2,698,207 10,835,081 1,445,266
----------- ----------- ----------- ----------
EXPENSES
ADVISORY FEES ......................................................... 461,677 319,851 816,315 155,540
ADMINISTRATION FEES
FUND LEVEL .......................................................... 57,710 39,981 102,039 15,554
CLASS A ............................................................. 55,299 N/A 156,475 N/A
CLASS B ............................................................. 28,629 N/A 62,124 N/A
CLASS C ............................................................. N/A N/A 20,278 N/A
INSTITUTIONAL CLASS ................................................. 170,891 159,926 237,530 62,216
CUSTODY FEES .......................................................... 23,084 15,993 40,816 6,222
SHAREHOLDER SERVICING FEES ............................................ 74,935 0 213,284 0
ACCOUNTING FEES ....................................................... 16,715 14,694 21,769 11,909
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................................. 76,683 N/A 166,405 N/A
CLASS C ............................................................. N/A N/A 54,317 N/A
AUDIT FEES ............................................................ 9,883 8,110 10,136 7,857
LEGAL FEES ............................................................ 4,055 862 4,309 633
REGISTRATION FEES ..................................................... 2,369 4,450 14,959 2,468
SHAREHOLDER REPORTS ................................................... 1,672 1,217 3,403 759
TRUSTEES' FEES ........................................................ 3,230 3,230 3,230 3,230
OTHER FEES AND EXPENSES ............................................... 2,738 2,899 5,896 3,626
----------- ----------- ----------- ----------
TOTAL EXPENSES ........................................................... 989,570 571,213 1,933,285 270,014
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .......................... (145,605) (91,387) (275,005) (11,834)
NET EXPENSES .......................................................... 843,965 479,826 1,658,280 258,180
----------- ----------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ............................................. 4,913,616 2,218,381 9,176,801 1,187,086
----------- ----------- ----------- ----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... 814,265 162,452 727,845 140,651
----------- ----------- ----------- ----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................ 814,265 162,452 727,845 140,651
----------- ----------- ----------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... (2,919,807) (1,101,075) (5,027,363) (622,222)
----------- ----------- ----------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...... (2,919,807) (1,101,075) (5,027,363) (622,222)
----------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ................... (2,105,542) (938,623) (4,299,518) (481,571)
----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... $ 2,808,074 $ 1,279,758 $ 4,877,283 $ 705,515
----------- ----------- ----------- ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66 & 67
WELLS FARGO TAX-FREE FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $150,206,046 $ 82,365,726
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 1,269,490 2,521,263
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ (194,061) 722,015
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (693,756) 1,421,608
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 381,673 4,664,886
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. (907,314) (2,040,598)
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. (79,735) (62,751)
INSTITUTIONAL CLASS .................................................................. (282,005) (417,918)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. (487,692) 0
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. (77,739) 0
INSTITUTIONAL CLASS .................................................................. (117,659) 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... 9,236,922 74,517,970
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ 909,344 1,486,541
COST OF SHARES REDEEMED - CLASS A ...................................................... (27,351,495) (48,368,740)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . (17,205,229) 27,635,771
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS B ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... 4,213,683 12,562,570
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. 111,721 41,682
COST OF SHARES REDEEMED - CLASS C ...................................................... (2,386,741) (1,367,289)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . 1,938,663 11,236,963
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 14,292,106 37,715,504
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 139,501 210,549
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (37,062,856) (11,102,086)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... (22,631,249) 26,823,967
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (39,468,286) 67,840,320
------------ ------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ......................................................................... $110,737,760 $ 150,206,046
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 867,666 6,987,295
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... 85,509 139,515
SHARES REDEEMED - CLASS A .............................................................. (2,568,615) (4,535,645)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (1,615,440) 2,591,165
------------ ------------
SHARES SOLD - CLASS B .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... N/A N/A
SHARES REDEEMED - CLASS B .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... N/A N/A
------------ ------------
SHARES SOLD - CLASS C .................................................................. 396,222 1,176,279
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... 10,508 3,900
SHARES REDEEMED - CLASS C .............................................................. (224,448) (127,714)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... 182,282 1,052,465
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 1,364,300 3,576,433
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 13,366 20,027
SHARES REDEEMED -INSTITUTIONAL CLASS ................................................... (3,551,926) (1,058,196)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (2,174,260) 2,538,264
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 379 $ (57)
------------ ------------
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $623,952,025 $622,340,129
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 12,428,080 26,693,860
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 1,777,835 6,106,413
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (8,650,192) 11,711,691
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 5,555,723 44,511,964
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. (8,565,040) (18,173,531)
CLASS B .............................................................................. (2,265,225) (5,508,532)
CLASS C .............................................................................. (764,079) (1,796,427)
INSTITUTIONAL CLASS .................................................................. (833,737) (2,082,275)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. (3,428,987) (1,108,246)
CLASS B .............................................................................. (1,052,885) (408,641)
CLASS C .............................................................................. (364,548) (131,616)
INSTITUTIONAL CLASS .................................................................. (326,288) (125,047)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... 26,505,178 60,787,408
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ 7,067,488 12,017,086
COST OF SHARES REDEEMED - CLASS A ...................................................... (47,002,853) (71,173,049)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . (13,430,187) 1,631,445
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... 3,731,459 19,935,424
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. 2,207,561 4,296,587
COST OF SHARES REDEEMED - CLASS B ...................................................... (27,633,227) (33,754,524)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . (21,694,207) (9,522,513)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... 4,514,609 14,894,975
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. 693,042 1,322,981
COST OF SHARES REDEEMED - CLASS C ...................................................... (11,042,412) (16,695,402)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . (5,834,761) (477,446)
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 6,522,189 6,612,921
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 286,111 406,898
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (8,749,544) (12,217,058)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... (1,941,244) (5,197,239)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (54,945,465) 1,611,896
------------ ------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ......................................................................... $569,006,560 $623,952,025
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 2,345,445 5,306,051
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... 625,270 1,049,153
SHARES REDEEMED - CLASS A .............................................................. (4,164,480) (6,204,695)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (1,193,765) 150,509
------------ ------------
SHARES SOLD - CLASS B .................................................................. 323,525 1,704,045
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... 191,724 368,043
SHARES REDEEMED - CLASS B .............................................................. (2,402,745) (2,893,835)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (1,887,496) (821,747)
------------ ------------
SHARES SOLD - CLASS C .................................................................. 389,558 1,273,925
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... 60,168 113,318
SHARES REDEEMED - CLASS C .............................................................. (962,156) (1,429,062)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... (512,430) (41,819)
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 571,101 575,226
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 25,249 35,499
SHARES REDEEMED -INSTITUTIONAL CLASS ................................................... (774,581) (1,064,454)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (178,231) (453,729)
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 63 $ 64
------------ ------------
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------------------------------------------------------
COLORADO TAX-FREE
-------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $125,975,052 $121,322,286
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 2,620,811 5,666,996
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 29,448 1,882,219
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (859,072) 2,631,290
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 1,791,187 10,180,505
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. (1,237,302) (2,756,764)
CLASS B .............................................................................. (248,369) (521,752)
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. (1,128,074) (2,372,984)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. 0 0
CLASS B .............................................................................. 0 0
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... 6,312,939 13,133,324
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ 666,724 1,811,900
COST OF SHARES REDEEMED - CLASS A ...................................................... (10,245,130) (15,401,719)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . (3,265,467) (456,495)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... 325,164 3,559,080
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. 137,742 353,487
COST OF SHARES REDEEMED - CLASS B ...................................................... (2,424,203) (2,573,946)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . (1,961,297) 1,338,621
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 3,782,009 13,272,472
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 32,599 132,163
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (8,158,547) (14,163,000)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... (4,343,939) (758,365)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (10,393,261) 4,652,766
------------ ------------
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ......................................................................... $115,581,791 $ 125,975,052
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 582,235 1,204,943
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... 61,817 165,892
SHARES REDEEMED - CLASS A .............................................................. (952,290) (1,410,274)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (308,238) (39,439)
------------ ------------
SHARES SOLD - CLASS B .................................................................. 30,053 325,882
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... 12,751 32,316
SHARES REDEEMED - CLASS B .............................................................. (224,108) (234,746)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (181,304) 123,452
------------ ------------
SHARES SOLD - CLASS C .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... N/A N/A
SHARES REDEEMED - CLASS C .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... N/A N/A
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 347,279 1,218,396
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 3,023 12,107
SHARES REDEEMED -INSTITUTIONAL CLASS ................................................... (756,318) (1,300,266)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (406,016) (69,763)
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 41,542 $ 34,476
------------ ------------
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO TAX-FREE FUNDS
- -------------------------------------------------------------------------------------------------------------------------------
MINNESOTA TAX-FREE
------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $248,945,940 $254,220,949
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 4,913,616 11,175,102
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 814,265 1,499,724
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (2,919,807) 8,176,692
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 2,808,074 20,851,518
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. (811,423) (1,855,853)
CLASS B .............................................................................. (343,532) (764,822)
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. (3,721,799) (8,554,378)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. 0 0
CLASS B .............................................................................. 0 0
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... 4,013,622 11,447,926
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ 477,900 1,277,945
COST OF SHARES REDEEMED - CLASS A ...................................................... (6,641,775) (13,447,018)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . (2,150,253) (721,147)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... 607,299 5,732,183
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. 213,278 577,649
COST OF SHARES REDEEMED - CLASS B ...................................................... (3,334,352) (5,436,064)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . (2,513,775) 873,768
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 6,013,259 27,778,538
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 470,198 1,069,076
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (26,521,915) (43,951,709)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... (20,038,458) (15,104,095)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (26,771,166) (5,275,009)
------------ ------------
NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ......................................................................... $222,174,774 $248,945,940
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 364,315 1,032,283
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... 43,393 115,135
SHARES REDEEMED - CLASS A .............................................................. (601,352) (1,209,048)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (193,644) (61,630)
------------ ------------
SHARES SOLD - CLASS B .................................................................. 54,916 516,214
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... 19,374 52,037
SHARES REDEEMED - CLASS B .............................................................. (302,509) (488,197)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (228,219) 80,054
------------ ------------
SHARES SOLD - CLASS C .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... N/A N/A
SHARES REDEEMED - CLASS C .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... N/A N/A
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 544,156 2,499,870
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 42,731 96,208
SHARES REDEEMED -INSTITUTIONAL CLASS ................................................... (2,413,749) (3,965,190)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (1,826,862) (1,369,112)
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 27,714 $ (9,148)
------------ ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68 & 69
WELLS FARGO TAX-FREE FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
NATIONAL LIMITED
TERM TAX-FREE
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $152,835,376 $ 85,370,759
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 2,218,381 3,875,525
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 162,452 691,434
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (1,101,075) 3,175,312
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 1,279,758 7,742,271
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. N/A N/A
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. (2,207,895) (3,875,527)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. N/A N/A
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ N/A N/A
COST OF SHARES REDEEMED - CLASS A ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS B ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ...................................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 40,329,794 97,744,021
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 317,479 921,800
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (24,697,429) (35,067,948)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... $ 15,949,844 $ 63,597,873
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 15,021,707 67,464,617
------------ ------------
NET ASSETS:
ENDING NET ASSETS ......................................................................... $167,857,083 $152,835,376
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... N/A N/A
SHARES REDEEMED - CLASS A .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... N/A N/A
------------ ------------
SHARES SOLD - CLASS B .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... N/A N/A
SHARES REDEEMED - CLASS B .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... N/A N/A
------------ ------------
SHARES SOLD - CLASS C .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... N/A N/A
SHARES REDEEMED - CLASS C .............................................................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... N/A N/A
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 3,671,620 8,953,137
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 28,984 84,236
SHARES REDEEMED - INSTITUTIONAL CLASS .................................................. (2,254,831) (3,211,621)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... 1,445,773 5,825,752
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (45,882) $ (56,368)
------------ ------------
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO TAX-FREE FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $438,305,347 $477,668,150
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 9,176,801 21,983,774
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 727,845 7,554,465
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (5,027,363) 2,646,498
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 4,877,283 32,184,737
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. (2,484,164) (5,556,071)
CLASS B .............................................................................. (819,551) (2,012,737)
CLASS C .............................................................................. (268,060) (525,813)
INSTITUTIONAL CLASS .................................................................. (5,568,209) (13,565,555)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. 0 0
CLASS B .............................................................................. 0 0
CLASS C .............................................................................. 0 0
INSTITUTIONAL CLASS .................................................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... 19,531,750 46,430,317
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ 1,298,701 3,532,856
COST OF SHARES REDEEMED - CLASS A ...................................................... (23,687,276) (59,535,947)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . (2,856,825) (9,572,774)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... 1,344,899 5,765,108
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. 421,404 1,317,072
COST OF SHARES REDEEMED - CLASS B ...................................................... (8,810,004) (11,462,678)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . (7,043,701) (4,380,498)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... 769,012 5,633,675
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. 128,964 282,912
COST OF SHARES REDEEMED - CLASS C ...................................................... (2,736,404) (2,368,116)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . $ (1,838,428) 3,548,471
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 14,317,653 38,235,960
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 310,285 1,578,214
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (50,675,797) (79,296,737)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... $(36,047,859) $(39,482,563)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (52,049,514) (39,362,803)
------------ ------------
NET ASSETS:
ENDING NET ASSETS ......................................................................... $386,255,833 $438,305,347
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 1,896,113 4,447,750
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... 125,963 337,888
SHARES REDEEMED - CLASS A .............................................................. (2,299,581) (5,699,062)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (277,505) (913,424)
------------ ------------
SHARES SOLD - CLASS B .................................................................. 130,010 550,490
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... 40,888 125,967
SHARES REDEEMED - CLASS B .............................................................. (853,662) (1,096,136)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (682,764) (419,679)
------------ ------------
SHARES SOLD - CLASS C .................................................................. 74,436 538,544
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... 12,515 27,057
SHARES REDEEMED - CLASS C .............................................................. (264,617) (227,643)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... (177,666) 337,958
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 1,387,958 3,662,213
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 30,140 151,382
SHARES REDEEMED - INSTITUTIONAL CLASS .................................................. (4,919,104) (7,599,131)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (3,501,006) (3,785,536)
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 538,234 $ 501,417
------------ ------------
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------------------------------------------------------
NEBRASKA TAX-FREE
-------------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
DECEMBER 31, 2003 JUNE 30, 2003
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $64,760,128 $66,453,213
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 1,187,086 2,672,042
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 140,651 365,130
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... (622,222) 1,974,365
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 705,515 5,011,537
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME
CLASS A .............................................................................. N/A N/A
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. (1,186,229) (2,672,044)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................................................. N/A N/A
CLASS B .............................................................................. N/A N/A
CLASS C .............................................................................. N/A N/A
INSTITUTIONAL CLASS .................................................................. (381,315) (556,867)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................................ N/A N/A
COST OF SHARES REDEEMED - CLASS A ...................................................... N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A . N/A N/A
----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS B .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS B ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS B ...................................................... N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B . N/A N/A
----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS C .................................................... N/A N/A
REINVESTMENT OF DISTRIBUTION - CLASS C ................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ...................................................... N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C . N/A N/A
----------- -----------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ........................................ 574,000 2,987,541
REINVESTMENT OF DISTRIBUTION - INSTITUTIONAL CLASS ..................................... 53,274 133,015
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .......................................... (6,418,638) (6,596,267)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS .................................................................... $(5,791,364) $(3,475,711)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (6,653,393) (1,693,085)
----------- -----------
NET ASSETS:
ENDING NET ASSETS ......................................................................... $58,106,735 $64,760,128
----------- -----------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A ................................... N/A N/A
SHARES REDEEMED - CLASS A .............................................................. N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... N/A N/A
----------- -----------
SHARES SOLD - CLASS B .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B ................................... N/A N/A
SHARES REDEEMED - CLASS B .............................................................. N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... N/A N/A
----------- -----------
SHARES SOLD - CLASS C .................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS C ................................... N/A N/A
SHARES REDEEMED - CLASS C .............................................................. N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... N/A N/A
----------- -----------
SHARES SOLD - INSTITUTIONAL CLASS ...................................................... 56,134 289,394
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - INSTITUTIONAL CLASS ....................... 5,203 12,912
SHARES REDEEMED - INSTITUTIONAL CLASS .................................................. (625,381) (638,248)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (564,044) (335,942)
----------- -----------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 854 $ (3)
----------- -----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70 & 71
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.74 $0.11 ($0.04) ($0.11) ($0.06)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.50 0.25 0.24 (0.25) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.33 0.31 0.20 (0.31) (0.03)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.14 0.41 0.19 (0.41) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.23 0.40 (0.04) (0.40) (0.05)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $10.44 0.39 (0.09) (0.39) (0.12)
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.74 $0.07 ($0.05) ($0.07) ($0.06)
AUGUST 30, 2002(3) TO JUNE 30, 2003 ...................... $10.63 0.13 0.11 (0.13) 0.00
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.57 $0.12 ($0.04) ($0.12) ($0.06)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.34 0.27 0.23 (0.27) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.17 0.32 0.20 (0.32) (0.03)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.98 0.42 0.19 (0.42) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.07 0.41 (0.04) (0.41) (0.05)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $10.27 0.39 (0.08) (0.39) (0.12)
CALIFORNIA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.57 $0.25 ($0.12) ($0.25) ($0.10)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.29 0.51 0.33 (0.53) (0.03)
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.24 0.55 0.10 (0.54) (0.06)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.77 0.54 0.47 (0.54) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $11.00 0.52 (0.20) (0.52) (0.03)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.38 0.51 (0.23) (0.51) (0.15)
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.79 $0.21 ($0.11) ($0.21) ($0.11)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.51 0.42 0.33 (0.44) (0.03)
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.46 0.48 0.09 (0.46) (0.06)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.97 0.46 0.49 (0.46) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $11.22 0.45 (0.22) (0.45) (0.03)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.60 0.44 (0.23) (0.44) (0.15)
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.79 $0.21 ($0.11) ($0.21) ($0.11)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.51 0.43 0.32 (0.44) (0.03)
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.46 0.47 0.10 (0.46) (0.06)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.97 0.46 0.49 (0.46) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $11.22 0.45 (0.22) (0.45) (0.03)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.60 0.44 (0.23) (0.44) (0.15)
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.59 $0.27 ($0.12) ($0.27) ($0.10)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.32 0.53 0.32 (0.55) (0.03)
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.27 0.57 0.10 (0.56) (0.06)
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.79 0.56 0.48 (0.56) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $11.03 0.54 (0.21) (0.54) (0.03)
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.40 0.52 (0.22) (0.52) (0.15)
COLORADO TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.01 $0.24 ($0.05) ($0.24) $0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.61 0.50 0.40 (0.50) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.39 0.53 0.22 (0.53) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.83 0.55 0.56 (0.55) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.30 0.54 (0.46) (0.54) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.55 0.04 (0.25) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.69 0.51 (0.10) (0.51) (0.04)
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSSETS (ANNUALIZED)
NET ASSET -----------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.64 2.00% 1.05% (0.20)% 0.85%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.74 2.35% 0.99% (0.18)% 0.81%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.50 2.97% 1.24% (0.49)% 0.75%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.33 3.90% 1.12% (0.37)% 0.75%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.14 3.98% 1.31% (0.56)% 0.75%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $10.23 3.70% 1.42% (0.67)% 0.75%
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.63 1.26% 1.80% (0.20)% 1.60%
AUGUST 30, 2002(3) TO JUNE 30, 2003 ...................... $10.74 1.39% 1.79% (0.19)% 1.60%
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.47 2.27% 0.73% (0.13)% 0.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.57 2.49% 0.72% (0.12)% 0.60%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.34 3.12% 0.85% (0.25)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.17 4.12% 0.76% (0.16)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.98 4.07% 1.07% (0.44)% 0.63%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $10.07 3.75% 1.30% (0.60)% 0.70%
CALIFORNIA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.35 4.47% 1.03% (0.23)% 0.80%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.57 4.60% 0.95% (0.16)% 0.79%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.29 4.86% 0.90% (0.13)% 0.77%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $11.24 4.82% 0.90% (0.13)% 0.77%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.77 4.89% 1.01% (0.24)% 0.77%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.00 4.45% 1.10% (0.33)% 0.77%
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.57 3.62% 1.78% (0.23)% 1.55%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.79 3.81% 1.71% (0.17)% 1.54%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.51 3.95% 1.66% (0.14)% 1.52%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $11.46 4.06% 1.63% (0.12)% 1.51%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.97 4.16% 1.74% (0.24)% 1.50%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.22 3.74% 1.84% (0.37)% 1.47%
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.57 3.61% 1.77% (0.22)% 1.55%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.79 3.80% 1.68% (0.14)% 1.54%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.51 3.94% 1.64% (0.12)% 1.52%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $11.46 4.04% 1.62% (0.10)% 1.52%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.97 4.15% 1.73% (0.23)% 1.50%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.22 3.71% 1.81% (0.34)% 1.47%
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.37 4.71% 0.70% (0.15)% 0.55%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.59 4.82% 0.65% (0.08)% 0.57%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $11.32 4.88% 0.62% (0.02)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $11.27 4.99% 0.60% 0.00% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.79 5.02% 0.80% (0.17)% 0.63%
JULY 1, 1998 TO JUNE 30, 1999 ............................ $11.03 4.50% 1.01% (0.29)% 0.72%
COLORADO TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.96 4.45% 1.06% (0.21)% 0.85%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.01 4.60% 0.99% (0.22)% 0.77%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.61 5.01% 0.96% (0.36)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.39 5.36% 0.96% (0.36)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.83 5.43% 1.03% (0.43)% 0.60%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.30 4.94% 1.08% (0.48)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.55 4.71% 1.02% (0.42)% 0.60%
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.66% 33% $ 81,419
JULY 1, 2002 TO JUNE 30, 2003 ............................ 4.74% 64% $ 99,568
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.00% 34% $ 70,142
JULY 1, 2000 TO JUNE 30, 2001 ............................ 6.01% 49% $ 46,157
JULY 1, 1999 TO JUNE 30, 2000 ............................ 3.67% 60% $ 34,015
JULY 1, 1998 TO JUNE 30, 1999 ............................ 2.84% 68% $ 41,299
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.19% 33% $ 13,130
AUGUST 30, 2002(3) TO JUNE 30, 2003 ...................... 2.26% 64% $ 11,301
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.80% 33% $ 16,189
JULY 1, 2002 TO JUNE 30, 2003 ............................ 4.93% 64% $ 39,338
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.19% 34% $ 12,224
JULY 1, 2000 TO JUNE 30, 2001 ............................ 6.20% 49% $ 4,937
JULY 1, 1999 TO JUNE 30, 2000 ............................ 3.79% 60% $ 4,474
JULY 1, 1998 TO JUNE 30, 1999 ............................ 2.96% 68% $ 7,633
CALIFORNIA TAX-FREE FUND
- ---------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.24% 21% $377,237
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.77% 34% $398,186
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.67% 31% $386,927
JULY 1, 2000 TO JUNE 30, 2001 ............................ 9.53% 52% $379,359
JULY 1, 1999 TO JUNE 30, 2000 ............................ 3.10% 35% $385,746
JULY 1, 1998 TO JUNE 30, 1999 ............................ 2.38% 17% $461,574
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.85% 21% $115,967
JULY 1, 2002 TO JUNE 30, 2003 ............................ 6.87% 34% $140,419
JULY 1, 2001 TO JUNE 30, 2002 ............................ 4.88% 31% $146,487
JULY 1, 2000 TO JUNE 30, 2001 ............................ 8.81% 52% $137,484
JULY 1, 1999 TO JUNE 30, 2000 ............................ 2.21% 35% $116,376
JULY 1, 1998 TO JUNE 30, 1999 ............................ 1.69% 17% $129,699
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.85% 21% $ 39,869
JULY 1, 2002 TO JUNE 30, 2003 ............................ 6.87% 34% $ 46,666
JULY 1, 2001 TO JUNE 30, 2002 ............................ 4.87% 31% $ 46,013
JULY 1, 2000 TO JUNE 30, 2001 ............................ 8.81% 52% $ 29,468
JULY 1, 1999 TO JUNE 30, 2000 ............................ 2.21% 35% $ 16,959
JULY 1, 1998 TO JUNE 30, 1999 ............................ 1.69% 17% $ 22,251
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.37% 21% $ 35,934
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.90% 34% $ 38,681
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.85% 31% $ 42,913
JULY 1, 2000 TO JUNE 30, 2001 ............................ 9.80% 52% $ 47,211
JULY 1, 1999 TO JUNE 30, 2000 ............................ 3.16% 35% $ 47,263
JULY 1, 1998 TO JUNE 30, 1999 ............................ 2.46% 17% $ 73,625
COLORADO TAX-FREE FUND
- ---------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.79% 9% $ 56,225
JULY 1, 2002 TO JUNE 30, 2003 ............................ 8.62% 37% $ 59,877
JULY 1, 2001 TO JUNE 30, 2002 ............................ 7.34% 28% $ 58,152
JULY 1, 2000 TO JUNE 30, 2001 ............................ 11.54% 37% $ 48,274
JULY 1, 1999 TO JUNE 30, 2000 ............................ 0.87% 106% $ 39,280
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.97)% 11% $ 39,066
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.79% 77% $ 39,958
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72 & 73
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------------
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.02 $0.20 ($0.05) ($0.20) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.63 0.42 0.39 (0.42) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.41 0.45 0.22 (0.45) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.85 0.48 0.56 (0.48) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.31 0.46 (0.45) (0.46) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.56 0.04 (0.25) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.71 0.43 (0.11) (0.43) (0.04)
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.01 $0.25 ($0.05) ($0.25) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.62 0.52 0.39 (0.52) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.40 0.53 0.22 (0.53) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.84 0.55 0.56 (0.55) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.30 0.54 (0.45) (0.54) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.55 0.04 (0.25) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.69 0.51 (0.10) (0.51) (0.04)
MINNESOTA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.27 $0.23 ($0.08) ($0.23) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.84 0.47 0.43 (0.47) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.67 0.52 0.17 (0.52) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.18 0.54 0.49 (0.54) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.74 0.53 (0.55) (0.53) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.96 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $11.05 0.51 (0.08) (0.51) (0.01)
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.27 $0.19 ($0.08) ($0.19) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.84 0.39 0.43 (0.39) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.67 0.44 0.17 (0.44) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.18 0.46 0.49 (0.46) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.74 0.46 (0.55) (0.46) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.96 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $11.05 0.43 (0.08) (0.43) (0.01)
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.27 $0.24 ($0.08) ($0.24) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.84 0.49 0.43 (0.49) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.67 0.52 0.17 (0.52) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.18 0.54 0.49 (0.54) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.74 0.53 (0.55) (0.53) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.96 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $11.05 0.52 (0.09) (0.51) (0.01)
NATIONAL LIMITED TERM TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.09 $0.15 ($0.07) ($0.15) $ 0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.73 0.37 0.36 (0.37) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.52 0.43 0.21 (0.43) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.19 0.46 0.33 (0.46) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.39 0.47 (0.20) (0.47) 0.00
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.54 0.04 (0.15) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.59 0.46 (0.04) (0.47) 0.00
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSSETS (ANNUALIZED)
NET ASSET -----------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.97 3.70% 1.81% (0.21)% 1.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.02 3.83% 1.76% (0.24)% 1.52%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.63 4.25% 1.77% (0.42)% 1.35%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.41 4.58% 1.77% (0.42)% 1.35%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.85 4.65% 1.89% (0.54)% 1.35%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.31 4.17% 2.08% (0.73)% 1.35%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.56 3.96% 2.03% (0.68)% 1.35%
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.96 4.70% 0.73% (0.13)% 0.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.01 4.76% 0.71% (0.11)% 0.60%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.62 5.01% 0.70% (0.10)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.40 5.38% 0.67% (0.07)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.84 5.42% 0.86% (0.26)% 0.60%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.30 4.93% 1.08% (0.48)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.55 4.71% 0.99% (0.39)% 0.60%
MINNESOTA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.19 4.15% 1.04% (0.19)% 0.85%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.27 4.27% 0.98% (0.21)% 0.77%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.84 4.81% 1.03% (0.43)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.67 5.11% 1.10% (0.50)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.18 5.23% 1.07% (0.47)% 0.60%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.74 4.71% 1.11% (0.51)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.96 4.61% 1.03% (0.43)% 0.60%
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.19 3.40% 1.79% (0.19)% 1.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.27 3.51% 1.71% (0.19)% 1.52%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.84 4.05% 1.75% (0.40)% 1.35%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.67 4.36% 1.81% (0.46)% 1.35%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.18 4.47% 1.93% (0.58)% 1.35%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.74 3.93% 2.11% (0.76)% 1.35%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.96 3.85% 2.04% (0.69)% 1.35%
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.19 4.40% 0.71% (0.11)% 0.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.27 4.43% 0.65% (0.05)% 0.60%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.84 4.78% 0.65% (0.05)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.67 5.11% 0.73% (0.13)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.18 5.22% 0.91% (0.31)% 0.60%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.74 4.69% 1.11% (0.51)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.96 4.62% 1.00% (0.40)% 0.60%
NATIONAL LIMITED TERM TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $11.02 2.78% 0.72% (0.12)% 0.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $11.09 3.29% 0.71% (0.11)% 0.60%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.73 3.98% 0.76% (0.16)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.52 4.39% 0.71% (0.11)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.19 4.53% 0.86% (0.25)% 0.61%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.39 4.25% 1.12% (0.47)% 0.65%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.54 4.26% 1.04% (0.39)% 0.65%
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.40% 9% $ 12,313
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.70% 37% $ 14,368
JULY 1, 2001 TO JUNE 30, 2002 ............................ 6.53% 28% $ 12,540
JULY 1, 2000 TO JUNE 30, 2001 ............................ 10.69% 37% $ 10,177
JULY 1, 1999 TO JUNE 30, 2000 ............................ 0.22% 106% $ 6,842
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (2.03)% 11% $ 10,959
JUNE 1, 1998 TO MAY 31, 1999 ............................. 2.92% 77% $ 10,909
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.91% 9% $ 47,044
JULY 1, 2002 TO JUNE 30, 2003 ............................ 8.70% 37% $ 51,730
JULY 1, 2001 TO JUNE 30, 2002 ............................ 7.33% 28% $ 50,630
JULY 1, 2000 TO JUNE 30, 2001 ............................ 11.54% 37% $ 47,538
JULY 1, 1999 TO JUNE 30, 2000 ............................ 0.97% 106% $ 44,161
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.97)% 11% $ 49,101
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.79% 77% $ 48,926
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.36% 2% $ 39,049
JULY 1, 2002 TO JUNE 30, 2003 ............................ 8.49% 23% $ 41,485
JULY 1, 2001 TO JUNE 30, 2002 ............................ 6.58% 28% $ 40,585
JULY 1, 2000 TO JUNE 30, 2001 ............................ 10.32% 18% $ 34,424
JULY 1, 1999 TO JUNE 30, 2000 ............................ (0.02)% 69% $ 29,551
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.63)% 2% $ 37,139
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.96% 25% $ 38,255
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.98% 2% $ 19,315
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.68% 23% $ 22,012
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.79% 28% $ 20,310
JULY 1, 2000 TO JUNE 30, 2001 ............................ 9.50% 18% $ 19,491
JULY 1, 1999 TO JUNE 30, 2000 ............................ (0.76)% 69% $ 16,974
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.69)% 2% $ 21,366
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.18% 25% $ 21,493
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.49% 2% $163,811
JULY 1, 2002 TO JUNE 30, 2003 ............................ 8.67% 23% $185,450
JULY 1, 2001 TO JUNE 30, 2002 ............................ 6.58% 28% $193,327
JULY 1, 2000 TO JUNE 30, 2001 ............................ 10.32% 18% $ 24,860
JULY 1, 1999 TO JUNE 30, 2000 ............................ (0.02)% 69% $ 22,451
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.63)% 2% $ 27,197
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.96% 25% $ 27,261
NATIONAL LIMITED TERM TAX-FREE FUND
- --------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 0.76% 10% $167,857
JULY 1, 2002 TO JUNE 30, 2003 ............................ 6.86% 40% $152,835
JULY 1, 2001 TO JUNE 30, 2002 ............................ 6.16% 45% $ 85,371
JULY 1, 2000 TO JUNE 30, 2001 ............................ 7.89% 57% $ 62,111
JULY 1, 1999 TO JUNE 30, 2000 ............................ 2.64% 48% $ 62,669
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.08)% 24% $ 84,419
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.97% 41% $ 88,223
74 & 75
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED
SHARE (LOSS) INVESTMENTS INCOME GAINS
- -----------------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.53 $0.23 ($0.09) ($0.23) $0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.29 0.50 0.23 (0.49) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.21 0.52 0.08 (0.52) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.72 0.54 0.49 (0.54) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.22 0.54 (0.50) (0.53) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.44 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.54 0.52 (0.10) (0.51) (0.01)
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.53 $0.19 ($0.08) ($0.19) $0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.29 0.42 0.23 (0.41) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.21 0.45 0.08 (0.45) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.72 0.46 0.49 (0.46) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.22 0.46 (0.50) (0.45) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.44 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.54 0.44 (0.10) (0.43) (0.01)
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.53 $0.19 ($0.09) ($0.19) $0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.29 0.42 0.23 (0.41) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.21 0.45 0.08 (0.45) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.73 0.46 0.48 (0.46) 0.00
NOVEMBER 8, 1999(3) TO JUNE 30, 2000 ..................... $ 9.79 0.30 (0.06) (0.30) 0.00
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.53 $0.24 ($0.08) ($0.24) $0.00
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.30 0.52 0.22 (0.51) 0.00
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.22 0.55 0.08 (0.55) 0.00
JULY 1, 2000 TO JUNE 30, 2001 ............................ $ 9.73 0.56 0.49 (0.56) 0.00
JULY 1, 1999 TO JUNE 30, 2000 ............................ $10.22 0.55 (0.49) (0.54) (0.01)
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.44 0.04 (0.22) (0.04) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.54 0.52 (0.10) (0.51) (0.01)
NEBRASKA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.44 $0.19 ($0.07) ($0.19) ($0.07)
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.16 0.42 0.37 (0.42) (0.09)
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.06 0.43 0.13 (0.43) (0.03)
SEPTEMBER 1, 2000 TO JUNE 30, 2001(5) .................... $ 9.85 0.36 0.21 (0.36) 0.00
SEPTEMBER 1, 1999 TO AUGUST 31, 2000 ..................... $ 9.76 0.42 0.09 (0.42) 0.00
SEPTEMBER 1, 1998 TO AUGUST 31, 1999 ..................... $10.13 0.42 (0.36) (0.42) (0.01)
SEPTEMBER 29, 1997(3) TO AUGUST 31, 1998 ................. $10.00 0.39 0.13 (0.39) 0.00
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
ENDING RATIO TO AVERAGE NET ASSSETS (ANNUALIZED)
NET ASSET -----------------------------------------------------
VALUE PER NET INVESTMENT GROSS EXPENSES NET
SHARE INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.44 4.48% 1.03% (0.18)% 0.85%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.53 4.74% 0.95% (0.12)% 0.83%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.29 5.09% 0.93% (0.13)% 0.80%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.21 5.33% 0.96% (0.16)% 0.80%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.72 5.48% 0.95% (0.20)% 0.75%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.22 5.10% 1.02% (0.42)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.44 4.81% 0.98% (0.38)% 0.60%
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.45 3.72% 1.79% (0.19)% 1.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.53 3.98% 1.70% (0.12)% 1.58%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.29 4.34% 1.69% (0.14)% 1.55%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.21 4.56% 1.72% (0.17)% 1.55%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.72 4.72% 1.78% (0.30)% 1.48%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.22 4.34% 2.11% (0.76)% 1.35%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.44 4.05% 2.01% (0.66)% 1.35%
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.44 3.73% 1.79% (0.19)% 1.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.53 3.95% 1.71% (0.13)% 1.58%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.29 4.32% 1.68% (0.13)% 1.55%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.21 4.55% 1.73% (0.18)% 1.55%
NOVEMBER 8, 1999(3) TO JUNE 30, 2000 ..................... $ 9.73 4.75% 1.68% (0.13)% 1.55%
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.45 4.72% 0.70% (0.10)% 0.60%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.53 4.97% 0.67% (0.07)% 0.60%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.30 5.30% 0.63% (0.03)% 0.60%
JULY 1, 2000 TO JUNE 30, 2001 ............................ $10.22 5.53% 0.61% (0.01)% 0.60%
JULY 1, 1999 TO JUNE 30, 2000 ............................ $ 9.73 5.58% 0.77% (0.17)% 0.60%
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... $10.22 5.09% 0.95% (0.35)% 0.60%
JUNE 1, 1998 TO MAY 31, 1999 ............................. $10.44 4.83% 0.91% (0.31)% 0.60%
NEBRASKA TAX-FREE FUND
- -----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ $10.30 3.83% 0.87% (0.04)% 0.83%
JULY 1, 2002 TO JUNE 30, 2003 ............................ $10.44 4.06% 0.87% (0.05)% 0.82%
JULY 1, 2001 TO JUNE 30, 2002 ............................ $10.16 4.27% 0.89% (0.06)% 0.83%
SEPTEMBER 1, 2000 TO JUNE 30, 2001(5) .................... $10.06 4.40% 0.91% (0.09)% 0.82%
SEPTEMBER 1, 1999 TO AUGUST 31, 2000 ..................... $ 9.85 4.38% 0.88% 0.00% 0.88%
SEPTEMBER 1, 1998 TO AUGUST 31, 1999 ..................... $ 9.76 4.17% 0.84% (0.01)% 0.83%
SEPTEMBER 29, 1997(3) TO AUGUST 31, 1998 ................. $10.13 4.22% 0.87% 0.00% 0.87%
WELLS FARGO TAX-FREE FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
NATIONAL TAX-FREE FUND
A SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.38% 30% $109,786
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.20% 37% $113,616
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.92% 39% $120,439
JULY 1, 2000 TO JUNE 30, 2001 ............................ 10.90% 27% $ 77,273
JULY 1, 1999 TO JUNE 30, 2000 ............................ 0.50% 79% $ 64,859
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.69)% 18% $ 41,881
JUNE 1, 1998 TO MAY 31, 1999 ............................. 4.04% 106% $ 43,388
B SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.10% 30% $ 41,010
JULY 1, 2002 TO JUNE 30, 2003 ............................ 6.40% 37% $ 48,540
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.13% 39% $ 51,754
JULY 1, 2000 TO JUNE 30, 2001 ............................ 10.07% 27% $ 28,271
JULY 1, 1999 TO JUNE 30, 2000 ............................ (0.24)% 79% $ 18,367
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.76)% 18% $ 17,878
JUNE 1, 1998 TO MAY 31, 1999 ............................. 3.26% 106% $ 17,973
C SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.01% 30% $ 13,181
JULY 1, 2002 TO JUNE 30, 2003 ............................ 6.40% 37% $ 15,161
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.13% 39% $ 11,343
JULY 1, 2000 TO JUNE 30, 2001 ............................ 9.96% 27% $ 9,319
NOVEMBER 8, 1999(3) TO JUNE 30, 2000 ..................... 2.50% 79% $ 5,572
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.61% 30% $222,279
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.34% 37% $260,989
JULY 1, 2001 TO JUNE 30, 2002 ............................ 6.24% 39% $294,132
JULY 1, 2000 TO JUNE 30, 2001 ............................ 11.01% 27% $300,187
JULY 1, 1999 TO JUNE 30, 2000 ............................ 0.73% 79% $244,626
JUNE 1, 1999 TO JUNE 30, 1999(4) ......................... (1.69)% 18% $304,170
JUNE 1, 1998 TO MAY 31, 1999 ............................. 4.04% 106% $311,757
NEBRASKA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
JULY 1, 2003 TO DECEMBER 31, 2003 (UNAUDITED) ............ 1.20% 4% $ 58,107
JULY 1, 2002 TO JUNE 30, 2003 ............................ 7.91% 19% $ 64,760
JULY 1, 2001 TO JUNE 30, 2002 ............................ 5.67% 31% $ 66,453
SEPTEMBER 1, 2000 TO JUNE 30, 2001(5) .................... 5.97% 45% $ 64,929
SEPTEMBER 1, 1999 TO AUGUST 31, 2000 ..................... 5.43% 30% $ 63,305
SEPTEMBER 1, 1998 TO AUGUST 31, 1999 ..................... 0.54% 7% $ 68,443
SEPTEMBER 29, 1997(3) TO AUGUST 31, 1998 ................. 5.29% 8% $ 67,372
76 & 77
WELLS FARGO TAX-FREE FUNDS NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed as
indicated. The ratio of Gross Expenses to Average Net Assets reflects the
expense ratio in the absence of any waivers and reimbursements (Note 3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
period shown. Returns for periods less than 1 year are not annualized.
(3) Commencement of operations.
(4) The Fund changed its fiscal year-end from May 31 to June 30.
(5) The Fund changed its fiscal year-end from August 31 to June 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
78
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 69 separate series. These financial
statements present the California Limited Term Tax-Free Fund, California
Tax-Free Fund, Colorado Tax-Free Fund, Minnesota Tax-Free Fund, National
Limited Term Tax-Free Fund, National Tax-Free Fund, and Nebraska Tax-Free
Fund (each, a "Fund", collectively, the "Funds"). Each Fund, except the
National Limited Term Tax-Free Fund and National Tax-Free Fund, is a
non-diversified series of the Trust. The National Limited Term Tax-Free Fund
and National Tax-Free Fund are diversified series of the Trust.
The separate classes of shares offered by each Fund differ principally in
applicable sales charges, distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses
of a 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 and losses are allocated to
each class pro rata based upon the net assets of each class on the date
realized. No class has preferential dividend rights. Differences in per share
dividend rates generally result from the relative weightings of pro rata
income and realized gain allocations and from differences in separate class
expenses, including distribution, shareholding servicing and administration
fees.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed by the Trust in the preparation of its financial statements, are in
conformity with accounting principles generally accepted in the United States
of America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign
securities exchange are valued at the last reported sales price. Securities
listed on the Nasdaq Stock Market, Inc. are valued at the Nasdaq Official
Closing Price ("NOCP"), and if no NOCP is available, then at the last
reported sales price. In the absence of any sale of such securities, and in
the case of other securities, including U.S. Government obligations, but
excluding debt securities maturing in 60 days or less, the valuations are
based on the latest quoted bid prices.
Certain fixed income securities with maturities exceeding 60 days are
valued by using a pricing service approved by the Trust's Board of Trustees.
The service uses market prices as quoted by an independent pricing service or
by dealers in these securities when, in the service's judgment, these prices
are readily available and are representative of the securities' market
values. For some securities, such prices are not readily available. These
securities will generally be fair valued based on methods which may include
consideration of yields or prices of securities of comparable quality, coupon
rate, maturity and type of issue; indications as to values from dealers in
securities, trading characteristics and general market conditions.
Debt securities maturing in 60 days or less generally 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.
Investments which are not valued using any of the methods discussed above,
are valued at their fair value as determined by procedures approved by the
Board of Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains
or losses are reported on the basis of identified cost of securities
delivered. Interest income is accrued daily and bond discounts are accreted
and premiums are amortized.
Debt obligations may be placed on non-accrual status and related investment
income may be reduced by ceasing current accruals and writing off interest
receivables when the collection of all or a portion of income has become
doubtful based on consistently applied procedures. A debt obligation is
removed from non-accrual status when the issuer resumes interest payments or
when collectibility of interest is reasonably assured.
79
WELLS FARGO TAX-FREE FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared daily and distributed to
shareholders monthly. Distributions to shareholders from net realized capital
gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net
investment income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. 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.
FEDERAL INCOME TAXES
The Fund(s) is treated as a separate entity for federal income tax
purposes. It is the policy of each Fund of the Trust to continue to qualify
as a regulated investment company by complying with the provisions applicable
to regulated investment companies, as defined under subchapter M of the
Internal Revenue Code (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
December 31, 2003.
At June 30, 2003, the following Fund(s) had estimated net capital loss
carryforwards which are available to offset future net realized capital
gains:
Year Capital Loss
Fund Expires Carryforwards
-----------------------------------------------------------------------------
COLORADO TAX-FREE FUND 2008 $ 224,971
2009 410,897
MINNESOTA TAX-FREE FUND 2009 823,511
NATIONAL LIMITED TERM TAX-FREE FUND 2009 687,969
NATIONAL TAX-FREE FUND 2008 10,280,222
2009 157,637
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract on behalf of the Fund(s)
with Wells Fargo Funds Management, LLC ("Funds Management"). The adviser is
responsible for implementing the investment policies and guidelines for the
Fund, and for supervising the sub-adviser who is responsible for the
day-to-day portfolio management of the Fund.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment sub-advisers to provide daily portfolio
management for the Fund(s). The fees related to sub-advisory services are
borne directly by the adviser and do not increase the overall fees paid by
the Fund to the adviser. Funds Management and the investment sub-adviser are
entitled to be paid a monthly fee at the following annual rates:
80
NOTES TO FINANCIAL STATEMENTS WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
Advisory Fee Sub-Advisory Fee
(% of Average Daily Average Daily Net (% of Average Daily
Fund Net Assets) Sub-Adviser Assets Net Assets)
- ---------------------------------------------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM
TAX-FREE FUND 0.40 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
CALIFORNIA TAX-FREE FUND 0.40 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
COLORADO TAX-FREE FUND 0.40 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
MINNESOTA TAX-FREE FUND 0.40 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
NATIONAL LIMITED TERM 0.40 Wells Capital Management $0 - 400 million 0.15%
TAX-FREE FUND $400 - 800 million 0.125%
>$800 million 0.10%
NATIONAL TAX-FREE FUND 0.40 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
NEBRASKA TAX-FREE FUND 0.50 Wells Capital Management $0 - 400 million 0.15%
$400 - 800 million 0.125%
>$800 million 0.10%
ADMINISTRATION AND TRANSFER AGENT FEES
Effective March 1, 2003, the Trust has entered into a new Administration
Agreement with Funds Management on behalf of a Fund(s). Under this Agreement,
for providing administrative services, which includes paying the Fund's fees
and expenses for services provided by the Fund's transfer agent and various
sub-transfer agents and omnibus account servicers and record-keepers out of
the fees it receives as administrator, Funds Management is entitled to
receive the following annual fees:
Share Class % of Average Daily Net Assets
- --------------------------------------------------------------------------------
Class A, Class B, Class C 0.33%
Institutional Class 0.25%
Prior to March 1, 2003, the Trust had entered into an Administration
Agreement on behalf of the Fund(s) with Funds Management whereby Funds
Management was entitled to receive monthly fees at the annual rate of 0.15%
of each Fund's average daily net assets.
The Trust had also entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. Prior to March 1,
2003, BFDS was entitled to receive from the Fund(s) a per-account fee plus
transaction fees, certain out-of-pocket costs and a complex based fee.
Effective March 1, 2003, BFDS is entitled to receive fees from the
administrator for its services as transfer agent. For financial statement
presentation purposes, transfer agent fees for the period prior to March 1,
2003 have been combined with administration fees on the Statements of
Operations.
CUSTODY FEES
The Trust has entered into a contract on behalf of the Fund(s) with Wells
Fargo Bank Minnesota, N.A. ("WFB MN"), whereby WFB MN is responsible for
providing custody services for the Fund. Pursuant to the contract, WFB MN is
entitled to certain transaction charges plus a monthly fee for custody
services at the annual rate of 0.02% of the average daily net assets of each
Fund.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Fund(s) with numerous
shareholder servicing agents, whereby the Fund(s) is charged the following
annual fees:
Share Class % of Average Daily Net Assets
- --------------------------------------------------------------------------------
Class A, Class B, Class C 0.25%
Institutional Class 0.00%
81
WELLS FARGO TAX-FREE FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
-----------------------------------------------------------------------------
For the six months ended December 31, 2003, shareholder servicing fees paid
were as follows:
Fund Class A Class B Class C
- --------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND $113,861 $ N/A $15,887
CALIFORNIA TAX-FREE FUND 479,923 156,908 52,971
COLORADO TAX-FREE FUND 69,823 16,893 N/A
MINNESOTA TAX-FREE FUND 49,374 25,561 N/A
NATIONAL LIMITED TERM TAX-FREE FUND N/A N/A N/A
NATIONAL TAX-FREE FUND 139,710 55,468 18,106
NEBRASKA TAX-FREE FUND N/A N/A N/A
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and
Class C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940
Act. Distribution fees are charged to the Class B and Class C shares and paid
to Stephens Inc. ("Stephens") at an annual rate of 0.75% of average daily net
assets.
For the six months ended December 31, 2003, distribution fees paid are
disclosed in the Statement(s) of Operations.
OTHER FEES
Effective the first quarter of 2003, PFPC, Inc. ("PFPC") serves as fund
accountant for the Fund(s). PFPC is entitled to receive an annual asset based
fee, an annual fixed fee of $20,000 from each Fund and is entitled to be
reimbursed for all out-of-pocket expenses reasonably incurred in providing
these services.
Prior to PFPC, Forum Accounting Services, LLC served as fund accountant and
was entitled to receive a fixed monthly fee, a basis point fee of 0.0025% of
the average daily net assets of each Fund, plus out-of-pocket expenses.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement(s)
of Operations, for the six months ended December 31, 2003, were waived by
Funds Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected.
4. 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 December 31, 2003, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
CALIFORNIA LIMITED TERM TAX-FREE FUND $ 41,247,058 $ 69,239,852
CALIFORNIA TAX-FREE FUND 119,099,087 167,729,041
COLORADO TAX-FREE FUND 9,768,860 22,588,190
MINNESOTA TAX-FREE FUND 3,677,546 32,120,241
NATIONAL LIMITED TERM TAX-FREE FUND 31,773,410 14,805,145
NATIONAL TAX-FREE FUND 118,314,283 147,412,220
NEBRASKA TAX-FREE FUND 2,399,143 9,093,861
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
All of the Funds in the Wells Fargo Funds Trust and the Wells Fargo
Variable Trust (excluding the money market funds) share in a revolving Credit
Agreement with The Bank of New York, whereby the Funds are permitted to use
bank borrowings for temporary or emergency purposes, such as to fund
shareholder redemption requests. The agreement permits borrowings of up to
$150 million, collectively. Interest is charged to each Fund based on its
borrowing at a rate equal to the Federal Funds Rate plus 0.40%. In addition,
the Funds pay a quarterly commitment fee equal to 0.1% per annum of the
credit line. No borrowings under the agreement occurred during the six months
ended December 31, 2003.
82
OTHER INFORMATION (UNAUDITED) WELLS FARGO TAX-FREE FUNDS
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Fund(s) uses to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-800-222-8222 or visiting our
website at www.wellsfargofunds.com, or by accessing the SEC's website at
http://www.sec.gov.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
("Trustees") of the Wells Fargo Funds Trust (the "Trust") and supplements,
and should be read in conjunction with, the Prospectus and the Statement of
Additional Information* of each Fund. Each of the Trustees listed below acts
in identical capacities for each of the 94 funds comprising the Trust, Wells
Fargo Variable Trust and Wells Fargo Master Trust (collectively the "Fund
Complex"). All of the non-interested Trustees are also members of the Audit
and Nominating Committees of each Trust in the Fund Complex. The address of
each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA
94105. Each Trustee and Officer serves an indefinite term, however, each
Trustee serves such term until reaching the mandatory retirement age
established by the Trustees.
INTERESTED TRUSTEES**
- --------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE *** PAST FIVE YEARS OTHER DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------
Robert C. Brown Trustee Retired. Director, Federal Farm None
72 since 1992 Credit Banks Funding Corporation
and Farm Credit System Financial
Assistance Corporation until
February 1999.
- --------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee Private Investor/Real Estate None
59 since 1987 Developer; Chairman of White Point
Capital, LLC.
- --------------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES
- --------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE *** PAST FIVE YEARS OTHER DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------
Thomas S. Goho Trustee Wake Forest University, Calloway None
61 since 1987 School of Business and
Accountancy, Benson-Pruitt
Professorship since 1999,
Associate Professor of Finance
1994 - 1999.
- --------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee Chairman, CEO, and Co-Founder of None
61 since 1998 Crystal Geyser Water Company and
(Lead Trustee since President of Crystal Geyser Roxane
2001) Water Company.
- --------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee Retired. Prior thereto, President None
70 since 1987 of Richard M. Leach Associates (a
financial consulting firm).
- --------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee Senior Counselor to the public None
52 since 1996 relations firm of Himle-Horner and
Senior Fellow at the Humphrey
Institute, Minneapolis, Minnesota
(a public policy organization).
- --------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee Principal in the law firm of None
63 since 1996 Willeke & Daniels.
83
WELLS FARGO TAX-FREE FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
OFFICERS
- --------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------
Karla M. Rabusch President, since Executive Vice President of Wells None
44 2003 Fargo Bank, N.A. President of
Wells Fargo Funds Management, LLC.
Senior Vice President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC from
March 2001 to March 2003. Vice
President of Wells Fargo Bank,
N.A. from December 1997 to May 2000.
- --------------------------------------------------------------------------------------------------------
Stacie D. DeAngelo Treasurer, since 2003 Vice President of Wells Fargo None
35 Bank, N.A. Vice President of
Operations for Wells Fargo Funds
Management, LLC. Prior thereto,
Operations Manager at Scudder
Weisel Capital, LLC (2000 to
2001), Director of Shareholder
Services at BISYS Fund Services
(1999 to 2000) and Assistant Vice
President of Operations with
Nicholas-Applegate Capital
Management (1993 to 1999).
- --------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000 Vice President and Counsel of None
43 Wells Fargo Bank, N.A. since
January 1996. Vice President and
Secretary of Wells Fargo Funds
Management, LLC since March 2001.
- --------------------------------------------------------------------------------------------------------
<FN>
* The Statement of Additional Information includes additional information about the Funds' Trustees
and is available, without charge, upon request, by calling 1-800-222-8222.
** Currently, two of the seven Trustees are considered "interested persons" of the Trusts as defined in
the Investment Company Act of 1940. One of the interested Trustees, Robert C. Brown, owns securities
of Wells Fargo & Company, and one of the interested Trustees, J. Tucker Morse, is affiliated with a
government securities dealer that is registered under the Securities Exchange Act of 1934, which is
not itself affiliated with Wells Fargo Funds Management, LLC.
*** Length of service dates reflects a Trustee's commencement of service with the Trust's predecessor
entities.
</FN>
84
WELLS FARGO TAX-FREE FUNDS LIST OF ABBREVIATIONS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
Connie Lee -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
85
THIS PAGE IS INTENTIONALLY LEFT BLANK --
THIS PAGE IS INTENTIONALLY LEFT BLANK --
MORE INFORMATION ABOUT WELLS FARGO FUNDS IS AVAILABLE FREE UPON REQUEST. TO
OBTAIN LITERATURE, PLEASE WRITE OR CALL:
WELLS FARGO FUNDS
PO BOX 8266
BOSTON, MA 02266-8266
WELLS FARGO FUNDS INVESTOR SERVICES: 1-800-222-8222.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF THE WELLS FARGO 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. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
WELLS FARGO FUNDS MANAGEMENT, LLC, A WHOLLY-OWNED SUBSIDIARY OF WELLS FARGO &
COMPANY, PROVIDES INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES FOR THE WELLS
FARGO FUNDS. OTHER AFFILIATES OF WELLS FARGO & COMPANY PROVIDE SUB-ADVISORY AND
OTHER SERVICES FOR THE FUNDS.THE FUNDS ARE DISTRIBUTED BY STEPHENS INC., MEMBER
NYSE/SIPC. WELLS FARGO & COMPANY AND ITS AFFILIATES ARE NOT AFFILIATED WITH
STEPHENS INC.
------------------------------------------------------
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
------------------------------------------------------
SAR 015 (02/04)
ITEM 2. CODE OF ETHICS
=======================
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
=========================================
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
======================
Not applicable.
ITEMS 5-6. [RESERVED]
======================
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES
===============================================================
Not applicable.
ITEM 8. [RESERVED]
===================
ITEM 9. CONTROLS AND PROCEDURES
================================
(a)(i) The President and Treasurer have concluded that the Wells Fargo Funds
Trust (the "Trust") disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances
that material information relating to the Trust is made known to them by the
appropriate persons based on their evaluation of these controls and procedures
as of a date within 90 days of the filing of this report.
(a)(ii) There were no significant changes in the Trust's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of the evaluation referenced in (a)(i) above.
ITEM 10. EXHIBITS
=================
(a) Not applicable.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant.
Wells Fargo Funds Trust
By:
/s/ Karla M. Rabusch
--------------------
Karla M. Rabusch
President
By:
/s/ Stacie D. DeAngelo
----------------------
Stacie D. DeAngelo
Treasurer
Date: February 18, 2004
CERTIFICATION
I, Karla M. Rabusch, certify that:
1. I have reviewed this report on Form N-CSR of the Wells Fargo California
Limited Term Tax-Free Fund, Wells Fargo California Tax-Free Fund, Wells Fargo
Colorado Tax-Free Fund, Wells Fargo Minnesota Tax-Free Fund, Wells Fargo
National Limited Term Tax-Free Fund, Wells Fargo National Tax-Free Fund, and
Wells Fargo Nebraska Tax-Free Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
a) designed such disclosure controls and procedures or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
b) designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing of this report based on such
evaluation; and
d) disclosed in this report any change in the registrant's internal
controls over financial reporting that occurred during the
registrant's most recent fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has materially
affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls over financial reporting which are reasonably likely to
adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls over financial reporting.
Date: February 18, 2004
/s/ Karla M. Rabusch
- -----------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust
Exhibit 99.CERT
CERTIFICATION
I, Stacie D. DeAngelo, certify that:
1. I have reviewed this report on Form N-CSR of the Wells Fargo California
Limited Term Tax-Free Fund, Wells Fargo California Tax-Free Fund, Wells Fargo
Colorado Tax-Free Fund, Wells Fargo Minnesota Tax-Free Fund, Wells Fargo
National Limited Term Tax-Free Fund, Wells Fargo National Tax-Free Fund, and
Wells Fargo Nebraska Tax-Free Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
a) designed such disclosure controls and procedures or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
b) designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing of this report based on such
evaluation; and
d) disclosed in this report any change in the registrant's internal
controls over financial reporting that occurred during the
registrant's most recent fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has materially
affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons
performing the equivalent functions):
a) all significant deficiencies in the design or operation of internal
controls over financial reporting which are reasonably likely to
adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls over financial reporting.
Date: February 18, 2004
/s/ Stacie D. DeAngelo
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Stacie D. DeAngelo
Treasurer
Wells Fargo Funds Trust
Exhibit 99.CERT
SECTION 906 CERTIFICATION
Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Wells Fargo
Funds Trust (the "Trust"), hereby certifies, to the best of her knowledge, that
the Trust's report on Form N-CSR for the period ended December 31, 2003 (the
"Report") fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Trust.
Date: February 18, 2004
/s/ Karla M. Rabusch
--------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust
SECTION 906 CERTIFICATION
Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Wells Fargo
Funds Trust (the "Trust"), hereby certifies, to the best of her knowledge, that
the Trust's report on Form N-CSR for the period ended December 31, 2003 (the
"Report") fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Trust.
Date: February 18, 2004
/s/ Stacie D. DeAngelo
----------------------
Stacie D. DeAngelo
Treasurer
Wells Fargo Funds Trust